United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 1988 95
1 UNITED STATES
STATUTES AT LARGE

CONTAINING THE

LAWS AND CONCURRENT RESOLUTIONS

ENACTED DURING THE FIRST SESSION OF THE

NINETY-SEVENTH CONGRESS

OF THE UNITED STATES OF AMERICA

1981

AND

PROCLAMATIONS

Volume 95

IN ONE PART

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON : 1982

PUBLISHED BY AUTHORITY OF LAW UNDER THE DIRECTION OF THE ADMINISTRATOR OF GENERAL SERVICES BY THE OFFICE OF THE FEDERAL REGISTER, NATIONAL ARCHIVES AND RECORDS SERVICE

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

For sale by the

Superintendent of Documents

U.S. Government Printing Office, Washington, DC 20402

 CONTENTS Page List of Bills Enacted Into Public Lawv List of Public Lawsvii List of Bills Enacted Into Private Lawxix List of Private Lawsxxi List of Concurrent Resolutionsxxiii List of Proclamationsxxv Public Laws3 Private Laws1733 Concurrent Resolutions1741 Proclamations1787 Subject IndexA1 Individual IndexB1 iii LIST OF BILLS ENACTED INTO PUBLIC LAW THE NINETY-SEVENTH CONGRESS OF THE UNITED STATES FIRST SESSION, 1981 Bill No. Public Law No. H.R. 31 97–25 H.R. 618 97–55 H.R. 779 97–140 H.R. 1100 97–37 H.R. 1465 97–108 H.R. 1553 97–2 H.R. 2120 97–45 H.R. 2156 97–15 H.R. 2166 97–5 H.R. 2218 97–56 H.R. 2241 97–137 H.R. 2494 97–126 H.R. 2903 97–47 H.R. 3136 97–65 H.R. 3210 97–134 H.R. 3413 97–90 H.R. 3454 97–89 H.R. 3455 97–99 H.R. 3484 97–104 H.R. 3499 97–72 H.R. 3512 97–12 H.R. 3520 97–23 H.R. 3567 97–145 H.R. 3799 97–124 H.R. 3807 97–22 H.R. 3975 97–78 H.R. 3982 97–35 H.R. 3991 97–18 H.R. 4034 97–101 H.R. 4035 97–100 H.R. 4048 97–64 H.R. 4074 97–31 H.R. 4084 97–58 H.R. 4119 97–103 H.R. 4144 97–88 H.R. 4209 97–102 H.R. 4241 97–106 H.R. 4242 97–34 H.R. 4327 97–116 H.R. 4331 97–123 H.R. 4416 97–46 H.R. 4431 97–122 H.R. 4503 97–117 H.R. 4506 97–118 H.R. 4522 97–91 H.R. 4559 97–121 H.R. 4591 97–94 H.R. 4608 97–76 H.R. 4612 97–67 H.R. 4734 97–82 H.R. 4792 97–81 H.R. 4845 97–97 H.R. 4879 97–110 H.R. 4894 97–112 H.R. 4910 97–105 H.R. 4926 97–142 H.R. 4995 97–114 H.R. 5159 97–119 H.R. 5273 97–107 H.J. Res. 84 97–27 H.J. Res. 141 97–36 H.J. Res. 155 97–10 H.J. Res. 182 97–9 H.J. Res. 191 97–29 H.J. Res. 238 97–21 H.J. Res. 263 97–57 H.J. Res. 265 97–49 H.J. Res. 266 97–48 H.J. Res. 268 97–71 H.J. Res. 288 97–17 H.J. Res. 308 97–26 H.J. Res. 325 97–51 H.J. Res. 368 97–85 H.J. Res. 370 97–92 H.J. Res. 377 97–133 S. 195 97–83 S. 253 97–3 S. 271 97–130 S. 272 97–4 S. 304 97–63 S. 509 97–6 S. 547 97–38 S. 640 97–40 S. 657 97–120 S. 694 97–39 S. 730 97–11 S. 736 97–79 S. 815 97–86 S. 831 97–136 S. 840 97–7 S. 875 97–41 S. 884 97–98 S. 917 97–66 S. 999 97–80 S. 1000 97–74 S. 1003 97–109 S. 1033 97–59 S. 1040 97–30 S. 1070 97–14 S. 1086 97–115 S. 1098 97–96 S. 1104 97–33 S. 1123 97–19 S. 1124 97–20 S. 1133 97–87 S. 1181 97–60 S. 1191 97–68 S. 1192 97–125 S. 1196 97–113 S. 1209 97–73 S. 1211 97–129 S. 1213 97–16 S. 1224 97–69 S. 1278 97–42 S. 1322 97–77 S. 1395 97–24 S. 1475 97–50 S. 1493 97–128 S. 1551 97–141 S. 1672 97–84 S. 1687 97–70 S. 1712 97–62 S. 1946 97–127 S. 1948 97–111 S. 1976 97–143 S.J. Res. 4 97–75 S.J. Res. 16 97–1 S.J. Res. 28 97–28 S.J. Res. 34 97–131 S.J. Res. 50 97–13 S.J. Res. 57 97–135 S.J. Res. 61 97–8 S.J. Res. 62 97–44 S.J. Res. 64 97–32 S.J. Res. 65 97–54 S.J. Res. 78 97–52 S.J. Res. 84 97–138 S.J. Res. 87 97–43 S.J. Res. 98 97–61 S.J. Res. 100 97–132 S.J. Res. 103 97–53 S.J. Res. 115 97–93 S.J. Res. 117 97–144 S.J. Res. 121 97–139 S.J. Res. 136 97–95 v LIST OF PUBLIC LAWS CONTAINED IN THIS VOLUME Public Law Page 97–1 3 97–2 4 97–3 5 97–4 6 97–5 7 97–6 8 97–7 9 97–8 10 97–9 11 97–10 12 97–11 13 97–12 14 97–13 97 97–14 98viiviii 97–15 99 97–16 100 97–17 101 97–18 102 97–19 103 97–20 104 97–21 105 97–22 124 97–23 139 97–24 143 97–25 144 97–26 146 97–27 147 97–28 148 97–29 149ix 97–30 150 97–31 151 97–32 169 97–33 170 97–34 172 97–35 357 97–36 934 97–37 935 97–38 938 97–39 939 97–40 944 97–41 945 97–42 946x 97–43 947 97–44 948 97–45 949 97–46 953 97–47 954 97–48 955 97–49 956 97–50 957 97–51 958 97–52 969 97–53 970 97–54 971 97–55 973 97–56 976 97–57 978 97–58 979 97–59 988 97–60 989xi 97–61 1009 97–62 1010 97–63 1011 97–64 1019 97–65 1021 97–66 1026 97–67 1039 97–68 1040 97–69 1041 97–70 1045 97–71 1046xii 97–72 1047 97–73 1064 97–74 1065 97–75 1067 97–76 1068 97–77 1069 97–78 1070 97–79 1073 97–80 1081 97–81 1085xiii 97–82 1091 97–83 1094 97–84 1097 97–85 1098 97–86 1099 97–87 1134 97–88 1135 97–89 1150 97–90 1163 97–91 1173 97–92 1183 97–93 1204 97–94 1205xiv 97–95 1206 97–96 1207 97–97 1212 97–98 1213 97–99 1359 97–100 1391 97–101 1417 97–102 1442 97–103 1467 97–104 1491 97–105 1493 97–106 1503 97–107 1509xv 97–108 1510 97–109 1512 97–110 1513 97–111 1517 97–112 1518 97–113 1519 97–114 1565 97–115 1595 97–116 1611 97–117 1623 97–118 1634 97–119 1635 97–120 1646xvi 97–121 1647 97–122 1658 97–123 1659 97–124 1666 97–125 1667 97–126 1674 97–127 1675 97–128 1681 97–129 1686 97–130 1687 97–131 1692 97–132 1693 97–133 1698 97–134 1699 97–135 1704 97–136 1705 97–137 1709xvii 97–138 1713 97–139 1715 97–140 1717 97–141 1719 97–142 1721 97–143 1723 97–144 1725 97–145 1727 LIST OF BILLS ENACTED INTO PRIVATE LAW THE NINETY-SEVENTH CONGRESS, FIRST-SESSION Bill No. Private Law No. H.R. 439 100–17 H.R. 661 97–1 H.R. 688 97–2 H.R. 783 97–3 H.R. 1469 97–4 H.R. 1480 97–5 H.R. 1550 97–6 H.R. 1785 97–7 H.R. 1797 97–12 H.R. 2010 97–8 H.R. 2185 97–9 H.R. 2573 97–10 H.R. 2975 97–11 xix LIST OF PRIVATE LAWS CONTAINED IN THIS VOLUME Private Law Page 97–1 1733 97–2 1733 97–3 1733 97–4 1734 97–5 1734 97–6 1734 97–7 1735 97–8 1735 97–9 1736 97–10 1736 97–11 1736 97–12 1737 xxi LIST OF CONCURRENT RESOLUTIONS CONTAINED IN THIS VOLUME Con. Res. Page Congress. Joint meeting 1741 Joint Committee for Inaugural Arrangements 1741 House of Representatives and Senate. Adjournment from Feb. 6–17, 1981 and Feb. 6–16, 1981 respectively 1741 Congress. Joint meeting 1742 Lawless Seizure of Spanish Parliament. Restoration and support of democracy 1742 House of Representatives and Senate. Adjournment from Apr. 10–Apr. 27, 1981 respectively. 1743 Congress. Joint meeting 1743 Congressional Budget for Fiscal Years 1982–1984 and Revision for Fiscal Year 1981 1743 American Red Cross. One hundredth anniversary 1759 National Symphony Orchestra. Concerts on the Capitol Grounds 1760 House of Representatives and Senate. Adjournment from May 21–27, 1981 and May 21–June 1, 1981 respectively 1760 Omnibus Reconciliation Act of 1981 and Conference Report 1760 House of Representatives and Senate. Adjournment from June 25 or 26–July 8, 1981 and June 26–July 8, 1981 respectively 1761 House of Representatives and Senate. Adjournment period 1761 H.R. 3982. Corrections in bill enrollment 1761 House of Representatives and Senate. Adjournment from Aug. 3–Sept. 9, 1981 and Aug. 4–Sept. 9, 1981 respectively 1773 H.R. 4242. Corrections in bill enrollment 1773 S. 917. Correction in bill enrollment 1774 Anwar El-Sadat. Expressions of gratitude and sympathy 1774 House of Representatives and Senate. Adjournment from Oct. 7–13, 1981 and Oct. 7–14, 1981 respectively 1775 Strategic Arms Reduction Talks with the Soviets. 1775 House of Representatives and Senate. Adjournment from Nov. 23–30, 1981 and Nov. 24 or 25–30, 1981 respectively 1776 Franklin Delano Roosevelt. Joint committee for commemoration of his birth 1776 “How Our Laws Are Made.” Printing as House document; additional copies 1777 Congressional Budget for Fiscal Year 1982. Senate reaffirmation 1778 Alexander Paritsky. U.S. support for release from prison in U.S.S.R. 177xxiiixxiv Economic Recovery Tax Act of 1981. General explanation 1780 Investigation of Senator Harrison A. Williams, Jr. Committee print 1780 Congress. Adjournment sine die 1780 S. 881 Corrections in bill enrollment 1781 Andrei Sakharov. U.S. support for release from internal exile in U.S.S.R. 1782 Martin Luther King, Jr., Commemoration of Birth. Structures and equipment on Capitol Grounds 1783 LIST OF PROCLAMATIONS CONTAINED IN THIS VOLUME No. 4809 1787 4810 1788 4811 1789 4812 1790 4813 1791 4814 1792 4815 1793 4816 1794 4817 1795 4818 1796 4819 1797 4820 1798 4821 1799 4822 1800 4823 1801 4824 1801 4825 1802 4826 1803 4827 1804 4828 1804 4829 1805 4830 1806 4831 1807 4832 1808 4833 1809 4834 1809 4835 1810 4836 1811 4837 1812 4838 1813 4839 1814 4840 1815 4841 1815 4842 1817 4843 1818 4844 1818 4845 1819 4846 1820 4847 1821 4848 1822 4849 1823 4850 1823xxvxxvi 4851 1824 4852 1825 4853 1826 4854 1827 4855 1827 4856 1828 4857 1829 4858 1830 4859 1831 4860 1832 4861 1833 4862 1833 4863 1834 4864 1835 4865 1836 4866 1837 4867 1837 4868 1838 4869 1839 4870 1840 4871 1841 4872 1841 4873 1842 4874 1843 4875 1844 4876 1845 4877 1847 4878 1848 4879 1849 4880 1850 4881 1850 4882 1851 4883 1852 4884 1853 4885 1854 4886 1855

PUBLIC LAWS

enacted during the

FIRST SESSION OF THE NINETY-SEVENTH CONGRESS

of the

UNITED STATES OF AMERICA

 Begun and held at the City of Washington on Monday, January 6, 1981, and adjourned sine die on Wednesday, December 16, 1981. Until noon January 20, 1981, Jimmy Carter, President; Walter F. Mondale, Vice President; Thomas P. O’Neill, Jr., Speaker of the House of Representatives; from January 20, 1981, Ronald Reagan, President; George Bush, Vice President; Thomas P O’Neill, Jr., Speaker of the House of Representatives. Public Law 97–1: Designating January 29, 1981, as “A Day of Thanksgiving To Honor Our Safely Returned Hostages”. Public Law 1 Public Law 97–1 95 Stat. 3 1981-01-26 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 3 Public Law 97–1 97th Congress
Joint Resolution Designating January 29, 1981, as “A Day of Thanksgiving To Honor Our Safely Returned Hostages”.

Jan. 26, 1981

[S.J. Res. 16]

 Whereas we the people of the United States are one people under God; Whereas in recognition of the hope, honor, faith, and courage of those men and women who have been forceably held prisoner in Iran; Whereas eight brave men laid down their lives in the pursuit and defense of freedom; Whereas in order for the people of the United States of America to express their appreciation, hope, and care for these men and women; and Whereas in order for the Nation to express its thanks to God for the safekeeping of these people and this Country: Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That the 29th day of

A Day of Thanksgiving To Honor Our Safely Returned Hostages.

Designation.

 January 1981, is declared “A Day of Thanksgiving To Honor Our Safely Returned Hostages”, and that Americans participate in services in places of their own choosing on that date, as already called for by churches, synagogues, and mosques across this Country.
Approved January 26, 1981.
LEGISLATIVE HISTORY—S.J. Res. 16: CONGRESSIONAL RECORD, Vol. 127 (1981):

Jan. 22, considered and passed Senate.

Jan. 23, considered and passed House.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 17, No. 5 (1981):

Jan. 26, Presidential statement.

 Public Law 97–2: To provide for a temporary increase in the public debt limit. Public Law 2 Public Law 97–2 95 Stat. 4 1981-02-07 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 4 Public Law 97–2 97th Congress
An Act To provide for a temporary increase in the public debt limit.

Feb. 7, 1981

[H.R. 1553]

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

Public debt limit, temporary increase.

31 USC 757b note.
That, during the period beginning on the date of the enactment of this Act and ending on September 30, 1981, the public debt limit set forth in the first sentence of section 21 of the Second Liberty Bond Act (31 U.S.C. 757b) shall be temporarily increased by $585,000,000,000 (and any other provision of law providing for a temporary increase in such limit shall not apply).
Approved February 7, 1981.
LEGISLATIVE HISTORY—H.R. 1553 (S. 393): HOUSE REPORT No. 97–1 (Comm. on Ways and Means). CONGRESSIONAL RECORD, Vol. 127 (1981):

Feb. 5, considered and passed House.

Feb. 5, 6, considered and passed Senate.

 Public Law 97–3: To increase the number of members of the Commission on Wartime Relocation and Internment of Civilians. Public Law 3 Public Law 97–3 95 Stat. 5 1981-02-10 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 5 Public Law 97–3 97th Congress
An Act To increase the number of members of the Commission on Wartime Relocation and Internment of Civilians.

Feb. 10, 1981

[S. 253]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That (a)(1) subsection

Commission Wartime Relocation and Internment of Civilians, membership increase.

94 Stat. 964.

50 USC app. 1981 note.

 (b) of section 3 of the Commission on Wartime Relocation and Internment of Civilians Act is amended by striking out “seven” and inserting in lieu thereof “nine”. (2) Clause (2) of such subsection is amended by striking out “Two” and inserting in lieu thereof “Three”. (3) Clause (3) of such subsection is amended by striking out “Two” and inserting in lieu thereof “Three”. (b) Subsection (e) of section 3 of such Act is amended by striking out “Four” and inserting in lieu thereof “Five”.
Approved February 10, 1981.
LEGISLATIVE HISTORY—S. 253: CONGRESSIONAL RECORD, Vol. 127 (1981):

Jan. 27, considered and passed Senate.

Jan. 28, considered and passed House.

 Public Law 97–4: To increase the membership of the Joint Committee on Printing. Public Law 4 Public Law 97–4 95 Stat. 6 1981-02-17 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 6 Public Law 97–4 97th Congress
An Act To increase the membership of the Joint Committee on Printing.

Feb. 17, 1981

[S. 272]

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

Joint Committee on Printing.

Membership increase.
That section 101, title 44, United States Code, is amended to read as follows:

“The Joint Committee on Printing shall consist of the chairman and four members of the Committee on Rules and Administration of the Senate and the chairman and four members of the Committee on House Administration of the House of Representatives.”.
Approved February 17, 1981.
LEGISLATIVE HISTORY—S. 272: SENATE REPORT No. 97–2 (Comm. on Rules and Administration). CONGRESSIONAL RECORD, Vol. 127 (1981):

Feb. 3, considered and passed Senate.

Feb. 5, considered and passed House.

 Public Law 97–5: To amend the Energy Policy and Conservation Act to extend certain authorities relating to the international energy program. Public Law 5 Public Law 97–5 95 Stat. 7 1981-03-13 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 7 Public Law 97–5 97th Congress
An Act To amend the Energy Policy and Conservation Act to extend certain authorities relating to the international energy program.

Mar. 13, 1981

[H.R. 2166]

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

of Energy Policy and Conservation Act, amendment.

 section 252 of the Energy Policy and Conservation Act (42 U.S.C. 6272(j)) is amended by striking out “March 15, 1981” and inserting in lieu thereof “September 30, 1981”.
Approved March 13, 1981.
LEGISLATIVE HISTORY—H.R. 2166 (S. 573): HOUSE REPORT No. 97–9 (Comm. on Energy and Commerce). CONGRESSIONAL RECORD, Vol. 127 (1981):

Mar. 10, considered and passed House; considered and passed Senate, in lieu of S. 573.

 Public Law 97–6: To amend section 201 of the Agricultural Act of 1949, as amended, to delete the requirement that the support price of milk be adjusted semiannually. Public Law 6 Public Law 97–6 95 Stat. 8 1981-03-31 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 8 Public Law 97–6 97th Congress
An Act To amend section 201 of the Agricultural Act of 1949, as amended, to delete the requirement that the support price of milk be adjusted semiannually.

Mar. 31, 1981

[S. 509]

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

Milk price support, adjustment.
That section 201 of the Agricultural Act of 1949, as amended (7 U.S.C. 1446), is further amended by deleting subsection (d).
Approved March 31, 1981.
LEGISLATIVE HISTORY—S. 509 (H.R. 1986)(H.R. 2594): HOUSE REPORT No. 97–12 accompanying H.R. 2594 (Comm. on Agriculture). SENATE REPORT No. 97–24 (Comm. on Agriculture, Nutrition, and Forestry). CONGRESSIONAL RECORD, Vol. 127 (1981):

Mar. 17, 19, 23–25, considered and passed Senate.

Mar. 26, H.R. 1986 considered and passed House; S. 509 considered and passed House, amended, in lieu of H.R. 1986.

Mar. 27, Senate concurred in House amendment.

 Public Law 97–7: To continue in effect any authority provided under the Department of Justice Appropriation Authorization Act, Fiscal Year 1980, for a certain period. Public Law 7 Public Law 97–7 95 Stat. 9 1981-04-09 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 9 Public Law 97–7 97th Congress
An Act To continue in effect any authority provided under the Department of Justice Appropriation Authorization Act, Fiscal Year 1980, for a certain period.

Apr. 9, 1981

[S. 840]

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

Justice Department Appropriation Authorization Act, FY 1980.

Authority continuation.

94 Stat. 1563.

 and any limitation on authority, contained in the Department of Justice Appropriation Authorization Act, Fiscal Year 1980, shall continue in effect with respect to activities of the Department of Justice (including any bureau, office, board, division, commission, or subdivision thereof) during the period beginning on April 6, 1981, and ending immediately before October 1, 1981.
Approved April 9, 1981.
LEGISLATIVE HISTORY—S. 840: CONGRESSIONAL RECORD, Vol. 127 (1981):

Mar. 31, considered and passed Senate.

Apr. 7, considered and passed House, amended.

Apr. 8, Senate concurred In House amendment.

 Public Law 97–8: To authorize and request the President to issue a proclamation designating April 9, 1981, as “African Refugee Relief Day”. Public Law 8 Public Law 97–8 95 Stat. 10 1981-04-09 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 10 Public Law 97–8 97th Congress
Joint Resolution To authorize and request the President to issue a proclamation designating April 9, 1981, as “African Refugee Relief Day”.

Apr. 9, 1981

[S.J. Res. 61]

 Whereas there are more than four million refugees on the continent of Africa, and more than half of the world’s refugees are African; Whereas these refugees, who are primarily women and children, have typically crossed hundreds of miles to escape the ravages of armed conflict, drought, and political unrest; Whereas world attention has focused on the plight of the more than one million refugees in Somalia who have fled the war in Ogaden, are suffering greatly from disease and malnutrition, and are being housed in overcrowded camps in which more than 90 per centum of the refugees are women and children; Whereas approximately twenty-seven African countries are confronted with refugee problems, and generally lack sufficient resources to provide these victims with necessary sustenance; and Whereas the Organization for African Unity and the United Nations High Commissioner for Refugees mil convene an international conference in Geneva on April 9 and 10, 1981, to develop a plan of action to respond to this grave crises: Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,

African Refugee Relief Day.

Designation authorization.
That the President of the United States is authorized and requested to issue a proclamation designating April 9, 1981, as “African Refugee Relief Day” and calling upon the people of the United States to observe such day by (1) increasing their awareness of the plight of African refugees; and (2) foregoing one meal and using the funds that otherwise would have been spent on such meal to make contributions to recognized private voluntary agencies providing care and relief for such refugees.
Approved April 9, 1981.
LEGISLATIVE HISTORY—S.J. Res. 61: CONGRESSIONAL RECORD, Vol. 127 (1981):

Apr. 7, considered and passed Senate and House.

 Public Law 97–9: To designate April 26, 1981, as “National Recognition Day for Veterans of the Vietnam Era”. Public Law 9 Public Law 97–9 95 Stat. 11 1981-04-14 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 11 Public Law 97–9 97th Congress
Joint Resolution To designate April 26, 1981, as “National Recognition Day for Veterans of the Vietnam Era”.

Apr. 14, 1981

[H.J. Res. 182]

 Whereas the valorous service of Vietnam veterans has never been properly commemorated or recognized; Whereas the conflict in Vietnam claimed more than fifty-five thousand American lives; Whereas three hundred thousand men were wounded and one hundred and fifty thousand permanently disabled during the conflict in Vietnam; Whereas there are four hundred and eighty thousand Vietnam veterans between the ages of twenty-five and thirty-nine who are currently unemployed; Whereas as many as two hundred and eighty thousand Vietnam veterans suffer the intermittent psychological aftereffects of the Vietnam conflict; and Whereas the more than two million five hundred thousand Americans who answered their country’s call to duty and served honorably deserve the Nation’s gratitude: Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That the President is

National Day of Recognition for Veterans of the Vietnam Era.

Designation authorization.

 authorized and requested to designate April 26, 1981, as a “National Day of Recognition for Veterans of the Vietnam Era”, and to call upon the people of the United States to observe such day with appropriate programs, ceremonies, and activities, including a week of symposia hearings and conferences to be conducted in Washington, District of Columbia, prior to April 26, dedicated to those issues of concern to Vietnam veterans.
Approved April 14, 1981.
LEGISLATIVE HISTORY—H.J. Res. 182 (S.J. Res. 40): CONGRESSIONAL RECORD, Vol. 127 (1981):

Mar. 26, considered and passed House.

Mar 31, considered and passed Senate.

 Public Law 97–10: To authorize and request the President to issue a proclamation designating May 3 through May 10, 1981, as “Jewish Heritage Week”. Public Law 10 Public Law 97–10 95 Stat. 12 1981-05-01 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 12 Public Law 97–10 97th Congress
Joint Resolution To authorize and request the President to issue a proclamation designating May 3 through May 10, 1981, as “Jewish Heritage Week”.

May 1, 1981

[H.J. Res. 155]

 Whereas the Congress recognizes that an understanding of the heritage of all American ethnic groups contributes to the unity of our country; and Whereas intergroup understanding can be further fostered through an appreciation of the culture, history, and traditions of the Jewish community and the contributions of Jews to our country and society; and Whereas the months of April and May contain events of major significance in the Jewish calendar—Passover, the anniversary of the Warsaw Ghetto Uprising, Israeli Independence Day, Solidarity Sunday for Soviet Jewry, and Jerusalem Day: Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,

Jewish Heritage Week.

Designation authorization.
That the President is authorized and requested to issue a proclamation designating May 3 through May 10, 1981, as “Jewish Heritage Week” and calling upon the people of the United States, State and local government agencies, and interested organizations to observe that week with appropriate ceremonies, activities, and programs.
Approved May 1, 1981.
LEGISLATIVE HISTORY—H.J. Res. 155: CONGRESSIONAL RECORD, Vol. 127 (1981):

Mar. 26, considered and passed House.

Apr. 27, considered and passed Senate.

 Public Law 97–11: To ensure necessary funds for the implementation of the Federal Crop Insurance Act of 1980. Public Law 11 Public Law 97–11 95 Stat. 13 1981-05-22 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 13 Public Law 97–11 97th Congress
An Act To ensure necessary funds for the implementation of the Federal Crop Insurance Act of 1980.

May 22, 1981

[S. 730]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That section 516(a)

Federal Crop Insurance Act, amendment.

 of the Federal Crop Insurance Act (7 U.S.C. 1516(a)) is amended by— (1) inserting “(1)” immediately after the subsection designation; and (2) adding a new paragraph (2) as follows: “(2) To ensure the timely implementation of the Federal Crop Insurance Act of 1980, the Corporation may use funds otherwise

7 USC 1501 note.

 available for the payment of indemnities to pay administrative and operating expenses of the Corporation incurred during the fiscal year ending September 30, 1981. However, the total amount of funds used by the Corporation under this paragraph shall not exceed $14,000,000.”.
Approved May 22, 1981.
LEGISLATIVE HISTORY—S. 730 (H.R. 3020): HOUSE REPORT: No. 97–27 accompanying H.R. 3020 (Comm. on Agriculture). SENATE REPORT: No. 97–38 (Comm. on Agriculture, Nutrition, and Forestry). CONGRESSIONAL RECORD, Vol. 127 (1981):

May 5, considered and passed Senate.

May 19, considered and passed House in lieu of H.R. 3020.

 Public Law 97–12: Making supplemental and further continuing appropriations for the fiscal year ending September 30, 1981, rescinding certain budget authority, and for other purposes. Public Law 12 Public Law 97–12 95 Stat. 14 1981-06-05 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 14 Public Law 97–12 97th Congress
An Act Making supplemental and further continuing appropriations for the fiscal year ending September 30, 1981, rescinding certain budget authority, and for other purposes.

June 5, 1981

[H.R. 3512]

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

Supplemental Appropriations and Rescission Act, 1981.
That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, to supply supplemental appropriations (this Act may be cited as the “Supplemental Appropriations and Rescission Act, 1981”) for the fiscal year ending September 30, 1981, that the following rescissions of budget authority are made, and for other purposes, namely:
<num value="I">TITLE I </num> <chapter> <num value="I">CHAPTER I </num> <heading class="centered">DEPARTMENT OF AGRICULTURE</heading> <appropriations level="intermediate"> <heading>Science and Education Administration</heading> <content class="firstIndent1 fontsize10">Of the amounts appropriated under the headings “Extension activities” and “Cooperative research” in the Agriculture, Rural Development and Related Agencies Appropriation Act, 1981 (Public <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3096">94 Stat. 3096</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s341">7 USC 341 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s361a">7 USC 361a note</ref>.</p></sidenote>Law 96–528), for payment to carry out cooperative agricultural extension work under the Smith-Lever Act, as amended, and cooperative forestry and other research under the Hatch Act, as amended, American Samoa and Micronesia shall be entitled to a distribution, as determined by the Secretary of Agriculture, for the fourth quarter of fiscal year 1981.</content> </appropriations> <appropriations level="intermediate"> <heading>Animal and Plant Health Inspection Service</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Animal and Plant Health Inspection Service”, $13,250,000.</content> </appropriations> <appropriations level="intermediate"> <heading>Agricultural Stabilization and Conservation Service</heading> <appropriations level="small"> <heading>dairy and beekeeper indemnity programs</heading> <subheading>(deferral)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided under this head in the Agriculture, Rural Development and Related Agencies Appropriation Act, 1981 (Public <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3102">94 Stat. 3102</ref>.</p></sidenote>Law 96–528), $1,500,000 may be withheld from obligation until October 1, 1981.</content> </appropriations> </appropriations> <page identifier="/us/stat/95/15">95 STAT. 15</page> <appropriations level="intermediate"> <heading>Federal Crop Insurance Corporation</heading> <appropriations level="small"> <heading>administrative and operating expenses</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Administrative and operating expenses”, $28,181,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Farmers Home Administration</heading> <appropriations level="small"> <heading>rural housing insurance fund</heading> <subheading>moderate income housing loans</subheading> <subheading>(deferral and rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided under this head in the Agriculture, Rural Development and Related Agencies Appropriation Act, 1981 (Public Law 96–528), $166,000,000 may be withheld from obligation until<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3105">94 Stat. 3105</ref>.</p></sidenote> October 1, 1981, and $150,000,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>agricultural credit insurance fund</heading> <subheading>farm ownership loans</subheading> <subheading>(deferral and rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided under this head in the Agriculture, Rural Development and Related Agencies Appropriation Act, 1981 (Public Law 96–528), $30,000,000 may be withheld from obligation until<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3105">94 Stat. 3105</ref>.</p></sidenote> October 1, 1981, and $50,000,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>soil and water loans</heading> <subheading>(deferral)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided under this head in the Agriculture, Rural Development and Related Agencies Appropriation Act, 1981 (Public Law 96–528), $5,000,000 may be withheld from obligation until October 1, 1981.</content> </appropriations> <appropriations level="small"> <heading>rural development insurance fund</heading> <subheading>alcohol production facility loans</subheading> <content class="firstIndent1 fontsize10">For loans to be guaranteed under this fund in accordance with and subject to the provision of 7 U.S.C. 1932(a), $250,000,000.</content> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF THE TREASURY</heading> <appropriations level="small"> <heading>energy security reserve</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided under this head for fiscal year 1980 in Public Law 96–304, $505,000,000 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/881">94 Stat. 881</ref>.</p></sidenote> </content> </appropriations> </appropriations> <page identifier="/us/stat/95/16">95 STAT. 16</page> <appropriations level="major"> <heading>DEPARTMENT OF AGRICULTURE</heading> <appropriations level="small"> <heading>rural community fire protection grants</heading> <subheading>(deferral)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Agriculture, Rural Development and Related Agencies Appropriation Act, 1981 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3106">94 Stat. 3106</ref>.</p></sidenote>(Public Law 96–528), $1,500,000 may be withheld from obligation until October 1, 1981.</content> </appropriations> <appropriations level="small"> <heading>rural development planning grants</heading> <subheading>(deferral)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Agriculture, Rural Development and Related Agencies Appropriation Act, 1981 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3106">94 Stat. 3106</ref>.</p></sidenote>(Public Law 96–528), $2,000,000 may be withheld from obligation until October 1, 1981.</content> </appropriations> <appropriations level="small"> <heading>rural housing supervisory assistance grants</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Agriculture, Rural Development and Related Agencies Appropriation Act, 1981 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3106">94 Stat. 3106</ref>.</p></sidenote>(Public Law 96–528), $500,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Rural Electrification Administration</heading> <appropriations level="small"> <heading>rural communication development fund</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the loan levels authorized under section 310B under this head in <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3108">94 Stat. 3108</ref>.</p></sidenote>Public Law 96–528, making appropriations for fiscal year 1981, $16,000,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Food and Nutrition Service</heading> <appropriations level="small"> <heading>child nutrition programs</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Child nutrition programs”, $109,875,000: <proviso> <i>Provided</i>, That this appropriation shall be available only to the extent an official supplemental request is transmitted to the Congress.</proviso> </content> </appropriations> <appropriations level="small"> <heading>food stamp program</heading> <content class="firstIndent1 fontsize10">For an additional amount for the “Food stamp program”, $1,740,724,000: <proviso> <i>Provided</i>, That this appropriation shall be available only upon enactment into law of authorizing legislation, but pending the enactment into law of such legislation, funds received from the sale of surplus agricultural commodities shall be available to the extent and in the manner provided in this paragraph:</proviso> <proviso> <i>Provided further</i>, That this appropriation shall be subject to any work registration or workfare requirements as may be required by law:</proviso> <proviso> <i>Provided further</i>, That of the amounts provided herein, $586,124,000 shall be available upon certification by the Secretary of Agriculture that the <page identifier="/us/stat/95/17">95 STAT. 17</page>Department of Agriculture is using all regulatory and administrative methods available under law to curtail fraud, waste, error, and abuse in the program:</proviso> <proviso> <i>Provided further</i>, That this appropriation shall be available only to the extent an official amended supplemental request is transmitted to the Congress:</proviso> <proviso> <i>Provided further</i>, That the funds provided herein shall remain available until September 30, 1981</proviso>.</content> </appropriations> </appropriations> </chapter> <chapter> <num value="II">CHAPTER II </num> <heading class="centered">DEPARTMENT OF COMMERCE</heading> <appropriations level="intermediate"> <heading>Bureau of the Census</heading> <appropriations level="small"> <heading>periodic censuses and programs</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Periodic censuses and programs”, $24,200,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Economic Development Administration</heading> <appropriations level="small"> <heading>economic development assistance programs</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for “Economic development assistance programs” in Public Law 96–536, $187,850,000 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Regional Development Program</heading> <appropriations level="small"> <heading>regional development programs</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for “Regional development programs” in Public Law 96–536, $21,000,000 are rescinded, and the balance<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> remaining under this head shall be available only to the extent necessary to complete termination of the program.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>United States Travel Service</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for United States Travel Service, “Salaries and expenses” in Public Law 96–536, $41,000 are rescinded. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Oceanic and Atmospheric Administration</heading> <appropriations level="small"> <heading>operations, research, and facilities</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Operations, research, and facilities”, $4,677,000, to remain available until expended: <proviso> <i>Provided</i>, That no funds available to this agency shall be used to either reduce or plan for a reduction in full-time permanent employment of less than twelve thousand five hundred and eighty (12,580):</proviso> <proviso> <i>Provided further</i>, That if the Secretary determines that the orderly and efficient operation of the Department of Commerce requires that he not comply with the preceding proviso, he need not comply and shall <page identifier="/us/stat/95/18">95 STAT. 18</page>submit to the Committees on Appropriations of the House and Senate, a report explaining his reasons for not complying.</proviso> </content> </appropriations> <appropriations level="small"> <heading>(rescission)</heading> <content class="firstIndent1 fontsize10">Of the funds appropriated for “Operations, research, and facilities” <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>in Public Law 96–536, $23,640,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>construction</heading> <subheading>(rescission)</subheading> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/91/432">91 Stat. 432</ref>.</p></sidenote> <content class="inline">Of the funds appropriated under this head in Public Law 95–86, $11,000,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>construction</heading> <subheading>(rescission)</subheading> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/91/432">91 Stat. 432</ref>.</p></sidenote> <content class="inline">Of the funds appropriated under this head in Public Law 95–86, $11,000,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>coastal energy impact fund</heading> <subheading>(deferral)</subheading> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/91/431">91 Stat. 431</ref>.</p></sidenote> <content class="inline">Of the funds appropriated under this head in Public Law 95–86, $7,000,000 are deferred for obligation until October 1, 1981.</content> </appropriations> <appropriations level="small"> <heading>coastal zone management</heading> <subheading>(transfer of funds)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Coastal zone management”, $33,000,000, to be derived by transfer from “Coastal energy impact fund”, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>coastal zone management</heading> <subheading>(transfer of funds)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Coastal zone management”, $33,000,000, to be derived by transfer from “Coastal energy impact fund”, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>promote and develop fishery products and research pertaining to american fisheries</heading> <subheading>(disapproval of deferral)</subheading> <content class="firstIndent1 fontsize10">The Congress disapproves $2,500,000 of the proposed deferral D81–105, relating to Department of Commerce, National Oceanic and Atmospheric Administration, “Promote and Develop Fishery Products and Research Pertaining to American Fisheries”, as set forth in the message of April 27, 1981, which was transmitted to the Congress <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote>by the President. This disapproval shall be effective upon enactment into law of this Act, and the amount of the proposed deferral disapproved herein shall be made available for obligation.</content> </appropriations> <appropriations level="small"> <heading>foreign fishing observer fund</heading> <content class="firstIndent1 fontsize10">For expenses necessary to carry out the provisions of the Fishery Conservation and Management Act of 1976, as amended (Public Law <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1069">94 Stat. 1069</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s1827">16 USC 1827</ref>.</p></sidenote>96–339), there are appropriated from the fees imposed under the foreign fishery observer program authorized by that Act, not to exceed $350,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>fishermen’s guaranty fund</heading> <content class="firstIndent1 fontsize10">For expenses necessary to carry out the provisions of the Fishermen’s <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s1971">22 USC 1971 note</ref>.</p></sidenote>Protective Act of 1967, as amended, $1,900,000, of which $450,000 is to be derived from the receipts collected pursuant to the Act, to remain available until expended.</content> </appropriations> </appropriations> <page identifier="/us/stat/95/19">95 STAT. 19</page> <appropriations level="intermediate"> <heading>Science and Technical Research</heading> <appropriations level="small"> <heading>scientific and technical research and services</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for “Scientific and technical research and services” in Public Law 96–536, $3,370,000 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Telecommunications and Information Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for the National Telecommunications and Information Administration, “Salaries and expenses” in Public Law 96–536, $163,000 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> </content> </appropriations> <appropriations level="small"> <heading>public telecommunications facilities, planning and construction</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for “Public telecommunications facilities, planning and construction” in Public Law 96–536, $6,000,000 are<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/8166">94 Stat. 8166</ref>.</p></sidenote> rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Maritime Administration</heading> <appropriations level="small"> <heading>ship construction</heading> <subheading>(disapproval of deferral)</subheading> <content class="firstIndent1 fontsize10">The Congress disapproves $55,000,000 of the proposed deferral D81–80 relating to the Department of Commerce, Maritime Administration, “Ship construction” as set forth in the message of March 10, 1981, which was transmitted to the Congress by the President.<sidenote><p class="indent0 firstIndent0 fontsize8">The Effective date.</p></sidenote> disapproval shall be effective upon the enactment into law of this Act and the amount of the proposed deferral disapproved herein shall be made available for obligation.</content> </appropriations> <appropriations level="small"> <heading>research and development</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for the Maritime Administration, “Research and development” in Public Law 96–536, $2,500,000 are<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> rescinded.</content> </appropriations> </appropriations> <page identifier="/us/stat/95/20">95 STAT. 20</page> <appropriations level="major"> <heading>DEPARTMENT OF JUSTICE</heading> <appropriations level="intermediate"> <heading>General Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(disapproval of deferral)</subheading> <content class="firstIndent1 fontsize10">The Congress disapproves $3,165,000 of the proposed deferral D81–85 relating to the Department of Justice, General Administration, “Salaries and expenses” as set forth in the message of March 10, <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote>1981, which was transmitted to the Congress by the President. This disapproval shall be effective upon enactment into law of this bill and the amount of the proposed deferral disapproved herein shall be made available for obligation.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Legal Activities</heading> <appropriations level="small"> <heading>salaries and expenses, general legal activities</heading> <subheading>(transfer of funds)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses, General legal activities”, $900,000, to be derived by transfer from Federal Prison System, “Buildings and facilities”.</content> </appropriations> <appropriations level="small"> <heading>salaries and expenses, united states attorneys and marshals</heading> <subheading>(including transfer of funds)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses, United States Attorneys and Marshals”, $7,251,000, of which $6,371,000 shall be derived by transfer from Federal Prison System, “Buildings and facilities”.</content> </appropriations> <appropriations level="small"> <heading>fees and expenses of witnesses</heading> <subheading>(including transfer of funds)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Fees and expenses of witnesses”, $6,200,000, of which $2,931,000 is to be derived from Office of Justice Assistance, Research, and Statistics, “Law enforcement assistance”.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Bureau of Investigation</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(including transfer of funds)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses”, $12,203,000, of which $4,320,000 shall be derived by transfer from General Administration, “Salaries and expenses” and $6,202,000 shall be derived by transfer from Federal Prison System, “Buildings and facilities”: <proviso> <i>Provided</i>, That no part of any appropriation contained in this Act nor any part of the appropriation contained in Public Law <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>96–536 for the Federal Bureau of Investigation, “Salaries and expenses” in excess of $35,218,000 shall be available for paying to the Administrator of the General Services Administration the standard level user charge established pursuant to section 210(j) of the Federal <page identifier="/us/stat/95/21">95 STAT. 21</page>Property and Administrative Services Act of 1949, as amended, for<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s490">40 USC 490</ref>.</p></sidenote> space and services.</proviso> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Immigration and Naturalization Service</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(including transfer of funds)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses”, $8,869,000, of which $670,000 is to be derived by transfer from Office of Justice Assistance, Research, and Statistics, “Law enforcement assistance”, and $5,452,000 is to be derived by transfer from Federal Prison System, “Buildings and facilities”.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Drug Enforcement Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(transfer of funds)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses”, $875,000, to be derived by transfer from Federal Prison System, “Buildings and facilities”: <proviso> <i>Provided</i>, That $1,700,000 appropriated for Drug Enforcement Administration, “Salaries and expenses” in Public Law 96–536<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> shall remain available until September 30, 1982, for purchase of evidence and purchase of information.</proviso> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Prison System</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(disapproval of deferral)</subheading> <content class="firstIndent1 fontsize10">The Congress disapproves the proposed deferral D81–86 relating to the Department of Justice, Federal Prison System, “Salaries and expenses” as set forth in the message of March 10, 1981, which was transmitted to the Congress by the President. This disapproval shall<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> be effective upon enactment into law of this Act and the amount of the proposed deferral disapproved herein shall be made available for obligation.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Justice Assistance, Research, and Statistics</heading> <appropriations level="small"> <heading>research and statistics</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Research and statistics”, $15,353,000.</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF STATE</heading> <appropriations level="intermediate"> <heading>Administration of Foreign Affairs</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(including transfer of funds)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses”, $1,475,000, and $3,000,000 to be derived by release of that amount which was <page identifier="/us/stat/95/22">95 STAT. 22</page>withheld from obligation pursuant to section 105 of H.R. 7584 as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>incorporated into Public Law 96–536; and $20,964,000 to be derived by transfer from “Contributions to international organizations” by release of that amount which was withheld from obligation pursuant to section 105 of H.R. 7584 as incorporated into Public Law 96–536: <proviso> <i>Provided</i>, That $35,800,000 appropriated for “Administration of foreign affairs, salaries and expenses” by Public Law 96–536 shall remain available until September 30, 1982</proviso>.</content> </appropriations> <appropriations level="small"> <heading>payment to the american institute in taiwan</heading> <subheading>(transfer of funds)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Payment to the American Institute in Taiwan”, $275,000 to be derived by transfer from “Acquisition, operation, and maintenance of buildings abroad” by release of that amount which was withheld from obligation pursuant to section 105 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>of H.R. 7584 as incorporated into Public Law 96–536.</content> </appropriations> <appropriations level="small"> <heading>payment to the foreign service retirement and disability fund</heading> <subheading>(including transfer of funds)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Payment to the Foreign Service retirement and disability fund”, $5,321,000, and $4,030,000 to be derived by transfer from “Acquisition, operation, and maintenance of buildings abroad” by release of that amount which was withheld from obligation pursuant to section 105 of H.R. 7584 as incorporated <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>into Public Law 96–536; and $2,695,000 to be derived by transfer from “Acquisition, operation, and maintenance of buildings abroad (Special foreign currency account)” by release of that amount which was withheld from obligation pursuant to section 105 of H.R. 7584 as incorporated into Public Law 96–536; and $205,000 to be derived by transfer from “Contributions to international organizations” by release of that amount which was withheld from obligation pursuant to section 105 of H.R. 7584 as incorporated into Public Law 96–536.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>International Organizations and Conferences</heading> <appropriations level="small"> <heading>contributions to international organizations</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for “Contributions to international <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>organizations” in Public Law 96–536, $84,000,000 are rescinded.</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>THE JUDICIARY</heading> <appropriations level="intermediate"> <heading>Supreme Court of the United States</heading> <appropriations level="small"> <heading>care of the building and grounds</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Care of the building and grounds”, $42,000.</content> </appropriations> <page identifier="/us/stat/95/23">95 STAT. 23</page> <appropriations level="small"> <heading>acquisition of property as an addition to the grounds of the united states supreme court building</heading> <content class="firstIndent1 fontsize10">To enable the Architect of the Capitol to carry out the provisions of Public Law 96–532, relating to the acquisition of property in lots 2, 3,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3130">94 Stat. 3130</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s13p">40 USC 13p note</ref>.</p></sidenote> 800, 801, and 802 in square 758 in the District of Columbia, $645,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Courts of Appeals, District Courts, and Other Judicial Services</heading> <appropriations level="small"> <heading>bankruptcy courts, salaries and expenses</heading> <subheading>(transfer of funds)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses”, $2,000,000, to be derived by transfer from “Space and facilities”.</content> </appropriations> <appropriations level="small"> <heading>judicial survivors’ annuity program</heading> <content class="firstIndent1 fontsize10">For deposit to the credit of the “Judicial survivors’ annuities fund”, the amount determined to be necessary to maintain the Fund on an actuarially sound basis, pursuant to Public Law 96–504, $616,000.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2742">94 Stat. 2742</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t28/s376">28 USC 376 note</ref>.</p></sidenote> </content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>RELATED AGENCIES</heading> <appropriations level="intermediate"> <heading>Arms Control and Disarmament Agency</heading> <appropriations level="small"> <heading>arms control and disarmament activities</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for “Arms control and disarmament activities” in Public Law 96–536, $1,500,000 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Board for International Broadcasting</heading> <appropriations level="small"> <heading>grants and expenses</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">The amounts provided in Public Law 96–536 for the Board for<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> International Broadcasting may be expended without regard to the limitation on $2,400,000 for the purpose of transferring RFE/RL positions to the United States.</p> <p class="indent0 firstIndent1 fontsize10">Notwithstanding section 8(b)) of the Board for International Broadcasting Act of 1973, not to exceed $1,600,000 of the amounts placed in<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s2877">22 USC 2877</ref>.</p></sidenote> reserve pursuant to that section, or which would be placed in reserve pursuant to that section, shall be available to the Board for carrying out that Act.</p> </content> </appropriations> <appropriations level="small"> <heading>(rescission)</heading> <content class="firstIndent1 fontsize10">Of the funds appropriated for the Board for International Broadcasting, “Grants and expenses” in Public Law 96–536, $8,957,000 are<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> rescinded.</content> </appropriations> </appropriations> <page identifier="/us/stat/95/24">95 STAT. 24</page> <appropriations level="intermediate"> <heading>Commission on Wartime Relocation and Internment of Civilians</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content class="firstIndent1 fontsize10">Funds appropriated for the Commission on Wartime Relocation and Internment of Civilians, “Salaries and expenses” by Public Law <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>96–536 shall remain available until September 30, 1982.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Department of the Treasury</heading> <appropriations level="small"> <heading>bureau of government financial operations</heading> <subheading>fishermen’s protective fund</subheading> <content class="firstIndent1 fontsize10">For payment to the Fishermen’s Protective Fund, in accordance <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s1979">22 USC 1979</ref>.</p></sidenote>with section 5 of the Public Law 92–569 approved October 26, 1972, $8,300,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Trade Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for the Federal Trade Commission, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>“Salaries and expenses” in Public Law 96–536, $226,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>International Communication Agency</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(transfer of funds)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses”, $350,000, to be derived by transfer from “Salaries and expenses (special foreign currency program)”.</content> </appropriations> <appropriations level="small"> <heading>salaries and expenses (special foreign currency program)</heading> <subheading>(disapproval of deferral)</subheading> <content class="firstIndent1 fontsize10">The Congress disapproves $350,000 of the proposed deferral D81–75 relating to the International Communication Agency, “Salaries and expenses (special foreign currency program)” as set forth in the message of February 13, 1981, which was transmitted to the Congress <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote>by the President. This disapproval shall be effective upon enactment into law of this Act and the amount of the proposed deferral disapproved herein shall be made available for obligation.</content> </appropriations> <appropriations level="small"> <heading>informational media guarantee fund</heading> <content class="firstIndent1 fontsize10">The Secretary of the Treasury shall cancel all notes originally issued or assumed by the Director of the United States Information Agency for purposes of payments under Informational Media Guarantees, and sums owing and unpaid thereon, including interest to the time of cancellation.</content> </appropriations> </appropriations> <page identifier="/us/stat/95/25">95 STAT. 25</page> <appropriations level="intermediate"> <heading>Small Business Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for the Small Business Administration, “Salaries and expenses” in Public Law 96–536, $700,000 are rescinded: <proviso> <i>Provided</i>, That $8,500,000 shall be available for Small Business Development Centers for fiscal year 1981 pursuant to section 20(i)(6) of the Small Business Act, as amended.</proviso> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s631">15 USC 631 note</ref>.</p></sidenote> </content> </appropriations> <appropriations level="small"> <heading>business loan and investment fund</heading> <subheading>(disapproval of deferral)</subheading> <content class="firstIndent1 fontsize10">The Congress disapproves $73,400,000 of the proposed deferral D81–41A relating to the Small Business Administration, “Business loan and investment fund” as set forth in the message of March 10, 1981, which was transmitted to the Congress by the President. This<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> disapproval shall be effective upon the enactment into law of this bill.</content> </appropriations> <appropriations level="small"> <heading>surety bond guarantees revolving fund</heading> <subheading>(disapproval of deferral)</subheading> <content class="firstIndent1 fontsize10">The Congress disapproves the proposed deferral D81–102 relating to the Small Business Administration, “Surety bond guarantees revolving fund” as set forth in the message of March 10, 1981, which was transmitted to the Congress by the President. This disapproval<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> shall be effective upon the enactment into law of this bill.</content> </appropriations> </appropriations> </appropriations> </chapter> <chapter> <num value="III">CHAPTER III </num> <heading class="centered">DEPARTMENT OF DEFENSE—MILITARY</heading> <appropriations level="intermediate"> <heading>Military Personnel</heading> <appropriations level="small"> <heading>military personnel, army</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Military personnel, Army”, $8,400,000.</content> </appropriations> <appropriations level="small"> <heading>military personnel, navy</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Military personnel, Navy”, $290,089,000.</content> </appropriations> <appropriations level="small"> <heading>military personnel, marine corps</heading> <subheading>(including transfer of funds)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Military personnel, Marine Corps”, $46,500,000, and in addition, $47,800,000, which shall be derived by transfer from “Retired pay, Defense”.</content> </appropriations> <page identifier="/us/stat/95/26">95 STAT. 26</page> <appropriations level="small"> <heading>military personnel, air force</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Military personnel, Air Force”, $140,150,000.</content> </appropriations> <appropriations level="small"> <heading>special pay for aviation officers</heading> <content class="firstIndent1 fontsize10">For the payment of special pay under section 301b of title 37, United States Code, $55,500,000, to be transferred to the various military personnel accounts.</content> </appropriations> <appropriations level="small"> <heading>reserve personnel, army</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Reserve personnel, Army”, $9,200,000.</content> </appropriations> <appropriations level="small"> <heading>reserve personnel, marine corps</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Reserve personnel, Marine Corps”, $8,257,000.</content> </appropriations> <appropriations level="small"> <heading>national guard personnel, army</heading> <content class="firstIndent1 fontsize10">For an additional amount for “National Guard personnel, Army”, $27,400,000.</content> </appropriations> <appropriations level="small"> <heading>national guard personnel, air force</heading> <content class="firstIndent1 fontsize10">For an additional amount for “National Guard personnel, Air Force”, $10,600,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Operation and Maintenance</heading> <appropriations level="small"> <heading>operation and maintenance, army</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Operation and maintenance, Army”, $466,149,000; and, in addition, $2,985,000 for liquidation of contract authority in “Operation and maintenance, Army” for fiscal year 1980; and, the amount of funds which can be used for emergencies and extraordinary expenses is increased to $4,159,000.</content> </appropriations> <appropriations level="small"> <heading>army stock fund</heading> <content class="firstIndent1 fontsize10">For the Army Stock Fund, $34,000,000.</content> </appropriations> <appropriations level="small"> <heading>operation and maintenance, navy</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Operation and maintenance, Navy”, $561,605,000; and, in addition, $153,567,000 for liquidation of contract authority in “Operation and maintenance, Navy” for fiscal year 1980; and, the amount of funds available only for regularly scheduled ship overhauls, restricted availabilities and expenses associated with the installation of equipment, improvements, and modifications scheduled to be accomplished concurrently during an overhaul or restricted availability is decreased to $3,620,000,000.</content> </appropriations> <appropriations level="small"> <heading>operation and maintenance, marine corps</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Operation and maintenance, Marine Corps”, $56,906,000; and, in addition, $4,077,000 for liquida-<page identifier="/us/stat/95/27">95 STAT. 27</page>tion of contract authority in “Operation and maintenance, Marine Corps” for fiscal year 1980.</content> </appropriations> <appropriations level="small"> <heading>operation and maintenance, air force</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Operation and maintenance, Air Force”, $923,568,000; and, in addition, $388,743,000 for liquidation of contract authority in “Operation and maintenance, Air Force” for fiscal year 1980.</content> </appropriations> <appropriations level="small"> <heading>operation and maintenance, defense agencies</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Operation and maintenance, Defense Agencies”, $111,675,000; and, in addition, the amount of funds which can be used for emergencies and extraordinary expenses is increased to $5,454,000.</content> </appropriations> <appropriations level="small"> <heading>defense stock fund</heading> <content class="firstIndent1 fontsize10">For an additional amount for the “Defense stock fund”, $423,000,000.</content> </appropriations> <appropriations level="small"> <heading>operation and maintenance, army reserve</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Operation and maintenance, Army Reserve”, $15,300,000.</content> </appropriations> <appropriations level="small"> <heading>operation and maintenance, navy reserve</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Operation and maintenance, Navy Reserve”, $17,737,000; and, in addition, $8,786,000 for liquidation of contract authority in “Operation and maintenance, Navy Reserve” for fiscal year 1980.</content> </appropriations> <appropriations level="small"> <heading>operation and maintenance, air force reserve</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Operation and maintenance, Air Force Reserve”, $25,400,000; and, in addition, $14,997,000 for liquidation of contract authority in “Operation and maintenance, Air Force Reserve” for fiscal year 1980.</content> </appropriations> <appropriations level="small"> <heading>operation and maintenance, army national guard</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Operation and maintenance, Army National Guard”, $26,150,000; and, in addition, $2,663,000 for liquidation of contract authority in “Operation and maintenance, Army National Guard” for fiscal year 1980.</content> </appropriations> <appropriations level="small"> <heading>operation and maintenance, air national guard</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Operation and maintenance, Air National Guard”, $70,900,000; and, in addition, $44,235,000 for liquidation of contract authority in “Operation and maintenance, Air National Guard” for fiscal year 1980.</content> </appropriations> <appropriations level="small"> <heading>claims, defense</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Claims, defense”, $6,000,000.</content> </appropriations> </appropriations> <page identifier="/us/stat/95/28">95 STAT. 28</page> <appropriations level="intermediate"> <heading>Procurement</heading> <appropriations level="small"> <heading>aircraft procurement, army</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Aircraft procurement, Army, 1981/1983”, $116,700,000, to remain available for obligation until September 30, 1983.</content> </appropriations> <appropriations level="small"> <heading>missile procurement, army</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Missile procurement, Army, 1981/1983”, $25,100,000, to remain available for obligation until September 30, 1983.</content> </appropriations> <appropriations level="small"> <heading>procurement of weapons and tracked combat vehicles, army</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Procurement of weapons and tracked combat vehicles, Army, 1981/1983”, $796,000,000, to remain available for obligation until September 30, 1983.</content> </appropriations> <appropriations level="small"> <heading>procurement of ammunition, army</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Procurement of ammunition, Army, 1981/1983”, $27,700,000, to remain available for obligation until September 30, 1983.</content> </appropriations> <appropriations level="small"> <heading>other procurement, army</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Other procurement, Army, 1981/1983”, $598,750,000, to remain available for obligation until September 30, 1983.</content> </appropriations> <appropriations level="small"> <heading>aircraft procurement, navy</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Aircraft procurement, Navy, 1981/1983”, $143,600,000, to remain available for obligation until September 30, 1983.</content> </appropriations> <appropriations level="small"> <heading>shipbuilding and conversion, navy</heading> <content class="firstIndent1 fontsize10">For an additional net amount for “Shipbuilding and conversion, Navy, 1981/1985”, $241,400,000, consisting of additional amounts as follows: $152,400,000 for the CG–47 AEGIS cruiser program; and $89,000,000 for advance procurement for reactivation of a battleship, to remain available for obligation until September 30, 1985.</content> </appropriations> <appropriations level="small"> <heading>procurement, marine corps</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Procurement, Marine Corps, 1981/1983”, $19,200,000, to remain available for obligation until September 30, 1983.</content> </appropriations> <appropriations level="small"> <heading>aircraft procurement, air force</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Aircraft procurement, Air Force, 1981/1983”, $753,285,000, to remain available for obligation until September 30, 1983.</content> </appropriations> <page identifier="/us/stat/95/29">95 STAT. 29</page> <appropriations level="small"> <heading>missile procurement, air force</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Missile procurement, Air Force, 1981/1983”, $205,869,000, to remain available for obligation until September 30, 1983.</content> </appropriations> <appropriations level="small"> <heading>other procurement, air force</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Other procurement, Air Force, 1981/1983”, $150,206,000, to remain available for obligation until September 30, 1983.</content> </appropriations> <appropriations level="small"> <heading>procurement, defense agencies</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Procurement, Defense Agencies, 1981/1983”, $16,436,000, to remain available for obligation until September 30, 1983; and, in addition, the number of passenger motor vehicles that can be purchased is increased to three hundred and sixteen.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Research, Development, Test, and Evaluation</heading> <appropriations level="small"> <heading>research, development, test, and evaluation, army</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Research, development, test, and evaluation, Army, 1981/1982”, $41,017,000, to remain available for obligation until September 30, 1982.</content> </appropriations> <appropriations level="small"> <heading>research, development, test, and evaluation, navy</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Research, development, test, and evaluation, Navy, 1981/1982”, $113,609,000, of which not to exceed $2,000,000 is for research and development in connection with the reactivation of the battleship U.S.S. New Jersey and not to exceed $1,000,000 is for research and development in connection with the reactivation of the battleship U.S.S. Iowa, to remain available for obligation until September 30, 1982.</content> </appropriations> <appropriations level="small"> <heading>research, development, test, and evaluation, air force</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Research, development, test, and evaluation, Air Force, 1981/1982”, $308,976,000, to remain available for obligation until September 30, 1982.</content> </appropriations> <appropriations level="small"> <heading>research, development, test, and evaluation, defense agencies</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Research, development, test, and evaluation, Defense Agencies, 1981/1982”, $44,346,000, to remain available for obligation until September 30, 1982.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>General Provisions</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">Appropriations or funds available to the Department of Defense may be transferred to fiscal year 1981 Department of Defense appropriations for Research, development, test, and evaluation to the extent necessary to meet increased pay costs authorized by or pursuant to law.</p> <p class="indent0 firstIndent1 fontsize10">None of the funds appropriated to the Department of Defense for<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s2304">10 USC 2304 note</ref>.</p></sidenote> fiscal year 1981 and hereafter shall be available for obligation to <page identifier="/us/stat/95/30">95 STAT. 30</page>reimburse a contractor for the cost of commercial insurance (other than insurance normally maintained by the contractor in connection with the general conduct of his business) that would protect against costs of the contractor for correction of the contractor’s own defects in materials or workmanship incident to the normal course of construction (those defects in materials or workmanship which do not constitute a fortuitous or casualty loss).</p> </content> </appropriations> </chapter> <chapter> <num value="IV">CHAPTER IV </num> <heading class="centered">DEPARTMENT OF ENERGY</heading> <appropriations level="intermediate"> <heading>Operating Expenses</heading> <appropriations level="small"> <heading>energy supply, research and development activities</heading> <subheading>(rescission and deferral)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for “Operating expenses, energy supply, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1331">94 Stat. 1331</ref>.</p></sidenote>research and development activities” in Public Law 96–367 and other Acts making appropriations for Energy and Water Development, $82,511,000 are rescinded and $105,688,000 are deferred for obligation until October 1, 1981.</content> </appropriations> <appropriations level="small"> <heading>uranium supply and enrichment activities</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Contract authority deemed to have been made available for “Operating expenses, uranium supply and enrichment activities” in Public <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1331">94 Stat. 1331</ref>.</p></sidenote>Law 96–367 and other Acts making appropriations for Energy and Water Development in the amount of $979,585,000 is hereby rescinded.</content> </appropriations> <appropriations level="small"> <heading>atomic energy defense activities</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Operating expenses, atomic energy defense activities”, $41,000,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>(disapproval of deferral)</heading> <content class="firstIndent1 fontsize10">The Congress disapproves the proposed deferral D81–29A relating to the Atomic Energy Defense Activities inertial confinement fusion program as set forth in the message of March 10, 1981, which was <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote>transmitted to the Congress by the President. This disapproval shall be effective upon enactment into law of this bill. The funds shall be made available for obligation to carry out the inertial confinement <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3197">94 Stat. 3197</ref>.</p></sidenote>fusion program activities authorized in Public Law 96–540.</content> </appropriations> </appropriations> <page identifier="/us/stat/95/31">95 STAT. 31</page> <appropriations level="intermediate"> <heading>Departmental Administration</heading> <appropriations level="small"> <heading>general administration</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Operating expenses, departmental administration, general administration”, $41,000,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Plant and Capital Equipment</heading> <appropriations level="small"> <heading>energy supply, research and development activities</heading> <subheading>(rescission and deferral)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for “Plant and capital equipment, energy supply, research and development activities” in Public Law 96–367 and other Acts making appropriations for Energy and Water<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1332">94 Stat. 1332</ref>.</p></sidenote> Development, $2,500,000 are rescinded and $36,647,000 are deferred for obligation until October 1, 1981.</content> </appropriations> <appropriations level="small"> <heading>uranium supply and enrichment activities</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Contract authority deemed to have been made available for “Plant and capital equipment, uranium supply and enrichment activities” in Public Law 96–367 and other Acts making appropriations for<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1332">94 Stat. 1332</ref>.</p></sidenote> Energy and Water Development, in the amount of $274,460,000 is hereby rescinded.</content> </appropriations> <appropriations level="small"> <heading>atomic energy defense activities</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Plant and capital equipment, atomic energy defense activities”, $10,000,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>(deferral)</heading> <content class="firstIndent1 fontsize10">Of the funds appropriated for “Plant and capital equipment, atomic energy defense activities” in Public Law 96–367 and other<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1333">94 Stat. 1333</ref>.</p></sidenote> Acts making appropriations for Energy and Water Development, $30,000,000 are deferred for obligation until October 1, 1981.</content> </appropriations> <appropriations level="small"> <heading>departmental administration</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for “Plant and capital equipment, departmental administration” in Public Law 96–367 and other Acts<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1333">94 Stat. 1333</ref>.</p></sidenote> making appropriations for Energy and Water Development, $11,500,000 are rescinded.</content> </appropriations> </appropriations> <page identifier="/us/stat/95/32">95 STAT. 32</page> <appropriations level="intermediate"> <heading>Geothermal Resources Development Fund</heading> <appropriations level="small"> <heading>geothermal loan guarantee and interest assistance program</heading> <subheading>(rescission and deferral)</subheading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">Of the funds appropriated for “Geothermal resources development fund, geothermal loan guarantee and interest assistance program” in Public Law 94–355, Public Law 95–96, Public Law 96–69, Public Law <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/90/890">90 Stat. 890</ref>;</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/91/798">91 Stat. 798</ref>;</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/93/440">93 Stat. 440</ref>;</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1335">94 Stat. 1335</ref>.</p></sidenote>96–367 and other Acts making appropriations for Energy and Water Development, $21,982,000 are rescinded and $101,000 are deferred for obligation until October 1, 1981.</p> <p class="indent0 firstIndent1 fontsize10">Amounts required for interest assistance payments hereafter shall be met from funds provided annually in appropriations Acts and the moneys remaining in the fund shall be available generally for the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/90/890">90 Stat. 890</ref>.</p></sidenote>purposes specified in title II of Public Law 94–355.</p> </content> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF DEFENSE—CIVIL</heading> <subheading>DEPARTMENT OF THE ARMY</subheading> <appropriations level="intermediate"> <heading>Corps of Engineers—Civil</heading> <appropriations level="small"> <heading>operation and maintenance, general</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Operation and maintenance, general”, $34,000,000, to remain available until expended. Any activity undertaken by virtue of funds appropriated herein for the relief of the emergency situation created by the eruptions of the volcano at Mount Saint Helens in Washington State is not prohibited by or otherwise subject to regulation under section 301, 402, or 404 of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t33/s1311,">33 USC 1311, 1342, 1344</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t33/s403">33 USC 403</ref>.</p></sidenote>Federal Water Pollution Control Act of 1972, as amended, or section 10 of the River and Harbor Act of 1899: <proviso> <i>Provided</i>, That as expeditiously as possible, consistent with the protection of the public interests through the continuation of the emergency dredging, disposal, and related activities necessary, the Corps of Engineers shall initiate accelerated and abbreviated procedures, including as is appropriate, public notices and opportunities for public hearings, for such activities under section 404 of the Federal Water Pollution Control Act of 1972, as amended and section 10 of the River and Harbor Act of 1899.</proviso> </content> </appropriations> <appropriations level="small"> <heading>flood control and coastal emergencies</heading> <content class="firstIndent1 fontsize10">For expenses necessary for flood control and coastal emergencies, $25,000,000, to remain available until expended. Any activity undertaken by virtue of funds appropriated herein for the relief of the emergency situation created by the eruptions of the volcano at Mount Saint Helens in Washington State is not prohibited by or otherwise subject to regulation under section 301, 402, or 404 of the Federal Water Pollution Control Act of 1972, as amended, or section 10 of the River and Harbor Act of 1899: <proviso> <i>Provided</i>, That as expeditiously as possible, consistent with the protection of the public interests through the continuation of the emergency dredging, disposal, and related activities necessary, the Corps of Engineers shall initiate accelerated and abbreviated procedures, including as is appropriate public notices and opportunities for public hearings, for such activities under section 404 of the Federal Water Pollution Control Act of 1972, as amended, and section 10 of the River and Harbor Act of 1899.</proviso> </content> </appropriations> <page identifier="/us/stat/95/33">95 STAT. 33</page> <appropriations level="small"> <heading>flood control, mississippi river and tributaries</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Flood control, Mississippi River tributaries”, $5,000,000, to remain available until expended.</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>INDEPENDENT AGENCIES</heading> <appropriations level="intermediate"> <heading>Funds Appropriated to the President</heading> <appropriations level="small"> <heading>appalachian regional development programs</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for “Funds appropriated to the President, Appalachian regional development programs” in the Energy and Water Development Appropriation Act, 1981, $40,000,000 are<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1343">94 Stat. 1343</ref>.</p></sidenote> rescinded.</content> </appropriations> <appropriations level="small"> <heading>(deferral)</heading> <content class="firstIndent1 fontsize10">Of the funds appropriated for “Funds appropriated to the President, Appalachian regional development programs” in the Energy and Water Development Appropriation Act, 1981, $15,000,000 are deferred for obligation until October 1, 1981.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Nuclear Regulatory Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for the Nuclear Regulatory Commission in the Energy and Water Development Appropriation Act, 1981, $5,000,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Tennessee Valley Authority</heading> <appropriations level="small"> <heading>(rescission)</heading> <content class="firstIndent1 fontsize10">Of the funds appropriated for the payment to the Tennessee Valley Authority in Public Law 96–367 making appropriations for Energy<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1345">94 Stat. 1345</ref>.</p></sidenote> and Water Development and in Public Law 96–304 making supplemental<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/872">94 Stat. 872</ref>.</p></sidenote> appropriations for Energy and Water Development, $85,500,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>(deferral)</heading> <content class="firstIndent1 fontsize10">Of the funds appropriated for the payment to the Tennessee Valley Authority in Public Law 96–367 making appropriations for Energy and Water Development and in Public Law 96–304 making supplemental appropriations for Energy and Water Development, $42,000,000 are deferred for obligation until October 1, 1981.</content> </appropriations> </appropriations> <page identifier="/us/stat/95/34">95 STAT. 34</page> <appropriations level="intermediate"> <heading>Water Resources Council</heading> <appropriations level="small"> <heading>water resources planning</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">Of the funds provided for “Water resources planning” in Public <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1345">94 Stat. 1345</ref>.</p></sidenote>Law 96–367, $5,000,000 are rescinded.</p> <p class="indent0 firstIndent1 fontsize10">Not to exceed $2,288,000 of the unobligated balances of the Water Resources Council, as of the date of enactment of this Act, shall be reprogramed for grants to the States provided under the authority of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1962c">42 USC 1962c</ref>.</p></sidenote>title III of the Water Resources Planning Act (42 U.S.C. 1962 et seq.).</p> </content> </appropriations> </appropriations> </appropriations> </chapter> <chapter> <num value="V">CHAPTER V </num> <heading class="centered">MULTILATERAL ECONOMIC ASSISTANCE</heading> <appropriations level="intermediate"> <heading>Funds Appropriated to the President</heading> <subheading>International Financial Institutions</subheading> <appropriations level="small"> <heading>contribution to the international finance corporation</heading> <subheading>(rescission)</subheading> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> <content class="inline">Of the funds made available for this account by Public Law 96–536, $33,447,900 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>contribution to the international development association</heading> <content class="firstIndent1 fontsize10">For payment to the International Development Association by the Secretary of the Treasury, $500,000,000, to be available only upon the enactment of authorizing legislation, for the first installment of the United States contribution to the sixth replenishment, to remain available until expended: <proviso> <i>Provided</i>, That no such payment may be made while the United States Executive Director to the International Bank for Reconstruction and Development is compensated by the Bank at a rate in excess of the rate provided for an individual occupying a position at level IV of the Executive Schedule under section 5315 of title 5, United States Code, or while the alternate United States Executive Director to the Bank is compensated by the Bank at a rate in excess of the rate provided for an individual occupying a position at level V of the Executive Schedule under section 5316 of title 5, United States Code</proviso>.</content> </appropriations> <appropriations level="small"> <heading>contribution to the african development bank</heading> <content class="firstIndent1 fontsize10">For payment to the African Development Bank by the Secretary of the Treasury, $17,987,000, to be available only upon the enactment of authorizing legislation, for the United States share of the initial subscription to paid-in capital stock, to remain available until expended: <proviso> <i>Provided</i>, That no such payment may be made while the United States Executive Director to the African Development Bank is compensated by the Bank at a rate in excess of the rate provided for an individual occupying a position at level IV of the Executive Schedule under section 5315 of title 5, United States Code, or while the alternate United States Executive Director to the Bank is compensated by the Bank at a rate in excess of the rate provided for <page identifier="/us/stat/95/35">95 STAT. 35</page>an individual occupying a position at level V of the Executive Schedule under section 5316 of title 5, United States Code.</proviso> </content> </appropriations> <appropriations level="small"> <heading>limitation on callable capital subscription</heading> <content class="firstIndent1 fontsize10">The United States Governor of the African Development Bank may subscribe without fiscal year limitation to the callable capital portion of the United States share of such increase in capital stock in an amount not to exceed $53,960,035, contingent on the availability of authorizing legislation.</content> </appropriations> </appropriations> <appropriations level="major"> <heading>BILATERAL ECONOMIC ASSISTANCE</heading> <appropriations level="intermediate"> <heading>Funds Appropriated to the President</heading> <subheading>International Development Cooperation Agency</subheading> <appropriations level="small"> <heading>agency for international development</heading> <content class="firstIndent1 fontsize10">American Schools and Hospitals Abroad (Foreign Currency Program): For necessary expenses as authorized by section 612 of the Foreign Assistance Act of 1961 $14,300,000 in foreign currencies<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s2362">22 USC 2362</ref>.</p></sidenote> which the President determines to be excess to the normal requirements of the United States, which shall be available only for the American University in Cairo, Egypt, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>(rescission)</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">Sahel development program: Of the funds made available by Public Law 96–536 for this account, $1,500,000 provided for transfer to the<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> African Development Foundation are rescinded.</p> <p class="indent0 firstIndent1 fontsize10">Payment to the Foreign Service Retirement and Disability Fund: For payment to the “Foreign Service retirement and disability fund”, as authorized by the Foreign Service Act of 1980, $2,176,000.</p> <p class="indent0 firstIndent1 fontsize10">For an additional amount for “Operating expenses”, $10,170,000.</p> </content> </appropriations> <appropriations level="small"> <heading>inter-american foundation</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds made available for this account by Public Law 96–536,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> $138,000 are rescinded.</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>INDEPENDENT AGENCY</heading> <appropriations level="intermediate"> <heading>Action—International Programs</heading> <appropriations level="small"> <heading>peace corps</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Operating expenses, international programs”, $531,000.</content> </appropriations> </appropriations> </appropriations> <page identifier="/us/stat/95/36">95 STAT. 36</page> <appropriations level="major"> <heading>DEPARTMENT OF STATE</heading> <appropriations level="small"> <heading>international narcotics control</heading> <subheading>(rescission)</subheading> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> <content class="inline">Of the funds provided for this account in Public Law 96–536, $12,785,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>migration and refugee assistance</heading> <subheading>(rescission)</subheading> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> <content class="inline">Of the funds provided for this account in Public Law 96–536, $17,500,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Export-Import Bank of the United States</heading> <appropriations level="small"> <heading>limitation on program activity</heading> <content class="firstIndent1 fontsize10">During fiscal year 1981, and within the resources and authority available, gross obligations for the principal amount of direct loans shall not exceed $5,461,000,000. During fiscal year 1981, the total commitment to guarantee loans shall not exceed $8,059,000,000 of contingent liability for loan principal.</content> </appropriations> </appropriations> </chapter> <chapter> <num value="VI">CHAPTER VI </num> <heading class="centered">DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT</heading> <appropriations level="intermediate"> <heading>Housing Programs</heading> <appropriations level="small"> <heading>annual contributions for assisted housing</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the amounts of additional contract authority provided under this head in the Department of Housing and Urban Development-Independent <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3044">94 Stat. 3044</ref>.</p></sidenote>Agencies Appropriation Act, 1981, as authorized by section 5 of the United States Housing Act of 1937, $30,611,609 for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437c,">42 USC 1437c, 1437f</ref>.</p></sidenote>existing units under section 8, including section 8(j), of such Act, $197,102,148 for newly constructed and substantially rehabilitated units assisted under such Act, and $5,219,104,150 of budget authority, are rescinded.</content> </appropriations> <appropriations level="small"> <heading>(deferral)</heading> <content class="firstIndent1 fontsize10">Of the amounts of additional contract authority provided under this head in the Department of Housing and Urban Development-Independent Agencies Appropriation Act, 1981, as authorized by section 5 of the United States Housing Act of 1937, $15,000,000 for modernization of existing low-income housing projects and $300,000,000 of budget authority shall be withheld from obligation until October 1, 1981.</content> </appropriations> <appropriations level="small"> <heading>housing payments</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Housing payments”, $256,966,000.</content> </appropriations> <page identifier="/us/stat/95/37">95 STAT. 37</page> <appropriations level="small"> <heading>payments for operation of low-income housing projects</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Payments for operation of low-income housing projects”, $100,000,000, to remain available until September 30, 1982: <proviso> <i>Provided</i>, That the Secretary of Housing and Urban Development may accord priority in the distribution of these funds to meet the needs of public housing agencies which have experienced increased utility costs for reasons other than unjustified increases in consumption</proviso>.</content> </appropriations> <appropriations level="small"> <heading>low rent public housing—loans and other expenses</heading> <subheading>payments to the federal financing bank</subheading> <subheading>(including transfer of funds)</subheading> <content class="firstIndent1 fontsize10">Unobligated balances of authority in the amount of $1,060,422,303 shall be transferred from the amounts provided in the Department of Housing and Urban Development-Independent Agencies Appropriation Act, 1981, for section 5(c) of the United States Housing Act of<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3046">94 Stat. 3046</ref>.</p></sidenote> 1937, as amended (42 U.S.C. 1437(c)), and shall be available for contracts for periodic payments to the Federal Financing Bank, as authorized by section 16(b) of Federal Financing Bank Act of 1973 (12 U.S.C. 2294(b)), to offset the cost to the Bank of purchasing obligations of local public housing agencies issued for purposes of financing public housing projects as authorized under section 5(c); $1,060,422,303 shall be available until expended for liquidation of obligations incurred pursuant to these contracts.</content> </appropriations> <appropriations level="small"> <heading>congregate services program</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Housing and Urban Development-Independent Agencies Appropriation Act, 1981, $10,000,000 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3048">94 Stat. 3048</ref>.</p></sidenote> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Government National Mortgage Association</heading> <appropriations level="small"> <heading>guarantees of mortgage-backed securities</heading> <content class="firstIndent1 fontsize10">For additional commitments during fiscal year 1981 to issue guarantees of mortgage-backed securities, $11,000,000,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Solar Energy and Energy Conservation Bank</heading> <appropriations level="small"> <heading>assistance for solar and conservation improvements</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Housing and Urban Development-Independent Agencies Appropriation Act, 1981, $121,000,000 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3047">94 Stat. 3047</ref>.</p></sidenote> </content> </appropriations> </appropriations> <page identifier="/us/stat/95/38">95 STAT. 38</page> <appropriations level="intermediate"> <heading>Community Planning and Development</heading> <appropriations level="small"> <heading>comprehensive planning grants</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Any amounts not reserved from appropriations provided under this head in the Department of Housing and Urban Development-Independent <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3048">94 Stat. 3048</ref>.</p></sidenote>Agencies Appropriation Acts, 1981 and prior years, including any amounts becoming available from cancellation of prior year reservations, but excluding $19,000,000, are rescinded.</content> </appropriations> <appropriations level="small"> <heading>rehabilitation loan fund</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">All unreserved funds appropriated under this head in the Department of Housing and Urban Development-Independent Agencies <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3048">94 Stat. 3048</ref>.</p></sidenote>Appropriation Acts, 1981 and prior years, including any recoveries of prior reservations, but excluding necessary funds for operating costs and the capitalization of delinquent interest on delinquent or defaulted loans, are rescinded: <proviso> <i>Provided</i>, That the gross amounts administratively committed for the principal amounts of direct loans for fiscal year 1981 shall not exceed the amount of the appropriation remaining following the rescission herein, plus loan repayments and other income becoming available during the year, but excluding amounts becoming available from canceled prior year commitments</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Neighborhoods, Voluntary Associations and Consumer Protection</heading> <appropriations level="small"> <heading>housing counseling assistance</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Housing and Urban Development-Independent Agencies Appropriation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3049">94 Stat. 3049</ref>.</p></sidenote>Act, 1981, $3,000,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>neighborhood self-help development program</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">All unobligated funds provided under this head in the Department of Housing and Urban Development-Independent Agencies Appropriation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3049">94 Stat. 3049</ref>.</p></sidenote>Acts, 1981 and prior years, are rescinded. In addition, all recoveries of prior obligations are rescinded as they become available: Provided, That $501,500 of funds appropriated for Community Development Grants in the Department of Housing and Urban Development-Independent Agencies Appropriation Act, 1981, shall be available from the Secretary’s Discretionary Fund to fully fund the balance of the grant commitments made for the nine Neighborhood Self-Help Development projects approved after September 30, 1980, and before March 17, 1981.</content> </appropriations> </appropriations> <page identifier="/us/stat/95/39">95 STAT. 39</page> <appropriations level="intermediate"> <heading>Policy Development and Research</heading> <appropriations level="small"> <heading>research and technology</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Housing and Urban Development-Independent Agencies Appropriation Act, 1981, $5,000,000 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3049">94 Stat. 3049</ref>.</p></sidenote> </content> </appropriations> </appropriations> <appropriations level="major"> <heading>INDEPENDENT AGENCIES</heading> <appropriations level="intermediate"> <heading>Environmental Protection Agency</heading> <appropriations level="small"> <heading>research and development</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Housing and Urban Development-Independent Agencies Appropriation Act, 1981, $499,300 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3051">94 Stat. 3051</ref>.</p></sidenote> </content> </appropriations> <appropriations level="small"> <heading>abatement, control and compliance</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Housing and Urban Development-Independent Agencies Appropriation Act, 1981, $4,953,100 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3051">94 Stat. 3051</ref>.</p></sidenote> </content> </appropriations> <appropriations level="small"> <heading>payment to the hazardous substance response trust fund</heading> <content class="firstIndent1 fontsize10">For payment to the Hazardous Substance Response Trust Fund as authorized by Public Law 96–510, $9,000,000.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2767">94 Stat. 2767</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9601">42 USC 9601 note</ref>.</p></sidenote> </content> </appropriations> <appropriations level="small"> <heading>hazardous substance response trust fund</heading> <content class="firstIndent1 fontsize10">For necessary expenses to carry out the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, including<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2767">94 Stat. 2767</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9601">42 USC 9601 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2788">94 Stat. 2788</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9611">42 USC 9611</ref>.</p></sidenote> sections 111(c)(3), (c)(5), (c)(6), and (e)(4), $68,000,000, to be derived from the Hazardous Substance Response Trust Fund, to remain available until expended. Funds appropriated under this account may be allocated to other Federal agencies in accordance with section 111(a) of Public Law 96–510.</content> </appropriations> <appropriations level="small"> <heading>construction grants</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">Of the funds appropriated under this head, $880,000,000 in the Department of Housing and Urban Development-Independent Agencies Appropriation Act, 1980, and $756,000,000 in the Department of<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/93/777">93 Stat. 777</ref>.</p></sidenote> Housing and Urban Development-Independent Agencies Appropriation Act, 1981, are rescinded. The reduction in each appropriation<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3052">94 Stat. 3052</ref>.</p></sidenote> will be distributed among the States according to the allotment formula specified in section 205(c) of Public Law 92–500, as amended<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t33/s1285">33 USC 1285</ref>.</p></sidenote> by Public Law 95–217. Whenever a State’s share of the reduction from an appropriation, as determined by the formula, is greater than its unobligated balance for that appropriation, as determined by the <page identifier="/us/stat/95/40">95 STAT. 40</page>Administrator of the Environmental Protection Agency upon the date of enactment of this Act, the shortfall will be distributed according to the allotment formula among all the States which still have funds remaining from that appropriation. This process of distributing the shortfall will continue until the amount of the reduction has been allocated among the States.</p> <p class="indent0 firstIndent1 fontsize10">Of the funds appropriated under this head in the Public Works <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/90/1498">90 Stat. 1498</ref>.</p></sidenote>Employment Appropriation Act, 1977, $64,000,000 are rescinded.</p> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Executive Office of the President</heading> <appropriations level="small"> <heading>council on environmental quality and office of environmental quality</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Housing and Urban Development-Independent Agencies Appropriation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3052">94 Stat. 3052</ref>.</p></sidenote>Act, 1981, $708,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>office of science and technology policy</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Housing and Urban Development-Independent Agencies Appropriation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3052">94 Stat. 3052</ref>.</p></sidenote>Act, 1981, $595,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Emergency Management Agency</heading> <appropriations level="small"> <heading>funds appropriated to the president</heading> <subheading>disaster relief</subheading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Housing and Urban Development-Independent Agencies Appropriation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3053">94 Stat. 3053</ref>.</p></sidenote>Act, 1981, $8,000,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Aeronautics and Space Administration</heading> <appropriations level="small"> <heading>research and development</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Housing and Urban Development-Independent Agencies Appropriation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3054">94 Stat. 3054</ref>.</p></sidenote>Act, 1981, $4,500,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Consumer Cooperative Bank</heading> <appropriations level="small"> <heading>self-help development</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Housing and Urban Development-Independent Agencies Appropriation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3055">94 Stat. 3055</ref>.</p></sidenote>Act, 1981, $16,990,000 are rescinded: <i>Provided</i>, That, notwith-<page identifier="/us/stat/95/41">95 STAT. 41</page>standing any other provision of law, all interest deposited in the Office’s Account in the Bank pursuant to 12 U.S.C. 3043(c) shall be available to pay administrative and technical assistance expenses of the Office.</p> <p class="indent0 firstIndent1 fontsize10">During 1981, within the resources and authority available, gross obligations for the principal amount of direct loans shall not exceed $19,700,000.</p> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Science Foundation</heading> <appropriations level="small"> <heading>research and related activities</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Housing and Urban Development-Independent Agencies Appropriation Act, 1981, $46,000,000 are rescinded, and of the amounts<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3056">94 Stat. 3056</ref>.</p></sidenote> remaining for research and related activities under Public Law 96–526: (1) not more than $37,000,000 shall be available for scientific, technological, and international affairs; (2) not more than $83,000,000 shall be available for engineering; (3) not more than $18,053,000 shall be available for earthquake hazards mitigation; (4) not more than 1,240,000 shall be available for the establishment and operation of three university-based Innovation Centers; (5) not more than 2,800,000 shall be available for grants to two-year and four-year colleges for equipment and instrumentation costing $35,000 or less; (6) not more than $300,000 shall be available for small business innovation for projects to aid the handicapped; and (7) not more than 1,400,000 shall be available for special programs for women and minorities in science and technology. None of these funds shall be available for separately targeted programs for appropriate technology, science faculty improvement programs for two-year and four-year college faculty research participation, and research opportunity grants and visiting professorships for women.</content> </appropriations> <appropriations level="small"> <heading>science education activities</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Housing and Urban Development-Independent Agencies Appropriation Act, 1981, $10,000,000 are rescinded: <proviso> <i>Provided</i>, That of the<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3057">94 Stat. 3057</ref>.</p></sidenote> amounts remaining for science education activities under Public Law 96–526, not more than (1) $15,000,000 shall be available for women and minorities in science and technology activities and (2) $500,000 shall be available for science education programs related to appropriate technology</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Selective Service System</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Housing and Urban Development-Independent Agencies Appropriation Act, 1981, $1,940,000 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3057">94 Stat. 3057</ref>.</p></sidenote> </content> </appropriations> </appropriations> <page identifier="/us/stat/95/42">95 STAT. 42</page> <appropriations level="intermediate"> <heading>Veterans Administration</heading> <appropriations level="small"> <heading>compensation and pensions</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Compensation and pensions”, $990,000,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>readjustment benefits</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Readjustment benefits”, $467,500,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>veterans insurance and indemnities</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Veterans insurance and indemnities”, $3,555,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>medical care</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Medical care”, $79,967,000.</content> </appropriations> <appropriations level="small"> <heading>(disapproval of deferral)</heading> <content class="firstIndent1 fontsize10">The Congress disapproves the proposed deferral D81–95 relating to the Veterans Administration, Medical care, as set forth in the message of March 10, 1981, which was transmitted to the Congress by <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote>the President. This disapproval shall be effective upon the enactment into law of this bill.</content> </appropriations> <appropriations level="small"> <heading>medical care</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Housing and Urban Development-Independent Agencies Appropriations <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3059">94 Stat. 3059</ref>.</p></sidenote>Acts, 1981 and prior years, $25,789,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>medical and prosthetic research</heading> <subheading>(disapproval of deferral)</subheading> <content class="firstIndent1 fontsize10">The Congress disapproves the proposed deferral D81–96 relating to the Veterans Administration, Medical and prosthetic research, as set forth in the message of March 10, 1981, which was transmitted to the Congress by the President. This disapproval shall be effective upon <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote>the enactment into law of this bill.</content> </appropriations> <appropriations level="small"> <heading>medical administration and miscellaneous operating expenses</heading> <subheading>(disapproval of deferral)</subheading> <content class="firstIndent1 fontsize10">The Congress disapproves the proposed deferral D81–97 relating to the Veterans Administration, Medical administration and miscellaneous operating expenses, as set forth in the message of March 10, 1981, which was transmitted to the Congress by the President. This <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote>disapproval shall be effective upon the enactment into law of this bill.</content> </appropriations> <page identifier="/us/stat/95/43">95 STAT. 43</page> <appropriations level="small"> <heading>construction, major projects</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Housing and Urban Development-Independent Agencies Appropriation Acts, 1981 and prior years, $162,160,000 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3059">94 Stat. 3059</ref>.</p></sidenote> </content> </appropriations> <appropriations level="small"> <heading>(disapproval of deferral)</heading> <content class="firstIndent1 fontsize10">The Congress disapproves $85,965,000 of the proposed deferral D81–98 relating to the Veterans Administration, Construction, major projects, as set forth in the message of March 10, 1981, which was transmitted to the Congress by the President. This disapproval shall be effective upon the enactment into law of this bill and the amount of the proposed deferral disapproved herein shall be made available for obligation.</content> </appropriations> <appropriations level="small"> <heading>vocational rehabilitation revolving fund</heading> <content class="firstIndent1 fontsize10">To increase the “Vocational rehabilitation revolving fund” established by the Act of March 24, 1943, as amended (38 U.S.C. 1512), $1,250,000, to remain available until expended.</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>CORPORATIONS</heading> <appropriations level="intermediate"> <heading>Federal Home Loan Bank Board</heading> <appropriations level="small"> <heading>limitation on administrative and nonadministrative expenses, federal home loan bank board</heading> <content class="firstIndent1 fontsize10">The limitation on nonadministrative expenses is increased by $930,000.</content> </appropriations> </appropriations> </appropriations> </chapter> <chapter> <num value="VII">CHAPTER VII </num> <heading class="centered">DEPARTMENT OF THE INTERIOR</heading> <appropriations level="intermediate"> <heading>Bureau of Land Management</heading> <appropriations level="small"> <heading>management of lands and resources</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Management of lands and resources”, $55,200,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Water Research and Technology</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(rescission and deferral)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Interior and Related Agencies Appropriations Act, 1981 (Public Law 96–514)<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2959">94 Stat. 2959</ref>.</p></sidenote> $2,745,000 shall not become available for obligation until October 1, 1981, and shall remain available for obligation until September 30, 1983, and $5,900,000 are rescinded.</content> </appropriations> </appropriations> <page identifier="/us/stat/95/44">95 STAT. 44</page> <appropriations level="intermediate"> <heading>United States Fish and Wildlife Service</heading> <appropriations level="small"> <heading>resource management</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Resource management”, $2,000,000.</content> </appropriations> <appropriations level="small"> <heading>construction and anadromous fish</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of the Interior and Related Agencies Appropriations Act, 1981 (Public <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2961">94 Stat. 2961</ref>.</p></sidenote>Law 96–514), $2,500,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Park Service</heading> <appropriations level="small"> <heading>operation of the national park system</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Operation of the national park system”, $4,776,000 including $576,000 to complete construction of the Savage River Bridge at Denali National Park and Preserve, Alaska.</content> </appropriations> <appropriations level="small"> <heading>urban park and recreation fund</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of the Interior and Related Agencies Appropriations Act, 1981 (Public <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2960">94 Stat. 2960</ref>.</p></sidenote>Law 96–514), and previous Interior Department Appropriations Acts, $19,000,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>land and water conservation fund</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of the Interior and Related Agencies Appropriations Act, 1981 (Public <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2960">94 Stat. 2960</ref>.</p></sidenote>Law 96–514) and previous Interior Department Appropriations Acts, $90,000,000 are rescinded in the following amounts: $55,000,000 for payments to the States; $133,000 for the Bureau of Land Management; $4,918,000 for the Forest Service; $12,217,000 for the United States Fish and Wildlife Service; $14,782,000 for the National Park Service; and $2,950,000 for the Pinelands National Reserve: <proviso> <i>Provided</i>, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s460l–8">16 USC 460<i>l</i>–8</ref>.</p></sidenote>That notwithstanding the provisions of 16 U.S.C. 4601–8, the unobligated balances of the contingency reserve and funds appropriated and apportioned for the various States and Territories upon enactment of this Act shall be reallocated among the States and Territories so that each shall receive not less than seventy-five percent of the amount each would have received under the statutory allocation of the amount appropriated for payment to the States under this head in Public Law 96–514</proviso>.</content> </appropriations> <appropriations level="small"> <heading>historic preservation fund</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of the Interior and Related Agencies Appropriations Act, 1981 (Public <page identifier="/us/stat/95/45">95 STAT. 45</page>Law 96–514), and previous Department of the Interior Appropriations<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2960">94 Stat. 2960</ref>.</p></sidenote> Acts, $6,500,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>construction</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in Public Law 96–126,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/93/960">93 Stat. 960</ref>.</p></sidenote> making appropriations for the Department of the Interior and related agencies, 1980, $12,000,000 available from the Highway Trust Fund to liquidate contract authority provided under section 105(a)(8) of Public Law 94–280 for engineering services, roadway excavation,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/90/427">90 Stat. 427</ref>.</p></sidenote> and pilot boring for the Cumberland Gap Tunnel, as authorized by section 160 of Public Law 93–87 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/87/278">87 Stat. 278</ref>.</p></sidenote> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Geological Survey</heading> <appropriations level="small"> <heading>surveys, investigations, and research</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Surveys, investigations, and research”, $15,800,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Surface Mining Reclamation and Enforcement</heading> <appropriations level="small"> <heading>regulation and technology</heading> <subheading>(rescission and deferral)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of the Interior and Related Agencies Appropriations Act, 1981 (Public Law 96–514), $3,154,000 are rescinded and $5,800,000 shall not<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2966">94 Stat. 2966</ref>.</p></sidenote> become available for obligation until October 1, 1981, to remain available for obligation until September 30, 1982.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Bureau of Indian Affairs</heading> <appropriations level="small"> <heading>operation of indian programs</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Operation of Indian programs”, $7,350,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Territorial Affairs</heading> <appropriations level="small"> <heading>administration of territories</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Administration of territories”, $5,704,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Secretarial Offices</heading> <subheading>Office of the Solicitor</subheading> <appropriations level="small"> <heading>salaries and expenses</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses”, $62,000.</content> </appropriations> </appropriations> <page identifier="/us/stat/95/46">95 STAT. 46</page> <appropriations level="intermediate"> <heading>Office of the Secretary</heading> <appropriations level="small"> <heading>inspector general</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Inspector General”, $200,000.</content> </appropriations> <appropriations level="small"> <heading>youth conservation corps</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of the Interior and Related Agencies Appropriations Act, 1981 (Public <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2970">94 Stat. 2970</ref>.</p></sidenote>Law 96–514), $34,000,000 are rescinded: <proviso> <i>Provided</i>, That notwithstanding provisions of 16 U.S.C 1704(d) and 1706 the unrescinded balance of the amount appropriated under this head in Public Law 96–514 shall be allocated as follows: $18,000,000 for the purposes of 16 U.S.C 1704; $4,000,000 to the Secretary of the Interior; and $4,000,000 to the Secretary of Agriculture</proviso>.</content> </appropriations> <appropriations level="small"> <heading>rural water treatment and distribution system</heading> <subheading>(deferral)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of the Interior and Related Agencies Appropriations Act, 1981 (Public <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2970">94 Stat. 2970</ref>.</p></sidenote>Law 96–514), $1,900,000 shall not become available for obligation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1175">94 Stat. 1175</ref>.</p></sidenote>until the conditions of Section 9(b) of Public Law 96–355 regarding deauthorization of the Oahe unit have been met.</content> </appropriations> </appropriations> <appropriations level="major"> <heading>RELATED AGENCIES</heading> <subheading>DEPARTMENT OF AGRICULTURE</subheading> <appropriations level="intermediate"> <heading>Forest Service</heading> <appropriations level="small"> <heading>national forest system</heading> <content class="firstIndent1 fontsize10">For an additioned amount for “National forest system”, $100,000,000.</content> </appropriations> <appropriations level="small"> <heading>construction and land acquisition</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Construction and land acquisition”, $62,542,000, to remain available until expended for construction of forest development roads and trails by the Forest Service: <proviso> <i>Provided</i>, That section 14(i) of the National Forest Management Act of 1976 <sidenote><p class="indent0 firstIndent0 fontsize8">Waiver.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s472a">16 USC 472a</ref>.</p></sidenote>Public Law 94–588) may be waived at the discretion of the Secretary if he determines that such action will facilitate the salvage of timber damaged by the eruption of Mount Saint Helens</proviso>: <proviso> <i>Provided further</i>, That $22,607,000 appropriated in the Department of the Interior and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2973">94 Stat. 2973</ref>.</p></sidenote>Related Agencies Appropriations Act, 1981 (Public Law 96–514), for timber management and any related activities, including roads, on the Tongass National Forest, Alaska, that are replaced by funds <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s539d">16 USC 539d</ref>.</p></sidenote>provided under the authority of section 705(a) of Public Law 96–487 which fund is hereby established at not less than $25,000,000 for fiscal year 1981), are transferred to this account, to remain available until expended, to facilitate timber salvage activities in the Mount Saint Helens volcano area of the Gifford Pinchot National Forest as follows: construction of forest development roads and trails by the <page identifier="/us/stat/95/47">95 STAT. 47</page>Forest Service $18,812,000; land line location $300,000; timber sales preparation $800,000; and road maintenance $2,695,000</proviso>.</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF ENERGY</heading> <appropriations level="small"> <heading>alternative fuels production</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided under this head in Public Law 96–304,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/880">94 Stat. 880</ref>.</p></sidenote> 300,000,000 provided for support of preliminary alternative fuels commercialization activities are rescinded; and of the funds provided under this head in Public Law 96–126, $875,000,000 for the Solar and<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/93/97">93 Stat. 97</ref>0.</p></sidenote> Conservation Reserve are rescinded.</content> </appropriations> <appropriations level="small"> <heading>fossil energy research and development</heading> <subheading>(rescission and deferral)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Interior and Related Agencies Appropriations Act, 1981 (Public Law 96–514), $53,036,000 are rescinded and $9,000,000 shall not become<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2975">94 Stat. 2975</ref>.</p></sidenote> available for obligation until October 1, 1981.</content> </appropriations> <appropriations level="small"> <heading>fossil energy construction</heading> <subheading>(rescission and deferral)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Interior and Related Agencies Appropriations Act, 1981 (Public Law 96–514), $89,400,000 are rescinded and $235,000,000 shall not become<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2975">94 Stat. 2975</ref>.</p></sidenote> available for obligation until October 1, 1981.</content> </appropriations> <appropriations level="small"> <heading>energy production, demonstration, and distribution</heading> <subheading>(rescission and deferral)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Interior and Related Agencies Appropriations Act, 1981 (Public Law 96–514), and in the Supplemental Appropriations Act, 1978 (Public<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2975">94 Stat. 2975</ref>.</p></sidenote> Law 95–240), $400,000 shall not become available for obligation until<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/92/107">92 Stat. 107</ref>.</p></sidenote> October 1, 1981, and $10,348,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>energy conservation</heading> <subheading>(rescission and deferral)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Interior and Related Agencies Appropriations Act, 1981 (Public Law 96–514), $67,762,000 shall not become available for obligation until<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2975">94 Stat. 2975</ref>.</p></sidenote> October 1, 1981, and $153,180,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>economic regulation</heading> <subheading>(rescission and deferral)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of Interior and Related Agencies Appropriations Act, 1981 (Public Law 96–514), $17,167,000 are rescinded and $38,200,000 shall not become <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2976">94 Stat. 2976</ref>.</p></sidenote> <page identifier="/us/stat/95/48">95 STAT. 48</page>available for obligation until October 1, 1981, and shall remain available for obligation until September 30, 1982.</content> </appropriations> <appropriations level="small"> <heading>strategic petroleum reserve</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Strategic petroleum reserve”, $1,305,000,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>energy information administration</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Interior and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2976">94 Stat. 2976</ref>.</p></sidenote>Related Agencies Appropriations Act, 1981 (Public Law 96–514) $13,700,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF THE TREASURY</heading> <appropriations level="small"> <heading>energy security reserve</heading> <subheading>(rescission)</subheading> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5915">42 USC 5915 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/881">94 Stat. 881</ref>.</p></sidenote> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Supplemental Appropriations and Rescissions Act, 1980 (Public Law 96–304) to the Secretary of Energy to carry out the provisions of title II of the Energy Security Act, Public Law 96–294, $250,600,000 for the purposes of subtitle A and $218,900,000 for the purposes of subtitle B are rescinded.</content> </appropriations> <appropriations level="small"> <heading>(transfer)</heading> <content class="firstIndent1 fontsize10">Funds not to exceed $5,310,000,000 to be derived by transfer of the balance of the amounts not committed or not conditionally committed <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/857">94 Stat. 857</ref>.</p></sidenote>which were appropriated by Public Law 96–304 and Public Law <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/93/954">93 Stat. 954</ref>.</p></sidenote>96–126 from the Energy Security Reserve to the Department of Energy shall be available to carry out the provisions of title I of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8701">42 USC 8701</ref>.</p></sidenote>Energy Security Act, Public Law 96–294 only upon a Presidential determination that the Synthetic Fuels Corporation is fully operational.</content> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF HEALTH AND HUMAN SERVICES</heading> <appropriations level="intermediate"> <heading>Health Services Administration</heading> <appropriations level="small"> <heading>indian health services</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Indian health services”, $120,000.</content> </appropriations> <appropriations level="small"> <heading>indian health facilities</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Indian health facilities”, $2,500,000, to remain available until expended, for site reviews, water investigations, and preliminary engineering and design of sanitation facilities for 2840 Indian housing units.</content> </appropriations> <page identifier="/us/stat/95/49">95 STAT. 49</page> <appropriations level="small"> <heading>(rescission)</heading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Interior and Related Agencies Appropriations Act, 1981 (Public Law 96–514),<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2978">94 Stat. 2978</ref>.</p></sidenote> $3,916,000 are rescinded.</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>SMITHSONIAN INSTITUTION</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses”, $200,000 to remain available for obligation until September 30, 1982.</content> </appropriations> </appropriations> <appropriations level="major"> <heading>FEDERAL INSPECTOR FOR THE ALASKA GAS PIPELINE</heading> <appropriations level="small"> <heading>permitting and enforcement</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Interior and Related Agencies Appropriations Act, 1981 (Public Law 96–514),<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2983">94 Stat. 2983</ref>.</p></sidenote> 445,000 are rescinded.</content> </appropriations> </appropriations> </chapter> <chapter> <num value="VIII">CHAPTER VIII </num> <heading class="centered">DEPARTMENT OF LABOR</heading> <appropriations level="intermediate"> <heading>Employment and Training Administration</heading> <appropriations level="small"> <heading>employment and training assistance</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Employment and training assistance” for fiscal year 1981 in Public Law 96–536, as amended, $82,500,000 are<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> rescinded: <proviso> <i>Provided</i>, That notwithstanding any other provision of law, $696,000,000 shall be available for the Youth Employment and Training Program authorized under title IV, part A, subpart 3, of the Comprehensive Employment and Training Act</proviso>: <proviso> <i>Provided further</i>,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s907">29 USC 907</ref>.</p></sidenote> That notwithstanding any other provision of law, $70,136,000 shall be available for title II, part A, section 202(e), of the Comprehensive Employment and Training Act</proviso>.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s842">29 USC 842</ref>.</p></sidenote> </content> </appropriations> <appropriations level="small"> <heading>temporary employment assistance</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds made available under this head in Public Law 96–536, as amended, and in previous years, any unobligated balances remaining<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> available as of September 30, 1981, are rescinded: <proviso> <i>Provided</i>, That fiscal year 1981 allocations made pursuant to section 604 of Public Law 95–524 shall be reduced in the amount of $234,475,000</proviso>.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s964">29 USC 964</ref>.</p></sidenote> </content> </appropriations> </appropriations> <page identifier="/us/stat/95/50">95 STAT. 50</page> <appropriations level="intermediate"> <heading>Labor-Management Services Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Salaries and expenses” for fiscal year <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>1981 in Public Law 96–536, as amended, $570,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Employment Standards Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Salaries and expenses” for fiscal year <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>1981 in Public Law 96–536, as amended, $406,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>black lung disability trust fund</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Black lung disability trust fund”, for transfer to Employment Standards Administration, Salaries and expenses, $3,700,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Occupational Safety and Health Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Salaries and expenses” for fiscal year <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>1981 in Public Law 96–536, as amended, $920,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Mine Safety and Health Administration</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Salaries and expenses” for fiscal year <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>1981 in Public Law 96–536, as amended, $660,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Bureau of Labor Statistics</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Salaries and expenses” for fiscal year <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>1981 in Public Law 96–536, as amended, $160,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Departmental Management</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for "Salaries and espouses" for fiscal year <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>1981 in Public Law 96–536, as amended, $300,000 are rescinded.</content> </appropriations> </appropriations> <page identifier="/us/stat/95/51">95 STAT. 51</page> <appropriations level="major"> <heading>DEPARTMENT OF HEALTH AND HUMAN SERVICES</heading> <appropriations level="intermediate"> <heading>Health Services Administration</heading> <appropriations level="small"> <heading>health services</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Health services”, for fiscal year 1981 in Public Law 96–536, as amended, $49,776,000 are rescinded: <proviso> <i>Provided</i>,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> That not more than $128,399,000 shall be available under this head for operation of Public Health Service hospitals and clinics</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Centers for Disease Control</heading> <appropriations level="small"> <heading>preventive health services</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Preventive health services”, $2,000,000, to remain available until expended: <proviso> <i>Provided</i>, That these funds are to be derived from unobligated balances provided under Public Law 94–266 for National influenza immunization</proviso>.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/90/363">90 Stat. 363</ref>.</p></sidenote> </content> </appropriations> <appropriations level="small"> <heading>(rescission)</heading> <content class="firstIndent1 fontsize10">Of the funds provided for “Preventive health services” for fiscal year 1981 in Public Law 96–536, as amended, $44,981,000 are<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> rescinded; and of the funds provided under this heading in Public Law 94–266, $9,400,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Institutes of Health</heading> <appropriations level="small"> <heading>national cancer institute</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “National Cancer Institute” for fiscal year 1981 in Public Law 96–536, as amended, $10,785,000 are<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> rescinded.</content> </appropriations> <appropriations level="small"> <heading>national heart, lung, and blood institute</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “National Heart, Lung, and Blood Institute” for fiscal year 1981 in Public Law 96–536, as amended,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> $9,950,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>national institute of arthritis, metabolism, and digestive diseases</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “National Institute of Arthritis, Metabolism, and Digestive Diseases” for fiscal year 1981 in Public Law 96–536, as amended, $2,113,000 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> </content> </appropriations> <page identifier="/us/stat/95/52">95 STAT. 52</page> <appropriations level="small"> <heading>national institute of neurological and communicative disorders and stroke</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “National Institute of Neurological and Communicative Disorders and Stroke” for fiscal year 1981 in Public <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>Law 96–536, as amended, $997,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>national institute of general medical sciences</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “National Institute of General Medical <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>Sciences” for fiscal year 1981 in Public Law 96–536, as amended, $1,571,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>national institute of child health and human development</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “National Institute of Child Health and Human Development” for fiscal year 1981 in Public Law 96–536, as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>amended, $2,694,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>national eye institute</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “National Eye Institute” for fiscal year <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>1981 in Public Law 96–536, as amended, $2,137,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>national institute of environmental health sciences</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “National Institute of Environmental Health Sciences” for fiscal year 1981 in Public Law 96–536, as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>amended, $3,630,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>national institute on aging</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “National Institute on Aging” for fiscal <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>year 1981 in Public Law 96–536, as amended, $377,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>research resources</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Research resources” for fiscal year 1981 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>in Public Law 96–536, as amended, $8,623,000 are rescinded.</content> </appropriations> </appropriations> <page identifier="/us/stat/95/53">95 STAT. 53</page> <appropriations level="intermediate"> <heading>Alcohol, Drug Abuse, and Mental Health Administration</heading> <appropriations level="small"> <heading>alcohol, drug abuse, and mental health</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Alcohol, drug abuse, and mental health” for fiscal year 1981 in Public Law 96–536, as amended, $112,244,000<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> are rescinded.</content> </appropriations> <appropriations level="small"> <heading>saint elizabeths hospital, construction and renovation</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Saint Elizabeths Hospital, construction and renovation” for fiscal year 1981 in Public Law 96–536, as amended, $1,500,000 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Health Resources Administration</heading> <appropriations level="small"> <heading>health resources</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Health resources” for fiscal year 1981 in Public Law 96–536, as amended, $158,189,000 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Assistant Secretary for Health</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses”, $40,000,000; such sums may be transferred to other appropriations of the Public Health Service to pay costs associated with the reduction or termination of various programs of the Service.</content> </appropriations> <appropriations level="small"> <heading>(rescission)</heading> <content class="firstIndent1 fontsize10">Of the funds provided for “Salaries and expenses” for fiscal year 1981 in Public Law 96–536, as amended, $38,270,000 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Health Care Financing Administration</heading> <appropriations level="small"> <heading>payments to health care trust funds</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Payments to health care trust funds” for fiscal year 1981 in Public Law 96–536, as amended, $6,520,000 are<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> rescinded.</content> </appropriations> <appropriations level="small"> <heading>program management</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Program management” for fiscal year 1981 in Public Law 96–536, as amended, $7,494,000 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> Further, the amount to be transferred to this appropriation as authorized by section 201(g)(1) of the Social Security Act, from the<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s401">42 USC 401</ref>.</p></sidenote> <page identifier="/us/stat/95/54">95 STAT. 54</page>Federal Hospital Insurance and the Federal Supplementary Medical Insurance Trust Funds referred to therein, is reduced by $16,982,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Social Security Administration</heading> <appropriations level="small"> <heading>limitation on administrative expenses</heading> <content class="firstIndent1 fontsize10">The amount available to process workloads not anticipated in the budget estimates and to meet mandatory increases in costs of agencies or organizations with which agreements have been made to participate in the administration of titles XVI and XVIII and section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1381,">42 USC 1381, 1395, 421</ref>.</p></sidenote>221 of the Social Security Act, and after maximum absorption of such costs within the remainder of the existing limitation has been achieved, is increased to $80,000,000.</content> </appropriations> <appropriations level="small"> <heading>low income energy assistance</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Low income energy assistance” for fiscal <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>year 1981 in Public Law 96–536, as amended, $500,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>refugee assistance</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Refugee assistance” for fiscal year 1981 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>in Public Law 96–536, as amended, $41,805,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>cuban and haitian entrants reception and processing</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Cuban and Haitian entrants reception and processing” for fiscal year 1981 in Public Law 96–536, as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>amended, $10,000,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>cuban and haitian entrants domestic assistance</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Cuban and Haitian entrants domestic assistance”, $6,000,000, to remain available until September 30, 1982, for education expenses pursuant to section 501(a) of the Refugee <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote>Education Assistance Act of 1980: <proviso> <i>Provided</i>, That no funds shall be provided to any school district with fewer than 10,000 eligible students</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Assistant Secretary for Human Development Services</heading> <appropriations level="small"> <heading>grants to states for social and child welfare services</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Grants to States for social and child welfare services” for fiscal year 1981, $5,000,000 to carry out activities <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s670">42 USC 670</ref>.</p></sidenote>authorized by section 470 of the Social Security Act.</content> </appropriations> <page identifier="/us/stat/95/55">95 STAT. 55</page> <appropriations level="small"> <heading>human development services</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Human development services” for fiscal year 1981 in Public Law 96–536, as amended, $13,500,000 are<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Departmental Management</heading> <appropriations level="small"> <heading>policy research</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Policy research” for fiscal year 1981 in Public Law 96–536, as amended, $2,500,000 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> </content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF EDUCATION</heading> <appropriations level="small"> <heading>elementary and secondary education</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided under this head in Public Law 96–536, as amended, $10,455,000 of the amount provided for title I, parts A and<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> B, $25,270,000 of the amount provided for title IV, part C, $8,925,000 of the amount provided for title V, part B, and $17,496,000 of the amount provided for title VII of the Elementary and Secondary Education Act, and $500,000 provided for sections 1524 and 1525 of<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2711,">20 USC 2711, 2761, 3111, 3161, 3221</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/92/2379">92 Stat. 2379</ref>.</p></sidenote> the Education Amendments of 1978 are rescinded: <proviso> <i>Provided</i>, That of the amount remaining for title I, parts A and B of the Elementary and Secondary Education Act, $100,000,000 shall be for the purpose of section 117, $266,400,000 shall be for the purposes of subpart 1 of such<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2722">20 USC 2722</ref>.</p></sidenote> part B, $152,625,000 shall be for the purposes of subpart 2 of such part B, and $33,975,000 shall be for the purposes of subpart 3 of such part B<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2771,">20 USC 2771, 2781</ref>.</p></sidenote> and any reductions required thereby shall be proportionate among the States</proviso>: <proviso> <i>Provided further</i>, That notwithstanding the provision of sections 404(a)(9) and 523(c), none of the funds appropriated for title<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3084,">20 USC 3084, 3163</ref>.</p></sidenote> IV, part C of the Elementary and Secondary Education Act may be expended for the purposes of title V, part B of such Act</proviso>: <proviso> <i>Provided further</i>, That any reductions required in title IV, part C and title V, part B, of the Elementary and Secondary Education Act shall be proportionate among the States</proviso>.</content> </appropriations> <appropriations level="small"> <heading>school assistance in federally affected areas</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “School assistance in Federally affected areas” for fiscal year 1981 in Public Law 96–536, as amended,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> $33,250,000 are rescinded: <proviso> <i>Provided</i>, That the amounts paid with respect to entitlements under sections 2 and 3 shall be limited to 95 per centum of the amounts otherwise payable under those sections for fiscal year 1981</proviso>.</content> </appropriations> <page identifier="/us/stat/95/56">95 STAT. 56</page> <appropriations level="small"> <heading>equal educational opportunities</heading> <subheading>(rescission)</subheading> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2000c">42 USC 2000c</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1601">20 USC 1601 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3341">20 USC 3341</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> <content class="firstIndent1 fontsize10">Of the funds provided for title IV of the Civil Rights Act of 1964, the Emergency School Aid Act, and title IX, part C of the Elementary and Secondary Education Act of 1965, for fiscal year 1981 in Public Law 96–536, as amended, $97,563,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>libraries and learning resources</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Libraries and learning resources” for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>fiscal year 1981 in Public Law 96–536, as amended, $10,000,000 of the amount provided for title IV, part B of the Elementary and Secondary <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3101">20 USC 3101</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1022">20 USC 1022</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1031">20 USC 1031</ref>.</p></sidenote>Education Act, $2,000,000 of the amount provided for title II, part A of the Higher Education Act, and $250,000 of the amount provided for title II, part B of the Higher Education Act are rescinded, and the remaining funds provided for fiscal year 1981 may be expended without regard to the provisions of section 402(a)(2)(A)(i) of title IV, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3082">20 USC 3082</ref>.</p></sidenote>part A of the Elementary and Secondary Education Act.</content> </appropriations> <appropriations level="small"> <heading>education for the handicapped</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Education for the handicapped” for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>fiscal year 1981 in Public Law 96–536, as amended, $76,819,000 are rescinded: <proviso> <i>Provided</i>, That $874,500,000 for section 611 and $25,000,000 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1411,">20 USC 1411, 1419</ref>.</p></sidenote>for section 619 of the Education of the Handicapped Act shall become available for obligation on July 1, 1981, and shall remain available until September 30, 1982</proviso>.</content> </appropriations> <appropriations level="small"> <heading>rehabilitation services and handicapped research</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Rehabilitation services and handicapped <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>research” for fiscal year 1981 in Public Law 96–536, as amended, $12,126,000 are rescinded: <proviso> <i>Provided</i>, That notwithstanding other provisions of law, the appropriation for section 112 of the Rehabilitation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s732">29 USC 732</ref>.</p></sidenote>Act of 1973 shall be $2,800,000</proviso>: <proviso> <i>Provided further</i>, That $650,000 provided under this head in Public Law 96–536, as amended, for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s750">29 USC 750</ref>.</p></sidenote>carrying out section 130 of the Rehabilitation Act of 1973 shall be made available to the Navajo Tribal Council</proviso>.</content> </appropriations> <appropriations level="small"> <heading>vocational and adult education</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Vocational and adult education” for the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>fiscal year 1981 in Public Law 96–536, as amended, $98,442,000 of the amount available for the purpose of carrying out the Vocational <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2301">20 USC 2301 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1201">20 USC 1201 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2601">20 USC 2601 note</ref>.</p></sidenote>Education Act of 1963, as amended, $20,000,000 of the amount available for the purpose of carrying out the Adult Education Act, $5,000,000 of the amount available for the purpose of carrying out the Career Incentive Act, $6,862,000 of the amount available for the purpose of carrying out title VIII, section 804 of the Elementary and <page identifier="/us/stat/95/57">95 STAT. 57</page>Secondary Education Act and $2,261,000 of the amount available for<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3284">20 USC 3284</ref>.</p></sidenote> the purpose of carrying out title III, part E of the Elementary and Secondary Education Act are rescinded: <proviso> <i>Provided</i>, That not to exceed<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2981">20 USC 2981</ref>.</p></sidenote> $93,323,000 shall be for carrying out part A, subpart 3 of the Vocational Education Act</proviso>: <proviso> <i>Provided further</i>, That not to exceed<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2350">20 USC 2350</ref>.</p></sidenote> $7,477,000 shall be for carrying out part B, subpart 2 of the Vocational Education Act</proviso>: <proviso> <i>Provided further</i>, That notwithstanding the<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2401">20 USC 2401</ref>.</p></sidenote> provisions of subpart 1, section 103, $2,243,100 shall be made available for the National Occupational Information Coordinating Committee</proviso>: <proviso> <i>Provided further</i>, That the $3,138,000 remaining for title VIII of the Elementary and Secondary Education Act shall be used for the purpose of carrying out sections 809, 810, and 812 of the Act</proviso>.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3289,">20 USC 3289, 3290, 3292</ref>.</p></sidenote> </content> </appropriations> <appropriations level="small"> <heading>student financial assistance</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Student financial assistance” to carry out title IV, part A, subpart 1 of the Higher Education Act,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1070">20 USC 1070</ref>.</p></sidenote> $445,000,000, which shall remain available until September 30, 1982: <proviso> <i>Provided</i>, That no funds provided herein or under Public Law 96–86 or Public Law 96–536 to carry out subpart 1 of part A of the Higher<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/93/656">93 Stat. 656</ref>;</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1001">20 USC 1001</ref>.</p></sidenote> Education Act shall be reserved or paid for administrative expenses</proviso>: <proviso> <i>Provided further</i>, That with funds appropriated herein and in the 1981 Continuing Resolution, Public Law 96–536, as amended, eligibility for a Pell grant in academic year 1981–82 shall be based on a maximum grant of $1,750, notwithstanding section 411(a)(2)(A)(i)(I) of the Higher Education Act</proviso>: <proviso> <i>Provided further</i>, That notwithstanding<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1070a">20 USC 1070a</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1070a">20 USC 1070a note</ref>.</p></sidenote> section 411(b)(3)(B)(i) each Pell grant be reduced by $80 after taking the cost of attendance limitation of section 411(a)(2)(B)(i) into account</proviso>: <proviso> <i>Provided further</i>, That the cost of attendance used for calculating eligibility for and amount of Pell grants shall be established by the Secretary of Education</proviso>: <proviso> <i>Provided further</i>, That notwithstanding any other provisions of law, of the sums appropriated pursuant to section 4610))(1) of the Higher Education Act of 1965 for purposes of the fiscal<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1087aa">20 USC 1087aa</ref>.</p></sidenote> year ending September 30, 1981, the Secretary shall apportion to each State an amount that bears the same ratio to the total amount of such sums as the amount received by the State under section 462(a)(1) of the Act in fiscal year 1980 bears to the sum of such amounts for all<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1087bb">20 USC 1087bb</ref>.</p></sidenote> the States</proviso>.</content> </appropriations> <appropriations level="small"> <heading>student loan insurance</heading> <content class="firstIndent1 fontsize10">No amounts provided herein or under Public Law 96–86 or Public Law 96–536 shall be reserved for, or paid to, educational institutions to meet administrative expenses.</content> </appropriations> <appropriations level="small"> <heading>higher and continuing education</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the amount made available under this head in Public Law 96–304 for fiscal year 1981, $10,000,000 available for title VII, part A<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/887">94 Stat. 887</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1132a">20 USC 1132a</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> of the Higher Education Act are rescinded, and of the amount made available under this head in Public Law 96–536, as amended, for fiscal year 1981, $12,800,000 of the amount provided for title I, part B, 3,000,000 of the amount provided for section 417, $6,020,000 of the amount provided for section 420, and $2,150,000 of the amount provided for title IX, part B of the Higher Education Act are<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1011,">20 USC 1011, 1070d, 1070e, 1134d</ref>.</p></sidenote> rescinded: <proviso> <i>Provided</i>, That the funds appropriated in Public Law <page identifier="/us/stat/95/58">95 STAT. 58</page> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>96–536, as amended, for title IX, part B are available notwithstanding <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1134d,">20 USC 1134d, 1134e</ref>.</p></sidenote>the provisions of section 922(b)(2) of the Higher Education Act</proviso>: <proviso> <i>Provided further</i>, That $2,200,000 of the amount made available in Public Law 96–536 for title I, part B of the Higher Education Act is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1015">20 USC 1015</ref>.</p></sidenote>available only for section 115(d)</proviso>.</content> </appropriations> <appropriations level="small"> <heading>higher education facilities loan and insurance fund</heading> <subheading>(deferral)</subheading> <content class="firstIndent1 fontsize10">Deferral D81–82, transmitted in the Special Message of March 10, 1981 (House Document 97–28), is hereby disapproved. Funds proposed to be deferred in deferral D81–82 shall be obligated and expended.</content> </appropriations> <appropriations level="small"> <heading>college housing loans</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for participation sales insufficiencies for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>fiscal year 1981 in Public Law 96–536, as amended, $14,271,000 are rescinded. Payments of insufficiencies in fiscal year 1981 as may be required by the Government National Mortgage Association, as trustee, on account of outstanding beneficial interests or participations issued pursuant to section 302(c) of the Federal National Mortgage Association Charter Act, as amended (12 U.S.C. 1717) shall be made from the fund established pursuant to title IV of the Housing Act of 1950, as amended (12 U.S.C. 1749) using loan repayments and other income available during fiscal year 1981.</content> </appropriations> <appropriations level="small"> <heading>school improvement</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “School improvement” in Public Law <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>96–536, as amended, for fiscal year 1981, $37,843,000 of the amount appropriated for title II, title III (part A, part B, part C, and part L), and title IX, parts A and E of the Elementary and Secondary <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2881,">20 USC 2881, 2941, 2951, 2961, 3051, 3311, 3361</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s873">29 USC 873</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1101,">20 USC 1101, 1119, 1119a</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s1001">21 USC 1001 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2929">42 USC 2929</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1862">42 USC 1862</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1231a">20 USC 1231a</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2881">20 USC 2881</ref>.</p></sidenote>Education Act, title III, section 303(c)(2) of the Comprehensive Employment and Training Act of 1973, as amended, and title V (part A and part B), section 532 of the Higher Education Act, the Alcohol and Drug Abuse Education Act, part B of the Headstart-Follow Through Act, section 3(a)(1) of the National Science Foundation Act of 1950, and section 422(a) of the General Education Provisions Act, as amended, are rescinded: <proviso> <i>Provided</i>, That $17,225,000 shall be made available under title II, part A of the Elementary and Secondary Education Act</proviso>.</content> </appropriations> <appropriations level="small"> <heading>educational statistics</heading> <subheading>(rescission)</subheading> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> <content class="inline">Of the funds provided in Public Law 96–536, as amended, to carry <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1221e–1">20 USC 1221e–1</ref>.</p></sidenote>out section 406 of the General Education Provisions Act, $1,000,000 are rescinded.</content> </appropriations> <page identifier="/us/stat/95/59">95 STAT. 59</page> <appropriations level="small"> <heading>research and related activities</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Research and related activities” for fiscal year 1981 in Public Law 96–536, as amended, $8,500,000 of the<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> amounts appropriated for section 405 of the General Education Provisions Act are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1221e">20 USC 1221e</ref>.</p></sidenote> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Departmental Management</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head for fiscal year 1981 in Public Law 96–536, as amended, $500,000 for the purposes of part D of<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> the General Education Provisions Act are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1233">20 USC 1233</ref>.</p></sidenote> </content> </appropriations> </appropriations> <appropriations level="major"> <heading>RELATED AGENCIES</heading> <appropriations level="intermediate"> <heading>Action</heading> <appropriations level="small"> <heading>operating expenses, domestic programs</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided under this heading for Action for fiscal year 1981 in Public Law 96–536, as amended, $5,187,000 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Community Services Administration</heading> <appropriations level="small"> <heading>community services program</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Community services program” for fiscal year 1981 in Public Law 96–536, as amended, $16,915,000 are<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> rescinded.</content> </appropriations> <appropriations level="small"> <heading>community development credit unions revolving fund</heading> <content class="firstIndent1 fontsize10">During 1981 no obligations for direct loans shall be incurred.</content> </appropriations> <appropriations level="small"> <heading>rural development loan fund</heading> <content class="firstIndent1 fontsize10">During 1981 and within the resources and authority available, gross obligations for the amount of direct loans shall not exceed $5,500,000. During 1981, no commitments to guarantee loans shall be made.</content> </appropriations> </appropriations> <page identifier="/us/stat/95/60">95 STAT. 60</page> <appropriations level="intermediate"> <heading>Corporation for Public Broadcasting</heading> <appropriations level="small"> <heading>public broadcasting fund</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “The Corporation for Public Broadcasting” <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>for fiscal year 1983 in Public Law 96–536, as amended, 35,000,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Mine Safety and Health Review Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for the Federal Mine Safety and Health Review Commission, “Salaries and expenses” for fiscal year 1981 in <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>Public Law 96–536, as amended, $273,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Commission on Student Financial Assistance</heading> <content class="firstIndent1 fontsize10">For necessary expenses to carry out section 491 of the Higher <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1098">20 USC 1098</ref>.</p></sidenote>Education Act, $250,000.</content> </appropriations> <appropriations level="intermediate"> <heading>National Labor Relations Board</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for “Salaries and expenses” for fiscal year <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>1981 in Public Law 96–536, as amended, $1,060,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Occupational Safety and Health Review Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for the Occupational Safety and Health Review Commission, “Salaries and expenses” for fiscal year 1981 in <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>Public Law 96–536, as amended, $54,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Soldiers’ and Airmen’s Home</heading> <appropriations level="small"> <heading>operation and maintenance</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Operation and maintenance”, $755,000, to be paid from the Soldiers and Airmen’s Home permanent fund.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>General Provision</heading> <content class="firstIndent1 fontsize10">Of the total amounts appropriated for the Department of Health and Human Services for fiscal year 1981, $13,500,000 are hereby rescinded from funds available for travel, consultants, consultant services, training, and furniture and equipment purchases.</content> </appropriations> </appropriations> </chapter> <page identifier="/us/stat/95/61">95 STAT. 61</page> <chapter> <num value="IX">CHAPTER IX </num> <heading class="centered">LEGISLATIVE BRANCH</heading> <appropriations level="intermediate"> <heading>Senate</heading> <appropriations level="small"> <heading>(rescission)</heading> <content class="firstIndent1 fontsize10">Of the funds appropriated under the heading “SENATE” in Acts providing appropriations for the Legislative Branch for the fiscal years ending September 30, 1977, September 30, 1978, and September 30, 1979, and which (except for the provisions of this section) would remain available until expended, the remaining balances, but not less than $46,400,000, are rescinded.</content> </appropriations> <appropriations level="small"> <heading>salaries, officers and employees</heading> <subheading>offices of the secretaries for the majority and minority</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Offices of the Secretary for the Majority and the Secretary for the Minority”, $100,000.</content> </appropriations> <appropriations level="small"> <heading>contingent expenses of the senate stationery (revolving fund)</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Stationery (revolving fund)”, $2,000.</content> </appropriations> <appropriations level="small"> <heading>administrative provisions</heading> <section class="firstIndent1 fontsize10"> <num value="101"><inline class="smallCaps">Sec</inline>. 101. </num> <content>In order to provide additional capital for the revolving<sidenote><p class="indent0 firstIndent0 fontsize8">Revolving fund.</p></sidenote> fund established by the last paragraph under the heading “Contingent expenses of the Senate” appearing under the heading “SENATE” in chapter XI of the Third Supplemental Appropriation Act, 1957 (2 U.S.C. 46a–1), the Secretary of the Senate is authorized and directed to transfer $100,000 to such revolving fund from “miscellaneous items” in the contingent fund of the Senate.</content> </section> <section class="firstIndent1 fontsize10"> <num value="102"><inline class="smallCaps">Sec</inline>. 102. </num> <content>Effective with respect to fiscal years beginning on or after<sidenote><p class="indent0 firstIndent0 fontsize8">Travel expenses.</p></sidenote> October 1, 1980, the first sentence of section 101 of the Legislative Branch Appropriations Act, 1976 (2 U.S.C. 61a–9a), is amended by striking out “<quotedText>$7,500</quotedText>” and inserting in lieu thereof “<quotedText>$10,000</quotedText>”.</content> </section> <section class="firstIndent1 fontsize10"> <num value="103"><inline class="smallCaps">Sec</inline>. 103. </num> <content>Section 111 of the Supplemental Appropriations and Recission Act, 1980 (Public Law 96–304) is amended by striking out<sidenote><p class="indent0 firstIndent0 fontsize8">Inaugural ceremonies.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/892">94 Stat. 892</ref>.</p></sidenote> “<quotedText>and to remain available through September 30, 1981</quotedText>” and inserting in lieu thereof “<quotedText>and to remain available until December 31, 1981</quotedText>”.</content> </section> <section class="firstIndent1 fontsize10"> <num value="104"><inline class="smallCaps">Sec</inline>. 104. </num> <chapeau>Section 112(a) of the Supplemental Appropriations and Recission Act, 1980 (Public Law 96–304) is amended—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/892">94 Stat. 892</ref>.</p></sidenote> </chapeau> <paragraph class="firstIndent1 fontsize10"> <num value="1">(1) </num> <content>by inserting “<quotedText>(and the unexpended balance on any subsequent date during the fiscal year ending September 30, 1981)</quotedText>” immediately after “<quotedText>February 28, 1981</quotedText>”, and</content> </paragraph> <paragraph class="firstIndent1 fontsize10"> <num value="2">(2) </num> <content>by striking out “<quotedText>for any fiscal year shall</quotedText>” and inserting in lieu thereof “<quotedText>or in funds otherwise made available for the same purposes as funds so appropriated for such fiscal year shall during such fiscal year</quotedText>”.</content> </paragraph> </section> <section class="firstIndent1 fontsize10"> <num value="105"><inline class="smallCaps">Sec</inline>. 105. </num> <content>The second proviso contained in the Legislative Branch Appropriation Act, 1966 (2 U.S.C. 126b), under the heading “SENATE”, “<inline class="smallCaps">Salaries, Officers and Employees</inline>”, “<inline class="smallCaps">office of the secretary</inline>”, is amended to read as follows: “<quotedText>The Secretary of the Senate is hereafter authorized to employ, by contract or otherwise, substitute reporters of debates and expert transcribers at daily rates of compensation, or temporary reporters of debates and expert <page identifier="/us/stat/95/62">95 STAT. 62</page>transcribers at annual rates of compensation; no temporary reporters of debates or expert transcribers may be employed under authority of this provision for more than ninety days in any fiscal year; and payments made under authority of this proviso shall be made from the contingent fund of the Senate upon vouchers approved by the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s61–1">2 USC 61–1 note</ref>.</p></sidenote>Secretary of the Senate.</quotedText>”.</content> </section> <section class="firstIndent1 fontsize10"> <num value="106"><inline class="smallCaps">Sec</inline>. 106. </num><subsection class="inline"><num value="a">(a) </num> <content class="inline">Effective January 1, 1981, the allowance for administrative and clerical assistance of each Senator from the State of Florida is increased to that allowed Senators from States having a population of nine million but less than ten million, the population of said State having exceeded nine million inhabitants.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <content>Effective January 1, 1981, the allowance for administrative and clerical assistance of each Senator from the State of Washington is increased to that allowed Senators from States having a population of four million but less than five million, the population of said State having exceeded four million inhabitants.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num> <content>Effective January 1, 1981, the allowance, for administrative and clerical assistance of each Senator from the States of Oklahoma and South Carolina is increased to that allowed Senators from States having a population of three million but less than four million, the population of said States having exceeded three million inhabitants.</content> </subsection> </section> <section class="firstIndent1 fontsize10"> <num value="107"><inline class="smallCaps">Sec</inline>. 107. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s64–2">2 USC 64–2 note</ref>.</p></sidenote> <content class="inline">Hereafter, the Secretary of the Senate as Disbursing Officer of the Senate is authorized to make transfers between appropriations of funds available for disbursement by him for fiscal year 1981, subject to the customary reprogramming procedures of the Committee on Appropriations of the Senate.</content> </section> <section class="firstIndent1 fontsize10"> <num value="108"><inline class="smallCaps">Sec</inline>. 108. </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Travel expenses.</p></sidenote> <content class="inline">Effective with the fiscal year ending September 30, 1981, section 117 of the Second Supplemental Appropriations Act, 1976 (2 U.S.C. 61f–1a), is amended by striking out “<quotedText>$92,000</quotedText>” and inserting in lieu thereof “<quotedText>$167,000</quotedText>”.</content> </section> <section class="firstIndent1 fontsize10"> <num value="109"><inline class="smallCaps">Sec</inline>. 109. </num> <content>Notwithstanding any other provision of this Act (or any provision of law enacted prior to the date of enactment of this Act), the aggregate of the funds (other than funds appropriated under title II of this Act for increased pay costs) appropriated for the fiscal year ending September 30, 1981, for projects or activities for which disbursements are made by the Secretary of the Senate, shall not exceed an amount equal to 90 per centum of the aggregate of the funds (including funds appropriated for increased pay costs) appropriated for the fiscal year ending September 30, 1980, for such projects or activities.</content> </section> <section class="firstIndent1 fontsize10"> <num value="110"><inline class="smallCaps">Sec</inline>. 110. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s58b">2 USC 58b</ref>.</p></sidenote> <content class="inline">Effective in the case of each fiscal year (commencing with the fiscal year ending September 30, 1981) each Senator, at his election, may transfer from his Administrative, Clerical, and Legislative Assistance Allowance (hereinafter referred to as the “clerk hire allowance”) to such Senator’s Official Office Expense Account any balance remaining, or any portion thereof in such clerk hire allowance as of the close of the fiscal year. Any balance so transferred to a Senator’s Official Office Expense Account shall be available only for expenses incurred during the calendar year in which occurred the close of the fiscal year. Each Senator electing to make such a transfer shall advise the Senate Disbursing Office in writing, no later than December 31, and such transfer shall be made on such date (but not earlier than the October 1 which next succeeds the close of the fiscal year with respect to which the balance occurs) as may be specified by the Senator.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <content>Transfer of funds under subsection (a) shall be made from the appropriation “Administrative, Clerical, and Legislative Assistance Allowance to Senators” under the heading “Senate” and “Salaries, <page identifier="/us/stat/95/63">95 STAT. 63</page>officers, and employees” for transfer to the appropriation “Miscellaneous items” for allocation to Senatorial Official Office Expense Accounts.</content> </subsection> </section> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>House of Representatives</heading> <appropriations level="small"> <heading>payments to widows and heirs of deceased members of congress</heading> <content class="firstIndent1 fontsize10">For payment to Edith Mae Guyer, widow of Tennyson Guyer, late a Representative from the State of Ohio, $60,663.</content> </appropriations> <appropriations level="small"> <heading>committee on appropriations</heading> <subheading>(studies and investigations)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Committee on Appropriations (Studies and investigations)”, $652,000.</content> </appropriations> <appropriations level="small"> <heading>allowances and expenses</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Allowances and expenses”, for supplies, materials, administrative costs and Federal tort claims, $3,150,000.</content> </appropriations> <appropriations level="small"> <heading>administrative provisions</heading> <section class="firstIndent1 fontsize10"> <num value="111"><inline class="smallCaps">Sec</inline>. 111. </num> <content>Of the amounts appropriated in fiscal year 1981 for the House of Representatives under the headings “Committee employees”, “Special and select committees”, “Salaries, officers and employees”, and “Allowances and expenses”, such amounts as are deemed necessary for the payment of salaries and expenses may be transferred among the aforementioned accounts upon approval of the Committee on Appropriations of the House of Representatives.</content> </section> <section class="firstIndent1 fontsize10"> <num value="112"><inline class="smallCaps">Sec</inline>. 112. </num> <content>No part of the funds appropriated by this or any other Act or resolution shall be available for planning or administering any user-reimbursement program or policy that requires reimbursement for computer services and equipment provided by the House Information Systems to the committees of the House of Representatives or the House Leadership offices.</content> </section> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Joint Items</heading> <appropriations level="small"> <heading>official mail costs</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Official mail costs”, $15,400,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Technology Assessment</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses”, Office of Technology Assessment, $100,000.</content> </appropriations> </appropriations> <page identifier="/us/stat/95/64">95 STAT. 64</page> <appropriations level="intermediate"> <heading>Architect of the Capitol</heading> <appropriations level="small"> <heading>capitol buildings</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in H.R. 7593, and made <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>available by Public Law 96–536, making continuing appropriations through June 5, 1981, $97,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>capitol grounds</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in H.R. 7593, and made <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>available by Public Law 96–536, making continuing appropriations through June 5, 1981, $10,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>acquisition of property as an addition to the capitol grounds</heading> <content class="firstIndent1 fontsize10">To enable the Architect of the Capitol, under the direction of the House Office Building Commission, to carry out the provisions of Public Law 96–432, approved October 10, 1980 (94 Stat. 1851), relating to the acquisition of property in squares 693, 640, and 582 in the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s193a">40 USC 193a note</ref>.</p></sidenote>District of Columbia, including necessary incidental expenses: <proviso> <i>Provided</i>, That upon acquisition of such real property pursuant to this paragraph, the structure located on lot 801 of square 693 shall become a part of the House Office Buildings, subject to the provisions of the Act of July 31, 1946 (40 U.S.C. secs. 193a through 193m, 212a and 212b), including any amendments thereto, which are applicable to the Capitol Buildings, and to the Act of March 4, 1907 (40 U.S.C. 175); $11,500,000, to remain available until expended</proviso>.</content> </appropriations> <appropriations level="small"> <heading>senate garage</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in H.R. 7593, and made <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>available by Public Law 96–536, making continuing appropriations through June 5, 1981, $102,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>house office buildings</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head, $497,000 are rescinded, consisting of $200,000 included under this head in H.R. 7593, and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>made available by Public Law 96–536, making continuing appropriations through June 5, 1981, and $297,000 included under this head in <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/92/782">92 Stat. 782</ref>.</p></sidenote>Public Law 95–391.</content> </appropriations> <appropriations level="small"> <heading>capitol power plant</heading> <subheading>(including rescission)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Capitol power plant”, $2,000,000, of which $300,000 shall remain available until expended. Of the funds <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/90/1454">90 Stat. 1454</ref>.</p></sidenote>made available under this head in Public Law 94–440, $24,000 are <page identifier="/us/stat/95/65">95 STAT. 65</page>rescinded, together with $70,000 included under this head in H.R. 7593, and made available by Public Law 96–536.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> </content> </appropriations> <appropriations level="small"> <heading>library buildings and grounds</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head, $508,000 are rescinded, consisting of $430,000 included under this head in H.R. 7593, and made available by Public Law 96–536, making continuing appropriations<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> through June 5, 1981, and $78,000 included under this head in Public Law 94–59.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/89/290">89 Stat. 290</ref>.</p></sidenote> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Library of Congress</heading> <appropriations level="small"> <heading>collection and distribution of library materials</heading> <subheading>(special foreign currency program)</subheading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head, $500,000 are rescinded, consisting of $86,000 withheld from obligation pursuant to section 311 of Public Law 95–391, and $414,000 included under this head in H.R.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/92/790">92 Stat. 790</ref>.</p></sidenote> 7593 and made available by Public Law 96–536, making continuing<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> appropriations through June 5, 1981, including $197,900 withheld from obligation pursuant to section 309 of H.R. 7593.</content> </appropriations> <appropriations level="small"> <heading>administrative provision</heading> <content class="firstIndent1 fontsize10">Not to exceed $250,000 of the unobligated balance of that part of the appropriation “Salaries and expenses, Library of Congress” initially for the fiscal year 1980 and continued until September 30, 1981, for moving costs to the James Madison Memorial Building, is hereby further continued available until September 30, 1982.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Copyright Royalty Tribunal</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses”, $14,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Government Printing Office</heading> <appropriations level="small"> <heading>office of superintendent of documents</heading> <subheading>salaries and expenses</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses”, Office of Superintendent of Documents, $400,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>General Provisions</heading> <content class="firstIndent1 fontsize10">The provisions of sections 491(c) and 491(d) of the Legislative<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t2/s88b–1">2 USC 88b–1 note</ref>.</p></sidenote> Reorganization Act of 1970, as amended (2 U.S.C. 88b–1), shall not apply to the pay of pages of the Senate and House of Representatives during the period when the Senate and/or the House of Representatives adjourns or recesses on or after the first of August for a period of <page identifier="/us/stat/95/66">95 STAT. 66</page>at least thirty days but not more than forty-five days. Such pay may continue until the end of such period of adjournment or recess.</content> </appropriations> </chapter> <chapter> <num value="X">CHAPTER X </num> <heading class="smallCaps centered">Military Construction</heading> <appropriations level="small"> <heading>military construction, army</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Military construction, Army”, $28,400,000, to remain available until September 30, 1985; and $28,500,000 shall be available in addition to existing limitations for study, planning, design, architect and engineer services.</content> </appropriations> <appropriations level="small"> <heading>military construction, navy</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Military construction, Navy”, $15,862,000, to remain available until September 30, 1985; and $23,000,000 shall be available in addition to existing limitations for study, planning, design, architect and engineer services.</content> </appropriations> <appropriations level="small"> <heading>military construction, air force</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Military construction, Air Force”, $76,100,000, of which $35,000,000 shall be available, in addition to existing limitations, for study, planning, design, architect and engineer services, to remain available until September 30, 1985.</content> </appropriations> <appropriations level="small"> <heading>(deferral)</heading> <content class="firstIndent1 fontsize10">Of the funds appropriated in the Military Construction Appropriations <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1864">94 Stat. 1864</ref>.</p></sidenote>Act, 1981 (Public Law 96–436) under Military construction, Air Force for study, planning, design, architect, and engineering services, $92,000,000 are deferred for obligation until the President of the United States certifies to the Congress his decision on the basing mode for the MX missile.</content> </appropriations> <appropriations level="small"> <heading>military construction, defense agencies</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Military construction, Defense agencies”, $16,400,000, of which $10,500,000 shall be available, in addition to existing limitations, for study, planning, design, architect and engineer services, to remain available until September 30, 1985.</content> </appropriations> <appropriations level="small"> <heading>military construction, air national guard</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Military construction, Air National Guard, 1981/1985”, $6,500,000, to remain available until September 30, 1985.</content> </appropriations> <appropriations level="small"> <heading>family housing, defense</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Family housing, Defense“, $84,000,000. The limitation for Air Force, construction, is increased to $65,975,000; and the limitation for the Department of Defense, operation, maintenance, is increased to $1,722,926,000; and the amount available only for the maintenance of real property facilities shall not be less than $764,625,000 rather than $811,711,000. Amounts <page identifier="/us/stat/95/67">95 STAT. 67</page>provided for construction shall remain available until September 30, 1985.</content> </appropriations> </chapter> <chapter> <num value="XI">CHAPTER XI </num> <heading class="centered">DEPARTMENT OF TRANSPORTATION</heading> <appropriations level="intermediate"> <heading>Coast Guard</heading> <appropriations level="small"> <heading>operating expenses</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Operating expenses”, $95,575,000.</content> </appropriations> <appropriations level="small"> <heading>retired pay</heading> <subheading>(including transfer of funds)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Retired pay”, $12,000,000, and, in addition, not to exceed $2,000,000 shall be derived by transfer from the unobligated balance in the appropriation “Acquisition, construction, and improvements”.</content> </appropriations> <appropriations level="small"> <heading>reserve training</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Reserve training”, $1,000,000.</content> </appropriations> <appropriations level="small"> <heading>deepwater port liability fund</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">For necessary expenses to carry out the provisions of section 18 of the Deepwater Port Act of 1974 (Public Law 93–627), $5,000,000, to be<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t33/s1517">33 USC 1517</ref>.</p></sidenote> derived from the Deepwater Port Liability Fund, to remain available until expended. In addition, the Secretary of Transportation is<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t33/s1517a">33 USC 1517a</ref>.</p></sidenote> authorized to issue, and the Secretary of the Treasury is authorized to purchase, without fiscal year limitation, notes or other obligations pursuant to section 18(f)(3) of the Act, in such amounts and at such times as may be necessary to meet the obligations of the Fund.</p> <p class="indent0 firstIndent1 fontsize10">None of the authority provided under this or any other Act shall be available for the implementation or execution of programs the obligations for which are in excess of $50,000,000 in fiscal year 1981 for the “Deepwater port liability fund”.</p> </content> </appropriations> <appropriations level="small"> <heading>pollution fund</heading> <content class="firstIndent1 fontsize10">For carrying out the provisions of subsections (c), (d), (i), and (1) of section 311 of the Federal Water Pollution Control Act Amendments of 1972, 33 U.S.C. 1321, $15,000,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Aviation Administration</heading> <appropriations level="small"> <heading>facilities and equipment (airport and airway trust fund)</heading> <subheading>(disapproval of deferral)</subheading> <content class="firstIndent1 fontsize10">The Congress disapproves $30,000,000 of the proposed deferral D81–17B relating to Federal Aviation Administration, Facilities and Equipment (Airport and Airway Trust Fund), as set forth in the message of March 10, 1981, which was transmitted to the Congress by the President. This disapproval shall be effective upon the enactment<sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> <page identifier="/us/stat/95/68">95 STAT. 68</page>into law of this bill and the amount of the proposed deferral disapproved herein shall be made available for obligation.</content> </appropriations> <appropriations level="small"> <heading>grants-in-aid for airport planning and development</heading> <subheading>(limitation on obligations)</subheading> <content class="firstIndent1 fontsize10">The limitation in section 302 of the Department of Transportation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1695">94 Stat. 1695</ref>.</p></sidenote>and Related Agencies Appropriation Act, 1981 (Public Law 96–400), is amended by deleting “<quotedText>$700,000,000</quotedText>” and inserting in lieu thereof “<quotedText>$450,000,000</quotedText>”.</content> </appropriations> <appropriations level="small"> <heading>aircraft purchase loan guarantee program</heading> <content class="firstIndent1 fontsize10">The limitation “Federal Aviation Administration, aircraft purchase loan guarantee program” contained in the Department of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1685">94 Stat. 1685</ref>.</p></sidenote>Transportation and Related Agencies Appropriation Act, 1981, is amended by deleting “<quotedText>$400,000,000</quotedText>” and inserting in lieu thereof “<quotedText>$350,000,000</quotedText>”.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Highway Administration</heading> <appropriations level="small"> <heading>highway-related safety grants</heading> <subheading>(liquidation of contract authorization)</subheading> <subheading>(trust fund)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Highway-related safety grants”, $12,000,000, to remain available until expended, to be derived from the Highway Trust Fund.</content> </appropriations> <appropriations level="small"> <heading>national scenic and recreational highway</heading> <subheading>(liquidation of contract authorization)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “National scenic and recreational highway”, $7,000,000, to remain available until expended, to be derived from the Highway Trust Fund.</content> </appropriations> <appropriations level="small"> <heading>federal-aid highways</heading> <subheading>(liquidation of contract authorization)</subheading> <subheading>(trust fund)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Federal-aid highways”, $1,250,000,000 or so much as may be available in and derived from the Highway Trust Fund, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>urban high density traffic program</heading> <content class="firstIndent1 fontsize10">Notwithstanding any other provision of law, obligations authorized out of the Highway Trust Fund are increased by $33,959,000, to remain available until expended, for the purpose of completing routes designated under the urban high density traffic program prior to May 5, 1976.</content> </appropriations> <page identifier="/us/stat/95/69">95 STAT. 69</page> <appropriations level="small"> <heading>access highways to public recreation areas on certain lakes</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Access highways to public recreation areas on certain lakes”, $10,000,000, to remain available until September 30, 1983.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Railroad Administration</heading> <appropriations level="small"> <heading>rail service assistance</heading> <subheading>(including disapproval of deferral)</subheading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">For an additional amount for “Rail service assistance”, $60,381,000 for payment to the Secretary of the Treasury for debt reduction.</p> <p class="indent0 firstIndent1 fontsize10">The Congress disapproves $40,000,000 of the proposed deferral D81–91 relating to the Federal Railroad Administration, Rail Service Assistance, as set forth in the message of March 10, 1981, which WEIS transmitted to the Congress by the President. This disapproval shall be effective upon the enactment into law of this bill and the amount of the proposed deferral disapproved herein shall be made available for obligation.</p> <p class="indent0 firstIndent1 fontsize10">After reserving funds for the grant agreements executed prior to March 10, 1981, for the remainder of the fiscal year 1981, the Secretary shall obligate available funds up to the extent of the entitlements which existed immediately prior to March 10, 1981, or on the basis of the rail transportation needs to be addressed by the project to be funded.</p> </content> </appropriations> <appropriations level="small"> <heading>conrail workforce reduction program</heading> <subheading>(including transfer of funds)</subheading> <content class="firstIndent1 fontsize10">For necessary expenses of the Conrail Workforce Reduction Program, to remain available until expended, $15,000,000 which shall be transferred to the United States Railway Association in accordance with section 405(b)(1) of Public Law 96–448, of which $5,000,000 shall<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1945">94 Stat. 1945</ref>.</p></sidenote> be derived by transfer from “Rail service assistance”.</content> </appropriations> <appropriations level="small"> <heading>railroad rehabilitation and improvement financing funds</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds authorized to be expended under this head by the Department of Transportation and Related Agencies Appropriation Act, 1981, and prior appropriation Acts, $1,000,000 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1689">94 Stat. 1689</ref>.</p></sidenote> </content> </appropriations> <appropriations level="small"> <heading>grants to the national railroad passenger corporation</heading> <subheading>(including transfer of funds)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Grants to the National Railroad Passenger Corporation”, for operating losses incurred by the Corporation, $15,300,000 to be derived by transfer from the unobligated balances under the appropriations “Department of the Treasury, Office of the Secretary, Investment in Fund Anticipation Notes” and “Federal Railroad Administration, Railroad Rehabilitation and Improvement Financing Funds”. Not to exceed $24,900,000 of amounts previously appropriated for capital improvements may be used for operating expenses incurred by the Corporation. Amounts <page identifier="/us/stat/95/70">95 STAT. 70</page>appropriated in fiscal years 1980 and 1981 pursuant to section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/93/550">93 Stat. 550</ref>.</p></sidenote>122(b)(1)(D) of the Amtrak Reorganization Act of 1979 for labor protection shall be used for operating expenses incurred by the Corporation.</content> </appropriations> <appropriations level="small"> <heading>payments to the alaska railroad revolving fund</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Payments to the Alaska railroad revolving fund”, $2,000,000 to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>settlements of railroad litigation</heading> <content class="firstIndent1 fontsize10">For necessary expenses to liquidate a promissory note pursuant to section 210(f) of the Regional Rail Reorganization Act of 1973 (Public <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s720">45 USC 720</ref>.</p></sidenote>Law 93–236), as amended, $2,113,000,000, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>rail labor assistance</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Rail labor assistance”, $60,000,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Urban Mass Transportation Administration</heading> <appropriations level="small"> <heading>research, development, and demonstrations and university research and training</heading> <subheading>(transfer of funds)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Research, development, and demonstrations and university research and training”, $2,000,000, to remain available until expended, of which $1,040,000 shall be derived by transfer from the appropriation “Office of the Secretary, transportation planning, research and development” and $960,000 shall be derived by transfer from the appropriation “Federal Railroad Administration, railroad research and development”.</content> </appropriations> <appropriations level="small"> <heading>urban discretionary grants</heading> <subheading>(deferral)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1689">94 Stat. 1689</ref>.</p></sidenote>Transportation and Related Agencies Appropriation Act, 1981, $220,000,000 shall not become available for obligation until October 1, 1981.</content> </appropriations> <appropriations level="small"> <heading>waterborne transportation demonstration project</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in Public Law 96–38, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/93/120/1032">93 Stat. 120, 1032</ref>, <ref href="/us/stat/94/1690">94 Stat. 1690</ref>.</p></sidenote>Public Law 96–131 and Public Law 96–400, making appropriations for a waterborne transportation demonstration project for fiscal years 1979, 1980, and 1981, $20,700,000 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>interstate transfer grants</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Interstate transfer grants”, $65,000,000, to remain available until expended.</content> </appropriations> </appropriations> <page identifier="/us/stat/95/71">95 STAT. 71</page> <appropriations level="intermediate"> <heading>Saint Lawrence Seaway Development Corporation</heading> <appropriations level="small"> <heading>limitation on administrative expenses</heading> <content class="firstIndent1 fontsize10">The limitation on administrative expenses is increased to $1,685,000, which shall be computed on an accrual basis.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Research and Special Programs Administration</heading> <appropriations level="small"> <heading>cooperative automotive research program</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Appropriations under this heading contained in Public Law 96–400<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1691">94 Stat. 1691</ref>.</p></sidenote> are hereby rescinded in the amount of $11,500,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of the Inspector General</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses”, $1,000,000.</content> </appropriations> </appropriations> <appropriations level="major"> <heading>RELATED AGENCIES</heading> <appropriations level="intermediate"> <heading>Civil Aeronautics Board</heading> <appropriations level="small"> <heading>payments to air carriers</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Payments to air carriers”, $20,000,000, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Interstate Commerce Commission</heading> <appropriations level="small"> <heading>payments for directed rail service</heading> <subheading>(transfer of funds)</subheading> <content class="firstIndent1 fontsize10">For necessary expenses for “Payments for directed rail service”, $2,500,000, to be derived by transfer from Interstate Commerce Commission, “Salaries and expenses”, to remain available until expended.</content> </appropriations> <appropriations level="small"> <heading>national clean-up and flag-up america’s highways week</heading> <content class="firstIndent1 fontsize10">The week of June 28 through July 4, 1981, is designated as<sidenote><p class="indent0 firstIndent0 fontsize8">National Clean-up and Flag-up America’s Highways Week.</p><p class="indent0 firstIndent0 fontsize8">Designation.</p></sidenote> “National Clean-up and Flag-up America’s Highways Week”, and the President is authorized and requested to issue a proclamation calling upon the people of the United States to observe that week with appropriate ceremonies and activities.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Motor Carrier Ratemaking Study Commission</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content class="firstIndent1 fontsize10">For necessary expenses of the Motor Carrier Ratemaking Study Commission as authorized by Public Law 96–296, $2,000,000 to<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/793">94 Stat. 793</ref>.</p></sidenote> remain available until expended.</content> </appropriations> </appropriations> <page identifier="/us/stat/95/72">95 STAT. 72</page> <appropriations level="intermediate"> <heading>Panama Canal Commission</heading> <appropriations level="small"> <heading>operating expenses</heading> <content class="firstIndent1 fontsize10">For payment to the Republic of Panama, pursuant to Article XIII, paragraph 4(c) of the Panama Canal Treaty of 1977, $2,699,000, to be derived from the Panama Canal Commission Fund.</content> </appropriations> <appropriations level="small"> <heading>emergency fund</heading> <content class="firstIndent1 fontsize10">For expenses necessary to defray emergency expenditures and to insure continuous efficient and safe operation of the Panama Canal, when funds appropriated for the operation and maintenance of the Canal prove insufficient for such purposes, $10,000,000, to be derived from the Panama Canal Commission Fund, to remain available until expended.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Department of the Treasury</heading> <subheading>Office of the Secretary</subheading> <appropriations level="small"> <heading>investment in fund anticipation notes</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated under this head in the Department of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1694">94 Stat. 1694</ref>.</p></sidenote>Transportation and Related Agencies Appropriation Act, 1981, and prior appropriation Acts, $1,000,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>United States Railway Association</heading> <appropriations level="small"> <heading>payments for purchase of conrail securities</heading> <content class="firstIndent1 fontsize10">For an additional amount for acquisition of series A preferred stock issued by the Consolidated Rail Corporation, to remain available until expended, $300,000,000.</content> </appropriations> </appropriations> </appropriations> <level> <heading class="smallCaps centered">General Provision</heading> <subsection class="indent0 fontsize10"> <num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Property conveyance deed to Gary, Ind.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s1115">49 USC 1115 note</ref>.</p></sidenote> <content class="inline">Notwithstanding section 16 of the Federal Airport Act (as in effect on May 29, 1947), the Secretary of Transportation is authorized, subject to the provisions of section 4 of the Act of October 1, 1949 (50 App. U.S.C. 1622c), as if the property described in subsection (b) has been conveyed pursuant to the Surplus Property Act of 1944, as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s1611">50 USC app. 1611 note</ref>.</p></sidenote>amended, and the provisions of subsection (c) to grant a release or releases without monetary consideration to the United States with respect to the property described in subsection (b) from any of the terms, conditions, reservations, and restrictions contained in the deed of conveyance dated May 29, 1947, under which the United States conveyed certain property to the City of Gary, Indiana, for airport purposes.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <content>The property to which subsection (a) applies is that portion of the property conveyed to the City of Gary, Indiana, by the deed of conveyance dated May 29, 1947, which is described as follows: lying in the County of Lake in the State of Indiana, the westerly 500 feet of the southeast quarter of section 35, township 37 north, range 9 west lying north of the Grand Calumet River, containing 25.7 acres, more or less.</content> </subsection> <page identifier="/us/stat/95/73">95 STAT. 73</page> <subsection class="indent0 fontsize10"> <num value="c">(c) </num> <chapeau>Any release granted by the Secretary of Transportation under<sidenote><p class="indent0 firstIndent0 fontsize8">Release conditions.</p></sidenote> subsection (a) shall be subject to the following conditions:</chapeau> <paragraph class="firstIndent1 fontsize10"> <num value="1">(1) </num> <content>The City of Gary, Indiana, shall agree that in conveying any interest in the property described in subsection (b) the city will receive an amount for such interest which is equal to the fair market value (as determined in a manner approved by such Secretary).</content> </paragraph> <paragraph class="firstIndent1 fontsize10"> <num value="2">(2) </num> <content>Any such amount so received by such city shall be used by such city for the development, improvement, operation, or maintenance of a public airport owned by such city,</content> </paragraph> </subsection> </level> </chapter> <chapter> <num value="XII">CHAPTER XII </num> <heading class="centered">DEPARTMENT OF THE TREASURY</heading> <appropriations level="intermediate"> <heading>United States Customs Service</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses”, $10,000,000, to be used for the implementation of the Air Module Concept; including acquisition (purchase of four), operation and maintenance of aircraft: <proviso> <i>Provided</i>, That none of the funds made available by this Act shall be available for administrative expenses in connection with effecting the reduction of employment in the U.S. Customs Service below the level on April 30, 1981</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Internal Revenue Service</heading> <appropriations level="small"> <heading>taxpayer service and returns processing</heading> <content class="firstIndent1 fontsize10">For an additional amount for the tax counseling for the elderly program (TCE), $500,000. This additional amount shall be used to retroactively reimburse volunteer tax counselors for personal and administrative expenses incurred during the past 1980 income tax filing season.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>United States Secret Service</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses”, $11,629,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Bureau of Government Financial Operations</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses”, $7,563,000.</content> </appropriations> </appropriations> <page identifier="/us/stat/95/74">95 STAT. 74</page> <appropriations level="major"> <heading>UNITED STATES POSTAL SERVICE</heading> <appropriations level="small"> <heading>payment to the postal service fund</heading> <subheading>(including transfer of funds)</subheading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the amounts in the Postal Service Fund, $250,000,000 shall be transferred to the account entitled “Payment to the Postal Service fund” and, when transferred, are rescinded.</content> </appropriations> </appropriations> <appropriations level="major"> <heading>EXECUTIVE OFFICE OF THE PRESIDENT</heading> <appropriations level="intermediate"> <heading>Council on Wage and Price Stability</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for the activities of the Council on Wage and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>price Stability in Public Law 96–536, $1,500,000 are rescinded: <proviso> <i>Provided</i>, That no funds appropriated or made available by this or any other Act shall be available to fund the Council on Wage and Price Stability after June 5, 1981</proviso>.</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>INDEPENDENT AGENCIES</heading> <appropriations level="intermediate"> <heading>Committee for Purchase from the Blind and Other Severely Handicapped</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses”, $39,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>General Services Administration</heading> <appropriations level="small"> <heading>federal buildings fund</heading> <subheading>limitations on availability of revenue</subheading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">In addition to the aggregate amount heretofore made available for real property management and related activities in fiscal year 1981, $33,036,000 shall be made available for such purposes in the aggregate amount of $1,647,525,000, of which (1) not to exceed $2,336,000 shall remain available until expended for the construction and acquisition of facilities as follows:</p> <list> <listItem><listContent class="indent1 fontsize10 depth0">Payment of Construction Claims:</listContent> <list> <listItem><listContent class="indent2 fontsize10 depth0">Florida: West Palm Beach, U.S. Courthouse and Post Office, $1,000,000</listContent></listItem> <listItem><listContent class="indent2 fontsize10 depth0">Massachusetts: Andover, Internal Revenue Service Center, $700,000</listContent></listItem> <listItem><listContent class="indent2 fontsize10 depth0">Virginia: Quantico, Federal Bureau of Investigation Academy, $250,000</listContent></listItem> </list> </listItem> <listItem><listContent class="indent1 fontsize10 depth0">Acquisition:</listContent> <list> <listItem><listContent class="indent2 fontsize10 depth0">Virginia: Charlottesville, Federal Executive Institute, $2,270,000</listContent></listItem> </list> </listItem> </list> <page identifier="/us/stat/95/75">95 STAT. 75</page> <p class="indent0 firstIndent1 fontsize10"> <i>Provided</i>, That $1,884,000 previously authorized for the acquisition of excess United States Postal Service properties pursuant to Public Law 95–429, under the heading “Federal Building Fund, Limitation<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/92/1009">92 Stat. 1009</ref>.</p></sidenote> on Availability of Revenue”, shall be made available for such purposes: <proviso> <i>Provided further</i>, That the immediately foregoing limits of costs may be exceeded to the extent that savings are effected in other such projects but by not to exceed 10 per centum</proviso>: <proviso> <i>Provided further</i>, That all funds for direct construction projects shall expire on September 30, 1982, except for funds for projects as to which funds have been obligated in whole or in part prior to such date: (2) not to exceed $30,700,000 for real property operations</proviso>: <proviso> <i>Provided</i>, That any revenues and collections and any other sums accruing to this fund during fiscal year 1981, excluding reimbursements under section 210(f)(6), in excess of $1,647,525,000 shall remain in the Fund and shall not be available for expenditure except as authorized in appropriation Acts</proviso>.</p> </content> </appropriations> <appropriations level="small"> <heading>general supply fund</heading> <subheading>(including transfer of funds)</subheading> <content class="firstIndent1 fontsize10">To increase the capital of the General Supply Fund, established by<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s756">40 USC 756 note</ref>.</p></sidenote> section 109 of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 756), $150,000,000, and in addition, $72,300,000, to be derived by transfer from operating surpluses in the fund in fiscal years 1978, 1979, and 1980: <proviso> <i>Provided</i>, That the Administrator<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s756a">40 USC 756a</ref>.</p></sidenote> of the General Services Administration is authorized hereafter to retain from any surplus generated from the operation of the fund such sums as may be necessary to maintain a sufficient level of inventory of personal property to meet the needs of the Federal agencies</proviso>.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Archives and Records Service</heading> <appropriations level="small"> <heading>operating expenses</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Operating expenses”, $1,100,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of Personnel Management</heading> <appropriations level="small"> <heading>payment to civil service retirement and disability fund</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Payment to Civil Service retirement and disability fund”, $513,007,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Intergovernmental Personnel Assistance</heading> <appropriations level="small"> <heading>(rescission)</heading> <content class="firstIndent1 fontsize10">Of the funds provided for the Intergovernmental Personnel Act Grant program for fiscal year 1981 in Public Law 96–536, $5,600,000<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> are rescinded: <proviso> <i>Provided</i>, That no funds appropriated or made available by this or any other Act shall be available to fund the Intergovernmental Personnel Act Grant program after June 5, 1981</proviso>.</content> </appropriations> <appropriations level="small"> <heading>revolving fund</heading> <content class="firstIndent1 fontsize10">For additional working capital for the revolving fund of the Office of Personnel Management established by 5 U.S.C 1304(e), $1,800,000, to remain available until expended.</content> </appropriations> <page identifier="/us/stat/95/76">95 STAT. 76</page> <appropriations level="small"> <heading>merit systems protection board</heading> <subheading>salaries and expenses</subheading> <subheading>(including transfer of funds)</subheading> <content class="firstIndent1 fontsize10">The limitation on the transfer of funds from the Civil Service Retirement and Disability Fund for reimbursement of administrative expenses for the adjudication of retirement appeals in amounts determined by the Merit Systems Protection Board is increased for the current fiscal year to $950,000.</content> </appropriations> <appropriations level="small"> <heading>merit systems protection board</heading> <subheading>salaries and expenses</subheading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds provided for the Merit Systems Protection Board, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>“Salaries and expenses” for fiscal year 1981 in Public Law 96–536, $210,000 are rescinded.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Labor Relations Authority</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses”, $1,400,000. The limitation on obligations for travel and transportation of persons is increased to $1,309,000.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>United States Tax Court</heading> <appropriations level="small"> <heading>salaries and expenses</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Salaries and expenses”, $221,000: <proviso> <i>Provided</i>, That the limitation on travel expenses is increased by $45,000</proviso>.</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>GENERAL PROVISION</heading> <content class="firstIndent1 fontsize10">None of the funds made available to the Department of the Treasury by this Act shall be used to implement changes shortening the time granted, or altering the mode of payment permitted, for payment of excise taxes by law or regulations in effect on January 1, 1981.</content> </appropriations> </chapter> <chapter> <num value="XIII">CHAPTER XIII </num> <heading class="centered">DISTRICT OF COLUMBIA</heading> <appropriations level="intermediate"> <heading>Federal Funds</heading> <appropriations level="small"> <heading>federal payment to the district of columbia</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Federal payment to the District of Columbia”, for the fiscal year ending September 30, 1981, $4,600,000, as authorized by section 502 of the District of Columbia Self-Government and Governmental Reorganization Act, approved December 24, 1973 (87 Stat. 812; D.C. Code, sec. 47–2501d).</content> </appropriations> </appropriations> <page identifier="/us/stat/95/77">95 STAT. 77</page> <appropriations level="intermediate"> <heading>District of Columbia Funds</heading> <appropriations level="small"> <heading>governmental direction and support</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for “Governmental direction and support” for fiscal year 1981 in Public Law 96–530, $3,665,500 are<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3122">94 Stat. 3122</ref>.</p></sidenote> rescinded: <proviso> <i>Provided</i>, That outstanding settlements of claims and suits not to exceed $200,000 in total shall be paid in the same manner as judgments rendered against the District of Columbia government</proviso>.</content> </appropriations> <appropriations level="small"> <heading>economic development and regulation</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for “Economic development and regulation” for fiscal year 1981 in Public Law 96–530, $40,500 are rescinded.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3122">94 Stat. 3122</ref>.</p></sidenote> </content> </appropriations> <appropriations level="small"> <heading>public safety and justice</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Public safety and justice”, $3,394,000.</content> </appropriations> <appropriations level="small"> <heading>public education system</heading> <subheading>(including rescissions)</subheading> <content class="firstIndent1 fontsize10">For an additional amount for “Public education system”, $2,970,000, to be allocated as follows: $1,100,000 for the District of Columbia Public Schools, and $1,870,000 for the School Transit Subsidy: <proviso> <i>Provided</i>, That of the funds appropriated under this heading for the Public Library for fiscal year 1981 in Public Law 96–530,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3123">94 Stat. 3123</ref>.</p></sidenote> $298,800 are rescinded</proviso>: <proviso> <i>Provided further</i>, That of the funds appropriated under this heading for the Commission on the Arts and Humanities for fiscal year 1981 in Public Law 96–530, $5,000 are rescinded</proviso>: <proviso> <i>Provided further</i>, That of the funds appropriated under this heading for the Educational Institution Licensure Commission for fiscal year 1981 in Public Law 96–530, $3,500 are rescinded</proviso>.</content> </appropriations> <appropriations level="small"> <heading>human support services</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Human support services”, $20,754,100: <proviso> <i>Provided</i>, That $3,500,000 of this appropriation, to remain available until expended, shall be available solely for District of Columbia employees’ disability compensation</proviso>.</content> </appropriations> <appropriations level="small"> <heading>transportation services and assistance</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for “Transportation services and assistance” for fiscal year 1981 in Public Law 96–530, $3,031,600 are <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3124">94 Stat. 3124</ref>.</p></sidenote> rescinded.</content> </appropriations> <page identifier="/us/stat/95/78">95 STAT. 78</page> <appropriations level="small"> <heading>environmental services and supply</heading> <subheading>(rescission)</subheading> <content class="firstIndent1 fontsize10">Of the funds appropriated for “Environmental services and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3124">94 Stat. 3124</ref>.</p></sidenote>supply” for fiscal year 1981 in Public Law 96–530, $121,600 are rescinded.</content> </appropriations> <appropriations level="small"> <heading>water and sewer enterprise fund</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Water and Sewer Enterprise Fund”, $3,017,800.</content> </appropriations> <appropriations level="small"> <heading>washington convention center enterprise fund</heading> <content class="firstIndent1 fontsize10">For establishment of the Washington Convention Center Enterprise Fund, $382,600.</content> </appropriations> <appropriations level="small"> <heading>capital outlay</heading> <content class="firstIndent1 fontsize10">For an additional amount for “Capital outlay”, $696,000.</content> </appropriations> </appropriations> </chapter> <num value="II">TITLE II </num> <heading class="centered">INCREASED PAY COSTS FOR THE FISCAL YEAR 1981</heading> <chapeau>For additional amounts for appropriations for the fiscal year 1981, for increased pay costs authorized by or pursuant to law as follows:</chapeau> <appropriations level="major"> <heading>LEGISLATIVE BRANCH</heading> <appropriations level="intermediate"> <heading>Senate</heading> <content> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Salaries, officers and employees”, $11,740,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Office of the Legislative Counsel of the Senate”, $80,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Office of Senate Legal Counsel”, $40,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Senate Policy Committees”, $131,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Inquiries and investigations”, $1,627,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Folding documents”, $11,000;</listContent></listItem> </list> </content> </appropriations> <appropriations level="intermediate"> <heading>House of Representatives</heading> <content> <list> <listItem><listContent class="indent1 fontsize10 depth0">“House leadership offices”, $147,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Salaries, officers and employees”, $2,193,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Committee employees”, $2,225,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Committee on Appropriations (studies and investigations)”, $161,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Office of Law Revision Counsel”, $11,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Office of the Legislative Counsel”, $105,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Members’ clerk hire”, $11,540,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Allowances and expenses”, $2,155,000;</listContent></listItem> </list> </content> </appropriations> <appropriations level="intermediate"> <heading>Joint Items</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">“Joint Economic Committee”, $57,000, and in addition, $43,000 to be derived by release of that amount withheld from obligation by the Secretary of the Senate pursuant to section 309 of H.R. 7593 as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>provided by section 101(c) of Public Law 96–536;</p> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Joint Committee on Taxation”, $127,000;<page identifier="/us/stat/95/79">95 STAT. 79</page></listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Education of Pages”, $9,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Capitol Guide Service”, $67,000;</listContent></listItem> </list> </content> </appropriations> <appropriations level="intermediate"> <heading>Office of Technology Assessment</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $83,000, and in addition, $220,000 to be derived by release of that amount withheld from obligation by the Director of the Office of Technology Assessment pursuant to section 309 of H.R. 7593 as provided by section 101(c) of Public Law 96–536;<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> </content> </appropriations> <appropriations level="intermediate"> <heading>Congressional Budget Office</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $133,000, and in addition, $248,000 to be derived by release of that amount withheld from obligation by the Director of the Congressional Budget Office pursuant to section 309 of H.R. 7593 as provided by section 101(c) of Public Law 96–536;</content> </appropriations> <appropriations level="intermediate"> <heading>Architect of the Capitol</heading> <appropriations level="small"> <heading>(including transfer of funds)</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">Office of the Architect of the Capitol: “Salaries”, $106,000, and in addition, $50,000 to be derived by release of that amount withheld from obligation by the Architect of the Capitol pursuant to section 309 of H.R. 7593 as provided by section 101(c) of Public Law 96–536;</p> <p class="indent0 firstIndent1 fontsize10">“Capitol buildings”, $101,000, and in addition, $50,000 to be derived by release of that amount withheld from obligation by the Architect of the Capitol pursuant to section 309 of H.R. 7593 as provided by section 101(c) of Public Law 96–536; and $132,000 to be derived by transfer from the appropriation “Capitol power plant” by release of that amount withheld from obligation by the Architect of the Capitol pursuant to section 309 of H.R. 7593 as provided by section 101(c) of Public Law 96–536;</p> <p class="indent0 firstIndent1 fontsize10">“Capitol grounds”, $127,000;</p> <p class="indent0 firstIndent1 fontsize10">“Senate office buildings”, $448,000;</p> <p class="indent0 firstIndent1 fontsize10">“House office buildings”, $318,000, of which $118,000 to be derived by release of that amount withheld from obligation by the Architect of the Capitol pursuant to section 311 of Public Law 95–391 and<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/92/790">92 Stat. 790</ref>.</p></sidenote> $200,000 to be derived by release of that amount withheld from obligation by the Architect of the Capitol pursuant to section 309 of H.R. 7593 as provided by section 101(c) of Public Law 96–536; and $339,000 to be derived by transfer from the appropriation “Capitol power plant” by release of that amount withheld from obligation by the Architect of the Capitol pursuant to section 309 of H.R. 7593 as provided by section 101(c) of Public Law 96–536;</p> <p class="indent0 firstIndent1 fontsize10">“Capitol power plant”, $73,000, and in addition, $50,000 to be derived by release of that amount withheld from obligation by the Architect of the Capitol pursuant to section 309 of H.R. 7593 as provided by section 101(c) of Public Law 96–536;</p> <p class="indent0 firstIndent1 fontsize10">“Library buildings and grounds: Structural and mechanical care”, $250,000 to be derived by release of that amount withheld from obligation by the Architect of the Capitol pursuant to section 309 of H.R. 7593 as provided by section 101(c) of Public Law 96–536;</p> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Botanic Garden</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $56,000;</content> </appropriations> <page identifier="/us/stat/95/80">95 STAT. 80</page> <appropriations level="intermediate"> <heading>Library of Congress</heading> <appropriations level="small"> <heading>(including transfer of funds)</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">“Salaries and expenses”, $2,908,000, and in addition, $883,600 to be derived by release of that amount withheld from obligation by the Librarian of Congress pursuant to section 309 of H.R. 7593 as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>provided by section 101(c) of Public Law 96–536; $1,446,350 to be derived by transfer from the appropriation “Books for the blind and physically handicapped: Salaries and expenses” by release of that amount withheld from obligation by the Librarian of Congress pursuant to section 309 of H.R. 7593 as provided by section 101(c) of Public Law 96–536; and $88,750 to be derived by transfer from the appropriation “Furniture and furnishings” by release of that amount withheld from obligation by the Librarian of Congress pursuant to section 309 of H.R. 7593 as provided by section 101(c) of Public Law 96–536;</p> <p class="indent0 firstIndent1 fontsize10">Copyright Office: “Salaries and expenses”, $655,000, and in addition, $200,300 to be derived by release of that amount withheld from obligation by the Librarian of Congress pursuant to section 309 of H.R. 7593 as provided by section 101(c) of Public Law 96–536;</p> <p class="indent0 firstIndent1 fontsize10">Congressional Research Service: “Salaries and expenses”, $1,033,000, and in addition, $573,000 to be derived by release of that amount withheld from obligation by the Librarian of Congress pursuant to section 309 of H.R. 7593 as provided by section 101(c) of Public Law 96–536;</p> <p class="indent0 firstIndent1 fontsize10">Books for the Blind and Physically Handicapped: “Salaries and expenses”, $219,000 to be derived by release of that amount withheld from obligation by the Librarian of Congress pursuant to section 309 of H.R. 7593 as provided by section 101(c) of Public Law 96–536;</p> <p class="indent0 firstIndent1 fontsize10">“Collection and distribution of library materials (Special Foreign Currency Program)”, $21,000, to remain available until expended;</p> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>General Accounting Office</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $10,602,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Government Printing Office</heading> <content class="firstIndent1 fontsize10">Office of Superintendent of Documents: “Salaries and expenses”, $200,000;</content> </appropriations> </appropriations> <appropriations level="major"> <heading>THE JUDICIARY</heading> <appropriations level="intermediate"> <heading>Supreme Court of the United States</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $700,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Court of Customs and Patent Appeals</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $72,000;</content> </appropriations> <appropriations level="intermediate"> <heading>U.S. Court of International Trade</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $114,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Court of Claims</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $267,000;</content> </appropriations> <page identifier="/us/stat/95/81">95 STAT. 81</page> <appropriations level="intermediate"> <heading>Court of Appeals, District Courts, and other Judicial Services</heading> <appropriations level="small"> <heading>(including transfer of funds)</heading> <content> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Salaries of judges”, $1,500,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Salaries of supporting personnel”, $18,750,000 of which $12,500,000 is to be derived by transfer from “Space and facilities”;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Salaries and expenses of magistrates”, $700,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Bankruptcy Courts, salaries and expenses”, $3,500,000;</listContent></listItem> </list> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Administrative Office of the United States Courts</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $875,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Federal Judicial Center</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $222,000;</content> </appropriations> </appropriations> <appropriations level="major"> <heading>EXECUTIVE OFFICE OF THE PRESIDENT</heading> <appropriations level="intermediate"> <heading>White House Office</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $905,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Executive Residence at the White House</heading> <content class="firstIndent1 fontsize10">“Operating expenses”, $218,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Special Assistance to the President</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $60,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Council of Economic Advisers</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $34,000;</content> </appropriations> <appropriations level="intermediate"> <heading>National Security Council</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $171,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Office of Administration</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $200,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Office of Management and Budget</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $1,416,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Office of Federal Procurement Policy</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $128,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Office of the United States Trade Representative</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $260,000;</content> </appropriations> </appropriations> <page identifier="/us/stat/95/82">95 STAT. 82</page> <appropriations level="major"> <heading>FUNDS APPROPRIATED TO THE PRESIDENT</heading> <appropriations level="intermediate"> <heading>International Development Assistance</heading> <content class="firstIndent1 fontsize10">“Operating expenses of the International Development Cooperation Agency”, $10,408,000; of which not to exceed $5,540,000 shall be for operating expenses, Agency for International Development—Washington, and $114,000 shall be for operating, administrative expenses, International Development Cooperation Agency;</content> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF AGRICULTURE</heading> <content> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Office of the Secretary”, $416,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Departmental Administration”, for budget, planning and evaluation, and public participation, $125,000; and for operations and finance, personnel, equal opportunity, safety and health management, management analysis, and small and disadvantaged business utilization, $579,000; making a total of $704,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Office of Governmental and Public Affairs”, $42,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Office of the General Counsel”, $910,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Office of the Inspector General”, $700,000;</listContent></listItem> </list> </content> </appropriations> <appropriations level="intermediate"> <heading>Science and Education Administration</heading> <content> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Agricultural research”, $10,464,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Extension activities”, $136,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Technical information systems”, $281,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Economics and Statistics Service”, $2,951,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Foreign Agricultural Service”, $281,000;</listContent></listItem> </list> </content> </appropriations> <appropriations level="intermediate"> <heading>Agricultural Stabilization and Conservation Service</heading> <appropriations level="small"> <heading>(including transfer of funds)</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $13,163,000. In addition, not to exceed an additional $6,831,000 may be transferred to and merged with this appropriation from the Commodity Credit Corporation fund;</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Rural Electrification Administration</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $590,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Farmers Home Administration</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $7,513,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Soil Conservation Service</heading> <content> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Conservation operations”, $18,862,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“River basin surveys and investigations”, $881,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Watershed planning”, $813,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Great Plains Conservation Program”, $664,000 to remain available until expended;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Animal and Plant Health Inspection Service”, $9,880,000;</listContent></listItem> </list> </content> </appropriations> <appropriations level="intermediate"> <heading>Federal Grain Inspection Service</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $605,000;</content> </appropriations> <page identifier="/us/stat/95/83">95 STAT. 83</page> <appropriations level="intermediate"> <heading>Agricultural Marketing Service</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">“Marketing services”, $1,773,000;</p> <p class="indent0 firstIndent1 fontsize10">“Food Safety and Quality Service”, $17,788,000; “Funds for strengthening markets, income and supply (section 32)”, (increase of $340,000 in the limitation, “marketing agreements and orders”);</p> </content> </appropriations> <appropriations level="intermediate"> <heading>Food and Nutrition Service</heading> <content class="firstIndent1 fontsize10">“Food program administration”, $592,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Forest Service</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">“Forest research”, $5,612,000;</p> <p class="indent0 firstIndent1 fontsize10">“State and private forestry”, $1,068,000, of which $1,053,000 shall remain available for obligation until September 30, 1982, to carry out activities authorized in Public Law 95–313;<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/92/365">92 Stat. 365</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s2101">16 USC 2101 note</ref>.</p></sidenote> </p> <p class="indent0 firstIndent1 fontsize10">“National forest system”, $41,436,000, of which $7,536,000 for reforestation and stand improvement, cooperative law enforcement, and maintenance of forest roads and trails shall remain available for obligation until September 30, 1982;</p> <p class="indent0 firstIndent1 fontsize10">“Construction and land acquisition”, $11,378,000 to remain available until expended;</p> </content> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF COMMERCE</heading> <appropriations level="intermediate"> <heading>General Administration</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $1,100,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Bureau of the Census</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">“Salaries and expenses”, $2,600,000;</p> <p class="indent0 firstIndent1 fontsize10">“Periodic censuses and programs”, $7,200,000, to remain available until expended;</p> </content> </appropriations> <appropriations level="intermediate"> <heading>Economic and Statistical Analysis</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $890,000;</content> </appropriations> <appropriations level="intermediate"> <heading>International Trade Administration</heading> <content class="firstIndent1 fontsize10">“Operations and administration”, $1,700,000, to remain available until expended;</content> </appropriations> <appropriations level="intermediate"> <heading>National Oceanic and Atmospheric Administration</heading> <appropriations level="small"> <heading>(including transfer of funds)</heading> <content class="firstIndent1 fontsize10">“Operations, research, and facilities”, $20,716,000, to remain available until expended, of which $2,500,000 shall be derived by transfer from “Promote and develop fishery products and research pertaining to American fisheries”;</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Patent and Trademark Office</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $3,600,000;</content> </appropriations> <page identifier="/us/stat/95/84">95 STAT. 84</page> <appropriations level="intermediate"> <heading>Maritime Administration</heading> <content class="firstIndent1 fontsize10">“Operations and training”, $450,000, to remain available until expended;</content> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF DEFENSE—MILITARY</heading> <appropriations level="intermediate"> <heading>Military Personnel</heading> <content> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Military personnel, Army”, $1,079,432,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Military personnel, Navy”, $745,583,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Military personnel, Marine Corps”, $236,714,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Military personnel, Air Force”, $885,362,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Reserve personnel, Army”, $70,950,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Reserve personnel, Navy”, $16,755,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Reserve personnel, Marine Corps”, $9,333,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Reserve personnel, Air Force”, $18,386,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“National Guard personnel, Army”, $104,803,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“National Guard personnel, Air Force”, $34,437,000;</listContent></listItem> </list> </content> </appropriations> <appropriations level="intermediate"> <heading>Operation and Maintenance</heading> <content> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Operation and maintenance, Army”, $391,600,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Operation and maintenance, Navy”, $431,800,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Operation and maintenance, Marine Corps”, $21,100,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Operation and maintenance, Air Force”, $291,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Operation and maintenance, Defense Agencies”, $212,348,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Operation and maintenance, Army Reserve”, $19,100,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Operation and maintenance, Navy Reserve”, $5,000,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Operation and maintenance, Air Force Reserve”, $17,900,000:</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Operation and maintenance, Army National Guard”, $41,800,000:</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Operation and maintenance, Air National Guard”, $41,400,000:</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“National Board for the Promotion of Rifle Practice, Army”, $20,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Court of Military Appeals, Defense”, $113,000;</listContent></listItem> </list> </content> </appropriations> <appropriations level="intermediate"> <heading>Family Housing</heading> <content class="firstIndent1 fontsize10">“Family housing, Defense”, $17,938,000 (and an increase of $17,938,000 in the limitation on Department of Defense, operation, maintenance);</content> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF DEFENSE—CIVIL</heading> <appropriations level="intermediate"> <heading>Soldiers’ and Airmen’s Home</heading> <content class="firstIndent1 fontsize10">“Operation and maintenance”, $1,074,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Corps of Engineers—Civil</heading> <content> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Construction general”, $8,150,000, to remain available until expended;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Operation and maintenance general”, $31,300,000, to remain available until expended;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“General expenses”, $5,600,000;</listContent></listItem> </list> </content> </appropriations> </appropriations> <page identifier="/us/stat/95/85">95 STAT. 85</page> <appropriations level="major"> <heading>DEPARTMENT OF EDUCATION</heading> <appropriations level="intermediate"> <heading>Departmental Management</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $2,497,000;</content> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF ENERGY</heading> <content> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Fossil energy research and development”, $1,518,000, to remain available until expended;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Energy production, demonstration, and distribution”, $599,000, to remain available until expended;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Energy conservation”, $348,000, to remain available until expended;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Economic regulation”, $6,012,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Strategic petroleum reserve”, $507,000 to remain available until expended;</listContent></listItem> </list> </content> </appropriations> <appropriations level="intermediate"> <heading>Departmental Administration</heading> <content class="firstIndent1 fontsize10">“General administration”, $4,240,000 to remain available until expended;</content> </appropriations> <appropriations level="intermediate"> <heading>Federal Energy Regulatory Commission</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $1,000,000;</content> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF HEALTH AND HUMAN SERVICES</heading> <appropriations level="intermediate"> <heading>Food and Drug Administration</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $5,890,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Health Services Administration</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">“Health services”, $5,310,000;</p> <p class="indent0 firstIndent1 fontsize10">“Indian health services”, $12,556,000;</p> </content> </appropriations> <appropriations level="intermediate"> <heading>Center for Disease Control</heading> <content class="firstIndent1 fontsize10">“Preventive health services”, $2,000,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Alcohol, Drug Abuse, and Mental Health Administration</heading> <content class="firstIndent1 fontsize10">“Saint Elizabeths Hospital”, $4,591,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Health Resources Administration</heading> <appropriations level="small"> <heading>(transfer of funds)</heading> <content class="firstIndent1 fontsize10">“Health resources”, $3,062,000, to be derived by transfer from unobligated regional medical program, physician shortage area scholarship, and health professions teaching facilities construction funds prodded under Public Laws 93–50, 93–192, and 94–303;<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/87/99/746">87 Stat. 99, 746</ref>;</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/90/610">90 Stat. 610</ref>.</p></sidenote> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Health Care Financing Administration</heading> <content class="firstIndent1 fontsize10">“Program management”, $3,000,000 to be derived by transfer from the “Federal Hospital Insurance Trust Fund” and the “Federal Supplementary Medical Insurance Trust Fund”;</content> </appropriations> <page identifier="/us/stat/95/86">95 STAT. 86</page> <appropriations level="intermediate"> <heading>Social Security Administration</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">“Limitation on administrative expenses” (increase of $90,000,000 in the limitation on salaries and expenses paid from the trust funds and the supplemental security income program);</p> <p class="indent0 firstIndent1 fontsize10">“Supplemental security income”, $25,000,000;</p> </content> </appropriations> <appropriations level="intermediate"> <heading>Office of Human Development Services</heading> <content class="firstIndent1 fontsize10">“Human development services”, $1,116,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Departmental Management</heading> <appropriations level="small"> <heading>(transfer of funds)</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">“General departmental management”, $8,300,000, of which $3,800,000 is to be derived by transfer from “Office of the Inspector General” and $700,000 is to be derived by transfer from “Policy research” and $3,800,000 is to be derived by transfer from “Social Security Administration, limitation on administrative expenses”;</p> <p class="indent0 firstIndent1 fontsize10">“Office of Consumer Affairs”, $100,000;</p> </content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT</heading> <appropriations level="intermediate"> <heading>Management and Administration</heading> <appropriations level="small"> <heading>(including transfer of funds)</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $20,494,000, of which $14,494,000 shall be derived by transfer from various funds of the Federal Housing Administration;</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF THE INTERIOR</heading> <appropriations level="intermediate"> <heading>Bureau of Land Management</heading> <content class="firstIndent1 fontsize10">“Management of lands and resources”, $7,568,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Water and Power Resources Service</heading> <appropriations level="small"> <heading>(including transfer of funds)</heading> <content> <list> <listItem><listContent class="indent1 fontsize10 depth0">“General investigations”, $1,400,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Operation and maintenance”, $5,200,000, of which $379,000 shall be derived from the Colorado River Dam Fund;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Construction program”, $5,474,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“General administrative expenses”, $2,350,000;</listContent></listItem> </list> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>U.S. Fish and Wildlife Service</heading> <content class="firstIndent1 fontsize10">“Resource management”, $5,864,000;</content> </appropriations> <appropriations level="intermediate"> <heading>National Park Service</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">“Operation of the national park system”, $9,437,000;</p> <p class="indent0 firstIndent1 fontsize10">“Land and water conservation fund”, of the amount heretofore appropriated under this heading, an additional amount of $413,000 shall be available for administrative expenses of the Heritage Conservation and Recreation Service;</p> <page identifier="/us/stat/95/87">95 STAT. 87</page> <p class="indent0 firstIndent1 fontsize10">“John F. Kennedy Center for the Performing Arts”, $141,000;</p> </content> </appropriations> <appropriations level="intermediate"> <heading>Geological Survey</heading> <content class="firstIndent1 fontsize10">“Surveys, investigations, and research”, $13,864,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Bureau of Mines</heading> <content class="firstIndent1 fontsize10">“Mines and minerals”, $2,891,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Bureau of Indian Affairs</heading> <content class="firstIndent1 fontsize10">“Operation of Indian programs”, $18,051,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Office of Territorial Affairs</heading> <appropriations level="small"> <heading>(including transfer of funds)</heading> <content class="firstIndent1 fontsize10">“Trust Territory of the Pacific Islands”, $168,000, of which $73,000 is to be derived by transfer from Office of Territorial Affairs, “Administration of territories”;</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Office of the Solicitor</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $1,032,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Office of the Secretary</heading> <content> <list> <listItem><listContent class="indent1 fontsize10 depth0">“Departmental management”, $1,536,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Construction management”, $39,000;</listContent></listItem> <listItem><listContent class="indent1 fontsize10 depth0">“Inspector General”, $472,000;</listContent></listItem> </list> </content> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF JUSTICE</heading> <appropriations level="intermediate"> <heading>General Administration</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $1,400,000;</content> </appropriations> <appropriations level="intermediate"> <heading>United States Parole Commission</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $275,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Legal Activities</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">“Salaries and expenses, general legal activities”, $6,400,000;</p> <p class="indent0 firstIndent1 fontsize10">“Salaries and expenses, Foreign Claims Settlement Commission”, $22,000;</p> <p class="indent0 firstIndent1 fontsize10">“Salaries and expenses, United States Attorneys and Marshals”, $8,500,000: <proviso> <i>Provided</i>, That amounts provided for the processing and detention of Cuban nationals under title VII of H.R. 7584, as incorporated into Public Law 96–536 are available to pay other expenses<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote> under this head</proviso>;</p> <p class="indent0 firstIndent1 fontsize10">“Salaries and expenses, Community Relations Service”, $270,000;</p> </content> </appropriations> <appropriations level="intermediate"> <heading>Federal Bureau of Investigation</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $38,800,000;</content> </appropriations> <page identifier="/us/stat/95/88">95 STAT. 88</page> <appropriations level="intermediate"> <heading>Immigration and Naturalization Service</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $11,600,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Drug Enforcement Administration</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $8,500,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Federal Prison System</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">“Salaries and expenses”, $7,465,000;</p> <p class="indent0 firstIndent1 fontsize10">“Limitation on administrative and vocational training expenses, Federal Prison Industries, Incorporated” (increase of $101,000 in the limitation on Administrative expenses; and $179,000 on Vocational expenses);</p> </content> </appropriations> <appropriations level="intermediate"> <heading>Office of Justice Assistance, Research, and Statistics</heading> <content class="firstIndent1 fontsize10">“Research and statistics”, $800,000;</content> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF LABOR</heading> <subheading>(including transfer of funds)</subheading> <appropriations level="intermediate"> <heading>Employment and Training Administration</heading> <content class="firstIndent1 fontsize10">“Program administration”, $5,064,000, to be derived by transfer from “Employment and training assistance”, together with not to exceed $1,425,000 which may be expended from the Employment Security Administration account in the Unemployment Trust Fund, and of which $396,000 shall be for carrying into effect the provisions of 38 U.S.C. 2001–03;</content> </appropriations> <appropriations level="intermediate"> <heading>Labor-Management Services Administration</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $1,915,000 to be derived by transfer from Employment and Training Administration, “Employment and training assistance”;</content> </appropriations> <appropriations level="intermediate"> <heading>Occupational Safety and Health Administration</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $3,090,000 to be derived by transfer from Employment and Training Administration, “Employment and training assistance”;</content> </appropriations> <appropriations level="intermediate"> <heading>Mine Safety and Health Administration</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $4,475,000 to be derived by transfer from Employment and Training Administration, “Employment and training assistance”;</content> </appropriations> <appropriations level="intermediate"> <heading>Bureau of Labor Statistics</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $4,917,000 to be derived by transfer from Employment and Training Administration, “Employment and training assistance”;</content> </appropriations> <page identifier="/us/stat/95/89">95 STAT. 89</page> <appropriations level="intermediate"> <heading>Departmental Management</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $829,000, to be derived by transfer from Employment and Training Administration, “Employment and training assistance”, together with not to exceed $60,000 to be derived by transfer from the Employment Security Administration account, Unemployment Trust Fund;</content> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF STATE</heading> <appropriations level="intermediate"> <heading>Administration of Foreign Affairs</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $17,200,000;</content> </appropriations> <appropriations level="intermediate"> <heading>International Commissions</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">International Boundary and Water Commission, United States and Mexico:</p> <p class="indent0 firstIndent1 fontsize10">“Salaries and expenses”, $329,000;</p> <p class="indent0 firstIndent1 fontsize10">“American sections, international commissions”, $25,000;</p> </content> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF TRANSPORTATION</heading> <appropriations level="intermediate"> <heading>Office of the Secretary</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">“Salaries and expenses”, $527,000;</p> <p class="indent0 firstIndent1 fontsize10">“Limitation on working capital fund” (increase of $1,000,000 in the limitation on Working Capital Fund);</p> </content> </appropriations> <appropriations level="intermediate"> <heading>Coast Guard</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">“Operating expenses”, $48,520,000;</p> <p class="indent0 firstIndent1 fontsize10">“Reserve training”, $3,476,000;</p> </content> </appropriations> <appropriations level="intermediate"> <heading>Federal Aviation Administration</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">“Operations”, $106,880,000;</p> <p class="indent0 firstIndent1 fontsize10">“Operation and maintenance, metropolitan Washington airports”, $623,000;</p> </content> </appropriations> <appropriations level="intermediate"> <heading>Federal Highway Administration</heading> <appropriations level="small"> <heading>(including transfer of funds)</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">“Motor carrier safety”, $555,000, to be derived by transfer from “Baltimore-Washington Parkway”;</p> <p class="indent0 firstIndent1 fontsize10">“Limitation on general operating expenses” (increase of $5,000,000; in the limitation on general operating expenses);</p> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Federal Railroad Administration</heading> <content class="firstIndent1 fontsize10">“Office of the Administrator”, $368,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Urban Mass Transportation Administration</heading> <appropriations level="small"> <heading>(transfer of funds)</heading> <content class="firstIndent1 fontsize10">“Administrative expenses”, $1,000,000, to be derived by transfer from “Research and special programs” appropriation;</content> </appropriations> </appropriations> <page identifier="/us/stat/95/90">95 STAT. 90</page> <appropriations level="intermediate"> <heading>Saint Lawrence Seaway Development Corporation</heading> <content class="firstIndent1 fontsize10">“Limitation on administrative expenses, Saint Lawrence Seaway Development Corporation” (increase of $45,000 in the limitation on administrative expenses)”;</content> </appropriations> <appropriations level="intermediate"> <heading>Office of the Inspector General</heading> <appropriations level="small"> <heading>(transfer of funds)</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $385,000 to be derived from funds available under 23 U.S.C. 104(a) for payment of obligations;</content> </appropriations> </appropriations> </appropriations> <appropriations level="major"> <heading>DEPARTMENT OF THE TREASURY</heading> <appropriations level="intermediate"> <heading>Office of the Secretary</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">“Salaries and expenses”, $1,507,000;</p> <p class="indent0 firstIndent1 fontsize10">“International affairs”, $163,000;</p> </content> </appropriations> <appropriations level="intermediate"> <heading>Office of Revenue Sharing</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $216,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Federal Law Enforcement Training Center</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $248,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Bureau of Government Financial Operations</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">“Salaries and expenses”, $3,741,000;</p> <p class="indent0 firstIndent1 fontsize10">“Chrysler Corporation loan guarantee program”, $29,000;</p> </content> </appropriations> <appropriations level="intermediate"> <heading>Bureau of Alcohol, Tobacco and Firearms</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $5,550,000;</content> </appropriations> <appropriations level="intermediate"> <heading>United States Customs Service</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $16,468,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Bureau of the Mint</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $946,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Internal Revenue Service</heading> <appropriations level="small"> <heading>(including transfer of funds)</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">“Salaries and expenses”, $7,008,000, of which $4,686,000 is to be derived from “Admmistering the Public Debt”;</p> <p class="indent0 firstIndent1 fontsize10">“Taxpayer service and returns processing”, $34,767,000;</p> <p class="indent0 firstIndent1 fontsize10">“Examinations and appeals”, $47,008,000;</p> <p class="indent0 firstIndent1 fontsize10">“Investigation and collections”, $32,960,000;</p> </content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>United States Secret Service</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $9,710,000;</content> </appropriations> </appropriations> <page identifier="/us/stat/95/91">95 STAT. 91</page> <appropriations level="major"> <heading>ENVIRONMENTAL PROTECTION AGENCY</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $6,165,000;</content> </appropriations> <appropriations level="major"> <heading>NATIONAL AERONAUTICS AND SPACE ADMINISTRATION</heading> <content class="firstIndent1 fontsize10">“Research and program management”, $41,400,000;</content> </appropriations> <appropriations level="major"> <heading>VETERANS ADMINISTRATION</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">“Medical care”, $265,205,000;</p> <p class="indent0 firstIndent1 fontsize10">“Medical and prosthetic research”, $7,917,000, to remain available until September 30, 1982;</p> <p class="indent0 firstIndent1 fontsize10">“Medical administration and miscellaneous operating expenses”, $1,591,000;</p> <p class="indent0 firstIndent1 fontsize10">“General operating expenses”, $15,659,000;</p> </content> </appropriations> <appropriations level="major"> <heading>OTHER INDEPENDENT AGENCIES</heading> <appropriations level="intermediate"> <heading>Action</heading> <content class="firstIndent1 fontsize10">“Operating expenses, domestic programs”, $230,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Administrative Conference of the United States</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $67,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Advisory Council on Historic Preservation</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $67,000;</content> </appropriations> <appropriations level="intermediate"> <heading>American Battle Monuments Commission</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $797,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Civil Aeronautics Board</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $775,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Commission of Fine Arts</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses“, $13,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Commission on Civil Rights</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $300,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Committee for Purchase From the Blind and Other Severely Handicapped</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $26,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Commodity Futures Trading Commission</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $815,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Equal Employment Opportunity Commission</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $1,200,000;</content> </appropriations> <page identifier="/us/stat/95/92">95 STAT. 92</page> <appropriations level="intermediate"> <heading>Export-Import Bank of the United States</heading> <content class="firstIndent1 fontsize10">“Limitation on administrative expenses” (increase of $366,000 in the limitation on administrative expenses);</content> </appropriations> <appropriations level="intermediate"> <heading>Farm Credit Administration</heading> <content class="firstIndent1 fontsize10">“Limitation on administrative expenses” (increase of $688,000 in the limitation on administrative expenses);</content> </appropriations> <appropriations level="intermediate"> <heading>Federal Communications Commission</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $3,437,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Federal Election Commission</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $379,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Federal Home Loan Bank Board</heading> <content class="firstIndent1 fontsize10">“Limitation on administrative and nonadministrative expenses, Federal Home Loan Bank Board” (increase of $1,000,000 in the limitation on administrative expenses and an increase of $1,400,000 in the limitation on nonadministrative expenses);</content> </appropriations> <appropriations level="intermediate"> <heading>Federal Labor Relations Authority</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $622,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Federal Maritime Commission</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $100,000;</content> </appropriations> <appropriations level="intermediate"> <heading>General Services Administration</heading> <appropriations level="small"> <heading>federal buildings fund</heading> <content class="firstIndent1 fontsize10">Limitations on availability of revenue: In addition to the aggregate amount heretofore made available for real property management and related activities in fiscal year 1981, $19,470,000 shall be available for such purposes and the limitation on the amount available for real property operations is increased to $551,144,000 and the limitation on the amount available for program direction and centralized services is increased to $82,179,000: Any revenues and collections and any other sums accruing to this fund during fiscal year 1981, excluding reimbursements under section 210(f)(6) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 490(f)(6)), in excess of $1,617,489,000 shall remain in the Fund and shall not be available for expenditure except as authorized in appropriation Acts;</content> </appropriations> <appropriations level="small"> <heading>federal supply service</heading> <subheading>(including transfer of funds)</subheading> <content class="firstIndent1 fontsize10">“Operating expenses”, $5,948,000, of which $444,000 shall be derived by transfer from the appropriation for “Office of Inspector General”;</content> </appropriations> <page identifier="/us/stat/95/93">95 STAT. 93</page> <appropriations level="small"> <heading>transportation and public utilities service</heading> <content class="firstIndent1 fontsize10">“Operating expenses”, $830,000;</content> </appropriations> <appropriations level="small"> <heading>national archives and records service</heading> <subheading>(including transfer of funds)</subheading> <content class="firstIndent1 fontsize10">“Operating expenses”, $1,899,000, of which $50,000 shall be derived by transfer from the appropriation for “Consumer Information Center” and $8,000 shall be derived by transfer from the appropriation for “Allowances and office staff for former Presidents”;</content> </appropriations> <appropriations level="small"> <heading>automated data and telecommunications service</heading> <content class="firstIndent1 fontsize10">“Operating expenses”, $498,000;</content> </appropriations> <appropriations level="small"> <heading>federal property resources service</heading> <content class="firstIndent1 fontsize10">“Operating expenses”, $1,189,000;</content> </appropriations> <appropriations level="small"> <heading>general management and administration</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $3,981,000;</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Intelligence Community Staff</heading> <content class="firstIndent1 fontsize10">“Intelligence Community Staff”, $447,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Intergovernmental Agencies</heading> <appropriations level="small"> <heading>advisory commission on intergovernmental relations</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $72,000;</content> </appropriations> <appropriations level="small"> <heading>delaware river basin commission</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $3,000;</content> </appropriations> <appropriations level="small"> <heading>susquehanna river basin commission</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $3,000;</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>International Communication Agency</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $9,846,000;</content> </appropriations> <appropriations level="intermediate"> <heading>International Trade Commission</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $500,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Merit Systems Protection Board</heading> <content class="firstIndent1 fontsize10">“Office of the Special Counsel”, $140,000;</content> </appropriations> <appropriations level="intermediate"> <heading>National Capital Planning Commission</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $130,000;</content> </appropriations> <page identifier="/us/stat/95/94">95 STAT. 94</page> <appropriations level="intermediate"> <heading>National Foundation on the Arts and the Humanities</heading> <appropriations level="small"> <heading>national endowment for the arts</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $235,000;</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>National Labor Relations Board</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $2,913,000;</content> </appropriations> <appropriations level="intermediate"> <heading>National Science Foundation</heading> <content class="firstIndent1 fontsize10">“Research and related activities”, $4,759,000, to remain available until September 30, 1982 (and an increase of $759,000 in the limitation on program development and management);</content> </appropriations> <appropriations level="intermediate"> <heading>National Transportation Safety Board</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $240,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Office of Personnel Management</heading> <appropriations level="small"> <heading>(including transfer of funds)</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $2,633,000 together with an additional amount of $1,808,000 for current fiscal year administration expenses for the retirement and insurance programs to be transferred from the appropriate trust funds of the Office of Personnel Management in amounts to be determined by the Office of Personnel Management without regard to other statutes;</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Panama Canal Commission</heading> <content class="firstIndent1 fontsize10">“Operating expenses”, $27,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Railroad Retirement Board</heading> <content class="firstIndent1 fontsize10">“Limitation on administration”, (increase of $1,044,000 in limitation on administration paid from the railroad retirement account);</content> </appropriations> <appropriations level="intermediate"> <heading>Securities and Exchange Commission</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $3,850,000;</content> </appropriations> <appropriations level="intermediate"> <heading>Smithsonian Institution</heading> <content class="firstIndent1 fontsize10"> <p class="indent0 firstIndent1 fontsize10">“Salaries and expenses”, $4,613,000;</p> <p class="indent0 firstIndent1 fontsize10">“Salaries and expenses, National Gallery of Art”, $337,000;</p> <p class="indent0 firstIndent1 fontsize10">“Salaries and expenses, Woodrow Wilson International Center for Scholars”, $35,000;</p> </content> </appropriations> <appropriations level="intermediate"> <heading>Navajo and Hopi Relocation Commission</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $57,000;</content> </appropriations> <appropriations level="intermediate"> <heading>United States Tax Court</heading> <content class="firstIndent1 fontsize10">“Salaries and expenses”, $446,000.</content> </appropriations> </appropriations> 95 STAT. 95 <num value="III">TITLE III </num> <heading class="centered">GENERAL PROVISIONS</heading> <section class="firstIndent1 fontsize10"> <num value="301"><inline class="smallCaps">Sec</inline>. 301. </num> <content>No part of any appropriation contained in this Act shall remain available for obligation beyond the current fiscal year unless expressly so provided herein.</content> </section> <section class="firstIndent1 fontsize10"> <num value="302"><inline class="smallCaps">Sec</inline>. 302. </num> <content>Except where specifically increased or decreased elsewhere<sidenote><p class="indent0 firstIndent0 fontsize8">Increased pay costs.</p></sidenote> in this Act, the restrictions contained within appropriations, or provisions affecting appropriations or other funds, available during the fiscal year 1981, limiting the amounts which may be expended for personal services, or for purposes involving personal services, or amounts which may be transferred between appropriations or authorizations available for or involving such services, are hereby increased to the extent necessary to meet increased pay costs authorized by or pursuant to law.</content> </section> <section class="firstIndent1 fontsize10"> <num value="303"><inline class="smallCaps">Sec</inline>. 303. </num> <content>No part of any appropriation contained in this Act for departments and agencies funded in the Department of Housing and Urban Development-Independent Agencies Appropriation Act, 1981,<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3044">94 Stat. 3044</ref>.</p></sidenote> for personnel compensation and benefits shall be available for other object classifications set forth in the budget estimates submitted for the appropriations without the approval of the Committees on Appropriations.</content> </section> <section class="firstIndent1 fontsize10"> <num value="304"><inline class="smallCaps">Sec</inline>. 304. </num> <content class="inline"> <p class="inline">The Social Security system is vital to the well-being of the Nation’s elderly and disabled citizens and currently provides benefits to about 35 million Americans.</p> <p class="indent0 firstIndent1 fontsize10">The Social Security system faces serious short-term and long-term financing problems that jeopardize the payment of benefits.</p> <p class="indent0 firstIndent1 fontsize10">It is essential that Congress act forthrightly to address the Social Security financing problem and to restore the American people’s confidence in the system.</p> <p class="indent0 firstIndent1 fontsize10">Any resolution to this problem will have come as a result of a bipartisan effort.</p> <p class="indent0 firstIndent1 fontsize10">It is the sense of the Congress that Congress should carefully study all options in order to find the most equitable solution to insuring the fiscal integrity of the system.</p> <p class="indent0 firstIndent1 fontsize10">That Congress shall not precipitously and unfairly reduce early retirees’ benefits.</p> <p class="indent0 firstIndent1 fontsize10">That Congress will enact reforms necessary to ensure the short-term and long-term solvency of the Social Security system but will not support reductions in benefits which exceed those necessary to achieve a financially sound system and the well being of all retired Americans.</p> </content> </section> <section class="firstIndent1 fontsize10"> <num value="305"><inline class="smallCaps">Sec</inline>. 305. </num> <content>None of the funds in the Act shall be used to prevent or<sidenote><p class="indent0 firstIndent0 fontsize8">Surplus agricultural commodities, sale.</p></sidenote> interfere with the right and obligation of the Commodity Credit Corporation to sell surplus agricultural commodities in World Trade at competitive prices as authorized by law.</content> </section> <num value="IV">TITLE IV </num> <heading class="centered">FURTHER CONTINUING APPROPRIATIONS</heading> <section class="firstIndent1 fontsize10"> <num value="401"><inline class="smallCaps">Sec</inline>. 401. </num> <content>Clause (c) of section 101 and clause (c) of section 102 of the<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s5318">5 USC 5318 note</ref>.</p></sidenote> joint resolution of December 16, 1980 (Public Law 96–536), are hereby<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166/3169">94 Stat. 3166, 3169</ref>.</p></sidenote> amended by striking out “<quotedText>June 5, 1981</quotedText>” and inserting in lieu thereof “<quotedText>September 30, 1981</quotedText>”.</content> </section> <section class="firstIndent1 fontsize10"> <num value="402"><inline class="smallCaps">Sec</inline>. 402. </num> <content>Section 109 of such joint resolution is amended to read as<sidenote><p class="indent0 firstIndent0 fontsize8">Abortions.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3170">94 Stat. 3170</ref>.</p></sidenote> follows:<page identifier="/us/stat/95/96">95 STAT. 96</page> <quotedContent> <section class="firstIndent1 fontsize10"> <num value="109">“<inline class="smallCaps">Sec</inline>. 109. </num> <content>Notwithstanding any other provision of this joint resolution except section 102, none of the funds made available by this joint resolution for programs and activities for which appropriations would be available in H.R. 7998, entitled the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriation Act, 1981, as passed the House of Representatives on August 27, 1980, shall be used to perform abortions except where the life of the mother would be endangered if the fetus were carried to term: <proviso> <i>Provided, however</i>, That the several States are and shall remain free not to fund abortions to the extent that they in their sole discretion deem appropriate</proviso>.”.</content> </section> </quotedContent> </content> </section> <section class="firstIndent1 fontsize10"> <num value="403"><inline class="smallCaps">Sec</inline>. 403. </num> <content>Such joint resolution is further modified by the provisions included herein under titles I and II of this bill.</content> </section> Approved June 5, 1981.
LEGISLATIVE HISTORY—H.R. 3512: HOUSE REPORT No. 97–124 (Comm. of Conference). SENATE REPORT No. 97–67 (Comm. on Appropriations). CONGRESSIONAL RECORD, Vol. 127 (1981):

May 12, 13, considered and passed House.

May 19–21, considered and passed Senate, amended.

June 4, House agree to conference report; receded and concurred in certain Senate amendments, in others with amendments. Senate agreed to conference report; resolved amendments in disagreement.

 Public Law 97–13: Designating July 17, 1981, as “National P.O.W.—M.I.A. Recognition Day”. Public Law 13 Public Law 97–13 95 Stat. 97 1981-06-12 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 97 Public Law 97–13 97th Congress
Joint Resolution Designating July 17, 1981, as “National P.O.W.—M.I.A. Recognition Day”.

June 12, 1981

[S.J. Res. 50]

 Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That July 17, 1981, is

National P.O.W.—M.I.A. Recognition Day.

Designation authorization.

 designated as “National P.O.W.—M.I.A. Recognition Day”, and the President of the United States is authorized and requested to issue a proclamation calling upon the people of the United State to observe such day with appropriate ceremonies and activities.
Approved June 12, 1981.
LEGISLATIVE HISTORY—S.J. Res. 50: CONGRESSIONAL RECORD, Vol. 127 (1981):

May 6, considered and passed Senate.

May 28, considered and passed House.

 Public Law 97–14: To extend the authorization for youth employment and demonstration programs, and for other purposes. Public Law 14 Public Law 97–14 95 Stat. 98 1981-06-16 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 98 Public Law 97–14 97th Congress
An Act To extend the authorization for youth employment and demonstration programs, and for other purposes.

June 16, 1981

[S. 1070]

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

Youth Employment Demonstration Amendments of 1981.

29 USC 801 note.

29 USC 822.
That this Act may be cited as the “Youth Employment Demonstration Amendments of 1981”.
Sec. 2. Section 112(a)(4) of the Comprehensive Employment and Training Act is amended by adding at the end thereof the following new subparagraph: “(D)

29 USC 893.

 There are authorized to be appropriated such sums as may be necessary for the fiscal year 1982 to carry out part A of title IV.”.
Sec. 3.

Repeal.

29 USC 916.

 Section 441 of the Comprehensive Employment and Training Act is repealed.
Approved June 16, 1981.
LEGISLATIVE HISTORY—S. 1070 (H.R. 3337) (S. 648): HOUSE REPORTS: No. 97–36 accompanying H.R. 3337 (Comm. on Education and Labor). SENATE REPORTS: No. 97–46 accompanying S. 648 accompanying S. 1070(both from Comm. on Labor and Human Resources). CONGRESSIONAL RECORD, Vol. 127 (1981):

May 12, considered and passed Senate.

June 1, 2, H.R. 3337 considered and passed House; passage vacated and S. 1070 passed in lieu.

 Public Law 97–15: To amend title 38, United States Code, to extend by twelve months the period during which funds appropriated for grants by the Veterans Administration for the establishment and support of new State medical schools may be expended. Public Law 15 Public Law 97–15 95 Stat. 99 1981-06-17 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 99 Public Law 97–15 97th Congress
An Act To amend title 38, United States Code, to extend by twelve months the period during which funds appropriated for grants by the Veterans Administration for the establishment and support of new State medical schools may be expended.

June 17, 1981

[H.R. 2156]

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

Veterans Administration.

State medical schools, funds, extension.

 5073(a)(2)(G) of title 38, United States Code, is amended by striking out “seventh such period” and inserting in lieu thereof “seventh and eighth such periods”.
Approved June 17, 1981.
LEGISLATIVE HISTORY—H.R. 2156: HOUSE REPORT No. 97–77 (Comm. on Veterans’ Affairs). CONGRESSIONAL RECORD, Vol. 127 (1981):

June 2, considered and passed House.

June 3, considered and passed Senate.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 17 (1981), No. 25:

June 17, Presidential statement.

 Public Law 97–16: To amend title I of the Marine Protection, Research, and Sanctuaries Act, as amended. Public Law 16 Public Law 97–16 95 Stat. 100 1981-06-23 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 100 Public Law 97–16 97th Congress
An Act To amend title I of the Marine Protection, Research, and Sanctuaries Act, as amended.

June 23, 1981

[S. 1213]

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

Marine Protection Research, and Sanctuaries Act, amendment.

94 Stat. 3344.
That section 111 of the Marine Protection, Research, and Sanctuaries Act, as amended (33 U.S.C. 1420), is amended by striking “and fiscal year 1982,” and inserting in lieu thereof “and not to exceed $4,213,000 for fiscal year 1982,”.
Approved June 23, 1981.
LEGISLATIVE HISTORY—S. 1213 (H.R. 3319): HOUSE REPORT No. 97–65 accompanying H.R. 3319 (Comm. on Merchant Marine and Fisheries). SENATE REPORT No. 97–119 (Comm. on Environment and Public Works). CONGRESSIONAL RECORD, Vol. 127 (1981):

June 2, considered and passed Senate.

June 11, considered and passed House in lieu of H.R. 3319.

 Public Law 97–17: To correct Public Law 97–12 due to an error in the enrollment of H.R. 3512. Public Law 17 Public Law 97–17 95 Stat. 101 1981-06-29 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 101 Public Law 97–17 97th Congress
Joint Resolution To correct Public Law 97–12 due to an error in the enrollment of H.R. 3512.

June 29, 1981

[H.J. Res. 288]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That in order to correct an error in the enrollment of H.R. 3512, the figure in the second line of the third paragraph on page 42 of Public Law 97–12 is hereby

Ante, p. 55.

 amended as follows:

Strike “$10,455,000” and insert “$410,455,000”.
Approved June 29, 1981.
LEGISLATIVE HISTORY—H.J. Res. 288: CONGRESSIONAL RECORD, Vol. 127 (1981):

June 15, considered and passed House and Senate.

 Public Law 97–18: To amend the Food Stamp Act of 1977 to increase the authorization for appropriations for fiscal year 1981, and to amend Public Law 93–233 to continue, through August 1, 1981, the cash-out of food stamp program benefits of certain recipients of Supplemental Security Income. Public Law 18 Public Law 97–18 95 Stat. 102 1981-06-30 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 102 Public Law 97–18 97th Congress
An Act To amend the Food Stamp Act of 1977 to increase the authorization for appropriations for fiscal year 1981, and to amend Public Law 93–233 to continue, through August 1, 1981, the cash-out of food stamp program benefits of certain recipients of Supplemental Security Income.

June 30, 1981

[H.R. 3991]

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

Food Stamp Act of 1977, amendment.

7 USC 2027.
That section 18(a)(1) of the Food Stamp Act of 1977 is amended by striking out, before the period at the end of the first sentence thereof, “and not in excess of $9,739,276,000 for the fiscal year ending September 30, 1981” and inserting in lieu thereof “and not in excess of $11,480,000,000 for the fiscal year ending September 30, 1981”.
Sec. 2. Effective for the period July 1, 1981, to August 1, 1981,

42 USC 1382e note.

section 8(d) of Public Law 93–233 is amended to read as follows: “(d) Upon the request of a State, the Secretary shall find for purposes of the provisions specified in subsection (c), that the level of such State’s supplementary payments of the type described in 1616(a)

42 USC 1382e.

of the Social Security Act has been specifically increased for any month after June 1976 so as to include the bonus value of food stamps if: (1) the Secretary has found that such State’s supplementary payments in June 1976 were increased to include the bonus value of food stamps; (2) recipients of supplementary payments in such State were ineligible for food stamps for the month of December 1980; and (3) such State continues to meet the requirements of section 1618 of

42 USC 1382g.

such Act for each month after June 1977 and up to and including the month for which the Secretary is making the determination.”.
Approved June 30, 1981.
LEGISLATIVE HISTORY—H.R. 3991: CONGRESSIONAL RECORD, Vol. 127 (1981):

June 23, considered and passed House.

June 25, considered and passed Senate.

 Public Law 97–19: To permit certain funds allocated for official expenses of Senators to be utilized to procure additional office equipment. Public Law 19 Public Law 97–19 95 Stat. 103 1981-07-06 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 103 Public Law 97–19 97th Congress
An Act To permit certain funds allocated for official expenses of Senators to be utilized to procure additional office equipment.

July 6, 1981

[S. 1123]

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

Senate, additional office equipment, funds.

2 USC 58.

 506(a)(9) of the Supplemental Appropriations Act, 1973 (Public Law equipment 92–607) is amended— (1) by inserting “(including expenses for additional office equipment)” immediately after “for such other official expenses”, and (2) by inserting “, except for additional office equipment,” immediately after “(not including official office expenses)”.
Approved July 6, 1981.
LEGISLATIVE HISTORY—S. 1123: SENATE REPORT No. 97–50 (Comm. on Rules and Administration). CONGRESSIONAL RECORD, Vol. 127 (1981):

May 14, considered and passed Senate.

June 24, considered and passed House.

 Public Law 97–20: To authorize the Sergeant at Arms and Doorkeeper of the Senate, subject to the approval of the Committee on Rules and Administration, to enter into contracts which provide for the making of advance payments for computer programing services. Public Law 20 Public Law 97–20 95 Stat. 104 1981-07-06 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 104 Public Law 97–20 97th Congress
An Act To authorize the Sergeant at Arms and Doorkeeper of the Senate, subject to the approval of the Committee on Rules and Administration, to enter into contracts which provide for the making of advance payments for computer programing services.

July 6, 1981

[S. 1124]

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

Computer programming services, advance payments.

2 USC 123c-1.
That, notwithstanding any other provision of law, the Sergeant at Arms and Doorkeeper of the Senate, subject to the approval of the Committee on Rules and Administration, is hereafter authorized to enter into contracts which provide for the making of advance payments for computer programing services.
Approved July 6, 1981.
LEGISLATIVE HISTORY—S. 1124: SENATE REPORT No. 97–51 (Comm. on Rules and Administration). CONGRESSIONAL RECORD, Vol. 127 (1981):

May 12, considered and passed Senate.

June 24, considered and passed House.

 Public Law 97–21: To approve a Constitution for the United States Virgin Islands. Public Law 21 Public Law 97–21 95 Stat. 105 1979-07-09 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 105 Public Law 97–21 97th Congress
Joint Resolution To approve a Constitution for the United States Virgin Islands.

July 9, 1979

[H.J. Res. 238]

 Whereas the Congress, recognizing the basic democratic principle

48 USC 1541 note.

 of government by the consent of the governed enacted Public Law 94–584 authorizing the peoples of the Virgin Islands to organize a government pursuant to a constitution of their own adoption; and Whereas a constitution to provide for local self-government for the

48 USC 1541 note.

 peoples of the United States Virgin Islands has been submitted to the Congress pursuant to the provisions of Public Law 94–584; and Whereas, on April 24, 1981, the Virgin Islands Constitutional Convention

48 USC 1541 note.

 recommended certain amendments to said proposed constitution: Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That the Constitution for

Constitution for the United States Virgin Islands.

48 USC 1541 note.

90 Stat. 2899.

48 USC note prec. 1391.

48 USC 1541 note.

 the United States Virgin Islands is approved for submission to the people of the Virgin Islands in accordance with the provisions of Public Law 94–584 (90 Stat. 2809) as follows: PREAMBLE We the people of the United States Virgin Islands, grateful to Almightly God for our creation, preservation, and freedom, assuming the responsibilities of self-government in political union with the United States, and in order to promote more unity among our islands for ourselves and our posterity, promote the general welfare, protect the fundamental rights and freedoms of the individual, ensure political, social and economic justice, maintain a representative democratic government, protect our culture and natural resources, and preserve the identity of the Virgin Islands, do ordain and establish this Constitution.
Article I. Bill of Rights
fundamental rights Section 1. The dignity of the human being is inviolable. No person

48 USC 1541 note.

 shall be deprived of life, liberty or property without due process of law or be denied the equal protection of the laws. No person shall be discriminated against on account of race, color, sex, place of birth, social origin, or political or religious belief.
freedom of religion, speech, press, assembly and petition Section 2. No law shall be enacted respecting an establishment of

48 USC 1541 note.

 religion, or prohibiting the free exercise thereof, or abridging the freedom of speech or of the press, or the right of the people peaceably 95 STAT. 106to assemble, and to petition the Government for the redress of grievances.
right of privacy Section 3.

48 USC 1541 note.

 The right of the people to privacy in the conduct of their personal affairs is recognized and shall not be infringed.
right to know Section 4.

48 USC 1541 note.

 A person may examine any public document or observe the deliberations of any agency of Government, subject to reasonable limitation as may be provided by law, including protection of the right of privacy.
searches and seizures Section 5.

48 USC 1541 note.

 The right of the people to be secure in their persons, houses, papers, and other possessions against unreasonable searches and seizures and against invasions of privacy shall not be violated. No warrant for arrest or search shall issue but upon probable cause, supported by oath or affirmation, and particularly describing the place to be searched, thing to be seized, or person to be arrested. Interception of communications by eavesdropping devices or other means is prohibited, unless authorized by warrant issued under terms and conditions provided by law. Evidence obtained in violation of the rights of the accused as set forth in this section shall not be admissible as affirmative evidence against the accused in a criminal trial.
rights of the accused Section 6. (a)

48 USC 1541 note.

 In all criminal prosecutions, the accused shall be presumed innocent until proven guilty beyond a reasonable doubt, shall have the right to a speedy and public trial, and where the penalty may be imprisonment for more than six months, the right to trial by an impartial jury; to be informed of the nature and cause of the accusation; to have the assistance of counsel, and where the accused may be imprisoned, the assistance of counsel at public expense if necessary; to have compulsory process for obtaining witnesses, and to be confronted by the witnesses against him. (b) Any person who is subjected to a custodial police interrogation shall, before he is questioned, be advised that he has a right to remain silent, that any statement that he makes may be used as evidence against him, and that he has the right to the presence of an attorney, either retained or appointed. (c) Excessive bail shall not be required, nor excessive fines imposed, nor cruel or unusual punishment inflicted. All persons shall be presumed to be bailable, and such presumption shall be overcome only by a preponderance of the evidence, established by the Government, that the accused may flee the jurisdiction or that the granting of bail would constitute a hazard to the community. (d) No person shall be twice put in jeopardy for the same offense or be compelled in any criminal case to be a witness against himself. The failure of an accused to testify shall not be taken into consideration or commented upon to the detriment of the accused. (e) All civil rights shall be restored to a person convicted of an offense upon the completion of any sentence served, which shall include any period of probation or parole.
95 STAT. 107
prohibition of slavery Section 7. Slavery and involuntary servitude are prohibited,

48 USC 1541 note.

 except in the latter case as a punishment for crime after the accused has been duly convicted.
no imprisonment for debt Section 8. No person shall be imprisoned or suffer forced labor for

48 USC 1541 note.

 debt.
habeas corpus Section 9. All persons have the right to the writ of habeas corpus.

48 USC 1541 note.
labor Section 10. (a) All persons shall have the right to organize and

48 USC 1541 note.

 bargain collectively, to strike and to picket, and to engage in other lawful concerted activities subject to reasonable limitations to protect the health, welfare, and safety as may be provided by law. (b) Public employees engaged in services essential to the public health or safety may have the right to strike in accordance with law. (c) All public employees and all employees of an individual private employer shall have the right to equal pay for equal work: Provided, however, That the phrase equal pay for equal work shall not be construed as requiring the equality of salaries, compensation, or benefits between public employees doing substantially equal work represented by different labor organizations. (d) All employees shall have the right to reasonable protection against injuries in work or employment. (e) The employment of children in any occupation injurious to their health, morals, or general welfare, or which places them in jeopardy of life or limb is prohibited.
protection of property Section 11. Private property shall not be taken for public use

48 USC 1541 note.

 without the payment of just compensation.
restrictions on legislation Section 12. No ex post facto law, bill of attainder, or law impairing

48 USC 1541 note.

 the obligation of contracts shall be enacted.
quartering of soldiers Section 13. No soldier, in time of peace, shall be quartered in any

48 USC 1541 note.

 house without the consent of the owner, nor in time of war, except as provided by law.
trial by jury Section 14. Trial by jury shall be preserved, but the Senate by law

48 USC 1541 note.

 may authorize the trial of civil causes by a jury of no less than six persons.
reservation and implementation of rights Section 15. The preceding enumeration of rights shall not be

48 USC 1541 note.

 construed restrictively nor shall it be construed to deny or disparage 95 STAT. 108other rights retained by the people. The Senate shall provide by law for the implementation and enforcement of this Article.
Article II. Principles Of Government
republican form of government Section 1.

48 USC 1541 note.

 The Government of the Virgin Islands shall be republican in form and shall consist of three branches: legislative, executive, and judicial.
ethical standards Section 2.

48 USC 1541 note.

 Officers and employees of the Government shall be devoted to serving the public interest and shall observe and maintain the highest ethical standards. A code of ethics applicable to all public officers and employees shall be established by law.
capital Section 3.

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 The capital of the Virgin Islands shall be Charlotte Amalie, St. Thomas.
anthem, flag, and symbols Section 4.

48 USC 1541 note.

 An anthem, flag, seal, bird, flower, fish, and tree of the Virgin Islands, each of which shall symbolize the history and culture of the people, shall be provided by law. Within one year of the effective date of this Constitution, the Senate shall provide for the implementation of this section. Once established by law, the anthem, flag, seal, bird, flower, fish, and tree, shall be incorporated and considered a part of this Constitution.
Article III. Citizenship
definition of a virgin islander Section 1.

48 USC 1541 note.

 A Virgin Islander is— (a) a person born in the Virgin Islands, or (b) a person who is a descendant of at least one parent who was born in the Virgin Islands.
citizenship Section 2.

48 USC 1541 note.

 Citizens of the Virgin Islands are— (a) all persons born in the Virgin Islands and subject to the jurisdiction thereof; or (b) all persons born outside of the Virgin Islands who are citizens of the United States, and who have been domiciled in the Virgin Islands for at least one year; or (c) all former Danish citizens who, on January 17, 1917, resided in the Virgin Islands of the United States, and were residing in those islands or in the United States or Puerto Rico on February 25, 1927, and who did not make the declaration required to preserve their Danish citizenship by Article 6 of the treaty entered into on August 4, 1916, between the United States and Demark, or who, having made such a declaration, have heretofore renounced or may hereafter renounce it by a declaration before a court of record, or 95 STAT. 109 (d) subject to the enactment of appropriate Federal legislation, all persons born in the Virgin Islands residing outside of the United States, its territories, and possessions between January 17, 1917, and June 28, 1932, and not subject to the jurisdiction of the United States, and who are not citizens or subjects of any foreign country.
Article IV. Suffrage and Elections
right to vote Section 1. Every citizen of the United States and the Virgin Islands

48 USC 1541 note.

 eighteen years of age or older and registered to vote in the Virgin Islands shall have the right to vote. No property, language, literacy, or income qualifications may be imposed, but a minimum period of residency in the Virgin Islands may be required by law. Persons who are adjudged mentally incompetent, or serving a sentence after conviction of a felony may be disqualified from voting by law.
regular general election Section 2. The regular general election of the Virgin Islands shall

48 USC 1541 note.

 be held on the first Tuesday following the first Monday of November in each even numbered year. The Governor, Lieutenant Governor, and members of the Senate shall be elected at a regular general election. Other elections, initiative, referenda, and matters with respect to election procedures shall be as provided by law.
date of taking office Section 3. The Governor and Lieutenant Governor elected at a

48 USC 1541 note.

 regular general election shall take office on the first Tuesday following the first Monday in January following the election. All other public officials elected at a regular general election shall take office as provided by law.
oath or affirmation Section 4. No political or religious test, other than an oath or

48 USC 1541 note.

USC prec. title 1.

 affirmation to support the Constitution and laws of the Virgin Islands and the Constitution and laws of the United States applicable to the Virgin Islands, shall be required as a qualification for public office.
compensation Section 5. Elected officials shall receive compensation as provided

48 USC 1541 note.

 bylaw.
Article V. Legislative Branch
legislative power Section 1. The legislative power of the Virgin Islands is vested in a

48 USC 1541 note.

 unicameral body designated the Senate of the Virgin Islands and shall extend to all subjects of legislation consistent with this Constitution and the Constitution and laws of the United States applicable to the Virgin Islands. To the extent not inconsistent with the

USC prec. title 1.

 Constitution and laws of the United States, this Constitution and laws of the Virgin Islands enacted under it shall be the supreme law of the Virgin Islands.
95 STAT. 110
composition of the senate Section 2.

48 USC 1541 note.

 The Senate shall consist of fifteen members to be known as Senators. The Senate shall provide for district and at-large Senators in accordance with law: Provided, That there shall be no more than four at-large Senators and the legislative districts of St. Croix, St. John, and St. Thomas each shall be represented. District Senators shall be elected for a term of two years, and at-large Senators for a term of four years.
reapportionment Section 3. (a)

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 At least once every ten years and within one hundred and twenty days of publication of an official census, the Senate shall be reapportioned by law as required by changes in the distribution of residents on each island. A reapportionment plan may divide a legislative district and shall provide for representation by each Senator of approximately the same number of residents, while ensuring representation for each island. (b) If the Senate fails to reapportion, the appellate court shall have original and exclusive jurisdiction to promulgate a reapportionment plan.
qualifications of senators Section 4.

48 USC 1541 note.

 A Senator shall be— (a) a citizen of the United States, (b) a citizen of the Virgin Islands, (c) a qualified voter of the Virgin Islands for at least three years, (d) at least twenty-one years of age, (e) a domiciliary of the Virgin Islands for at least five years immediately preceding the date of taking office, and (f) if a district Senator, a domiciliary of the legislative district from which elected for at least thirty days immediately preceding the date of filing for office. (f) if a district Senator, a domiciliary of the legislative district from which elected for at least thirty days immediately preceding the date of filing for office.
compensation Section 5.

48 USC 1541 note.

 No law increasing the compensation of Senators shall take effect during the term of the Senate that enacts the law.
restriction of activities Section 6.

48 USC 1541 note.

 A Senator may not hold any other public position while in office. Within one year of ceasing to serve, a Senator may neither be appointed to any salaried public position which was created by the Senate nor benefit from any compensation which was increased by the Senate during the Senator’s last term of office.
vacancies Section 7.

48 USC 1541 note.

 If a vacancy occurs in the Senate and one year or more remains in the unexpired term of office, the vacancy shall be filled by a special election within sixty days. If less than one year remains in the unexpired term of office when a vacancy occurs, the President of the Senate shall, within thirty days, appoint the next available person from among those candidates considered in order of the highest number of votes received. If there is no available candidate, the vacancy will be filled as provided by law.
95 STAT. 111
legislative immunity Section 8. A Senator may not be held to answer in any place except

48 USC 1541 note.

 the Senate for a statement made in any Senate proceeding. A Senator shall, except in cases of treason, felony, or breach of the peace, be privileged from arrest during attendance at a session of the Senate and in going to and returning from same.
organization and procedure Section 9. A majority of the Senate shall constitute a quorum. The

48 USC 1541 note.

 Senate shall have all authority inherent in a legislative assembly; shall be the sole judge of the election and qualifications of its members, and shall have the power to institute and conduct investigations, issue subpoenas, and administer oaths. The Senate, upon the vote of three-fourths of its members, may discipline any member for cause. The Senate shall keep a daily journal of its proceedings, which shall include a record of all votes and shall be published within thirty days.
regular and special sessions Section 10. (a) Regular sessions of the Senate shall be held in the

48 USC 1541 note.

 capital of the Virgin Islands beginning on the first Monday following the first Tuesday in January of each year. (b) A special session of the Senate may be called by the Governor or by the President of the Senate upon request of one-third of its members. Until the business specified in the call has been acted upon, no other business shall be considered at a special session. (c) All sessions of the Senate shall be open to the public.
enactment of laws Section 11.

48 USC 1541 note.

 (a) A law may be enacted only by bill, and a bill shall not be enacted unless it is written, read, and passed by a majority of the members present and voting on the question. (b) Each bill passed by the Senate shall be presented to the Governor. If the Governor signs or fails to return a bill within ten working days of presentation, it shall become law. If the Governor vetoes a bill, it shall be returned to the Senate within ten working days of its presentation with a statement of reasons for the veto. The Governor may veto an item of an appropriation bill and sign the remainder of the bill, in which event the vetoed item shall be returned to the Senate within ten working days of its presentation with reasons for the veto. (c) A bill or item of an appropriation bill vetoed by the Governor may be considered by the Senate upon the motion of any Senator within thirty days of its return and shall become law as originally passed upon a vote of two-thirds of the members of the Senate.
impeachment Section 12. The Senate may impeach any elected official for cause

48 USC 1541 note.

 upon a vote of two-thirds of its members. The appellate court shall determine, by a two-thirds vote, whether to remove from office an elected public official impeached by the Senate, and a person so removed shall not be immune from criminal charges or civil action.
95 STAT. 112
Article VI. Executive Branch
executive power Section 1.

48 USC 1541 note.

 The executive power of the Virgin Islands is vested in the Governor.
election of governor and lieutenant governor Section 2.

48 USC 1541 note.

 The Governor and Lieutenant Governor shall be elected by the qualified voters of the Virgin Islands and shall serve for a term of four years. Each qualified voter shall cast a single vote for Governor and Lieutenant Governor, who shall be elected upon receiving a majority of the votes cast. Runoff elections shall be as provided by law. A Governor may not serve more than two successive full terms and may not serve as Lieutenant Governor immediately following two successive full terms.
qualifications for governor and lieutenant governor Section 3.

48 USC 1541 note.

 The Governor and Lieutenant Governor each shall be— (a) a United States citizen, (b) a Virgin Islands citizen, (c) a qualified voter of the Virgin Islands, (d) at least thirty-five years of age, and (e) a domiciliary of the Virgin Islands for fifteen years, five of which must immediately precede the date of taking office.
powers and duties of the governor Section 4. (a)

48 USC 1541 note.

 The Governor shall supervise the executive branch and shall be responsible for the faithful execution of the laws of the Virgin Islands. (b) The Governor shall appoint, with the advice and consent of the Senate, and may remove the heads of all executive branch departments. The Governor shall appoint and may remove all other employees of the executive branch subject to law. (c) The Governor shall report annually to the Senate on the state of Virgin Islands affairs and, at any time, may recommend bills or other measures. (d) The Governor shall prepare and submit to the Senate, at a time prescribed by law, a budget for the ensuing fiscal year. The budget shall state the estimated funds available for appropriation and the estimated receipts, expenditures, and obligations for every department, agency, and Government instrumentality. The budget shall state the public debt and contingent liabilities and shall include other information as may be required by law. (e) The Governor shall have the power to issue executive orders consistent with law. (f) Except in cases of impeachment, the Governor shall have the power to grant reprieves, commutations, pardons, and to remit fines and forfeitures. Each exercise of this power shall be reported to the Senate. (g) In the event of a natural disaster, invasion, or insurrection, or imminent danger thereof, the Governor may call out the militia or, when the public safety requires, proclaim martial law. Upon such proclamation, the Senate shall meet forthwith and may, upon the affirmative vote of two-thirds of its members, revoke the proclamation of martial law then or at any other time. During an 95 STAT. 113emergency, the Governor may order the executive branch to be moved temporarily.
powers and duties of the lieutenant governor Section 5. The Lieutenant Governor shall have custody of the seal

48 USC 1541 note.

 of the Virgin Islands, shall countersign and affix the seal to official documents, shall record and preserve the laws of the Virgin Islands, and shall have additional duties as may be assigned by the Governor or provided by law.
official residence Section 6. The official residence of the Governor shall be in the

48 USC 1541 note.

 capital of the Virgin Islands. The Governor and Lieutenant Governor shall be provided appropriate rent-free residences.
restrictions on activities Section 7. The Governor and Lieutenant Governor shall devote full

48 USC 1541 note.

 time to their duties. While in office, neither shall practice a trade or profession for profit or, unless authorized by law, hold any public position.
order of succession Section 8. The order of succession to the office of Governor and to

48 USC 1541 note.

 the office of Lieutenant Governor shall be: the President of the Senate, Vice-President of the Senate, and such other public official of the Virgin Islands as may be designated by law.
disability of the governor or lieutenant governor Section 9. (a) The Governor or Lieutenant Governor shall declare a

48 USC 1541 note.

 disability to discharge the duties of office by transmitting to the Senate a written declaration of disability. In the event of the temporary disability of the Governor, the Lieutenant Governor shall act as Governor. If the Lieutenant Governor is unable to act as Governor, the next available person in the order of succession shall act as Governor. In the event of the temporary disability of the Lieutenant Governor, the next available person in the order of succession shall act as Lieutenant Governor. The Governor or Lieutenant Governor shall resume office upon submitting a written declaration of termination of the disability. (b) Upon the affirmative vote of two-thirds of its members, the Senate may raise the question of the temporary or permanent disability of the Governor or Lieutenant Governor. The appellate court shall determine all questions raised by the Senate or otherwise raised, as provided by law, with respect to the temporary or permanent disability of the Governor or Lieutenant Governor. If the Governor or Lieutenant Governor is determined by the appellate court to be permanently disabled, the office shall be declared vacant. (c) In the event of a permanent disability of the Governor-elect, the office shall be declared vacant and the vacancy shall be filled by a special election to be held within sixty days of the declaration of the disability. (d) In the event of the permanent disability of the Lieutenant Governor-elect the office shall be declared vacant, and the Governor, with the advice and consent of the Senate, shall appoint a qualified person to fill the vacancy.
95 STAT. 114
permanent vacancy in the office of governor or lieutenant governor Section 10. (a)

48 USC 1541 note.

 In the event of a permanent vacancy in the office of Governor, the Lieutenant Governor shall become Governor. (b) In the event of a permanent vacancy in the office of Lieutenant Governor, the Governor shall appoint a qualified person within forty-five days who, upon confirmation by the Senate, shall become Lieutenant Governor. Until such a permanent appointment is made and confirmed, the next available person in the order of succession shall act as Lieutenant Governor. (c) If simultaneous vacancies occur in the offices of Governor and Lieutenant Governor and more than one year remains in the unexpired term of office, a special election shall be held within sixty days to fill both offices. Between the occurrence of the vacancies and the election of successors, the offices of Governor and Lieutenant Governor respectively shall be filled by the next two available persons in the order of succession. (d) If vacancies occur in the positions of both Governor-elect and Lieutenant Governor-elect, a special election shall be held within sixty days to fill both vacancies. The incumbent Governor and Lieutenant Governor shall remain in office until such election is held in accordance with law.
executive branch departments Section 11. (a)

48 USC 1541 note.

 The functions, powers, and duties of the executive branch offices, agencies, and instrumentalities shall be as provided by law. These shall be organized, as far as practicable, in departments according to major purposes. Independent, regulatory, quasi-judicial, and temporary offices, agencies, and instrumentalities need not be attached to a department. (b) The Governor by executive order may make such changes in the functions, powers, and duties of offices, agencies, and instrumentalities as are considered necessary for efficient administration. Any changes that are inconsistent with law shall be presented to the Senate and, unless modified or disapproved by a majority of the members, shall become effective sixty days after presentation. (c) The head of the department of law shall be the Attorney General, who shall prosecute all violations of laws in the name of the people of the Virgin Islands. The Attorney General shall be a citizen of the United States and the Virgin Islands and licensed to practice law in the Virgin Islands for at least five years.
Article VII. Judicial Branch
judicial power Section 1.

48 USC 1541 note.

 The judicial power of the Virgin Islands shall be vested in an appellate court and in such lower courts as may be created by law.
appellate court Section 2.

48 USC 1541 note.

 The appellate court shall consist of not less than three judges, and shall have appellate jurisdiction over all cases arising under this Constitution and such other appellate and original jurisdiction as may be provided by law. Decisions of the appellate court on questions arising under this Constitution and the laws of the Virgin Islands shall be final, except as Federal law may provide for review of 95 STAT. 115such decisions by the United States Supreme Court. Decisions of the appellate court on questions arising under the United States Constitution or laws or treaties of the United States may be appealed to the United States Court of Appeals for the Third Circuit, unless otherwise provided by the Congress of the United States.
judicial nominating committee Section 3. There shall be a Judicial Nominating Committee established

48 USC 1541 note.

 by law whose members shall be nominated by the Governor with the advice and consent of the Senate, All judges shall be appointed by the Governor with the advice and consent of the Senate, but no person shall be appointed as a judge who has not been nominated by the Judicial Nominating Committee.
judicial misconduct and disability Section 4. There shall be a judicial commission established by law

48 USC 1541 note.

 with the power to discipline, censure, suspend, remove for misconduct, or retire for disability any judge of any court established by law. Any decision of the judicial commission shall be appealable in a manner as provided by law. The position of any judge suffering permanent disability shall be filled in accordance with law.
term Section 5. The regular term of a judge of any court of the Virgin

48 USC 1541 note.

 Islands shall be eight years.
qualifications Section 6. A judge shall— (a) be a citizen of the United States and the Virgin Islands;

48 USC 1541 note.

 (b) be a domiciliary of the Virgin Islands for not less than five years immediately preceding his appointment; (c) have been licensed to practice law in the Virgin Islands for not less than four years immediately preceding his appointment; and (d) for appointment to the appellate court of the Virgin Islands, have practiced law for not less than ten years, and for appointment to any lower court, have practiced law for not less than five years.
compensation Section 7. The salary and allowances of a judge shall be provided

48 USC 1541 note.

 by law, and may not be decreased during his tenure.
restriction on activities Section 8. No person who holds a judicial office in the Virgin

48 USC 1541 note.

 Islands shall hold any other paid office, engage in the practice of law, or in the pursuit of business. Any judge who files or announces his candidacy for elective office shall thereby forfeit his judicial office.
rulemaking power Section 9. The appellate court shall adopt rules with respect to

48 USC 1541 note.

 judicial matters, including temporary disability, civil and criminal 95 STAT. 116procedure, judicial ethics, and admission to, governance of and expulsion from the practice of law.
administration Section 10.

48 USC 1541 note.

 The chief judge of the appellate court of the Virgin Islands shall be responsible for the administration of that court. Administration of any lower court shall be as provided by law.
Article VIII. Local Government
political subdivisions; creation, powers Section 1.

48 USC 1541 note.

 The Senate may create political subdivisions within the Virgin Islands and provide for the government thereof. The Senate may create a political subdivision embodying each major island, but may not create a political subdivision within any of the islands, except with the approval of a majority of the voters voting on the question on the island which is to be subdivided. Each political subdivision shall have and exercise such powers as shall be conferred by law.
local self-government; charter Section 2.

48 USC 1541 note.

 Each political subdivision shall have the power to frame and adopt a charter for its own self-government within such limits and under such procedures as may be provided by law.
taxation and finance Section 3. (a)

48 USC 1541 note.

 The power to tax shall be reserved to the Senate, but political subdivision may petition the Senate to impose a tax to be utilized by said political subdivision. (b) The Senate shall have the power to apportion revenues among the political subdivisions.
mandates, accrued claims Section 4.

48 USC 1541 note.

 No law shall be passed mandating any political subdivision to pay any previously accrued claim.
general laws Section 5.

48 USC 1541 note.

 This Article shall not limit the power of the Senate to enact laws of general concern, and no political subdivision may infringe upon this power.
Article IX. Education
educational philosophy Section 1. (a)

48 USC 1541 note.

 The Government of the Virgin Islands shall provide for the education of its people and establish a system of elementary, secondary, and higher education which embodies the principle of essential human equality and includes programs that respond to the needs, interests, and abilities of its people. (b) Elementary and secondary education shall be compulsory for all persons as provided by law. Attendance at a public or an accredited nonpublic school shall satisfy this requirement. Public elementary and secondary education shall be essentially free.
95 STAT. 117
school boards Section 2. (a) A Virgin Islands Board of Education shall be

48 USC 1541 note.

 established by law and shall have such power and duties as may be provided by law. (b) Other school boards, subordinate to the Virgin Islands Board of Education, may be provided by law.
Article X. Protection of Culture and Environment
cultural development Section 1. No law shall be passed abridging the preservation and

48 USC 1541 note.

 development of Virgin Islands culture, language, traditions or customs. Study of Virgin Islands culture, including but not limited to language, traditions, history, music, and art, shall be an integral part of the public education system.
commission on culture Section 2. A commission shall be established by law to study,

48 USC 1541 note.

 promote, and preserve the history, culture, and traditions of the Virgin Islands.
historical places and artifacts Section 3. Places, artifacts, documents, and objects of cultural or

48 USC 1541 note.

 historical significance to the people of the Virgin Islands shall be protected and preserved, and public access to such places and artifacts shall be maintained as provided by law.
agriculture and land commission Section 4. A commission shall be established by law to acquire land

48 USC 1541 note.

 for redistribution by lease to the people of the Virgin Islands for agriculture, homestead, or other public purposes as provided by law. The commission may acquire land only by transfer from the Government of the Virgin Islands or by purchase.
environmental protection Section 5. The policy of the Virgin Islands shall be to preserve its

48 USC 1541 note.

 natural resources, protect its air, land, and water, and to provide for the enjoyment of its natural beauty.
open beaches Section 6. All beaches and shorelines of the Virgin Islands shall be

48 USC 1541 note.

 public and open to public access. Where not available, public access may be provided by law.
right to a healthful environment Section 7. Every person has the right to a healthful environment

48 USC 1541 note.

 subject to reasonable limitations as may be provided by law. Each person may enforce this right against any party subject to reasonable limitations as may be provided by law.
95 STAT. 118
Article XI. Taxation and Finance
tax authority Section 1.

48 USC 1541 note.

 All taxes shall be levied by law, and the Senate may not surrender, suspend, or contract away its power to initiate tax legislation except as provided by this Constitution. A tax may be levied or an appropriation of public money made only for a public purpose.
income tax Section 2.

48 USC 1541 note.

 Laws shall be enacted to administer and enforce the income tax and the Federal tax laws applicable to the Virgin Islands.
public debt limitation Section 3. (a)

48 USC 1541 note.

 The Senate by law may cause bonds or other obligations to be issued on behalf of the Government either for (i) public improvement or public undertaking or (ii) other projects nominally and/or beneficially privately owned which will promote the public interest through economic development. Such bonds or obligations shall be payable solely from the revenues directly derived from and attributable to such public improvement, public undertaking, or other project. Such bonds shall not constitute a general obligation of the Virgin Islands or of the United States. (b) The Senate, as authorized by law, may cause to be issued such negotiable general obligation bonds or other evidence of indebtedness as it may deem necessary and advisable to achieve or further a public purpose: Provided, That no public indebtedness of the Virgin Islands shall be incurred in excess of 10 percent of the assessed valuation of the taxable real property in the Virgin Islands. (c) Bonds issued pursuant to this section may bear such dates, may be in such denominations, may mature in such amounts and at such time or times, not exceeding thirty years from the date thereof, may be payable at such place or places, may be sold at either public or private sale, may be redeemable (either with or without premium) or nonredeemable, may carry such registration privileges as to either principal and interest, or principal only, and may be executed by such officers and in such manner as shall be provided by law. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before delivery of such bonds, such signature, whether manual or facsimile, shall nevertheless be valid and sufficient for all purposes, the same as if such officers had remained in office until such delivery. The bonds so issued shall bear interest at a rate not to exceed that specified by law and be payable at such time or times specified by law.

All such bonds shall be sold for not less than the principal amount thereof plus accrued interest. All bonds issued by the Government of the Virgin Islands, specifically including interest thereon, shall be exempt from taxation by the Government of the United States; by the Government of the Virgin Islands or any political subdivision thereof; by any State, territory or possession or any political subdivision thereof, or by the District of Columbia.

 (d) The proceeds of the bond issue or other obligation herein authorized shall be expended only for public purposes as set forth in this section or for the reduction of the debt created by such bond issue or obligation. 95 STAT. 119 (e) For purposes of this section bonds shall mean bonds, notes, or other obligations and shall be deemed to include bonds to refund any bonds, notes, or other obligations. (f) Aggregate bonds issued in support of a single project pursuant to section (b) above, which exceed 20 percent of the average Government revenue for the previous three years, shall be approved by a majority of the qualified voters of the Virgin Islands voting on the question at a referendum. (g) Bonds may not be issued for the operating expenses of the Government of the Virgin Islands, except that short-term bonds which are required to be repaid within one year may be issued by law to meet appropriations for any fiscal period in anticipation of the collection of revenue for that period or to meet casual deficits.
auditor general Section 4. (a) There shall be an Auditor General, who shall be

48 USC 1541 note.

 appointed by the Governor with the advice and consent of the Senate and shall serve for a term of six years. (b) The Auditor General shall be a United States citizen, a Virgin Islands citizen, a qualified voter of the Virgin Islands, a domiciliary of the Virgin Islands for at least five years, and shall have such other qualifications as may be provided by law. (c) The Auditor General shall audit all revenues, accounts, expenditures, and programs of the Government, its departments, offices, agencies, and instrumentalities; shall make a public annual report and any special reports that may be required by the Governor or the Senate, and shall perform other duties as may be provided by law. In the performance of official duties, the Auditor General shall have the authority to administer oaths, take evidence, compel the attendance of witnesses and the production of books, letters, papers, records, and all other necessary articles. (d) The Auditor General may not hold any other public position while in office, nor engage in any activity that would conflict with official duties and responsibilities. The salary of the Auditor General may not be decreased during a term of office. (e) The Auditor General may be removed from office for cause by the Governor, with the advice and consent of the Senate, or by impeachment.
Article XII. Initiative, Referendum and Recall All political power is inherent in the people, who reserve the power

48 USC 1541 note.

 to propose, adopt, or reject laws, and also the power to adopt or reject any act or section of any act passed by the Senate.
initiative and referendum Section 1. (a) Initiative and referendum is the power of the electors

48 USC 1541 note.

 to propose the enactment, amendment, or repeal of laws of the Virgin Islands, except public exigency laws and laws involving operating expenses. An initiative shall be instituted by a petition containing the full text of the proposal, and be signed by at least 10 percent of the qualified voters of each legislative district or by 41 percent of the qualified voters of the Virgin Islands. (b) An initiative petition shall be filed with the Senate. If adopted by the Senate within thirty days of the filing of the petition, the proposal contained in the petition shall take effect in accordance with 95 STAT. 120its terms. If the Senate fails to act within thirty days, the proposal shall be submitted to the voters at the next general election or at a special election held before the next general election. (c) An initiative shall take effect upon the affirmative vote of a majority of the qualified voters of the Virgin Islands voting on the question. An initiative may not be vetoed by the Governor, and when adopted by the people may not be amended or repealed by the Senate in office when the petition was filed.
recall Section 2. (a)

48 USC 1541 note.

 Elected public officials of the Virgin Islands may be recalled by the qualified voters. A recall petition shall identify the official to be recalled by name and office, and be signed by at least 30 percent of the persons qualified to vote for that office. The petition shall state the reasons for recall. (b) A special recall election shall be held within sixty days of the filing of the recall petition. An official shall be recalled upon the affirmative vote of two-thirds of those voting on the question. (c) A recall petition may not be filed during the first year of the first term of office of an elected official, and not less than three months before a general election; nor more than once a year except for cause.
Article XIII. Constitutional Amendment
proposal of amendments Section 1.

48 USC 1541 note.

 Amendments to this Constitution shall maintain the principles of a republican form of government and may be proposed by initiative, a constitutional convention, or the Senate.
general constitutional convention Section 2. (a)

48 USC 1541 note.

 The Senate, by the affirmative vote of two-thirds of its members, may submit to the qualified voters of the Virgin Islands at a regular general election the question, “Shall there be a constitutional convention to propose amendments to the Constitution?” This question shall be submitted by the Senate to the qualified voters of the Virgin Islands within ten years after the effective date of this Constitution and at least once every ten years thereafter. (b) An initiative petition may submit to the qualified voters of the Virgin Islands the question, “Shall there be a constitutional convention to propose amendments to the Constitution?” The petition shall be signed by at least 15 percent of the qualified voters of each legislative district of the Virgin Islands or by 51 percent of the qualified voters of the Virgin Islands. The question shall be submitted to the voters at the first regular election held not less than ninety days after filing of the initiative petition. (c) If a majority of those voting on the question of a constitutional convention favors holding such a convention, the Senate shall convene a convention within one hundred and twenty days after approval of the petition. (d) Delegates to a constitutional convention shall be elected on a nonpartisan ballot as provided by law. A constitutional convention may propose an amendment to the Constitution only upon the affirmative vote of two-thirds of its members.
95 STAT. 121
legislative proposal Section 3. The Senate may propose an amendment to this Constitution

48 USC 1541 note.

 upon the affirmative vote of two-thirds of its members.
initiative Section 4. The people may propose an amendment to this Constitution

48 USC 1541 note.

 by initiative. An initiative petition shall contain the full text of the proposed amendment and shall be signed by 15 percent of the qualified voters of each legislative district of the Virgin Islands or by 51 percent of the qualified voters of the Virgin Islands.
limited constitutional convention Section 5. A constitutional amendment proposed by the Senate or

48 USC 1541 note.

 by initiative may provide, in accordance with its terms, for direct ratification by the qualified voters of the Virgin Islands or for the convening of a constitutional convention limited to the issues raised by the proposed amendment. If a majority of those voting on the question of a limited constitutional convention favors holding such a convention, the Senate shall convene a limited constitutional convention within one hundred and twenty days, subject to the same restrictions on membership and adoption of any proposed amendment as those imposed on a general constitutional convention.
constitutional review commission Section 6. Within five years after the effective date of this

48 USC 1541 note.

 Constitution and at least once every ten years thereafter, a constitutional review commission shall be established by law. The commission shall, within one hundred and twenty days of its establishment, make a public report to the Senate with its proposals, if any, for revision of the Constitution. Members of the commission shall be qualified voters of the Virgin Islands.
ratification of amendments Section 7. Each proposed amendment to this Constitution shall be

48 USC 1541 note.

 submitted to the qualified voters of the Virgin Islands for ratification at the first regular general election or at a special election called by the Senate. A proposed amendment shall take effect in accordance with its terms upon the affirmative vote of a majority of those voting on the amendment.
TRANSITIONAL SCHEDULE
ratification and effective date of the constitution Section 1. This Constitution, as finally approved or modified by the

48 USC 1541 note.

 Congress of the United States under Section 5 of Public Law 94–584 (October 12, 1976), shall be submitted to the qualified voters of the

48 USC note prec. 1391.

 Virgin Islands and shall be ratified upon the affirmative vote of a majority of those voting on the question. The Constitution shall take effect one hundred and twenty days after ratification, except as provided in Sections 2 and 5 of this Transitional Schedule.
95 STAT. 122
elections Section 2.

48 USC 1541 note.

 Notwithstanding any other provision of this Constitution, all elected officials shall be elected in accordance with this Constitution at the first general election after the effective date of this Constitution.
continuity of laws Section 3.

48 USC 1541 note.

 Laws, executive orders, and regulations in force in the Virgin Islands on the effective date of this Constitution that are consistent with this Constitution shall continue in force until they expire, are amended, or repealed. Laws, executive orders, and regulations that have been enacted or issued by the legislature of the Virgin Islands or by local executive authorities, respectively that are inconsistent with this Constitution shall be void to the extent of such inconsistency.
continuity of government employment and operations Section 4.

48 USC 1541 note.

 Employees of the Government of the Virgin Islands on the effective date of this Constitution shall be employees of the constitutional government on the same terms and conditions of employment as were in effect and enforceable previously, unless otherwise provided by law. Employees of the Government of the Virgin Islands shall have the same functions and duties after becoming employees of the constitutional government unless otherwise provided by law.
continuity of judicial matters Section 5.

48 USC 1541 note.

 Until the Senate otherwise provides, the appellate court created by Section 1 of Article VII shall consist of the two United States District Court judges for the Virgin Islands and one judge appointed in accordance with the provisions of Section 3 and Section 6 of Article VII of this Constitution. The judge so appointed shall serve as the chief judge of the appellate court until the appellate court created by Section 1 is fully implemented.

The Territorial Court of the Virgin Islands shall continue as a trial court of original jurisdiction in the same manner as existed prior to the date of adoption of this Constitution until and unless changed by law. The qualifications for judges set forth in this Constitution shall not be retroactively applied to any sitting judge of the Territorial Court. All rules of the judicial system consistent with this Constitution and in effect upon the adoption of this Constitution shall continue or may be modified or terminated in the same manner as existed prior to the adoption of this Constitution until and unless changed by law.
prospective operation of rights Section 6.

48 USC 1541 note.

 All rights or obligations, procedural or substantive, created for the first time by this Constitution shall be prospective and not retroactive.
succession Section 7.

48 USC 1541 note.

The constitutional government of the Virgin Islands shall succeed to all rights and obligations of t h e Government of t he Virgin Islands that existed prior to the effective date of this Constitution. The validity of all public and private bonds, debts, and contracts, 95 STAT. 123and of all claims, actions, and causes of action shall continue as if no change had taken place.

Signed and Witnessed by the Delegates to the Fourth Constitutional Convention of the Virgin Islands, at Charlotte Amalie, St. Thomas, United States Virgin Islands, on this 1st day of August, 1980.

Rupert W. Ross, Jr., President Ruth H. Beagles, Secretary Toya Andrew, Assistant Secretary Clarice Bryan Cecil Benjamin Dorene E. Carter Otis Felix Henry Feuerzeig Kwame Garcia Cyprian Gardine Rufus Graham Geraldo Guirty Olaf Hendricks Stedmann Hodge John James Wilfrid James Bent Lawaetz Sidney Lee Lucien Moolenaar Alva McFarlane Thyra Hodge Smith Clement Sackey, 2d Vice President Llewellyn Sewer, Sergeant at Arms Ruby Simmonds, 1st Vice President Yvonne Tharpes Charles Turnbull Mario Watlington
Sec. 2. Notwithstanding the time limitations for congressional

48 USC 1541 note.

48 USC note prec. 1391.

 review provided in Public Law 94–584 (90 Stat. 2899), the Constitution the Virgin Islands, as approved by section 1 of this resolution, shall be submitted to the qualified voters of the Virgin Islands for acceptance or rejection as provided in section 5 of said Act.

48 USC note prec. 1391.
Approved July 9, 1981.
LEGISLATIVE HISTORY—H.J. Res. 238: HOUSE REPORT No. 97–25 (Comm. on Interior and Insular Affairs). SENATE REPORT No. 97–66 (Comm. on Energy and Natural Resources). CONGRESSIONAL RECORD, Vol. 127 (1981):

May 5, considered and passed House.

June 3, considered and passed Senate, amended.

June 16, House concurred in Senate amendments.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 17, No. 28 (1981):

July 10, Presidential statement.

 Public Law 97–22: To make technical corrections in the Defense Officer Personnel Management Act. Public Law 22 Public Law 97–22 95 Stat. 124 1981-07-10 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 124 Public Law 97–22 97th Congress
An Act To make technical corrections in the Defense Officer Personnel Management Act.

July 10, 1981

[H.R. 3807]

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

Defense Officer Personnel Management Act Technical Corrections Act.

10 USC 101 note.
That (a) this Act may be cited as the “Defense Officer Personnel Management Act Technical Corrections Act“. (b) Whenever in this Act a reference is made to a section of title 10, United States Code, as added or amended by “the Act”, the reference shall be considered to be a reference to that section as added or amended effective September 15, 1981, by the Defense Officer Personnel

10 USC 101 note.

Management Act (Public Law 96–513; 94 Stat. 2835).
Sec. 2. (a) Section 101(41) of title 10, United States Code (as added by section 101 of the Act (94 Stat. 2840)), is amended by inserting “or Coast Guard” after “Navy”. (b) Section 138(c)(3)(D)(iii)(I) of such title (as added by section 102(a)(2) of the Act (94 Stat. 2840)) is amended by striking out “and active military service”. (c) Section 266(a) of such title (as amended by section 501(4) of the Act (94 Stat. 2907)) is amended— (1) by striking out “title,” and inserting in lieu thereof “title and except for boards that may be convened to select Reserves for appointment in the Regular Army, Regular Navy, Regular Air Force, or Regular Marine Corps,”; and (2) by striking out “an appropriate number of Reserves, as prescribed by the Secretary concerned under standards and policies prescribed by the Secretary of Defense” and inserting in lieu thereof “at least one member of the Reserves, with the exact number of Reserves determined by the Secretary concerned in his discretion”.
Sec. 3. (a) Section 531 of such title (as added by section 104(a) of the Act (94 Stat. 2845)) is amended— (1) by inserting “(a)” before “Original appointments”; and (2) by adding at the end thereof the following new subsection: “(b) The grade of a person receiving an appointment under this section who at the time of appointment (1) is credited with service under section 533 of this title, and (2) is not a commissioned officer of a reserve component shall be determined under regulations prescribed by the Secretary of Defense based upon the amount of service credited. The grade of a person receiving an appointment under this section who at the time of the appointment is a commissioned officer of a reserve component is determined under section 533(f) of this title.”. (b) Section 532(d) of such title (as added by section 104(a) of the Act (94 Stat. 2846)) is amended by striking out “medical officer or dental officer or as a chaplain” and inserting in lieu thereof “medical or dental officer, as a chaplain, or as an officer designated for limited duty in the Regular Navy or Regular Marine Corps”. 95 STAT. 125 (c)(1) Subsection (b)(1)(A) of section 533 of such title (as added by

10 USC 533.

 section 104(a) of the Act (94 Stat. 2846)) is amended— (A) by inserting “, designated, or assigned” in the first sentence after “persons appointed”; (B) by striking out “appointment as a commissioned officer” in the first sentence and inserting in lieu thereof “such appointment, designation, or assignment”; and (C) by striking out the second sentence and inserting in lieu thereof the following: “Except as provided in clause (E), in determining the number of years of constructive service to be credited under this clause to officers in any professional field, the Secretary concerned shall credit an officer with, but with not more than, the number of years of postsecondary education in excess of four that are required by a majority of institutions that award degrees in that professional field for completion of the advanced education or award of the advanced degree.”. (2) Subsection (b)(1)(B) of such section is amended by striking out “as an officer” and inserting in lieu thereof “, designation, or assignment”. (3) Subsection (b)(1)(E) of such section is amended by inserting “, designated, or assigned” in the second sentence after “being appointed”. (4) Subsection (d)(1) of such section is amended by adding at the end thereof the following new sentence: “However, in the case of an officer who completes advanced education or receives an advanced degree while on active duty or in an active status and in less than the number of years normally required to complete such advanced education or receive such advanced degree, constructive service may, subject to regulations prescribed under subsection (a)(2), be credited to the officer under subsection (b)(1)(A) to the extent that the number of years normally required to complete such advanced education or receive such advanced degree exceeds the actual number of years in which such advanced education or degree is obtained by the officer.”. (5) Subsection (f) of such section is amended to read as follows: “(f) A reserve officer (other than a warrant officer) who receives an original appointment as an officer (other than as a warrant officer) in the Regular Army, Regular Navy, Regular Air Force, or Regular Marine Corps shall— “(1) in the case of an officer on the active-duty list immediately before that appointment as a regular officer, be appointed in the same grade and with the same date of rank as the grade and date of rank held by the officer on the active-duty list immediately before the appointment; and “(2) in the case of an officer not on the active-duty list immediately before that appointment as a regular officer, be appointed in the same grade and with the same date of rank as the grade and date of rank which the officer would have held had the officer been serving on the active-duty list on the date of the appointment as a regular officer.”.
Sec. 4. (a)(1) Paragraph (2) of subsection (a) of section 612 of title 10, United States Code (as added by section 105 of the Act (94 Stat. 2851)), is amended to read as follows: “(2)(A) Except as provided in subparagraph (B), a selection board shall include at least one officer from each competitive category of officers to be considered by the board. “(B) A selection board need not include an officer from a competitive category to be considered by the board when there are no officers of that competitive category on the active-duty list in a grade higher 95 STAT. 126than the grade of the officers to be considered by the board and eligible to serve on the board. However, in such a case the Secretary of the military department concerned, in his discretion, may appoint as a member of the board an officer of that competitive category who is not on the active-duty list from among officers of the same armed force as the officers under consideration by the board who hold a higher grade than the grade of the officers under consideration and who are retired officers, reserve officers serving on active duty but not on the active-duty list, or members of the Ready Reserve.”. (2) Paragraph (3) of such subsection is amended— (A) by inserting “, with the exact number of reserve officers to be determined by the Secretary of the military department concerned in his discretion” after “at least one reserve officer of that armed force”; and (B) by striking out the period at the end thereof and inserting in lieu thereof “who are eligible to serve on the board.”. (3) Such subsection is further amended by striking out paragraph (4) and inserting in lieu thereof the following: “(4) Except as provided in paragraphs (2) and (3), if qualified officers on the active-duty list are not available in sufficient number to comprise a selection board, the Secretary of the military department concerned shall complete the membership of the board by appointing as members of the board officers who are members of the same armed force and hold a grade higher than the grade of the officers under consideration by the board and who are retired officers, reserve officers serving on active duty but not on the active-duty list, or members of the Ready Reserve. “(5) A retired general or flag officer who is on active duty for the purpose of serving on a selection board shall not, while so serving, be counted against any limitation on the number of general and flag officers who may be on active duty.”. (4) Subsection (b) of such section is amended by inserting “convened under section 611(a) of this title” after “selection boards”. (b)

10 USC 614.

 Section 614(a) of such title (as added by section 105 of the Act (94 Stat. 2852)) is amended by striking out “, the names of the officers eligible for consideration by the board as of the date of the notification, the convening date of the board,” and inserting in lieu thereof “which shall include the convening date of the board”. (c) Section 619(c)(2) of such title (as added by section 105 of the Act (94 Stat. 2855)) is amended— (1) by striking out “and” at the end of clause (A); (2) by striking out the period at the end of clause (B) and inserting in lieu thereof “for the purposes of clause (A); and”; and (3) by adding at the end thereof the following new clause: “(C) may, by regulation, prescribe a period of time, not to exceed one year, from the time an officer is placed on the active-duty list during which the officer shall be ineligible for consideration for promotion.”. (d)(1) Subsection (a) of section 624 of such title (as added by section 105 of the Act (94 Stat. 2857)) is amended— (A) by striking out “or in the case of officers selected for promotion to the grade of first lieutenant or lieutenant (junior grade), when a list of officers selected for promotion is approved by the President,” in paragraph (1); and (B) by adding at the end of paragraph (2) the following new sentence: “Officers to be promoted to the grade of first lieutenant or lieutenant (junior grade) shall be promoted in accordance with regulations prescribed by the Secretary concerned.”. 95 STAT. 127 (2) Subsection (c) of such section is amended by striking out “in the grade of first lieutenant or lieutenant (junior grade) under this section” and inserting in lieu thereof “under this section in the grade of first lieutenant or captain or lieutenant (junior grade) or lieutenant”. (3) Subsection (d) of such section is amended— (A) by striking out “The Secretary concerned may delay the appointment of an officer under this section if—” in paragraph (1) and inserting in lieu thereof “Under regulations prescribed by the Secretary concerned, the appointment of an officer under this section may be delayed if—”; (B) by inserting “then unless action to delay an appointment has also been taken under subsection (d)(2)” after “as the case may be,” in the second sentence of paragraph (1); (C) by striking out “The Secretary concerned may also delay the appointment of an officer to the next higher grade under this section in any case in which the Secretary finds that” in paragraph (2) and inserting in lieu thereof “Under regulations prescribed by the Secretary concerned, the appointment of an officer under this section may also be delayed in any case in which”; (D) by striking out the period at the end of the first sentence of paragraph (3) and inserting in lieu thereof “, unless it is impracticable to give such written notice before the effective date of the appointment, in which case such written notice shall be given as soon as practicable.”; and (E) by striking out “by the Secretary” in the second sentence of paragraph (3). (e)(1) Section 637(b) of such title (as added by section 105 of the Act

10 USC 637.

 (94 Stat. 2864)) is amended by striking out “section 633, 634, 635, or 636” in paragraph (1) and inserting in lieu thereof “section 633 or 634”. (2) Paragraph (2) of such section is amended to read as follows:

Retirement deferments.

 “(2) An officer subject to retirement under section 635 or 636 of this title who is serving in the grade of brigadier general, commodore admiral, major general, or rear admiral may, subject to the needs of the service, have his retirement deferred and be continued on active duty by the Secretary concerned. An officer subject to retirement under section 635 or 636 of this title who is serving in a grade above major general or rear admiral may have his retirement deferred and be continued on active duty by the President.”. (f) Section 638(a) of such title (as added by section 105 of the Act (94 Stat. 2864)) is amended by striking out “four” in clauses (3) and (4) and inserting in lieu thereof “three and one-half”. (g) Section 689 of such title (as added by section 106 of the Act (94 Stat. 2868)) is amended by striking out the period and inserting in lieu thereof “, except that a reserve officer who is credited with service under section 3353, 5600, or 8353 of this title and is ordered to active duty may be ordered to active duty in a reserve grade and with a date of rank and position on the active-duty list determined under regulations prescribed by the Secretary of Defense based upon the amount of service credited.”. (h)(1) The table in subsection (a) of section 741 of such title (as amended by section 107 of the Act (94 Stat. 2869)) is amended to read as follows:95 STAT. 128
”Army, Air Force, and Marine Corps Navy and Coast Guard
General Admiral.
Lieutenant general Vice admiral.
Major general Rear admiral (Navy) and Rear admiral (upper half) (Coast Guard).
Brigadier general Commodore admiral (Navy) and Rear admiral (lower half) (Coast Guard).
Colonel Captain.
Lieutenant colonel Commander.
Major Lieutenant commander.
Captain Lieutenant.
First lieutenant Lieutenant (junior grade).
Second lieutenant Ensign.”.
(2) Subsection (c) of such section is amended by inserting “of the Army, Navy, Air Force, and Marine Corps” after “officers”. (3) Subsection (d) of such section is amended— (A) by inserting “of the Army, Navy, Air Force, or Marine Corps” in paragraph (1) after “officer” both places it appears; and (B) by inserting “of the Army, Navy, Air Force, or Marine Corps” in paragraph (3) after “(other than a warrant officer)”. (4) The heading of such section is amended to read as follows:
“§741. Rank: commissioned officers of the armed forces”.
Sec. 5. (a)(1) Subsection (b) of section 3064 of title 10, United States Code (as amended by section 231 of the Act (94 Stat. 2886)), is amended by striking out “may appoint commissioned officers in, and may assign members to,” and inserting in lieu thereof “may assign commissioned officers (other than officers of the Regular Army) and members to”. (2) Subsection (c) of such section is amended to read as follows: “(c) Commissioned officers of the Regular Army may be appointed in a special branch, but the Secretary may not assign any officer of the Regular Army to a special branch.”. (b)

10 USC 3210.

 Section 3210(a) of such title (as amended by section 502(5) of the Act (94 Stat. 2909)) is amended by striking out “, exclusive of the number authorized for the Army Medical Department and the Chaplains,” and “, exclusive of the number of commissioned officers on the active-duty list authorized for the Army Medical Department and the Chaplains”. (c)(1) Subsection (a) of section 3353 of such title (as amended by section 205(a) of the Act (94 Stat. 2881)) is amended— (A) by inserting “or an assignment to an officer category in which advanced education or training or special experience is required or will be directly used” in paragraph (1) after “in the Army”; (B) by inserting “or assignment” in paragraph (1) after “such appointment” both places it appears; (C) by inserting “as a regular officer on active duty or as a reserve officer” in paragraph (1) after “that he performed”; and (D) by striking out “receiving an original appointment” and “at the time of such appointment” in paragraph (2). (2) Subsection (b)(1) of such section is amended— (A) by inserting “or an assignment to an officer category in which advanced education or training or special experience is required or will be directly used” after “officer in the Army”; (B) by striking out “appointed in” in subparagraph (A) and inserting in lieu thereof “assigned to”; 95 STAT. 129 (C) by striking out “appointment as a commissioned officer” in subparagraph (A) and inserting in lieu thereof “such assignment”; (D) by striking out the second sentence in subparagraph (A) and inserting in lieu thereof the following: “Except as provided in clause (E), in determining the number of years of constructive service to be credited under this clause to officers in any professional field, the Secretary concerned shall credit an officer with, but with not more than, the number of years of postsecondary education in excess of four that are required by a majority of institutions that award degrees in that professional field for completion of the advanced education or award of the advanced degree.”. (E) by striking out “appointment as an officer,” in subparagraph (B) and inserting in lieu thereof “assignment as an officer in such health profession,”; (F) by striking out “appointed” in the second sentence of subparagraph (E) and inserting in lieu thereof “assigned to such health profession”; and (G) by striking out “appointed in” in subparagraph (F) and inserting in lieu thereof “assigned to”. (3) Subsection (b)(3) of such section is amended by striking out the period and inserting in lieu thereof “or his assignment to an officer category in which advanced education or training or special experience is required or will be directly used.”. (4) Subsection (c) of such section is amended— (A) by inserting “as a commissioned officer (other than a warrant officer) on active duty or” after “while serving”; and (B) by adding at the end thereof the following new sentence: “However, in the case of an officer who completes advanced education or receives an advanced degree while in an active status and in less than the number of years normally required to complete such advanced education or receive such advanced degree, constructive service may, subject to regulations prescribed under subsection (a)(2), be credited to the officer under subsection (b)(1)(A) to the extent that the number of years, normally required to complete such advanced education or receive such advanced degree exceeds the actual number of years 1 in which such advanced education or degree is obtained by the officer.”. (5) Subsection (d) of such section is amended by striking out “in the Judge Advocate General’s Corps with a view to an immediate call to active duty” and inserting in lieu thereof “with a view to assignment in the Judge Advocate General’s Corps”.
Sec. 6. (a) Subsection (c) of section 5155 of title 10, United States Code (as added by section 351 of the Act (94 Stat. 2902)), is amended to read as follows: “(c) The Secretary of the Navy, whenever the needs of the service require, may convene a selection board under section 611(a) of this title to select an officer in the Nurse Corps or in the Medical Service Corps (if such corps has been established under subsection (a)) for promotion to the grade of commodore admiral. An officer promoted pursuant to such a selection shall be appointed by the Secretary to the position of Director of the Nurse Corps or Director of the Medical Service Corps, respectively, for a term of four years, to serve at the pleasure of the Secretary. For the purpose of computing the total number of flag officers in the staff corps of the Navy under section 95 STAT. 1305444 of this title, an officer so appointed shall be considered an additional number in grade.”. (b)(1)

10 USC 5444.

 Section 5444 of such title (as amended by section 302 of the Act (94 Stat. 2888)) is amended by striking out “specified” each place it appears in subsection (b) and inserting in lieu thereof “prescribed”. (2) Subsection (f) of such section is amended to read as follows: “(f) The Secretary, in his discretion, shall prescribe the number of commodore admirals, and the number of rear admirals, in each staff corps. The total of the prescribed numbers of rear admirals for all the staff corps may not exceed 50 percent of the total number computed under subsection (b).”. (c)(1) Subsection (a) of section 5600 of such title (as amended by section 328 of the Act (94 Stat. 2895)) is amended— (A) by inserting “or who is designated in an officer category in which advanced education or training or special experience is required or will be directly used” in paragraph (1) after “Marine Corps Reserve”; (B) by inserting “or designation” in paragraph (1) after “such appointment” both places it appears; (C) by inserting “as a regular officer on active duty or as a reserve officer” in paragraph (1) after “that he performed”; and (D) by striking out “receiving an original appointment” and “at the time of such appointment” in paragraph (2). (2) Subsection (b)(1) of such section is amended— (A) by inserting “or a designation in an officer category in which advanced education or training or special experience is required or will be directly used” after “officer in the Navy or Marine Corps”; (B) by inserting “or designated” in subparagraph (A) after “appointed”; (C) by inserting “or designation in such a category” in subparagraph (A) after “commissioned officer”; and (D) by striking out the second sentence in subparagraph (A) and inserting in lieu thereof the following: “Except as provided in clause (E), in determining the number of years of constructive service to be credited under this clause to officers in any professional field, the Secretary concerned shall credit an officer with, but with not more than, the number of years of postsecondary education in excess of four that are required by a majority of institutions that award degrees in that professional field for completion of the advanced education or award of the advanced degree.”. (3) Subsection (b)(3) of such section is amended by striking out the period and inserting in lieu thereof “or his designation in an officer category in which advanced education or training or special experience is required or will be directly used.”. (4) Subsection (c) of such section is amended— (A) by inserting “as a commissioned officer (other than a warrant officer) on active duty or” after “while serving”; and (B) by adding at the end thereof the following new sentence: “However, in the case of an officer who completes advanced education or receives an advanced degree while in an active status and in less than the number of years normally required to complete such advanced education or receive such advanced degree, constructive service may, subject to regulations prescribed under subsection (a)(2), be credited to the officer under subsection (b)(1)(A) to the extent that the number of years normally required to complete such advanced education or 95 STAT. 131receive such advanced degree exceeds the actual number of years in which such advanced education or degree is obtained by the officer.”.
Sec. 7. (a) Subsection (a) of section 8353 of title 10, United States Code (as amended by section 205(b) of the Act (94 Stat. 2882)), is amended— (1) by striking out “337 and 363” in paragraph (1) and inserting in lieu thereof “837 and 863”; (2) by inserting “, or receiving a designation in or assignment to an officer category in which advanced education or training or special experience is required or will be directly used,” in paragraph (1) after “in the Air Force”; (3) by inserting “, designation, or assignment” in paragraph (1) after “such appointment” both places it appears; (4) by inserting “as a regular officer on active duty or as a reserve officer” in paragraph (1) after “that he performed”; and (5) by striking out “receiving an original appointment” in paragraph (2) and “at the time of such appointment”. (b) Subsection (h)(1) of such section is amended— (1) by inserting “or a designation in or assignment to an officer category in which advanced education or training or special experience is required or will be directly used” after “officer in the Air Force”; (2) by striking out “appointed in” in subparagraph (A) and inserting in lieu thereof “designated in or assigned to”; (3) by striking out “appointment as a commissioned officer” in subparagraph (A) and inserting in lieu thereof “such designation or assignment”; (4) by striking out the second sentence in subparagraph (A) and inserting in lieu thereof “Except as provided in clause (E), in determining the number of years of constructive service to be credited under this clause to officers in any professional field, the Secretary concerned shall credit an officer with, but with not more than, the number of years of postsecondary education in excess of four that are required by a majority of institutions that award degrees in that professional field for completion of the advanced education or award of the advanced degree.”. (5) by striking out “appointment as an officer,” in subparagraph (B) and inserting in lieu thereof “designation or assignment as an officer in such health profession,”; and (6) by striking out “appointed” in the second sentence of subparagraph (E) and inserting in lieu thereof “designated in or assigned to such health profession”. (c) Subsection (b)(3) of such section is amended by striking out the period and inserting in lieu thereof “or his designation in or assignment to an officer category in which advanced education or training or special experience is required or will be directly used.”. (d) Subsection (c) of such section is amended— (A) by inserting “as a commissioned officer (other than a warrant officer) on active duty or” after “while serving”; and (B) by adding at the end thereof the following new sentence: “However, in the case of an officer who completes advanced education or receives an advanced degree while in an active status and in less than the number of years normally required to complete such advanced education or receive such advanced degree, constructive service may, subject to regulations prescribed under subsection (a)(2), be credited to the officer under subsection (b)(1)(A) to the extent that the number of years 95 STAT. 132normally required to complete such advanced education or receive such advanced degree exceeds the actual number of years in which such advanced education or degree is obtained by the officer.”, (e) Subsection (d) of such section is amended by striking out “in the Judge Advocate General’s Corps” and inserting in lieu thereof “with a view to designation as a judge advocate“.
Sec. 8. (a) Section 601 of the Defense Officer Personnel Management

10 USC 611 note.

Act (94 Stat. 2940) is amended— (1) by striking out “paragraph” in subsection (b) and inserting in lieu thereof “subsection”; and (2) by adding at the end thereof the following new subsection: “(d)(1) Any delay of a promotion of an officer referred to in clause (2) or (3) of subsection (a) that was in effect on September 14, 1981, under the laws and regulations in effect on such date shall continue in effect on and after September 15, 1981, as if such promotion had been delayed under section 624(d) of title 10, United States Code, as

94 Stat. 2857.

added by this Act. “(2) Any action to remove from a promotion list the name of an officer referred to in clause (2) or (3) of subsection (a) that was initiated before September 15, 1981, under the laws and regulations in effect before such date shall continue on and after such date as if such removal action had been initiated under section 629 of title 10, United States Code, as added by this Act.”. (b)

10 USC 611 note.

 Section 602 of such Act (94 Stat. 2940) is amended— (1) by striking out clause (3) of subsection (b) and inserting in lieu thereof the following: “(3) either holds a reserve grade higher than the temporary grade in which he is serving or is on a list of officers recommended for promotion to a reserve grade higher than the temporary grade in which he is serving,”; and (2) by adding at the end thereof the following new subsection: “(c)(1) Any delay of a promotion of an officer referred to in clause (B) of subsection (a)(1) that was in effect on September 14, 1981, under the laws and regulations in effect on such date shall continue in effect on and after September 15, 1981, as if such promotion has been delayed under section 624(d) of title 10, United States Code, as added by this Act. “(2) Any action to remove from a promotion list the name of an officer referred to in clause (B) of subsection (a)(1) that was initiated before September 15, 1981, under the laws and regulations in effect before such date shall continue on and after such date as if such removal action had been initiated under section 629 of title 10, United

94 Stat. 2860.

10 USC 611 note.

 States Code, as added by this Act.”. (c) Section 608(a)(1) of such Act (94 Stat. 2943) is amended by inserting “or is on a list of officers recommended for promotion to” after “serving in”. (d)

94 Stat. 2945.

10 USC 611 note.

 Section 611 of such Act (94 Stat. 2943) is amended by adding at the end thereof the following new subsection: “(c)(1) Any delay of a promotion of an officer referred to in clause (2) of subsection (a) that was in effect on September 14, 1981, under the laws and regulations in effect on such date, shall continue in effect on and after September 15, 1981, as if such promotion had been delayed under section 624(d) of title 10, United States Code, as added by this Act. “(2) Any action to remove from a promotion list the name of an officer referred to in clause (2) of subsection (a) which was initiated before September 15, 1981, under the laws and regulations in effect 95 STAT. 133before such date shall continue on and after such date as if such removal action had been initiated under section 629 of title 10, United States Code, as added by this Act.”.

94 Stat. 2860.

 (e) Section 612 of such Act (94 Stat. 2945) is amended—

10 USC 611 note.

 (1) by striking out “An” and inserting in lieu thereof “(a) Except as provided in subsection (b), an”; and (2) by adding at the end thereof the following new subsection: “(b) An officer who during fiscal year 1981— “(1) failed twice of selection for promotion to the grade of either lieutenant or lieutenant commander, in the Case of an officer in the Navy, or to either captain or major, in the case of an officer in the Marine Corps; and “(2) had not previously failed of selection for promotion to that grade, may not, because of such failures of selection, be involuntarily separated, involuntarily discharged, or retired under chapter 36 of title 10, United States Code, as added by this Act, before June 30,

94 Stat. 2850.

 1982, unless the officer so requests.”. (f) Section 613 of such Act (94 Stat. 2945) is amended—

10 USC 611 note.

 (1) by striking out the period in subsection (a)(1) and inserting in lieu thereof “, except that an officer for whom no means can be established under the laws in effect on September 14, 1981, for computing creditable service in determining whether the officer is subject to involuntary retirement shall be retired under chapter 573 of title 10, United States Code, as in effect on

10 USC 6371 et seq.

 September 14, 1981, on the basis of the years of service of such officer as determined under regulations prescribed under section 624(b).”;

94 Stat. 2951.

10 USC 611 note.

 (2) by striking out subsection (a)(2)(A) and inserting in lieu thereof the following: “(A) removed from active duty under section 1184 of title 10, United States Code, as added by this Act;”; and (3) by inserting “day before the” in subsections (b)(1) and (b)(2) after “who on the”. (g) Section 615(c) of such Act (94 Stat. 2948) is amended by striking

10 USC 611 note.

 out “, in lieu of being reappointed in the line of the Navy under subsection (a), be appointed in that staff corps” and inserting in lieu thereof “request appointment in a staff corps and, with the approval of the Secretary of the Navy, be appointed in that staff corps. Any appointment under this subsection shall be in lieu of the reappointment of the officer under subsection (a)”, (h) Section 616 of such Act (94 Stat. 2949) is amended—

10 USC 611 note.

 (1) by inserting “(a)” before “An officer”; and (2) by adding at the end thereof the following new subsection: “(b) Any female member of the Navy who on April 2, 1981, was appointed under section 591 or 5590 of title 10, United States Code, in the grade of ensign as an officer designated for limited duty may after September 14, 1981, be reappointed as an officer designated for limited duty under section 5596 of title 10, United States Code, as amended by this Act. A member so reappointed shall have a date of rank as an ensign of April 2, 1981, and shall have the same permanent pay grade and status as that member held on April 1, 1981.”. (i) Part B of title VI of such Act (94 Stat. 2945), is amended by adding at the end thereof the following new sections:95 STAT. 134 “contingency authority for navy promotions under prior law
“Sec. 619.

10 USC 611 note.

 If necessary because of unforeseen circumstances, the Secretary of the Navy, during fiscal year 1982, may convene boards to select officers for promotion under chapters 545 and 549 of title 10,

10 USC 5751 et seq., 5891 et seq.

United States Code, as in effect on September 14, 1981, and officers so may be promoted in accordance with such chapters. An officer promoted to a higher grade under the authority of this section

94 Stat. 2945, 2953.

10 USC 611 note.

shall be subject to sections 613 and 629 as if he held that grade on September 14, 1981, and shall have a date of rank to be determined under section 741 of title 10, United States Code, as amended by this

94 Stat. 2869.

Act.
“retention on active duty of certain reserve lieutenant commanders
“Sec. 620.

10 USC 611 note.

 Notwithstanding section 6389 of title 10, United States Code, an officer who on September 14, 1981— “(1) holds the grade of lieutenant commander in the Naval Reserve; “(2) is on active duty as the result of recall orders accepted subsequent to a break in active commissioned service; “(3) is subject to placement on the active-duty list; and “(4) is considered— “(A) to have failed of selection for promotion to the grade of commander one or more times under chapter 545 of title 10, United States Code, as in effect on September 14, 1981; or “(B) to have been later considered to have failed of selection for promotion to the grade of commander one or more

94 Stat. 2850.

times Under chapter 36 of title 10, United States Code, as added by this Act, may be retained on active duty by the Secretary of the Navy for such period as the Secretary considers appropriate.”.
(j)

10 USC 611 note.

 Section 621(b) of such Act (94 Stat. 2950) is amended to read as follows: “(b) Under regulations prescribed by the Secretary of Defense, which shall apply uniformly among the Army, Navy, Air Force, and Marine Corps, the Secretary of the military department concerned, in order to maintain the relative seniority among officers of the Army, Navy, Air Force, and Marine Corps as it existed on September 14, 1981, may adjust the date of rank of officers— “(1) below the grade of brigadier general or commodore admiral during the one-year period beginning on September 15, 1981; and “(2) above the grade of colonel or, in the case of the Navy, captain until there are no longer any officers to whom section 614(d) is applicable.”. (k)

10 USC 611 note.

 Section 624(b) of such Act (94 Stat. 2951) is amended— (1) by inserting “subject to placement on the active-duty list on September 15, 1981, after “In the case of an officer”; and (2) by striking out “Defense” and inserting in lieu thereof “the military department concerned”. (l)

10 USC 611 note.

 Section 626(b) of such Act (94 Stat. 2952) is amended by striking out “any provision of chapter 36” and inserting in lieu thereof “section 1251”. (m)

10 USC 611 note.

 Section 629 of such Act (94 Stat. 2953) is amended by adding at the end thereof the following new sentence: “The Secretary of the military department concerned may waive the requirements of this 95 STAT. 135section and of section 1370(a)(2) of title 10, United States Code, as added by this Act, with respect to any officer described in the preceding sentence.”. (n) Part C of title VI of such Act (94 Stat. 2950) is amended by adding at the end thereof the following new sections: “savings provision for retired grade of certain reserve officers
“Sec. 634. Unless entitled to a higher grade under any other

10 USC 611 note.

 provision of law, a member of the Army or Air Force who is a reserve officer and who— “(1) is on active duty on September 14, 1981; and “(2) after such date retires under section 3911 or 8911 of title 10, United States Code, is entitled to retire in the reserve grade which he held or to which he had been selected for promotion on September 14, 1981.
“savings provision for original appointment in certain grades under existing regulations
“Sec. 635. Any person who before September 15, 1981—

10 USC 611 note.

 “(1) was selected for participation in a postbaccalaureate educational program leading to an appointment as a commissioned officer or had completed a postbaccalaureate program and was selected for appointment as a commissioned officer of the Army, Navy, Air Force, or Marine Corps; “(2) under regulations of the Secretary of the military department concerned in effect on December 12, 1980, would have been appointed and ordered to active duty in a grade specified or determined in accordance with such regulations; and “(3) had not been so appointed and ordered to active duty, may be appointed and ordered to active duty in such grade with a date of rank and position on the active-duty list junior to that of all other officers of the same grade and competitive category serving on active duty.
“retention in grade of certain reserve officers
“Sec. 636. A reserve officer of the Army, Navy, Air Force, or

10 USC 611 note.

 Marine Corps who on September 14, 1981— “(1) is serving on active duty (A) under section 10(b)(2) of the Military Selective Service Act (50 U.S.C. App. 460(b)(2)) for the administration of the Selective Service System, or (B) under section 708 of title 32; and “(2) is serving in a temporary grade or is selected for promotion to a temporary grade, may continue to serve in or may be promoted to and serve in such grade until promoted to a higher grade, separated, or retired.
“savings provision regarding discharge of regular officers
“Sec. 637. An officer of the Regular Army, Regular Navy, Regular

10 USC 611 note.

 Air Force, or Regular Marine Corps who on September 14, 1981, was serving on active duty may not be discharged under section 630(1)(A) of title 10, United States Code, as added by this Act, on or after the day on which that officer completes three years of continuous service as a regular commissioned officer.
95 STAT. 136 “repayment op readjustment and severance pay
“Sec. 638.

10 USC 611 note.

94 Stat. 2870.

 Notwithstanding section 1174(h) of title 10, United States Code, as added by this Act, a person who received readjustment or severance pay before September 15, 1981, and who, on or after September 15, 1981, becomes entitled to retired or retainer pay

10 USC 101, 14 USC 1.

under any provision of title 10 or title 14, United States Code, shall be required to repay that readjustment pay or severance pay in accordance with the laws in effect on September 14, 1981.”.
(o)

10 USC 611 note.

 Section 641 of such Act (94 Stat. 2954) is amended— (1) by inserting “or Dental Corps” in clause (1) after “Medical Corps” both places it appears; (2) by inserting “or dental officer” in clause (1) after “medical officer” both places it appears; and (3) by inserting “or 302b” in clause (2) after “section 302“. (p) The table of contents in section 1(b) of such Act (94 Stat. 2835) is amended— (1) by inserting after the item relating to section 618 the following new items: “Sec. 619. “Sec. 620. and (2) by inserting after the item relating to section 633 the following new items: “Sec. 634. “Sec. 635. “Sec. 636. “Sec. 637. “Sec. 638.
Sec. 9.

Service in grade requirements for women.

10 USC 5752 note.

 Notwithstanding section 5752(a)(3) of title 10, United States Code, for selection boards convened on or after the date of enactment of this Act and before September 15, 1981, service in grade requirements shall be established under regulations prescribed by the Secretary of the Navy for eligibility for consideration for promotion of female officers in the line of the Navy to the grade of lieutenant commander and female officers in the Marine Corps to the grade of major.
Sec. 10. (a)(1) Section 501(10) of the Defense Officer Personnel Management Act (94 Stat. 2908) is amended by striking out subparagraph (A) and inserting in lieu thereof the following: “(A) by striking out the item relating to section 741 and inserting in lieu thereof: “ ’741. (2) Section 502 of such Act (94 Stat. 2908) is amended— (A) by striking out subparagraph (B) of paragraph (9) and inserting in lieu thereof the following: “(B) by adding at the end thereof the following new item: “ ’3396. and (B)

10 USC 3962.

 by striking out “8066” in the first quoted matter in paragraph (19)(A) and inserting in lieu thereof “3066”. (3)

10 USC 5444, 5455.

 Section 503 of such Act (94 Stat. 2911) is amended by striking out paragraphs (19), (23), and (24). (4) Section 504(11) of such Act (94 Stat. 2916) is amended by striking out subparagraph (B) and inserting in lieu thereof the following: “(B) by adding at the end thereof the following new item: “ ’8396. 95 STAT. 137 (b) Effective September 15, 1981, title 10, United States Code, is amended as follows: (1) Section 123(a) is amended by striking out “3494,” and

10 USC 123.

 “8494,”. (2) Section 1075 is amended by inserting “, or an enlisted member of a uniformed service entitled to basic allowance for subsistence,” after “uniformed service” in the first sentence. (3) Section 2147(d)(1) is amended by striking out “section

94 Stat. 1113.

 1072(2)(E)” and inserting in lieu thereof “section 1072(2)(D)”. (4) Section 3034(b) is amended by striking out the comma after “grade”. (5) The table of sections at the beginning of chapter 367 is amended by striking out the item relating to section 3922. (6)(A) Section 5455 is repealed.

Repeal.

 (B) The table of sections at the beginning of chapter 533 is amended by striking out the item relating to section 5455. (7) The table of sections at the beginning of chapter 539 is amended— (A) by striking out the item relating to section 5573a; and (B) by striking out the item relating to section 5596 and inserting in lieu thereof the following: “ 5596. (8) Section 6325(b) is amended— (A) by striking out “under section 5597” and inserting in lieu thereof “or promoted under section 603”; and (B) by striking out “5787 or 5787d” and inserting in lieu thereof “602 or 5721”. (9) Section 8034(b) is amended by striking out the comma after “grade”. (10)(A) Section 1174(c) is amended by striking out “on or after

94 Stat. 2870.

 the effective date of the Defense Officer Personnel Management Act” and inserting in lieu thereof “after September 14, 1981,”. (B) Sections 5896, 5897, 5898(b), 5899, and 6403(a) are amended

94 Stat. 2914, 2915.

 by striking out “the effective date of the Defense Officer Personnel Management Act” each place it appears and inserting in lieu thereof “September 15, 1981”. (c) Effective September 15, 1981, section 415(a) of title 37, United States Code, is amended by striking out “subsections (b) and (c)” and inserting in lieu thereof “subsection (b)”. (d) Effective September 15, 1981, Public Law 93–397 (10 U.S.C. 8202

Repeal.

 note) is repealed.
Sec. 11. (a) Title 10, United States Code, is amended as follows: (1) Section 977(a) is amended by striking out “on or after the

94 Stat. 1119.

 date of the enactment of the Department of Defense Authorization Act, 1981” and inserting in lieu thereof “after September 7, 1980”. (2) Section 1079(b)(4) is amended by striking out “Secretary of

94 Stat. 3254.

 Health, Education, and Welfare” and inserting in lieu thereof “Secretary of Health and Human Services”. (3) Sections 1450(d) and 1452(e) are amended by striking out “Civil Service Commission” and inserting in lieu thereof “Office of Personnel Management”. (4) Section 1451(a)(4) is amended by striking out “the effective

94 Stat. 1705.

 date of the Uniformed Services Survivor Benefits Amendments of 1980” and inserting in lieu thereof “December 1, 1980”. (5) Section 1452(g)(4) is amended by striking out “section 1452

94 Stat. 1706.

 of this title” and inserting in lieu thereof “this section”. 95 STAT. 138 (6)

10 USC 1489.

94 Stat. 1979.

 Section 1489(b)(3) is amended by striking out “section 14 of August 1, 1956 (22 U.S.C. 2679a)” and inserting in lieu thereof “section 413 of the Foreign Service Act of 1980 (22 U.S.C.

94 Stat. 2092.

3973)”. (7)

94 Stat. 2162.

 Section 2002(a) is amended— (A) in the text preceding clause (1) by inserting “(22 U.S.C. 4021(b))” after “section 701(b) of the Foreign Service Act of 1980”; and (B) in clause (2) by inserting “(22 U.S.C. 4021(a))” after “section 701(a) of the Foreign Service Act of 1980”. (8)

94 Stat. 1017, 1018.

 Sections 2324(b)(2)(B) and 2328 are amended by striking out “this Act” and inserting in lieu thereof “this chapter”. (9) Section 2688(a) is amended by striking out “the date of the enactment of the Military Construction Authorization Act, 1980” and inserting in lieu thereof “November 26, 1979”. (10) Section 7430(e) is amended by striking out “1969” each place it appears and inserting in lieu thereof “1979”. (11) Section 9621(f) is amended by striking out the comma in the second sentence. (b)(1) Section 308c(e) of title 37, United States Code, is amended by striking out “Secretary of defense” and inserting in lieu thereof “Secretary of Defense”. (2) Effective as of October 1, 1980, the second sentence of section 403(b) of title 37, United States Code, is amended by striking out “who is in” and all that follows through “who is assigned” and inserting in lieu thereof “who is in a pay grade above pay grade E–6 and who is assigned”. (3)(A) The heading of section 406b of title 37, United States Code, is amended to read as follows:
“§406b. Travel and transportation allowances: members of the uniformed services attached to a ship overhauling or inactivating away from home port”.
(B) The item relating to such section in the table of sections at the beginning of chapter 7 of such title is amended to read as follows: “406b. (c) Section 806(b) of the Military Construction Authorization Act, 1981 (Public Law 96–418; 94 Stat. 1777), is amended by striking out “section 2662” and inserting in lieu thereof “section 2672”.
Approved July 10, 1981.
LEGISLATIVE HISTORY—H.R. 3807: HOUSE REPORT No. 97–141 (Comm. on Armed Services). CONGRESSIONAL RECORD, Vol. 127 (1981):

June 16, considered and passed House.

June 25, considered and passed Senate.

 Public Law 97–23: To amend the Clean Air Act to provide compliance date extensions for steelmaking facilities on a case-by-case basis to facilitate modernization. Public Law 23 Public Law 97–23 95 Stat. 139 1981-07-17 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 139 Public Law 97–23 97th Congress
An Act To amend the Clean Air Act to provide compliance date extensions for steelmaking facilities on a case-by-case basis to facilitate modernization.

July 17, 1981

[H.R. 3520]

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

Steel Industry Compliance Extension Act of 1981.

42 USC 7401 note.

42 USC 7413.

 cited as the “Steel Industry Compliance Extension Act of 1981”.
Sec. 2. Section 113 of the Clean Air Act is amended by adding the following new subsection at the end thereof: “(e)(1) The Administrator may, in his discretion, in the case of any person which is the owner or operator of a stationary source in an iron- and steel-producing operation not in compliance with the emission limitation requirements of an applicable implementation plan, consent to entry of a Federal judicial decree, or to the modification of an existing Federal judicial decree, with such person establishing a schedule for compliance for such source extending beyond December 31, 1982, but ending not later than December 31, 1985, on the following conditions: “(A) the Administrator finds, on the basis of information submitted by the applicant and other information available to him, that such extension of compliance is necessary to allow such person to make capital investments in its iron- and steel-producing operations to improve their efficiency and productivity; “(B) the Administrator finds, on the basis of information submitted by the applicant and other information available to him, that an amount equal to the funds the expenditure of which would have been required to comply by December 31, 1982, with those requirements of an applicable implementation plan for which such extensions of compliance are granted and whose expenditure for such purposes are being deferred until after December 31, 1982, pursuant to such extensions will be invested prior to two years from the date of enactment of this subsection in additional capital investments in the iron- and steel-producing operations owned or operated by such person, and located in communities which already contain iron- and steel-producing operations, to improve their efficiency and productivity; “(C) the Administrator and such person consent to entry of Federal judicial decree(s) establishing a phased program of compliance to bring each stationary source at all of such person’s iron- and steel-producing operations into compliance with the emission limitation requirements of applicable implementation plans (or, with respect to existing stationary sources located in any nonattainment area for which no implementation plan has been approved as meeting the requirements of part D and subject

42 USC 7501.

 to implementation plan(s) which do not require compliance with emission limitations which represent at least reasonably available control technology, compliance with emission limitations which represent reasonably available control technology) as expeditiously as practicable but no later than December 31, 1982, 95 STAT. 140or, in the case of sources for which extensions of compliance have been granted, no later than December 31, 1985; such decree(s) shall also contain, at a minimum, (i) requirements for interim controls (which may include operation and maintenance procedures); (ii) increments of compliance sufficient to assure compliance by the final compliance deadlines; (iii) requirement(s) that the amount referred to in subparagraph (B) above, is to be invested in projects representing additional capital investments in the iron- and steel-producing operations owned or operated by such person for the purposes specified in such subparagraph and shall contain schedule(s) specifying when each such project (or specified alternative project) is to be commenced and completed, as well as increments of progress toward completion; (iv) stipulated monetary penalties covering completion of the air pollution control projects required by the decree, the projects referred to under (iii) above, and such other items as appropriate; (v) monitoring requirements; (vi) reporting requirements (including provision for periodic reports to be filed with the court); and (vii) provisions for preventing increases of emissions from each stationary source; “(D) the Administrator finds, on the basis of information submitted by the applicant and other information available to him, that such person will have sufficient funds to comply with all applicable requirements by the times set forth in the judicial decree(s) entered into pursuant to subparagraph (C) of this subsection; “(E) the Administrator finds, on the basis of information submitted by the applicant and other information available to him, that the applicant is in compliance with existing Federal

42 USC 7413.

judicial decrees (if any) entered under section 113 of this Act applicable to its iron- and steel-producing operations or that any violations of such decrees are de minimus in nature; and “(F) the Administrator finds, on the basis of information submitted by the applicant and other information available to him, that any extension of compliance granted pursuant to this subsection will not result in degradation of air quality during the term of the extension. “(2)

Definitions.

 For the purpose of this subsection, ‘iron- and steel-producing operations’ include production facilities for iron and steel, as well as associated processing, coke making and sintering facilities. For the purpose of this subsection, ‘phased program of compliance’ means a program assuring, to the extent possible, that capital expenditures for achieving compliance at all sources owned or operated by such person in iron- and steel-producing operations must be made during the second and each succeeding year of the period covered by the decree(s) in an amount such that at the end of each such year the cumulative expenditures under the decree(s) will be at least equal to the amount which would have been spent if the total expenditures to be made under the decree(s) were made in equal increments during each year of the decree(s). For the purpose of this subsection, ‘additional capital investments in iron- and steel-producing operations’ means investments which the Administrator finds would not be made during the same time period if extension(s) of time for compliance with clean air requirements were not granted under this subsection. The decree entered into pursuant to subparagraph (C) of paragraph (1) of this subsection shall specify the projects which represent additional capital investment in iron- and steel-producing operations, but may also contain specified alternative projects. The 95 STAT. 141decree may also be modified to substitute equivalent projects for those specified. The owner or operator of iron- and steel-producing operations seeking an extension of compliance under this subsection has the burden of satisfying the Administrator with regard to the findings required in paragraphs (A), (B), (D), (E), and (F). A person which is subject to a judicial decree entered or modified pursuant to this subsection shall not be assessed a noncompliance penalty under section 120 of the Act for any source with an extension of compliance

42 USC 7420.

 under such decree for the period of time covered by the decree only if such source remains in compliance with all provisions and requirements of such decree. “(3) Any records, reports, or information obtained by the Administrator under this subsection shall be available to the public, except that upon a showing satisfactory to the Administrator by any person that records, reports, or information, or particular part thereof (other than emission data) to which the Administrator has access under this section if made public, is likely to cause substantial harm to the person’s competitive position, the Administrator shall consider such record, report, or information or particular portion thereof confidential in accordance with the purposes of section 1905 of title 18 of the United States Code, except that such record, report, or information may be disclosed to other officers, employees, or authorized representatives of the United States concerned with carrying out this Act or when relevant in any proceeding under this Act. Any regulations promulgated under section 114 of this Act apply with equal force to

42 USC 7414.

 this subsection subject, however, to any changes that the Administrator shall determine are necessary. This paragraph does not constitute authority to withhold records, reports, or information from the Congress. “(4) Nothing in this subsection shall preclude or deny the right of any State or political subdivision to enforce any air pollution requirements in any State judicial or administrative forum. “(5) The provisions of this subsection shall be self-executing, and no implementing regulations shall be required. “(6) Upon receipt of an application for an extension of time under this subsection with respect to any stationary source the Administrator shall promptly— “(i) publish notice of such receipt in the Federal Register;

Publication in Federal Register.

 “(ii) notify the Governor of the State in which the stationary source is located; and “(iii) notify the chief elected official of the political subdivision in which the source is located. “(7)(A) The Administrator shall publish in the Federal Register

Publication in Federal Register.

 notice of any finding made, or other action taken, by him in connection with the entry of any consent decree or modification of an existing consent decree pursuant to this subsection or in connection with the Administrator’s failure or refusal to consent to such a decree. “(B)(i) Except as provided in clause (ii), any finding or other action of the Administrator under this subsection with respect to any stationary source, and any failure or refusal of the Administrator to make any such finding or to take any such action under this subsection, shall be reviewable only by a court in which a civil action under section 113 of this Act is brought against the owner or operator

42 USC 7413.

 of such stationary source. “(ii) Where, before the date of the enactment of the Steel Industry Compliance Extension Act of 1981, a civil action was brought under

Ante, p. 139.

 this Act against the owner or operator of such stationary source, any 95 STAT. 142finding or other action of the Administrator under this subsection with respect to such stationary source, and any failure or refusal of the Administrator to make any such finding or to take any such action under this subsection, shall be reviewable only by the court in which the civil action was brought. “(8)

42 USC 7604.

 The provisions of section 304(b)(1)(B) of this Act shall be applicable to this subsection. “(9) For a source which receives an extension under this subsection, air pollution requirements specified in Federal judicial decrees entered into or modified under this subsection that involves such source may not be modified to extend beyond December 31, 1985.”.
Sec. 3.

42 USC 7410.

 Section 110(a)(3)(C) of the Clean Air Act is amended to read as follows: “(C) Neither the State, in the case of a plan (or portion thereof) approved under this subsection, nor the Administrator, in the case of a plan (or portion thereof) promulgated under subsection (c), shall be required to revise an applicable implementation plan

42 USC 7418.

because one or more exemptions under section 118 (relating to Federal facilities), enforcement orders under section 113(d), suspensions under section 110 (f) or (g) (relating to temporary energy

42 USC 7419.

or economic authority), orders under section 119 (relating to primary nonferrous smelters), or extensions of compliance in

Ante, p. 139.

decrees entered under section 113(e) (relating to iron- and steel-producing operations) have been granted, if such plan would have met the requirements of this section if no such exemptions, orders, or extensions had been granted.”.
Approved July 17, 1981.
LEGISLATIVE HISTORY—H.R. 3520 (S. 63): HOUSE REPORTS: No. 97–121 (Comm. on Energy and Commerce) and No. 97–161 (Comm. of Conference). SENATE REPORT No. 97–133 accompanying S. 63 (Comm. on Environment and Public Works). CONGRESSIONAL RECORD, Vol. 127 (1981):

May 28, considered and passed House.

June 11, considered and passed Senate, amended, in lieu of S. 63.

June 25, Senate agreed to conference report.

June 26, House agreed to conference report.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 17, No. 29 (1981):

July 17, Presidential statement.

 Public Law 97–24: To extend the time for conducting the referendum with respect to the national marketing quota for wheat for the marketing year beginning June 1, 1982, and to eliminate the requirement that the Secretary of Agriculture waive interest on loans made on 1980 and 1981 crops of wheat and feed grains placed in the farmer-held grain reserve. Public Law 24 Public Law 97–24 95 Stat. 143 1981-07-23 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 143 Public Law 97–24 97th Congress
An Act To extend the time for conducting the referendum with respect to the national marketing quota for wheat for the marketing year beginning June 1, 1982, and to eliminate the requirement that the Secretary of Agriculture waive interest on loans made on 1980 and 1981 crops of wheat and feed grains placed in the farmer-held grain reserve.

July 23, 1981

[S. 1395]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That section 336 of

Wheat.

Marketing quota referendum.

 the Agricultural Adjustment Act of 1938 (7 U.S.C. 1336) is amended by striking out the last sentence and inserting in lieu thereof a new sentence as follows: “Notwithstanding any other provision hereof, the referendum with respect to the national marketing quota for wheat for the marketing year beginning June 1, 1982, may be conducted not later than the earlier of the following: (1) thirty days after adjournment sine die of the first session of the Ninety-seventh Congress, or (2) October 15, 1981.”.
Sec. 2. Section 110(b) of the Agricultural Act of 1949 (7 U.S.C.

Waiver.

 1445e(b)) is amended by deleting in clause (3) of the second sentence the phrase “, and the Secretary shall waive such interest on loans made on the 1980 and 1981 crops of wheat and feed grains”.
Approved July 23, 1981.
LEGISLATIVE HISTORY—S. 1395: CONGRESSIONAL RECORD, Vol. 127 (1981):

June 25, considered and passed Senate.

July 9, considered and passed House.

 Public Law 97–25: To amend the Truth in Lending Act to encourage cash discounts, and for other purposes. Public Law 25 Public Law 97–25 95 Stat. 144 1981-07-27 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 144 Public Law 97–25 97th Congress
An Act To amend the Truth in Lending Act to encourage cash discounts, and for other purposes.

July 27, 1981

[H.R. 31]

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

Cash Discount Act.

15 USC 1601 note.
That this Act may be cited as the “Cash Discount Act”
<num value="I">TITLE I—</num><heading>CASH DISCOUNTS</heading> <section class="firstIndent1 fontsize10"> <num value="101"><inline class="smallCaps">Sec</inline>. 101. </num> <content>Section 167(b) of the Truth in Lending Act (15 U.S.C. 1666f(b)) is amended to read as follows:<quotedContent> <subsection class="indent0 fontsize10"> <num value="b">“(b) </num> <content>With respect to any sales transaction, any discount from the regular price offered by the seller for the purpose of inducing payment by cash, checks, or other means not involving the use of an open-end credit plan or a credit card shall not constitute a finance <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1605">15 USC 1605</ref>.</p></sidenote>charge as determined under section 106 if such discount is offered to all prospective buyers and its availability is disclosed clearly and conspicuously.”.</content> </subsection> </quotedContent> </content> </section> <section class="firstIndent1 fontsize10"> <num value="102"><inline class="smallCaps">Sec</inline>. 102. </num><subsection class="inline"><num value="a">(a) </num> <content class="inline">Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is amended by adding at the end thereof the following:<quotedContent> <subsection class="indent0 fontsize10"> <num value="z">“(z) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">“Regular price.”</p></sidenote> <content class="inline">As used in this section and section 167, the term ‘regular price’ means the tag or posted price charged for the property or service if a single price is tagged or posted, or the price charged for the property or service when payment is made by use of an open-end credit plan or a credit card if either (1) no price is tagged or posted, or (2) two prices are tagged or posted, one of which is charged when payment is made by use of an open-end credit plan or a credit card and the other when payment is made by use of cash, check, or similar means. For purposes of this definition, payment by check, draft, or other negotiable instrument which may result in the debiting of an open-end credit plan or a credit cardholder’s open-end account shall not be considered payment made by use of the plan or the account.”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1602">15 USC 1602 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/169">94 Stat. 169</ref>.</p></sidenote> <chapeau class="inline">Effective April 10, 1982—</chapeau> <paragraph class="firstIndent1 fontsize10"> <num value="1">(1) </num> <content>subsections (x) and (y) of section 103 of the Truth in Lending Act (as redesignated by section 603(b) of Public Law 96–221) are redesignated as subsections (y) and (z), respectively; and</content> </paragraph> <paragraph class="firstIndent1 fontsize10"> <num value="2">(2) </num> <content>subsection (z) of such section (as added by subsection (a)) is redesignated as subsection (x) and is inserted after subsection (w).</content> </paragraph> </subsection> </section> <section class="firstIndent1 fontsize10"> <num value="103"><inline class="smallCaps">Sec</inline>. 103. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1666f">15 USC 1666f note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><i>Supra</i>.</p></sidenote> <content class="inline">Any rule or regulation of the Board of Governors of the Federal Reserve System pursuant to section 167(b) of the Truth in Lending Act, as such section was in effect on the day before the date of enactment of this Act, is null and void.</content> </section> <num value="II">TITLE II—</num><heading>BAN ON CREDIT CARD SURCHARGES</heading> <section class="firstIndent1 fontsize10"> <num value="201"><inline class="smallCaps">Sec</inline>. 201. </num> <content>Section 3(c)(2) of Public Law 94–222 (15 U.S.C. 1666f note) is amended to read as follows:<quotedContent> <paragraph class="indent0 firstIndent1 fontsize10"> <num value="2">“(2) </num> <content>The amendments made by paragraph (1) shall cease to be effective on February 27, 1984.”.</content> </paragraph> </quotedContent> </content> </section> <page identifier="/us/stat/95/145">95 STAT. 145</page> <section class="firstIndent1 fontsize10"> <num value="202"><inline class="smallCaps">Sec</inline>. 202. </num> <chapeau>Not later than two years after the date of enactment of<sidenote><p class="indent0 firstIndent0 fontsize8">Study findings, submittal to congressional committees.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1601">15 USC 1601 note</ref>.</p></sidenote> this Act, the Board of Governors of the Federal Reserve System shall prepare a study, on the basis of a review and analysis of such data and studies as it finds appropriate, and shall submit its findings to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives on the effect of charge card transactions upon card issuers, merchants, and consumers, including to the extent possible—</chapeau> <paragraph class="firstIndent1 fontsize10"> <num value="1">(1) </num> <content>the effects of charge card transactions on retail sales;</content> </paragraph> <paragraph class="firstIndent1 fontsize10"> <num value="2">(2) </num> <content>the effect of charge card usage on consumers and on merchants, including the effects on merchant cost; and</content> </paragraph> <paragraph class="firstIndent1 fontsize10"> <num value="3">(3) </num> <content>the effect of charge card usage on the pricing of goods and services, with a comparison of the costs resulting from payment by (A) currency and coin, (B) by personal check or similar instrument, (C) by in-house credit plans, and (D) by charge card</content> </paragraph> </section> <num value="III">TITLE III—</num><heading>MISCELLANEOUS</heading> <section class="firstIndent1 fontsize10"> <num value="301"><inline class="smallCaps">Sec</inline>. 301. </num> <content>Section 625(c) of Public Law 96–221 is amended by adding<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/185">94 Stat. 185</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1602">15 USC 1602 note</ref>.</p></sidenote> at the end thereof the following: “<quotedText>Any creditor who elects to comply with such amendments and any assignee of such a creditor shall be subject to the provisions of sections 130 and 131 of the Truth in Lending Act, as amended by sections 615 and 616, respectively, of this title.</quotedText>”.<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/180/182">94 Stat. 180, 182</ref>.</p></sidenote> </content> </section> <section class="firstIndent1 fontsize10"> <num value="302"><inline class="smallCaps">Sec</inline>. 302. </num> <content>Section 5137 of the Revised Statutes (12 U.S.C. 29) is<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1640,">15 USC 1640, 1641</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/186">94 Stat. 186</ref>.</p></sidenote> amended by adding at the end thereof the following new paragraph:<quotedContent> <p class="indent0 firstIndent1 fontsize10">“Notwithstanding any other provision of this section, any national banking association which, on the date of enactment of this paragraph, held title to and possession of real estate which was carried on the association’s books at a nominal value on December 31, 1979, may continue to hold such real estate until December 31, 1982, if the earnings from such real estate are separately disclosed in the financial statements of the association.”.</p> </quotedContent> </content> </section> <section class="firstIndent1 fontsize10"> <num value="303"><inline class="smallCaps">Sec</inline>. 303. </num><subsection class="inline"><num value="a">(a) </num> <content class="inline">Section 204 of the Public Health Service Act is<sidenote><p class="indent0 firstIndent0 fontsize8">Presidential appointee.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s205">42 USC 205</ref>.</p></sidenote> amended by inserting after the first sentence the following new sentence: “<quotedText>The President may appoint to the office of Surgeon General an individual who is sixty-four years of age or older.</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <content>Section 211(a)(1) of such Act is amended by adding at the end<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s212">42 USC 212</ref>.</p></sidenote> thereof the following new sentence: “<quotedText>This paragraph does not apply to the Surgeon General of the United States.</quotedText>”.</content> </subsection> </section> Approved July 27, 1981.
LEGISLATIVE HISTORY—H.R. 31 (H.R. 3132) (S. 414): HOUSE REPORT No. 97–159 (Comm. of Conference)). SENATE REPORT No. 97–23 accompanying S. 414 (Comm, on Banking, Housing, and Urban Affairs). CONGRESSIONAL RECORD, Vol. 127 (1981):

Feb. 24, considered and passed House.

Mar. 5, S. 414 considered in Senate.

Mar. 12, considered and passed Senate, amended, in lieu of S. 414.

May 4, H.R. 3182 considered and passed House.

May 20, June 24, House considered and agreed to conference report.

July 14, Senate agreed to conference report.

 Public Law 97–26: Making an urgent supplemental appropriation for the Department of Health and Human Services for the fiscal year ending September 30, 1981. Public Law 26 Public Law 97–26 95 Stat. 146 1981-07-29 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 146 Public Law 97–26 97th Congress
Joint Resolution Making an urgent supplemental appropriation for the Department of Health and Human Services for the fiscal year ending September 30, 1981.

July 29, 1981

[H.J. Res. 308]

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

Department of Health and Human Services.

Supplemental appropriation.
That the following sum is appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 1981, namely: DEPARTMENT OF HEALTH AND HUMAN SERVICES Health Services Administration health services For an additional amount for “Health Services”, $16,800,000: Provided, That not more than $145,199,000 shall be available under this head for operation of Public Health Service hospitals and clinics.
Approved July 29, 1981.
LEGISLATIVE HISTORY—H.J. Res. 308: HOUSE REPORT No. 97–192 (Comm. on Appropriations). CONGRESSIONAL RECORD, Vol. 127 (1981):

July 23, considered and passed House and Senate.

 Public Law 97–27: Designating the week of October 4 through October 10, 1981, as “National Diabetes Week”. Public Law 27 Public Law 97–27 95 Stat. 147 1981-08-04 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 147 Public Law 97–27 97th Congress
Joint Resolution Designating the week of October 4 through October 10, 1981, as “National Diabetes Week”.

Aug. 4, 1981

[H.J. Res. 84]

 Whereas diabetes kills more Americans than all other diseases except cancer and cardiovascular diseases; and Whereas ten million Americans suffer from diabetes and $5,300,000,000 annually are used for health care costs, disability payments, and lost wage costs due to diabetes; and Whereas a national awareness of the diabetes problem may stimulate interest and concern leading to increased research and eventually a cure for diabetes: Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That the week of October 4 National

National Diabetes Week.

Designation.

 through October 10, 1981, is designated as “National Diabetes Week”, and the President is authorized and requested to issue a proclamation calling upon the people of the United States to observe that week with appropriate ceremonies and activities.
Approved August 4, 1981.
LEGISLATIVE HISTORY—H.J. Res. 84 (S.J. Res. 74): CONGRESSIONAL RECORD, Vol. 127 (1981):

Mar. 26, considered and passed House.

July 24, considered and passed Senate in lieu of S.J. Res. 74.

 Public Law 97–28: Designating the week beginning March 7, 1982, as “Women’s History Week”. Public Law 28 Public Law 97–28 95 Stat. 148 1981-08-04 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 148 Public Law 97–28 97th Congress
Joint Resolution Designating the week beginning March 7, 1982, as “Women’s History Week”.

Aug. 4, 1981

[S.J. Res. 28]

 Whereas American women of every race, class, and ethnic background helped found the Nation in countless recorded and unrecorded ways as servants, slaves, nurses, nuns, homemakers, industrial workers, teachers, reformers, soldiers, and pioneers; Whereas American women have played and continue to play a critical economic, cultural, and social role in every sphere of our Nation’s life by constituting a significant portion of the labor force working in and outside of the home; Whereas American women have played a unique role throughout our history by providing the majority of the Nation’s volunteer labor force and have been particularly important in the establishment of early charitable philanthropic and cultural institutions in the country; Whereas American women of every race, class, and ethnic background served as early leaders in the forefront of every major progressive social change movement, not only to secure their own right of suffrage and equal opportunity, but also in the abolitionist movement, the emancipation movement, the industrial labor union movement, and the modem civil rights movement; and Whereas despite these contributions, the role of American women in history has been consistently overlooked and undervalued in the body of American history: Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,

Women’s History Week.

Designation.
That the week beginning March 7, 1982, is designated as “Women’s History Week”, and the President is requested to issue a proclamation calling upon the people of the United States to observe such week with appropriate ceremonies and activities.
Approved August 4, 1981.
LEGISLATIVE HISTORY—S.J. Res. 28: CONGRESSIONAL RECORD, Vol. 127 (1981):

Mar. 10, considered and passed Senate.

July 15, considered and passed House, amended.

July 24, Senate concurred in House amendments.

 Public Law 97–29: Designating August 8, 1982, as “National Children’s Day”. Public Law 29 Public Law 97–29 95 Stat. 149 1981-08-06 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 149 Public Law 97–29 97th Congress
Joint Resolution Designating August 8, 1982, as “National Children’s Day”.

Aug. 6, 1981

[H.J. Res. 191]

 Whereas America’s children represent new life and new hope for the future of the Nation and the world; Whereas children should be regarded as this Nation’s most precious resource, and be assured of proper guidance and opportunity to be prepared to become productive citizens and responsible leaders of tomorrow; Whereas children have a right to quality education, freedom from hunger, freedom from poverty, freedom from discrimination, and the legacy of a world at peace; Whereas the Nation’s adults have an obligation to create a better world which is conducive to the well-being of the children of the United States, a world in which children can feel secure in the knowledge that they will have the opportunity to achieve their maximum potential as adults; and Whereas the Nation should affirm its commitment to focus on the joys, the rights, and the needs of children so as to create a better life for them: Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That August 8, 1982, is

National Children’s Day.

Designation.

 designated as “National Children’s Day” and the President is requested to issue a proclamation commemorating the occasion and calling upon the people of the United States to observe that day with appropriate ceremonies and activities.
Approved August 6, 1981.
LEGISLATIVE HISTORY—H.J. Res. 191: CONGRESSIONAL RECORD, Vol. 127 (1981):

July 23, considered and passed House.

July 24, considered and passed Senate.

 Public Law 97–30: To amend the District of Columbia Self-Government and Governmental Reorganization Act to increase the amount authorized to be appropriated as the annual Federal payment to the District of Columbia. Public Law 30 Public Law 97–30 95 Stat. 150 1981-08-06 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 150 Public Law 97–30 97th Congress
An Act To amend the District of Columbia Self-Government and Governmental Reorganization Act to increase the amount authorized to be appropriated as the annual Federal payment to the District of Columbia.

Aug. 6, 1981

[S. 1040]

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

District of Columbia Self-Government and Governmental Reorganization Act, amendment.

D.C. Code 47–2501d.
That section 502 of the District of Columbia Self-Government and Governmental Reorganization Act (D.C. Code, sec. 2501d) is amended by striking out “for the fiscal year ending September 30, 1978, and for each fiscal year thereafter the sum of $300,000,000” in the first sentence and inserting in lieu thereof “for each of the fiscal years ending September 30, 1978, September 30, 1979, September 30, 1980, and September 30, 1981, the sum of $300,000,000; and for the fiscal year ending September 30, 1982, and for each fiscal year ending after September 30, 1982, the sum of $336,600,000”.
Approved August 6, 1981.
LEGISLATIVE HISTORY—S. 1040 (H.R. 2819): HOUSE REPORT No. 97–31 accompanying H.R. 2819 (Comm. on the District of Columbia). SENATE REPORT No. 97–80 (Comm. on Governmental Affairs). CONGRESSIONAL RECORD, Vol. 127 (1981):

June 2, considered and passed Senate.

July 27, H.R. 2819 considered and passed House; proceedings vacated and S. 1040 passed in lieu.

 Public Law 97–31: To revise the laws pertaining to the Maritime Administration. Public Law 31 Public Law 97–31 95 Stat. 151 1981-08-06 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 151 Public Law 97–31 97th Congress
An Act To revise the laws pertaining to the Maritime Administration.

Aug. 6, 1981

[H.R. 4074]

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

Maritime Act of 1981.

46 USC 1601 note.

Maritime Administration, transfer to Transportation Department.

46 USC 1601.

46 USC 1602.

 cited as the “Maritime Act of 1981”.
Sec. 2. The Maritime Administration of the Department of Commerce is transferred to the Department of Transportation.
Sec. 3. There are transferred to the Department of Transportation and vested in the Secretary of Transportation all functions, powers, and duties relating to the Maritime Administration of the Secretary of Commerce and of officers and offices of the Department of Commerce.
Sec. 4. There shall be at the head of the Maritime Administration

Administrator.

46 USC 1603.

 an Administrator, who shall be appointed by the President, by and with the advice and consent of the Senate, and who shall be compensated at the rate provided for level III of the Executive Schedule. The

5 USC 5314.

 Maritime Administrator shall report directly to the Secretary of Transportation and shall perform such duties as the Secretary of Transportation shall prescribe.
Sec. 5. In carrying out any function transferred by this Act, the

46 USC 1604.

 Secretary of Transportation may exercise any authority available by law to the Secretary of Commerce with respect to such function and the actions of the Secretary of Transportation in exercising such authority shall have the same force and effect as if exercised by the Secretary of Commerce on the day preceding the effective date of this Act.
Sec. 6. The personnel employed in connection with, and the assets,

Personnel, assets, liabilities, and records.

46 USC 1605.

 liabilities, contracts, property, facilities, records, and unexpended balance of appropriations, and other funds employed, held, used, arising from, available to, or to be made available in connection with the functions and offices, or portions thereof, transferred by this Act, including all Senior Executive Service positions, subject to section 202 of the Budget and Accounting Procedures Act of 1950, shall be

31 USC 581c.

 transferred to the Secretary of Transportation for appropriate allocation. Personnel employed in connection with functions transferred by this Act shall be transferred in accordance with any applicable laws and regulations relating to transfer of functions. Unexpended funds transferred pursuant to this section shall be used only for the purposes for which the funds were originally authorized and appropriated, except that such funds may be used for the expenses associated with the transfer pursuant to this Act.
Sec. 7. In order to facilitate the transfer effected by this Act, the

46 USC 1606.

 Director of the Office of Management and Budget is authorized and directed to make such determinations as may be necessary with regard to functions, offices, or portions thereof transferred by this Act, and to make such additional incidental dispositions of personnel, assets, liabilities, grants, contracts, property, records, and unexpended balances of appropriations, authorizations, apportionments, 95 STAT. 152allocations, and other funds held, used, arising from, available to, or to be made available in connection with such functions, offices, or portions thereof, as may be necessary to resolve disputes between the Secretaries of Commerce and Transportation which may arise in connection with the transfer. This section does not vest in the Director of the Office of Management and Budget any of the functions, powers, or duties of the Maritime Administration, the Secretary of Commerce, or the Secretary of Transportation. The authority and direction given by this section to the Director of the Office of Management and Budget shall terminate sixty days after enactment.
Sec. 8.

46 USC 1607.

 With the consent of the Secretary of Commerce, the Secretary of Transportation may use the services of such officers, employees, and other personnel of the Department of Commerce as needed to implement this Act.
Sec. 9. (a)

46 USC 1608.

 All orders, determinations, rules, regulations, permits, grants, contracts, agreements, certificates, licenses, and privileges— (1) which have been issued, made, granted, or allowed to become effective by the President, any Federal department or agency or official thereof, or by a court of competent jurisdiction, in the performance of functions which are transferred under this Act to the Secretary of Transportation or the Department of Transportation, and (2) which are in effect at the time this Act takes effect shall continue in effect according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with law by the President, the Secretary of Transportation, or other authorized official, a court of competent jurisdiction, or by operation of law. (b)(1) This Act does not affect any proceedings, including notices of proposed rulemaking, or any application for any license, permit, certificate, or financial assistance, pending on the effective date of this Act, but such proceedings and applications, to the extent that they relate to functions so transferred and except as provided in paragraph (2), shall be continued at the Department of Transportation. Orders shall be issued in such proceedings, appeals shall be taken therefrom, and payments shall be made pursuant to such orders, as if this Act had not been enacted; and orders issued in any such proceedings shall continue in effect until modified, terminated, superseded, or revoked by the Secretary of Transportation, by a court of competent jurisdiction, or by operation of law. This subsection does not prohibit the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that the proceeding could have been discontinued or modified if this Act had not been enacted. (2)

Maritime Subsidy Board, pending actions.

 Actions of the Maritime Subsidy Board pending on review before the Secretary of Commerce on the day preceding the effective date of this Act shall remain with the Secretary of Commerce, unless otherwise agreed between the Secretary of Commerce and the Secretary of Transportation, for final administrative disposition as though this Act had not been enacted. (3) The Secretary of Transportation may promulgate regulations providing for the orderly transfer of proceedings continued under paragraph (1). (c) Except as provided in subsection (e)— (1) the provisions of this Act shall not affect actions commenced prior to the effective date of this Act, and (2) in all such actions, proceedings shall be had, appeals taken, and judgments rendered in the same manner and effect as if this Act had not been enacted. 95 STAT. 153 (d) No action or other proceeding commenced by or against any officer of the Maritime Administration in his official capacity shall abate by reason of the enactment of this Act. No cause of action by or against the Maritime Administration or by or against any officer of the Maritime Administration in his official capacity shall abate by reason of the enactment of this Act. (e) If, before the date on which this Act takes effect, the Secretary of Commerce is a party to an action, and under this Act any function of the Secretary of Commerce which is the subject of the action is transferred to the Secretary of Transportation, then such action shall be continued with the Secretary of Transportation substituted as a party. (f) Orders and actions of the Secretary of Transportation in the

Judicial review and statutory requirements.

 exercise of functions transferred under this Act shall be subject to judicial review as if such orders and actions had been by the Secretary of Commerce exercising such functions immediately preceding their transfer. Any statutory requirements relating to notice, hearings, action upon the record, or administrative review that apply to any function transferred by this Act shall apply to the exercise of such function by the Secretary of Transportation.
Sec. 10. With respect to any function or office transferred by this

46 USC 1609.

 Act and exercised on or after the effective date of this Act, reference in any other Federal law to the Maritime Administration or any of its predecessor agencies or any officer or office the functions of which are so transferred shall be deemed to refer to the Secretary of Transportation, other official, or component of the Department of Transportation to which this Act transfers such functions.
Sec. 11. If any provisions of this Act or the application thereof to

46 USC 1610.

 any person or circumstance is held invalid, neither the remainder of this Act nor the application of such provision to other persons or circumstances shall be affected thereby.
Sec. 12. Conforming Amendments.— (1) Title 5, United States Code, is amended as follows: (A) Section 5314 is amended by inserting “Administrator, Maritime Administration”, at the end thereof. (B) Section 5315 is amended by striking “(8)” following the words “Assistant Secretaries of Commerce”, and substituting “(7)”. (C) Section 5316 is amended by striking “Maritime Administration, Department of Commerce”. (2) Section 203 of the Act of August 14, 1946 (7 U.S.C. 1622), is amended by inserting “, or the Secretary of Transportation,” after “regulatory body” in subsection (j). (3) Title 10, United States Code, is amended as follows: (A) Section 2664(a) is amended by— (i) striking “Secretary of Commerce, and the Chairman of the Federal Maritime Board” in the introductory paragraph and substituting “Secretary of Transportation”; and (ii) striking “Secretary of Commerce or the Federal Maritime Board by 1950 Reorganization Plan Numbered 21, effective May 24, 1950 (64 Stat. 1273)” in paragraph (3) and substituting “Secretary of Transportation”. (B) Section 2665 is amended by— (i) striking “or the Federal Maritime Board” in subsections (a) and (b); and (ii) striking “Federal Maritime Board” at the end of subsection (b) and substituting “Department of Transportation”. 95 STAT. 154 (C) Section 4745(a) is amended by striking “Secretary of Commerce” and substituting “Secretary of Transportation”. (D) Section 7361(b) is amended by— (i) striking “Secretary of Commerce” and substituting “Secretary of Transportation”; and (ii) striking “Department of Commerce” and substituting “Department of Transportation”. (4) Section 148 of title 14, United States Code, is amended by striking “United States Maritime Commission”, and substituting “Maritime Administrator”. (5) Section 42(a) of Public Law 91–469 (15 U.S.C. 1507a) is repealed. (6) The Act of February 14, 1903 (15 U.S.C. 1511), is amended by striking “(c) Maritime Administration;”, and redesignating the paragraphs accordingly. (7) Sections 3 and 8 of the Act of February 14, 1903 (15 U.S.C. 1512 and 1519), are amended by striking “shipping,” and “, and the transportation facilities”. (8)

94 Stat. 1362.

 Section 2 of Public Law 96–371 (15 U.S.C. 1519a) is amended by striking “Secretary of Commerce” and substituting “Secretary of Transportation”, (9) Section 500 of the Act of February 28, 1920 (15 U.S.C. 1528), is amended by striking “Secretary of Commerce” wherever it appears and substituting “Secretary of Transportation”. (10) Section 3 of the Act of July 19, 1940 (16 U.S.C. 18b), is amended by striking “United States Maritime Commission” and substituting “Department of Transportation”. (11) Section 1 of the Act of March 4, 1915 (31 U.S.C. 686), is amended by striking “Federal Maritime Commission” in subsection (a) and substituting “Maritime Administration”. (12) Section 2 of the Act of April 29, 1941 (40 U.S.C. 270f), is amended by striking “Secretary of Commerce” and substituting “Secretary of Transportation”. (13) Section 602 (c) and (d) of the Act of June 30, 1949 (40 U.S.C. 474), is amended in paragraph (16) by— (A) striking “United States Maritime Commission” wherever it appears and substituting “Maritime Administration”; and (B) striking “Commission” and substituting “Administration”. (14) Section 516 of Public Law 90–580 (40 U.S.C. 483a) is amended by inserting “the Department of Transportation,” immediately after “the Department of Commerce,”. (15) Section 203 of the Act of June 30, 1949 (40 U.S.C. 484), is amended in subsection (i) by— (A) striking “United States Maritime Commission” and substituting “Maritime Administration”; and (B) striking “Commission” and substituting “Administration”. (16) Section 2 of the Act of June 22, 1942 (41 U.S.C. 50), is amended by striking “United States Maritime Commission” and substituting “Secretary of Transportation”. (17) Section 5 of the Act of July 1, 1944 (41 U.S.C. 105), is amended by striking “Chairman of the Maritime Commission” and substituting “Secretary of Transportation”. (18) Section 12 of the Act of July 1, 1944 (41 U.S.C. 112), is amended by striking “Maritime Commission” in subsection (h) and substituting “the Department of Transportation”. (19) Section 102 of the Act of August 9, 1955 (42 U.S.C. 1973cc–1), is amended by striking “Secretary of Commerce” in clause (10) and substituting “Secretary of Transportation”. 95 STAT. 155 (20) Section 1 of the Home Port Act (46 U.S.C. 18) is amended by striking “Director of the Bureau of Marine Inspection and Navigation of the Department of Commerce” and substituting “Secretary of Transportation or the Secretary of the Treasury”. (21) The Act of July 24, 1956, is amended by— (A) striking “Secretary of Commerce” wherever it appears in sections 1, 2, and 3 (46 U.S.C. 249, 249a, and 249b) and substituting “Secretary of Transportation”; and (B) striking “with the concurrence of the Secretary of the Treasury” in sections 1 and 3 (46 U.S.C. 249 and 249b). (22) The Act of June 30, 1961 (46 U.S.C. 289b), is amended by striking “Secretary of Commerce” and substituting “Secretary of Transportation”. (23) The Act of October 25, 1919 (46 U.S.C. 363), is amended by striking “United States Shipping Board” and substituting “Department of Commerce and the Maritime Administration”. (24) Section 6 of the Act of May 27, 1936 (46 U.S.C. 382b), is amended by striking “Secretary of Commerce” wherever it appears and substituting “Secretary of the Department in which the Coast Guard is operating or the Secretary of the Treasury”. (25) The Suits in Admiralty Act is amended by— (A) striking the last sentence of section 3 (46 U.S.C. 743); (B) striking “United States Shipping Board” in section 7 (46 U.S.C. 747) and substituting “Maritime Administration”; (C) striking “or the United States Shipping Board” in section 9 (46 U.S.C. 749); (D) striking “or of the United States Shipping Board” in sections 10 and 11 (46 U.S.C. 750 and 751); and (E) striking “and the United States Shipping Board” in section 12 (46 U.S.C. 752). (26) Section 9 of the Shipping Act, 1916 (46 U.S.C. 808) is amended by striking “United States Maritime Commission”, “Commission”, and “Secretary of Commerce” wherever they appear and substituting “Secretary of Transportation”. (27) Section 12 of the Shipping Act, 1916 (46 U.S.C. 811) is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; (B) striking “It” wherever it appears and substituting “The Secretary”; (C) striking “it” wherever it appears and substituting “the Secretary”; and (D) striking “its” wherever it appears and substituting “his”. (28) Section 14a of the Shipping Act, 1916 (46 U.S.C. 813) is amended by— (A) striking “Commission” wherever it appears and substituting “Federal Maritime Commission”; and (B) striking “Secretary of Commerce” and substituting “Secretary of Transportation or the Secretary of the Treasury”. (29) Section 21 of the Shipping Act, 1916 (46 U.S.C. 820) is amended in subsection (a) by— (A) striking “Commission” in the first sentence and substituting “Federal Maritime Commission and Secretary of Transportation”; (B) striking “it” in the first sentence and substituting “it or him”; and (C) striking “Commission” wherever it appears in the second sentence and substituting “Commission or Secretary”. 95 STAT. 156 (30) Section 37 of the Shipping Act, 1916 (46 U.S.C. 835) is amended by striking “Commission” and “Secretary of Commerce” wherever they appear and substituting “Secretary of Transportation”. (31) Sections 40 and 42 of the Shipping Act, 1916 (46 U.S.C. 838 and 840) are amended by striking “Commission” wherever it appears and substituting “Secretary of Transportation”. (32) Section 41 of the Shipping Act, 1916 (46 U.S.C. 839) is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; and (B) striking “its” and substituting “his”. (33) Section 1 of the Merchant Marine Act, 1920 (46 U.S.C. 861) is amended by striking “United States Maritime Commission” and substituting “Secretary of Transportation”. (34) Section 5 of the Merchant Marine Act, 1920 (46 U.S.C. 864) is amended by striking “Commission” wherever it appears and substituting “Secretary of Transportation”. (35) Section 101 of the Act of June 30, 1948 (46 U.S.C. 864a) is amended by striking “Commission” and substituting “Secretary of Transportation”. (36) Section 1 of the Act of June 29, 1949 (46 U.S.C. 864b) is amended by— (A) striking “Maritime Commission” and substituting “Maritime Administration of the Department of Transportation”; and (B) striking “Commission” and substituting “Maritime Administration”. (37) Section 6 of the Merchant Marine Act, 1920 (46 U.S.C. 865) is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; (B) striking “it” wherever it appears and substituting “he”; (C) striking “, upon an affirmative vote of not less than five of its members, spread upon the minutes of the board,”; and (D) striking “its” wherever it appears and substituting “his”. (38) Section 1 of the Act of May 16, 1972 (46 U.S.C. 865a), is amended by striking “Secretary of Commerce” and substituting “Secretary of Transportation”. (39) Section 7 of the Merchant Marine Act, 1920 (46 U.S.C. 866) is amended by— (A) other than in the second proviso, striking “Commission” wherever it appears and substituting “Secretary of Transportation”; and (B) striking “its” and substituting “his”. (40) Section 8 of the Merchant Marine Act, 1920 (46 U.S.C. 867) is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; (B) striking “it” and substituting “he”; and (41) Section 9 of the Merchant Marine Act, 1920 (46 U.S.C. 868) is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; and (B) striking “it” in the last sentence and substituting “he”. (42) Section 10 of the Merchant Marine Act, 1920 (46 U.S.C. 869) is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; and 95 STAT. 157 (B) striking “it” wherever it appears and substituting “he”. (43) Section 12 of the Merchant Marine Act, 1920 (46 U.S.C. 871) is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; (B) striking “it” the first two times it appears and substituting “him”; and (C) striking “its” and substituting “his”. (44) Section 13 of the Merchant Marine Act, 1920 (46 U.S.C. 872) is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; and (B) striking “it” and substituting “him”. (45) Section 17 of the Merchant Marine Act, 1920 (46 U.S.C. 875) is amended by— (A) striking the first paragraph; and (B) striking “Commission” wherever it appears and substituting “Secretary of Transportation”. (46) Section 19 of the Merchant Marine Act, 1920, as amended, is

46 USC 876.

 amended by— (A) striking “The Commission” the first time it appears and substituting “The Secretary of Transportation”; and (B) inserting after subsection (a) the following undesignated paragraph:

“And the Federal Maritime Commission is authorized and directed in aid of the accomplishment of the purposes of this Act:”.

 (47) Section 21 of the Merchant Marine Act. 1920 (46 U.S.C. 877) is amended by striking “Commission” and substituting “Secretary of Transportation”. (48) Section 25 of the Merchant Marine Act, 1920 (46 U.S.C. 881) is amended by striking “Secretary of Commerce and the chairman of the Commission shall each appoint one representative” and substituting “Secretary of Transportation shall appoint one representative and the Secretary of the Department in which the Coast Guard is operating shall appoint one representative (except in a case where such Secretary is the Secretary of Transportation in which case he shall appoint both representatives)”. (49) Section 27 of the Merchant Marine Act, 1920 (46 U.S.C. 883) is amended by striking “Secretary of Commerce” in the fourth proviso and substituting “Secretary of Transportation”. (50) Section 28 of the Merchant Marine Act, 1920 (46 U.S.C. 884) is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; and (B) striking “it” in the second sentence and substituting “he”. (51) Section 202 of the Merchant Marine Act, 1928 (46 U.S.C. 891b) is amended by— (A) striking “Commission” and substituting “Secretary of Transportation”; and (B) striking “its” wherever it appears and substituting “his”. (52) Section 203 of the Merchant Marine Act, 1928 (46 U.S.C. 891c) is amended by striking “Commission” wherever it appears and substituting “Secretary of Transportation”. (53) Section 705 of the Merchant Marine Act, 1928 (46 U.S.C. 891w) is amended by striking “Maritime Commission” and substituting “Secretary of Transportation”. 95 STAT. 158 (54) Subsection B of the Ship Mortgage Act, 1920 (46 U.S.C. 911) is amended by striking “Commission” in paragraph (4) and substituting “Secretary of Transportation”. (55) Subsection O of the Ship Mortgage Act, 1936 (46 U.S.C. 961) is amended by— (A) inserting a period after the word “Commission” in subsection (a); (B) inserting “The Secretary” at the beginning of the second sentence of subsection (a); (C) striking “Board” wherever it appears in subsections (a) and (d) and substituting “Secretary of Transportation”; and (D) striking “Secretary of Commerce” wherever it appears in subsection (e) and substituting “Secretary of Transportation”. (56) Subsection V of the Ship Mortgage Act, 1920 (46 U.S.C. 982) is amended by striking “Secretary of Commerce is” and substituting “Secretary of Transportation or the Secretary of the Treasury are”. (57) Subsection W of the Ship Mortgage Act, 1920 (46 U.S.C. 983) is amended by striking “Secretary of Commerce” and substituting “Secretary of Transportation or the Secretary of the Treasury”. (58) Section 201 of the Ship Mortgage Act, 1936 (46 U.S.C. 1111) is amended by— (A) repealing subsection (a); (B) in subsection (d)— (i) inserting “and the Secretary of Transportation” after “The Commission”; (ii) striking “its” and substituting “their”; and (iii) striking “it” and substituting “them”; (C) in subsection (e)— (i) inserting “and the Secretary of Transportation” after “Commission” when it first appears and at the beginning of the second sentence; (ii) striking “its” in the second sentence and substituting “their”; and (iii) striking the proviso; and (D) inserting “or the Secretary of Transportation” after “Commission” and “it” wherever they appear in subsection (f). (59) The Act of June 25, 1938 (46 U.S.C. 1111a), is amended by striking “United States Maritime Commission” and substituting “Federal Maritime Commission and the Secretary of Transportation”. (60) Section 202 of the Merchant Marine Act, 1936 (46 U.S.C. 1112) is amended by— (A) striking the first sentence; (B) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; (C) striking “it” wherever it appears and substituting “he”; and (D) striking “its” and substituting “his”. (61) Section 204 of the Merchant Marine Act, 1936 (46 U.S.C. 1114) is amended by— (A) striking “United States Maritime Commission” wherever it appears and substituting “Federal Maritime Commission and the Secretary of Transportation”; (B) inserting “and the Secretary of Transportation” following “The Commission” in subsection (b); (C) striking “is” in subsection (b) and substituting “are”; and (D) striking “it” wherever it appears and substituting “them”. 95 STAT. 159 (62) Section 205 of the Merchant Marine Act, 1936 (46 U.S.C. 1115) is amended by striking “Commission” and substituting “Federal Maritime Commission and the Secretary of Transportation”. (63) Section 206 of the Merchant Marine Act, 1936 (46 U.S.C. 1116) is amended by— (A) striking “Commission” where it appears for the first time in the first and second sentences and substituting “Department of Transportation”; and (B) striking “Commission” wherever it appears and substituting “Secretary of Transportation”. (64) Section 207 of the Merchant Marine Act, 1936 (46 U.S.C. 1117), is amended by— (A) striking “Commission” where it appears the first time in the first sentence and substituting “Federal Maritime Commission and the Secretary of Transportation”; (B) inserting “or his” after “its” in the first sentence; (C) inserting “or Secretary” after “Commission” where it appears for the second time in the first sentence and where it appears in the last sentence; and (D) inserting “and Secretary’s” after “Commission’s“ in the second sentence. (65) Section 208 of the Merchant Marine Act, 1936 (46 U.S.C. 1118), is amended by— (A) striking “Commission” and substituting “Federal Maritime Commission and the Secretary of Transportation”; and (B) inserting “or his” after “its” wherever it appears. (66) The proviso clause of section 209(b) of the Merchant Marine Act, 1936 (46 U.S.C. 1119(b)) is amended by striking “Secretary of Commerce” and substituting “Secretary of Transportation”. (67) Sections 210 and 211 of the Merchant Marine Act, 1936 (46 U.S.C. 1120 and 1121) are amended by striking “Secretary of Commerce” where they appear and substituting “Secretary of Transportation”. (68) Section 5 of Public Law 96–387 (46 U.S.C. 1121–1) is amended by

94 Stat. 1546.

 striking “Secretary of Commerce” and substituting “Secretary of Transportation”. (69) Section 212 of the Merchant Marine Act, 1936 (46 U.S.C. 1122), is amended by— (A) striking “Commission” in the first line and substituting “Secretary of Transportation”; (B) inserting after subsection (d) the following undesignated paragraph:

“The Federal Maritime Commission is authorized and directed—”;

 (C) inserting after subsection (e) the following undesignated paragraph:

“The Secretary of Transportation is authorized and directed—”; and

 (D) striking “it” in subsection (g) and substituting “he”. (70) Section 212(A) of the Merchant Marine Act, 1936 (46 U.S.C. 1122a) is amended by striking “Secretary of Commerce” wherever it appears and substituting “Secretary of Transportation”. (71) Section 213 of the Merchant Marine Act, 1936 (46 U.S.C. 1123) is amended by striking “Commission” and substituting “Secretary of Transportation”. (72) Section 214 of the Merchant Marine Act, 1936 (46 U.S.C. 1124) is amended by— 95 STAT. 160 (A) striking “Commission” where it appears the first time in subsection (a) and substituting “Federal Maritime Commission or the Secretary of Transportation”; (B) inserting “or the Secretary,” after “designated by it” in subsection (a); (C) inserting “or the Secretary,” after “Commission” where it appears in the third sentence of subsection (a) and wherever it appears in subsection (b); and (D) striking “it” in subsection (b) and substituting “it or he”. (73) Section 215 of the Merchant Marine Act, 1936 (46 U.S.C. 1125) is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; (B) striking “it” and substituting “his”; and (C) striking “its” in the first sentence and substituting “his”. (74) Section 4 of the Act of February 6, 1941 (46 U.S.C. 1125a), is amended by— (A) striking “Commission” where it appears the first time and substituting “Secretary of Transportation”; and (B) striking “Commission” where it appears the second and third time and substituting “Secretary”. (75) Section 216 of the Merchant Marine Act, 1936 (46 U.S.C. 1126), is amended by— (A) striking “Secretary of Commerce” wherever it appears and substituting “Secretary of Transportation”; (B) striking “it” wherever it appears in subsection (c) and substituting “he”; and (C) striking “itself” in subsection (d) and substituting “himself”. (76) Section 603 of the Department of Defense Appropriation Authorization Act, 1977 (46 U.S.C. 1126–1), is amended by striking “Assistant Secretary of Commerce for Maritime Affairs” and substituting “Maritime Administrator”. (77) Section 34 of the Act of August 10, 1956 (46 U.S.C. 1126a–1), is amended by striking “Secretary of Commerce” and substituting “Secretary of Transportation”. (78) The Act of August 9, 1946 (46 U.S.C. 1126b), is amended by striking “Chairman of the United States Maritime Commission” wherever it appears and substituting “Secretary of Transportation”. (79)

46 USC 1126b-1.

 The Act of September 14, 1961 (46 U.S.C. 1126a–1), is amended by striking “Secretary of Commerce” wherever it appears and substituting “Secretary of Transportation”. (80) The Act of May 11, 1944 (46 U.S.C. 1126c), is amended by striking “Chairman of the United States Maritime Commission” and substituting “Secretary of Transportation”. (81) The Act of July 22, 1947 (46 U.S.C. 1126d), is amended by striking “Secretary of Commerce” wherever it appears and substituting “Secretary of Transportation”. (82) Section 301 of the Merchant Marine Act, 1936 (46 U.S.C. 1131), is amended by striking “Commission” wherever it appears and substituting “Secretary of Transportation”. (83) Section 302 of the Merchant Marine Act, 1936 (46 U.S.C. 1132), is amended by— (A) striking “Secretary of Commerce” in subsection (f) and substituting “Secretary of the Department in which the Coast Guard is operating or the Secretary of the Treasury”; and (B) striking “Commission’s” in subsection (g) and substituting “Transportation Department’s”. 95 STAT. 161 (84) Sections 501, 502, 503, 504, and 505 of the Merchant Marine Act, 1936 (46 U.S.C. 1151, 1152, 1153, 1154, and 1155), are amended by striking “Secretary of Commerce” wherever it appears and substituting “Secretary of Transportation”. (85) Section 502 of the Merchant Marine Act, 1936 (46 U.S.C. 1152), is amended by striking “Secretary of Commerce’s” in subsection (c) and substituting “Secretary of Transportation’s”. (86) Section 402 of the Second Revenue Act of 1940 (46 U.S.C. 1155a), is amended by striking “United States Maritime Commission” and substituting “Secretary of Transportation”. (87) Section 506 of the Merchant Marine Act, 1936 (46 U.S.C. 1156), is amended by— (A) striking “Commission” where it appears the first time and substituting “Secretary of Transportation”; and (B) striking “Commission” where it appears the next four times and substituting “Secretary”. (88) Section 507 of the Merchant Marine Act, 1936 (46 U.S.C. 1157), is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; and (B) striking “its” and substituting “his”. (89) Section 508 of the Merchant Marine Act, 1936 (46 U.S.C. 1158), is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; and (B) striking “it” and substituting “the Maritime Administration of the Department of Transportation”. (90) Section 509 of the Merchant Marine Act, 1936 (46 U.S.C. 1159), is amended by striking “Secretary of Commerce” wherever it appears and substituting “Secretary of Transportation”. (91) Section 510 of the Merchant Marine Act, 1936 (46 U.S.C. 1160), is amended by— (A) striking “Secretary of Commerce” wherever it appears other than the first time it appears in subsection (j) and substituting “Secretary of Transportation”; (B) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; (C) striking “its” in subsection (f) and substituting “his”; (D) striking “Commission’s” wherever it appears in subsection (g) and substituting “Secretary’s”; and (E) striking “Secretary of Commerce” the first time it appears in subsection (j) and substituting “Maritime Administration of the Department of Transportation”. (92) Section 511 of the Merchant Marine Act, 1936 (46 U.S.C. 1161), is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; and (B) striking “it” in paragraphs (g)(1) (A) and (B) and substituting “him”. (93) Section 601 of the Merchant Marine Act, 1936 (46 U.S.C. 1171), is amended by striking “Secretary of Commerce” and “Commission” wherever they appear and substituting “Secretary of Transportation”. (94) Sections 602 and 603 of the Merchant Marine Act, 1936 (46 U.S.C. 1172 and 1173), are amended by striking “Secretary of Commerce” wherever it appears and substituting “Secretary of Transportation”. 95 STAT. 162 (95) Section 604 of the Merchant Marine Act, 1936 (46 U.S.C. 1174), is amended by— (A) striking “Commission” and substituting “Secretary of Transportation”; (B) striking “it” wherever it appears and substituting “he”; and (C) striking the colon and the proviso. (96) Sections 605 and 606 of the Merchant Marine Act, 1936 (46 U.S.C. 1175 and 1176), are amended by striking “Secretary of Commerce” wherever it appears and substituting “Secretary of Transportation”. (97) Section 607 of the Merchant Marine Act, 1936 (46 U.S.C. 1177), is amended by— (A) striking “Secretary of Commerce” whenever it appears and substituting “Secretary”; and (B) adding at the end of subsection (k), a new paragraph (9) to read as follows: “(9)

“Secretary.”

 The term ‘Secretary’ means the Secretary of Commerce with respect to eligible or qualified vessels operated or to be operated in the fisheries of the United States, and the Secretary of Transportation with respect to all other vessels.”. (98) Section 608 of the Merchant Marine Act, 1936 (46 U.S.C. 1178), is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; (B) striking “it” in the second sentence and substituting “he”; and (C) striking “it” in the last sentence and substituting “him”. (99) Sections 609 and 610 of the Merchant Marine Act, 1936 (46 U.S.C. 1179 and 1180), are amended by striking “Commission” wherever it appears and substituting “Secretary of Transportation”. (100) Section 611 of the Merchant Marine Act, 1936 (46 U.S.C. 1181), is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; (B) striking “it” in paragraph (a) and substituting “he”; and (C) striking “any member of the Commission, or any officer thereof designated by the Commission for that purpose” and substituting “the Secretary of Transportation or any officer designated by him for that purpose”. (101) Section 612 of the Merchant Marine Act, 1936 (46 U.S.C. 1182), is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; and (B) striking “its” wherever it appears and substituting “his”. (102) Section 613 of the Merchant Marine Act, 1936 (46 U.S.C. 1183), is amended by— (A) striking “Secretary of Commerce” wherever it appears and substituting “Secretary of Transportation”; (B) striking “it” in subsections (c) and (e) and substituting “he”; and (C) striking “Board” and substituting “Secretary of Transportation”. (103) Section 701 of the Merchant Marine Act, 1936 (46 U.S.C. 1191), is amended by striking “Commission” wherever it appears and substituting “Secretary of Transportation”. (104) Section 702 of the Merchant Marine Act, 1936 (46 U.S.C. 1192), is amended by— 95 STAT. 163 (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; and (B) striking “it” and substituting “he”. (105) Section 703 of the Merchant Marine Act, 1936 (46 U.S.C. 1193), is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; and (B) striking “Commission’s” in subsection (c) and substituting “Secretary’s”. (106) Section 704 of the Merchant Marine Act, 1936 (46 U.S.C. 1194), is amended by— (A) striking “Commission” the first time it appears in the first sentence and substituting “Department of Transportation”; (B) striking “Commission” the second time it appears in the first sentence and substituting “Secretary of Transportation”; and (C) striking all after the first sentence. (107) Section 705 of the Merchant Marine Act, 1936 (46 U.S.C. 1195), is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; (B) striking “its” in the first sentence and substituting “the Department of Transportation’s”; and (C) striking “its” in the second sentence and substituting “his”. (108) Section 706 of the Merchant Marine Act, 1936 (46 U.S.C. 1196), is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; (B) striking “its” in the first sentence and substituting “the Department of Transportation’s”; (C) striking “Commission’s” in the second sentence and substituting “the Department of Transportation’s”; and (D) striking “its” in subsection (b) and substituting “his”. (109) Section 707 of the Merchant Marine Act, 1936 (46 U.S.C. 1197) is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; and (B) striking “Commission’s” in subsection (b) and substituting “Secretary’s”. (110) Section 708 of the Merchant Marine Act, 1936 (46 U.S.C. 1198) is amended by— (A) striking “Commission“ and substituting “Secretary of Transportation”; and (B) striking “its” and substituting “his”. (111) Section 709 of the Merchant Marine Act, 1936 (46 U.S.C. 1199) is amended by striking “Commission” wherever it appears and substituting “Secretary of Transportation”. (112) Section 710 of the Merchant Marine Act, 1936 (46 U.S.C. 1200) is amended by— (A) striking “Commission’s” and substituting “Secretary of Transportation’s”; and (B) striking “Commission” wherever it appears and substituting “Secretary of Transportation”. (113) Section 711 of the Merchant Marine Act, 1936 (46 U.S.C. 1201) is amended by striking “Commission” wherever it appears and substituting “Secretary of Transportation”. (114) Section 712 of the Merchant Marine Act, 1936 (46 U.S.C. 1202) is amended by— 95 STAT. 164 (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; (B) striking "itself in subsection (a) and substituting “himself”; (C) striking “its” in subsection (a) and substituting “his”; and (D) striking “it” in subsection (a) and substituting “he”. (115) Section 713 of the Merchant Marine Act, 1936 (46 U.S.C. 1203) is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; and (B) striking “its” in subsection “the Department of Transportation’s”. (116) Section 714 of the Merchant Marine Act, 1936 (46 U.S.C. 1204) is amended by— (A) striking “Secretary of Commerce” wherever it appears and substituting “Secretary of Transportation”; and (B) striking “Secretary of Commerce’s” and substituting “Secretary of Transportation’s”. (117) Section 715 of the Merchant Marine Act, 1936 (46 U.S.C. 1205) is amended by striking “Secretary of Commerce” wherever it appears and substituting “Secretary of Transportation”. (118) Section 716 of the Merchant Marine Act, 1936 (46 U.S.C. 1206) is amended by— (A) striking “Department of Commerce” and substituting “Department of Transportation”; and (B) striking “Secretary of Commerce” and substituting “Secretary of Transportation”. (119) Section 801 of the Merchant Marine Act, 1936 (46 U.S.C. 1211) is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; and (B) striking “it” the first time it appears in clause (3) and substituting “he”. (120) Section 802 of the Merchant Marine Act, 1936 (46 U.S.C. 1212) is amended by striking “Commission” wherever it appears and substituting “Secretary of Transportation”. (121) Sections 809 and 810 of the Merchant Marine Act, 1936 (46 U.S.C. 1213 and 1222) are amended by striking “Secretary of Commerce” wherever it appears and substituting “Secretary of Transportation”. (122) Section 805 of the Merchant Marine Act, 1936 (46 U.S.C. 1223) is amended by striking “Commission” wherever it appears and substituting “Secretary of Transportation”. (123) Section 806(a) of the Merchant Marine Act, 1936 (46 U.S.C. 1224) is amended by striking “Commission” and substituting “Commission or the Secretary of Transportation”. (124) Section 807 of the Merchant Marine Act, 1936 (46 U.S.C. 1225) is amended by— (A) striking “or before the Commission” in the first sentence and substituting “or before the Commission or the Secretary of Transportation”; and (B) thereafter, striking the word “Commission” wherever it appears and substituting “Secretary of Transportation”. (125) Section 806 (c) and (d) of the Merchant Marine Act, 1936 (46 U.S.C. 1228) is amended by— (A) striking “Commission” substituting “Commission or the Secretary of Transportation”; 95 STAT. 165 (B) striking “United States Maritime Commission” and substituting “Federal Maritime Commission or the Secretary of Transportation”; and (C) inserting “or him” after “functions transferred to it” and after “vested in it” in the last paragraph. (126) Section 901(b) of the Merchant Marine Act, 1936 (46 U.S.C. 1241(b)) is amended by striking “Secretary of Commerce” wherever it appears in subsection (b)(2) and substituting “Secretary of Transportation”. (127) The Act of March 26, 1934 (46 U.S.C. 1241–1), is amended by striking “Commission” and substituting “Secretary of Transportation”. (128) Section 801 of the Act of June 2, 1951 (46 U.S.C. 1241a), is amended by— (A) striking “Secretary of Commerce” wherever it appears and substituting “Secretary of Transportation”; and (B) striking “Department of Commerce” and substituting “Department of Transportation”. (129) Section 101 of the Act of June 20, 1956 (46 U.S.C. 1241b), is amended by striking “Secretary of Commerce” and substituting “Secretary of Transportation”. (130) The Act of August 1, 1956 (46 U.S.C. 1241c), is amended by striking “Secretary of Commerce” wherever it appears and substituting “Secretary of Transportation”. (131) Section 902 of the Merchant Marine Act, 1936 (46 U.S.C. 1242), is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; (B) striking “Commission’s” wherever it appears and substituting “Secretary’s”; (C) striking “United States Maritime Commission” wherever it appears and substituting “Secretary of Transportation”; (D) striking “its” the first time it appears and substituting “his”; and (E) striking “its” the second time it appears and substituting “the Department of Transportation’s”. (132) The Act of June 29, 1940 (46 U.S.C. 1242a), is amended by— (A) striking “United States Maritime Commission” and substituting “Secretary of Transportation”; (B) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; and (C) striking “it” in subsection (b) and substituting “he”. (133) Section 905 of the Merchant Marine Act, 1936 (46 U.S.C. 1244), is amended by— (A) striking “Secretary of Commerce” in subsection (a) and substituting “Secretary of Transportation”; and (B) striking subsection (e). (134) Section 908 of the Merchant Marine Act, 1936 (46 U.S.C. 1247), is amended by striking “Secretary of Commerce” wherever it appears and substituting “Secretary of Transportation”. (135) Section 1101 of the Merchant Marine Act, 1936 (46 U.S.C. 1271), is amended by— (A) striking “Secretary of Commerce” wherever it appears and substituting “Secretary”; and (B) adding a new subsection (n) to read as follows: “(n) The term ‘Secretary’ means the Secretary of Commerce with

“Secretary.”

 respect to fishing vessels and fishing facilities as provided by this 95 STAT. 166title, and the Secretary of Transportation with respect to all other vessels.”. (136) Sections 1102, 1103, 1104, 1105, 1106, 1108, 1109, and 1110 of the Merchant Marine Act, 1936 (46 U.S.C. 1272, 1273, 1274, 1275, 1276, 1279a, 1279b, and 1279c), are amended by striking “Secretary of Commerce” wherever it appears and substituting “Secretary”. (137) Section 101 of Public Law 85–469 (46 U.S.C. 1280), is amended by striking “Secretary of Commerce” and substituting “Secretary”. (138) Section 1201(e) of the Merchant Marine Act, 1936 (46 U.S.C. 1281), is amended by striking “Secretary of Commerce” and substituting “Secretary of Transportation”. (139) Section 1208 of the Merchant Marine Act, 1936 (46 U.S.C. 1288) is amended by striking “Secretary of Commerce” and substituting “Secretary of Transportation”. (140) Section 601 of the Act of November 1, 1951 (46 U.S.C. 1288a), is amended by striking “Secretary of Commerce” and substituting “Secretary of Transportation”. (141) Section 1213 of the Merchant Marine Act, 1936 (46 U.S.C. 1293), is amended by striking “Secretary of Commerce” wherever it appears and substituting “Secretary of Transportation”. (142) Section 1301 of the Merchant Marine Act, 1936 (46 U.S.C. 1295), is amended by— (A) striking “Secretary of Commerce” in paragraph (1) and substituting “Secretary of Transportation”; and (B) striking “Assistant Secretary of Commerce for Maritime Affairs” in paragraph (2) and substituting “Maritime Administrator”. (143) Section 1302 of the Merchant Marine Act, 1936 (46 U.S.C. 1295a), is amended by striking “Secretary of Commerce” in paragraph (1) and substituting “Secretary of Transportation”. (144) Section 1303 of the Merchant Marine Act, 1936 (46 U.S.C. 1295b), is amended by— (A) striking “and the Secretary of Transportation” in paragraph (e)(3); (B) striking “the Secretary of the Department in which the United States Coast Guard is operating with respect to the United States Coast Guard and” in paragraph (e)(4); and (C) striking “Assistant Secretary of Commerce for Maritime Affairs” in paragraph (i)(1) and substituting “Maritime Administrator”. (145) Section 1304 of the Merchant Marine Act, 1936 (46 U.S.C. 1295c), is amended by— (A) striking “and the Secretary of Transportation” in paragraph (g)(5); and (B) striking “the Secretary of the department in which the United States Coast Guard is operating with respect to the United States Coast Guard and” in paragraph (g)(6). (146) Section 14 of the Carriage of Goods by Sea Act (46 U.S.C. 1313) is amended by striking “Secretary of Commerce” and substituting “Secretary of Transportation”. (147) Section 2 of the Civilian Nautical School Act (46 U.S.C. 1332) is amended by— (A) striking “United States Maritime Commission” and substituting “Secretary of Transportation”; (B) striking “Commission” and substituting “Secretary”; and (C) striking “it” and substituting “he”. (148) Section 3 of the Civilian Nautical School Act (46 U.S.C. 1333) is amended by— 95 STAT. 167 (A) striking “Board of Supervising Inspectors, with the approval of the Secretary of Commerce,” in subsection (a) and substituting “Secretary of the Department in which the Coast Guard is operating or Secretary of the Treasury”; and (B) striking “Secretary of Commerce” in subsection (b) and substituting “Secretary of the Department in which the Coast Guard is operating or Secretary of the Treasury”. (149) Section 3 of the Maritime Academy Act of 1958 (46 U.S.C. 1382) is amended by striking “Secretary of Commerce” and substituting “Secretary of Transportation”. (150) Section 305(b) of the Act of June 19, 1934 (47 U.S.C. 305(b)), is amended by striking “United States Shipping Board Bureau or the United States Shipping Board Merchant Fleet Corporation” and substituting “Maritime Administration of the Department of Transportation”. (151) Section 352(a)(2) of the Act of June 19, 1934 (47 U.S.C. 352(a)(2)), is amended by striking “United States Maritime Commission” and substituting “Maritime Administration of the Department of Transportation”. (152) Sections 1, 2, and 3 of the Act of August 9, 1954 (50 U.S.C. 196, 197, and 198), are amended by striking “Secretary of Commerce” wherever it appears and substituting “Secretary of Transportation”. (153) Section 3 of the Merchant Ship Sales Act (50 U.S.C. App. 1736) is amended by— (A) striking “‘Commission’” and substituting “‘Secretary’”; (B) striking “United States Maritime Commission” and substituting “Secretary of Transportation”; and (C) striking “Commission“ wherever it appears and substituting “Secretary”. (154) Sections 4, 6, 7, 8, 10, and 13 of the Merchant Ship Sales Act of 1946 (50 U.S.C. App. 1737, 1739, 1740, 1741, 1743, and 1746) are amended by striking “Commission” wherever it appears and substituting “Secretary”. (155) Section 5 of the Merchant Ship Sales Act (50 U.S.C. App. 1738), is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary”; (B) striking “its” wherever it appears in subsection (a) and substituting “his”; (C) striking “Maritime Commission” and substituting “Secretary of Transportation”; (D) striking “Federal Maritime Board” wherever it appears and substituting “Maritime Administration”; and (E) striking “Secretary of Commerce” wherever it appears and substituting “Secretary of Transportation”. (156) Section 2 of the Act of June 29, 1949 (50 U.S.C. App. 1738a), is amended by striking “Commission” wherever it appears and substituting “Secretary of Transportation”. (157) Section 11 of the Merchant Ship Sales Act (50 U.S.C. App. 1744) is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary of Transportation”; (B) striking “it” the first time it appears in subsection (a)(1) and where it appears in subsection (a)(2) and substituting “the Department of Transportation”; (C) striking “it” where it appears for the second time in subsection (a)(1) and substituting “he”; and 95 STAT. 168 (D) striking “Secretary of Commerce” and substituting “Secretary of Transportation”. (158) Section 12 of the Merchant Ship Sales Act (50 U.S.C. App. 1745) is amended by— (A) striking “Commission” wherever it appears and substituting “Secretary”; and (B) striking “Secretary of Commerce” and substituting “Secretary of Transportation”. (159) Section 26 of the Merchant Marine Act, 1920 (46 U.S.C. 882) is amended by striking, the words “Secretary of Commerce”, and substituting “Secretary of the Department in which the Coast Guard is operating.”
Approved August 6, 1981.
LEGISLATIVE HISTORY—H.R. 4074: HOUSE REPORT No. 97–199 (Comm. on Merchant Marine and Fisheries). CONGRESSIONAL RECORD, Vol. 127 (1981):

July 27, considered and passed House.

July 29, considered and passed Senate.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 17, No. 32 (1981):

Aug. 6, Presidential statement.

 Public Law 97–32: Designating August 13, 1981, as “National Blinded Veterans Recognition Day”. Public Law 32 Public Law 97–32 95 Stat. 169 1981-08-06 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 169 Public Law 97–32 97th Congress
Joint Resolution Designating August 13, 1981, as “National Blinded Veterans Recognition Day”.

Aug. 6, 1981

[S.J. Res. 64]

 Whereas there are thousands of Americans in the United States today who, as a result of service in the military forces of their country, incurred the catastrophic disability of blindness; Whereas, despite the extreme severity of their disability, most of these veterans have received rehabilitation and have returned to and continue to lead useful and productive lives; and Whereas the sacrifices and contributions that these veterans have made and the service rendered by the many veterans who later suffered blindness from nonservice related causes are deserving of national recognition: Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That August 13, 1981, is

National Blinded Veterans Recognition Day.

Designation.

 designated as “National Blinded Veterans Recognition Day”, and the President is authorized and requested to issue a proclamation calling upon the people of the United States and interested groups and organizations to set aside this day to honor the sacrifices and service of blinded veterans in an appropriate manner.
Approved August 6, 1981.
LEGISLATIVE HISTORY—S.J. Res. 64: CONGRESSIONAL RECORD, Vol. 127 (1981):

June 25, considered and passed Senate.

July 30, considered and passed House.

 Public Law 97–33: To amend the International Investment Survey Act of 1976 to provide an authorization for further appropriations, to avoid unnecessary duplication of certain surveys, and for other purposes. Public Law 33 Public Law 97–33 95 Stat. 170 1981-08-07 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 170 Public Law 97–33 97th Congress
An Act To amend the International Investment Survey Act of 1976 to provide an authorization for further appropriations, to avoid unnecessary duplication of certain surveys, and for other purposes.

Aug. 7, 1981

[S. 1104]

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

International Investment Survey Act of 1976, amendment.
That section 4(b) of the International Investment Survey Act of 1976 (22 U.S.C. 3103(b)) is amended by striking all of such section before the words “among other things and to the extent he determines necessary and feasible—” and substituting the following: “(b)

Benchmark surveys.

 With respect to foreign direct investment in the United States, the President shall conduct a benchmark survey covering calendar year 1980, a benchmark survey covering calendar year 1987, and benchmark surveys covering every fifth calendar year thereafter. With respect to United States direct investment abroad, the President shall conduct a benchmark survey covering calendar year 1982, a benchmark survey covering calendar year 1989, and benchmark surveys covering every fifth year thereafter. In conducting surveys pursuant to this subsection, the President shall,”.
Sec. 2.

U.S. portfolio investments abroad.

 Section 4(c)(2) of the International Investment Survey Act of 1976 (22 U.S.C. 3103(c)(2)) is amended to read as follows: “(2) In addition to the benchmark surveys conducted pursuant to paragraph (1), the President shall annually compile currently available data on United States portfolio investment abroad including items such as data on the magnitude and aggregate value of portfolio investment, form of investments, types of investors, nationality of investors and recorded residence of private holders, diversification of

Data analysis, submittal to Congress.

holdings by economic sector, and holders of record. The President shall submit an analysis of such data to the Congress not later than the first day of July of each year.”.
Sec. 3. Section 4 of the International Investment Survey Act of 1976 (22 U.S.C. 3103) is amended by redesignating subsections (e) and (f), and all references thereto, as subsection (f) and (g), respectively, and by inserting the following new subsection after subsection (d): “(e)

Report.

 The Secretary of Commerce shall prepare a report on the estimated cost of monitoring and compiling data on legislation enacted by the major trading partners of the United States, and such other foreign nations as the Secretary deems appropriate, which regulates or restricts foreign inward investment in such foreign nations.”.
95 STAT. 171
Sec. 4. Section 8 of the International Investment Survey Act of 1976 (22 U.S.C. 3107) is amended by striking “ and reviews ” in the section heading, by striking “(a)” immediately after “ Sec. 8.”, and by striking subsection (b).
Sec. 5. Section 9 of the International Investment Survey Act of 1976 (22 U.S.C. 3108) is amended by striking “and” immediately after “1980,” and by inserting immediately before the period at the end thereof the following: “, $4,000,000 for the fiscal year ending September 30, 1982, and such sums as may be necessary for any subsequent fiscal years”.
Approved August 7, 1981.
LEGISLATIVE HISTORY—S. 1104: SENATE REPORT No. 97–68 (Comm. on Commerce, Science, and Transportation). CONGRESSIONAL RECORD, Vol. 127 (1981):

June 2, considered and passed Senate.

June 27, considered and passed House.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 17, No. 33 (1981):

Aug. 7, Presidential statement.

 Public Law 97–34: To amend the Internal Revenue Code of 1954 to encourage economic growth through reduction of the tax rates for individual taxpayers, acceleration of capital cost recovery of investment in plant, equipment, and real property, and incentives for savings, and for other purposes. Public Law 34 Public Law 97–34 95 Stat. 175 1981-08-13 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 172 Public Law 97–34 97th Congress
An Act To amend the Internal Revenue Code of 1954 to encourage economic growth through reduction of the tax rates for individual taxpayers, acceleration of capital cost recovery of investment in plant, equipment, and real property, and incentives for savings, and for other purposes.

Aug. 13, 1981

[H.R. 4242]

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

Economic Recovery Tax Act of 1981.

26 USC 1 note.
SECTION 1. SHORT TITLE; TABLE OF CONTENTS; AMENDMENT OF 1954 CODE. (a) Short Title.—This Act may be cited as the “Economic Recovery Tax Act of 1981”. (b) Table of Contents.— Sec. 1. TITLE I— Subtitle A— Sec. 101. Sec. 102. Sec. 103. Sec. 104. Subtitle B— Sec. 111. Sec. 112. Sec. 113. Sec. 114. Sec. 115. Subtitle C— Sec. 121. Sec. 122. Sec. 123. Sec. 124. Sec. 125. Sec. 126. Sec. 127. Sec. 128. TITLE II— Subtitle A— Sec. 201. Sec. 202. Sec. 203. Sec. 204. 95 STAT. 173 Sec. 205. Sec. 206. Sec. 207. Sec. 208. Sec. 209. Subtitle B— Sec. 211. Sec. 212. Sec. 213. Sec. 214. Subtitle C— Sec. 221. Sec. 222. Sec. 223. Subtitle D— Sec. 231. Sec. 232. Sec. 233. Sec. 234. Sec. 235. Sec. 236. Sec. 237. Subtitle E— Sec. 241. Sec. 242. Sec. 243. Sec. 244. Sec. 245. Sec. 246. Subtitle F— Sec. 251. Sec. 252. Subtitle G— Sec. 261. Sec. 262. Sec. 263. Sec. 264. Sec. 265. Sec. 266. Sec. 267. TITLE III— Subtitle A— Sec. 301. Sec. 302. Subtitle B— Sec. 311. Sec. 312. Sec. 313. Sec. 314. 95 STAT. 174 Subtitle C— Sec. 321. Subtitle D— Sec. 331. Sec. 332. Sec. 333. Sec. 334. Sec. 335. Sec. 336. Sec. 337. Sec. 338. Sec. 339. TITLE IV— Subtitle A— Sec. 401. Sec. 402. Sec. 403. Subtitle B— Sec. 421. Sec. 422. Sec. 423. Sec. 424. Sec. 425. Sec. 426. Sec. 427. Sec. 428. Sec. 429. Subtitle C— Sec. 441. Sec. 442. TITLE V— Sec. 501. Sec. 502. Sec. 503. Sec. 504. Sec. 505. Sec. 506. Sec. 507. Sec. 508. Sec. 509. 95 STAT. 175 TITLE VI— Subtitle A— Sec. 601. Sec. 602. Sec. 603. Sec. 604. Subtitle B— Sec. 611. TITLE VII— Subtitle A— Sec. 701. Subtitle B— Sec. 711. Subtitle C— Sec. 721. Sec. 722. Sec. 723. Sec. 724. Sec. 725. Subtitle D— Sec. 731. Subtitle E— Sec. 741. Sec. 742. Sec. 743. Subtitle F— Sec. 751. TITLE VIII— Subtitle A— Sec. 801. Sec. 802. Subtitle B— Sec. 811. Sec. 812. Subtitle C— Sec. 821. Sec. 822. Sec. 823. Subtitle D— Sec. 831. Sec. 832. 95 STAT. 176 (c) Amendment of 1954 Code.—Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1954.
<num value="I">TITLE I—</num><heading>INDIVIDUAL INCOME TAX PROVISIONS</heading> <subtitle><num value="A">Subtitle A—</num><heading>Tax Reductions</heading> <section><num value="101">SEC. 101. </num> <heading>RATE CUTS; RATE REDUCTION CREDIT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1">26 USC 1</ref>.</p></sidenote><inline class="smallCaps">Rate Reduction</inline>.—</heading><content>Section 1 (relating to tax imposed) is amended to read as follows: <quotedContent> <section><num value="1">“SECTION 1. </num> <heading>TAX IMPOSED.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Married Individuals Filing Joint Returns and Surviving Spouses</inline>.—</heading><chapeau>There is hereby imposed on the taxable income of every married individual (as defined in section 143) who makes a single return jointly with his spouse under section 6013, and every surviving spouse (as defined in section 2(a)), a tax determined in accordance with the following tables:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">For taxable years beginning in 1982</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If taxable income is:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The tax is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Not over $3,400</td> <td style="text-align:left; vertical-align:top">No tax.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $3,400 but not over $5,500</td> <td style="text-align:left; vertical-align:top">12% of the excess over $3,400.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $5,500 but not over $7,600</td> <td style="text-align:left; vertical-align:top">$252, plus 14% of the excess over $5,500.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $7,600 but not over $11,900</td> <td style="text-align:left; vertical-align:top">$546, plus 16% of the excess over $7,600.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $11,900 but not over $16,000</td> <td style="text-align:left; vertical-align:top">$1,234, plus 19% of the excess over $11,900.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $16,000 but not over $20,200</td> <td style="text-align:left; vertical-align:top">$2,013, plus 22% of the excess over $16,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $20,200 but not over $24,600</td> <td style="text-align:left; vertical-align:top">$2,937, plus 25% of the excess over $20,200.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $24,600 but not over $29,900</td> <td style="text-align:left; vertical-align:top">$4,037, plus 29% of the excess over $24,600.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $29,900 but not over $35,200</td> <td style="text-align:left; vertical-align:top">$5,574, plus 33% of the excess over $29,900.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $35,200 but not over $45,800</td> <td style="text-align:left; vertical-align:top">$7,323, plus 39% of the excess over $35,200.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $45,800 but not over $60,000</td> <td style="text-align:left; vertical-align:top">$11,457, plus 44% of the excess over $45,800.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $60,000 but not over $85,600</td> <td style="text-align:left; vertical-align:top">$17,705, plus 49% of the excess over $60,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $85,600</td> <td style="text-align:left; vertical-align:top">$30,249, plus 50% of the excess over $85,600.</td> </tr> </tbody> </table> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">For taxable years beginning in 1983</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If taxable income is:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The tax is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Not over $3,400</td> <td style="text-align:left; vertical-align:top">No tax.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $3,400 but not over $5,500</td> <td style="text-align:left; vertical-align:top">11% of the excess over $3,400.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $5,500 but not over $7,600</td> <td style="text-align:left; vertical-align:top">$231, plus 13% of the excess over $5,500.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $7,600 but not over $11,900</td> <td style="text-align:left; vertical-align:top">$504, plus 15% of the excess over $7,600.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $11,900 but not over $16,000</td> <td style="text-align:left; vertical-align:top">$1,149, plus 17% of the excess over $11,900.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $16,000 but not over $20,200</td> <td style="text-align:left; vertical-align:top">$1,846, plus 19% of the excess over $16,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $20,200 but not over $24,600</td> <td style="text-align:left; vertical-align:top">$2,644, plus 23% of the excess over $20,200.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $24,600 but not over $29,900</td> <td style="text-align:left; vertical-align:top">$3,656, plus 26% of the excess over $24,600.</td> </tr> </tbody> </table> <page identifier="/us/stat/95/177">95 STAT. 177</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If taxable income is:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The tax is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $29,900 but not over $35,200</td> <td style="text-align:left; vertical-align:top">$5,034, plus 30% of the excess over $29,900.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $35,200 but not over $45,800</td> <td style="text-align:left; vertical-align:top">$6,624, plus 35% of the excess over $35,200.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $45,800 but not over $60,000</td> <td style="text-align:left; vertical-align:top">$10,334, plus 40% of the excess over $45,800.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $60,000 but not over $85,600</td> <td style="text-align:left; vertical-align:top">$16,014, plus 44% of the excess over $60,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $85,600 but not over $109,400</td> <td style="text-align:left; vertical-align:top">$27,278, plus 48% of the excess over $85,600.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $109,400</td> <td style="text-align:left; vertical-align:top">$38,702, plus 50% of the excess over $109,400.</td> </tr> </tbody> </table> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">For taxable years beginning after 1983</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If taxable income is:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The tax is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Not over $3,400</td> <td style="text-align:left; vertical-align:top">No tax.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $3,400 but not over $5,500</td> <td style="text-align:left; vertical-align:top">11% of the excess over $3,400.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $5,500 but not over $7,600</td> <td style="text-align:left; vertical-align:top">$231, plus 12% of the excess over $5,500.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $7,600 but not over $11,900</td> <td style="text-align:left; vertical-align:top">$483, plus 14% of the excess over $7,600.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $11,900 but not over $16,000</td> <td style="text-align:left; vertical-align:top">$1,085, plus 16% of the excess over $11,900.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $16,000 but not over $20,200</td> <td style="text-align:left; vertical-align:top">$1,741, plus 18% of the excess over $16,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $20,200 but not over $24,600</td> <td style="text-align:left; vertical-align:top">$2,497, plus 22% of the excess over $20,200.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $24,600 but not over $29,900</td> <td style="text-align:left; vertical-align:top">$3,465, plus 25% of the excess over $24,600.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $29,900 but not over $35,200</td> <td style="text-align:left; vertical-align:top">$4,790, plus 28% of the excess over $29,900.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $35,200 but not over $45,800</td> <td style="text-align:left; vertical-align:top">$6,274, plus 33% of the excess over $35,200.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $45,800 but not over $60,000</td> <td style="text-align:left; vertical-align:top">$9,772, plus 38% of the excess over $45,800.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $60,000 but not over $85,600</td> <td style="text-align:left; vertical-align:top">$15,168, plus 42% of the excess over $60,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $85,600 but not over $109,400</td> <td style="text-align:left; vertical-align:top">$25,920, plus 45% of the excess over $85,600.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $109,400 but not over $162,400</td> <td style="text-align:left; vertical-align:top">$36,630, plus 49% of the excess over $109,400.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $162,400</td> <td style="text-align:left; vertical-align:top">$62,600, plus 50% of the excess over $162,400.</td> </tr> </tbody> </table> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Heads of Households</inline>.—</heading><chapeau>There is hereby imposed on the taxable income of every individual who is the head of a household (as defined in section 2(b)) a tax determined in accordance with the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2">26 USC 2</ref>.</p></sidenote> following tables:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">For taxable years beginning in 1982</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If taxable income is:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The tax is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Not over $2,300</td> <td style="text-align:left; vertical-align:top">No tax.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $2,300 but not over $4,400</td> <td style="text-align:left; vertical-align:top">12% of the excess over $2,300.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $4,400 but not over $6,500</td> <td style="text-align:left; vertical-align:top">$252, plus 14% of the excess over $4,400.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $6,500 but not over $8,700</td> <td style="text-align:left; vertical-align:top">$546, plus 16% of the excess over $6,500.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $8,700 but not over $11,800</td> <td style="text-align:left; vertical-align:top">$898, plus 20% of the excess over $8,700.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $11,800 but not over $15,000</td> <td style="text-align:left; vertical-align:top">$1,518, plus 22% of the excess over $11,800.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $15,000 but not over $18,200</td> <td style="text-align:left; vertical-align:top">$2,222, plus 23% of the excess over $15,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $18,200 but not over $23,500</td> <td style="text-align:left; vertical-align:top">$2,958, plus 28% of the excess over $18,200.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $23,500 but not over $28,800</td> <td style="text-align:left; vertical-align:top">$4,442, plus 32% of the excess over $23,500.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $28,800 but not over $34,100</td> <td style="text-align:left; vertical-align:top">$6,138, plus 38% of the excess over $28,800.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $34,100 but not over $44,700</td> <td style="text-align:left; vertical-align:top">$8,152, plus 41% of the excess over $34,100.</td> </tr> </tbody> </table> <page identifier="/us/stat/95/178">95 STAT. 178</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If taxable income is:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The tax is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $44,700 but not over $60,600</td> <td style="text-align:left; vertical-align:top">$12,498, plus 49% of the excess over $44,700.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $60,600</td> <td style="text-align:left; vertical-align:top">$20,289, plus 50% of the excess over $60,600.</td> </tr> </tbody> </table> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">For taxable years beginning in 1983</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If taxable income is:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The tax is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Not over $2,300</td> <td style="text-align:left; vertical-align:top">No tax.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $2,300 but not over $4,400</td> <td style="text-align:left; vertical-align:top">11% of the excess over $2,300.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $4,400 but not over $6,500</td> <td style="text-align:left; vertical-align:top">$231, plus 13% of the excess over $4,400.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $6,500 but not over $8,700</td> <td style="text-align:left; vertical-align:top">$504, plus 15% of the excess over $6,500.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $8,700 but not over $11,800</td> <td style="text-align:left; vertical-align:top">$834, plus 18% of the excess over $8,700.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $11,800 but not over $15,000</td> <td style="text-align:left; vertical-align:top">$1,392, plus 19% of the excess over $11,800.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $15,000 but not over $18,200</td> <td style="text-align:left; vertical-align:top">$2,000, plus 21% of the excess over $15,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $18,200 but not over $23,500</td> <td style="text-align:left; vertical-align:top">$2,672, plus 25% of the excess over $18,200.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $23,500 but not over $28,800</td> <td style="text-align:left; vertical-align:top">$3,997, plus 29% of the excess over $23,500.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $28,800 but not over $34,100</td> <td style="text-align:left; vertical-align:top">$5,534, plus 34% of the excess over $28,800.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $34,100 but not over $44,700</td> <td style="text-align:left; vertical-align:top">$7,336, plus 37% of the excess over $34,100.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $44,700 but not over $60,600</td> <td style="text-align:left; vertical-align:top">$11,258, plus 44% of the excess over $44,700.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $60,600 but not over $81,800</td> <td style="text-align:left; vertical-align:top">$18,254, plus 48% of the excess over $60,600.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $81,800</td> <td style="text-align:left; vertical-align:top">$28,430, plus 50% of the excess over $81,800.</td> </tr> </tbody> </table> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">For taxable years beginning after 1983</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If taxable income is:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The tax is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Not over $2,300</td> <td style="text-align:left; vertical-align:top">No tax.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $2,300 but not over $4,400</td> <td style="text-align:left; vertical-align:top">11% of the excess over $2,300.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $4,400 but not over $6,500</td> <td style="text-align:left; vertical-align:top">$231, plus 12% of the excess over $4,400.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $6,500 but not over $8,700</td> <td style="text-align:left; vertical-align:top">$483, plus 14% of the excess over $6,500.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $8,700 but not over $11,800</td> <td style="text-align:left; vertical-align:top">$791, plus 17% of the excess over $8,700.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $11,800 but not over $15,000</td> <td style="text-align:left; vertical-align:top">$1,318, plus 18% of the excess over $11,800.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $15,000 but not over $18,200</td> <td style="text-align:left; vertical-align:top">$1,894, plus 20% of the excess over $15,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $18,200 but not over $23,500</td> <td style="text-align:left; vertical-align:top">$2,534, plus 24% of the excess over $18,200.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $23,500 but not over $28,800</td> <td style="text-align:left; vertical-align:top">$3,806, plus 28% of the excess over $23,500.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $28,800 but not over $34,100</td> <td style="text-align:left; vertical-align:top">$5,290, plus 32% of the excess over $28,800.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $34,100 but not over $44,700</td> <td style="text-align:left; vertical-align:top">$6,986, plus 35% of the excess over $34,100.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $44,700 but not over $60,600</td> <td style="text-align:left; vertical-align:top">$10,696, plus 42% of the excess over $44,700.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $60,600 but not over $81,800</td> <td style="text-align:left; vertical-align:top">$17,374, plus 45% of the excess over $60,600.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $81,800 but not over $108,300</td> <td style="text-align:left; vertical-align:top">$26,914, plus 48% of the excess over $81,800.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $108,300</td> <td style="text-align:left; vertical-align:top">$39,634, plus 50% of the excess over $108,300.</td> </tr> </tbody> </table> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Unmarried Individuals (Other Than Surviving Spouses and Heads or Households)</inline>.—</heading><chapeau>There is hereby imposed on the taxable income of every individual (other than a surviving spouse as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2">26 USC 2</ref>.</p></sidenote> defined in section 2(a) or the head of a household as defined in section 2(b)) who is not a married individual (as defined in section 143) a tax determined in accordance with the following tables:</chapeau> <page identifier="/us/stat/95/179">95 STAT. 179</page> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">For taxable years beginning in 1982</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If taxable income is:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The tax is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Not over $2,300</td> <td style="text-align:left; vertical-align:top">No tax.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $2,300 but not over $3,400</td> <td style="text-align:left; vertical-align:top">12% of the excess over $2,300.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $3,400 but not over $4,400</td> <td style="text-align:left; vertical-align:top">$132, plus 14% of the excess over $3,400.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $4,400 but not over $6,500</td> <td style="text-align:left; vertical-align:top">$272, plus 16% of the excess over $4,400.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $6,500 but not over $8,500</td> <td style="text-align:left; vertical-align:top">$608, plus 17% of the excess over $6,500.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $8,500 but not over $10,800</td> <td style="text-align:left; vertical-align:top">$948, plus 19% of the excess over $8,500.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $10,800 but not over $12,900</td> <td style="text-align:left; vertical-align:top">$1,385, plus 22% of the excess over $10,800.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $12,900 but not over $15,000</td> <td style="text-align:left; vertical-align:top">$1,847, plus 23% of the excess over $12,900.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $15,000 but not over $18,200</td> <td style="text-align:left; vertical-align:top">$2,330, plus 27% of the excess over $15,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $18,200 but not over $23,500</td> <td style="text-align:left; vertical-align:top">$3,194, plus 31% of the excess over $18,200.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $23,500 but not over $28,800</td> <td style="text-align:left; vertical-align:top">$4,837, plus 35% of the excess over $23,500.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $28,800 but not over $34,100</td> <td style="text-align:left; vertical-align:top">$6,692, plus 40% of the excess over $28,800.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $34,100 but not over $41,500</td> <td style="text-align:left; vertical-align:top">$8,812, plus 44% of the excess over $34,100.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $41,500</td> <td style="text-align:left; vertical-align:top">$12,068, plus 50% of the excess over $41,500.</td> </tr> </tbody> </table> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">For taxable years beginning in 1983</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If taxable income is:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The tax is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Not over $2,300</td> <td style="text-align:left; vertical-align:top">No tax.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $2,300 but not over $3,400</td> <td style="text-align:left; vertical-align:top">11% of the excess over $2,300.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $3,400 but not over $4,400</td> <td style="text-align:left; vertical-align:top">$121, plus 13% of the excess over $3,400.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $4,400 but not over $8,500</td> <td style="text-align:left; vertical-align:top">$251, plus 15% of the excess over $4,400.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $8,500 but not over $10,800</td> <td style="text-align:left; vertical-align:top">$866, plus 17% of the excess over $8,500.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $10,800 but not over $12,900</td> <td style="text-align:left; vertical-align:top">$1,257, plus 19% of the excess over $10,800.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $12,900 but not over $15,000</td> <td style="text-align:left; vertical-align:top">$1,656, plus 21% of the excess over $12,900.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $15,000 but not over $18,200</td> <td style="text-align:left; vertical-align:top">$2,097, plus 24% of the excess over $15,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $18,200 but not over $23,500</td> <td style="text-align:left; vertical-align:top">$2,865, plus 28% of the excess over $18,200.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $23,500 but not over $28,800</td> <td style="text-align:left; vertical-align:top">$4,349, plus 32% of the excess over $23,500.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $28,800 but not over $34,100</td> <td style="text-align:left; vertical-align:top">$6,045, plus 36% of the excess over $28,800.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $34,100 but not over $41,500</td> <td style="text-align:left; vertical-align:top">$7,953, plus 40% of the excess over $34,100.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $41,500 but not over $55,300</td> <td style="text-align:left; vertical-align:top">$10,913, plus 45% of the excess over $41,500.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $55,300</td> <td style="text-align:left; vertical-align:top">$17,123, plus 50% of the excess over $55,300.</td> </tr> </tbody> </table> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">For taxable years beginning after 1983</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If taxable income is:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The tax is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Not over $2,300</td> <td style="text-align:left; vertical-align:top">No tax.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $2,300 but not over $3,400</td> <td style="text-align:left; vertical-align:top">11% of the excess over $2,300.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $3,400 but not over $4,400</td> <td style="text-align:left; vertical-align:top">$121, plus 12% of the excess over $3,400.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $4,400 but not over $6,500</td> <td style="text-align:left; vertical-align:top">$241, plus 14% of the excess over $4,400.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $6,500 but not over $8,500</td> <td style="text-align:left; vertical-align:top">$535, plus 15% of the excess over $6,500.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $8,500 but not over $10,800</td> <td style="text-align:left; vertical-align:top">$835, plus 16% of the excess over $8,500.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $10,800 but not over $12,900</td> <td style="text-align:left; vertical-align:top">$1,203, plus 18% of the excess over $10,800.</td> </tr> </tbody> </table> <page identifier="/us/stat/95/180">95 STAT. 180</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If taxable income is:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The tax is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $12,900 but not over $15,000</td> <td style="text-align:left; vertical-align:top">$1,581, plus 20% of the excess over $12,900.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $15,000 but not over $18,200</td> <td style="text-align:left; vertical-align:top">$2,001, plus 23% of the excess over $15,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $18,200 but not over $23,500</td> <td style="text-align:left; vertical-align:top">$2,737, plus 26% of the excess over $18,200.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $23,500 but not over $28,800</td> <td style="text-align:left; vertical-align:top">$4,115, plus 30% of the excess over $23,500.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $28,800 but not over $34,100</td> <td style="text-align:left; vertical-align:top">$5,705, plus 34% of the excess over $28,800.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $34,100 but not over $41,500</td> <td style="text-align:left; vertical-align:top">$7,507, plus 38% of the excess over $34,100.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $41,500 but not over $55,300</td> <td style="text-align:left; vertical-align:top">$10,319, plus 42% of the excess over $41,500.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $55,300 but not over $81,800</td> <td style="text-align:left; vertical-align:top">$16,115, plus 48% of the excess over $55,300.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $81,800</td> <td style="text-align:left; vertical-align:top">$28,835, plus 50% of the excess over $81,800.</td> </tr> </tbody> </table> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Married Individuals Filing Separate Returns</inline>.—</heading><chapeau>There is hereby imposed on the taxable income of every married individual (as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s143">26 USC 143</ref>.</p></sidenote> defined in section 143) who does not make a single return jointly with his spouse under section 6013 a tax determined in accordance with the following tables:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">For taxable years beginning in 1982</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If taxable income is:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The tax is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Not over $1,700</td> <td style="text-align:left; vertical-align:top">No tax.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $1,700 but not over $2,750</td> <td style="text-align:left; vertical-align:top">12% of the excess over $1,700.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $2,750 but not over $3,800</td> <td style="text-align:left; vertical-align:top">$126, plus 14% of the excess over $2,750.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $3,800 but not over $5,950</td> <td style="text-align:left; vertical-align:top">$273, plus 16% of the excess over $3,800.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $5,950 but not over $8,000</td> <td style="text-align:left; vertical-align:top">$617, plus 19% of the excess over $5,950.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $8,000 but not over $10,100</td> <td style="text-align:left; vertical-align:top">$1,006, plus 22% of the excess over $8,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $10,100 but not over $12,300</td> <td style="text-align:left; vertical-align:top">$1,468, plus 25% of the excess over $10,100.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $12,300 but not over $14,950</td> <td style="text-align:left; vertical-align:top">$2,018, plus 29% of the excess over $12,300.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $14,950 but not over $17,600</td> <td style="text-align:left; vertical-align:top">$2,787, plus 33% of the excess over $14,950.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $17,600 but not over $22,900</td> <td style="text-align:left; vertical-align:top">$3,661, plus 39% of the excess over $17,600.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $22,900 but not over $30,000</td> <td style="text-align:left; vertical-align:top">$5,728, plus 44% of the excess over $22,900.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $30,000 but not over $42,800</td> <td style="text-align:left; vertical-align:top">$8,852, plus 49% of the excess over $30,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $42,800</td> <td style="text-align:left; vertical-align:top">$15,124, plus 50% of the excess over $42,800.</td> </tr> </tbody> </table> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">For taxable years beginning in 1983</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If taxable income is:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The tax is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Not over $1,700</td> <td style="text-align:left; vertical-align:top">No tax.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $1,700 but not over $2,750</td> <td style="text-align:left; vertical-align:top">11% of the excess over $1,700.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $2,750 but not over $3,800</td> <td style="text-align:left; vertical-align:top">$115, plus 13% of the excess over $2,750.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $3,800 but not over $5,950</td> <td style="text-align:left; vertical-align:top">$252, plus 15% of the excess over $3,800.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $5,950 but not over $8,000</td> <td style="text-align:left; vertical-align:top">$574, plus 17% of the excess over $5,950.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $8,000 but not over $10,100</td> <td style="text-align:left; vertical-align:top">$923, plus 19% of the excess over $8,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $10,100 but not over $12,300</td> <td style="text-align:left; vertical-align:top">$1,322, plus 23% of the excess over $10,100.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $12,300 but not over $14,950</td> <td style="text-align:left; vertical-align:top">$1,828, plus 26% of the excess over $12,300.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $14,950 but not over $17,600</td> <td style="text-align:left; vertical-align:top">$2,517, plus 30% of the excess over $14,950.</td> </tr> </tbody> </table> <page identifier="/us/stat/95/181">95 STAT. 181</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If taxable income is:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The tax is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $17,600 but not over $22,900</td> <td style="text-align:left; vertical-align:top">$3,312, plus 85% of the excess over $17,600.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $22,900 but not over $30,000</td> <td style="text-align:left; vertical-align:top">$5,167, plus 40% of the excess over $22,900.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $30,000 but not over $42,800</td> <td style="text-align:left; vertical-align:top">$8,007, plus 44% of the excess over $30,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $42,800 but not over $54,700</td> <td style="text-align:left; vertical-align:top">$13,639, plus 48% of the excess over $42,800.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $54,700</td> <td style="text-align:left; vertical-align:top">$19,351, plus 50% of the excess over $54,700.</td> </tr> </tbody> </table> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">For taxable years beginning after 1983</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If taxable income is:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The tax is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Not over $1,700</td> <td style="text-align:left; vertical-align:top">No tax.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $1,700 but not over $2,750</td> <td style="text-align:left; vertical-align:top">11% of the excess over $1,700.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $2,750 but not over $3,800</td> <td style="text-align:left; vertical-align:top">$115, plus 12% of the excess over $2,750.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $3,800 but not over $5,950</td> <td style="text-align:left; vertical-align:top">$241, plus 14% of the excess over $3,800.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $5,950 but not over $8,000</td> <td style="text-align:left; vertical-align:top">$542, plus 16% of the excess over $5,950.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $8,000 but not over $10,100</td> <td style="text-align:left; vertical-align:top">$870, plus 18% of the excess over $8,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $10,100 but not over $12,300</td> <td style="text-align:left; vertical-align:top">$1,248, plus 22% of the excess over $10,100.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $12,300 but not over $14,950</td> <td style="text-align:left; vertical-align:top">$1,732, plus 25% of the excess over $12,300.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $14,950 but not over $17,600</td> <td style="text-align:left; vertical-align:top">$2,395, plus 28% of the excess over $14,950.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $17,600 but not over $22,900</td> <td style="text-align:left; vertical-align:top">$3,137, plus 33% of the excess over $17,600.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $22,900 but not over $30,000</td> <td style="text-align:left; vertical-align:top">$4,886, plus 38% of the excess over $22,900.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $30,000 but not over $42,800</td> <td style="text-align:left; vertical-align:top">$7,584, plus 42% of the excess over $30,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $42,800 but not over $54,700</td> <td style="text-align:left; vertical-align:top">$12,960, plus 45% of the excess over $42,800.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $54,700 but not over $81,200</td> <td style="text-align:left; vertical-align:top">$18,315, plus 49% of the excess over $54,700.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $81,200</td> <td style="text-align:left; vertical-align:top">$31,300, plus 50% of the excess over $81,200.</td> </tr> </tbody> </table> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <heading><inline class="smallCaps">Estates and Trusts</inline>.—</heading><chapeau>There is hereby imposed on the taxable income of every estate and trust taxable under this subsection a tax determined in accordance with the following tables:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">For taxable years beginning in 1982</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If taxable income is:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The tax is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Not over $1,050</td> <td style="text-align:left; vertical-align:top">12% of taxable income.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $1,050 but not over $2,100</td> <td style="text-align:left; vertical-align:top">$126, plus 14% of the excess over $1,050.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $2,100 but not over $4,250</td> <td style="text-align:left; vertical-align:top">$273, plus 16% of the excess over $2,100.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $4,250 but not over $6,300</td> <td style="text-align:left; vertical-align:top">$617, plus 19% of the excess over $4,250.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $6,300 but not over $8,400</td> <td style="text-align:left; vertical-align:top">$1,006, plus 22% of the excess over $6,300.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $8,400 but not over $10,600</td> <td style="text-align:left; vertical-align:top">$1,468, plus 25% of the excess over $8,400.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $10,600 but not over $13,250</td> <td style="text-align:left; vertical-align:top">$2,018, plus 29% of the excess over $10,600.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $13,250 but not over $15,900</td> <td style="text-align:left; vertical-align:top">$2,787, plus 33% of the excess over $13,250.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $15,900 but not over $21,200</td> <td style="text-align:left; vertical-align:top">$3,661, plus 39% of the excess over $15,900.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $21,200 but not over $28,300</td> <td style="text-align:left; vertical-align:top">$5,728, plus 44% of the excess over $21,200.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $28,300 but not over $41,100</td> <td style="text-align:left; vertical-align:top">$8,852, plus 49% of the excess over $28,300.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $41,100</td> <td style="text-align:left; vertical-align:top">$15,124, plus 50% of the excess over $41,100.</td> </tr> </tbody> </table> </content></paragraph> <page identifier="/us/stat/95/182">95 STAT. 182</page> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">For taxable years beginning in 1983</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If taxable income is:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The tax is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Not over $1,050</td> <td style="text-align:left; vertical-align:top">11% of taxable income.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $1,050 but not over $2,100</td> <td style="text-align:left; vertical-align:top">$115, plus 13% of the excess over $1,050.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $2,100 but not over $4,250</td> <td style="text-align:left; vertical-align:top">$252, plus 15% of the excess over $2,100.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $4,250 but not over $6,300</td> <td style="text-align:left; vertical-align:top">$574, plus 17% of the excess over $4,250.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $6,300 but not over $8,400</td> <td style="text-align:left; vertical-align:top">$923, plus 19% of the excess over $6,300.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $8,400 but not over $10,600</td> <td style="text-align:left; vertical-align:top">$1,322, plus 23% of the excess over $8,400.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $10,600 but not over $13,250</td> <td style="text-align:left; vertical-align:top">$1,828, plus 26% of the excess over $10,600.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $13,250 but not over $15,900</td> <td style="text-align:left; vertical-align:top">$2,517, plus 30% of the excess over $13,250.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $15,900 but not over $21,200</td> <td style="text-align:left; vertical-align:top">$3,312, plus 35% of the excess over $15,900.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $21,200 but not over $28,300</td> <td style="text-align:left; vertical-align:top">$5,167, plus 40% of the excess over $21,200.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $28,300 but not over $41,100</td> <td style="text-align:left; vertical-align:top">$8,007, plus 44% of the excess over $28,300.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $41,100 but not over $53,000</td> <td style="text-align:left; vertical-align:top">$13,639, plus 48% of the excess over $41,100.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $53,000</td> <td style="text-align:left; vertical-align:top">$19,351, plus 50% of the excess over $53,000.</td> </tr> </tbody> </table> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">For taxable years beginning after 1983</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If taxable income is:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The tax is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Not over $1,050</td> <td style="text-align:left; vertical-align:top">11% of taxable income.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $1,050 but not over $2,100</td> <td style="text-align:left; vertical-align:top">$115, plus 12% of the excess over $1,050.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $2,100 but not over $4,250</td> <td style="text-align:left; vertical-align:top">$241, plus 14% of the excess over $2,100.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $4,250 but not over $6,300</td> <td style="text-align:left; vertical-align:top">$542, plus 16% of the excess over $4,250.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $6,300 but not over $8,400</td> <td style="text-align:left; vertical-align:top">$870, plus 18% of the excess over $6,300.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $8,400 but not over $10,600</td> <td style="text-align:left; vertical-align:top">$1,248, plus 22% of the excess over $8,400.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $10,600 but not over $13,250</td> <td style="text-align:left; vertical-align:top">$1,732, plus 25% of the excess over $10,600.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $13,250 but not over $15,900</td> <td style="text-align:left; vertical-align:top">$2,395, plus 28% of the excess over $13,250.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $15,900 but not over $21,200</td> <td style="text-align:left; vertical-align:top">$3,137, plus 33% of the excess over $15,900.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $21,200 but not over $28,300</td> <td style="text-align:left; vertical-align:top">$4,886, plus 38% of the excess over $21,200.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $28,300 but not over $41,100</td> <td style="text-align:left; vertical-align:top">$7,584, plus 42% of the excess over $28,300.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $41,100 but not over $53,000</td> <td style="text-align:left; vertical-align:top">$12,960, plus 45% of the excess over $41,100.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $53,000 but not over $79,500</td> <td style="text-align:left; vertical-align:top">$18,315, plus 49% of the excess over $53,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $79,500</td> <td style="text-align:left; vertical-align:top">$31,300, plus 50% of the excess over $79,500.”</td> </tr> </tbody> </table> </content></paragraph> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Credit To Reflect Equivalent 1981 Rate Reduction</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6428">26 USC 6428</ref>.</p></sidenote><inline class="smallCaps">In general</inline>.—</heading><content>Section 6428 (relating to refund of 1974 individual income taxes) is amended to read as follows: <quotedContent> <section><num value="6428">“SEC. 6428. </num> <heading>1981 RATE REDUCTION TAX CREDIT.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Allowance of Credit</inline>.—</heading><chapeau>There shall be allowed as a credit against the tax imposed by section 1, or against a tax imposed in lieu of the tax imposed by section 1, for any taxable year beginning in 1981, an amount equal to the product of—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>1.25 percent, multiplied by</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the amount of tax imposed by section 1 (or in lieu thereof) for such taxable year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Special Rules for Application of This Section</inline>.—</heading> <page identifier="/us/stat/95/183">95 STAT. 183</page> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Application with other credits</inline>.—</heading><content>In determining any credit allowed under subpart A of part IV of subchapter A of chapter 1 (other than under sections 31, 39, and 43), the tax imposed by chapter 1 shall (before any other reductions) be reduced by the credit allowed under subsection (a).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Credit treated as subpart a credit</inline>.—</heading><content>For purposes of this title, the credit allowed under subsection (a) shall be treated as a credit allowed under subpart A of part IV of subchapter A of chapter 1.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Tables To Reflect Credit</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Section 3 tables</inline>.—</heading><content>The tables prescribed by the Secretary under section 3 shall reflect the credit allowed under subsection (a).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Other tables</inline>.—</heading><chapeau>In order to reflect the amount of the credit under subsection (a) for different levels of tax or taxable income, the Secretary may—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>modify the tables under section 1, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>prescribe such other tables as he determines necessary.”</content></subparagraph> </paragraph> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>The table of sections for subchapter B of chapter 65 is amended by striking out the item relating to section 6428 and inserting in lieu thereof the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 6428.</designator> <label>1981 rate reduction tax credit.”</label></referenceItem> </toc> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Paragraph (1) of section 3(a) (relating to imposition of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3">26 USC 3</ref>.</p></sidenote> tax table tax) is amended by inserting “<quotedText>and which shall be in such form as he determines appropriate</quotedText>” after “<quotedText>Secretary</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>Subsection (a) of section 3 (relating to tax tables for individuals) is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Section may be applied on the basis of taxable income</inline>.—</heading><content>The Secretary may provide that this section shall be applied for any taxable year on the basis of taxable income in lieu of tax table income.”</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Repeal of Maximum Tax on Personal Service Income</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Part VI of subchapter Q of chapter 1 (relating <sidenote><p class="indent0 firstIndent0 fontsize8">Repeal.</p> <p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1348">26 USC 1348</ref>.</p></sidenote> to maximum rate on personal service income) is repealed.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>Paragraph (1) of section 3(b) (relating to tax tables for individuals) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>an individual to whom section 1301 (relating to income averaging) applies for the taxable year,”.</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><chapeau>Subsection (b) of section 1304 (relating to special rules <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1304">26 USC 1304</ref>.</p></sidenote> for income averaging) is amended—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by inserting “<quotedText>and</quotedText>” at the end of paragraph (1),</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by striking out “<quotedText>, and</quotedText>” at the end of paragraph (2) and inserting in lieu thereof a period, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>by striking out paragraph (3).</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>The table of parts for subchapter Q of chapter 1 is amended by striking out the item relating to part VI.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Alternative minimum tax</inline>.—</heading><chapeau>Paragraph (1) of section 55(a) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s55">26 USC 55</ref>.</p></sidenote> (relating to alternative minimum tax) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out all that follows “<quotedText>$60,000</quotedText>” in subparagraph (B) and inserting in lieu thereof “<quotedText>, exceeds</quotedText>”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out subparagraph (C).</content></subparagraph> </paragraph> <page identifier="/us/stat/95/184">95 STAT. 184</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s541">26 USC 541</ref>.</p></sidenote><inline class="smallCaps">Personal holding company tax</inline>.—</heading><content>Section 541 (relating to personal holding company tax) is amended by striking out “<quotedText>70 percent</quotedText>” and inserting in lieu thereof “<quotedText>50 percent</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s21">26 USC 21</ref>.</p></sidenote><inline class="smallCaps">Amendment to section 21</inline>.—</heading><content>Section 21 (relating to effect of changes in rates during taxable year) is amended by striking out subsections (d), (e), and (f) and inserting in lieu thereof the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Section Not To Apply to Section 1 Rate Changes Made by Economic Recovery Tax Act of 1981</inline>.—</heading><content>This section shall not apply to any change in rates under section 1 attributable to the amendments made by section 101 of the Economic Recovery Tax Act of <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 176.</p></sidenote> 1981 or subsection (f) of section 1 (relating to adjustments in tax tables so that inflation will not result in tax increases).”</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <heading><inline class="smallCaps">Withholding Tables</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3402">26 USC 3402</ref>.</p></sidenote><inline class="smallCaps">Determination of withholding</inline>.—</heading><content>Section 3402(a) (relating to requirement of withholding income tax at source) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Requirement of Withholding</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Except as otherwise provided in this section, every employer making payment of wages shall deduct and withhold upon such wages a tax determined in accordance with tables or computational procedures prescribed by the Secretary. Any tables or procedures prescribed under this paragraph shall—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>apply with respect to the amount of wages paid during such periods as the Secretary may prescribe, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>be in such form, and provide for such amounts to be deducted and withheld, as the Secretary determines to be most appropriate to carry out the purposes of this chapter and to reflect the provisions of chapter 1 applicable to such periods.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Amount of wages</inline>.—</heading><content>For purposes of applying tables or procedures prescribed under paragraph (1), the term ‘the amount of wages’ means the amount by which the wages exceed the number of withholding exemptions claimed multiplied by the amount of one such exemption. The amount of each withholding exemption shall be equal to the amount of one personal exemption provided in section 151(b), prorated to the payroll period. The maximum number of withholding exemptions permitted shall be calculated in accordance with regulations prescribed by the Secretary under this section, taking into account any reduction in withholding to which an employee is entitled under this section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Changes made by section 101 of the economic recovery tax act of 1981</inline>.—</heading><chapeau>Notwithstanding the provisions of this subsection, the Secretary shall modify the tables and procedures under paragraph (1) to reflect—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the amendments made by section 101(b) of the Economic Recovery Tax Act of 1981, and such modification shall take effect on October 1, 1981, as if such amendments made a 5-percent reduction effective on such date, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>the amendments made by section 101(a) of such Act, and such modifications shall take effect—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>on July 1, 1982, as if the reductions in the rate of tax under section 1 (as amended by such section) were attributable to a 10-percent reduction effective on such date, and</content> </clause> <page identifier="/us/stat/95/185">95 STAT. 185</page> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>on July 1, 1983, as if such reductions were attributable to a 10-percent reduction effective on such date.”</content> </clause> </subparagraph> </paragraph> </subsection> </quotedContent> </content> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Wages paid for period less than 1 week</inline>.—</heading><chapeau>Section 3402(b) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3402">26 USC 3402</ref>.</p></sidenote> (relating to the percentage method of withholding) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out paragraph (1), and redesignating paragraphs (2) through (5) as paragraphs (1) through (4), respectively; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out paragraph (3), as redesignated by subparagraph (A), and inserting in lieu thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>In any case in which the period, or the time described in paragraph (2), in respect of any wages is less than one week, the Secretary, under regulations prescribed by him, may authorize an employer to compute the tax to be deducted and withheld as if the aggregate of the wages paid to the employee during the calendar week were paid for a weekly payroll period.”</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">Zero bracket amount</inline>.—</heading><content>Paragraph (1)(G) of section 3402(f) (relating to withholding exemptions) is amended by inserting “<quotedText>(or more than one exemption if so prescribed by the Secretary)</quotedText>” after “<quotedText>one exemption</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <heading><inline class="smallCaps">Changes in withholding</inline>.—</heading><content>Section 3402(i) (relating to additional withholding) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">Changes in withholding</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary may by regulations provide for increases or decreases in the amount of withholding otherwise required under this section in cases where the employee requests such changes.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Treatment as tax</inline>.—</heading><content>Any increased withholding under paragraph (1) shall for all purposes be considered tax required to be deducted and withheld under this chapter.”</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num> <heading><inline class="smallCaps">Withholding allowances</inline>.—</heading><content>Subsection (m) of section 3402 (relating to withholding allowances based on itemized deductions) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="m">“(m) </num> <heading><inline class="smallCaps">Withholding Allowances</inline>.—</heading><chapeau>Under regulations prescribed by the Secretary, an employee shall be entitled to additional withholding allowances or additional reductions in withholding under this subsection. In determining the number of additional withholding allowances or the amount of additional reductions in withholding under this subsection, the employee may take into account (to the extent and in the manner provided by such regulations)—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>estimated itemized deductions allowable under chapter 1 (other than the deductions referred to in section 151 and other than the deductions required to be taken into account in determining adjusted gross income under section 62) (other than paragraph (13) thereof),</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>estimated tax credits allowable under chapter 1, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>such additional deductions and other items as may be specified by the Secretary in regulations.”</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>The amendments made by subsections (a), (c), <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1">26 USC 1 note</ref>.</p></sidenote> and (d) shall apply to taxable years beginning after December 31, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Withholding Amendments</inline>.—</heading><content>The amendments made by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3402">26 USC 3402 note</ref>.</p></sidenote> subsection (e) shall apply to remuneration paid after September 30, 1981; except that the amendment made by subsection (e)(5) shall apply to remuneration paid after December 31, 1981.</content></paragraph> </subsection> </section> <page identifier="/us/stat/95/186">95 STAT. 186</page> <section><num value="102">SEC. 102. </num> <heading>20-PERCENT MAXIMUM RATE ON NET CAPITAL GAIN FOR PORTION OF 1981.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1201">26 USC 1201 note</ref>.</p></sidenote><inline class="smallCaps">In General</inline>.—</heading><chapeau>If for any taxable year ending after June 9, 1981, and beginning before January 1, 1982, a taxpayer other than a corporation has qualified net capital gain, then the tax imposed <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1">26 USC 1</ref>.</p></sidenote> under section 1 of the Internal Revenue Code of 1954 for such taxable year shall be equal to the lesser of—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the tax imposed under such section determined without regard to this subsection, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>the sum of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><chapeau>the tax imposed under such section on the excess of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>the taxable income of the taxpayer, over</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>40 percent of the qualified net capital gain of the taxpayer, and</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>20 percent of the qualified net capital gain.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Application With Alternative Minimum Tax</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If subsection (a) applies to any taxpayer for any taxable year, then the amount determined under section 55(a)(1) of the Internal Revenue Code of 1954 for such taxable year shall be equal to the lesser of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the amount determined under such section 55(a)(1) determined without regard to this subsection, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><chapeau>the sum of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><chapeau>the amount which would be determined under such section 55(a)(1) if the alternative minimum taxable income was the excess of—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">(I) </num><content>the alternative minimum taxable income (within the meaning of section 55(b)(1) of such Code) of the taxpayer, over</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">(II) </num><content>the qualified net capital gain of the taxpayer, and</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>20 percent of the qualified net capital gain.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">No credits allowable</inline>.—</heading><content>For purposes of section 55(c) of such Code, no credit allowable under subpart A of part IV of subchapter A of chapter 1 of such Code (other than section 33(a) of such Code) shall be allowable against the amount described in paragraph (1)(B)(ii).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Qualified Net Capital Gain</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of this section, the term “qualified net capital gain” means the lesser of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the net capital gain for the taxable year, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>the net capital gain for the taxable year taking into account only gain or loss from sales or exchanges occurring after June 9, 1981.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Net capital gain</inline>.—</heading><content>For purposes of this subsection, the term “net capital gain” has the meaning given such term by section 1222(11) of the Internal Revenue Code of 1954.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Special Rule for Pass-Thru Entities</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In applying subsections (a), (b), and (c) with respect to any pass-thru entity, the determination of when a sale or exchange has occurred shall be made at the entity level.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Pass-thru entity defined</inline>.—</heading><chapeau>For purposes of paragraph (1), the term “pass-thru entity” means—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>a regulated investment company,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>a real estate investment trust,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>an electing small business corporation,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>a partnership,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>an estate or trust, and</content></subparagraph> <page identifier="/us/stat/95/187">95 STAT. 187</page> <subparagraph class="firstIndent1 fontsize10"><num value="F">(F) </num><content>a common trust fund.</content></subparagraph> </paragraph> </subsection> </section> <section><num value="103">SEC. 103. </num> <heading>DEDUCTION FOR TWO-EARNER MARRIED COUPLES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Part VII of subchapter B of chapter 1 (relating to additional itemized deductions for individuals) is amended by redesignating section 221 as section 222 and by inserting after section 220 the <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 201.</p></sidenote> following new section: <quotedContent> <section><num value="221">“SEC. 221. </num> <heading>DEDUCTION FOR TWO-EARNER MARRIED COUPLES. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s221">26 USC 221</ref>.</p></sidenote></heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Deduction Allowed</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a joint return under section 6013 for the taxable year, there shall be allowed as a deduction an amount equal to 10 percent of the lesser of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>$30,000, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the qualified earned income of the spouse with the lower qualified earned income for such taxable year.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Special rule for 1982</inline>.—</heading><content>In the case of a taxable year beginning during 1982, paragraph (1) shall be applied by substituting ‘5 percent’ for ‘10 percent’.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Qualified Earned Income Defined</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of this section, the term ‘qualified earned income’ means an amount equal to the excess of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the earned income of the spouse for the taxable year, over</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>an amount equal to the sum of the deductions described in paragraphs (1), (2), (7), (9), (10), and (15) of section 62 to the extent such deductions are properly allocable to or chargeable against earned income described in subparagraph (A).</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">The amount of qualified earned income shall be determined without regard to any community property laws.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Earned income</inline>.—</heading><chapeau>For purposes of paragraph (1), the term ‘earned income’ means income which is earned income within the meaning of section 911(d)(2) or 401(c)(2)(C), except that— <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 190.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><chapeau>such term shall not include any amount—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>not includible in gross income,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>received as a pension or annuity,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>paid or distributed out of an individual retirement plan (within the meaning of section 7701(a)(37)),</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>received as deferred compensation, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="v">“(v) </num><content>received for services performed by an individual in the employ of his spouse (within the meaning of section 3121(b)(3)(A)), and</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>section 911(d)(2)(B) shall be applied without regard to the phrase ‘not in excess of 30 percent of his share of net profits of such trade or business’.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Deduction Disallowed for Individual Claiming Benefits of Section 911 or 931</inline>.—</heading><content>No deduction shall be allowed under this section for any taxable year if either spouse claims the benefits of section 911 or 931 for such taxable year.”.</content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Deduction Allowed in Computing Adjusted Gross Income</inline>.—</heading><content>Section 62 (defining adjusted gross income), as amended by section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s62">26 USC 62</ref>.</p> <p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 194.</p></sidenote> 112(b)(2) of this Act, is amended by inserting after paragraph (15) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="16">“(16) </num> <heading><inline class="smallCaps">Deduction for two-earner married couples</inline>.—</heading><content>The deduction allowed by section 221.”</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Other Conforming Amendments</inline>.—</heading> <page identifier="/us/stat/95/188">95 STAT. 188</page> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s85">26 USC 85</ref>.</p></sidenote> <content class="inline">Subsection (a) of section 85 (relating to unemployment compensation) is amended by striking out “<quotedText>and without regard to section 105(d)</quotedText>” and inserting in lieu thereof “<quotedText>, section 105(d), and section 221</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s105">26 USC 105</ref>.</p></sidenote> <content>Subsection (d)(3) of section 105 (relating to amounts received under accident and health plans) is amended by inserting “<quotedText>and section 221</quotedText>” after “<quotedText>subsection</quotedText>” the first place it appears.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The table of sections for such part VII is amended by striking out the item relating to section 221 and inserting in lieu thereof the following new items: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 221.</designator> <label>Deduction for two-earner married couples.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 222.</designator> <label>Cross references.”</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s221">26 USC 221 note</ref>.</p></sidenote><inline class="smallCaps">Effective Dates</inline>.—</heading><content>The amendments made by this section shall apply to taxable years beginning after December 31, 1981.</content> </subsection> </section> <section><num value="104">SEC. 104. </num> <heading>ADJUSTMENT TO PREVENT INFLATION-CAUSED TAX INCREASE.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1">26 USC 1</ref>.</p></sidenote><inline class="smallCaps">Adjustments to Individual Income Tax Brackets</inline>.—</heading><content>Section 1 (relating to tax imposed) is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <heading><inline class="smallCaps">Adjustments in Tax Tables so That Inflation Will Not Result In Tax Increases</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Not later than December 15 of 1984 and each subsequent calendar year, the Secretary shall prescribe tables which shall apply in lieu of the tables contained in paragraph (3) of subsections (a), (b), (c), (d), and (e) with respect to taxable years beginning in the succeeding calendar year.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Method of prescribing tables</inline>.—</heading><chapeau>The table which under paragraph (1) is to apply in lieu of the table contained in paragraph (3) of subsection (a), (b), (c), (d), or (e), as the case may be, with respect to taxable years beginning in any calendar year shall be prescribed—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><chapeau>by increasing—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the maximum dollar amount on which no tax is imposed under such table, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>the minimum and maximum dollar amounts for each rate bracket for which a tax is imposed under such table,</content> </clause> </subparagraph> <continuation class="indent1 firstIndent0 fontsize10">by the cost-of-living adjustment for such calendar year,</continuation> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>by not changing the rate applicable to any rate bracket as adjusted under subparagraph (A)(ii), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>by adjusting the amounts setting forth the tax to the extent necessary to reflect the adjustments in the rate brackets.</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">If any increase determined under subparagraph (A) is not a multiple of $10, such increase shall be rounded to the nearest multiple of $10 (or if such increase is a multiple of $5, such increase shall be increased to the next highest multiple of $10).</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Cost-of-living adjustment</inline>.—</heading><chapeau>For purposes of paragraph (2), the cost-of-living adjustment for any calendar year is the percentage (if any) by which—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the CPI for the preceding calendar year, exceeds</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the CPI for the calendar year 1983.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">CPI for any calendar year</inline>.—</heading><content>For purposes of paragraph (3), the CPI for any calendar year is the average of the Consumer Price Index as of the close of the 12-month period ending on September 30 of such calendar year.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num> <heading><inline class="smallCaps">Consumer price index</inline>.—</heading><content>For purposes of paragraph (4), the term ‘Consumer Price Index’ means the last Consumer Price <page identifier="/us/stat/95/189">95 STAT. 189</page> Index for all-urban consumers published by the Department of Labor.”</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Definition of Zero Bracket Amount</inline>.—</heading><content>Subsection (d) of section 63 (defining zero bracket amount) is amended to read as follows: <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s63">26 USC 63</ref>.</p></sidenote> <quotedContent> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Zero Bracket Amount</inline>.—</heading><chapeau>For purposes of this subtitle, the term ‘zero bracket amount’ means—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>in the case of an individual to whom subsection (a), (b), (c), or (d) of section 1 applies, the maximum amount of taxable income on which no tax is imposed by the applicable subsection of section 1, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>zero in any other case.”</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Personal Exemptions</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">General rule</inline>.—</heading><content>Section 151 (relating to allowance of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s151">26 USC 151</ref>.</p></sidenote> deductions for personal exemptions) is amended by striking out “<quotedText>$1,000</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>the exemption amount</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Exemption amount</inline>.—</heading><content>Section 151 is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <heading><inline class="smallCaps">Exemption Amount</inline>.—</heading><content>For purposes of this section, the term ‘exemption amount’ means, with respect to any taxable year, $1,000 increased by an amount equal to $1,000 multiplied by the cost-of-living adjustment (as defined in section 1(f)(3)) for the calendar year in which the taxable year begins. If the amount determined under the preceding sentence is not a multiple of $10, such amount shall be rounded to the nearest multiple of $10 (or if such amount is a multiple of $5, such amount shall be increased to the next highest multiple of $10).”</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Return Requirements</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Amendments to section 6012</inline>.—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6012">26 USC 6012</ref>.</p></sidenote></heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>Clause (i) of section 6012(a)(1)(A) is amended by striking out “<quotedText>$3,300</quotedText>” and inserting in lieu thereof “<quotedText>the sum of the exemption amount plus the zero bracket amount applicable to such an individual</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Clause (ii) of section 6012(a)(1)(A) is amended by striking out “<quotedText>$4,400</quotedText>” and inserting in lieu thereof “<quotedText>the sum of the exemption amount plus the zero bracket amount applicable to such an individual</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>Clause (iii) of section 6012(a)(1)(A) is amended by striking out “<quotedText>$5,400</quotedText>” and inserting in lieu thereof “<quotedText>the sum of twice the exemption amount plus the zero bracket amount applicable to a joint return</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>Paragraph (1) of section 6012(a) is amended by striking out “<quotedText>$1,000</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>the exemption amount</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>Paragraph (1) of section 6012(a) is amended by adding at the end thereof the following new subparagraph: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><chapeau>For purposes of this paragraph—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>The term ‘zero bracket amount’ has the meaning <sidenote><p class="indent0 firstIndent0 fontsize8">“Zero bracket amount.”</p></sidenote> given to such term by section 63(d).</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>The term ‘exemption amount’ has the meaning <sidenote><p class="indent0 firstIndent0 fontsize8">“Exemption amount.”</p></sidenote> given to such term by section 151(f).”</content> </clause> </subparagraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Amendments to section 6013</inline>.—</heading><chapeau>Subparagraph (A) of section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6013">26 USC 6013</ref>.</p></sidenote> 6013(b)(3) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>$1,000</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>the exemption amount</quotedText>”,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>$2,000</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>twice the exemption amount</quotedText>”, and</content></subparagraph> <page identifier="/us/stat/95/190">95 STAT. 190</page> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by adding at the end thereof the following new sentence: <sidenote><p class="indent0 firstIndent0 fontsize8">“Exemption amount.”</p></sidenote> “<quotedText>For purposes of this subparagraph, the term ‘exemption amount’ has the meaning given to such term by section 151(f).</quotedText>”</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1">26 USC 1 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to taxable years beginning after December 31, 1984.</content> </subsection> </section> </subtitle> <subtitle><num value="B">Subtitle B—</num><heading>Income Earned Abroad</heading> <section><num value="111">SEC. 111. </num> <heading>PARTIAL EXCLUSION FOR EARNED INCOME FROM SOURCES WITHOUT THE UNITED STATES AND FOREIGN HOUSING COSTS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s911">26 USC 911</ref>.</p></sidenote><inline class="smallCaps">In General</inline>.—</heading><content>Section 911 (relating to income earned by individuals in certain camps) is amended to read as follows: <quotedContent> <section><num value="911">“SEC. 911. </num> <heading>CITIZENS OR RESIDENTS OF THE UNITED STATES LIVING ABROAD.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Exclusion From Gross Income</inline>.—</heading><chapeau>At the election of a qualified individual (made separately with respect to paragraphs (1) and (2)), there shall be excluded from the gross income of such individual, and exempt from taxation under this subtitle, for any taxable year—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the foreign earned income of such individual, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the housing cost amount of such individual.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Foreign Earned Income</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Definition</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘foreign earned income’ with respect to any individual means the amount received by such individual from sources within a foreign country or countries which constitute earned income attributable to services performed by such individual during the period described in subparagraph (A) or (B) of subsection (d)(1), whichever is applicable.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <heading><inline class="smallCaps">Certain amounts not included in foreign earned income</inline>.—</heading><chapeau>The foreign earned income for an individual shall not include amounts—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>received as a pension or annuity,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>paid by the United States or an agency thereof to an employee of the United States or an agency thereof,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>included in gross income by reason of section 402(b) (relating to taxability of beneficiary of nonexempt trust) or section 403(c) (relating to taxability of beneficiary under a nonqualified annuity), or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>received after the close of the taxable year following the taxable year in which the services to which the amounts are attributable are performed.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Limitation on foreign earned income</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The foreign earned income of an individual which may be excluded under subsection (a)(1) for any taxable year shall not exceed the amount of foreign earned income computed on a daily basis at the annual rate set forth in the following table for each day of the taxable year within the applicable period described in subparagraph (A) or (B) of subsection (d)(1): <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of taxable years beginning in:</b></td> <td style="text-align:right; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The annual rate is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1982</td> <td style="text-align:right; vertical-align:top">$75,000</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1983</td> <td style="text-align:right; vertical-align:top">80,000</td> </tr> </tbody> </table> <page identifier="/us/stat/95/191">95 STAT. 191</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of taxable years beginning in:</b></td> <td style="text-align:right; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The annual rate is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1984</td> <td style="text-align:right; vertical-align:top">$85,000</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1985</td> <td style="text-align:right; vertical-align:top">90,000</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1986 and thereafter</td> <td style="text-align:right; vertical-align:top">95,000.00</td> </tr> </tbody> </table> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Attribution to year in which services are performed</inline>.—</heading><content>For purposes of applying subparagraph (A), amounts received shall be considered received in the taxable year in which the services to which the amounts are attributable are performed.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Treatment of community income</inline>.—</heading><content>In applying subparagraph (A) with respect to amounts received from services performed by a husband or wife which are community income under community property laws applicable to such income, the aggregate amount which may be excludable from the gross income of such husband and wife under subsection (a)(1) for any taxable year shall equal the amount which would be so excludable if such amounts did not constitute community income.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Housing Cost Amount</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘housing cost amount’ means an amount equal to the excess of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the housing expenses of an individual for the taxable year, over</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>an amount equal to the product of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>16 percent of the salary (computed on a daily basis) of an employee of the United States who is compensated at a rate equal to the annual rate paid for step 1 of grade GS–14, multiplied by</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the number of days of such taxable year within the applicable period described in subparagraph (A) or (B) of subsection (d)(1).</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Housing expenses</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘housing expenses’ means the reasonable expenses paid or incurred during the taxable year by or on behalf of an individual for housing for the individual (and, if they reside with him, for his spouse and dependents) in a foreign country. The term—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>includes expenses attributable to the housing (such as utilities and insurance), but</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>does not include interest and taxes of the kind deductible under section 168 or 164 or any amount <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s163/164">26 USC 163, 164</ref>.</p></sidenote> allowable as a deduction under section 216(a).</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">Housing expenses shall not be treated as reasonable to the extent such expenses are lavish or extravagant under the circumstances.</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Second foreign household</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in clause (ii), only housing expenses incurred with respect to that abode which bears the closest relationship to the tax home of the individual shall be taken into account under paragraph (1).</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Separate household for spouse and dependents</inline>.—</heading><chapeau>If an individual maintains a separate abode outside the United States for his spouse and dependents and they do not reside with him because of living conditions which are dangerous, unhealthful, or otherwise adverse, then—</chapeau> <page identifier="/us/stat/95/192">95 STAT. 192</page> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>the words ‘if they reside with him’ in subparagraph (A) shall be disregarded, and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>the housing expenses incurred with respect to such abode shall be taken into account under paragraph (1).</content> </subclause> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Special rules where housing expenses not provided by employer</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>To the extent the housing cost amount of any individual for any taxable year is not attributable to employer provided amounts, such amount shall be treated as a deduction allowable in computing adjusted gross income to the extent of the limitation of subparagraph (B).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><chapeau>For purposes of subparagraph (A), the limitation of this subparagraph is the excess of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the foreign earned income of the individual for the taxable year, over</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the amount of such income excluded from gross income under subsection (a)(1) for the taxable year.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">1-year carryover of housing amounts not allowed by reason of subparagraph (b)</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amount not allowable as a deduction for any taxable year under subparagraph (A) by reason of the limitation of subparagraph (B) shall be treated as a deduction allowable in computing adjusted gross income for the succeeding taxable year (and only for the succeeding taxable year) to the extent of the limitation of clause (ii) for such succeeding taxable year.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><chapeau>For purposes of clause (i), the limitation of this clause for any taxable year is the excess of—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>the limitation of subparagraph (B) for such taxable year, over</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>amounts treated as a deduction under subparagraph (A) for such taxable year.</content> </subclause> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Employer provided amounts</inline>.—</heading><content>For purposes of this paragraph, the term ‘employer provided amounts’ means any amount paid or incurred on behalf of the individual by the individual’s employer which is foreign earned income included in the individual’s gross income for the taxable year (without regard to this section).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num> <heading><inline class="smallCaps">Foreign earned income</inline>.—</heading><content>For purposes of this paragraph, an individual’s foreign earned income for any taxable year shall be determined without regard to the limitation of subparagraph (A) of subsection (b)(2).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Definitions and Special Rules</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Qualified individual</inline>.—</heading><chapeau>The term ‘qualified individual’ means an individual whose tax home is in a foreign country and who is—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>a citizen of the United States and establishes to the satisfaction of the Secretary that he has been a bona fide resident of a foreign country or countries for an uninterrupted period which includes an entire taxable year, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>a citizen or resident of the United States and who, during any period of 12 consecutive months, is present in a foreign country or countries during at least 330 full days in such period.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Earned income</inline>.—</heading> <page identifier="/us/stat/95/193">95 STAT. 193</page> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘earned income’ means wages, salaries, or professional fees, and other amounts received as compensation for personal services actually rendered, but does not include that part of the compensation derived by the taxpayer for personal services rendered by him to a corporation which represents a distribution of earnings or profits rather than a reasonable allowance as compensation for the personal services actually rendered.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Taxpayer engaged in trade or business</inline>.—</heading><content>In the case of a taxpayer engaged in a trade or business in which both personal services and capital are material income-producing factors, under regulations prescribed by the Secretary, a reasonable allowance as compensation for the personal services rendered by the taxpayer, not in excess of 30 percent of his share of the net profits of such trade or business, shall be considered as earned income.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Tax home</inline>.—</heading><content>The term ‘tax home’ means, with respect to any individual, such individual’s home for purposes of section 162(a)(2) (relating to traveling expenses while away from home). <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s162">26 USC 162</ref>.</p></sidenote> An individual shall not be treated as having a tax home in a foreign country for any period for which his abode is within the United States.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Waiver of period of stay in foreign country</inline>.—</heading><chapeau>Notwithstanding paragraph (1), an individual who—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>is a bona fide resident of, or is present in, a foreign country for any period,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>leaves such foreign country after August 31, 1978—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>during any period during which the Secretary determines, after consultation with the Secretary of State or his delegate, that individuals were required to leave such foreign country because of war, civil unrest, or similar adverse conditions in such foreign country which precluded the normal conduct of business by such individuals, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>before meeting the requirements of such paragraph (1), and</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>establishes to the satisfaction of the Secretary that such individual could reasonably have been expected to have met such requirements but for the conditions referred to in clause (i) of subparagraph (B),</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">shall be treated as a qualified individual with respect to the period described in subparagraph (A) during which he was a bona fide resident of, or was present in, the foreign country, and in applying subsections (b)(2)(A) and (c)(1)(B)(ii) with respect to such individual, only the days within such period shall be taken into account.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Test of bona fide residence</inline>.—</heading><chapeau>If—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>an individual who has earned income from sources within a foreign country submits a statement to the authorities of that country that he is not a resident of that country, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>such individual is held not subject as a resident of that country to the income tax of that country by its authorities with respect to such earnings,</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">then such individual shall not be considered a bona fide resident of that country for purposes of paragraph (1)(A).</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num> <heading><inline class="smallCaps">Denial of double benefits</inline>.—</heading><content>No deduction or exclusion from gross income under this subtitle or credit against the tax <page identifier="/us/stat/95/194">95 STAT. 194</page> imposed by this chapter (including any credit or deduction for the amount of taxes paid or accrued to a foreign country or possession of the United States) shall be allowed to the extent such deduction, exclusion, or credit is properly allocable to or chargeable against amounts excluded from gross income under subsection (a).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><chapeau>The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including regulations providing rules—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>for cases where a husband and wife each have earned income from sources outside the United States, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>for married individuals filing separate returns.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <heading><inline class="smallCaps">Election</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>An election under subsection (a) shall apply to the taxable year for which made and to all subsequent taxable years unless revoked under paragraph (2).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Revocation</inline>.—</heading><content>A taxpayer may revoke an election made under paragraph (1) for any taxable year after the taxable year for which such election was made. Except with the consent of the Secretary, any taxpayer who makes such a revocation for any taxable year may not make another election under this section for any subsequent taxable year before the 6th taxable year after the taxable year for which such revocation was made.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <heading><inline class="smallCaps">Cross References</inline>.—</heading><content>“For administrative and penal provisions relating to the exclusions provided for in this section, see sections 6001, 6011, 6012(c), and the other provisions of subtitle F.”</content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>The table of sections for subpart B of part III of subchapter N of chapter 1 is amended by striking out the item relating to section 911 and inserting in lieu thereof the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 911.</designator> <label>Citizens or residents of the United States living abroad.”</label></referenceItem> </toc> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s43">26 USC 43</ref>.</p></sidenote> <content class="inline">Section 43(c)(1)(C)(i) is amended by striking out “<quotedText>relating to income earned by individuals in certain camps outside the United States</quotedText>” and inserting in lieu thereof “<quotedText>relating to citizens or residents of the United States living abroad</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1302/1304/1402/6012/6091">26 USC 1302, 1304, 1402, 6012, 6091</ref>.</p></sidenote> <content class="inline">Sections 1302(b)(2)(A)(i), 1304(b)(1), 1402(a)(8), 6012(c), and 6091(b)(1)(B)(iii) are each amended by striking out “<quotedText>relating to income earned by employees in certain camps</quotedText>” and inserting in lieu thereof “<quotedText>relating to citizens or residents of the United States living abroad</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s37/63/105/410/879/1303/1304">26 USC 37, 63, 105, 410, 879, 1303, 1304</ref>.</p></sidenote> <content class="inline">Sections 37(e)(9)(B), 63(e)(2), 105(h)(3)(B)(v), 410(b)(3)(C), 879(a)(1), 1303(c)(2), and 1304(c)(3) are each amended by striking out “<quotedText>section 911(b)</quotedText>” each place it appears and inserting in lieu <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 190.</p></sidenote> thereof “<quotedText>section 911(d)(2)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>Paragraph (11) of section 1402(a) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="11">“(11) </num><content>in the case of an individual described in section 911(d)(1)(B), the exclusion from gross income provided by section 911(a)(1) shall not apply; and”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> </section> <section><num value="112">SEC. 112. </num> <heading>REPEAL OF DEDUCTION FOR CERTAIN EXPENSES OF LIVING ABROAD.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s913">26 USC 913</ref>.</p></sidenote><inline class="smallCaps">In General</inline>.—</heading><content>Section 913 (relating to deduction for certain expenses of living abroad) is hereby repealed.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <page identifier="/us/stat/95/195">95 STAT. 195</page> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>The table of sections for subpart B of part III of subchapter N of chapter 1 is amended by striking out the item relating to section 913.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 62 (relating to definition of adjusted gross income) is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s62">26 USC 62</ref>.</p></sidenote> amended by striking out paragraph (14) and redesignating paragraphs (15) and (16) as paragraphs (14) and (15), respectively.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>Subparagraph (C) of section 43(c)(1) (relating to earned <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s43">26 USC 43</ref>.</p></sidenote> income) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>913,</quotedText>” in the caption thereof,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out clause (ii), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by redesignating clause (iii) as clause (ii).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Subsection (k) of section 1034 (relating to rollover of gain on <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1034">26 USC 1034</ref>.</p></sidenote> sale of principal residence) is amended by striking out “<quotedText>section 913(j)(1)(B)</quotedText>” and inserting in lieu thereof “<quotedText>section 911(d)(3)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>Section 3401 (relating to the definition of wages) is amended <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3401">26 USC 3401</ref>.</p></sidenote> by striking out paragraph (18) and redesignating paragraphs (19) and (20) as paragraphs (18) and (19), respectively.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>Subparagraph (B) of section 6091(b)(1) (relating to place for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6091">26 USC 6091</ref>.</p></sidenote> filing returns and other documents) is amended by striking out “<quotedText>section 913 (relating to deduction for certain expenses of living abroad)</quotedText>”.</content></paragraph> </subsection> </section> <section><num value="113">SEC. 113. </num> <heading>EMPLOYEES LIVING IN CAMPS.</heading> <content>Section 119 (relating to meals or lodging furnished for the convenience <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s119">26 USC 119</ref>.</p></sidenote> of the employer) is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Employees Living in Certain Camps</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of an individual who is furnished lodging in a camp located in a foreign country by or on behalf of his employer, such camp shall be considered to be part of the business premises of the employer.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Camp</inline>.—</heading><chapeau>For purposes of this section, a camp constitutes lodging which is—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>provided by or on behalf of the employer for the convenience of the employer because the place at which such individual renders services is in a remote area where satisfactory housing is not available on the open market,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>located, as near as practicable, in the vicinity of the place at which such individual renders services, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>furnished in a common area (or enclave) which is not available to the public and which normally accommodates 10 or more employees.”</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </section> <section><num value="114">SEC. 114. </num> <heading>REPORTS BY SECRETARY.</heading> <content>Section 208 of the Foreign Earned Income Act of 1978 is amended to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s911">26 USC 911 note</ref>.</p></sidenote> read as follows: <quotedContent> <section><num value="208">“SEC. 208. </num> <heading>REPORTS BY SECRETARY.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>As soon as practicable after the date of the enactment of the Economic Recovery Tax Act of 1981, and as soon as <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 172.</p></sidenote> practicable after the close of each fourth calendar year thereafter, the Secretary of the Treasury shall transmit a report to the Committee on Ways and Means of the House of Representatives and to the Committee on Finance of the Senate on the operation and effects of sections 911 and 912 of the Internal Revenue Code of 1954.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Information From Federal Agencies</inline>.—</heading><content>Each agency of the Federal Government which pays allowances excludable from gross income under section 912 of such Code shall furnish to the Secretary <page identifier="/us/stat/95/196">95 STAT. 196</page> of the Treasury such information as he determines to be necessary to carry out his responsibility under subsection (a).”</content> </subsection> </section> </quotedContent> </content> </section> <section><num value="115">SEC. 115. </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s911">26 USC 911 note</ref>.</p></sidenote>EFFECTIVE DATE.</heading> <content>The amendments made by this subtitle (other than section 114) shall apply with respect to taxable years beginning after December 31, 1981.</content> </section> </subtitle> <subtitle><num value="C">Subtitle C—</num><heading>Miscellaneous Provisions</heading> <section><num value="121">SEC. 121. </num> <heading>DEDUCTION FOR CHARITABLE CONTRIBUTIONS TO BE ALLOWED FOR INDIVIDUALS WHO DO NOT ITEMIZE DEDUCTIONS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s170">26 USC 170</ref>.</p></sidenote><inline class="smallCaps">In General</inline>.—</heading><content>Section 170 (relating to charitable, etc., contributions and gifts) is amended by redesignating subsections (i) and (j) as subsections (j) and (k), respectively, and by inserting after subsection (h) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">Rule for Nonitemization of Deductions</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of an individual who does not itemize his deductions for the taxable year, the applicable percentage of the amount allowable under subsection (a) for the taxable year shall be taken into account as a direct charitable deduction under section 63.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Applicable percentage</inline>.—</heading><content>For purposes of paragraph (1), the applicable percentage shall be determined under the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“For taxable years beginning in—</b></td> <td style="text-align:right; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The applicable percentage is—</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1982, 1983 or 1984</td> <td style="text-align:right; vertical-align:top">25</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1985</td> <td style="text-align:right; vertical-align:top">50</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1986 or thereafter</td> <td style="text-align:right; vertical-align:top">100</td> </tr> </tbody> </table> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Limitation for taxable years beginning before 1985</inline>.—</heading><chapeau>In the case of a taxable year beginning before 1985, the portion of the amount allowable under subsection (a) to which the applicable percentage shall be applied—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>shall not exceed $100 for taxable years beginning in 1982 or 1983, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>shall not exceed $300 for taxable years beginning in 1984.</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">In the case of a married individual filing a separate return, the limit under subparagraph (A) shall be $50, and the limit under subparagraph (B) shall be $150.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Termination</inline>.—</heading><content>The provisions of this subsection shall not apply to contributions made after December 31, 1986.”</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Definition of Taxable Income</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s63">26 USC 63</ref>.</p></sidenote><inline class="smallCaps">In general</inline>.—</heading><chapeau>Paragraph (1) of section 63(b) (relating to individuals) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>and</quotedText>” at the end of subparagraph (A), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by inserting after subparagraph (B) the following new subparagraph: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>the direct charitable deduction, and”.</content></subparagraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Direct charitable deduction defined</inline>.—</heading><content>Section 63 (defining taxable income) is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">Direct Charitable Deduction</inline>.—</heading><content>For purposes of this section, the term ‘direct charitable deduction’ means that portion of the <page identifier="/us/stat/95/197">95 STAT. 197</page> amount allowable under section 170(a) which is taken as a direct charitable deduction for the taxable year under section 170(i).”</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Paragraph (1) of section 57(b) (relating to adjusted itemized <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s57">26 USC 57</ref>.</p></sidenote> deductions) is amended by inserting “<quotedText>without regard to paragraph (3) thereof</quotedText>” after “<quotedText>section 63(f)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Subsection (f) of section 63 (relating to itemized deductions) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s63">26 USC 63</ref>.</p></sidenote> is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>and</quotedText>” at the end of paragraph (1),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out the period at the end of paragraph (2) and inserting in lieu thereof “<quotedText>, and</quotedText>”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>the direct charitable deduction.”</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Subparagraph (A) of section 3(a)(4) (relating to imposition of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3">26 USC 3</ref>.</p></sidenote> tax table tax) is amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><chapeau>reduced by the sum of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the excess itemized deductions, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the direct charitable deduction, and”.</content> </clause> </subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s170">26 USC 170 note</ref>.</p></sidenote> apply to contributions made after December 31, 1981, in taxable years beginning after such date.</content> </subsection> </section> <section><num value="122">SEC. 122. </num> <heading>18-MONTH PERIODS FOR ROLLOVER OF PRINCIPAL RESIDENCE INCREASED TO 2 YEARS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 1034 (relating to rollover of gain on sale of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1034">26 USC 1034</ref>.</p></sidenote> principal residence) is amended by striking out “<quotedText>18 months</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>2 years</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Paragraph (4) of section 1034(c) is amended by striking out “<quotedText>18-month</quotedText>” and inserting in lieu thereof “<quotedText>2-year</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Paragraph (5) of section 1034(c) is hereby repealed.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><chapeau>The amendments made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1034">26 USC 1034 note</ref>.</p></sidenote> apply to old residences (within the meaning of section 1034 of the Internal Revenue Code of 1954) sold or exchanged—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>after July 20, 1981, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>on or before such date, if the rollover period under such section (determined without regard to the amendments made by this section) expires on or after such date.</content></paragraph> </subsection> </section> <section><num value="123">SEC. 123. </num> <heading>ONE-TIME EXCLUSION OF GAIN INCREASED TO $125,000.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (1) of section 121(b) (relating to one-time <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s121">26 USC 121</ref>.</p></sidenote> exclusion of gain from sale of principal residence by individual who has attained age 55) is amended by striking out “<quotedText>$100,000 ($50,000</quotedText>” and inserting in lieu thereof “<quotedText>$125,000 ($62,500</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s121">26 USC 121 note</ref>.</p></sidenote> apply to residences sold or exchanged after July 20, 1981.</content> </subsection> </section> <section><num value="124">SEC. 124. </num> <heading>INCREASES IN CREDIT ALLOWABLE FOR EXPENSES FOR HOUSEHOLD AND DEPENDENT CARE SERVICES NECESSARY FOR GAINFUL EMPLOYMENT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Increase in Percentage of Expenses Allowed as Credit</inline>.—</heading><content>Subsection (a) of section 44A (relating to expenses for household and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s44A">26 USC 44A</ref>.</p></sidenote> dependent care services necessary for gainful employment) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Allowance of Credit</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of an individual who maintains a household which includes as a member one or more qualifying individuals (as defined in subsection (c)(1)), there shall be allowed <page identifier="/us/stat/95/198">95 STAT. 198</page> as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable percentage of the employment-related expenses (as defined in subsection (c)(2)) paid by such individual during the taxable year.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Applicable percentage defined</inline>.—</heading><content>For purposes of paragraph (1), the term ‘applicable percentage’ means 30 percent reduced (but not below 20 percent) by 1 percentage point for each $2,000 (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year exceeds $10,000.”</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Increases in Dollar Limits on Amount Creditable</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s44A">26 USC 44A</ref>.</p></sidenote><inline class="smallCaps">In general</inline>.—</heading><chapeau>Subsection (d) of section 44A (relating to dollar limit on amount creditable) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>$2,000</quotedText>” and inserting in lieu thereof “<quotedText>$2,400</quotedText>”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>$4,000</quotedText>” and inserting in lieu thereof “<quotedText>$4,800</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading><chapeau>Paragraph (2) of section 44A(e) (relating to earned income limitation) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>$166</quotedText>” and inserting in lieu thereof “<quotedText>$200</quotedText>”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>$333</quotedText>” and inserting in lieu thereof “<quotedText>$400</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Credit Allowed for Certain Services Outside the Taxpayer’s Household</inline>.—</heading><content>Subparagraph (B) of section 44A(c)(2) is amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Exception</inline>.—</heading><chapeau>Employment-related expenses described in subparagraph (A) which are incurred for services outside the taxpayer’s household shall be taken into account only if incurred for the care of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>a qualifying individual described in paragraph (1)(A), or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>a qualifying individual (not described in paragraph (1)(A)) who regularly spends at least 8 hours each day in the taxpayer’s household.”</content> </clause> </subparagraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Day Care Centers Must Meet State Law Requirements</inline>.—</heading><content>Paragraph (2) of section 44A(c) (defining emplo3niient-related expenses) is amended by adding at the end thereof the following new subparagraphs: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Dependent care centers</inline>.—</heading><chapeau>Employment-related expenses described in subparagraph (A) which are incurred for services provided outside the taxpayer’s household by a dependent care center (as defined in subparagraph (D)) shall be taken into account only if—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>such center complies with all applicable laws and regulations of a State or unit of local government, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>the requirements of subparagraph (B) are met.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Dependent Care Center Defined</inline>.—</heading><chapeau>For purposes of this paragraph, the term ‘dependent care center’ means any facility which—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>provides care for more than six individuals (other than individuals who reside at the facility), and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>receives a fee, payment, or grant for providing services for any of the individuals (regardless of whether such facility is operated for profit).”</content> </clause> </subparagraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <heading><inline class="smallCaps">Exclusion of Dependent Care Assistance From the Income of Employees</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Part III of subchapter B of chapter 1 (as <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 267.</p></sidenote> amended by section 301) is amended by redesignating section 129 <page identifier="/us/stat/95/199">95 STAT. 199</page> as section 130 and inserting after section 128 the following new section: <quotedContent> <section><num value="129">“SEC. 129. </num> <heading>DEPENDENT CARE ASSISTANCE PROGRAMS. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s129">26 USC 129</ref>.</p></sidenote></heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Gross income of an employee does not include amounts paid or incurred by the employer for dependent care assistance provided to such employee if the assistance is furnished pursuant to a program which is described in subsection (d).</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Earned Income Limitation</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The amount excluded from the income of an employee under subsection (a) for any taxable year shall not exceed—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>in the case of an employee who is not married at the close of such taxable year, the earned income of such employee for such taxable year, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>in the case of an employee who is married at the close of such taxable year, the lesser of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the earned income of such employee for such taxable year, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the earned income of the spouse of such employee for such taxable year.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Special rule for certain spouses</inline>.—</heading><content>For purposes of paragraph (1), the provisions of section 44A(e)(2) shall apply in determining the earned income of a spouse who is a student or incapable of caring for himself.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Payments to Related Individuals</inline>.—</heading><chapeau>No amount paid or incurred during the taxable year of an employee by an employer in providing dependent care assistance to such employee shall be excluded under subsection (a) if such amount was paid or incurred to an individual—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>with respect to whom, for such taxable year, a deduction is allowable under section 151(e) (relating to personal exemptions for dependents) to such employee or the spouse of such employee, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>who is a child of such employee (within the meaning of section 151(e)(3)) under the age of 19 at the close of such taxable year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Dependent Care Assistance Program</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of this section a dependent care assistance program is a separate written plan of an employer for the exclusive benefit of his employees to provide such employees with dependent care assistance which meets the requirements of paragraphs (2) through (6) of this subsection.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Eligibility</inline>.—</heading><content>The program shall benefit employees who qualify under a classification set up by the employer and found by the Secretary not to be discriminatory in favor of employees who are officers, owners, or highly compensated, or their dependents. For purposes of this paragraph, there shall be excluded from consideration employees not included in the program who are included in a unit of employees covered by an agreement which the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and one or more employers, if there is evidence that dependent care benefits were the subject of good faith bargaining between such employee representatives and such employer or employers.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Principal shareholders or owners</inline>.—</heading><content>Not more than 25 percent of the amounts paid or incurred by the employer for dependent care assistance during the year may be provided for <page identifier="/us/stat/95/200">95 STAT. 200</page> the class of individuals who are shareholders or owners (or their spouses or dependents), each of whom (on any day of the year) owns more than 5 percent of the stock or of the capital or profits interest in the employer.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">No funding required</inline>.—</heading><content>A program referred to in paragraph (1) is not required to be funded.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Notification of eligible employees</inline>.—</heading><content>Reasonable notification of the availability and terms of the program shall be provided to eligible employees.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num> <heading><inline class="smallCaps">Statement of expenses</inline>.—</heading><content>The plan shall furnish to an employee, on or before January 31, a written statement showing the amounts paid or expenses incurred by the employer in providing dependent care assistance to such employee during the previous calendar year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <heading><inline class="smallCaps">Definitions and Special Rules</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Dependent care assistance</inline>.—</heading><content>The term ‘dependent care assistance’ means the payment of, or provision of, those services which if paid for by the employee would be considered employment-related expenses under section 44A(c)(2) (relating to expenses for household and dependent care services necessary for gainful employment).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Earned income</inline>.—</heading><content>The term ‘earned income’ shall have the meaning given such term in section 43(c)(2), but such term shall not include any amounts paid or incurred by an employer for dependent care assistance to an employee.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Employee</inline>.—</heading><content>The term ‘employee’ includes, for any year, an individual who is an employee within the meaning of section 401(c)(1) (relating to self-employed individuals).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Employer</inline>.—</heading><content>An individual who owns the entire interest in an unincorporated trade or business shall be treated as his own employer. A partnership shall be treated as the employer of each partner who is an employee within the meaning of paragraph (3).</content> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Attribution rules</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">Ownership of stock</inline>.—</heading><content>Ownership of stock in a corporation shall be determined in accordance with the rules provided under subsections (d) and (e) of section 1563 (without regard to section 1563(e)(3)(C)).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Interest in unincorporated trade or business</inline>.—</heading><content>The interest of an employee in a trade or business which is not incorporated shall be determined in accordance with regulations prescribed by the Secretary, which shall be based on principles similar to the principles which apply in the case of subparagraph (A).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num> <heading><inline class="smallCaps">Utilization test not applicable</inline>.—</heading><content>A dependent care assistance program shall not be held or considered to fail to meet any requirements of subsection (d) merely because of utilization rates for the different types of assistance made available under the program.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num> <heading><inline class="smallCaps">Disallowance of excluded amounts as credit or deduction</inline>.—</heading><content>No deduction or credit shall be allowed under any other section of this chapter for any amount excluded from income by reason of this section.”</content></paragraph> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Exclusion from wages</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <heading><inline class="smallCaps">Employment taxes and collection of income tax</inline>.—</heading><content>Subtitle C is amended by striking out “<quotedText>section 127</quotedText>” in <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3121/3306">26 USC 3121, 3306</ref>.</p></sidenote> section 3121(a)(18) (relating to the Federal Insurance Contributions Act), section 3306(b)(13) (relating to the Federal <page identifier="/us/stat/95/201">95 STAT. 201</page> Unemployment Tax Act), and section 3401(a)(19) (relating to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3401">26 USC 3401</ref>.</p></sidenote> collection of income tax at source on wages) and inserting in lieu thereof “<quotedText>section 127 or 129</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <heading><inline class="smallCaps">Social security act</inline>.—</heading><content>Subsection (q) of section 209 of the Social Security Act (defining wages) is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s409">42 USC 409</ref>.</p></sidenote> striking out “<quotedText>section 127</quotedText>” and inserting in lieu thereof “<quotedText>section 127 or 129</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <heading><inline class="smallCaps">Effective Date</inline>.—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s44A">26 USC 44A note</ref>.</p></sidenote></heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The amendments made by subsection (e)(2) shall apply to remuneration paid after December 31, 1981.</content></paragraph> </subsection> </section> <section><num value="125">SEC. 125. </num> <heading>DEDUCTION FOR ADOPTION EXPENSES PAID BY AN INDIVIDUAL.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Part VII of subchapter B of chapter 1 (relating to additional itemized deductions for individuals), as amended by section 103, is amended by redesignating section 222 as section 223 and <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 187.</p></sidenote> by inserting after section 221 the following new section: <quotedContent> <section><num value="222">“SEC. 222. </num> <heading>ADOPTION EXPENSES. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s222">26 USC 222</ref>.</p></sidenote></heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Allowance of Deduction</inline>.—</heading><content>In the case of an individual, there shall be allowed as a deduction for the taxable year the amount of the qualified adoption expenses paid or incurred by the taxpayer during such taxable year.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Limitations</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Maximum dollar amount</inline>.—</heading><content>The aggregate amount of adoption expenses which may be taken into account under subsection (a) with respect to the adoption of a child shall not exceed $1,500.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Denial of double benefit</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>No deduction shall be allowable under subsection (a) for any expense for which a deduction or credit is allowable under any other provision of this chapter.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Grants</inline>.—</heading><content>No deduction shall be allowable under subsection (a) for any expenses paid from any funds received under any Federal, State, or local program.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Qualified adoption expenses</inline>.—</heading><content>The term ‘qualified adoption expenses’ means reasonable and necessary adoption fees, court costs, attorney fees, and other expenses which are directly related to the legal adoption of a child with special needs by the taxpayer and which are not incurred in violation of State or Federal law.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Child with special needs</inline>.—</heading><content>The term ‘child with special needs’ means a child with respect to whom adoption assistance payments are made under section 473 of the Social Security Act.”</content></paragraph> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>The table of sections for such part VII is amended by striking out the item relating to section 222 and inserting in lieu thereof the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 222.</designator> <label>Adoption expenses.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 223.</designator> <label>Cross references.”</label></referenceItem> </toc> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s222">26 USC 222 note</ref>.</p></sidenote> apply to taxable years beginning after December 31, 1980.</content> </subsection> </section> <page identifier="/us/stat/95/202">95 STAT. 202</page> <section><num value="126">SEC. 126. </num> <heading>MAXIMUM RATE OF IMPUTED INTEREST FOR SALE OF LAND BETWEEN RELATED PERSONS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s483">26 USC 483</ref>.</p></sidenote><inline class="smallCaps">General Rule</inline>.—</heading><content>Section 483 (relating to interest on certain deferred payments) is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="g">“(g) </num> <heading><inline class="smallCaps">Maximum Rate of Interest on Certain Transfers of Land Between Related Parties</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of any qualified sale, the maximum interest rate used in determining the total unstated interest rate under the regulations under subsection (b) shall not exceed 7 percent, compounded semiannually.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Qualified sale</inline>.—</heading><content>For purposes of this subsection, the term ‘qualified sale’ means any sale or exchange of land by an individual to a member of such individual’s family (within the meaning of section 267(c)(4)).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">$500,000 limitation</inline>.—</heading><content>Paragraph (1) shall not apply to any qualified sale between individuals made during any calendar year to the extent that the sales price for such sale (when added to the aggregate sales price for prior qualified sales between such individuals during the calendar year) exceeds $500,000.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Nonresident alien individuals</inline>.—</heading><content>This section shall not apply to any sale or exchange if any party to such sale or exchange is a nonresident alien individual.”</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s483">26 USC 483 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to payments made after June 30, 1981, pursuant to sales or exchanges after such date.</content> </subsection> </section> <section><num value="127">SEC. 127. </num> <heading>STATE LEGISLATORS TRAVEL EXPENSES AWAY FROM HOME.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s162">26 USC 162</ref>.</p></sidenote><inline class="smallCaps">In General</inline>.—</heading><content>Section 162 (relating to trade or business expenses) is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="h">“(h) </num> <heading><inline class="smallCaps">State Legislators’ Travel Expenses Away From Home</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of subsection (a), in the case of any individual who is a State legislator at any time during the taxable year and who makes an election under this subsection for the taxable year—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the place of residence of such individual within the legislative district which he represented shall be considered his home,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>he shall be deemed to have expended for living expenses (in connection with his trade or business as a legislator) an amount equal to the sum of the amounts determined by multiplying each legislative day of such individual during the taxable year by the greater of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the amount generally allowable with respect to such day to employees of the State of which he is a legislator for per diem while away from home, to the extent such amount does not exceed 110 percent of the amount described in clause (ii) with respect to such day, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the amount generally allowable with respect to such day to employees of the executive branch of the Federal Government for per diem while away from home but serving in the United States, and</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>he shall be deemed to be away from home in the pursuit of a trade or business on each legislative day.</content></subparagraph> </paragraph> <page identifier="/us/stat/95/203">95 STAT. 203</page> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Legislative days</inline>.—</heading><chapeau>For purposes of paragraph (1), a legislative day during any taxable year for any individual shall be any day during such year on which—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the legislature was in session (including any day in which the legislature was not in session for a period of 4 consecutive days or less), or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the legislature was not in session but the physical presence of the individual was formally recorded at a meeting of a committee of such legislature.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Election</inline>.—</heading><content>An election under this subsection for any taxable year shall be made at such time and in such manner as the Secretary shall by regulations prescribe.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Section not to apply to legislators who reside near capitol</inline>.—</heading><content>For taxable years beginning after December 31, 1980, this subsection shall not apply to any legislator whose place of residence within the legislative district which he represents is 50 or fewer miles from the capitol building of the State.”</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The amendment made by subsection (a) shall apply to taxable <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p> <p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s162">26 USC 162 note</ref>.</p></sidenote> years beginning on or after January 1, 1976.</content> </subsection> </section> <section><num value="128">SEC. 128. </num> <heading>RATES OF TAX FOR PRINCIPAL CAMPAIGN COMMITTEES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 527 (relating to political organizations) is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s527">26 USC 527</ref>.</p></sidenote> amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="h">“(h) </num> <heading><inline class="smallCaps">Special Rule for Principal Campaign Committees</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of a political organization which is a principal campaign committee, paragraph (1) of subsection (b) shall be applied by substituting ‘the appropriate rates’ for ‘the highest rate’.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Principal campaign committee defined</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘principal campaign committee’ means the political committee designated by a candidate for Congress as his principal campaign committee for purposes of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>section 302(e) of the Federal Election Campaign Act of 1971 (2 U.S.C. 432(e)), and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>this subsection.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Designation</inline>.—</heading><chapeau>A candidate may have only 1 designation in effect under subparagraph (A)(ii) at any time and such designation—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>shall be made at such time and in such manner as the Secretary may prescribe by regulations, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>once made, may be revoked only with the consent of the Secretary.”</content> </clause> </subparagraph> </paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s527">26 USC 527 note</ref>.</p></sidenote> apply to taxable years beginning after December 31, 1981.</content> </subsection> </section> </subtitle> <num value="II">TITLE II—</num><heading>BUSINESS INCENTIVE PROVISIONS</heading> <subtitle><num value="A">Subtitle A—</num><heading>Cost Recovery Provisions</heading> <section><num value="201">SEC. 201. </num> <heading>ACCELERATED COST RECOVERY SYSTEM.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Part VI of subchapter B of chapter 1 (relating to itemized deductions for individuals and corporations) is amended by inserting after section 167 the following new section: <page identifier="/us/stat/95/204">95 STAT. 204</page> <quotedContent> <section><num value="168">“SEC. 168. </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s168">26 USC 168</ref>.</p></sidenote>ACCELERATED COST RECOVERY SYSTEM.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Allowance of Deduction</inline>.—</heading><content>There shall be allowed as a deduction for any taxable year the amount determined under this section with respect to recovery property.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Amount of Deduction</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Except as otherwise provided in this section, the amount of the deduction allowable by subsection (a) for any taxable year shall be the aggregate amount determined by applying to the unadjusted basis of recovery property the applicable percentage determined in accordance with the following tables:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">For property placed in service after december 31, 1980, and before january 1, 1985</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td rowspan="2" style="width:40%; text-align:center; border-top:1px solid black; border-bottom:1px solid black">“If the recovery year is:</td> <td colspan="4" style="width:60%; text-align:center; border-top:1px solid black; border-bottom:1px solid black">The applicable percentage for the class of property is:</td> </tr> <tr> <td style="width:15%; text-align:center; border-bottom:1px solid black">3-year</td> <td style="width:15%; text-align:center; border-bottom:1px solid black">5-year</td> <td style="width:15%; text-align:center; border-bottom:1px solid black">10-year</td> <td style="width:15%; text-align:center; border-bottom:1px solid black">15-year public utility</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">1</td> <td style="text-align:right; vertical-align:top">25</td> <td style="text-align:right; vertical-align:top">15</td> <td style="text-align:right; vertical-align:top">8</td> <td style="text-align:right; vertical-align:top">5</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">2</td> <td style="text-align:right; vertical-align:top">38</td> <td style="text-align:right; vertical-align:top">22</td> <td style="text-align:right; vertical-align:top">14</td> <td style="text-align:right; vertical-align:top">10</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">3</td> <td style="text-align:right; vertical-align:top">37</td> <td style="text-align:right; vertical-align:top">21</td> <td style="text-align:right; vertical-align:top">12</td> <td style="text-align:right; vertical-align:top">9</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">4</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">21</td> <td style="text-align:right; vertical-align:top">10</td> <td style="text-align:right; vertical-align:top">8</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">5</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">21</td> <td style="text-align:right; vertical-align:top">10</td> <td style="text-align:right; vertical-align:top">7</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">6</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">10</td> <td style="text-align:right; vertical-align:top">7</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">7</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">9</td> <td style="text-align:right; vertical-align:top">6</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">8</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">9</td> <td style="text-align:right; vertical-align:top">6</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">9</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">9</td> <td style="text-align:right; vertical-align:top">6</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">10</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">9</td> <td style="text-align:right; vertical-align:top">6</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">11</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">6</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">12</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">6</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">13</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">6</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">14</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">6</td> </tr> <tr> <td style="text-align:left; vertical-align:top; border-bottom:1px solid black" leaders="yes">15</td> <td style="text-align:left; vertical-align:top; border-bottom:1px solid black" leaders="yes"></td> <td style="text-align:left; vertical-align:top; border-bottom:1px solid black" leaders="yes"></td> <td style="text-align:left; vertical-align:top; border-bottom:1px solid black" leaders="yes"></td> <td style="text-align:right; vertical-align:top; border-bottom:1px solid black">6.</td> </tr> </tbody> </table> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">For property placed in service in 1985</inline>.—</heading> <page identifier="/us/stat/95/205">95 STAT. 205</page> <content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td rowspan="2" style="width:40%; text-align:center; border-top:1px solid black; border-bottom:1px solid black">“If the recovery year is:</td> <td colspan="4" style="width:60%; text-align:center; border-top:1px solid black; border-bottom:1px solid black">The applicable percentage for the class of property is:</td> </tr> <tr> <td style="width:15%; text-align:center; border-bottom:1px solid black">3-year</td> <td style="width:15%; text-align:center; border-bottom:1px solid black">5-year</td> <td style="width:15%; text-align:center; border-bottom:1px solid black">10-year</td> <td style="width:15%; text-align:center; border-bottom:1px solid black">15-year public utility</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">1</td> <td style="text-align:right; vertical-align:top">29</td> <td style="text-align:right; vertical-align:top">18</td> <td style="text-align:right; vertical-align:top">9</td> <td style="text-align:right; vertical-align:top">6</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">2</td> <td style="text-align:right; vertical-align:top">47</td> <td style="text-align:right; vertical-align:top">33</td> <td style="text-align:right; vertical-align:top">19</td> <td style="text-align:right; vertical-align:top">12</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">3</td> <td style="text-align:right; vertical-align:top">24</td> <td style="text-align:right; vertical-align:top">25</td> <td style="text-align:right; vertical-align:top">16</td> <td style="text-align:right; vertical-align:top">12</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">4</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">16</td> <td style="text-align:right; vertical-align:top">14</td> <td style="text-align:right; vertical-align:top">11</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">5</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">8</td> <td style="text-align:right; vertical-align:top">12</td> <td style="text-align:right; vertical-align:top">10</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">6</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">10</td> <td style="text-align:right; vertical-align:top">9</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">7</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">8</td> <td style="text-align:right; vertical-align:top">8</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">8</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">6</td> <td style="text-align:right; vertical-align:top">7</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">9</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">4</td> <td style="text-align:right; vertical-align:top">6</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">10</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">2</td> <td style="text-align:right; vertical-align:top">5</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">11</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">4</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">12</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">4</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">13</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">3</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">14</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">2</td> </tr> <tr> <td style="text-align:left; vertical-align:top; border-bottom:1px solid black" leaders="yes">15</td> <td style="text-align:left; vertical-align:top; border-bottom:1px solid black" leaders="yes"></td> <td style="text-align:left; vertical-align:top; border-bottom:1px solid black" leaders="yes"></td> <td style="text-align:left; vertical-align:top; border-bottom:1px solid black" leaders="yes"></td> <td style="text-align:right; vertical-align:top; border-bottom:1px solid black">1.</td> </tr> </tbody> </table> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">For property placed in service after december 31, 1985</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td rowspan="2" style="width:40%; text-align:center; border-top:1px solid black; border-bottom:1px solid black">“If the recovery year is:</td> <td colspan="4" style="width:60%; text-align:center; border-top:1px solid black; border-bottom:1px solid black">The applicable percentage for the class of property is:</td> </tr> <tr> <td style="width:15%; text-align:center; border-bottom:1px solid black">3-year</td> <td style="width:15%; text-align:center; border-bottom:1px solid black">5-year</td> <td style="width:15%; text-align:center; border-bottom:1px solid black">10-year</td> <td style="width:15%; text-align:center; border-bottom:1px solid black">15-year public utility</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">1</td> <td style="text-align:right; vertical-align:top">33</td> <td style="text-align:right; vertical-align:top">20</td> <td style="text-align:right; vertical-align:top">10</td> <td style="text-align:right; vertical-align:top">7</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">2</td> <td style="text-align:right; vertical-align:top">45</td> <td style="text-align:right; vertical-align:top">32</td> <td style="text-align:right; vertical-align:top">18</td> <td style="text-align:right; vertical-align:top">12</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">3</td> <td style="text-align:right; vertical-align:top">22</td> <td style="text-align:right; vertical-align:top">24</td> <td style="text-align:right; vertical-align:top">16</td> <td style="text-align:right; vertical-align:top">12</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">4</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">16</td> <td style="text-align:right; vertical-align:top">14</td> <td style="text-align:right; vertical-align:top">11</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">5</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">8</td> <td style="text-align:right; vertical-align:top">12</td> <td style="text-align:right; vertical-align:top">10</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">6</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">10</td> <td style="text-align:right; vertical-align:top">9</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">7</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">8</td> <td style="text-align:right; vertical-align:top">8</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">8</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">6</td> <td style="text-align:right; vertical-align:top">7</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">9</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">4</td> <td style="text-align:right; vertical-align:top">6</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">10</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">2</td> <td style="text-align:right; vertical-align:top">5</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">11</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">4</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">12</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">3</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">13</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">3</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">14</td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:left; vertical-align:top" leaders="yes"></td> <td style="text-align:right; vertical-align:top">2</td> </tr> <tr> <td style="text-align:left; vertical-align:top; border-bottom:1px solid black" leaders="yes">15</td> <td style="text-align:left; vertical-align:top; border-bottom:1px solid black" leaders="yes"></td> <td style="text-align:left; vertical-align:top; border-bottom:1px solid black" leaders="yes"></td> <td style="text-align:left; vertical-align:top; border-bottom:1px solid black" leaders="yes"></td> <td style="text-align:right; vertical-align:top; border-bottom:1px solid black">1.</td> </tr> </tbody> </table> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">15-year real property</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of 15-year real properly, the applicable percentage shall be determined in accordance with a table prescribed by the Secretary. In prescribing such table, the Secretary shall—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>assign to the property a 15-year recovery period, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>assign percentages generally determined in accordance with use of the 175 percent declining balance method (200 percent declining balance method in the case of low-income housing), switching to the method described in section 1670(b)(1) at a time to maximize the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s167">26 USC 167</ref>.</p></sidenote> deduction allowable under subsection (a).</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">For purposes of this subparagraph, the applicable percentage in the taxable year in which the property is placed in <page identifier="/us/stat/95/206">95 STAT. 206</page> service shall be determined on the basis of the number of months in such year during which the property was in <sidenote><p class="indent0 firstIndent0 fontsize8">“Low income housing.”</p> <p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1250">26 USC 1250</ref>.</p></sidenote> service. For purposes of this subparagraph, the term ‘low-income housing’ means property described in clause (i), (ii), (iii), or (iv) of section 1250(a)(1)(B).</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Special rule for year of disposition</inline>.—</heading><content>In the case of a disposition of 15-year real property, the deduction allowable under subsection (a) for the taxable year in which the disposition occurs shall reflect only the months during such year the property was in service.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Election of different recovery percentage</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in subsection (f)(2), in lieu of any applicable percentage under paragraphs (1) and (2), the taxpayer may elect, with respect to one or more classes of recovery property placed in service during the taxable tear, the applicable percentage determined by use of the straight line method over the recovery period elected by the taxpayer in accordance with the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The taxpayer may elect a recovery period of:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 3-year property</td> <td style="text-align:left; vertical-align:top"> 3, 5, or 12 years.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 5-year property</td> <td style="text-align:left; vertical-align:top"> 5, 12, or 25 years.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 10-year property</td> <td style="text-align:left; vertical-align:top"> 10, 25, or 35 years.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 15-year real property</td> <td style="text-align:left; vertical-align:top"> 15, 35, or 45 years.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 15-year public utility property</td> <td style="text-align:left; vertical-align:top"> 15, 35, or 45 years.</td> </tr> </tbody> </table> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Operating rules</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in clause (ii), the taxpayer may elect under subparagraph (A) only a single percentage for property in any class of recovery property placed in service during the taxable year. The percentage so elected shall apply to all property in such class placed in service during such taxable year and shall apply throughout the recovery period elected for such property.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Real property</inline>.—</heading><content>In the case of 15-year real property the taxpayer shall make the election under subparagraph (A) on a property-by-property basis.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num> <heading><inline class="smallCaps">Convention</inline>.—</heading><content>Under regulations prescribed by the Secretary, the half-year convention shall apply to any election with respect to any recovery property (other than 15-year real property) with respect to which an election is made under this paragraph.</content> </clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Recovery Property</inline>.—</heading><chapeau>For purposes of this title—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Recovery property defined</inline>.—</heading><chapeau>Except as provided in subsection (e), the term ‘recovery property’ means tangible property of a character subject to the allowance for depreciation—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>used in a trade or business, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>held for the production of income.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Classes of recovery property</inline>.—</heading><chapeau>Each item of recovery property shall be assigned to one of the following classes of property:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <heading><inline class="smallCaps">3-year property</inline>.—</heading><chapeau>The term ‘3-year property’ means section 1245 class property—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>with a present class life of 4 years or less; or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>used in connection with research and experimentation.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">5-year property</inline>.—</heading><content>The term ‘5-year property’ means recovery property which is section 1245 class property and <page identifier="/us/stat/95/207">95 STAT. 207</page> which is not 3-year property, 10-year property, or 15-year public utility property.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">10-year property</inline>.—</heading><chapeau>The term ‘10-year property’ means—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>public utility property (other than section 1250 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1250">26 USC 1250</ref>.</p></sidenote> class property or 3-year property) with a present class life of more than 18 years but not more than 25 years; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>section 1250 class property with a present class life of 12.5 years or less.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">15-year real property</inline>.—</heading><content>The term ‘15-year real property’ means section 1250 class property which does not have a present class life of 12.5 years or less.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num> <heading><inline class="smallCaps">15-year public utility property</inline>.—</heading><content>The term ‘15-year public utility property’ means public utility property (other than section 1250 class property or 3-year property) with a present class life of more than 25 years.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Unadjusted Basis; Adjustments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Unadjusted basis defined</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of this section, the term ‘unadjusted basis’ means the excess of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the basis of the property determined under part II of subchapter O of chapter 1 for purposes of determining gain (determined without regard to the adjustments described in paragraph (2) or (3) of section 1016(a)), over</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><chapeau>the sum of—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>that portion of the basis for which the taxpayer properly elects amortization (including the deduction allowed under section 167(k)) in lieu of depreciation, and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">(II) </num><content>that portion of the basis which the taxpayer properly elects to treat as an expense under section 179.</content> </subclause> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Time for taking basis into account</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The unadjusted basis of property shall be first taken into account under subsection (b) for the taxable year in which the property is placed in service.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Redeterminations</inline>.—</heading><content>The Secretary shall by regulation provide for the method of determining the deduction allowable under subsection (a) for any taxable year (and succeeding taxable years) in which the basis is redetermined (including any reduction under section 1017).</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Dispositions</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">Mass asset accounts</inline>.—</heading><content>In lieu of recognizing gain or loss under this chapter, a taxpayer who maintains one or more mass asset accounts of recovery property may, under regulations prescribed by the Secretary, elect to include in income all proceeds realized on the disposition of such property.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Adjustment to basis</inline>.—</heading><content>Except as provided under regulations prescribed by the Secretary under subsection (f)(7), if any recovery property (other than 15-year real property or property with respect to which an election under subparagraph (A) is made) is disposed of, the unadjusted basis of such property shall cease to be taken into account in determining any recovery deduction allowable under subsec-<page identifier="/us/stat/95/208">95 STAT. 208</page>tion (a) as of the beginning of the taxable year in which such disposition occurs.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num> <heading><inline class="smallCaps">Disposition includes retirement</inline>.—</heading><content>For purposes of this subparagraph, the term ‘disposition’ includes retirement.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <heading><inline class="smallCaps">Property Excluded From Application of Section</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Property placed in service before january 1, 1981</inline>.—</heading><content>The term ‘recovery property’ does not include property placed in service by the taxpayer before January 1, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Certain methods of depreciation</inline>.—</heading><chapeau>The term ‘recovery property’ does not include property if—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the taxpayer elects to exclude such property from the application of this section, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>for the first taxable year for which a deduction would (but for this election) be allowable under this section with respect to such property in the hands of the taxpayer, the property is properly depreciated under the unit-of-production method or any method of depreciation not expressed in a term of years (other than the retirement-replacement-betterment method).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Special rule for certain public utility property</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘recovery property’ does not include public utility property (within the meaning of section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s167">26 USC 167</ref>.</p></sidenote> 167(1)(3)(A)) if the taxpayer does not use a normalization method of accounting.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Use of normalization method defined</inline>.—</heading><chapeau>For purposes of subparagraph (A), in order to use a normalization method of accounting with respect to any public utility property—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the taxpayer must, in computing its tax expense for purposes of establishing its cost of service for rate-making purposes and reflecting operating results in its regulated books of account, use a method of depreciation with respect to such property that is the same as, and a depreciation period for such property that is no shorter than, the method and period used to compute its depreciation expense for such purposes; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>if the amount allowable as a deduction under this section with respect to such property differs from the amount that would be allowable as a deduction under section 167 (determined without regard to section 167(1)) using the method (including the period, first and last year convention, and salvage value) used to compute regulated tax expense under subparagraph (B)(i), the taxpayer must make adjustments to a reserve to reflect the deferral of taxes resulting from such difference.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Public utility property which is not recovery property</inline>.—</heading><content>In the case of public utility property which, by reason of this paragraph, is not treated as recovery property, the allowance for depreciation under section 167(a) shall be an amount computed using the method and period referred to in subparagraph (B)(i).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Certain transactions in property placed in service before 1986</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">Section 1245 class property</inline>.—</heading><chapeau>The term ‘recovery property’ does not include section 1245 class property acquired by the taxpayer after December 31, 1980, if—</chapeau> <page identifier="/us/stat/95/209">95 STAT. 209</page> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the property was owned or used at any time during 1980 by the taxpayer or a related person,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the property is acquired from a person who owned such property at any time during 1980, and, as part of the transaction, the user of such property does not change,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>the taxpayer leases such property to a person (or a person related to such person) who owned or used such property at any time during 1980, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>the property is acquired in a transaction as part of which the user of such property does not change and the property is not recovery property in the hands of the person from which the property is so acquired by reason of clause (ii) or (iii).</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">For purposes of this subparagraph and subparagraph (B), property shall not be treated as owned before it is placed in service. For purposes of this subparagraph, whether the user of property changes as part of a transaction shall be determined in accordance with regulations prescribed by the Secretary.</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Section 1250 class property</inline>.—</heading><chapeau>The term ‘recovery <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1250">26 USC 1250</ref>.</p></sidenote> property’ does not include section 1250 class property acquired by the taxpayer after December 31, 1980, if—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>such property was owned by the taxpayer or by a related person at any time during 1980;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the taxpayer leases such property to a person (or a person related to such person) who owned such property at any time during 1980; or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>such property is acquired in an exchange described in section 1031, 1033, 1038, or 1039 to the extent that the basis of such property includes an amount representing the adjusted basis of other property owned by the taxpayer or a related person during 1980.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Certain nonrecognition transactions</inline>.—</heading><content>The term ‘recovery property’ does not include property placed in service by the transferor or distributor before January 1, 1981, which is acquired by the taxpayer after December 31, 1980, in a transaction described in section 332, 351, 361, 371(a), 374(a), 721, or 731 (or such property acquired from the transferee or acquiring corporation in a transaction described in such section), to the extent that the basis of the property is determined by reference to the basis of the property in the hands of the transferor or distributor. In the case of property to which this subparagraph applies, rules similar to the rules described in section 381(c)(6) shall apply.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Related person defined</inline>.—</heading><chapeau>Except as provided in subparagraph (E), for purposes of this paragraph a person (hereinafter referred to as the related person) is related to any person if—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the related person bears a relationship to such person specified in section 267(b) or section 707(b)(1), or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the related person and such person are engaged in trades or businesses under common control (within the meaning of subsections (a) and (b) of section 52).</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">For purposes of clause (i), in applying section 267(b) and section 707(b)(1) ‘10 percent’ shall be substituted for ‘50 percent’. The determination of whether a person is related to <page identifier="/us/stat/95/210">95 STAT. 210</page> another person shall be made as of the time the taxpayer acquires the property involved.</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num> <heading><inline class="smallCaps">Liquidation of subsidiary, etc</inline>.—</heading><chapeau>For purposes of this paragraph, a corporation is not a related person to the taxpayer—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>if such corporation is a distributing corporation in <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s334">26 USC 334</ref>.</p></sidenote> a transaction to which section 334(b)(2)(B) applies and the stock of such corporation referred to in such subparagraph (B) was acquired by the taxpayer by purchase after December 31, 1980, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>if such corporation is liquidated in a liquidation to which section 331(a) applies and the taxpayer (or a related person) by himself or together with 1 or more other persons acquires the stock of the liquidated corporation by purchase (meeting the requirements of section 334(b)(2)(B)) after December 31, 1980.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num> <heading><inline class="smallCaps">Antiavoidance rule</inline>.—</heading><content>The term ‘recovery property’ does not include property acquired by the taxpayer after December 31, 1980, which, under regulations prescribed by the Secretary, is acquired in a transaction one of the principal purposes of which is to avoid the principles of paragraph (1) and this paragraph.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="G">“(G) </num> <heading><inline class="smallCaps">Reduction in unadjusted basis</inline>.—</heading><content>In the case of an acquisition of property described in subparagraph (B) or (C), the unadjusted basis of the property under subsection (d) shall be reduced to the extent that such property acquired is not recovery property.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="H">“(H) </num> <heading><inline class="smallCaps">Special rules for property placed in service before certain percentages take effect</inline>.—</heading><chapeau>Under regulations prescribed by the Secretary—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>rules similar to the rules of this paragraph shall be applied in determining whether the tables contained in subparagraph (B) or (C) of subsection (b)(1) apply with respect to recovery property, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><chapeau>if the tables contained in subparagraph (B) or (C) of subsection (b)(1) do not apply to such property by reason of clause (i), the deduction allowable under subsection (a) shall be computed—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>In the case of a transaction described in subparagraph (C), under rules similar to the rules described in section 381(c)(6); and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>in the case of a transaction otherwise described in this paragraph, under the recovery period and method (including rates prescribed under subsection (b)(1)) used by the person from whom the taxpayer acquired such property (or, where such person had no recovery method and period for such property, under the recovery period and method (including rates prescribed under subsection (b)(1)) used by the person which transferred such property to such person).</content> </subclause> </clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <heading><inline class="smallCaps">Special Rules for Application of This Section</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Components of section 1250 class property</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Except as otherwise provided in this paragraph—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the deduction allowable under subsection (a) with respect to any component (which is section 1250 class <page identifier="/us/stat/95/211">95 STAT. 211</page> property) of a building shall be computed in the same manner as the deduction allowable with respect to such building, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><chapeau>the recovery period for such component shall begin on the later of—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>the date such component is placed in service, or</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>the date on which the building is placed in service.</content> </subclause> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Transitional rule</inline>.—</heading><content>In the case of any building placed in service by the taxpayer before January 1, 1981, for purposes of applying subparagraph (A) to components of such buildings placed in service after December 31, 1980, the deduction allowable under subsection (a) with respect to such components shall be computed in the same manner as the deduction allowable with respect to the first such component placed in service after December 31, 1980. For purposes of the preceding sentence, the method of computing the deduction allowable with respect to such first component shall be determined as if it were a separate building.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Exception for substantial improvements</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of this paragraph, a substantial improvement shall be treated as a separate building.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Substantial improvement</inline>.—</heading><content>For purposes of clause (i), the term ‘substantial improvement’ means the improvements added to capital account with respect to any building during any 24-month period, but only if the sum of the amounts added to such account during such period equals or exceeds 25 percent of the adjusted basis of the building (determined without regard to the adjustments provided in paragraphs (2) and (3) of section 1016(a)) as of the first day of such period. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1016">26 USC 1016</ref>.</p></sidenote></content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num> <heading><inline class="smallCaps">Improvements must be made after building in service for 3 years</inline>.—</heading><content>For purposes of this paragraph, the term ‘substantial improvement’ shall not include any improvement made before the date 3 years after the building was placed in service.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Recovery property used predominantly outside the united states</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Except as provided in subparagraphs (B) and (C), in the case of recovery property which, during the taxable year, is used predominantly outside the United States, the recovery deduction for the taxable year shall be, in lieu of the amount determined under subsection (b), the amount determined by applying to the unadjusted basis of such property the applicable percentage determined under tables prescribed by the Secretary. For purposes of the preceding sentence, in prescribing such tables, the Secretary shall—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>assign the property described in this subparagraph to classes in accordance with the present class life (or 12 years in the case of personal property with no present class life) of such property; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>assign percentages (taking into account the half-year convention) determined in accordance with use of the method of depreciation described in section 167(b)(2), switching to the method described in section 167(b)(1) at <page identifier="/us/stat/95/212">95 STAT. 212</page> a time to maximize the deduction allowable under subsection (a).</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Real property</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Except as provided in subparagraph (C), in the case of 15-year real property which, during the taxable year, is predominantly used outside the United States, the recovery deduction for the taxable year shall be, in lieu of the amount determined under subsection (b), the amount determined by applying to the unadjusted basis of such property the applicable percentage determined under tables prescribed by the Secretary. For purposes of the preceding sentence in prescribing such tables, the Secretary shall—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>assign to the property described in this subparagraph a 35-year recovery period; and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>assign percentages (taking into account the next to the last sentence of subsection (b)(2)(A)) determined in accordance with use of the method of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s167">26 USC 167</ref>.</p></sidenote> depreciation described in section 167(j)(1)(B), switching to the method described in section 167(b)(1) at a time to maximize the deduction allowable under subsection (a).</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Special rule for disposition</inline>.—</heading><content>In the case of a disposition of 15-year real property described in clause (i), subsection (b)(2)(B) shall apply.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Election of different recovery percentage</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">General rule</inline>.—</heading><content>The taxpayer may elect, with respect to one or more classes of recovery property described in this paragraph, to determine the applicable percentage under this paragraph by use of the straight-line method over the recovery period determined in accordance with the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of:</b></td> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The taxpayer may elect a recovery period of:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 3-year property</td> <td style="text-align:left; vertical-align:top"> The present class life, 5 or 12 years.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 5-year property</td> <td style="text-align:left; vertical-align:top"> The present class life, 12 or 25 years.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 10-year property</td> <td style="text-align:left; vertical-align:top"> The present class life, 25 or 35 years.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 15-year real property</td> <td style="text-align:left; vertical-align:top"> 35 or 45 years.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 15-year public utility property</td> <td style="text-align:left; vertical-align:top"> The present class life, 35 or 45 years.</td> </tr> </tbody> </table> </content> </clause> <page identifier="/us/stat/95/213">95 STAT. 213</page> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Operating rules</inline>.—</heading> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num> <heading><inline class="smallCaps">Period elected by taxpayer</inline>.—</heading><content>Except as provided in subclause (II), the taxpayer may elect under clause (i) for any taxable year only a single recovery period for recovery property described in this paragraph which is placed in service during such taxable year, which has the same present class life, and which is in the same class under subsection (c)(2). The period so elected shall not be shorter than such present class life.</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num> <heading><inline class="smallCaps">Real property</inline>.—</heading><content>In the case of 15-year real property, the election under clause (i) shall be made on a property-by-property basis.</content> </subclause> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Determination of property used predominantly outside the united states</inline>.—</heading><content>For purposes of this paragraph, under regulations prescribed by the Secretary, rules similar to the rules under section 48(a)(2) (including the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s48">26 USC 48</ref>.</p></sidenote> exceptions under subparagraph (B)) shall be applied in determining whether property is used predominantly outside the United States.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num> <heading><inline class="smallCaps">Convention</inline>.—</heading><content>Under regulations prescribed by the Secretary, the half year convention shall apply for purposes of any determination under subparagraph (C) (other than any determination with respect to 15-year real property).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">RRB replacement property</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of RRB replacement property placed in service before January 1, 1985, the recovery deduction for the taxable year shall be, in lieu of the amount determined under subsection (b), the amount determined by applying to the unadjusted basis of such property the applicable percentage determined under tables prescribed by the Secretary. For purposes of the preceding sentence, in prescribing such tables, the Secretary shall—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <content class="inline"> <p class="inline">use the recovery period determined in accordance with the following table:</p> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If the year property is placed in service is:</b></td> <td style="text-align:right; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The recovery period is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1981</td> <td style="text-align:right; vertical-align:top">1</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1982</td> <td style="text-align:right; vertical-align:top">2</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1983</td> <td style="text-align:right; vertical-align:top">3</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1984</td> <td style="text-align:right; vertical-align:top">4</td> </tr> </tbody> </table> <p class="indent3 firstIndent0 fontsize10">and</p> </content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>assign percentages determined in accordance with use of the method of depreciation described in section 167(b)(2), switching to the method described in section 167(b)(3) at a time to maximize the deduction allowable under subsection (a) (taking into account the half-year convention).</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">RRB replacement property defined</inline>.—</heading><chapeau>For purposes of this section, the term ‘RRB replacement property’ means replacement track material (including rail, ties, other track material, and ballast) installed by a railroad (including a railroad switching or terminal company) if—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the replacement is made pursuant to a scheduled program for replacement.</content> </clause> <page identifier="/us/stat/95/214">95 STAT. 214</page> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the replacement is made pursuant to observations by maintenance-of-way personnel of specific track material needing replacement,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>the replacement is made pursuant to the detection by a rail-test car of specific track material needing replacement, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>the replacement is made as a result of a casualty.</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">Replacements made as a result of a casualty shall be RRB replacement property only to the extent that, in the case of each casualty, the replacement cost with respect to the replacement track material exceeds $50,000.</continuation> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Manner and time for making elections</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Any election under this section shall be made for the taxable year in which the property is placed in service.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Made on return</inline>.—</heading><content>Any election under this section shall be made on the taxpayer’s return of the tax imposed by this chapter for the taxable year concerned.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Revocation only with consent</inline>.—</heading><content>Any election under this section, once made, may be revoked only with the consent of the Secretary.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Short taxable years</inline>.—</heading><content>In the case of a taxable year that is less than 12 months, the amount of the deduction under this section shall be an amount which bears the same relationship to the amount of the deduction, determined without regard to this paragraph, as the number of months in the short taxable year bears to 12. In such case, the amount of the deduction for subsequent taxable years shall be appropriately adjusted in accordance with regulations prescribed by the Secretary. The determination of when a taxable year begins shall be made in accordance with regulations prescribed by the Secretary. This paragraph shall not apply to any deduction with respect to any property for the first taxable year of the lessor for which an election under paragraph (8) is in effect with respect to such property.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num> <heading><inline class="smallCaps">Leasehold improvements</inline>.—</heading><content>For purposes of determining whether a leasehold improvement which is recovery property shall be amortized over the term of the lease, the recovery period (taking into account any election under paragraph (2)(C) of this subsection or under subsection (b)(3) with respect to such property) of such property shall be taken into account in lieu of its useful life.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num> <heading><inline class="smallCaps">Special rule for acquisitions and dispositions in nonrecognition transactions</inline>.—</heading><content>Notwithstanding any other provision of this section, the deduction allowed under this section in the taxable year in which recovery property is acquired or is disposed of in a transaction in which gain or loss is not recognized in whole or in part shall be determined in accordance with regulations prescribed by the Secretary.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num> <heading><inline class="smallCaps">Special rule for leases</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of an agreement with respect to qualified leased property, if all of the parties to the agreement characterize such agreement as a lease and elect to have the provisions of this paragraph apply with respect to such agreement, and if the requirements of subparagraph (B) are met, then, for purposes of this subtitle—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>such agreement shall be treated as a lease entered into by the parties (and any party which is a corporation <page identifier="/us/stat/95/215">95 STAT. 215</page> described in subparagraph (B)(i)(I) shall be deemed to have entered into the lease in the course of carrying on a trade or business), and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the lessor shall be treated as the owner of the property and the lessee shall be treated as the lessee of the property.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Certain requirements must be met</inline>.—</heading><chapeau>The requirements of this subparagraph are met if—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><chapeau>the lessor is—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>a corporation (other than an electing small business corporation (within the meaning of section 1371(b)) or a personal holding company (within the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1371">26 USC 1371</ref>.</p></sidenote> meaning of section 542(a))),</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>a partnership all of the partners of which are corporations described in subclause (I), or</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="III">“(III) </num><content>a grantor trust with respect to which the grantor and all beneficiaries of the trust are described in subclause (I) or (II),</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><chapeau>the minimum investment of the lessor—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>at the time the property is first placed in service under the lease, and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>at all times during the term of the lease,</content> </subclause> <continuation class="indent3 firstIndent0 fontsize10">is not less than 10 percent of the adjusted basis of such property, and</continuation> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><chapeau>the term of the lease (including any extensions) does not exceed the greater of—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>90 percent of the useful life of such property for purposes of section 167, or</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>150 percent of the present class life of such property.</content> </subclause> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">No other factors taken into account</inline>.—</heading><content>If the requirements of subparagraphs (A) and (B) are met with respect to any transaction described in subparagraph (A), no other factors shall be taken into account in making a determination as to whether subparagraph (A) (i) or (ii) applies with respect to such transaction.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Qualified leased property defined</inline>.—</heading><chapeau>For purposes of subparagraph (A), the term ‘qualified leased property’ means recovery property (other than a qualified rehabilitated building within the meaning of section 48(g)(1)) which <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 236.</p></sidenote> is—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>new section 38 property (as defined in section 48(b)) of the lessor which is leased within 3 months after such property was placed in service and which, if acquired by the lessee, would have been new section 38 property of the lessee,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><chapeau>property—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>which was new section 38 property of the lessee,</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>which was leased within 3 months after such property was placed in service by the lessee, and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="III">“(III) </num><content>with respect to which the adjusted basis of the lessor does not exceed the adjusted basis of the lessee at the time of the lease, or</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>property which is a qualified mass commuting vehicle (as defined in section 103(b)(9)) and which is <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 349.</p></sidenote> financed in whole or in part by obligations the interest <page identifier="/us/stat/95/216">95 STAT. 216</page> on which is excludable from income under section 103(a).</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">For purposes of this title (other than this subparagraph), any property described in clause (i) or (ii) to which subparagraph (A) applies shall be deemed originally placed in service not earlier than the date such property is used under the lease. In the case of property placed in service after December 31, 1980, and before the date of the enactment of this subparagraph, this subparagraph shall be applied by submitting ‘the date of the enactment of this subparagraph’ for ‘such property was placed in service’.</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num> <heading><inline class="smallCaps">Minimum investment</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of subparagraph (A), the term ‘minimum investment’ means the amount the lessor has at risk with respect to the property (other than financing from the lessee or a related party of the lessee).</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Special rule for purchase requirement</inline>.—</heading><content>For purposes of clause (i), an agreement between the lessor and lessee requiring either or both parties to purchase or sell the qualified leased property at some price (whether or not fixed in the agreement) at the end of the lease term shall not affect the amount the lessor is treated as having at risk with respect to the property.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num> <heading><inline class="smallCaps">Characterization by parties</inline>.—</heading><content>For purposes of this paragraph, any determination as to whether a person is a lessor or lessee or property is leased shall be made on the basis of the characterization of such person or property under the agreement described in subparagraph (A).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="G">“(G) </num> <heading><inline class="smallCaps">Regulations</inline>.—</heading><content>The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this paragraph, including (but not limited to) regulations consistent with such purposes which limit the aggregate amount of (and timing of) deductions and credits in respect of qualified leased property to the aggregate amount (and the timing) allowable without regard to this paragraph.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="H">“(H) </num> <heading><inline class="smallCaps">Cross reference</inline>.—</heading><content> <p class="indent1 firstIndent1 fontsize10">“<b>For special recapture in cases where lessee acquires qualified leased property, see section 1245</b>.</p> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">“(9) </num> <heading><inline class="smallCaps">Salvage value</inline>.—</heading><content>No salvage value shall be taken into account in determining the deduction allowable under subsection (a).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">“(10) </num> <heading><inline class="smallCaps">Transferee bound by transferor’s period and method in certain cases</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of recovery property transferred in a transaction described in subparagraph (B), the transferee shall be treated as the transferor for purposes of computing the deduction allowable under subsection (a) with respect to so much of the basis in the hands of the transferee as does not exceed the adjusted basis in the hands of the transferor.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Transfers covered</inline>.—</heading><chapeau>The transactions described in this subparagraph are—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s332">26 USC 332</ref>.</p></sidenote> <content class="inline">a transaction described in section 332 (other than a transaction with respect to which the basis is determined under section 334(b)(2)), 351, 361, 371(a), 374(a), 721, or 731;</content> </clause> <page identifier="/us/stat/95/217">95 STAT. 217</page> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>an acquisition (other than described in clause (i)) from a related person (as defined in subparagraph (D) of subsection (e)(4)); and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>an acquisition followed by a leaseback to the person from whom the property is acquired.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Property reacquired by the taxpayer</inline>.—</heading><content>Under regulations prescribed by the Secretary, recovery property which is disposed of and then reacquired by the taxpayer shall be treated for purposes of computing the deduction allowable under subsection (a) as if such property had not been disposed of.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Exception</inline>.—</heading><content>This paragraph shall not apply to any transaction to which subsection (e)(4) applies.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="11">“(11) </num> <heading><inline class="smallCaps">Special rules for cooperatives</inline>.—</heading><chapeau>In the case of a cooperative organization described in section 1381(a), the Secretary <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1381">26 USC 1381</ref>.</p></sidenote> may by regulations provide—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>for allowing allocation units to make separate elections under this section with respect to recovery property, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>for the allocation of the deduction allowable under subsection (a) among allocation units.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Public utility property</inline>.—</heading><content>The term ‘public utility property’ means property described in section 167(1)(3)(A).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Present class life</inline>.—</heading><content>The term ‘present class life’ means the class life (if any) which would be applicable with respect to any property as of January 1, 1981, under subsection (m) of section 167 (determined without regard to paragraph (4) thereof <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 221.</p></sidenote> and as if the taxpayer had made an election under such subsection).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Section 1245 class property</inline>.—</heading><content>The term ‘section 1245 class property’ means tangible property described in section 1245(a)(3) other than subparagraphs (C) and (D).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Section 1250 class property</inline>.—</heading><content>The term ‘section 1250 class property’ means property described in section 1250(c) and property described in section 1245(a)(3)(C).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Research and experimentation</inline>.—</heading><content>The term ‘research and experimentation’ has the same meaning as the term research or experimental has under section 174.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num> <heading><inline class="smallCaps">RRB property defined</inline>.—</heading><content>For purposes of this section, the term ‘RRB property’ means property which under the taxpayer’s method of depreciation before January 1, 1981, would have been depreciated using the retirement-replacement-betterment method.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num> <heading><inline class="smallCaps">Manufactured homes</inline>.—</heading><content>The term ‘manufactured home’ has the same meaning as in section 603(6) of the Housing and Community Development Act of 1974, which is 1250 class property <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5402">42 USC 5402</ref>.</p></sidenote> used as a dwelling unit.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num> <heading><inline class="smallCaps">Qualified coal utilization property</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘qualified coal utilization property’ means that portion of the unadjusted basis of coal utilization property which bears the same ratio (but not greater than 1) to such unadjusted basis as—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the Btu’s of energy produced by the powerplant or major fuel-burning installation before the conversion or replacement involving coal utilization property, bears to</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the Btu’s of energy produced by such powerplant or installation after such conversion or replacement.</content> </clause> </subparagraph> <page identifier="/us/stat/95/218">95 STAT. 218</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8">“Coal utilization property.”</p></sidenote><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘coal utilization property’ means—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><chapeau>a boiler or burner—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>the primary fuel for which is coal (including lignite), and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>which replaces an existing boiler or burner which is part of a powerplant or major fuel-burning installation and the primary fuel for which is oil or natural gas or any product thereof, and</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>equipment for converting an existing boiler or burner described in clause (i)(II) to a boiler or burner the primary fuel for which will be coal.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Powerplant and major fuel-burning installation</inline>.—</heading><content>The terms ‘powerplant’ and ‘major fuel-burning installation’ have the meanings given such terms by paragraphs (7) and (10) of section 103(a) of the Powerplant and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8302">42 USC 8302</ref>.</p></sidenote> Industrial Fuel Use Act of 1978, respectively.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Existing boiler or burner</inline>.—</heading><content>The term ‘existing boiler or burner’ means a boiler or burner which was placed in service before January 1, 1981.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num> <heading><inline class="smallCaps">Replacement of existing boiler or burner</inline>.—</heading><chapeau>A boiler or burner shall be treated as replacing a boiler or burner if the taxpayer certifies that the boiler or burner which is to be replaced—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>was used during calendar year 1980 for more than 2,000 hours of full load peak use (or equivalent thereof), and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>will not be used for more than 2,000 hours of such use during any 12-month period after the boiler or burner which is to replace such boiler or burner is placed in service.</content> </clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="h">“(h) </num> <heading><inline class="smallCaps">Special Rules for Recovery Property Classes</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Certain horses</inline>.—</heading><chapeau>The term ‘3-year property’ includes—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>any race horse which is more than 2 years old at the time such horse is placed in service; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>any other horse which is more than 12 years old at such time.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Railroad tank cars</inline>.—</heading><content>The term ‘10-year property’ includes railroad tank cars.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Manufactured homes</inline>.—</heading><content>The term ‘10-year property’ includes manufactured homes.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Qualified coal utilization property</inline>.—</heading><content>The term ‘10-year property’ includes qualified coal utilization property which is not 3-year property, 5-year property, or 10-year property (determined without regard to this paragraph).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Application with other classes</inline>.—</heading><content>Any property which is treated as included in a class or property by reason of this subsection shall not be treated as property included in any other class.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">Cross Reference</inline>.—</heading><content> <p class="indent1 firstIndent1 fontsize10">“<b>For special rules with respect to certain gain derived from disposition of recovery property, see sections 1245 and 1250.</b>”</p> </content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Single Purpose Agricultural or Horticultural Structures and Petroleum Product Storage Facilities Treated as Section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1245">26 USC 1245</ref>.</p></sidenote> 1245 Property</inline>.—</heading><content>Paragraph (3) of section 1245(a) (defining section 1245 property) is amended by striking out “<quotedText>or</quotedText>” at the end of <page identifier="/us/stat/95/219">95 STAT. 219</page> subparagraph (C), by striking out the period at the end of subparagraph (D), and by adding at the end thereof the following new subparagraphs: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>a single purpose agricultural or horticultural structure (as defined in section 48(p)), or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num><content>a storage facility used in connection with the distribution of petroleum or any primary product of petroleum.”</content></subparagraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Repeal of Section 263(e)</inline>.—</heading><content>Subsection (e) of section 263 is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s263">26 USC 263</ref>.</p></sidenote> hereby repealed.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for part VI of subchapter B of chapter 1 is amended by inserting after the item relating to section 167 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 168.</designator> <label>Accelerated cost recovery system.”</label></referenceItem> </toc> </quotedContent> </content> </subsection> </section> <section><num value="202">SEC. 202. </num> <heading>ELECTION TO EXPENSE CERTAIN DEPRECIABLE BUSINESS ASSETS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 179 (relating to additional first-year <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s179">26 USC 179</ref>.</p></sidenote> depreciation allowance for small business) is amended to read as follows: <quotedContent> <section><num value="179">“SEC. 179. </num> <heading>ELECTION TO EXPENSE CERTAIN DEPRECIABLE BUSINESS ASSETS.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Treatment as Expenses</inline>.—</heading><content>A taxpayer may elect to treat the cost of any section 179 property as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which the section 179 property is placed in service.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Dollar Limitation</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The aggregate cost which may be taken into account under subsection (a) for any taxable year shall not exceed the following applicable amount: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If the taxable year begins in:</b></td> <td style="text-align:right; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The applicable amount is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1981</td> <td style="text-align:right; vertical-align:top">$0</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1982</td> <td style="text-align:right; vertical-align:top">5,000</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1983</td> <td style="text-align:right; vertical-align:top">5,000</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1984</td> <td style="text-align:right; vertical-align:top">7,500</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1985</td> <td style="text-align:right; vertical-align:top">7,500</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1986 or thereafter</td> <td style="text-align:right; vertical-align:top">10,000.</td> </tr> </tbody> </table> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Married individuals filing separately</inline>.—</heading><content>In the case of a husband and wife filing separate returns for a taxable year, the applicable amount under paragraph (1) shall be equal to 50 percent of the amount otherwise determined under paragraph (1).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Election</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>An election under this section for any taxable year shall—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>specify the items of section 179 property to which the election applies and the portion of the cost of each of such items which is to be taken into account under subsection (a), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>be made on the taxpayer’s return of the tax imposed by this chapter for the taxable year.</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">Such election shall be made in such manner as the Secretary may by regulations prescribe.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Election irrevocable</inline>.—</heading><content>Any election made under this section, and any specification contained in any such election, may not be revoked except with the consent of the Secretary.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Definitions and Special Rules</inline>.—</heading> <page identifier="/us/stat/95/220">95 STAT. 220</page> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Section 179 property</inline>.—</heading><content>For purposes of this section, the term ‘section 179 property’ means any recovery property which is section 38 property and which is acquired by purchase for use in a trade or business.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Purchase defined</inline>.—</heading><chapeau>For purposes of paragraph (1), the term ‘purchase’ means any acquisition of property, but only if—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the property is not acquired from a person whose relationship to the person acquiring it would result in the disallowance of losses under section 267 or 707(b) (but, in applying section 267 (b) and (c) for purposes of this section, paragraph (4) of section 267(c) shall be treated as providing that the family of an individual shall include only his spouse, ancestors, and lineal descendants),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the property is not acquired by one component member of a controlled group from another component member of the same controlled group, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><chapeau>the basis of the property in the hands of the person acquiring it is not determined—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>in whole or in part by reference to the adjusted basis of such property in the hands of the person from whom acquired, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>under section 1014(a) (relating to property acquired from a decedent).</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Cost</inline>.—</heading><content>For purposes of this section, the cost of property does not include so much of the basis of such property as is determined by reference to the basis of other property held at any time by the person acquiring such property.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Section not to apply to estates and trusts</inline>.—</heading><content>This section shall not apply to estates and trusts.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Section not to apply to certain noncorporate lessors</inline>.—</heading><content>This section shall not apply to any section 179 property <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 228.</p></sidenote> purchased by any person described in section 46(e)(3) unless the credit under section 38 is allowable with respect to such person for such property (determined without regard to this section).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num> <heading><inline class="smallCaps">Dollar limitation of controlled group</inline>.—</heading><chapeau>For purposes of subsection (b) of this section—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>all component members of a controlled group shall be treated as one taxpayer, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the Secretary shall apportion the dollar limitation contained in subsection (b)(1) among the component members of such controlled group in such manner as he shall by regulations prescribe.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num> <heading><inline class="smallCaps">Controlled group defined</inline>.—</heading><content>For purposes of paragraphs (2) and (6), the term ‘controlled group’ has the meaning assigned to it by section 1563(a), except that, for such purposes, the phrase ‘more than 50 percent’ shall be substituted for the phrase ‘at least 80 percent’ each place it appears in section 1563(a)(1).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num> <heading><inline class="smallCaps">Dollar limitation in case of partnerships</inline>.—</heading><content>In the case of a partnership, the dollar limitation contained in subsection (b)(1) shall apply with respect to the partnership and with respect to each partner.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">“(9) </num> <heading><inline class="smallCaps">Coordination with section 38</inline>.—</heading><content>No credit shall be allowed under section 38 with respect to any amount for which a deduction is allowed under subsection (a).”</content></paragraph> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1245">26 USC 1245</ref>.</p></sidenote><inline class="smallCaps">Recapture Rule</inline>.—</heading><chapeau>Subsection (a) of section 1245 (relating to gains from dispositions from certain depreciable property) is amended—</chapeau> <page identifier="/us/stat/95/221">95 STAT. 221</page> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>169, 184</quotedText>” each place it appears in paragraph (2) and inserting in lieu thereof “<quotedText>169, 179, 184</quotedText>”,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>section 190</quotedText>” in paragraph (2) and inserting in lieu thereof “<quotedText>section 179, 190</quotedText>”, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out “<quotedText>169, 185</quotedText>” in paragraphs (2)(D) and (3)(D) and inserting in lieu thereof “<quotedText>169, 179, 185</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(c) </num> <heading><inline class="smallCaps">Installment Sales</inline>.—</heading><content>Section 453 (relating to the installment <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s453">26 USC 453</ref>.</p></sidenote> method) is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">Application With Section 179</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of an installment sale of section 179 property, subsection (a) shall not apply, and for purposes of this title, all payments to be received shall be deemed received in the year of disposition.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><content>Paragraph (1) shall apply only to the extent of the amount allowed as a deduction under section 179 with respect to the section 179 property.”</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Technical Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>Paragraph (1) of section 263(a) (relating to capital expenditures) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s263">26 USC 263</ref>.</p></sidenote> is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking “<quotedText>or</quotedText>” at the end of subparagraph (F);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out the period at the end of subparagraph (G) and inserting in lieu thereof a semicolon and “or”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by adding at the end thereof the following new subparagraph: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="H">“(H) </num><content>expenditures for which a deduction is allowed under section 179.”</content></subparagraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Subparagraph (A) of section 1033(g)(3) (relating to condemnation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1033">26 USC 1033</ref>.</p></sidenote> of real property held for productive use in trade or business or for investment) is amended by striking out “<quotedText>(relating to additional first-year depreciation allowance for small business)</quotedText>” and inserting in lieu thereof “<quotedText>(relating to election to expense certain depreciable business assets)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The table of sections for part VI of subchapter B of chapter 1 is amended by striking out the item relating to section 179 and inserting in lieu thereof the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 179.</designator> <label>Election to expense certain depreciable business assets.”</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> </section> <section><num value="203">SEC. 203. </num> <heading>AMENDMENTS RELATED TO DEPRECIATION.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Recovery Deduction Treated as Depreciation</inline>.—</heading><content>Subsection (a) of section 167 (relating to depreciation) is amended by adding <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s167">26 USC 167</ref>.</p></sidenote> the end thereof the following new sentence: “<quotedText>In the case of recovery property (within the meaning of section 168), the deduction allowable <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 204.</p></sidenote> under section 168 shall be deemed to constitute the reasonable allowance provided by this section, except with respect to that portion of the basis of such property to which subsection (k) applies.</quotedText>”</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Termination of Class Life System</inline>.—</heading><content>Subsection (m) of section 167 (relating to class lives) is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Termination</inline>.—</heading><content>This subsection shall not apply with respect to recovery property (within the meaning of section 168) placed in service after December 31, 1980.”</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Retirement—Replacement—Betterment Method of Depreciation</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Repeal of section 167(r)</inline>.—</heading><content>Section 167 (relating to depreciation) is amended by striking out subsection (r) and redesignating subsection (s) as subsection (r).</content></paragraph> <page identifier="/us/stat/95/222">95 STAT. 222</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s167">26 USC 167 note</ref>.</p></sidenote><inline class="smallCaps">Change in method of accounting</inline>.—</heading><content>Sections 446 and 481 of the Internal Revenue Code of 1954 shall not apply to the change in the method of depreciation to comply with the provisions of this subsection.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s167">26 USC 167 note</ref>.</p> <p class="indent0 firstIndent0 fontsize8"><i>Ante</i> p. 203.</p></sidenote><inline class="smallCaps">Transitional rule</inline>.—</heading><content>The adjusted basis of RRB property (as defined in section 168(g)(6) of such Code) as of December 31, 1980, shall be depreciated using a useful life of no less than 5 years and no more than 50 years and a method described in section 167(b) of such Code, including the method described in section 167(b)(2) of such Code, switching to the method described in section 167(b)(3) of such Code at a time to maximize the deduction.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Agreement as to Useful Life on Which Depreciation Rate Is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s167">26 USC 167</ref>.</p></sidenote> Based</inline>.—</heading><content>Subsection (d) of section 167 is amended by adding at the end thereof the following: “<quotedText>This subsection shall not apply with respect to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s167">26 USC 167 note</ref>.</p></sidenote> recovery property defined in section 168.</quotedText>”</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>The Secretary of Health and Human Services is not required to apply any provision of the Internal <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1">26 USC 1 <i>et seq</i></ref>.</p></sidenote> Revenue Code of 1954, as amended, in calculating depreciation (for the purpose of determining any cost under a program administered by the Secretary), unless a provision of law requires so expressly.</content> </subsection> </section> <section><num value="204">SEC. 204. </num> <heading>RECAPTURE ON DISPOSITION OF RECOVERY PROPERTY.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1245">26 USC 1245</ref>.</p></sidenote><inline class="smallCaps">General Rule</inline>.—</heading><content>Paragraph (1) of section 1245(a) (relating to ordinary income) is amended by inserting after “<quotedText>December 31, 1962,</quotedText>” the following “or section 1245 recovery property is disposed of after December 31, 1980,”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Recomputed Basis</inline>.—</heading><chapeau>Paragraph (2) of section 1245(a) (relating to recomputed basis) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>or</quotedText>” at the end of subparagraph (C),</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting “<quotedText>, or</quotedText>” at the end of subparagraph (D), and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by inserting immediately after subparagraph (D) the following new subparagraph: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>with respect to any section 1245 recovery property, the adjusted basis of such property recomputed by adding thereto all adjustments attributable to periods for which a deduction is allowed under section 168(a) (as added by the Economic Recovery Tax Act of 1981) with respect to such property,”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Section 1245 Recovery Property Defined</inline>.—</heading><content>Subsection (a) of section 1245 is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Section 1245 recovery property</inline>.—</heading><chapeau>For purposes of this section, the term ‘section 1245 recovery property’ means recovery property (within the meaning of section 168) other than—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>15-year real property which is residential rental property (as defined in section 167(j)(2)(B)),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>15-year real property which is described in section 168(f)(2),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>15-year real property with respect to which an election under subsection (b)(3) of section 168 to use a different recovery percentage is in effect, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>15-year real property which is described in clause (i), (ii), (iii), or (iv) of section 1250(a)(1)(B).</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">If only a portion of a building (or other structure) is section 1245 recovery property, gain from any disposition of such building (or other structure) shall be allocated first to the portion of the building (or other structure) which is section 1245 recovery <page identifier="/us/stat/95/223">95 STAT. 223</page> property (to the extent of the amount which may be treated as ordinary income under this section) and then to the portion of the building or other structure which is not section 1245 recovery property.”</continuation> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Qualified Leased Property</inline>.—</heading><content>Subsection (a) of section 1245 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1245">26 USC 1245</ref>.</p></sidenote> (relating to recomputed basis) is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num> <heading><inline class="smallCaps">Special rule for qualified leased property</inline>.—</heading><chapeau>In any case in which—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the lessor of qualified leased property (within the meaning of section 168(f)(8)(D)) is treated as the owner of <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 203.</p></sidenote> such property for purposes of this subtitle under section 168(f)(8), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the lessee acquires such property,</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">the recomputed basis of the lessee under this subsection shall be determined by taking into account any adjustments which would be taken into account in determining the recomputed basis of the lessor.”</continuation> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <heading><inline class="smallCaps">Application With Section 1250</inline>.—</heading><content>Subsection (d) of section 1250 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1250">26 USC 1250</ref>.</p></sidenote> (relating to exceptions and limitations) is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="11">“(11) </num> <heading><inline class="smallCaps">Section 1245 recovery property</inline>.—</heading><content>Subsection (a) shall not apply to the disposition of property which is section 1245 recovery property (as defined in section 1245(a)(5)).” <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 222.</p></sidenote></content></paragraph> </quotedContent> </content> </subsection> </section> <section><num value="205">SEC. 205. </num> <heading>MINIMUM TAX TREATMENT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (a) of section 57 (defining items of tax <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s57">26 USC 57</ref>.</p></sidenote> preference) is amended by inserting immediately after paragraph (11) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="12">“(12) </num> <heading><inline class="smallCaps">Accelerated cost recovery deduction</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>With respect to each recovery property (other than 15-year real property) which is subject to a lease, the amount (if any) by which the deduction allowed under section 168(a) for the taxable year exceeds the deduction which would have been allowable for the taxable year had the property been depreciated using the straight-line method (with a half-year convention and without regard to salvage value) and a recovery period determined in accordance with the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of:</b></td> <td style="text-align:right; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The recovery period is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 3-year property</td> <td style="text-align:right; vertical-align:top">5 years.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 5-year property</td> <td style="text-align:right; vertical-align:top">8 years.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 10-year property</td> <td style="text-align:right; vertical-align:top">15 years.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 15-year public utility property</td> <td style="text-align:right; vertical-align:top">22 years.</td> </tr> </tbody> </table> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">15-year real property</inline>.—</heading><content>With respect to each recovery property which is 15-year real property, the amount (if any) by which the deduction allowed under section 168(a) for the taxable year exceeds the deduction which would have been allowable for the taxable year had the property been depreciated using a 15-year period and the straight-line method (without regard to salvage value).</content></subparagraph> <page identifier="/us/stat/95/224">95 STAT. 224</page> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Paragraphs (2) and (3) shall not apply</inline>.—</heading><content>Paragraphs (2) and (3) shall not apply to recovery property.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><content>For purposes of this paragraph, the terms ‘3-year property’, ‘5-year property’, ‘10-year property’, ‘15-year public utility property’, ‘15-year real property’, and ‘recovery property’, shall have the same meanings given <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 203.</p></sidenote> such terms under section 168.”</content></subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>The next to the last sentence of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s57">26 USC 57</ref>.</p></sidenote> section 57(a) is amended by striking out “<quotedText>and (11)</quotedText>” and inserting in lieu thereof “<quotedText>, (11), and (12)</quotedText>”.</content> </subsection> </section> <section><num value="206">SEC. 206. </num> <heading>EARNINGS AND PROFITS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s312">26 USC 312</ref>.</p></sidenote><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (k) of section 312 (relating to earnings and profits) is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Exception for recovery and section 179 property</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">Recovery property</inline>.—</heading><content class="inline"> <p class="inline">Except as provided in subparagraphs (B) and (C), in the case of recovery property (within the meaning of section 168), the adjustment to earnings and profits for depreciation for any taxable year shall be the amount determined under the straight-line method (using a half year convention in the case of property other than the 15-year real property and without regard to salvage value) and using a recovery period determined in accordance with the following table:</p> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of:</b></td> <td style="text-align:right; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The applicable recovery period is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 3-year property</td> <td style="text-align:right; vertical-align:top">5 years.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 5-year property</td> <td style="text-align:right; vertical-align:top">12 years.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 10-year property</td> <td style="text-align:right; vertical-align:top">25 years.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 15-year real property</td> <td style="text-align:right; vertical-align:top">35 years.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 15-year public utility property</td> <td style="text-align:right; vertical-align:top">35 years.</td> </tr> </tbody> </table> <p class="indent2 firstIndent0 fontsize10">For purposes of this subparagraph, no adjustment shall be allowed in the year of disposition (except with respect to 15-year real property), and rules similar to the rules under the next to the last sentence of section 168(b)(2)(A) and section 168(b)(2)(B) shall apply.</p> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Treatment of amounts deductible under section 179</inline>.—</heading><content>For purposes of computing the earnings and profits of a corporation, any amount deductible under section 179 shall be allowed as a deduction ratably over the period of 5 years (beginning with the year for which such amount is <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 219.</p></sidenote> deductible under section 179).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Flexibility</inline>.—</heading><content>In any case where a different recovery percentage is elected under section 168(b)(3) or (f)(2)(C) based on a recovery period longer than the recovery period provided in subparagraph (A), the adjustment to earnings and profits shall be based on such longer period under rules similar to those provided in subparagraph (A).”</content></subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Foreign Corporations</inline>.—</heading><chapeau>Paragraph (4) of section 312(k), as redesignated by subsection (a), is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>paragraph (1)</quotedText>” and inserting in lieu thereof “<quotedText>paragraphs (1) and (3)</quotedText>”, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding at the end thereof the following new sentence: “<quotedText>In determining the earnings and profits of such corporation in the case of recovery property (within the meaning of section 168), the rules of section 168(f)(2) shall apply.</quotedText>”</content></paragraph> </subsection> <page identifier="/us/stat/95/225">95 STAT. 225</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Subsection (a) of section 964 (relating <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s964">26 USC 964</ref>.</p></sidenote> to miscellaneous provisions involving controlled foreign corporations) is amended by striking out “<quotedText>section 312(k)(3)</quotedText>” and inserting in lieu thereof “<quotedText>section 312(k)(4)</quotedText>”.</content> </subsection> </section> <section><num value="207">SEC. 207. </num> <heading>EXTENSION OF CARRYOVER PERIOD FOR NET OPERATING LOSSES AND CERTAIN CREDITS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Net Operating Loss</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subparagraph (B) of section 172(b)(1) (relating <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s172">26 USC 172</ref>.</p></sidenote> to net operating loss carryovers) is amended by striking out “<quotedText>7</quotedText>” and inserting in lieu thereof “<quotedText>15</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><chapeau>Subparagraph (C) of section 172(b)(1) is amended—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by inserting “<quotedText>and before January 1, 1976,</quotedText>” after “<quotedText>1955,</quotedText>”, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by striking out the last sentence thereof.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><clause class="inline"><num value="i">(i) </num><content>Subparagraph (E)(i)(II) of section 172(b)(1) is amended <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3464">94 Stat. 3464</ref>.</p></sidenote> by striking out “<quotedText>8</quotedText>” and inserting in lieu thereof “<quotedText>15</quotedText>”.</content> </clause> <clause class="indent2 firstIndent1 fontsize10"><num value="ii">(ii) </num><content>Clause (ii) of section 172(b)(1)(E) is amended to read as follows: <quotedContent> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>In the case of any net operating loss for a taxable year which is not a REIT year, such loss shall not be carried back to any taxable year which is a REIT year.”</content> </clause> </quotedContent> </content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><chapeau>Paragraph (3) of section 172(g) (relating to certain regulated transportation corporations) is amended—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by inserting “<quotedText>and</quotedText>” at the end of subparagraph (A),</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by striking out “<quotedText>; and</quotedText>” at the end of subparagraph (B) and inserting in lieu thereof a period, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>by striking out subparagraph (C).</content> </clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Certain Losses of Life Insurance Companies</inline>.—</heading><content>Paragraph (1) of section 812(b) (relating to operations loss carrybacks and carryovers <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s812">26 USC 812</ref>.</p></sidenote> of life insurance companies) and paragraph (1) of section 825(d) (relating to unused loss carrybacks and carryovers of mutual <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s825">26 USC 825</ref>.</p></sidenote> life insurance companies) are each amended by striking out “<quotedText>7</quotedText>” and inserting in lieu thereof “<quotedText>15</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Carryover of Tax Credits</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Investment credit and win credit</inline>.—</heading><content>Paragraph (1) of section 46(b) (relating to carryback and carryovers of unused <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s46">26 USC 46</ref>.</p> <p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s50A">26 USC 50A</ref>.</p></sidenote> investment credits) and paragraph (1) of section 50A(b) (relating to carryback and carryover of unused work incentive program credit) are each amended by adding at the end thereof the following new sentence: “<quotedText>In the case of an unused credit for an unused credit year ending after December 31, 1973, this paragraph shall be applied by substituting ‘15’ for ‘7’ in subparagraph (B), and by substituting 18’ for ‘10‘, and ‘17’ for ‘9’ in the second sentence.</quotedText>”</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">New employee credit</inline>.—</heading><chapeau>Paragraph (1) of section 53(c) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s53">26 USC 53</ref>.</p></sidenote> (relating to carrybacks and carryovers of new employee credit) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>7</quotedText>” in subparagraph (B) and inserting in lieu thereof “<quotedText>15</quotedText>”,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>10</quotedText>” and inserting in lieu thereof “<quotedText>18</quotedText>”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out “<quotedText>9</quotedText>” and inserting in lieu thereof “<quotedText>17</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">Alcohol fuels credit</inline>.—</heading><chapeau>Subparagraph (A) of section 44E(e)(2) (relating to carryover of unused credit) is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s44E">26 USC 44E</ref>.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>7</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>15</quotedText>”, and</content></subparagraph> <page identifier="/us/stat/95/226">95 STAT. 226</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>6</quotedText>” and inserting in lieu thereof “<quotedText>14</quotedText>”.</content></subparagraph> </paragraph> </subsection> </section> <section><num value="208">SEC. 208. </num> <heading>CARRYOVER OF RECOVERY ATTRIBUTE IN SECTION 381 TRANSACTIONS.</heading> <content><sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 246.</p> <p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s381">26 USC 381</ref>.</p></sidenote> Subsection (c) of section 381 is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="28">“(28) </num> <heading><inline class="smallCaps">Method of computing recovery allowance for recovery property</inline>.—</heading><content>The acquiring corporation shall be treated as the distributor or transferor corporation for purposes of computing <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 203.</p></sidenote> the deduction allowable under section 168(a) on property acquired in a distribution or transfer with respect to so much of the basis in the hands of the acquiring corporation as does not exceed the adjusted basis in the hands of the distributor or transferor corporation.”</content></paragraph> </quotedContent> </content> </section> <section><num value="209">SEC. 209. </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s168">26 USC 168 note</ref>.</p></sidenote>EFFECTIVE DATES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Except as otherwise provided in this section, the amendments made by this subtitle shall apply to property placed in service after December 31, 1980, in taxable years ending after such date.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Special Rule for RRB Property</inline>.—</heading><content>The amendment made by subsection (c) of section 203 shall take effect on January 1, 1981, and shall apply with respect to taxable years ending after such date.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Special Rule for Carryovers</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><subparagraph class="inline"><num value="A">(A) </num><content>Except as provided in subparagraph (B), the amendments made by subsections (a) and (b) of section 207 shall apply to net operating losses in taxable years ending after December 31, 1975.</content></subparagraph> <subparagraph class="indent1 firstIndent1 fontsize10"><num value="B">(B) </num><content>The amendments made by subparagraph (B)(i) of section 207(a)(2) shall take effect as if they had been included in the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3464">94 Stat. 3464</ref>.</p> <p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s172">26 USC 172</ref>.</p></sidenote> amendments made by section 1(a) of Public Law 96–595; except that the amendments made by such subparagraph shall apply only to net operating losses in taxable years ending after December 31, 1972.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>The amendments made by subsection (c)(1) of section 207 shall apply to unused credit years ending after December 31, 1973.</content></subparagraph> <subparagraph class="indent1 firstIndent1 fontsize10"><num value="B">(B) </num><content>The amendment made by subsection (c)(2) of section 207 shall apply to unused credit years beginning after December 31, 1976.</content></subparagraph> <subparagraph class="indent1 firstIndent1 fontsize10"><num value="C">(C) </num><content>The amendments made by subsection (c)(3) of section 207 shall apply to unused credit years ending after September 30, 1980.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s168">26 USC 168 note</ref>.</p></sidenote><inline class="smallCaps">Special Rule for Public Utilities</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Transitional rule for normalization requirements</inline>.—</heading><content>If, by the terms of the applicable rate order last entered before the date of the enactment of this Act by a regulatory commission having appropriate jurisdiction, a regulated public utility would (but for this provision) fail to meet the requirements of section 168(e)(3) of the Internal Revenue Code of 1954 with respect to property because, for an accounting period ending after December 31, 1980, such public utility used a method of accounting other than a normalization method of accounting, such regulated public utility shall not fail to meet such requirements if, by the terms of its first rate order determining cost of service with respect to such property which becomes effective after the date of the enactment of this Act and on or before January 1, 1983, such regulated public utility uses a normalization method of account-<page identifier="/us/stat/95/227">95 STAT. 227</page>ing. This provision shall not apply to any rate order which, under the rules in effect before the date of the enactment of this Act, required a regulated public utility to use a method of accounting with respect to the deduction allowable by section 167 which, under section 167(1), it was not permitted to use.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Transitional rule for requirements of section 46(f)</inline>.—</heading><content>If, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s46">26 USC 46 note</ref>.</p></sidenote> by the terms of the applicable rate order last entered before the date of the enactment of this Act by a regulatory commission having appropriate jurisdiction, a regulated public utility would (but for this provision) fail to meet the requirements of paragraph (1) or (2) of section 46(f) of the Internal Revenue Code of 1954 with respect to property for an accounting period ending after December 31, 1980, such regulated public utility shall not fail to meet such requirements if, by the terms of its first rate order determining cost of service with respect to such property which becomes effective after the date of the enactment of this Act and on or before January 1, 1983, such regulated public utility meets such requirements. This provision shall not apply to any rate order which, under the rules in effect before the date of the enactment of this Act, was inconsistent with the requirements of paragraph (1) or (2) of section 46(f) of such Code (whichever would have been applicable).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">Clarification</inline>.—</heading><content>Subparagraph (C) of section 167(l)(3) is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s167">26 USC 167</ref>.</p></sidenote> amended by inserting “<quotedText>and which is placed in service before January 1, 1981</quotedText>” immediately before the period at the end thereof.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <heading><inline class="smallCaps">Authority to prescribe interim regulations with respect <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s168">26 USC 168 note</ref>.</p></sidenote> to normalization</inline>.—</heading><content>Until Congress acts further, the Secretary of the Treasury or his delegate may prescribe such interim regulations as may be necessary or appropriate to determine whether the requirements of section 168(e)(3)(B) of the Internal Revenue Code of 1954 have been met with respect to property <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 203.</p></sidenote> placed in service after December 31, 1980.</content></paragraph> </subsection> </section> </subtitle> <subtitle><num value="B">Subtitle B—</num><heading>Investment Tax Credit Provisions</heading> <section><num value="211">SEC. 211. </num> <heading>MODIFICATION OF INVESTMENT TAX CREDIT TO REFLECT ACCELERATED COST RECOVERY.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Applicable Percentage</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (c) of section 46 (relating to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s46">26 USC 46</ref>.</p></sidenote> qualified investment) is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num> <heading><inline class="smallCaps">Applicable percentage for recovery property</inline>.—</heading><chapeau>Notwithstanding paragraph (2), the applicable percentage for purposes of paragraph (1) shall be—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>in the case of 15-year public utility, 10-year, or 5-year property (within the meaning of section 168(c)), 100 percent, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>in the case of 3-year property (within the meaning of section 168(c)), 60 percent.</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">For purposes of subparagraph (A), RRB replacement property (within the meaning of section 168(f)(3)(B)) shall be treated as 5-year property.”</continuation> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Subsection (a) of section 48 (defining section 38 property) is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s48">26 USC 48</ref>.</p></sidenote> amended by striking out paragraph (9).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Revision of Progress Expenditure Rules</inline>.—</heading> <page identifier="/us/stat/95/228">95 STAT. 228</page> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s46">26 USC 46</ref>.</p></sidenote><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (1) of section 46(d) (defining qualified progress expenditures) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Increase in qualified investment</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of any taxpayer who has made an election under paragraph (6), the amount of the qualified investment of such taxpayer for the taxable year (determined under subsection (c) without regard to this subsection) shall be increased by an amount equal to the aggregate of the applicable percentage of each qualified progress expenditure for the taxable year with respect to progress expenditure property.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Applicable percentage</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">Recovery property</inline>.—</heading><content>For purposes of subparagraph (A), the applicable percentage for recovery <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 203.</p></sidenote> property (within the meaning of section 168) shall be determined under subsection (c)(7) based on a reasonable expectation of what the character of the property will be when it is placed in service.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Nonrecovery property</inline>.—</heading><content>For purposes of subparagraph (A), the applicable percentage for property which is not recovery property (within the meaning of section 168) shall be determined under subsection (c)(2) based on a reasonable expectation of what the useful life of the property will be when it is placed in service.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num> <heading><inline class="smallCaps">Application on basis of facts known</inline>.—</heading><content>Clauses (i) and (ii) shall be applied on the basis of the facts known at the close of the taxable year of the taxpayer in which the expenditure is made.”</content> </clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Clause (ii) of section 46(d)(2)(A) (defining progress expenditure property) is amended by striking out “<quotedText>having a useful life of 7 years or more</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Petroleum Product Storage Facilities</inline>.—</heading><chapeau>Paragraph (1) of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s48">26 USC 48</ref>.</p></sidenote> section 48(a) (defining section 38 property) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out the period at the end of subparagraph (F) and inserting in lieu thereof “<quotedText>, or</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting immediately after subparagraph (F) the following new subparagraph: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="G">“(G) </num><content>a storage facility used in connection with the distribution of petroleum or any primary product of petroleum.”</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Technical Amendment Relating to Noncorporate Lessors</inline>.—</heading><content>Paragraph (3) of section 46(e) (relating to limitations on noncorporate lessors) is amended by adding at the end thereof the following new sentence: “<quotedText>For purposes of subparagraph (B), in the case of any recovery property (within the meaning of section 168), the useful life shall be the present class life for such property (as defined in section 168(g)(2)).</quotedText>”</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>The heading and so much of paragraph (2) of section 46(c) as precedes the table is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Applicable percentage in certain cases</inline>.—</heading><content>Except as provided in paragraphs (3), (6), and (7), the applicable percentage for purposes of paragraph (1) for any property shall be determined under the following table:”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Subparagraph (A) of section 46(c)(6) (relating to special rules for commuter highway vehicles) is amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Notwithstanding paragraph (2) or (3), in the case of a commuter highway vehicle the useful life of which is 3 years or more, or which is recovery property <page identifier="/us/stat/95/229">95 STAT. 229</page> (within the meaning of section 168), the applicable percentage for purposes of paragraph (1) shall be 100 percent.”</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Subparagraph (C) of section 48(l)(2) (defining energy property) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s48">26 USC 48</ref>.</p></sidenote> is amended by inserting before the period at the end thereof “<quotedText>or which is recovery property (within the meaning of section 168)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>The second sentence of section 48(a)(1) (defining section 38 property) is amended by striking out “<quotedText>includes only property</quotedText>” and inserting in lieu thereof “<quotedText>includes only recovery property (within the meaning of section 168 without regard to any useful <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 203.</p></sidenote> life) and any other property</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <heading><inline class="smallCaps">Application of At Risk Rules to Investment Credit</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (c) of section 46 (relating to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s46">26 USC 46</ref>.</p></sidenote> qualified investment) is amended by adding at the end thereof the following new paragraphs: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num> <heading><inline class="smallCaps">Limitation to amount at risk</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of new or used section 38 property which—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>is placed in service during the taxable year by a taxpayer described in section 465(a)(1), and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>is used in connection with an activity with respect to which any loss is subject to limitation under section 465,</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">the basis of such property for purposes of paragraph (1) shall not exceed the amount the taxpayer is at risk with respect to such property as of the close of such taxable year.</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Amount at risk</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in clause (ii), the term ‘at risk’ has the same meaning given such term by section 465(b) (without regard to paragraph (5) thereof).</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Certain financing</inline>.—</heading><chapeau>In the case of a taxpayer who at all times is at risk (determined without regard to this clause) in an amount equal to at least 20 percent of the basis (determined under section 168(d)(1)(A)(i)) of property described in subparagraph (A) and who acquired such property from a person who is not a related person, such taxpayer shall for purposes of this paragraph be considered at risk with respect to any amount borrowed in connection with such property (other than convertible debt) to the extent that such amount—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>is borrowed from a qualified person, or</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>represents a loan from any Federal, State, or local government or instrumentality thereof, or is guaranteed by, any Federal, State, or local government.</content> </subclause> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Special rule for partnerships and subchapter s corporations</inline>.—</heading><content>In the case of any partnership or electing small business corporation (within the meaning of section 1371(b)), any amount treated as at risk under subparagraph (B)(ii) shall be allocated among the partners or shareholders (and treated as an amount at risk with respect to such persons) in the same manner as the credit allowable by section 38.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Qualified person</inline>.—</heading><chapeau>For purposes of this paragraph, the term ‘qualified person’ means any person—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><chapeau>which—</chapeau> <page identifier="/us/stat/95/230">95 STAT. 230</page> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>is an institution described in clause (i), (ii), or (iii) of subparagraph (A) or subparagraph (B) of <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, pp. 267, 270.</p></sidenote> section 128(c)(2) or an insurance company to which subchapter L applies, or</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>is a pension trust qualified under section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s401">26 USC 401</ref>.</p></sidenote> 401(a) or a person not described in subclause (I) and which is actively and regularly engaged in the business of lending money,</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>which is not a related person with respect to the taxpayer,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>which is not a person who receives a fee with respect to the taxpayer’s investment in property described in subparagraph (A) or a related person to such person, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>which is not a person from which the taxpayer acquired the property described in subparagraph (A) or a related person to such person.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num> <heading><inline class="smallCaps">Related person</inline>.—</heading><content>For purposes of this paragraph, the term ‘related person’ has the same meaning as such term <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 203.</p></sidenote> is used in section 168(e)(4), except that in applying section 168(e)(4)(D)(i) in the case of a person described in subparagraph (D)(i)(II) of this paragraph, sections 267(b) and 707(b)(1) shall be applied by substituting ‘0 percent’ for ‘50 percent’.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num> <heading><inline class="smallCaps">Special rule for certain energy property</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The provisions of subparagraph (A) shall not apply to amounts borrowed with respect to qualified energy property (other than amounts described in subparagraph (B)).</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Qualified energy property</inline>.—</heading><chapeau>The term ‘qualified energy property’ means energy property to which (but for this subparagraph) subparagraph (A) applies and—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>which is described in clause (iii),</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>with respect to which the energy percentage determined under section 46(a)(2)(C) at the time such property is placed in service is greater than zero,</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="III">“(III) </num><content>with respect to which the taxpayer, as of the close of the taxable year in which the property is placed in service, is at risk (within the meaning of section 465(b) without regard to paragraph (5) thereof) in an amount equal to at least 25 percent of the basis of the property, and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="IV">“(IV) </num><content>with respect to which any nonrecourse financing (other than financing described in section 46(c)(8)(B)(ii)) in connection with such property consists of a level payment loan. For purposes of subclause (II), the energy percentage for property described in clause (iii)(V) shall be treated as being greater than zero during any period the energy percentage for property described in section 48(l)(14) is greater than zero.</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num> <heading><inline class="smallCaps">Property to which this subparagraph applies</inline>.—</heading><chapeau>Energy property is described in this clause if such property is—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>described in clause (ii), (iv), or (vii) or section 48(l)(2),</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>described in section 48(l)(15),</content> </subclause> <page identifier="/us/stat/95/231">95 STAT. 231</page> <subclause class="firstIndent1 fontsize10"><num value="III">“(III) </num><content>described in section 48(l)(3)(A)(iii) (but only to the extent such property is used for converting an alternate substance into alcohol for fuel purposes),</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="IV">“(IV) </num><content>described in clause (i) of section 48(l)(2)(A) (but only to the extent such property is also described in section 48(l)(3)(A) (viii) or (ix)), or</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="V">“(V) </num><content>property comprising a system for using the same energy source for the sequential generation of electrical power, mechanical shaft power, or both, in combination with steam, heat, or other forms of useful energy.</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num> <heading><inline class="smallCaps">Level payment loan defined</inline>.—</heading><content>The term ‘level payment loan’ means a loan in which each installment is substantially equal, a portion of each installment is attributable to the repayment of principal, and that portion is increased commensurate with decreases in the portion of the payment attributable to interest.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">“(9) </num> <heading><inline class="smallCaps">Subsequent increases in the taxpayer’s amount at risk with respect to the property</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If, at the close of a taxable year subsequent to the year in which property was placed in service, the amount which the taxpayer has at risk with respect to such property has increased (as determined under subparagraph (B)), such increase shall be taken into account as additional qualified investment in such property in accordance with subparagraph (C).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Increases to be taken into account</inline>.—</heading><content>For purposes of subparagraphs (A) and (C), the amount which a taxpayer has at risk with respect to the property shall be treated as increased by the sum of the cash and the fair market value of property (other than property with respect to which the taxpayer is not at risk) used during the taxable year to reduce the principal sum of any amount with respect to which the taxpayer is not at risk.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Manner in which taken into account</inline>.—</heading><content>For purposes of determining the amount of credit allowed under section 38 and the amount of credit subject to the early disposition rules under section 47, an increase in a taxpayer’s qualified investment in property (determined under subparagraph (B)) shall be deemed to be additional qualified investment made by the taxpayer in the year in which the property referred to in subparagraph (A) was first placed in service. However, the credit determined by taking into account the increase in qualified investment under this paragraph shall be considered a credit earned in the taxable year of such increase.”</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Recapture</inline>.—</heading><content>Section 47 (relating to certain dispositions of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s47">26 USC 47</ref>.</p></sidenote> section 38 property), is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Property Ceasing To Be at Risk</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If the taxpayer ceases to any extent to be at risk (within the meaning of section 46(c)(8)(B)) with respect to any <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 229.</p></sidenote> amount in connection with section 38 property, then the tax under this chapter for such taxable year shall be increased by an amount equal to the aggregate decrease in credits allowed under section 38 for all prior taxable years which would have resulted from substituting, in determining qualified investment, the amount determined under section 46(c)(8) with respect to such <page identifier="/us/stat/95/232">95 STAT. 232</page> property if, on the date the property was placed in service, the taxpayer had not been at risk with respect to the amount he ceased to be at risk to.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Certain transfers not treated as ceasing to be at risk</inline>.—</heading><content>If, after the 12-month period after the date on which a taxpayer borrows an amount from a qualified person (within the <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 229.</p></sidenote> meaning of section 48(c)(8)(D)) with respect to which such taxpayer is considered at risk under section 48(c)(8)(B), the qualified person transfers or agrees to transfer any evidence of such indebtedness to a person who is not a qualified person, then, for purposes of paragraph (1), the taxpayer shall not be treated as ceasing to be at risk with respect to such amount.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Special rules for certain energy property</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of the second taxable year following the taxable year in which any qualified energy property (within the meaning of section 46(c)(8)(E)) is placed in service by the taxpayer and any succeeding taxable year, the taxpayer, for purposes of paragraph (1), shall be treated as ceasing to be at risk with respect to such property for such taxable year in an amount equal to the credit recapture amount (if any).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Credit recapture amount</inline>.—</heading><chapeau>For purposes of this paragraph, the term ‘credit recapture amount’ means an amount equal to the excess (if any) of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the total amount of principal to be paid as of the close of any taxable year under a nonrecourse level payment loan (as defined in section 46(c)(8)(F)(iv) other than a loan described in section 46(c)(8)(B)(ii)) with respect to such property, over</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><chapeau>the sum of—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>the amount of principal actually paid as of the close of such taxable year, plus</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>the sum of the credit recapture amounts with respect to such property for all preceding taxable years.</content> </subclause> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Special rules for determining principal to be paid</inline>.—</heading><chapeau>For purposes of subparagraph (B)(i), in determining the amount of the principal to be paid under a level payment loan, such determination shall be made as if such loan was to be fully repaid by the end of a period equal to the earlier of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the present class life (as defined in section <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 203.</p></sidenote> 168(g)(2)) of the property or, if the property has no present class life, a similar period determined by the Secretary, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the period at the end of which full repayment is to occur under the terms of the loan.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Special rule for certain cumulative deficiencies</inline>.—</heading><chapeau>If the excess of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the amount of the total scheduled principal payments under a loan described in subparagraph (B)(i) as of the close of the taxable year, over</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the total principal actually paid under such loan as of the close of such taxable year,</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">is equal to or greater than the amount of such total scheduled payments for the 5-taxable year period ending with such taxable year, then, notwithstanding subparagraph (B), the credit recapture amount for such taxable year shall be equal to the principal remaining to be paid as of the close of <page identifier="/us/stat/95/233">95 STAT. 233</page> such taxable year over the sum of the credit recapture amounts with respect to such property for all preceding taxable years.</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num> <heading><inline class="smallCaps">Special rule for certain dispositions</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If any property which is held by the taxpayer and to which this paragraph applies is disposed of by the taxpayer, then for purposes of paragraph (1) and notwithstanding subparagraph (B), the credit recapture amount for the taxpayer shall be an amount equal to the unpaid principal on the loan described in subparagraph (B)(i) as of the date of disposition;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Assumptions, etc</inline>.—</heading><content>Any amount of the loan described in subparagraph (B)(i) which is assumed or taken subject to by any person shall be treated for purposes of clause (i) as not reducing unpaid principal with respect to such loan.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num> <heading><inline class="smallCaps">Application with subsection (a)</inline>.—</heading><content>The amount of any increase in tax under subsection (a) with respect to any property to which this paragraph applies shall be determined by reducing the qualified investment with respect to such property by the aggregate credit recapture amounts for all taxable years under this paragraph.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="G">“(G) </num> <heading><inline class="smallCaps">Additional interest</inline>.—</heading><content>In the case of any increase in tax under paragraph (1) by reason of the application of this paragraph, there shall be added to such tax interest on such tax (determined under section 6621) as if the increase in tax under paragraph (1) was for the taxable year in which the property was placed in service.”</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num> <heading><inline class="smallCaps">Amendment of Recapture Rules</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (a) of section 47 (relating to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s47">26 USC 47</ref>.</p></sidenote> certain dispositions, etc, of section 38 property) is amended by redesignating paragraphs (5), (6), and (7) as paragraphs (6), (7), and (8), respectively, and by inserting after paragraph (4) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Special rules for recovery property</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">General rule</inline>.—</heading><content>If, during any taxable year, section 38 recovery property is disposed of, or otherwise ceases to be section 38 property with respect to the taxpayer before the close of the recapture period, then, except as provided in subparagraph (D), the tax under this chapter for such taxable year shall be increased by the recapture percentage of the aggregate decrease in the credits allowed under section 38 for all prior taxable years which would have resulted solely from reducing to zero the qualified investment taken into account with respect to such property.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Recapture percentage</inline>.—</heading><content>For purposes of subparagraph (A), the recapture percentage shall be determined in accordance with the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td rowspan="2" style="text-align:center; border-top:1px solid black; border-bottom:1px solid black">“If the recovery property ceases to be section 38 property within—</td> <td colspan="2" style="text-align:center; border-top:1px solid black; border-bottom:1px solid black">The recapture percentage is:</td> </tr> <tr> <td style="text-align:center; border-bottom:1px solid black">For 15-year, 10-year, and 5-year property</td> <td style="text-align:center; border-bottom:1px solid black">For 3-year property</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes">One full year after placed in service</td> <td style="text-align:center; vertical-align:bottom">100</td> <td style="text-align:right; vertical-align:bottom">100</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes">One full year after the close of the period described in clause (i)</td> <td style="text-align:center; vertical-align:bottom">80</td> <td style="text-align:right; vertical-align:bottom">66</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes">One full year after the close of the period described in clause (ii)</td> <td style="text-align:center; vertical-align:bottom">60</td> <td style="text-align:right; vertical-align:bottom">33</td> </tr> </tbody> </table> <page identifier="/us/stat/95/234">95 STAT. 234</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td rowspan="2" style="text-align:center; border-top:1px solid black; border-bottom:1px solid black">“If the recovery property ceases to be section 38 property within—</td> <td colspan="2" style="text-align:center; border-top:1px solid black; border-bottom:1px solid black">The recapture percentage is:</td> </tr> <tr> <td style="text-align:center; border-bottom:1px solid black">For 15-year, 10-year, and 5-year property</td> <td style="text-align:center; border-bottom:1px solid black">For 3-year property</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes">One full year after the close of the period described in clause (iii)</td> <td style="text-align:center; vertical-align:bottom">40</td> <td style="text-align:right; vertical-align:bottom">0</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom; border-bottom:1px solid black" leaders="yes">One full year after the close of the period described in clause (iv)</td> <td style="text-align:center; vertical-align:bottom; border-bottom:1px solid black">20</td> <td style="text-align:right; vertical-align:bottom; border-bottom:1px solid black">0</td> </tr> </tbody> </table> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Property ceases to be progress expenditure property</inline>.—</heading><content>If, during any taxable year, any recovery property taken into account in determining qualified investment <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 228.</p></sidenote> under section 46(d)(1) ceases to be progress expenditure property (as determined under paragraph (3)) or becomes, with respect to the taxpayer, recovery property of a character other than that expected in determining the applicable percentage under section 46(d)(1)(B)(i), then the tax under this chapter for such taxable year shall be adjusted in accordance with regulations prescribed by the Secretary.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><content>The tax for the taxable year shall be increased under subparagraph (A) only with respect to the credits allowed under section 38 which were used to reduce tax liability. In the case of credits not so used to reduce tax liability, the carrybacks and carryovers under section 46(b) shall be appropriately adjusted.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num> <heading><inline class="smallCaps">Definitions and special rules</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">Section 38 recovery property</inline>.—</heading><content>For purposes of this paragraph, the term ‘section 38 recovery property’ means any section 38 property which is recovery property <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 203.</p></sidenote> (within the meaning of section 168).</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Recapture period</inline>.—</heading><content>For purposes of this paragraph, the term ‘recapture period’ means, with respect to any recovery property, the period consisting of the first full year after the property is placed in service and the 4 succeeding full years (the 2 succeeding full years in the case of 3-year property).</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num> <heading><inline class="smallCaps">Classification of property</inline>.—</heading><content>For purposes of this paragraph, property shall be classified as provided in section 168(c).</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num> <heading><inline class="smallCaps">Paragraph (1) not to apply</inline>.—</heading><content>Paragraph (1) shall not apply with respect to any recovery property.”</content> </clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Technical amendments</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s47">26 USC 47</ref>.</p></sidenote> <content class="inline">Subparagraph (D) of section 47(a)(3) is amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Coordination with paragraphs (1) and (5)</inline>.—</heading><content>If, after property is placed in service, there is a disposition or other cessation described in paragraph (1), or a disposition, cessation, or change in expected use described in paragraph (5), then paragraph (1) or (5), as the case may be, shall be applied as if any credit, which was allowable by reason of section 46(d) and which has not been required to be recaptured before such disposition, cessation, or change in use were allowable for the taxable year the property was placed in service.”</content></subparagraph> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Paragraph (6) of section 47(a) (as redesignated by paragraph (1) of this subsection) is amended by striking out “<quotedText>paragraph (1) or (3)</quotedText>” and inserting in lieu thereof “<quotedText>paragraph (1), (3), or (5)</quotedText>”.</content></subparagraph> <page identifier="/us/stat/95/235">95 STAT. 235</page> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>Subparagraph (B) of section 47(a)(7) (as redesignated by paragraph (1)) is amended by striking out “<quotedText>paragraph (5)</quotedText>” and inserting in lieu thereof “<quotedText>paragraph (6)</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num> <heading><inline class="smallCaps">Treatment of Certain Leased Rolling Stock</inline>.—</heading><content>Clause (ii) of section 48(a)(2)(B) is amended to read as follows: <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s48">26 USC 48</ref>.</p></sidenote> <quotedContent> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><chapeau>rolling stock which is used within and without the United States and which is—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>of a domestic railroad corporation providing transportation subject to subchapter I of chapter 105 of title 49, or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s10501">49 USC 10501</ref>.</p></sidenote></content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>of a United States person (other than a corporation described in subclause (I)) but only if the rolling stock is not leased to one or more foreign persons for periods aggregating more than 12 months in any 24-month period;”,</content> </subclause> </clause> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num> <heading><inline class="smallCaps">Effective Date</inline>.—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s46">26 USC 46 note</ref>.</p></sidenote></heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in this subsection, the amendments made by this section shall apply to property placed in service after December 31, 1980.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Progress expenditures</inline>.—</heading><content>The amendments made by subsection (b) shall apply to progress expenditures made after December 31, 1980.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">Petroleum storage facilities</inline>.—</heading><content>The amendments made by subsection (c) shall apply to periods after December 31, 1980, under rules similar to the rules under section 48(m).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <heading><inline class="smallCaps">Noncorporate lessors</inline>.—</heading><content>The amendments made by subsection (d) shall apply to leases entered into after June 25, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num> <heading><inline class="smallCaps">At risk rules</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The amendment made by subsection (f) shall not apply to—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>property placed in service by the taxpayer on or before February 18, 1981, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>property placed in service by the taxpayer after February 18, 1981, where such property is acquired by the taxpayer pursuant to a binding contract entered into on or before that date.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <heading><inline class="smallCaps">Binding contract</inline>.—</heading><content>For purposes of subparagraph (A)(ii), property acquired pursuant to a binding contract shall, under regulations prescribed by the Secretary, include property acquired in a manner so that it would have qualified as pretermination property under section 49(b) (as in effect before its repeal by the Revenue Act of 1978).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num> <heading><inline class="smallCaps">Leased rolling stock</inline>.—</heading><content>The amendment made by subsection (h) shall apply to taxable years beginning after December 31, 1980.</content></paragraph> </subsection> </section> <section><num value="212">SEC. 212. </num> <heading>INCREASE IN INVESTMENT TAX CREDIT FOR QUALIFIED REHABILITATION EXPENDITURES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Increase in Amount of Credit</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subparagraph (A) of section 46(a)(2) (relating <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s46">26 USC 46</ref>.</p></sidenote> to amount of investment tax credit) is amended by striking out “<quotedText>and</quotedText>” at the end of clause (ii), by striking out the period at the end of clause (iii), by inserting in lieu thereof “<quotedText>, and</quotedText>”, and by adding at the end thereof the following new clause: <quotedContent> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>in the case of that portion of the basis of any property which is attributable to qualified rehabilitation expenditures, the rehabilitation percentage.”.</content> </clause> </quotedContent> </content></paragraph> <page identifier="/us/stat/95/236">95 STAT. 236</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Rehabilitation percentage defined</inline>.—</heading><content>Paragraph (2) of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s46">26 USC 46</ref>.</p></sidenote> section 46(a) is amended by adding at the end thereof the following new subparagraph: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num> <heading><inline class="smallCaps">Rehabilitation percentage</inline>.—</heading><chapeau>For purposes of this paragraph—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of qualified rehabilitation expenditures with respect to a:</b></td> <td style="text-align:right; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The rehabilitation percentage is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 30-year building</td> <td style="text-align:right; vertical-align:top">15</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 40-year building</td> <td style="text-align:right; vertical-align:top">20</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> Certified historic structure</td> <td style="text-align:right; vertical-align:top">25.</td> </tr> </tbody> </table> </content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Regular and energy percentages not to apply</inline>.—</heading><content>The regular percentage and the energy percentage shall not apply to that portion of the basis of any property which is attributable to qualified rehabilitation expenditures.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num> <heading><inline class="smallCaps">Definitions</inline>.—</heading> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num> <heading><inline class="smallCaps">80-year building</inline>.—</heading><content>The term ‘30-year building’ means a qualified rehabilitated building other than a 40-year building and other than a certified historic structure.</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num> <heading><inline class="smallCaps">40-year building</inline>.—</heading><content>The term ‘40-year building’ means any building (other than a certified historic structure) which would meet the requirements of section 48(g)(1)(B) if ‘40’ were substituted for ‘30’ each place it appears in subparagraph (B) thereof.</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="III">“(III) </num> <heading><inline class="smallCaps">Certified historic structure</inline>.—</heading><content>The term ‘certified historic structure’ has the meaning given to such term by section 48(g)(3).”</content> </subclause> </clause> </subparagraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s48">26 USC 48</ref>.</p></sidenote><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Section 48(o) (defining certain credits) is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num> <heading><inline class="smallCaps">Rehabilitation investment credit</inline>.—</heading><content>The term ‘rehabilitation investment credit’ means that portion of the credit allowable by section 38 which is attributable to the rehabilitation percentage.”</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Qualified Rehabilitated Buildings and Expenditures</inline>.—</heading><content>Subsection (g) of section 48 (relating to special rules for qualified rehabilitated buildings) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="g">“(g) </num> <heading><inline class="smallCaps">Special Rules for Qualified Rehabilitated Buildings</inline>.—</heading><chapeau>For purposes of this subpart—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Qualified rehabilitated building defined</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘qualified rehabilitated building’ means any building (and its structural components)—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>which has been substantially rehabilitated,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>which was placed in service before the beginning of the rehabilitation, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>75 percent or more of the existing external walls of which are retained in place as external walls in the rehabilitation process.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">30 years must have elapsed singe construction</inline>.—</heading><content>In the case of a building other than a certified historic structure, a building shall not be a qualified rehabilitated building unless there is a period of at least 30 years between <page identifier="/us/stat/95/237">95 STAT. 237</page> the date the physical work on the rehabilitation began and the date the building was first placed in service.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Substantially rehabilitated defined</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of subparagraph (A)(i), a building shall be treated as having been substantially rehabilitated only if the qualified rehabilitation expenditures during the 24-month period ending on the last day of the taxable year exceed the greater of—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>the adjusted basis of such property, or</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>$5,000.</content> </subclause> <continuation class="indent3 firstIndent0 fontsize10">The adjusted basis of the property shall be determined as of the beginning of the first day of such 24-month period, or of the holding period of the property (within the meaning of section 1250(e)), whichever is later. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1250">26 USC 1250</ref>.</p></sidenote></continuation> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Special rule for phased rehabilitation</inline>.—</heading><content>In the case of any rehabilitation which may reasonably be expected to be completed in phases set forth in architectural plans and specifications completed before the rehabilitation begins, clause (i) shall be applied by substituting ‘60-month period’ for ‘24-month period’.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num> <heading><inline class="smallCaps">Lessees</inline>.—</heading><content>The Secretary shall prescribe by regulation rules for applying this provision to lessees.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Reconstruction</inline>.—</heading><content>Rehabilitation includes reconstruction.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Qualified rehabilitation expenditure defined</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘qualified rehabilitation expenditure’ means any amount properly chargeable to capital account which is incurred after December 31, 1981—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>for property (or additions or improvements to property) which have a recovery period (within the meaning of section 168) of 15 years, and <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 203.</p></sidenote></content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>in connection with the rehabilitation of a qualified rehabilitated building.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Certain expenditures not included</inline>.—</heading><chapeau>The term ‘qualified rehabilitation expenditure’ does not include—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">Accelerated methods of depreciation may not be used</inline>.—</heading><content>Any expenditures with respect to which an election has not been made under section 168(b)(3) (to use the straight-line method of depreciation).</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Cost of acquisition</inline>.—</heading><content>The cost of acquiring any building or interest therein.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num> <heading><inline class="smallCaps">Enlargements</inline>.—</heading><content>Any expenditure attributable to the enlargement of an existing building.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num> <heading><inline class="smallCaps">Certified historic structure, etc</inline>.—</heading><chapeau>Any expenditure attributable to the rehabilitation of a certified historic structure or a building in a registered historic district, unless the rehabilitation is a certified rehabilitation (within the meaning of subparagraph (C)). The preceding sentence shall not apply to a building in a registered historic district if—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>such building was not a certified historic structure,</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>the Secretary of the Interior certified to the Secretary that such building is not of historic significance to the district, and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="III">“(III) </num><content>if the certification referred to in subclause (II) occurs after the beginning of the rehabilitation of such building, the taxpayer certifies to the Secre-<page identifier="/us/stat/95/238">95 STAT. 238</page>tary that, at the beginning of such rehabilitation, he in good faith was not aware of the requirements of subclause (II).</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="v">“(v) </num> <heading><inline class="smallCaps">Expenditures of lessee</inline>.—</heading><content>Any expenditure of a lessee of a building if, on the date the rehabilitation is completed, the remaining term of the lease (determined without regard to any renewal periods) is less than 15 years.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Certified rehabilitation</inline>.—</heading><content>For purposes of subparagraph (B), the term ‘certified rehabilitation’ means any rehabilitation of a certified historic structure which the Secretary of the Interior has certified to the Secretary as being consistent with the historic character of such property or the district in which such property is located.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Certified historic structure defined</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘certified historic structure’ means any building (and its structural components) which—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>is listed in the National Register, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>is located in a registered historic district and is certified by the Secretary of the Interior to the Secretary as being of historic significance to the district.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Registered historic district</inline>.—</heading><chapeau>The term ‘registered historic district’ means—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>any district listed in the National Register, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><chapeau>any district—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>which is designated under a statute of the appropriate State or local government, if such statute is certified by the Secretary of the Interior to the Secretary as containing criteria which will substantially achieve the purpose of preserving and rehabilitating buildings of historic significance to the district, and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>which is certified by the Secretary of the Interior to the Secretary as meeting substantially all of the requirements for the listing of districts in the National Register.</content> </subclause> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Property treated as new section 38 property</inline>.—</heading><content>Property <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s38">26 USC 38</ref>.</p></sidenote> which is treated as section 38 property by reason of subsection (a)(1)(E) shall be treated as new section 38 property.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Adjustment to basis</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of this subtitle, if a credit is allowed under this section for any qualified rehabilitation expenditure in connection with a qualified rehabilitated building other than a certified historic structure, the increase in basis of such property which would (but for this paragraph) result from such expenditure shall be reduced by the amount of the credit so allowed.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Certain dispositions</inline>.—</heading><content>If during any taxable year there is a recapture amount determined with respect to any qualified rehabilitated building the basis of which was reduced under subparagraph (A), the basis of such building (immediately before the event resulting in such recapture) shall be increased by an amount equal to such recapture amount. For purposes of the preceding sentence, the term ‘recapture amount’ means any increase in tax (or adjustment in carrybacks or carryovers) determined under section <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 233.</p></sidenote> 47(a)(5).”</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </subsection> <page identifier="/us/stat/95/239">95 STAT. 239</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Lodging To Qualify</inline>.—</heading><chapeau>Paragraph (3) of section 48(a) (relating to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s48">26 USC 48</ref>.</p></sidenote> property used for lodging) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>and</quotedText>” at the end of subparagraph (B),</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out the period at the end of subparagraph (C) and inserting in lieu thereof “<quotedText>, and</quotedText>”, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by adding at the end thereof the following new subparagraph: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>a certified historic structure to the extent of that portion of the basis which is attributable to qualified rehabilitation expenditures.”</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Repeal of Certain Provisions Relating to Historic Structures</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 191 (relating to amortization of certain <sidenote><p class="indent0 firstIndent0 fontsize8">Repeals.</p> <p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s191/167">26 USC 191, 167</ref>.</p></sidenote> rehabilitation expenditures for certified historic structures) and subsections (n) and (o) of section 167 (relating to depreciation) are hereby repealed.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>Paragraph (8) of section 48(a) (relating to amortized <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s48">26 USC 48</ref>.</p></sidenote> property) is amended by striking out “<quotedText>188, or 191</quotedText>” and inserting in lieu thereof “<quotedText>or 188</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Paragraph (2) of section 57(a) (relating to items of tax <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s57">26 USC 57</ref>.</p></sidenote> preference) is amended by striking out “<quotedText>or 191</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><chapeau>Section 280B (relating to demolition of certain historic <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s280B">26 USC 280B</ref>.</p></sidenote> structures) is amended—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by striking out “<quotedText>section 191(d)(1)</quotedText>” in subsection (a), and inserting in lieu thereof “<quotedText>48(g)(3)(A)</quotedText>”, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by striking out “<quotedText>section 191(d)(2)</quotedText>” in subsection (b) and inserting in lieu thereof “<quotedText>section 48(g)(3)(B)</quotedText>”.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>Subsection (f) of section 642 (relating to special rules <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s642">26 USC 642</ref>.</p></sidenote> for credits and deductions) is amended by striking out “<quotedText>188, and 191</quotedText>” and inserting in lieu thereof “<quotedText>and 188</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>Subparagraph (B) of section 1082(a)(2) (relating to basis <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1082">26 USC 1082</ref>.</p></sidenote> for determining gain or loss) is amended by striking out “<quotedText>188, or 191</quotedText>” and inserting in lieu thereof “<quotedText>or 188</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">(F) </num><content>Paragraph (2) of section 1245(a) (relating to gain from <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1245">26 USC 1245</ref>.</p></sidenote> dispositions of certain depreciable property) and paragraph (4) of section 1250(b) (relating to gain from dispositions of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1250">26 USC 1250</ref>.</p></sidenote> certain depreciable realty) are each amended by inserting “<quotedText>(as in effect before its repeal by the Economic Recovery Tax Act of 1981)</quotedText>” after “<quotedText>191</quotedText>” each place it appears.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="G">(G) </num><chapeau>Subsection (a) of section 1016 (relating to adjustments <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1016">26 USC 1016</ref>.</p></sidenote> to basis) is amended—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by striking out “<quotedText>and</quotedText>” at the end of paragraph (22),</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by striking out the period at the end of paragraph (23) and inserting in lieu thereof “<quotedText>, and</quotedText>”, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="24">“(24) </num><content>to the extent provided in section 48(g)(5), in the case of <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 236.</p></sidenote> expenditures with respect to which a credit has been allowed under section 38.”</content></paragraph> </quotedContent> </content> </clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <heading><inline class="smallCaps">Effective Dates</inline>.—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s46">26 USC 46 note</ref>.</p></sidenote></heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), the amendments made by this section shall apply to expenditures incurred after December 31, 1981, in taxable years ending after such date.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Transitional rule</inline>.—</heading><chapeau>The amendments made by this section shall not apply with respect to any rehabilitation of a building if—</chapeau> <page identifier="/us/stat/95/240">95 STAT. 240</page> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the physical work on such rehabilitation began before January 1, 1982, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>such building meets the requirements of paragraph (1) of section 48(g) of the Internal Revenue Code of 1954 (as in effect on the day before the date of enactment of this Act) but does not meet the requirements of such paragraph (1) (as amended by this Act).</content></subparagraph> </paragraph> </subsection> </section> <section><num value="213">SEC. 213. </num> <heading>INVESTMENT CREDIT FOR USED PROPERTY; INCREASE IN DOLLAR LIMIT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s48">26 USC 48</ref>.</p></sidenote><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (2) of section 48(c) (relating to used section 38 property) is amended by amending subparagraphs (A), (B), and (C) to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Dollar limitation</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The cost of used section 38 property taken into account under section 46(c)(1)(B) for any taxable year shall not exceed $150,000 ($125,000 for taxable years beginning in 1981, 1982, 1983, or 1984). If such cost exceeds $150,000 (or $125,000 as the case may be), the taxpayer shall select (at such time and in such manner as the Secretary shall by regulations prescribe) the items to be taken into account, but only to the extent of an aggregate cost of $150,000 (or $125,000). Such a selection, once made, may be changed only in the manner, and to the extent, provided by such regulations.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Married individuals</inline>.—</heading><content>In the case of a husband or wife who files a separate return, the limitation under subparagraph (A) shall be $75,000 ($62,500 for taxable years beginning in 1981, 1982, 1983, or 1984). This subparagraph shall not apply if the spouse of the taxpayer has no used section 38 property which may be taken into account as qualified investment for the taxable year of such spouse which ends within or with the taxpayer’s taxable year.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Controlled groups</inline>.—</heading><content>In the case of a controlled group, the amount specified under subparagraph (A) shall be reduced for each component member of the group by apportioning such amount among the component members of such group in accordance with their respective amounts of used section 38 property which may be taken into account.”</content></subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s48">26 USC 48 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to property placed in service after December 31, 1980.</content> </subsection> </section> <section><num value="214">SEC. 214. </num> <heading>INVESTMENT TAX CREDIT ALLOWED FOR CERTAIN REHABILITATED BUILDINGS LEASED TO TAX-EXEMPT ORGANIZATIONS OR TO GOVERNMENTAL UNITS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Use by Tax-Exempt Organizations</inline>.—</heading><content>Paragraph (4) of section 48(a) (relating to property used by certain tax-exempt organizations) is amended by adding at the end thereof the following new sentence: “<quotedText>If any qualified rehabilitated building is used by the tax-exempt organization pursuant to a lease, this paragraph shall not apply to that portion of the basis of such building which is attributable to qualified rehabilitation expenditures.</quotedText>”</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3525">94 Stat. 3525</ref>.</p></sidenote><inline class="smallCaps">Use by Governmental Units</inline>.—</heading><content>Paragraph (5) of section 48(a) (relating to governmental units) is amended by adding at the end thereof the following new sentence: “<quotedText>If any qualified rehabilitated building is used by the governmental unit pursuant to a lease, this paragraph shall not apply to that portion of the basis of such building which is attributable to qualified rehabilitation expenditures.</quotedText>”</content> </subsection> <page identifier="/us/stat/95/241">95 STAT. 241</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s48">26 USC 48 note</ref>.</p></sidenote> apply to uses after July 29, 1980, in taxable years ending after such date.</content> </subsection> </section> </subtitle> <subtitle><num value="C">Subtitle C—</num><heading>Incentives for Research and Experimentation</heading> <section><num value="221">SEC. 221. </num> <heading>CREDIT FOR INCREASING RESEARCH ACTIVITIES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Subpart A of part IV of subchapter A of chapter 1 (relating to credits allowable) is amended by inserting after section 44E the following new section: <quotedContent> <section><num value="44F">“SEC. 44F. </num> <heading>CREDIT FOR INCREASING RESEARCH ACTIVITIES. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s44F">26 USC 44F</ref>.</p></sidenote></heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><chapeau>There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 25 percent of the excess (if any) of—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the qualified research expenses for the taxable year, over</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the base period research expenses.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Qualified Research Expenses</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Qualified research expenses</inline>.—</heading><chapeau>The term ‘qualified research expenses’ means the sum of the following amounts which are paid or incurred by the taxpayer during the taxable year in carrying on any trade or business of the taxpayer—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>in-house research expenses, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>contract research expenses.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">In-house research expenses</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘in-house research expenses’ means—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>any wages paid or incurred to an employee for qualified services performed by such employee,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>any amount paid or incurred for supplies used in the conduct of qualified research, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>any amount paid or incurred to another person for the right to use personal property in the conduct of qualified research.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Qualified services</inline>.—</heading><chapeau>The term ‘qualified services’ means services consisting of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>engaging in qualified research, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>engaging in the direct supervision or direct support of research activities which constitute qualified research.</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">If substantially all of the services performed by an individual for the taxpayer during the taxable year consists of services meeting the requirements of clause (i) or (ii), the term ‘qualified services’ means all of the services performed by such individual for the taxpayer during the taxable year.</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Supplies</inline>.—</heading><chapeau>The term ‘supplies’ means any tangible property other than—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>land or improvements to land, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>property of a character subject to the allowance for depreciation.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Wages</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘wages’ has the meaning given such term by section 3401(a).</content> </clause> <page identifier="/us/stat/95/242">95 STAT. 242</page> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Self-employed individuals and owner-employees</inline>.—</heading><content>In the case of an employee (within the meaning of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s401">26 USC 401</ref>.</p></sidenote> section 401(c)(1)), the term ‘wages’ includes the earned income (as defined in section 401(c)(2)) of such employee.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num> <heading><inline class="smallCaps">Exclusion for wages to which new jobs or win credit applies</inline>.—</heading><content>The term ‘wages’ shall not include any amount taken into account in computing the credit under section 40 or 44B.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Contract research expenses</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘contract research expenses’ means 65 percent of any amount paid or incurred by the taxpayer to any person (other than an employee of the taxpayer) for qualified research.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Prepaid amounts</inline>.—</heading><content>If any contract research expenses paid or incurred during any taxable year are attributable to qualified research to be conducted after the close of such taxable year, such amount shall be treated as paid or incurred during the period during which the qualified research is conducted.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Base Period Research Expenses</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘base period research expenses’ means the average of the qualified research expenses for each year in the base period.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Base period</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of this subsection, the term ‘base period’ means the 3 taxable years immediately preceding the taxable year for which the determination is being made (hereinafter in this subsection referred to as the ‘determination year’).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Transitional rules</inline>.—</heading><chapeau>Subparagraph (A) shall be applied—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>by substituting ‘first taxable year’ for ‘3 taxable years’ in the case of the first determination year ending after June 30, 1981, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>by substituting ‘2’ for ‘3’ in the case of the second determination year ending after June 30, 1981.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Minimum base period research expenses</inline>.—</heading><content>In no event shall the base period research expenses be less than 50 percent of the qualified research expenses for the determination year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Qualified Research</inline>.—</heading><chapeau>For purposes of this section the term ‘qualified research’ has the same meaning as the term research or experimental has under section 174, except that such term shall not include—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>qualified research conducted outside the United States,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>qualified research in the social sciences or humanities, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>qualified research to the extent funded by any grant, contract, or otherwise by another person (or any governmental entity).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <heading><inline class="smallCaps">Credit Available With Respect to Certain Basic Research by Colleges, Universities, and Certain Research Organizations</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>65 percent of any amount paid or incurred <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 248.</p></sidenote> by a corporation (as such term is defined in section 170(e)(4)(D)) to any qualified organization for basic research to be performed by such organization shall be treated as contract research expenses. The preceding sentence shall apply only if the amount is paid or <page identifier="/us/stat/95/243">95 STAT. 243</page> incurred pursuant to a written research agreement between the corporation and the qualified organization.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Qualified organization</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘qualified organization’ means—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>any educational organization which is described in section 170(b)(1)(A)(ii) and which is an institution of higher <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s170">26 USC 170</ref>.</p></sidenote> education (as defined in section 3304(f)), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>any other organization which—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>is described in section 501(c)(3) and exempt from tax under section 501(a),</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>is organized and operated primarily to conduct scientific research, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>is not a private foundation.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Basic research</inline>.—</heading><chapeau>The term ‘basic research’ means any original investigation for the advancement of scientific knowledge not having a specific commercial objective, except that such term shall not include—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>basic research conducted outside the United States, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>basic research in the social sciences or humanities.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Special rules for grants to certain funds</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of this subsection, a qualified fund shall be treated as a qualified organization and the requirements of paragraph (1) that the basic research be performed by the qualified organization shall not apply.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Qualified fund</inline>.—</heading><chapeau>For purposes of subparagraph (A), the term ‘qualified fund’ means any organization which—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>is described in section 501(c)(3) and exempt from tax under section 501(a) and is not a private foundation,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>is established and maintained by an organization established before July 10, 1981, which meets the requirements of clause (i),</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>is organized and operated exclusively for purposes of making grants pursuant to written research agreements to organizations described in paragraph (2)(A) for purposes of basic research, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>makes an election under this paragraph.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Effect of election</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Any organization which makes an election under this paragraph shall be treated as a private foundation for purposes of this title (other than section 4940, relating to excise tax based on investment income).</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Election revocable only with consent</inline>.—</heading><content>An election under this paragraph, once made, may be revoked only with the consent of the Secretary.</content> </clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <heading><inline class="smallCaps">Special Rules</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Aggregation of expenditures</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">Controlled group of corporations</inline>.—</heading><chapeau>In determining the amount of the credit under this section—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>all members of the same controlled group of corporations shall be treated as a single taxpayer, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the credit (if any) allowable by this section to each such member shall be its proportionate share of the increase in qualified research expenses giving rise to the credit.</content> </clause> </subparagraph> <page identifier="/us/stat/95/244">95 STAT. 244</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Common control</inline>.—</heading><chapeau>Under regulations prescribed by the Secretary, in determining the amount of the credit under this section—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>all trades or businesses (whether or not incorporated) which are under common control shall be treated as a single taxpayer, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the credit (if any) allowable by this section to each such person shall be its proportionate share of the increase in qualified research expenses giving rise to the credit.</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">The regulations prescribed under this subparagraph shall be based on principles similar to the principles which apply in the case of subparagraph (A).</continuation> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Allocations</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">Passthrough in the case of subchapter s corporations, etc</inline>.—</heading><content>Under regulations prescribed by the Secretary, rules similar to the rules of subsections (d) and (e) of section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s52">26 USC 52</ref>.</p></sidenote> 52 shall apply.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Allocation in the case of partnerships</inline>.—</heading><content>In the case of partnerships, the credit shall be allocated among partners under regulations prescribed by the Secretary.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Adjustments for certain acquisitions, etc</inline>.—</heading><chapeau>Under regulations prescribed by the Secretary—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">Acquisitions</inline>.—</heading><content>If, after June 30, 1980, a taxpayer acquires the major portion of a trade or business of another person (hereinafter in this paragraph referred to as the predecessor) or the major portion of a separate unit of a trade or business of a predecessor, then, for purposes of applying this section for any taxable year ending after such acquisition, the amount of qualified research expenses paid or incurred by the taxpayer during periods before such acquisition shall be increased by so much of such expenses paid or incurred by the predecessor with respect to the acquired trade or business as is attributable to the portion of such trade or business or separate unit acquired by the taxpayer.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Dispositions</inline>.—</heading><chapeau>If, after June 30, 1980—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>a taxpayer disposes of the major portion of any trade or business or the major portion of a separate unit of a trade or business in a transaction to which subparagraph (A) applies, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the taxpayer furnished the acquiring person such information as is necessary for the application of subparagraph (A),</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">then, for purposes of applying this section for any taxable year ending after such disposition, the amount of qualified research expenses paid or incurred by the taxpayer during periods before such disposition shall be decreased by so much of such expenses as is attributable to the portion of such trade or business or separate unit disposed of by the taxpayer.</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Increase in base period</inline>.—</heading><chapeau>If during any of the 3 taxable years following the taxable year in which a disposition to which subparagraph (B) applies occurs, the disposing taxpayer (or a person with whom the taxpayer is required to aggregate expenditures under paragraph (1)) reimburses the acquiring person (or a person required to so aggregate expenditures with such person) for research on behalf of the <page identifier="/us/stat/95/245">95 STAT. 245</page> taxpayer, then the amount of qualified research expenses of the taxpayer for the base period for such taxable year shall be increased by the lesser of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the amount of the decrease under subparagraph (B) which is allocable to such base period, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the product of the number of years in the base period, multiplied by the amount of the reimbursement described in this subparagraph.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Short taxable years</inline>.—</heading><content>In the case of any short taxable year, qualified research expenses shall be annualized in such circumstances and under such methods as the Secretary may prescribe by regulation.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Controlled group of corporations</inline>.—</heading><chapeau>The term ‘controlled group of corporations’ has the same meaning given to such term by section 1563(a), except that— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1563">26 USC 1563</ref>.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>more than 50 percent’ shall be substituted for ‘at least 80 percent’ each place it appears in section 1563(a)(1), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the determination shall be made without regard to subsections (a)(4) and (e)(3)(C) of section 1563.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num> <heading><inline class="smallCaps">Limitation Based on Amount of Tax</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Liability for tax</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in subparagraph (B), the credit allowed by subsection (a) for any taxable year shall not exceed the amount of the tax imposed by this chapter reduced by the sum of the credits allowable under a section of this part having a lower number or letter designation than this section, other than the credits allowable by sections 31, 39, and 43. For purposes of the preceding sentence, the term ‘tax imposed by this chapter’ shall not include any tax treated as not imposed by this chapter under the last sentence of section 53(a).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Special rule for passthrough of credit</inline>.—</heading><chapeau>In the case of an individual who—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>owns an interest in an unincorporated trade or business,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>is a partner in a partnership,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>is a beneficiary of an estate or trust, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>is a shareholder in an electing small business corporation (within the meaning of section 1371(b)),</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">the credit allowed by subsection (a) for any taxable year shall not exceed the lesser of the amount determined under subparagraph (A) for the taxable year or an amount (separately computed with respect to such person’s interest in such trade or business or entity) equal to the amount of tax attributable to that portion of a person’s taxable income which is allocable or apportionable to the person’s interest in such trade or business or entity.</continuation> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Carryback and carryover of unused credit</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">Allowance of credit</inline>.—</heading><chapeau>If the amount of the credit determined under this section for any taxable year exceeds the limitation provided by paragraph (1) for such taxable year (hereinafter in this paragraph referred to as the ‘unused credit year’), such excess shall be—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>a research credit carryback to each of the 3 taxable years preceding the unused credit year, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>a research credit carryover to each of the 15 taxable years following the unused credit year. <page identifier="/us/stat/95/246">95 STAT. 246</page> and shall be added to the amount allowable as a credit by this section for such years. If any portion of such excess is a carryback to a taxable year beginning before July 1, 1981, this section shall be deemed to have been in effect for such taxable year for purposes of allowing such carryback as a credit under this section. The entire amount of the unused credit for an unused credit year shall be carried to the earliest of the 18 taxable years to which (by reason of clauses (i) and (ii)) such credit may be carried, and then to each of the other 17 taxable years to the extent that, because of the limitation contained in subparagraph (B), such unused credit may not be added for a prior taxable year to which such unused credit may be carried.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><chapeau>The amount of the unused credit which may be added under subparagraph (A) for any preceding or succeeding taxable year shall not exceed the amount by which the limitation provided by paragraph (1) for such taxable year exceeds the sum of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the credit allowable under this section for such taxable year, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the amounts which, by reason of this paragraph, are added to the amount allowable for such taxable year and which are attributable to taxable years preceding the unused credit year.”</content> </clause> </subparagraph> </paragraph> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Technical Amendments Related to Carryover and Carryback of Credits</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Carryover of credit</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3514">94 Stat. 3514</ref>.</p></sidenote> <content class="inline">Subparagraph (A) of section 55(c)(4) (relating to carryover and carryback of certain credits) is amended by striking out “<quotedText>section 44E(e)(1)</quotedText>” and inserting in lieu thereof “<quotedText>section 44F(g)(1), 44E(e)(1)</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 226.</p> <p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s381">26 USC 381</ref>.</p></sidenote> <content>Subsection (c) of section 381 (relating to items of the distributor or transferor corporation) is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="28">“(28) </num> <heading><inline class="smallCaps">Credit under section 44f</inline>.—</heading><content>The acquiring corporation shall take into account (to the extent proper to carry out the <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 241.</p></sidenote> purposes of this section and section 44F, and under such regulations as may be prescribed by the Secretary) the items required to be taken into account for purposes of section 44F in respect of the distributor or transferor corporation.”</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s383">26 USC 383</ref>.</p></sidenote> <chapeau class="inline">Section 883 (relating to special limitations on unused investment credits, work incentive program credits, new employee credits, alcohol fuel credits, foreign taxes, and capital losses), as in effect for taxable years beginning after June 30, 1982, is amended—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by inserting “<quotedText>to any unused credit of the corporation under section 44F(g)(2),</quotedText>” after “<quotedText>44E(e)(2),</quotedText>”, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by inserting “<quotedText><b>RESEARCH CREDITS,</b></quotedText>” after “<b>ALCOHOL FUEL CREDITS,</b>” in the section heading.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><chapeau>Section 383 (as in effect on the day before the date of the enactment of the Tax Reform Act of 1976) is amended—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by inserting “<quotedText>to any unused credit of the corporation which could otherwise be carried forward under section 44F(g)(2),</quotedText>” after “<quotedText>44E(e)(2),</quotedText>”, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by inserting “<quotedText><b>RESEARCH CREDITS,</b></quotedText>” after “<b>ALCOHOL FUEL CREDITS,</b>” in the section heading.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>The table of sections for part V of subchapter C of chapter 1 is amended by inserting “<quotedText>alcohol fuel credits, <page identifier="/us/stat/95/247">95 STAT. 247</page> research credits,</quotedText>” after “<quotedText>new employee credits,</quotedText>” in the item relating to section 383.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Carryback of credit</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>Subparagraph (C) of section 6511(d)(4) (defining credit <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 295.</p> <p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6511">26 USC 6511</ref>.</p></sidenote> carryback) is amended by striking out “<quotedText>and new employee credit carryback</quotedText>” and inserting in lieu thereof “<quotedText>new employee credit carryback, and research credit carryback</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><chapeau>Section 6411 (relating to quick refunds in respect of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6411">26 USC 6411</ref>.</p></sidenote> tentative carryback adjustments) is amended—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by striking out “<quotedText>or unused new employee credit</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>unused new employee credit, or unused research credit</quotedText>”;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by inserting “<quotedText>by a research credit carryback provided in section 44F(g)(2),</quotedText>” after “<quotedText>63(b),</quotedText>” in the first sentence of subsection (a); <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/211">94 Stat. 211</ref>.</p></sidenote></content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>by striking out “<quotedText>or a new employee credit carryback from</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>a new employee credit carryback, or a research credit carryback from</quotedText>”; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">(iv) </num><content>by striking out “<quotedText>work incentive program carryback)</quotedText>” and inserting in lieu thereof “<quotedText>work incentive program carryback, or, in the case of a research credit carryback, to an investment credit carryback, a work incentive program carryback, or a new employee credit carryback)</quotedText>”.</content> </clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Other Technical and Clerical Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Subsection (b) of section 6096 (relating to designation of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/276">94 Stat. 276</ref>.</p> <p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 295.</p></sidenote> income tax payments to Presidential Election Campaign Fund) is amended by striking out “<quotedText>and 44E</quotedText>” and inserting in lieu thereof “<quotedText>44E, and 44F</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 44E the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 44F.</designator> <label>Credit for increasing research activities.”</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Effective Date</inline>.—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s44F">26 USC 44F note</ref>.</p></sidenote></heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by this section shall apply to amounts paid or incurred after June 30, 1981, and before January 1, 1986.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Transitional rule</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If, with respect to the first taxable year to which the amendments made by this section apply and which ends in 1981 or 1982, the taxpayer may only take into account qualified research expenses paid or incurred during a portion of such taxable year, the amount of the qualified research expenses taken into account for the base period of such taxable year shall be the amount which bears the same ratio to the total qualified research expenses for such base period as the number of months in such portion of such taxable year bears to the total number of months in such taxable year. A similar rule shall apply in the case of a taxpayer’s first taxable year ending after December 31, 1985.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><content>For purposes of the preceding sentence, the terms “qualified research expenses and “base period” have the meanings given to such terms by section 44F of the Internal Revenue Code of 1954 (as added by this section). <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p 241.</p></sidenote></content></subparagraph> </paragraph> </subsection> </section> <page identifier="/us/stat/95/248">95 STAT. 248</page> <section><num value="222">SEC. 222. </num> <heading>CHARITABLE CONTRIBUTIONS OF SCIENTIFIC PROPERTY USED FOR RESEARCH.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s170">26 USC 170</ref>.</p></sidenote><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (e) of section 170 (relating to deductions for charitable, etc., contributions and gifts) is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Special rule for contributions of scientific property used for research</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">Limit on reduction</inline>.—</heading><content>In the case of a qualified research contribution, the reduction under paragraph (1)(A) shall be no greater than the amount determined under paragraph (3)(B).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Qualified research contributions</inline>.—</heading><chapeau>For purposes of this paragraph, the term ‘qualified research contribution’ means a charitable contribution by a corporation of tangible personal property described in paragraph (1) of section 1221, but only if—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the contribution is to an educational organization which is described in subsection (b)(1)(A)(ii) of this section and which is an institution of higher education (as defined in section 3804(f)),</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the property is constructed by the taxpayer,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>the contribution is made not later than 2 years after the date the construction of the property is substantially completed,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>the original use of the property is by the donee,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="v">“(v) </num><content>the property is scientific equipment or apparatus substantially all of the use of which by the donee is for research or experimentation (within the meaning of section 174), or for research training, in the United States in physical or biological sciences,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="vi">“(vi) </num><content>the property is not transferred by the donee in exchange for money, other property, or services, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="vii">“(vii) </num><content>the taxpayer receives from the donee a written statement representing that its use and disposition of the property will be in accordance with the provisions of clauses (v) and (vi).</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Construction of property by taxpayer</inline>.—</heading><content>For purposes of this paragraph, property shall be treated as constructed by the taxpayer only if the cost of the parts used in the construction of such property (other than parts manufactured by the taxpayer or a related person) do not exceed 50 percent of the taxpayer’s basis in such property.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Corporation</inline>.—</heading><chapeau>For purposes of this paragraph, the term ‘corporation’ shall not include—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>an electing small business corporation (as defined in section 1371(b)),</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>a personal holding company (as defined in section 542), and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>a service organization (as defined in section 414(m)(3)).”</content> </clause> </subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s170">26 USC 170 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to charitable contributions made after the date of the enactment of this Act, in taxable years ending after such date.</content> </subsection> </section> <page identifier="/us/stat/95/249">95 STAT. 249</page> <section><num value="223">SEC. 223. </num> <heading>SUSPENSION OF REGULATIONS RELATING TO ALLOCATION <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s174">26 USC 174 note</ref>.</p></sidenote> UNDER SECTION 861 OF RESEARCH AND EXPERIMENTAL EXPENDITURES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">2-Year Suspension</inline>.—</heading><content>In the case of the taxpayer’s first 2 taxable years beginning within 2 years after the date of the enactment of this Act, all research and experimental expenditures (within the meaning of section 174 of the Internal Revenue Code of 1954) which are paid or incurred in such year for research activities conducted in the United States shall be allocated or apportioned to sources within the United States.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Study</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The Secretary of the Treasury shall conduct a study with respect to the impact which section 1.861–8 of the Internal Revenue Service Regulations would have (A) on <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/cfr/t26/1.861–8">26 CFR 1.861–8</ref>.</p></sidenote> research and experimental activities conducted in the United States and (B) on the availability of the foreign tax credit.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than the date 6 months after the date of the enactment of this Act, the Secretary of the Treasury shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report on the study conducted under paragraph (1) (together with such recommendations as he may deem advisable).</content></paragraph> </subsection> </section> </subtitle> <subtitle><num value="D">Subtitle D—</num><heading>Small Business Provisions</heading> <section><num value="231">SEC. 231. </num> <heading>REDUCTION IN CORPORATE TAX RATES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Subsection (b) of section 11 (relating to amount of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s11">26 USC 11</ref>.</p></sidenote> corporate tax) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>17 percent</quotedText>” in paragraph (1) and inserting in lieu thereof “<quotedText>15 percent (16 percent for taxable years beginning in 1982)</quotedText>”, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>20 percent</quotedText>” in paragraph (2) and inserting in lieu thereof “<quotedText>18 percent (19 percent for taxable years beginning in 1982)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Paragraph (2) of section 821(a) (relating to imposition of tax <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s821">26 USC 821</ref>.</p></sidenote> on mutual insurance companies to which part II applies) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Cap on tax where income is less than $12,000</inline>.—</heading><content>The tax imposed by paragraph (1) on so much of the mutual insurance company taxable income as does not exceed $12,000 shall not exceed 32 percent (30 percent for taxable years beginning after December 31, 1982) of the amount by which such income exceeds $6,000.”</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Subparagraph (B) of section 821(c)(1) (relating to imposition of alternative tax for certain small companies) is amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Cap where income is less than $6,000</inline>.—</heading><content>The tax imposed by subparagraph (A) on so much of the taxable investment income as does not exceed $6,000 shall not exceed 32 percent (30 percent for taxable years beginning after December 31, 1982) of the amount by which such income exceeds $3,000.”</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The amendments made by paragraphs (1) and (2) shall apply <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s821">26 USC 821 note</ref>.</p></sidenote> to taxable years beginning after December 31, 1978; except that for purposes of applying sections 821(a)(2) and 821(c)(1)(B) of the Internal Revenue Code of 1954 (as amended by this subsection) to <page identifier="/us/stat/95/250">95 STAT. 250</page> taxable years beginning before January 1, 1982, the percentage referred to in such section shall be deemed to be 34 percent.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s11">26 USC 11 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 1981.</content> </subsection> </section> <section><num value="232">SEC. 232. </num> <heading>INCREASE IN ACCUMULATED EARNINGS CREDIT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Increase in Credit for Certain Corporations</inline>.—</heading><content>Paragraph (2) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s535">26 USC 535</ref>.</p></sidenote> of section 535(c) (relating to accumulated earnings credit) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Minimum credit</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The credit allowable under paragraph (1) shall in no case be less than the amount by which $250,000 exceeds the accumulated earnings and profits of the corporation at the close of the preceding taxable year.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Certain service corporations</inline>.—</heading><content>In the case of a corporation the principal function of which is the performance of services in the field of health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting, subparagraph (A) shall be applied by substituting ‘$150,000’ for ‘$250,000’.”</content></subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Paragraph (3) of section 535(c) is amended by striking out “<quotedText>$150,000</quotedText>” and inserting in lieu thereof “<quotedText>$250,000</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s243">26 USC 243</ref>.</p> <p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1551">26 USC 1551</ref>.</p></sidenote> <content class="inline">Sections 243(b)(3)(C)(i) (relating to qualifying dividends for purposes of the dividends received deduction) and 1551(a) (relating to disallowance of surtax exemption and accumulated earnings credit) are each amended by striking out “<quotedText>$150,000</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1561">26 USC 1561</ref>.</p></sidenote> <content class="inline">Section 1561(a)(2) (relating to limitations on certain multiple tax benefits in the case of certain controlled corporations) is amended by striking out “<quotedText>$150,000</quotedText>” and inserting in lieu thereof “<quotedText>$250,000 ($150,000 if any component member is a corporation described in section 535(c)(2)(B))</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s535">26 USC 535 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to taxable years beginning after December 31, 1981.</content> </subsection> </section> <section><num value="233">SEC. 233. </num> <heading>SUBCHAPTER S SHAREHOLDERS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1371">26 USC 1371</ref>.</p></sidenote><inline class="smallCaps">Increase in Number of Shareholders</inline>.—</heading><content>Section 1371(a) (defining small business corporation) is amended by striking out “<quotedText>15 shareholders</quotedText>” in paragraph (1) and inserting in lieu thereof “<quotedText>25 shareholders</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1371">26 USC 1371 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply with respect to taxable years beginning after December 31, 1981.</content> </subsection> </section> <section><num value="234">SEC. 234. </num> <heading>TREATMENT OF TRUSTS AS SUBCHAPTER S SHAREHOLDERS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (e) of section 1371 (relating to certain trusts permitted as shareholders) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <heading><inline class="smallCaps">Certain Trusts Permitted as Shareholders</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of subsection (a), the following trusts may be shareholders:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>A trust all of which is treated (under subpart E of part <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s671">26 USC 671</ref>.</p></sidenote> I of subchapter J of this chapter) as owned by an individual who is a citizen or resident of the United States.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>A trust which was described in subparagraph (A) immediately before the death of the deemed owner and which continues in existence after such death, but only for the 60-day period beginning on the day of the deemed owner’s death. If a trust is described in the preceding <page identifier="/us/stat/95/251">95 STAT. 251</page> sentence and if the entire corpus of the trust is includible in the gross estate of the deemed owner, the preceding sentence shall be applied by substituting ‘2-year period’ for ‘60-day period’.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>A trust with respect to stock transferred to it pursuant to the terms of a will, but only for the 60-day period beginning on the day on which such stock is transferred to it.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>A trust created primarily to exercise the voting power of stock transferred to it.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Treatment as shareholders</inline>.—</heading><chapeau>For purposes of subsection (a)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>In the case of a trust described in subparagraph (A) of paragraph (1), the deemed owner shall be treated as the shareholder.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>In the case of a trust described in subparagraph (B) of paragraph (1), the estate of the deemed owner shall be treated as the shareholder.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>In the case of a trust described in subparagraph (C) of paragraph (1), the estate of the testator shall be treated as the shareholder.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>In the case of a trust described in subparagraph (D) of paragraph (1), each beneficiary of the trust shall be treated as a shareholder.”</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Qualified Subchapter S Trusts</inline>.—</heading><content>Section 1371 is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1371">26 USC 1371</ref>.</p></sidenote> adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="g">“(g) </num> <heading><inline class="smallCaps">Special Rule for Qualified Subchapter S Trust</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a qualified subchapter S trust with respect to which a beneficiary makes an election under paragraph (2)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>such trust shall be treated as a trust described in subsection (e)(1)(A), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>for purposes of section 678(a), the beneficiary of such trust shall be treated as the owner of that portion of the trust which consists of stock in an electing small business corporation with respect to which the election under paragraph (2) is made.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Election</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A beneficiary of a qualified subchapter S trust (or his legal representative) may elect to have this subsection apply.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Manner and time of election</inline>.—</heading><chapeau>An election under this paragraph shall be made—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>separately with respect to each electing small business corporation the stock of which is held by the trust,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>separately with respect to each successive income beneficiary of the trust, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>in such manner and form, and at such time, as the Secretary may prescribe.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Election irrevocable</inline>.—</heading><content>An election under this paragraph, once made, may be revoked only with the consent of the Secretary.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Grace period</inline>.—</heading><content>An election under this paragraph shall be effective up to 60 days before the date of the election.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Qualified subchapter s trust</inline>.—</heading><chapeau class="inline">For purposes of this subsection, the term ‘qualified subchapter S trust’ means a trust—</chapeau> <page identifier="/us/stat/95/252">95 STAT. 252</page> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>which owns stock in 1 or more electing small business corporations,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>all of the income of which is distributed currently to one individual who is a citizen or resident of the United States, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><chapeau>the terms of which require that—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>at any time, there shall be only one income beneficiary of the trust,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>any corpus distributed during the term of the trust may be distributed only to the current income beneficiary thereof,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>each income interest in the trust shall terminate on the earlier of the death of the income beneficiary or the termination of the trust, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>upon the termination of the trust during the life of an income beneficiary, the trust shall distribute all of its assets to such income beneficiary.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Trust ceasing to be qualified</inline>.—</heading><content>If a qualified subchapter S trust ceases to meet any requirement under paragraph (3), the provisions of this subsection shall not apply to such trust as of the date it ceases to meet such requirements.”</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1371">26 USC 1371 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to taxable years beginning after December 31, 1981.</content> </subsection> </section> <section><num value="235">SEC. 235. </num> <heading>SIMPLIFICATION OF LIFO BY USE OF GOVERNMENT INDEXES TO BE PROVIDED BY REGULATIONS.</heading> <content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s472">26 USC 472</ref>.</p></sidenote> Section 472 is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <heading><inline class="smallCaps">Use of Government Price Indexes in Pricing Inventory</inline>.—</heading><content>The Secretary shall prescribe regulations permitting the use of suitable published governmental indexes in such manner and circumstances as determined by the Secretary for purposes of the method described in subsection (b).”</content> </subsection> </quotedContent> </content> </section> <section><num value="236">SEC. 236. </num> <heading>3-YEAR AVERAGING PERMITTED FOR INCREASES IN INVENTORY VALUE.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Subsection (d) of section 472 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">3-Year Averaging for Increases in Inventory Value</inline>.—</heading><content>The beginning inventory for the first taxable year for which the method described in subsection (b) is used shall be valued at cost. Any change in the inventory amount resulting from the application of the preceding sentence shall be taken into account ratably in each of the 3 taxable years beginning with the first taxable year for which the method described in subsection (b) is first used.”</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s472">26 USC 472 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1981.</content> </subsection> </section> <section><num value="237">SEC. 237. </num> <heading>ELECTION BY SMALL BUSINESS TO USE ONE INVENTORY POOL WHEN LIFO IS ELECTED.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subpart D of part II of subchapter E of chapter 1 (relating to inventories) is amended by adding at the end thereof the following new section: <quotedContent> <section><num value="474">“SEC. 474. </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s474">26 USC 474</ref>.</p></sidenote>ELECTION BY CERTAIN SMALL BUSINESSES TO USE ONE INVENTORY POOL.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>A taxpayer which is an eligible small business and which uses the dollar-value method of pricing inventories under <page identifier="/us/stat/95/253">95 STAT. 253</page> the method provided by section 472(b) may elect to use one inventory <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s472">26 USC 472</ref>.</p></sidenote> pool for any trade or business of such taxpayer.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Eligible Small Business Defined</inline>.—</heading><content>For purposes of this section, a taxpayer is an eligible small business for any taxable year if the average annual gross receipts of the taxpayer do not exceed $2,000,000 for the 3-taxable-year period ending with the taxable year.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Special Rules</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Controlled Groups</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of a taxpayer which is a member of a controlled group, all persons which are component members of such group at any time during the calendar year shall be treated as one taxpayer for such year for purposes of determining the gross receipts of the taxpayer.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Controlled group defined</inline>.—</heading><content>For purposes of subparagraph (A), persons shall be treated as being members of a controlled group if such persons would be treated as a single employer under the regulations prescribed under section 52(b).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Election</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The election under this section may be made without the consent of the Secretary and shall be made at such time and in such manner as the Secretary may by regulations prescribe.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Period to which election applies</inline>.—</heading><chapeau>The election under this section shall apply—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>to the taxable year for which it is made, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>to all subsequent taxable years for which the taxpayer is an eligible small business,</content> </clause> </subparagraph> <continuation class="indent1 firstIndent0 fontsize10">unless the taxpayer secures the consent of the Secretary to the revocation of such election.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Transitional rules</inline>.—</heading><chapeau>In the case of a taxpayer who changes the number of inventory pools maintained by him in a taxable year by reason of an election (or cessation thereof) under this section—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the inventory pools combined or separated shall be combined or separated in the manner provided by regulations under section 472;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>the aggregate dollar value of the taxpayer’s inventory as of the beginning of the first taxable year—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>for which an election under this section is in effect, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>after such election ceases to apply,</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">shall be the same as the aggregate dollar value as of the close of the taxable year preceding the taxable year described in clause (i) or (ii) (as the case may be), and</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>the first taxable year for which an election under this section is in effect or after such election ceases to apply (as the case may be) shall be treated as a new base year in accordance with procedures provided by regulations under section 472.”</content></subparagraph> </paragraph> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for such subpart D is amended by adding at the end thereof the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 474.</designator> <label>Election by certain small businesses to use one inventory pool.”</label></referenceItem> </toc> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s474">26 USC 474 note</ref>.</p></sidenote> apply to taxable years beginning after December 31, 1981.</content> </subsection> </section> <page identifier="/us/stat/95/254">95 STAT. 254</page> <section><num value="238">SEC. 238. </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s471">26 USC 471 note</ref>.</p></sidenote>STUDY OF ACCOUNTING METHODS FOR INVENTORY.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Study</inline>.—</heading><content>The Secretary of the Treasury shall conduct a full and complete study of methods of tax accounting for inventory with a view toward the development of simplified methods. Such study shall include (but shall not be limited to) an examination of the last-in first-out method and the cash receipts and disbursements method.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>Not later than December 31, 1982, the Secretary of the Treasury shall submit to the Committee on Ways and Means of the House of Representatives and to the Committee on Finance of the Senate a report on the study conducted under subsection (a), together with such recommendations as he deems appropriate.</content> </subsection> </section> </subtitle> <subtitle><num value="E">Subtitle E—</num><heading>Savings and Loan Associations</heading> <section><num value="241">SEC. 241. </num> <heading>REORGANIZATIONS INVOLVING FINANCIALLY TROUBLED THRIFT INSTITUTIONS.</heading> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s368">26 USC 368</ref>.</p></sidenote> <content><inline class="smallCaps">Amendment of Section 368</inline>(a)(3)(D).—Section 368(a)(3)(D) (relating to agency receivership proceedings which involve financial institutions) is amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Agency proceedings which involve financial institutions</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><chapeau>For purpose of subparagraphs (A) and (B)—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>In the case of a receivership, foreclosure, or similar proceeding before a Federal or State agency involving a financial institution to which section 585 applies, the agency shall be treated as a court, and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>In the case of a financial institution to which <sidenote><p class="indent0 firstIndent0 fontsize8">“Title 11 or similar case.”</p></sidenote> section 593 applies, the term ‘title 11 or similar case’ means only a case in which the Board (which will be treated as the court in such case) makes the certification described in clause (ii).</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><chapeau>A transaction otherwise meeting the requirements of subparagraph (G) of paragraph (1), in which the transferor corporation is a financial institution to which section 593 applies, will not be disqualified as a reorganization if no stock or securities of the corporation to which the assets are transferred (transferee) are received or distributed, but only if all of the following conditions are met:</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>the requirements of subparagraphs (A) and (B) of section 354(b)(1) are met with respect to the acquisition of the assets,</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>substantially all of the liabilities of the transferor immediately before the transfer become, as a result of the transfer, liabilities of the transferee, and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="III">“(III) </num><content>the Board certifies that the grounds set forth in section 1464(d)(6)(A) (i), (ii), or (iii) of title 12, United States Code, exist with respect to the transferor or will exist in the near future in the absence of action by the Board.</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>For purposes of this subparagraph, the ‘Board’ means the Federal Home Loan Bank Board or the Federal Savings and Loan Insurance Corporation or, if neither has supervisory authority with respect to the transferor, the equivalent State authority.”</content> </clause> </subparagraph> </quotedContent> </content> </section> <page identifier="/us/stat/95/255">95 STAT. 255</page> <section><num value="242">SEC. 242. </num> <heading>LIMITATIONS ON CARRYOVERS OF FINANCIAL INSTITUTIONS.</heading> <content>Section 382(b)(7) (relating to reduction of net operating loss carryovers in title 11 or similar cases), as added by section 2(d) of Public Law 96–589, is amended to read as follows: <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3396">94 Stat. 3396</ref>.</p></sidenote> <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num> <heading><inline class="smallCaps">Special rule for reorganizations in title 11 or similar cases</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>a creditor who receives stock in a reorganization in a title 11 or similar case (within the meaning of section 368(a)(3)(A)) shall be treated as a stockholder immediately before the reorganization, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>in a transaction qualifying under section 368(a)(3)(D)(ii)— <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 254.</p></sidenote></chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>a depositor in the transferor shall be treated as a stockholder immediately before the reorganization of the loss corporation,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>deposits in the transferor which become, as a result of the transfer, deposits in the transferee shall be treated as stock of the acquiring corporation owned as a result of owning stock of the loss corporation, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>the fair market value of the outstanding stock of the acquiring corporation shall include the amount of deposits in the acquiring corporation immediately after the reorganization.”</content> </clause> </subparagraph> </paragraph> </quotedContent> </content> </section> <section><num value="243">SEC. 243. </num> <heading>RESERVES FOR LOSSES ON LOANS.</heading> <content>Paragraph (1) of section 593(e) (relating to distributions to shareholders <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s593">26 USC 593</ref>.</p></sidenote> of a domestic building and loan association) is amended by striking out “<quotedText>applies.</quotedText>” in the last sentence thereof and substituting therefor the following: “<quotedText>applies, or to any distribution to the Federal Savings and Loan Insurance Corporation in redemption of an interest in an association, if such interest was originally received by the Federal Savings and Loan Insurance Corporation in exchange for financial assistance pursuant to section 406(f) of the National Housing Act (12 U.S.C. sec. 1729(f)).</quotedText>”</content> </section> <section><num value="244">SEC. 244. </num> <heading>FSLIC FINANCIAL ASSISTANCE.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Part II of subchapter H of subtitle A of chapter 1 is amended by adding at the end thereof the following new section: <quotedContent> <section><num value="597">“SEC. 597. </num> <heading>FSLIC FINANCIAL ASSISTANCE. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s597">26 USC 597</ref>.</p></sidenote></heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Exclusion From Gross Income</inline>.—</heading><content>Gross income of a domestic building and loan association does not include any amount of money or other property received from the Federal Savings and Loan Insurance Corporation pursuant to section 406(f) of the National Housing Act (12 U.S.C. sec. 1729(f)), regardless of whether any note or other instrument is issued in exchange therefor.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">No Reduction in Basis of Assets</inline>.—</heading><content>No reduction in the basis of assets of a domestic building and loan association shall be made on account of money or other property received under the circumstances referred to in subsection (a).”</content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for part II of subchapter H of chapter 1 is amended by inserting after the item relating to section 596 the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 597.</designator> <label>FSLIC financial assistance.”</label></referenceItem> </toc> </quotedContent> </content> </subsection> </section> <section><num value="245">SEC. 245. </num> <heading>MUTUAL SAVINGS BANKS WITH CAPITAL STOCK.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 591 (relating to dividends paid on deposits) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s591">26 USC 591</ref>.</p></sidenote> is amended—</chapeau> <page identifier="/us/stat/95/256">95 STAT. 256</page> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(a) <inline class="smallCaps">In General</inline>.—</quotedText>” before “<quotedText>In</quotedText>”, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Mutual Savings Bank To Include Certain Banks With Capital Stock</inline>.—</heading><chapeau>For purposes of this part, the term ‘mutual savings bank’ includes any bank—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>which has capital stock represented by shares, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>which is subject to, and operates under, Federal or State laws relating to mutual savings bank.”</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Percentage of Taxable Income Method</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s593">26 USC 593</ref>.</p></sidenote> <content class="inline">Subparagraph (B) of section 593(b)(2) (relating to reduction of applicable percentage in certain cases) is amended by inserting “<quotedText>which is not described in section 591(b)</quotedText>” after “<quotedText>mutual savings bank</quotedText>” each place it appears.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Subparagraph (C) of section 593(b)(2) is amended by inserting “<quotedText>which are not described in section 591(b)</quotedText>” after mutual savings banks”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Sections 593(a) (relating to reserves for losses on loans) is amended by striking out “<quotedText>not having capital stock represented by shares</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Paragraph (1) of section 593(e) (relating to distributions to shareholders) is amended by inserting “<quotedText>or an institution that is treated as a mutual savings bank under section 591(b)</quotedText>” after “<quotedText>association</quotedText>” each place it appears.</content></paragraph> </subsection> </section> <section><num value="246">SEC. 246. </num> <heading>EFFECTIVE DATES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s368">26 USC 368 note</ref>.</p></sidenote> <content class="inline">The amendment made by sections 241 and 242 shall apply to any transfer made on or after January 1, 1981.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s593">26 USC 593 note</ref>.</p></sidenote> <content class="inline">The amendment made by section 243 shall apply to any distribution made on or after January 1, 1981.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s597">26 USC 597 note</ref>.</p></sidenote> <content class="inline">The amendment made by section 244 shall apply to any payment made on or after January 1, 1981.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s591">26 USC 591 note</ref>.</p></sidenote> <content class="inline">The amendments made by section 245 shall apply with respect to taxable years ending after the date of the enactment of this Act.</content> </subsection> </section> </subtitle> <subtitle><num value="F">Subtitle F—</num><heading>Stock Options, etc.</heading> <section><num value="251">SEC. 251. </num> <heading>STOCK OPTIONS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Part II of subchapter D of chapter 1 (relating to certain stock options) is amended by adding after section 422 the following new section: <quotedContent> <section><num value="422A">“SEC. 422A. </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s422">26 USC 422A</ref>.</p></sidenote>INCENTIVE STOCK OPTIONS.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 421(a) shall apply with respect to the transfer of a share of stock to an individual pursuant to his exercise of an incentive stock option if—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>no disposition of such share is made by him within 2 years from the date of the granting of the option nor within 1 year after the transfer of such share to him, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>at all times during the period beginning on the date of the granting of the option and ending on the day 3 months before the date of such exercise, such individual was an employee of either the corporation granting such option, a parent or subsidiary corporation of such corporation, or a corporation or a parent or subsidiary corporation of such corporation issuing or assuming a stock option in a transaction to which section 425(a) applies.</content></paragraph> </subsection> <page identifier="/us/stat/95/257">95 STAT. 257</page> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Incentive Stock Option</inline>.—</heading><chapeau>For purposes of this part, the term ‘incentive stock option’ means an option granted to an individual for any reason connected with his employment by a corporation, if granted by the employer corporation or its parent or subsidiary corporation, to purchase stock of any of such corporations, but only if—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the option is granted pursuant to a plan which includes the aggregate number of shares which may be issued under options and the employees (or class of employees) eligible to receive options, and which is approved by the stockholders of the granting corporation within 12 months before or after the date such plan is adopted;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>such option is granted within 10 years from the date such plan is adopted, or the date such plan is approved by the stockholders, whichever is earlier;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>such option by its terms is not exercisable after the expiration of 10 years from the date such option is granted;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>the option price is not less than the fair market value of the stock at the time such option is granted;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>such option by its terms is not transferable by such individual otherwise than by will or the laws of descent and distribution, and is exercisable, during his lifetime, only by him;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>such individual, at the time the option is granted, does not own stock possessing more than 10 percent of the total combined voting power of all classes of stock of the employer corporation or of its parent or subsidiary corporation;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>such option by its terms is not exercisable while there is outstanding (within the meaning of subsection (c)(7)) any incentive stock option which was granted, before the granting of such option, to such individual to purchase stock in his employer corporation or in a corporation which (at the time of the granting of such option) is a parent or subsidiary corporation of the employer corporation, or in a predecessor corporation of any of such corporations; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><content>in the case of an option granted after December 31, 1980, under the terms of the plan the aggregate fair market value (determined as of the time the option is granted) of the stock for which any employee may be granted options in any calendar year (under all such plans of his employer corporation and its parent and subsidiary corporation) shall not exceed $100,000 plus any unused limit carryover to such year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Special Rules</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Exercise of option when price is less than value of stock</inline>.—</heading><content>If a share of stock is transferred pursuant to the exercise by an individual of an option which would fail to qualify as an incentive stock option under subsection (b) because there was a failure in an attempt, made in good faith, to meet the requirement of subsection (b)(4), the requirement of subsection (b)(4) shall be considered to have been met.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Certain disqualifying dispositions where amount realized is less than value at exercise</inline>.—</heading><chapeau>If—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>an individual who has acquired a share of stock by the exercise of an incentive stock option makes a disposition of such share within the 2-year period described in subsection (a)(1), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>such disposition is a sale or exchange with respect to which a loss (if sustained) would be recognized to such individual, <page identifier="/us/stat/95/258">95 STAT. 258</page> then the amount which is includible in the gross income of such individual, and the amount which is deductible from the income of his employer corporation, as compensation attributable to the exercise of such option shall not exceed the excess (if any) of the amount realized on such sale or exchange over the adjusted basis of such share.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Certain transfers by insolvent individuals</inline>.—</heading><content>If an insolvent individual holds a share of stock acquired pursuant to his exercise of an incentive stock option, and if such share is transferred to a trustee, receiver, or other similar fiduciary in any proceeding under title 11 or any other similar insolvency proceeding, neither such transfer, nor any other transfer of such share for the benefit of his creditors in such proceeding, shall constitute a disposition of such share for purposes of subsection (a)(1).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Carryover of unused limit</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>$100,000 exceeds,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the aggregate fair market value (determined as of the time the option is granted) of the stock for which an employee was granted options in any calendar year after 1980 (under all plans described in subsection (b) of his employer corporation and its parent and subsidiary corporations),</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">one-half of such excess shall be unused limit carryover to each of the 3 succeeding calendar years.</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Amount carried to each year</inline>.—</heading><content>The amount of the unused limit carryover from any calendar year which may be taken into account in any succeeding calendar year shall be the amount of such carryover reduced by the amount of such carryover which was used in prior calendar years.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Special rules</inline>.—</heading><chapeau>For purposes of subparagraph (B)—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the amount of options granted during any calendar year shall be treated as first using up the $100,000 limitation of subsection (b)(8), and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>then shall be treated as using up unused limit carryovers to such year in the order of the calendar years in which the carryovers arose.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Permissible provisions</inline>.—</heading><chapeau>An option which meets the requirements of subsection (b) shall be treated as an incentive stock option even if—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the employee may pay for the stock with stock of the corporation granting the option,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the employee has a right to receive property at the time of exercise of the option, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>the option is subject to any condition not inconsistent with the provisions of subsection (b).</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">Subparagraph (B) shall apply to a transfer of property (other than cash) only if section 83 applies to the property so transferred.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num> <heading><inline class="smallCaps">Coordination with sections 422 and 424</inline>.—</heading><content>Sections 422 and 424 shall not apply to an incentive stock option.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num> <heading><inline class="smallCaps">Options outstanding</inline>.—</heading><content>For purposes of subsection (b)(7), any incentive stock option shall be treated as outstanding until such option is exercised in full or expires by reason of lapse of time.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num> <heading><inline class="smallCaps">10-percent shareholder rule</inline>.—</heading><content>Subsection (b)(6) shall not apply if at the time such option is granted the option price is <page identifier="/us/stat/95/259">95 STAT. 259</page> at least 110 percent of the fair market value of the stock subject to the option and such option by its terms is not exercisable after the expiration of 5 years from the date such option is granted.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">“(9) </num> <heading><inline class="smallCaps">Special rule when disabled</inline>.—</heading><content>For purposes of subsection (a)(2), in the case of an employee who is disabled (within the meaning of section 105(d)(4)), the 3-month period of subsection (a)(2) shall be 1 year.”</content></paragraph> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Technical and Conforming Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>Section 421 (relating to general rules in the case of stock <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s421">26 USC 421</ref>.</p></sidenote> options) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>422A(a),</quotedText>” after “<quotedText>422(a),</quotedText>” in subsections (a), (b), and (c)(1)(A), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by inserting “<quotedText>422A(a)(1),</quotedText>” after “<quotedText>section 422(a)(1),</quotedText>” in subsection (b).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 425(d) (relating to attribution of stock ownership) is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s425">26 USC 425</ref>.</p></sidenote> amended by inserting “<quotedText>422A(b)(6),</quotedText>” after “<quotedText>422(b)(7),</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Section 425(g) (relating to special rules) is amended by inserting “<quotedText>422A(a)(2),</quotedText>” after “<quotedText>422(a)(2),</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Section 425(h)(3)(B) (relating to definition of modification) is amended by inserting “<quotedText>422A(b)(5),</quotedText>” after “<quotedText>422(b)(6),</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><chapeau>Section 6039 (relating to information required in connection <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6039">26 USC 6039</ref>.</p></sidenote> with certain options) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>, an incentive stock option,</quotedText>” after “qualified stock option in subsection (a)(1),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by inserting “<quotedText>incentive stock option,</quotedText>” after “<quotedText>qualified stock option,</quotedText>” in subsection (b)(1), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by adding at the end of subsection (c) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>The term ‘incentive stock option’, see section 422A(b).”</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(6) </num><content>The table of sections for part II of subchapter D of chapter 1 is amended by inserting after the item relating to section 422 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 422A.</designator> <label>Incentive stock options.”</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Effective Dates and Transitional Rules</inline>.—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s422A">26 USC 422A note</ref>.</p></sidenote></heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Options to which section applies</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in subparagraph (B), the amendments made by this section shall apply with respect to options granted on or after January 1, 1976, and exercised on or after January 1, 1981, or outstanding on such date.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <heading><inline class="smallCaps">Election and designation of options</inline>.—</heading><content>In the case of an option granted before January 1, 1981, the amendments made by this section shall apply only if the corporation granting such option elects (in the manner and at the time prescribed by the Secretary of the Treasury or his delegate) to have the amendments made by this section apply to such option. The aggregate fair market value (determined at the time the option is granted) of the stock for which any employee was granted options (under all plans of his employer corporation and its parent and subsidiary corporations) to which the amendments made by this section apply by reason of this subparagraph shall not exceed $50,000 per calendar year and shall not exceed $200,000 in the aggregate.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Changes in terms of options</inline>.—</heading><content>In the case of an option granted on or after January 1, 1976, and outstanding on the date of the enactment of this Act, paragraph (1) of section 425(h) of the <page identifier="/us/stat/95/260">95 STAT. 260</page> Internal Revenue Code of 1954 shall not apply to any change in the terms of such option (or the terms of the plan under which granted, including shareholder approval) made within 1 year after such date of enactment to permit such option to qualify as a incentive stock option.</content></paragraph> </subsection> </section> <section><num value="252">SEC. 252. </num> <heading>PROPERTY TRANSFERRED TO EMPLOYEES SUBJECT TO CERTAIN RESTRICTIONS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s83">26 USC 83</ref>.</p></sidenote><inline class="smallCaps">General Rule</inline>.—</heading><content>Subsection (c) of section 83 (relating to special rules) is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Sales which may give rise to suit under section 16(b) of the securities and exchange act of 1934</inline>.—</heading><chapeau>So long as the sale of property at a profit could subject a person to suit under section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s78p">15 USC 78p</ref>.</p></sidenote> 16(b) of the Securities and Exchange Act of 1934, such person’s rights in such property are—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>subject to a substantial risk of forfeiture, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>not transferable.”</content></subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s83">26 USC 83 note</ref>.</p></sidenote><inline class="smallCaps">Special Rule for Certain Accounting Rules</inline>.—</heading><content>For purposes of section 83 of the Internal Revenue Code of 1954, property is subject to substantial risk of forfeiture and is not transferable so long as such property is subject to a restriction on transfer to comply with the “Pooling-of-interests Accounting” rules set forth in Accounting Series Release Numbered 130 ((10/5/72) 37 FR 20937; 17 CFR 211.130) and Accounting Series Release Numbered 135 ((1/18/73) 38 FR 1734; 17 CFR 211.135).</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s83">26 USC 83 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) and the provisions of subsection (b) shall apply to taxable years ending after December 31, 1981.</content> </subsection> </section> </subtitle> <subtitle><num value="G">Subtitle G—</num><heading>Miscellaneous Provisions</heading> <section><num value="261">SEC. 261. </num> <heading>ADJUSTMENTS TO NEW JOBS CREDIT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s51">26 USC 51</ref>.</p></sidenote><inline class="smallCaps">Extension</inline>.—</heading><content>Paragraph (4) of section 51(c) (defining wages) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8">“Wages.”</p></sidenote><inline class="smallCaps">Termination</inline>.—</heading><content>The term ‘wages’ shall not include any amount paid or incurred to an individual who begins work for the employer after December 31, 1982.”</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Individuals Qualifying as Members of a Targeted Group</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (1) of section 51(d) (defining members of targeted groups) is amended by striking out “<quotedText>or</quotedText>” at the end of subparagraph (F), by striking out the period at the end of subparagraph (G) and inserting in lieu thereof a comma, and by adding at the end thereof the following new subparagraphs: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="H">“(H) </num><content>an eligible work incentive employee, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>an involuntarily terminated CETA employee.”.</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Definitions</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (d) of section 51 is amended by redesignating paragraphs (9), (10), (11), and (12) as paragraphs (11), (12), (13), and (14), respectively, and by inserting after paragraph (8) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="9">“(9) </num> <heading><inline class="smallCaps">Eligible work incentive employees</inline>.—</heading><chapeau>The term ‘eligible work incentive employee’ means an individual who has been certified by the designated local agency as—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>being eligible for financial assistance under part A of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s601">42 USC 601</ref>.</p></sidenote> title IV of the Social Security Act and as having continually received such financial assistance during the 90-day period <page identifier="/us/stat/95/261">95 STAT. 261</page> which immediately precedes the date on which such individual is hired by the employer, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>having been placed in employment under a work incentive program established under section 432(b)(1) of the Social Security Act. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s632">42 USC 632</ref>.</p></sidenote></content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">“(10) </num> <heading><inline class="smallCaps">Involuntarily terminated ceta employee</inline>.—</heading><content>The term ‘involuntarily terminated CETA employee’ means an individual who is certified by the designated local agency as having been involuntarily terminated after December 31, 1980, from employment financed in whole or in part under a program under part D of title II or title VI of the Comprehensive Employment and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s853/961">29 USC 853, 961</ref>.</p></sidenote> Training Act.”</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>Subsection (a) of section 50B (relating to definitions <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s50B">26 USC 50B</ref>.</p></sidenote> and special rules) is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Termination</inline>.—</heading><content>The term ‘work incentive program expenses’ shall not include any amount paid or incurred in any taxable year beginning after December 31, 1981.”</content></paragraph> </quotedContent> </content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>Subsection (c) of section 51 (defining wages) is amended by striking out paragraph (3) and redesignating paragraph (4) as paragraph (3).</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>Paragraphs (3)(A)(ii), (4)(C), and (7)(B) of section 51(d) are each amended by striking out “<quotedText>paragraph (9)</quotedText>” <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s51">26 USC 51</ref>.</p></sidenote> and inserting in lieu thereof “<quotedText>paragraph (11)</quotedText>”.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">Removal of age limitation on vietnam veterans</inline>.—</heading><chapeau>Paragraph (4) of section 51(d) (relating to Vietnam veterans) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>and</quotedText>” at the end of subparagraph (B),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>, and</quotedText>” at the end of subparagraph (C) and inserting in lieu thereof a period, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out subparagraph (D).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <heading><inline class="smallCaps">Youths participating in qualified cooperative education programs must be economically disadvantaged</inline>.—</heading><content>Subparagraph (A) of section 51(d)(8) is amended by striking out “<quotedText>and</quotedText>” at the end of clause (ii), by striking out the period at the end of clause (iii) and inserting in lieu thereof “<quotedText>, and</quotedText>”, and by adding at the end thereof the following new clause: <quotedContent> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>being a member of an economically disadvantaged family (as determined under paragraph (11)).”</content> </clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Certifications</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Certifications must be made before employee begins work, etc</inline>.—</heading><content>Subsection (d) of section 51 is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="15">“(15) </num> <heading><inline class="smallCaps">Special rules for certifications</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>An individual shall not be treated as a member of a targeted group unless, before the day on which such individual begins work for the employer, the employer—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>has received a certification from a designated local agency that such individual is a member of a targeted group, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>has requested in writing such certification from the designated local agency.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Incorrect certifications</inline>.—</heading><chapeau>If—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>an individual has been certified as a member of a targeted group, and</content> </clause> <page identifier="/us/stat/95/262">95 STAT. 262</page> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>such certification is incorrect because it was based on false information provided by such individual,</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">the certification shall be revoked and wages paid by the employer after the date on which notice of revocation is received by the employer shall not be treated as qualified wages.”</continuation> </subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Certification of economically disadvantaged families</inline>.—</heading><content>Paragraph (11) of section 51(d) (as redesignated by subsection (b)(2)(A)) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="11">“(11) </num> <heading><inline class="smallCaps">Members of economically disadvantaged families</inline>.—</heading><content>An individual is a member of an economically disadvantaged family if the designated local agency determines that such individual was a member of a family which had an income during the 6 months immediately preceding the month in which such determination occurs, which, on an annual basis, would be 70 percent or less of the Bureau of Labor Statistics lower living standard. Any such determination shall be valid for the 45-day period beginning on the date such determination is made.”</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s51">26 USC 51</ref>.</p></sidenote><inline class="smallCaps">Eligibility</inline>.—</heading><content>Section 51 is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">Certain Individuals Ineligible</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Related Individuals</inline>.—</heading><chapeau>No wages shall be taken into account under subsection (a) with respect to an individual who—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>bears any of the relationships described in paragraphs (1) through (8) of section 152(a) to the taxpayer, or, if the taxpayer is a corporation, to an individual who owns, directly or indirectly, more than 50 percent in value of the outstanding stock of the corporation (determined with the application of section 267(c)),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>if the taxpayer is an estate or trust, is a grantor, beneficiary, or fiduciary of the estate or trust, or is an individual who bears any of the relationships described in paragraphs (1) through (8) of section 152(a) to a grantor, beneficiary, or fiduciary of the estate or trust, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>is a dependent (described in section 152(a)(9)) of the taxpayer, or, if the taxpayer is a corporation, of an individual described in subparagraph (A), or, if the taxpayer is an estate or trust, of a grantor, beneficiary, or fiduciary of the estate or trust.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Nonqualifying rehires</inline>.—</heading><content>No wages shall be taken into account under subsection (a) with respect to any individual if, prior to the hiring date of such individual, such individual had been employed by the employer at any time during which he was not a member of a targeted group.”</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <heading><inline class="smallCaps">Repeal of Provision Limiting First-Year Wages to 30 Percent of FUTA Wages</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Subsection (e) of section 51 is hereby repealed.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Subsection (f) of section 51 is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out paragraph (3), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>any year</quotedText>” in paragraphs (1) and (2) and inserting in lieu thereof “<quotedText>any taxable year</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <heading><inline class="smallCaps">Administration, Authorization of Appropriations</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Administration</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <heading><inline class="smallCaps">Designated local agency</inline>.—</heading><content>Paragraph (14) of section 51(d) (as redesignated by subsection (b)(2)(A)) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="14">“(14) </num> <heading><inline class="smallCaps">Designated local agency</inline>.—</heading><content>The term ‘designated local agency’ means a State employment security agency established <page identifier="/us/stat/95/263">95 STAT. 263</page> in accordance with the Act of June 6, 1933, as amended (29 U.S.C. 49–49n).”</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <heading><inline class="smallCaps">Notification</inline>.—</heading><content>Subsection (g) of section 51 (relating to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s51">26 USC 51</ref>.</p></sidenote> notification of employers) is amended by striking out “<quotedText>Secretary of Labor</quotedText>” each place it appears in the heading and text and inserting in lieu thereof “<quotedText>United States Employment Service</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Authorization of appropriations</inline>.—</heading><chapeau>There is authorized to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s51">26 USC 51 note</ref>.</p></sidenote> be appropriated for fiscal year 1982 the sum of $30,000,000 to carry out the functions described by the amendments made by paragraph (1), except that, of the amounts appropriated pursuant to this paragraph—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>$5,000,000 shall be used to test whether individuals certified as members of targeted groups under section 51 of such Code are eligible for such certification (including the use of statistical sampling techniques), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>the remainder shall be distributed under performance standards prescribed by the Secretary of Labor.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num> <heading><inline class="smallCaps">Effective Dates</inline>.—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s51">26 USC 51 note</ref>.</p></sidenote></heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Amendments relating to members of targeted groups</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in subparagraphs (B), (C), and (D), the amendments made by subsections (b), (c)(2), and (d) shall apply to wages paid or incurred with respect to individuals first beginning work for an employer after the date of the enactment of this Act in taxable years ending after such date.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <heading><inline class="smallCaps">Eligible work incentive employees</inline>.—</heading><content>The amendments made by subsection (b)(2)(A) to the extent relating to the designation of eligible work incentive employees (within the meaning of section 51(d)(9) of the Internal Revenue Code of 1954) as members of a targeted group and subsection (b)(2)(B)(ii) shall apply to taxable years beginning after December 31, 1981. In the case of an eligible work incentive employee, subsections (a) and (b) of section 51 of such Code shall be applied for taxable years beginning after December 31, 1981, as if such employees had been members of a targeted group for taxable years beginning before January 1, 1982.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num> <heading><inline class="smallCaps">Cooperative education program participants</inline>.—</heading><content>The amendments made by subsection (b)(4) shall apply to wages paid or incurred after December 31, 1981, in taxable years ending after such date.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num> <heading><inline class="smallCaps">Designated local agency</inline>.—</heading><content>The amendments made by subsection (f)(1) shall take effect on the date 60 days after the date of the enactment of this Act.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Certifications</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendment made by subsection (c)(1) shall apply to all individuals whether such individuals began work for their employer before, on, or after the date of the enactment of this Act.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <heading><inline class="smallCaps">Special rule for individuals who began work for the employer before 45th day before date of enactment</inline>.—</heading><content>In the case of any individual (other than an individual described in section 51(d)(8) of the Internal Revenue Code of 1954) who began work for the employer before the date 45 days before the date of the enactment of this Act, paragraph (15) of section 51(d) of the Internal Revenue Code of 1954 (as added by subsection (c)(1)) shall be applied by <page identifier="/us/stat/95/264">95 STAT. 264</page> substituting “<quotedText>July 23, 1981,</quotedText>” for the day on which such individual begins work for the employer.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num> <heading><inline class="smallCaps">Individuals who begin work for employer within 45 days before or after date of enactment</inline>.—</heading><content>In the Case of any individual (other than an individual described in section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s51">26 USC 51</ref>.</p></sidenote> 51(d)(8) of the Internal Revenue Code of 1954) who begins work for the employer during the 90-day period beginning with the date 45 days before the date of the enactment of this Act, and in the case of an individual described in section 51(d)(8) of such Code who begins work before the end of such 90-day period, paragraph (15) of section 51(d) of such Code (as added by subsection (c)(1)) shall be applied by substituting “<quotedText>the last day of the 90-day period beginning with the date 45 days before the date of the enactment of this Act</quotedText>” for the day on which such individual begins work for the employer.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">Limitation on qualified first-year wages</inline>.—</heading><content>The amendment made by subsection (e) shall apply to taxable years beginning after December 31, 1981.</content></paragraph> </subsection> </section> <section><num value="262">SEC. 262. </num> <heading>SECTION 189 MADE INAPPLICABLE TO LOW-INCOME HOUSING.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>The table contained in subsection (b) of section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s189">26 USC 189</ref>.</p></sidenote> 189 (relating to amortization of real property construction period, interest, and taxes) is amended by striking out the column relating to “Low-income housing”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Subsection (d) of section 189 (relating to certain residential property excluded) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Certain Property Excluded</inline>.—</heading><chapeau>This section shall not apply to any—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>low-income housing, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>real property acquired, constructed, or carried if such property is not, and cannot reasonably expected to be, held in a trade or business, or in an activity conducted for profit.”</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s189">26 USC 189 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to taxable years beginning after December 31, 1981.</content> </subsection> </section> <section><num value="263">SEC. 263. </num> <heading>INCREASE IN DEDUCTION ALLOWABLE TO A CORPORATION IN ANY TAXABLE YEAR FOR CHARITABLE CONTRIBUTIONS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s170">26 USC 170</ref>.</p></sidenote><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (2) of section 170(b) (relating to percentage limitations) is amended by striking out “<quotedText>5 percent</quotedText>” and inserting in lieu thereof “<quotedText>10 percent</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s170">26 USC 170 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to taxable years beginning after December 31, 1981.</content> </subsection> </section> <section><num value="264">SEC. 264. </num> <heading>AMORTIZATION OF LOW-INCOME HOUSING.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s167">26 USC 167</ref>.</p></sidenote><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (2) of section 167(k) (relating to rehabilitation of low-income rental housing) is amended by striking out “<quotedText>The</quotedText>” in subparagraph (A) and inserting in lieu thereof “<quotedText>Except as provided in subparagraph (B), the</quotedText>”, by redesignating subparagraph (B) as subparagraph (C), and by inserting after subparagraph (A) the following: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>The aggregate amount of rehabilitation expenditures paid or incurred by the taxpayer with respect to any dwelling unit in any low-income rental housing which may be taken into account under paragraph (1) may exceed $20,000, but shall not exceed $40,000, if the rehabilitation is conducted pursuant to a program certified by the Secretary of Housing and Urban Development, or his delegate, or by the <page identifier="/us/stat/95/265">95 STAT. 265</page> government of a State or political subdivision of the United States and if:</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the certification of development costs is required;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the tenants occupy units in the property as their principal residence and the program provides for sale of the units to tenants demonstrating home ownership responsibility; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>the leasing and sale of such units are pursuant to a program in which the sum of the taxable income, if any, from leasing of each such unit, for the entire period of such leasing, and the amount realized from sale or other disposition of a unit, if sold, normally does not exceed the excess of the taxpayer’s cost basis for such unit of property, before adjustment under section 1016 for deductions under section 167, over the net tax benefits realized by the taxpayer, consisting of the tax benefits from such deductions under section 167 minus the tax incurred on such taxable income from leasing, if any.”</content> </clause> </subparagraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s167">26 USC 167 note</ref>.</p></sidenote> apply with respect to rehabilitation expenditures incurred after December 31, 1980.</content> </subsection> </section> <section><num value="265">SEC. 265. </num> <heading>DEDUCTIBILITY OF GIFTS BY EMPLOYERS TO EMPLOYEES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subparagraph (C) of section 274(b)(1) (relating to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s274">26 USC 274</ref>.</p></sidenote> limitation on deductibility of gifts) is amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><chapeau>an item of tangible personal property which is awarded to an employee by reason of length of service, productivity, or safety achievement, but only to the extent that—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the cost of such item to the taxpayer does not exceed $400, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>such item is a qualified plan award.”</content> </clause> </subparagraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Qualified Plan Award Defined</inline>.—</heading><content>Subsection (b) of section 274 is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Qualified plan award</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘qualified plan award’ means an item which is awarded as part of a permanent, written plan or program of the taxpayer which does not discriminate in favor of officers, shareholders, or highly compensated employees as to eligibility or benefits.</content> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Average amount of awards</inline>.—</heading><content>An item shall not be treated as a qualified plan award for any taxable year if the average cost of all items awarded under all plans described in subparagraph (A) of the taxpayer during the taxable year exceeds $400.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Maximum amount per item</inline>.—</heading><content>An item shall not be treated as a qualified plan award under this paragraph to the extent that the cost of such item exceeds $1,600.”</content></subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s274">26 USC 274 note</ref>.</p></sidenote> apply to taxable years ending on or after the date of the enactment of this Act.</content> </subsection> </section> <section><num value="266">SEC. 266. </num> <heading>DEDUCTION FOR MOTOR CARRIER OPERATING AUTHORITY. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s165">26 USC 165 note</ref>.</p></sidenote></heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>For purposes of chapter 1 of the Internal Revenue Code of 1954, in computing the taxable income of a taxpayer <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1">26 USC 1 <i>et seq</i></ref>.</p></sidenote> <page identifier="/us/stat/95/266">95 STAT. 266</page> who, on July 1, 1980, held one or more motor carrier operating authorities, an amount equal to the aggregate adjusted basis of all motor carrier operating authorities held by the taxpayer on July 1, 1980, or acquired subsequent thereto pursuant to a binding contract in effect on July 1, 1980, shall be allowed as a deduction ratably over a period of 60 months. Such 60-month period shall begin with the month of July 1980 (or if later, the month in which acquired), or at the election of the taxpayer, the first month of the taxpayer’s first taxable year beginning after July 1, 1980.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Definition of Motor Carrier Operating Authority</inline>.—</heading><content>For purposes of this section, the term “motor carrier operating authority” means a certificate or permit held by a motor common or contract carrier of property and issued pursuant to subchapter II of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s10921">49 USC 10921</ref>.</p></sidenote> chapter 109 of title 49 of the United States Code.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Special Rules</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Adjusted basis</inline>.—</heading><content>For purposes of the Internal Revenue <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1">26 USC 1 <i>et seq</i></ref>.</p></sidenote> Code of 1954, proper adjustments shall be made in the adjusted basis of any motor carrier operating authority held by the taxpayer on July 1, 1980, for the amounts allowable as a deduction under this section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Certain stock acquisitions</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Under regulations prescribed by the Secretary of the Treasury or his delegate, and at the election of the holder of the authority, in any case in which a corporation—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>on or before July 1, 1980 (or after such date pursuant to a binding contract in effect on such date), acquired stock in a corporation which held, directly or indirectly, any motor carrier operating authority at the time of such acquisition, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>would have been able to allocate to the basis of such authority that portion of the acquiring corporation’s cost basis in such stock attributable to such authority if the acquiring corporation had received such authority in the liquidation of the acquired corporation immediately following such acquisition and such allocation would have been proper under section 334(b)(2) of such Code,</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">the holder of the authority may, for purposes of this section, allocate a portion of the basis of the acquiring corporation in the stock of the acquired corporation to the basis of such authority in such manner as the Secretary may prescribe in such regulations.</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <heading><inline class="smallCaps">Adjustment to basis</inline>.—</heading><content>Under regulations prescribed by the Secretary of the Treasury or his delegate, proper adjustment shall be made to the basis of the stock or other assets in the manner provided by such regulations to take into account any allocation under subparagraph (A).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The provisions of this section shall apply to taxable years ending after June 30, 1980.</content> </subsection> </section> <section><num value="267">SEC. 267. </num> <heading>LIMITATION ON ADDITIONS TO BANK LOSS RESERVES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>The first sentence after subparagraph (B) of paragraph (2) of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s585">26 USC 585</ref>.</p></sidenote> section 585(b) is amended by striking out “<quotedText>but before 1982; and 0.6 percent for taxable years beginning after 1981</quotedText>” and inserting in lieu thereof “<quotedText>but before 1982; 1.0 percent for taxable years <page identifier="/us/stat/95/267">95 STAT. 267</page> beginning in 1982; and 0.6 percent for taxable years beginning after 1982</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The last sentence of paragraph (2) of section 585(b) is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s585">26 USC 585</ref>.</p></sidenote> amended by striking out “<quotedText>but before 1982, the last taxable year beginning before 1976, and for taxable years beginning after 1981, the last taxable year beginning before 1982</quotedText>” and inserting in lieu thereof “<quotedText>but before 1983, the last taxable year beginning before 1976, and for taxable years beginning after 1982, the last taxable year beginning before 1983</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s585">26 USC 585 note</ref>.</p></sidenote> apply to taxable years beginning after 1981.</content> </subsection> </section> </subtitle> <num value="III">TITLE III—</num><heading>SAVINGS PROVISIONS</heading> <subtitle><num value="A">Subtitle A—</num><heading>Interest Exclusion</heading> <section><num value="301">SEC. 301. </num> <heading>EXCLUSION OF INTEREST ON CERTAIN SAVINGS CERTIFICATES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Part III of subchapter B of chapter 1 (relating to items specifically excluded from gross income) is amended by redesignating section 128 as section 129 and by inserting after section 127 the following new section: <quotedContent> <section><num value="128">“SEC. 128. </num> <heading>INTEREST ON CERTAIN SAVINGS CERTIFICATES. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s128">26 USC 128</ref>.</p></sidenote></heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Gross income does not include any amount received by any individual during the taxable year as interest on a depository institution tax-exempt savings certificate.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Maximum Dollar Amount</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The aggregate amount excludable under subsection (a) for any taxable year shall not exceed the excess of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>$1,000 ($2,000 in the case of a joint return under section 6013), over</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the aggregate amount received by the taxpayer which was excludable under subsection (a) for any prior taxable year.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><content>For purposes of paragraph (1)(B), one-half of the amount excluded under subsection (a) on any joint return shall be treated as received by each spouse.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Depository Institution Tax-Exempt Savings Certificate</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘depository institution tax-exempt savings certificate’ means any certificate—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>which is issued by a qualified savings institution after September 30, 1981, and before January 1, 1983,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>which has a maturity of 1 year,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>which has an investment yield equal to 70 percent of the average investment yield for the most recent auction (before the week in which the certificate is issued) of United States Treasury bills with maturities of 52 weeks, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>which is made available in denominations of $500.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Qualified institution</inline>.—</heading><chapeau>The term ‘qualified institution’ means—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><clause class="inline"><num value="i">(i) </num><content>a bank (as defined in section 581),</content> </clause> <clause class="indent2 firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>a mutual savings bank, cooperative bank, domestic building and loan association, or other savings institution chartered and supervised as a savings and loan or similar institution under Federal or State law, or</content> </clause> <page identifier="/us/stat/95/268">95 STAT. 268</page> <clause class="indent2 firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>a credit union,</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">the deposits or accounts of which are insured under Federal or State law or are protected or guaranteed under State law, or</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>an industrial loan association or bank chartered and supervised under Federal or State law in a manner similar to a savings and loan institution.</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">The term “qualified institution” does not include any foreign branch or international banking facility of an institution described in the preceding sentence and such a branch or facility shall not be taken into account under subsection (d).</continuation> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Institutions Required to Provide Residential Property Financing</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If a qualified savings institution (other than an institution described in subsection (c)(2)(A)(iii)) issues any depository institution tax-exempt savings certificate during any calendar quarter, the amount of the qualified residential financing provided by such institution shall during the succeeding calendar quarter not be less than the lesser of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>75 percent of the face amount of depository institution tax-exempt savings certificates issued during the calendar quarter, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>75 percent of the qualified net savings for the calendar quarter.</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">The aggregate amount of qualified tax-exempt savings certificates issued by any institution described in subsection (c)(2)(A)(iii) which are outstanding at the close of any calendar quarter may not exceed the limitation determined under paragraph (4) with respect to such institution for such quarter.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Penalty for failure to meet requirements</inline>.—</heading><content>If, as of the close of any calendar quarter, a qualified institution has not met the requirements of paragraph (1) with respect to the preceding calendar quarter, such institution may not issue any certificates until it meets such requirements.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Qualified residential financing</inline>.—</heading><chapeau>The term ‘qualified residential financing’ includes, and is limited to—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>any loan secured by a lien on a single-family or multifamily residence,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>any secured or unsecured qualified home improvement loan (within the meaning of section 103A(l)(6) without regard to the $15,000 limit),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>any mortgage (within the meaning of section 103A(l)(1)) on a single-family or multifamily residence which is insured or guaranteed by the Federal, State, or local government or any instrumentality thereof,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>any loan to acquire a mobile home,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>any construction loan for the construction or rehabilitation of a single-family or multifamily residence,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num><content>the purchase of mortgages secured by single-family or multifamily residences on the secondary market but only to the extent the amount of such purchases exceed the amount of sales of such mortgages by an institution,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="G">“(G) </num><content>the purchase of securities issued or guaranteed by the Federal National Mortgage Association, the Government National Mortgage Association, or the Federal Home Loan Mortgage Corporation, or securities issued by any other person if such securities are secured by mortgages originated by a qualified institution, but only to the extent the amount <page identifier="/us/stat/95/269">95 STAT. 269</page> of such purchases exceed the amount of sales of such securities by an institution, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="H">“(H) </num><content>any loan for agricultural purposes.</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">For purposes of this paragraph, the term ‘single-family residence’ includes 2-, 3-, and 4-family residences, and the term <sidenote><p class="indent0 firstIndent0 fontsize8">“Single-family residence” and “residence.”</p></sidenote> ‘residence’ includes stock in a cooperative housing corporation (as defined in section 216(b)).</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Limitation for credit unions</inline>.—</heading><chapeau>For purposes of paragraph (1), the limitation determined under this paragraph with respect to any institution described in subsection (c)(2)(A)(iii) for any calendar quarter is the sum of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the aggregate of the amounts described in subparagraph (A) of paragraph (5) with respect to such institution as of September 30, 1981, plus</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>10 percent of the excess of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the aggregate of such amounts as of the close of such calendar quarter, over</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the amount referred to in subparagraph (A).</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Qualified net savings</inline>.—</heading><chapeau>The term ‘qualified net savings’ means, with respect to any qualified institution, the excess of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the amounts paid into passbook savings account, 6-month money market certificates, 30-month small-saver certificates, time deposits with a face amount of less than $100,000, and depository institution tax-exempt savings certificates issued by such institution, over</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the amounts withdrawn or redeemed in connection with the accounts and certificates described in subparagraph (A).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num> <heading><inline class="smallCaps">Consolidated groups</inline>.—</heading><content>For purposes of this subsection, all members of the same affiliated group (as defined in section 1504) which file a consolidated return for the taxable year shall be treated as 1 corporation.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <heading><inline class="smallCaps">Penalty for Early Withdrawals</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If any portion of a depository institution tax-exempt savings certificate is redeemed before the date on which it matures—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>subsection (a) shall not apply to any interest on such certificate for the taxable year of redemption and any subsequent taxable year, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>there shall be included in gross income for the taxable year of redemption the amount of any interest on such certificate excluded under subsection (a) for any preceding taxable year.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Certificate pledged as collateral</inline>.—</heading><content>For purposes of paragraph (1), if the taxpayer uses any depository institution tax-exempt savings certificate (or portion thereof) as collateral or security for a loan, the taxpayer shall be treated as having redeemed such certificate.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <heading><inline class="smallCaps">Other Special Rules</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Coordination with section 116</inline>.—</heading><content>Section 116 shall not apply to the interest on any depository institution tax-exempt savings certificate.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Estates and trusts</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in subparagraph (B), the exclusion provided by this section shall not apply to estates and trusts.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Certificates acquired by estate from decedent</inline>.—</heading><chapeau>In the case of a depository institution tax-exempt savings <page identifier="/us/stat/95/270">95 STAT. 270</page> certificate acquired by an estate by reason of the death of the decedent—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>subparagraph (A) shall not apply, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>subsection (b) shall be applied as if the estate were the decedent.”</content> </clause> </subparagraph> </paragraph> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>The table of sections for part III of subchapter B of chapter 1 is amended by striking out the item relating to section 128 and inserting in lieu thereof the following new items: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 128.</designator> <label>Interest on certain savings certificates.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 129.</designator> <label>Cross references to other Acts.”</label></referenceItem> </toc> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s265">26 USC 265</ref>.</p></sidenote> <content class="inline">Section 265 (relating to expenses and interest relating to tax-exempt income) is amended by inserting “<quotedText>, or to purchase or carry any certificate to the extent the interest on such certificate is excludable under section 128</quotedText>” after “<quotedText>116</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s584">26 USC 584</ref>.</p></sidenote> <content class="inline">Paragraph (2) of section 584(c) (relating to income of participants in common trust funds), as in effect for taxable years beginning in 1981, is amended by inserting “<quotedText>or 128</quotedText>” after 116”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s643">26 USC 643</ref>.</p></sidenote> <content class="inline">Paragraph (7) of section 643(a) (defining distributable net income), as in effect for taxable years beginning in 1981, is amended by inserting “<quotedText>or section 128 (relating to interest on certain savings certificates)</quotedText>” after “<quotedText>received)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s702">26 USC 702</ref>.</p></sidenote> <content class="inline">Section 702(a)(5) (relating to income and credits of partners), as in effect for taxable years beginning in 1981, is amended by inserting “<quotedText>or 128</quotedText>” after “<quotedText>116</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><chapeau>Each of the following provisions, as in effect for taxable years beginning after December 31, 1981, are amended by inserting “<quotedText>or interest</quotedText>” after “<quotedText>dividends</quotedText>” each place it appears in the caption or text:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/306">94 Stat. 306</ref>.</p></sidenote> <content class="inline">section 584(c)(2),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>section 643(a)(7),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>section 702(a)(5).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s128">26 USC 128 note</ref>.</p></sidenote><inline class="smallCaps">Study</inline>.—</heading><content>The Secretary of the Treasury or his delegate shall conduct a study of the exemption from income of interest earned on depository institution tax-exempt savings certificates established by this section to determine the exemption’s effectiveness in generating <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote> additional savings. Such report shall be submitted to the Congress before June 1, 1983.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s128">26 USC 128 note</ref>.</p></sidenote><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years ending after September 30, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading><content>The amendments made by subsection (b)(6) shall apply to taxable years beginning after December 31, 1981.</content></paragraph> </subsection> </section> <section><num value="302">SEC. 302. </num> <heading>PARTIAL EXCLUSION OF INTEREST.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 267.</p></sidenote><inline class="smallCaps">Amount of Exclusion</inline>.—</heading><content>Section 128 (relating to the interest on certain savings certificates) is amended to read as follows: <quotedContent> <section><num value="128">“SEC. 128. </num> <heading>PARTIAL EXCLUSION OF INTEREST.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Gross income does not include the amounts received during the taxable year by an individual as interest.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Maximum Dollar Amount</inline>.—</heading><chapeau>The aggregate amount excludable under subsection (a) for any taxable year shall not exceed 15 percent of the lesser of—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>$3,000 ($6,000 in the case of a joint return under section 6013), or</content></paragraph> <page identifier="/us/stat/95/271">95 STAT. 271</page> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the excess of the amount of interest received by the taxpayer during such taxable year (less the amount of any deduction under section 62(12)) over the amount of qualified <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s62">26 USC 62</ref>.</p></sidenote> interest expenses of such taxpayer for the taxable year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Interest defined</inline>.—</heading><chapeau>The term ‘interest’ means—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>interest on deposits with a bank (as defined in section 581),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>amounts (whether or not designated as interest) paid, in respect of deposits, investment certificates, or withdrawable or repurchasable shares, by—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><chapeau>an institution which is—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>a mutual savings bank, cooperative bank, domestic building and loan association, or credit union, or</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>any other savings or thrift institution which is chartered and supervised under Federal or State law,</content> </subclause> <continuation class="indent3 firstIndent0 fontsize10">the deposits or accounts in which are insured under Federal or State law or which are protected and guaranteed under State law, or</continuation> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>an industrial loan association or bank chartered and supervised under Federal or State law in a manner similar to a savings and loan institution.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><chapeau>interest on—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>evidences of indebtedness (including bonds, debentures, notes, and certificates) issued by a domestic corporation in registered form, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>to the extent provided in regulations prescribed by the Secretary, other evidences of indebtedness issued by a domestic corporation of a type offered by corporations to the public,</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>interest on obligations of the United States, a State, or a political subdivision of a State (not excluded from gross income of the taxpayer under any other provision of law),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>interest attributable to participation shares in a trust established and maintained by a corporation established pursuant to Federal law, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num><chapeau>interest paid by an insurance company under an agreement to pay interest on—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>prepaid premiums,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>life insurance policy proceeds which are left on deposit with such company by a beneficiary, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>under regulations prescribed by the Secretary, policyholder dividends left on deposit with such company.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Qualified interest expense defined</inline>.—</heading><chapeau>The term ‘qualified interest expense’ means an amount equal to the excess of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the amount of the deduction allowed the taxpayer under section 163(a) (relating to interest) for the taxable year, over</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>the amount of such deduction allowed with respect to interest paid or accrued on indebtedness incurred in—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>acquiring, constructing, reconstructing, or rehabilitating property which is primarily used by the taxpayer as a dwelling unit (as defined in section 280A(f)(1)), or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the taxpayer’s conduct of a trade or business.”</content> </clause> </subparagraph> </paragraph> </subsection> </section> </quotedContent> </content> </subsection> <page identifier="/us/stat/95/272">95 STAT. 272</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Repeal of Partial Exclusion of Interest</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (c) of section 404 of the Crude Oil <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/305">94 Stat. 305</ref>.</p> <p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s116">26 USC 116 note</ref>.</p></sidenote> Windfall Profit Tax Act of 1980 is amended by striking out “<quotedText>1983</quotedText>” and inserting in lieu thereof “<quotedText>1982</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s116">26 USC 116</ref>.</p></sidenote><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Section 116(a) (relating to partial exclusion of dividends) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Exclusion From Gross Income</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Gross income does not include amounts received by an individual as dividends from domestic corporations.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Maximum dollar amount</inline>.—</heading><content>The aggregate amount excluded under subsection (a) for any taxable year shall not exceed $100 ($200 in the case of a joint return under section 6013).”</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>The table of sections for part III of subchapter B of chapter 1, as amended by section 301(b)(1), is amended by striking out the item relating to section 128 and inserting in lieu thereof the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 128.</designator> <label>Partial exclusion of interest.”</label></referenceItem> </toc> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 270.</p></sidenote> <content class="inline">Section 265 (relating to expenses and interest relating to tax-exempt income), as amended by section 301(b)(2), is amended by striking out “<quotedText>or to purchase or carry any certificate to the extent the interest on such certificate is excludable under section 128</quotedText>” and inserting in lieu thereof “<quotedText>or to purchase or carry obligations or shares, or to make other deposits or investments, <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, pp. 267, 270.</p></sidenote> the interest on which is described in section 128(c)(1) to the extent such interest is excludable from gross income under section 128</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s46">26 USC 46</ref>.</p></sidenote> <content class="inline">Section 46(c)(8) (relating to limitation to amount at risk) is amended by striking out “<quotedText>clause (i), (ii), or (iii) of subparagraph (A) or subparagraph (B) of section 128(c)(2)</quotedText>” and inserting in lieu thereof “<quotedText>subparagraph (A) or (B) of section 128(c)(1)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s854">26 USC 854</ref>.</p></sidenote> <content class="inline">Subsection (b) of section 854 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Other Dividends and Taxable Interest</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Deduction under section 243</inline>.—</heading><chapeau>In the case of a dividend received from a regulated investment company (other than a dividend to which subsection (a) applies)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>if such investment company meets the requirements of section 852(a) for the taxable year during which it paid such dividend; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the aggregate dividends received by such company during such taxable year are less than 75 percent of its gross income.</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">then, in computing the deduction under section 243, there shall be taken into account only that portion of the dividend which bears the same ratio to the amount of such dividend as the aggregate dividends received by such company during such taxable year bear to its gross income for such taxable year.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Exclusion under sections 116 and 128</inline>.—</heading><chapeau>For purposes of sections 116 and 128, in the case of any dividend (other than a dividend described in subsection (a)) received from a regulated investment company which meets the requirements of section 852 for the taxable year in which it paid the dividend—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the entire amount of such dividend shall be treated as a dividend if the aggregate dividends received by such company during the taxable year equal or exceed 75 percent of its gross income,</content></subparagraph> <page identifier="/us/stat/95/273">95 STAT. 273</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the entire amount of such dividend shall be treated as interest if the aggregate interest received by such company during the taxable year equals or exceeds 75 percent of its gross income, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>if subparagraphs (A) and (B) do not apply, a portion of such dividend shall be treated as a dividend (and a portion of such dividend shall be treated as interest) based on the portion of the company’s gross income which consists of aggregate dividends or aggregate interest, as the case may be. For purposes of the preceding sentence, gross income and aggregate interest received shall each be reduced by so much of the deduction allowable by section 163 for the taxable year as does not exceed aggregate interest received for the taxable year.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Notice to shareholders</inline>.—</heading><content>The amount of any distribution by a regulated investment company which may be taken into account as a dividend for purposes of the exclusion under section 116 and the deduction under section 243 or as interest for purposes of section 128 shall not exceed the amount so <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, pp. 267, 270.</p></sidenote> designated by the company in a written notice to its shareholders mailed not later than 45 days after the close of its taxable year.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>The term ‘gross income’ does not include gain from the sale or other disposition of stock or securities.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>The term ‘aggregate dividends received’ includes only dividends received from domestic corporations other than dividends described in section 116(b)(2) (relating to dividends excluded from gross income). In determining the amount of any dividend for purposes of this subparagraph, the rules provided in section 116(c)(2) (relating to certain distributions) shall apply.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>The term ‘aggregate interest received’ includes only interest described in section 128(c)(1).”</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>Subsection (c) of section 857 is amended to read as follows: <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s857">26 USC 857</ref>.</p></sidenote> <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Limitations Applicable to Dividends Received From Real Estate Investment Trusts</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of section 116 (relating to an exclusion for dividends received by individuals) and section 243 (relating to deductions for dividends received by corporations), a dividend received from a real estate investment trust which meets the requirements of this part shall not be considered as a dividend.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Treatment for section 128</inline>.—</heading><chapeau>In the case of a dividend (other than a capital gain dividend, as defined in subsection (b)(3)(C)) received from a real estate investment trust which meets the requirements of this part for the taxable year in which it paid the dividend—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>such dividend shall be treated as interest if the aggregate interest received by the real estate investment trust for the taxable year equals or exceeds 75 percent of its gross income, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>if subparagraph (A) does not apply, the portion of such dividend which bears the same ratio to the amount of such dividend as the aggregate interest received bears to gross income shall be treated as interest.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Adjustments to gross income and aggregate interest received</inline>.—</heading><chapeau>For purposes of paragraph (2)—</chapeau> <page identifier="/us/stat/95/274">95 STAT. 274</page> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>gross income does not include the net capital gain,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>gross income and aggregate interest received shall each be reduced by so much of the deduction allowable by section 163 for the taxable year (other than for interest on mortgages on real property owned by the real estate investment trust) as does not exceed aggregate interest received by the taxable year, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>gross income shall be reduced by the sum of the taxes imposed by paragraphs (4), (5), and (6) of section 857(b).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Aggregate interest received</inline>.—</heading><content>For purposes of this subsection, the term ‘aggregate interest received means only <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, pp. 267, 270.</p></sidenote> interest described in section 128(c)(1).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Notice to shareholders</inline>.—</heading><content>The amount of any distribution by a real estate investment trust which may be taken into account as interest for purposes of the exclusion under section 128 shall not exceed the amount so designated by the trust in a written notice to its shareholders mailed not later than 45 days after the close of its taxable year.”</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s128">26 USC 128 note</ref>.</p></sidenote><inline class="smallCaps">In General</inline>.—</heading><content>The amendments made by subsections (a) and (c) shall apply to taxable years beginning after December 31, 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s116">26 USC 116 note</ref>.</p></sidenote><inline class="smallCaps">Dividend Exclusion</inline>.—</heading><content>The amendment made by subsection (b)(2) shall apply to taxable years beginning after December 31, 1981.</content></paragraph> </subsection> </section> </subtitle> <subtitle><num value="B">Subtitle B—</num><heading>Retirement Savings Provisions</heading> <section><num value="311">SEC. 311. </num> <heading>RETIREMENT SAVINGS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s219">26 USC 219</ref>.</p></sidenote><inline class="smallCaps">General Rule</inline>.—</heading><content>Section 219 (relating to deduction for retirement savings) is amended to read as follows: <quotedContent> <section><num value="219">“SEC. 219. </num> <heading>RETIREMENT SAVINGS.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Allowance of Deduction</inline>.—</heading><content>In the case of an individual, there shall be allowed as a deduction an amount equal to the qualified retirement contributions of the individual for the taxable year.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Maximum Amount of Deduction</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The amount allowable as a deduction under subsection (a) to any individual for any taxable year shall not exceed the lesser of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>$2,000, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>an amount equal to the compensation includible in the individual’s gross income for such taxable year.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Special rules for employer contributions under simplified employee pensions</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><chapeau>If there is an employer contribution on behalf of the employee to a simplified employee pension, an employee shall be allowed as a deduction under subsection (a) (in addition to the amount allowable under paragraph (1) an amount equal to the lesser of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>15 percent of the compensation from such employer includible in the employee’s gross income for the taxable year (determined without regard to the employer contribution to the simplified employee pension), or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the amount contributed by such employer to the simplified employee pension and included in gross income (but not in excess of $7,500).</content> </clause> </subparagraph> <page identifier="/us/stat/95/275">95 STAT. 275</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Certain limitations do not apply to employer contribution</inline>.—</heading><content>Paragraph (1) of this subsection and paragraph (1) of subsection (d) shall not apply with respect to the employer contribution to a simplified employee pension.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Special rule for applying subparagraph (a)(ii)</inline>.—</heading><content>In the case of an employee who is an officer, shareholder, or owner-employee described in section 408(k)(3), the $7,500 <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 283.</p></sidenote> amount specified in subparagraph (A)(ii) shall be reduced by the amount of tax taken into account with respect to such individual under subparagraph (D) of section 408(k)(3).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Special rule for individual retirement plans</inline>.—</heading><chapeau>If the individual has paid any qualified voluntary employee contributions for the taxable year, the amount of the qualified retirement contributions (other than employer contributions to a simplified employee pension) which are paid for the taxable year to an individual retirement plan and which are allowable as a deduction under subsection (a) for such taxable year shall not exceed—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the amount determined under paragraph (1) for such taxable year, reduced by</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the amount of the qualified voluntary employee contributions for the taxable year.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Certain divorced individuals</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of an individual to whom this paragraph applies, the limitation of paragraph (1) shall not be less than the lesser of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>$1,125, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the sum of the amount referred to in paragraph (1)(B) and any qualifying alimony received by the individual during the taxable year.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Qualifying alimony</inline>.—</heading><content>For purposes of this paragraph, the term ‘qualifying alimony’ means amounts includible in the individual’s gross income under paragraph (1) of section 71(a) (relating to decree of divorce or separate maintenance).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Individuals to whom paragraph applies</inline>.—</heading><chapeau>This paragraph shall apply to an individual if—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>an individual retirement plan was established for the benefit of the individual at least 5 years before the beginning of the calendar year in which the decree of divorce or separate maintenance was issued, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>for at least 3 of the former spouse’s most recent 5 taxable years ending before the taxable year in which the decree was issued, such former spouse was allowed a deduction under subsection (c) (or the corresponding provisions of prior law) for contributions to such individual retirement plan.</content> </clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Special Rules for Certain Married Individuals</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of any individual with respect to whom a deduction is otherwise allowable under subsection (a)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>who files a joint return under section 6013 for a taxable year, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>whose spouse has no compensation (determined without regard to section 911) for such taxable year, <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 190.</p></sidenote></content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">there shall be allowed as a deduction any amount paid in cash for the taxable year by or on behalf of the individual to an individual retirement plan established for the benefit of his spouse.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><chapeau>The amount allowable as a deduction under paragraph (1) shall not exceed the excess of—</chapeau> <page identifier="/us/stat/95/276">95 STAT. 276</page> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><chapeau>the lesser of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>$2,250, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>an amount equal to the compensation includible in the individual’s gross income for the taxable year, over</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the amount allowed as a deduction under subsection (a) for the taxable year.</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">In no event shall the amount allowable as a deduction under paragraph (1) exceed $2,000.</continuation> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Other Limitations and Restrictions</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Individuals who have attained age 70 ½</inline>.—</heading><content>No deduction shall be allowed under this section with respect to any qualified retirement contribution which is made for a taxable year of an individual if such individual has attained age 70 ½ before the close of such taxable year.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Recontributed amounts</inline>.—</heading><content>No deduction shall be allowed under this section with respect to a rollover contribution <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s402">26 USC 402</ref>.</p></sidenote> described in section 402(a)(5), 402(a)(7), 403(a)(4), 403(b)(8), 408(d)(3), or 409(b)(3)(C).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Amounts contributed under endowment contract</inline>.—</heading><content>In the case of an endowment contract described in section 408(b), no deduction shall be allowed under this section for that portion of the amounts paid under the contract for the taxable year which is properly allocable, under regulations prescribed by the Secretary, to the cost of life insurance.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <heading><inline class="smallCaps">Definition of Retirement Savings Contributions, Etc</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Qualified retirement contribution</inline>.—</heading><chapeau>The term ‘qualified retirement contribution’ means—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>any qualified voluntary employee contribution paid in cash by the individual for the taxable year, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>any amount paid in cash for the taxable year by or on behalf of such individual for his benefit to an individual retirement plan.</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">For purposes of the preceding sentence, the term ‘individual retirement plan’ includes a retirement bond described in section 409 only if the bond is not redeemed within 12 months of its issuance.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Qualified voluntary employee contribution</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘qualified voluntary employee contribution’ means any voluntary contribution—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>which is made by an individual as an employee under a qualified employer plan or government plan, which plan allows an employee to make contributions which may be treated as qualified voluntary employee contributions under this section, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>with respect to which the individual has not designated such contribution as a contribution which should not be taken into account under this section.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Voluntary contribution</inline>.—</heading><content>For purposes of subparagraph (A), the term ‘voluntary contribution’ means any contribution which is not a mandatory contribution (within the meaning of section 411(c)(2)(C)).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Designation</inline>.—</heading><chapeau>For purposes of determining whether or not an individual has made a designation described in subparagraph (A)(ii) with respect to any contribution during any calendar year under a qualified employer plan or government plan, such individual shall be treated as having <page identifier="/us/stat/95/277">95 STAT. 277</page> made such designation if he notifies the plan administrator of such plan, not later than the earlier of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>April 15 of the succeeding calendar year, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the time prescribed by the plan administrator, that the individual does not want such contribution taken into account under this section. Any designation or notification referred to in the preceding sentence shall be made in such manner as the Secretary shall by regulations prescribe and, after the last date on which such designation or notification may be made, shall be irrevocable for such taxable year.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Qualified employer plan</inline>.—</heading><chapeau>The term ‘qualified employer plan’ means—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>a plan described in section 401(a) which includes a <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s401">26 USC 401</ref>.</p></sidenote> trust exempt from tax under section 501(a),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>an annuity plan described in section 403(a),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>a qualified bond purchase plan described in section 405(a),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>a simplified employee pension (within the meaning of section 408(k)), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>a plan under which amounts are contributed by an individual’s employer for an annuity contract described in section 403(b).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Government plan</inline>.—</heading><content>The term ‘government plan’ means any plan, whether or not qualified, established and maintained for its employees by the United States, by a State or political subdivision thereof, or by an agency or instrumentality of any of the foregoing.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Payments for certain plans</inline>.—</heading><content>The term ‘amounts paid to an individual retirement plan’ includes amounts paid for an individual retirement annuity or a retirement bond.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <heading><inline class="smallCaps">Other Definitions and Special Rules</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Compensation</inline>.—</heading><content>For purposes of this section, the term ‘compensation’ includes earned income as defined in section 401(c)(2).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Married individuals</inline>.—</heading><content>The maximum deduction under subsections (b) and (c) shall be computed separately for each individual, and this section shall be applied without regard to any community property laws.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Time when contributions deemed made</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">Individual retirement plans</inline>.—</heading><content>For purposes of this section, a taxpayer shall be deemed to have made a contribution to an individual retirement plan on the last day of the preceding taxable year if the contribution is made on account of such taxable year and is made not later than the time prescribed by law for filing the return for such taxable year (including extensions thereof).</content> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Qualified employer or government plans</inline>.—</heading><content>For purposes of this section, if a qualified employer or government plan elects to have the provisions of this subparagraph apply, a taxpayer shall be deemed to have made a voluntary contribution to such plan on the last day of the preceding calendar year (if, without regard to this paragraph, such contribution may be made on such date) if the contribution is made by April 15 of the calendar year or such earlier time as is provided by the plan administrator.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Reports</inline>.—</heading><content>The Secretary shall prescribe regulations which prescribe the time and the manner in which reports to the <page identifier="/us/stat/95/278">95 STAT. 278</page> Secretary and plan participants shall be made by the plan administrator of a qualified employer or government plan receiving qualified voluntary employee contributions.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Employer payments</inline>.—</heading><content>For purposes of this title, any amount paid by an employer to an individual retirement plan shall be treated as payment of compensation to the employee (other than a self-employed individual who is an employee within the meaning of section 401(c)(1)) includible in his gross income in the taxable year for which the amount was contributed, whether or not a deduction for such payment is allowable under this section to the employee.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num> <heading><inline class="smallCaps">Excess contributions treated as contribution made during subsequent year for which there is an unused limitation</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If for the taxable year the maximum amount allowable as a deduction under this section for contributions to an individual retirement plan exceeds the amount contributed, then the taxpayer shall be treated as having made an additional contribution for the taxable year in an amount equal to the lesser of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the amount of such excess, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the amount of the excess contributions for such taxable year (determined under section 4973(b)(2) without regard to subparagraph (C) thereof).</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Amount contributed</inline>.—</heading><chapeau>For purposes of this paragraph, the amount contributed—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>shall be determined without regard to this paragraph, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>shall not include any rollover contribution.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Special rule where excess deduction was allowed for closed year</inline>.—</heading><content>Proper reduction shall be made in the amount allowable as a deduction by reason of this paragraph for any amount allowed as a deduction under this section for a prior taxable year for which the period for assessing deficiency has expired if the amount so allowed exceeds the amount which should have been allowed for such prior taxable year.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num> <heading><inline class="smallCaps">Cross Reference</inline>.—</heading><content class="indentUp1 fontsize10">“<b>For failure to provide required reports, see section 6652(h)</b>.”</content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Treatment of Distributions From Employer Plan to Which Employee Made Deductible Contributions</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s72">26 USC 72</ref>.</p></sidenote><inline class="smallCaps">In general</inline>.—</heading><content>Section 72 (relating to annuities; certain proceeds of endowment and life insurance contracts) is amended by redesignating subsection (o) as subsection (p) and by inserting after subsection (n) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="o">“(o) </num> <heading><inline class="smallCaps">Special Rules for Distributions From Qualified Plans to Which Employee Made Deductible Contributions</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Treatment of contributions</inline>.—</heading><content>For purposes of this section and sections 402, 403, and 405, notwithstanding section 414(h), any deductible employee contribution made to a qualified employer plan or government plan shall be treated as an amount contributed by the employer which is not includible in the gross income of the employee.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Additional tax if amount received before age 59 ½</inline>.—</heading><chapeau>If—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>any accumulated deductible employee contributions are received from a qualified employer plan or government <page identifier="/us/stat/95/279">95 STAT. 279</page> plan to which the employee made one or more deductible employee contributions,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>such amount is received by the employee before the employee attains the age of 59 ½, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>such amount is not attributable to such employee’s becoming disabled (within the meaning of subsection (m)(7)),</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">then the employee’s tax under this chapter for the taxable year in which such amount is received shall be increased by an amount equal to 10 percent of the amount so received to the extent that such amount is includible in gross income. For purposes of this title, any tax imposed by this paragraph shall be treated as a tax imposed by subsection (m)(5)(B).</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Amounts constructively received</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of this subsection, rules similar to the rules provided by subsection (m) (4) and (8) shall apply.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Purchase of life insurance</inline>.—</heading><content>To the extent any amount of accumulated deductible employee contributions of an employee are applied to the purchase of life insurance contracts, such amount shall be treated as distributed to the employee in the year so applied.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Special Rule For Treatment Of Rollover Amounts</inline>.—</heading><content>For purposes of sections 402(a)(5), 402(a)(7), 403(a)(4), 408(d)(3), and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s402">26 USC 402</ref>.</p></sidenote> 409(b)(3)(C), the Secretary shall prescribe regulations providing for such allocations of amounts attributable to accumulated deductible employee contributions, and for such other rules, as may be necessary to insure that such accumulated deductible employee contributions do not become eligible for additional tax benefits (or freed from limitations) through the use of rollovers.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Definitions and special rules</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">Deductible employee contributions</inline>.—</heading><content>The term ‘deductible employee contributions’ means any qualified voluntary employee contribution (as defined in section 219(e)(2)) <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 274.</p></sidenote> made after December 31, 1981, in a taxable year beginning after such date and allowable as a deduction under section 219(a) for such taxable year.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Accumulated deductible employee contributions</inline>.—</heading><chapeau>The term ‘accumulated deductible employee contributions’ means the deductible employee contributions—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>increased by the amount of income and gain allocable to such contributions, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>reduced by the sum of the amount of loss and expense allocable to such contributions and the amounts distributed with respect to the employee which are attributable to such contributions (or income or gain allocable to such contributions).</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Qualified employer plan</inline>.—</heading><content>The term ‘qualified employer plan’ has the meaning given to such term by section 219(e)(3).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Government plan</inline>.—</heading><content>The term ‘government plan’ has the meaning given such term by section 219(e)(4).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num> <heading><inline class="smallCaps">Ordering rules</inline>.—</heading><content>Unless the plan specifies otherwise, any distribution from such plan shall not be treated as being made from the accumulated deductible employee contributions until all other amounts to the credit of the employee have been distributed.”</content></paragraph> </subsection> </quotedContent> </content></paragraph> <page identifier="/us/stat/95/280">95 STAT. 280</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">10-year averaging and capital gains not to apply</inline>.—</heading><content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s402">26 USC 402</ref>.</p></sidenote>Subparagraph (A) of section 402(e)(4) (defining lump sum distribution) is amended by adding at the end thereof the following new sentence: “For purposes of this section and section 403, the balance to the credit of the employee does not include the accumulated deductible employee contributions under the plan <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 278.</p></sidenote> (within the meaning of section 72(o)(5)).”</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">Conforming amendments relating to rollover distributions</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s402">26 USC 402</ref>.</p></sidenote> <chapeau class="inline">Paragraph (5) of section 402(a) (relating to rollover amounts) is amended—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by inserting “<quotedText>(other than accumulated deductible employee contributions within the meaning of section 72(o)(5))</quotedText>” after “<quotedText>contributions</quotedText>” in subparagraph (B),</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by striking out “<quotedText>or</quotedText>” at the end of subparagraph (D)(i)(I),</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>by striking out the period at the end of subparagraph (D)(i)(II) and inserting in lieu thereof “<quotedText>, or</quotedText>”, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">(iv) </num><content>by inserting at the end of subparagraph (D) the following new subclause: <quotedContent> <subclause class="firstIndent1 fontsize10"><num value="III">“(III) </num><content>which constitute a distribution of accumulated deductible employee contributions (within the meaning of section 72(o)(5)).”</content> </subclause> </quotedContent> </content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s403">26 USC 403</ref>.</p></sidenote> <content class="inline">Paragraph (8) of section 403(b) (relating to rollover amounts) is amended by inserting “<quotedText>, or 1 or more distributions of accumulated deductible employee contributions (within the meaning of section 72(o)(5))</quotedText>” after “<quotedText>subsection (a)</quotedText>” in subparagraph (B)(i).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Unrealized Appreciation of Employer Securities</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Paragraph (1) of section 402(a) (relating to taxability of beneficiary of exempt trust) is amended by striking out in the second sentence thereof “<quotedText>by the employee</quotedText>” and inserting in lieu thereof “<quotedText>by the employee (other than deductible employee contributions within the meaning of section 72(o)(5)).</quotedText>”</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Subparagraph (J) of section 402(e) (relating to tax on lump sum distribution) is amended by adding at the end thereof the following new sentence: “<quotedText>This subparagraph shall not apply to distributions of accumulated deductible employee contributions (within the meaning of section 77(o)(5)).</quotedText>”</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Estate and Gift Tax Exclusion</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2039">26 USC 2039</ref>.</p></sidenote><inline class="smallCaps">Estate tax</inline>.—</heading><content>Subsection (c) of section 2039 (relating to exemption of annuities under certain trusts and plans) is amended by adding at the end thereof the following new sentence: “<quotedText>For purposes of this subsection, any deductible employee contributions (within the meaning of paragraph (5) of section 72(o)) shall be considered as made by a person other than the decedent.</quotedText>”</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2517">26 USC 2517</ref>.</p></sidenote><inline class="smallCaps">Gift tax</inline>.—</heading><content>Subsection (b) of section 2517 (relating to transfers attributable to employee contributions) is amended by adding at the end thereof the following new sentence: “<quotedText>For purposes of this subsection, any deductible employee contributions (within the meaning of paragraph (5) of section 72(o)) shall be considered as made by a person other than the employee.</quotedText>”</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s220">26 USC 220</ref>.</p></sidenote><inline class="smallCaps">Repeal of Section 220</inline>.—</heading><content>Section 220 (relating to deduction for retirement savings for certain married individuals) is hereby repealed.</content> </subsection> <page identifier="/us/stat/95/281">95 STAT. 281</page> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <heading><inline class="smallCaps">Penalties for Failure To Provide Necessary Reports</inline>.—</heading><content>Section 6652 is amended by redesignating subsection (h) as subsection <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6652">26 USC 6652</ref>.</p></sidenote> (i) and inserting after subsection (g) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="h">“(h) </num> <heading><inline class="smallCaps">Information Required in Connection With Deductible Employee Contributions</inline>.—</heading><content>In the case of failure to make a report required by section 219(f)(4) which contains the information required <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 274.</p></sidenote> by such section on the date prescribed therefor (determined with regard to any extension of time for filing), there shall be paid (on notice and demand by the Secretary and in the same manner as tax) by the person failing so to file, an amount equal to $25 for each participant with respect to whom there was a failure to file such information, multiplied by the number of years during which such failure continues, but the total amount imposed under this subsection on any person for failure to file shall not exceed $10,000.”</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num> <heading><inline class="smallCaps">Amendments Relating to Increase in IRA Limitations</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>The following provisions are each amended by striking out “<quotedText>$1,500</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>$2,000</quotedText>”:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>Section 408(a)(1) (defining individual retirement <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s408">26 USC 408</ref>.</p></sidenote> account).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Section 408(b) (defining individual retirement annuity).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>Section 408(j) (relating to increase in maximum limitations for simplified employee pensions).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>Section 409(a)(4) (defining retirement bond). <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s409">26 USC 409</ref>.</p></sidenote></content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Subparagraph (A) of section 408(d)(5) is amended by striking out “<quotedText>$1,750</quotedText>” and inserting in lieu thereof “<quotedText>$2,250</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Subparagraph (A) of section 409(b)(3) (relating to redemption within 12 months) is amended by adding the following sentence at the end thereof: “<quotedText>The preceding sentence shall not apply to the extent that the bond was purchased with a rollover contribution described in subparagraph (C) of this paragraph or in section 402(a)(5), 402(a)(7), 403(a)(4), 403(b)(8), 405(b)(3), or 408(d)(3).</quotedText>”</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4)</num><subparagraph class="inline"><num value="A">(A) </num><content>Paragraph (2) of section 415(a) is amended to read as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s415">26 USC 415</ref>.</p></sidenote> follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Section applies to certain annuities and accounts</inline>.—</heading><chapeau>In the case of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>an employee annuity plan described in section 403(a),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>an annuity contract described in section 403(b),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>a simplified employee pension described in section 408(k), or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>a plan described in section 405(a),</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">such a contract, plan, or pension shall not be considered to be described in section 403(a), 403(b), 405(a), or 408(k), as the case may be, unless it satisfies the requirements of subparagraph (A) or subparagraph (B) of paragraph (1), whichever is appropriate, and has not been disqualified under subsection (g). In the case of an annuity contract described in section 403(b), the preceding sentence shall apply only to the portion of the annuity contract which exceeds the limitation of subsection (b) or the limitation of subsection (c), whichever is appropriate, and the amount of the contribution for such portion shall reduce the exclusion allowance as provided in section 403(b)(2).”</continuation> </paragraph> </quotedContent> </content></subparagraph> <subparagraph class="indent1 firstIndent1 fontsize10"><num value="B">(B) </num><content>The last sentence of paragraph (2) of section 415(c) is amended to read as follows: “<quotedText>For the purposes of this paragraph, employee contributions under subparagraph (B) are determined without regard to any rollover contributions (as defined in sections 402(a)(5), 403(a)(4), 403(b)(8), 405(d)(3), 408(d)(3), and <page identifier="/us/stat/95/282">95 STAT. 282</page> 409(b)(3)(C)) without regard to employee contributions to a simplified employee pension allowable as a deduction under section 219(a), and without regard to deductible employee contributions <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 278.</p></sidenote> within the meaning of section 72(o)(5).</quotedText>”</content></subparagraph> <subparagraph class="indent1 firstIndent1 fontsize10"><num value="C">(C) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s415">26 USC 415</ref>.</p></sidenote> <content class="inline">Paragraph (5) of section 415(e) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Special rules for sections 403(b) and 408</inline>.—</heading><content>For purposes of this section, any annuity contract described in section 403(b) (except in the case of a participant who has elected under subsection (c)(4)(D) to have the provisions of subsection (c)(4)(C) apply) for the benefit of a participant shall be treated as a defined contribution plan maintained by each employer with respect to which the participant has the control required under subsection (b) or (c) of section 414 (as modified by subsection (h)). For purposes of this section, any contribution by an employer to a simplified employee pension for an individual for a taxable year shall be treated as an employer contribution to a defined contribution plan for such individual for such year. In the case of any annuity contract described in section 403(b), the amount of the contribution disqualified by reason of subsection (g) shall reduce the exclusion allowance as provided in section 403(b)(2).”</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num> <heading><inline class="smallCaps">Amendments Conforming to the Repeal of Section 220</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s62">26 USC 62</ref>.</p></sidenote> <content class="inline">Paragraph (10) of section 62 (defining adjusted gross income) is amended by striking out “<quotedText>and the deduction allowed by section 220 (relating to retirement savings for certain married individuals)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s408">26 USC 408</ref>.</p></sidenote> <content class="inline">Paragraphs (4) and (5) of section 408(d) (relating to tax treatment of distributions) are each amended by striking out “<quotedText>section 219 or 220</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>section 219</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s415">26 USC 415</ref>.</p></sidenote> <content class="inline">Subsection (a) of section 415 is amended by striking out paragraph (3).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2039">26 USC 2039</ref>.</p></sidenote> <content class="inline">Subsection (e) of section 2039 (relating to exclusion of individual retirement accounts, etc.) is amended by striking out “<quotedText>section 219 or 220</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>section 219</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2503">26 USC 2503</ref>.</p></sidenote> <content class="inline">Subsection (d) of section 2503 is hereby repealed.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3401">26 USC 3401</ref>.</p></sidenote> <content class="inline">Subparagraph (D) of section 3401(a)(12) is amended by striking out “<quotedText>section 219(a) or 220(a)</quotedText>” and inserting in lieu thereof “<quotedText>section 219(a)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4973">26 USC 4973</ref>.</p></sidenote> <content class="inline">Subsection (b) of section 4973 is amended by striking out “<quotedText>section 219 or 220</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>section 219</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6047">26 USC 6047</ref>.</p></sidenote> <content class="inline">Subsection (d) of section 6047 is amended by striking out “<quotedText>section 219(a) or 220(a)</quotedText>” and inserting in lieu thereof “<quotedText>section 219(a)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">(9) </num><content>Subsection (a) of section 4973 is amended by striking out the last sentence and inserting in lieu thereof the following: “<quotedText>The tax imposed by this subsection shall be paid by such individual.</quotedText>”</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">(10) </num><content>Subparagraph (C) of section 4973(b)(2) is amended by striking out “<quotedText>sections 219(c)(5) and 220(c)(6)</quotedText>” and inserting in lieu thereof “<quotedText>section 219(f)(6)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="11">(11) </num><content>The table of sections for part VII of subchapter B of chapter 1 is amended by striking out the item relating to section 220.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s219">26 USC 219 note</ref>.</p></sidenote><inline class="smallCaps">Effective Dates</inline>.—</heading> <page identifier="/us/stat/95/283">95 STAT. 283</page> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Transitional rule</inline>.—</heading><content>For purposes of the Internal Revenue Code of 1954, any amount allowed as a deduction under section 220 of such Code (as in effect before its repeal by this Act) shall be treated as if it were allowed by section 219 of such Code. <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 274.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">Certain bond rollover provisions</inline>.—</heading><content>The amendment made by subsection (g)(3) shall apply to taxable years beginning after December 31, 1974.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <heading><inline class="smallCaps">Section 415 amendments</inline>.—</heading><content>The amendments made by subsections (g)(4) and (h)(3) shall apply to years after December 31, 1981.</content></paragraph> </subsection> </section> <section><num value="312">SEC. 312. </num> <heading>INCREASE IN AMOUNT OF SELF-EMPLOYED RETIREMENT PLAN DEDUCTION.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (e) of section 404 (relating to special <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s404">26 USC 404</ref>.</p></sidenote> limitations for self-employed individuals) is amended by striking out “<quotedText>$7,500</quotedText>” in paragraphs (1) and (2) and inserting in lieu thereof “<quotedText>$15,000</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Maximum Amount of Compensation Taken Into Account</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (17) of section 401(a) (relating to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s401">26 USC 401</ref>.</p></sidenote> maximum amount of compensation which may be taken into account) is amended by striking out all after “<quotedText>only</quotedText>” and inserting in lieu thereof “<quotedText>if—</quotedText> <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the annual compensation of each employee taken into account under the plan does not exceed the first $200,000 of compensation, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>in the case of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>a defined contribution plan with respect to which compensation in excess of $100,000 is taken into account, contributions on behalf of each employee (other than an employee within the meaning of section 401(c)(1)) to the plan or plans are at a rate (expressed as a percentage of compensation) not less than 7.5 percent, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>a defined benefit plan with respect to which compensation in excess of $100,000 is taken into account, the annual benefit accrual for each employee (other than an employee within the meaning of section 401(c)(1)) is a percentage of compensation which is not less than one-half of the applicable percentage provided by subsection (j)(3).” <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 284.</p></sidenote></content> </clause> </subparagraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Simplified employee pensions</inline>.—</heading><content>Subparagraph (C) of section 408(k)(3) (relating to uniform relationships of contributions) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s408">26 USC 408</ref>.</p></sidenote> is amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Contributions must bear a uniform relationship to total compensation</inline>.—</heading><chapeau>For purposes of subparagraph (A), employer contributions to simplified employee pensions shall be considered discriminatory unless—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>contributions thereto bear a uniform relationship to the total compensation (not in excess of the first $200,000) of each employee maintaining a simplified employee pension, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>if compensation in excess of $100,000 is taken into account under a simplified employee pension for an employee, contributions to a simplified employee pension on behalf of each employee for whom a contribution <page identifier="/us/stat/95/284">95 STAT. 284</page> is required are at a rate (expressed as a percentage of compensation) not less than 7.5 percent.”</content> </clause> </subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 274.</p></sidenote> <content class="inline">Subparagraphs (A) and (C) of section 219(b)(2), as amended by section 311(a), are each amended by striking out “<quotedText>$7,500</quotedText>” and inserting in lieu thereof “<quotedText>$15,000</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s401">26 USC 401</ref>.</p></sidenote> <content class="inline">Subsection (e) of section 401 is amended by striking out “<quotedText>for all such years exceeds $7,500</quotedText>” and inserting in lieu thereof “<quotedText>for such taxable year exceeds $15,000</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <content class="inline">Subparagraph (A) of section 401(j)(2) (relating to benefit plans for self-employed individuals and shareholder-employees) is amended by striking out “<quotedText>$50,000</quotedText>” and inserting in lieu thereof “<quotedText>$100,000</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Paragraph (3) of section 401(j) is amended by adding at the end thereof the following new sentence: “<quotedText>For purposes of this paragraph, a change in the annual compensation taken into account under subparagraph (A) of subsection (j)(2) shall be treated as beginning a new period of plan participation.</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s408">26 USC 408</ref>.</p></sidenote> <content class="inline">Subsections (d)(5) and (j) of section 408 are each amended by striking out “<quotedText>$7,500</quotedText>” and inserting in lieu thereof “<quotedText>$15,000</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1379">26 USC 1379</ref>.</p></sidenote> <content class="inline">Subparagraph (B) of section 1379(b)(1) (relating to certain qualified pension, etc., plans) is amended by striking out “<quotedText>$7,500</quotedText>” and inserting in lieu thereof “<quotedText>$15,000</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s72">26 USC 72</ref>.</p></sidenote><inline class="smallCaps">Loans to Participants</inline>.—</heading><chapeau>Subsection (m) of section 72 (relating to special rules) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by adding at the end of paragraph (6) the following new sentence: “For purposes of the preceding sentence, the term ‘owner-employee’ shall except in applying paragraph (5), include an employee within the meaning of section 401(c)(1).”, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num> <heading><inline class="smallCaps">Loans to owner-employees</inline>.—</heading><content>If, during any taxable year, an owner-employee receives, directly or indirectly, any amount as a loan from a trust described in section 401(a) which is exempt from tax under section 501(a), such amount shall be treated as having been received by such owner-employee as a distribution from such trust.”</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <heading><inline class="smallCaps">Correction of Excess Contribution Permitted Without Penalty</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Subsection (m) of section 72 (relating to special rules applicable to employee annuities and distributions under employee plans) (as amended by subsection (d)) is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="9">“(9) </num> <heading><inline class="smallCaps">Return of excess contributions before due date of return</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If an excess contribution is distributed in a qualified distribution—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>such distribution of such excess contribution shall not be included in gross income, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>this section (other than this paragraph) shall be applied as if such excess contribution and such distribution had not been made.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Excess contribution</inline>.—</heading><content>For purposes of this paragraph, the term ‘excess contribution’ means any contribution to a qualified trust described in section 401(a) or under a plan described in section 403(a) or 405(a) made on behalf of an employee (within the meaning of section 401(c)) for any taxable year to the extent such contribution exceeds the amount allowable as a deduction under section 404(a).</content></subparagraph> <page identifier="/us/stat/95/285">95 STAT. 285</page> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Qualified distribution</inline>.—</heading><content>The term ‘qualified distribution’ means any distribution of an excess contribution which meets requirements similar to the requirements of subparagraphs (A), (B), and (C) of section 408(d)(4). In the case of such a distribution, the rules of the last sentence of section 408(d)(4) shall apply.”</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Paragraph (4) of section 401(d) (relating to additional <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s401">26 USC 401</ref>.</p></sidenote> requirements for qualification of trusts and plans benefiting owner-employees) is amended by adding at the end thereof the following new sentence: “Subparagraph (B) shall not apply to any distribution to which section 72(m)(9) applies.” <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 283.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Subsection (b) of section 4972 (defining excess contributions) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4972">26 USC 4972</ref>.</p></sidenote> is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num> <heading><inline class="smallCaps">Excess contributions returned before due date</inline>.—</heading><content>For purposes of this subsection, any contribution which is distributed in a distribution to which section 72(m)(9) applies shall be treated as an amount not contributed.”</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <heading><inline class="smallCaps">Effective Date</inline>.—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s72">26 USC 72 note</ref>.</p></sidenote></heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), the amendments made by this section shall apply to plans which include employees within the meaning of section 401(c)(1) with respect to taxable years beginning after December 31, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Transitional rule</inline>.—</heading><content>The amendments made by subsection (d) shall not apply to any loan from a plan to a self-employed individual who is an employee within the meaning of section 401(c)(1) which is outstanding on December 31, 1981. For purposes of the preceding sentence, any loan which is renegotiated, extended, renewed, or revised after such date shall be treated as a new loan.</content></paragraph> </subsection> </section> <section><num value="313">SEC. 313. </num> <heading>ROLLOVERS UNDER BOND PURCHASE PLANS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Subsection (d) of section 405 (relating to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s405">26 USC 405</ref>.</p></sidenote> taxability of beneficiary of qualified bond purchase plan) is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Rollover into an individual retirement account or annuity</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>any qualified bond is redeemed,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>any portion of the excess of the proceeds from such redemption over the basis of such bond is transferred to an individual retirement plan which is maintained for the benefit of the individual redeeming such bond, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>such transfer is made on or before the 60th day after the day on which the individual received the proceeds of such redemption,</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">then, gross income shall not include the proceeds to the extent so transferred and the transfer shall be treated as a rollover contribution described in section 408(d)(3).</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Qualified bond</inline>.—</heading><content>For purposes of this paragraph, the term ‘qualified bond’ means any bond described in subsection (b) which is distributed under a qualified bond purchase plan or from a trust described in section 401(a) which is exempt from tax under section 501(a).”</content></subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Technical Amendments</inline>.—<page identifier="/us/stat/95/286">95 STAT. 286</page></heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s405">26 USC 405</ref>.</p></sidenote> <content class="inline">The second sentence of paragraph (1) of section 405(d) is amended by striking out “<quotedText>the proceeds</quotedText>” and inserting “<quotedText>except as provided in paragraph (3), the proceeds</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 274.</p></sidenote> <content class="inline">Sections 219(d)(2) (as amended by section 311(a) of this Act), 408(a)(1), and 4973(b)(1)(A) are each amended by inserting “<quotedText>405(d)(3),</quotedText>” after “<quotedText>403(b)(8),</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2039">26 USC 2039</ref>.</p></sidenote> <content class="inline">Subsection (e) of section 2039 is amended by inserting “<quotedText>405(d)(3),</quotedText>” after “<quotedText>a contract described in subsection (c)(3)),</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s405">26 USC 405 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to redemptions after the date of the enactment of this Act in taxable years ending after such date.</content> </subsection> </section> <section><num value="314">SEC. 314. </num> <heading>MISCELLANEOUS PROVISIONS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Removal of Five-Year Ban on Contributions to Owner-Employee Plans Where Plan Terminates</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s401">26 USC 401</ref>.</p></sidenote><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (5) of section 401(d) (relating to additional requirements for qualifications of trusts and plans benefiting owner-employees) is amended by adding at the end thereof the following: “<quotedText>Subparagraph (C) shall not apply to a distribution on account of the termination of the plan.</quotedText>”</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s401">26 USC 401 note</ref>.</p></sidenote><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph (1) shall apply to distributions after December 31, 1980, in taxable years beginning after such date.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Investment by Individual Retirement Accounts, Etc., in Collectibles Treated as Distributions</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s408">26 USC 408</ref>.</p></sidenote><inline class="smallCaps">In general</inline>.—</heading><content>Section 408 (relating to individual retirement accounts) is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="n">“(n) </num> <heading><inline class="smallCaps">Investment in Collectibles Treated as Distributions</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The acquisition by an individual retirement account or by an individually-directed account under a plan described in section 401(a) of any collectible shall be treated (for purposes of this section and section 402) as a distribution from such account in an amount equal to the cost to such account of such collectible.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Collectible defined</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘collectible’ means—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>any work of art,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>any rug or antique,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>any metal or gem,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>any stamp or coin,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>any alcoholic beverage, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num><content>any other tangible personal property specified by the Secretary for purposes of this subsection.”</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s408">26 USC 408 note</ref>.</p></sidenote><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph (1) shall apply to property acquired after December 31, 1981, in taxable years ending after such date.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Taxability of Distributions to Employees</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Contributions made available</inline>.—</heading><content>Paragraph (1) of section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s402">26 USC 402</ref>.</p></sidenote> 402(a) (relating to taxability of beneficiary of exempt trust) is amended by striking out each place it appears “<quotedText>or made available</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s402">26 USC 402 note</ref>.</p></sidenote><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph (1) shall apply to taxable years beginning after December 31, 1981.</content></paragraph> </subsection> </section> </subtitle> <page identifier="/us/stat/95/287">95 STAT. 287</page> <subtitle><num value="C">Subtitle C—</num><heading>Reinvestment of Dividends in Public Utilities</heading> <section><num value="321">SEC. 321. </num> <heading>ENCOURAGEMENT OF REINVESTMENT OF DIVIDENDS IN THE STOCK OF PUBLIC UTILITIES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Amendment of Section 305</inline>.—</heading><content>Section 305 (relating to distributions <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s305">26 USC 305</ref>.</p></sidenote> of stock and stock rights) is amended by redesignating subsection (e) as subsection (f) and by inserting after subsection (d) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <heading><inline class="smallCaps">Dividend Reinvestment in Stock of Public Utilities</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (b) shall not apply to any qualified reinvested dividend.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Qualified reinvested dividend defined</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘qualified reinvested dividend’ means—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>a distribution by a qualified public utility of shares of its qualified common stock to an individual with respect to the common or preferred stock of such corporation pursuant to a plan under which shareholders may elect to receive dividends in the form of stock instead of property, but</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>only if the shareholder elects to have this subsection apply to such shares.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Qualified public utility defined</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of this subsection, the term ‘qualified public utility’ means, for any taxable year of the corporation, a domestic corporation which, for the 10-year period ending on the day before the beginning of the taxable year, acquired public utility recovery property having a cost equal to at least 60 percent of the aggregate cost of all tangible property described in section 1245(a)(3) <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 218.</p></sidenote> (other than subparagraphs (C) and (D) thereof) acquired by the corporation during such period.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Special rules</inline>.—</heading><chapeau>For purposes of subparagraph (A)—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>all members of an affiliated group shall be treated as one corporation,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>a successor corporation shall take into account the acquisitions of its predecessor, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>a new corporation to which clause (ii) does not apply shall substitute its period of existence for the 10-year period set forth in subparagraph (A).</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this paragraph—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">Affiliated group</inline>.—</heading><content>The term ‘affiliated group’ has the meaning given to such term by subsection (a) of section 1504 (determined without regard to subsection (b) of section 1504).</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Public utility recovery property</inline>.—</heading><content>The term ‘public utility recovery property’ means public utility property (within the meaning of section 167(l)(3)(A)) which is recovery property which is 10-year property or 15-year public utility property (within the meaning of section 168), except that any requirement that the <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 204.</p></sidenote> property be placed in service after December 31, 1980, shall not apply.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Qualified common stock defined</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘qualified common stock’ means authorized but unissued common stock of the corporation—</chapeau> <page identifier="/us/stat/95/288">95 STAT. 288</page> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>which has been designated by the board of directors of the corporation as issued for purposes of this subsection, but</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>only if the number of shares to be issued to a shareholder was determined by reference to a value which is not less than 95 percent and not more than 105 percent of the stock’s fair market value during the period immediately before the distribution (determined under regulations prescribed by the Secretary).</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Certain purchases by corporation of its own stock</inline>.—</heading><content>Except as provided in subparagraph (D), if a corporation has purchased or purchases its common stock within a 2-year period beginning 1 year before the date of the distribution and ending 1 year after such date, such distribution shall be treated as not being a qualified reinvested dividend.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Members of affiliated group</inline>.—</heading><content>For purposes of subparagraph (B), the purchase by any corporation which is a member of the same affiliated group (as defined in paragraph (3)(C)(i)) as the distributing corporation of common stock in any corporation which is a member of such group from any person (other than a member of such group) shall be treated as a purchase by the distributing corporation of its common stock.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Waiver of subparagraph (b) where there is business purpose</inline>.—</heading><content>Under regulations prescribed by the Secretary, subparagraph (B) shall not apply where the distributing corporation establishes that there was a business purpose for the purchase of the stock and such purchase is not inconsistent with the purposes of this subsection.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Share includes fractional share</inline>.—</heading><content>For purposes of this subsection, the term ‘share’ includes a fractional share.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num> <heading><inline class="smallCaps">Limitation</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of any individual, the aggregate amount of distributions to which this subsection applies for the taxable year shall not exceed $750 ($1,500 in the case of a joint return).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Application of ceiling</inline>.—</heading><content>If, but for this subparagraph, a share of stock would, by reason of subparagraph (A), be treated as partly within this subsection and partly outside this subsection, such share shall be treated as outside this subsection.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num> <heading><inline class="smallCaps">Basis and holding period</inline>.—</heading><chapeau>In the case of stock received as a qualified reinvested dividend—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s307">26 USC 307</ref>.</p></sidenote> <content class="inline">notwithstanding section 307, the basis shall be zero, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the holding period shall begin on the date the dividend would (but for this subsection) be includible in income.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num> <heading><inline class="smallCaps">Election</inline>.—</heading><content>An election under this subsection with respect to any share shall be made on the shareholder’s return for the taxable year in which the dividend would (but for this subsection) be includible in income. Any such election, once made, shall be revocable only with the consent of the Secretary.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">“(9) </num> <heading><inline class="smallCaps">Dispositions within 1 year of distribution</inline>.—</heading><chapeau>Under regulations prescribed by the Secretary—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">Disposition of other common stock</inline>.—</heading><chapeau class="inline">If—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>a shareholder receives any qualified reinvested dividend from a corporation, and</content> </clause> <page identifier="/us/stat/95/289">95 STAT. 289</page> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>during the period which begins on the record date for the qualified reinvested dividend and ends 1 year after the date of the distribution of such dividend, the shareholder disposes of any common stock of such corporation,</content> </clause> <continuation> <p class="indent2 firstIndent1 fontsize10">the shareholder shall be treated as having disposed of the stock received as a qualified reinvested dividend (to the extent there remains such stock to which this paragraph has not applied).</p></continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Ordinary income treatment</inline>.—</heading><content>If any stock received as a qualified reinvested dividend is disposed of within 1 year after the date such stock is distributed, such disposition shall be treated as a disposition of property which is not a capital asset.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">“(10) </num> <heading><inline class="smallCaps">No reduction in earnings and profits for distribution of qualified common stock</inline>.—</heading><content>The earnings and profits of any corporation shall not be reduced by reason of the distribution of any qualified common stock of such corporation pursuant to a plan under which shareholders may elect to receive dividends in the form of stock instead of property.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="11">“(11) </num> <heading><inline class="smallCaps">Certain individuals ineligible</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>This subsection shall not apply to any individual who is—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>a trust or estate, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>a nonresident alien individual.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">5 percent shareholders ineligible</inline>.—</heading><content>Any distribution by a corporation to a 5 percent shareholder in such corporation shall not be treated as a qualified reinvested dividend.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">5 percent shareholder defined</inline>.—</heading><chapeau>For purposes of subparagraph (B), the term ‘5 percent shareholder’ means any individual who, immediately before the distribution, owns (directly or through the application of section 318)—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>stock possessing more than 5 percent of the total combined voting power of the distributing corporation, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>more than 5 percent of the total value of all classes of stock of the distributing corporation.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="12">“(12) </num> <heading><inline class="smallCaps">Termination</inline>.—</heading><content>This subsection shall not apply to distributions after December 31, 1985.”</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Amendment of Section 305(d)</inline>.—</heading><content>Paragraph (1) of section 305(d) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s305">26 USC 305</ref>.</p></sidenote> (defining stock) is amended by striking out “<quotedText>this section</quotedText>” and inserting in lieu thereof “<quotedText>this section (other than subsection (e))</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s305">26 USC 305 note</ref>.</p></sidenote> apply to distributions after December 31, 1981, in taxable years ending after such date.</content> </subsection> </section> </subtitle> <subtitle><num value="D">Subtitle D—</num><heading>Employee Stock Ownership Provisions</heading> <section><num value="331">SEC. 331. </num> <heading>PAYROLL-BASED CREDIT FOR ESTABLISHING EMPLOYEE STOCK OWNERSHIP PLAN.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subpart A of part IV of subchapter A of chapter 1 (relating to credits allowed), as amended by section 221 of this Act, is <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 241.</p></sidenote> further amended by inserting immediately after section 44F the following new section: <page identifier="/us/stat/95/290">95 STAT. 290</page> <quotedContent> <section><num value="44G">“SEC. 44G. </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s44G">26 USC 44G</ref>.</p></sidenote>EMPLOYEE STOCK OWNERSHIP CREDIT.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Credit allowed</inline>.—</heading><content>In the case of a corporation which elects to have this section apply for the taxable year and which meets the requirements of subsection (c)(1), there is allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the amount of the credit determined under paragraph (2) for such taxable year.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Determination of amount</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The amount of the credit determined under this paragraph for the taxable year shall be equal to the lesser of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the aggregate value of employer securities transferred by the corporation for the taxable year to a tax credit employee stock ownership plan maintained by the corporation, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the applicable percentage of the amount of the aggregate compensation (within the meaning of section 415(c)(3)) paid or accrued during the taxable year to all employees under a tax credit employee stock ownership plan.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Applicable percentage</inline>.—</heading><content>For purposes of applying subparagraph (A)(ii), the applicable percentage shall be determined in accordance with the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“For aggregate compensation paid or accrued during a portion of the taxable year occurring in calendar year:</b></td> <td style="text-align:right; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The applicable percentage is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1983</td> <td style="text-align:right; vertical-align:top">0.5</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1984</td> <td style="text-align:right; vertical-align:top">0.5</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1985</td> <td style="text-align:right; vertical-align:top">0.75</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1986</td> <td style="text-align:right; vertical-align:top">0.75</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1987</td> <td style="text-align:right; vertical-align:top">0.75</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1988 or thereafter</td> <td style="text-align:right; vertical-align:top">0. </td> </tr> </tbody> </table> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Limitation Based on Amount of Tax</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Liability for tax</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The credit allowed by subsection (a) for any taxable year shall not exceed an amount equal to the sum of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>so much of the liability for tax for the taxable year as does not exceed $25,000, plus</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>90 percent of so much of the liability for tax for the taxable year as exceeds $25,000.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Liability for tax defined</inline>.—</heading><content>For purposes of this paragraph, the term ‘liability for tax’ means the tax imposed by this chapter for the taxable year, reduced by the sum of the credits allowed under a section of this subpart having a lower number designation than this section, other than credits allowable by sections 31, 39, and 43. For purposes of the preceding sentence, the term ‘tax imposed by this chapter’ shall not include any tax treated as not imposed by this chapter under the last sentence of section 53(a).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Controlled groups</inline>.—</heading><content>In the case of a controlled group of corporations, the $25,000 amount specified in subparagraph (A) shall be reduced for each component member of such group by apportioning $25,000 among the component members of such group in such manner as the Secretary shall by regulations prescribe. For purposes of the preceding <page identifier="/us/stat/95/291">95 STAT. 291</page> sentence, the term ‘controlled group of corporations’ has the meaning assigned to such term by section 1563(a) (determined <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1563">26 USC 1563</ref>.</p></sidenote> without regard to subsections (a)(4) and (e)(3)(C) of such section).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Carryback and carryover of unused credit</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">Allowance of credit</inline>.—</heading><chapeau>If the amount of the credit determined under this section for any taxable year exceeds the limitation provided under paragraph (1)(A) for such taxable year (hereinafter in this paragraph referred to as the ‘unused credit year’), such excess shall be—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>an employee stock ownership credit carryback to each of the 3 taxable years preceding the unused credit year, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>an employee stock ownership credit carryover to each of the 15 taxable years following the unused credit year,</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">and shall be added to the amount allowable as a credit by this section for such years. If any portion of such excess is a carryback to a taxable year ending before January 1, 1983, this section shall be deemed to have been in effect for such taxable year for purposes of allowing such carryback as a credit under this section. The entire amount of the unused credit for an unused credit year shall be carried to the earliest of the 18 taxable years to which (by reason of clauses (i) and (ii)) such credit may be carried, and then to each of the other 17 taxable years to the extent that, because of the limitation contained in subparagraph (B), such unused credit may not be added for a prior taxable year to which such unused credit may be carried.</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><chapeau>The amount of the unused credit which may be added under subparagraph (A) for any preceding or succeeding taxable year shall not exceed the amount by which the limitation provided under paragraph (1)(A) for such taxable year exceeds the sum of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the credit allowable under this section for such taxable year, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the amounts which, by reason of this paragraph, are added to the amount allowable for such taxable year and which are attributable to taxable years preceding the unused credit year.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Certain regulated companies</inline>.—</heading><chapeau>No credit shall be allowed under this section to a taxpayer if—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the taxpayer’s cost of service for ratemaking purposes or in its regulated books of account is reduced by reason of any portion of such credit which results from the transfer of employer securities or cash to a tax credit employee stock ownership plan which meets the requirements of section 409A;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the base to which the taxpayer’s rate of return for ratemaking purposes is applied is reduced by reason of any portion of such credit which results from a transfer described in subparagraph (A) to such employee stock ownership plan; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>any portion of the amount of such credit which results from a transfer described in subparagraph (A) to such employee stock ownership plan is treated for ratemaking purposes in any way other than as though it had been contributed by the taxpayer’s common shareholders.</content></subparagraph> </paragraph> </subsection> <page identifier="/us/stat/95/292">95 STAT. 292</page> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Definitions and Special Rules</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Requirements for corporation</inline>.—</heading><chapeau>A corporation meets the requirements of this paragraph if it—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><chapeau>establishes a plan—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s409A">26 USC 409A</ref>.</p></sidenote> <content class="inline">which meets the requirements of section 409A, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><chapeau>under which no more than one-third of the employer contributions for the taxable year are allocated to the group of employees consisting of—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>officers,</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>shareholders owning more than 10 percent of the employer’s stock (within the meaning of section 415(c)(6)(B)(iv)), or</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="III">“(III) </num><content>employees described in section 415(c)(6)(B)(iii), and</content> </subclause> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>agrees, as a condition for the allowance of the credit allowed by this subsection—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>to make transfers of employer securities to a tax credit employee stock ownership plan maintained by the corporation having an aggregate value of not more than the applicable percentage for the taxable year (determined under subsection (a)(2)) of the amount of the aggregate compensation (within the meaning of section 415(c)(3)) paid or accrued by the corporation during the taxable year, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>to make such transfers at the times prescribed in paragraph (2).</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Times for making transfers</inline>.—</heading><content>The transfers required under paragraph (1)(B) shall be made not later than 30 days after the due date (including extensions) for filing the return for the taxable year.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Adjustments to credit</inline>.—</heading><content>If the credit allowed under this section is reduced by a final determination, the employer may reduce the amount required to be transferred to the tax credit employee stock ownership plan under paragraph (1)(B) for the taxable year in which the final determination occurs or any succeeding taxable year by an amount equal to such reduction to the extent such reduction is not taken into account in any deduction allowed under section 404(i)(2).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Certain contributions of cash treated as contributions of employer securities</inline>.—</heading><content>For purposes of this section, a transfer of cash shall be treated as a transfer of employer securities if the cash is, under the tax credit employee stock ownership plan, used within 30 days to purchase employer securities.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Disallowance of deduction</inline>.—</heading><content>Except as provided in section 404(i), no deduction shall be allowed under section 162, 212, or 404 for amounts required to be transferred to a tax credit employee stock ownership plan under this section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num> <heading><inline class="smallCaps">Employer securities</inline>.—</heading><content>For purposes of this section, the term ‘employer securities’ has the meaning given such term in section 409A(1).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num> <heading><inline class="smallCaps">Value</inline>.—</heading><chapeau>For purposes of this section, the term ‘value’ means—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>in the case of securities listed on a national exchange, the average of closing prices of such securities for the 20 consecutive trading days immediately preceding the date on which the securities are contributed to the plan, or</content></subparagraph> <page identifier="/us/stat/95/293">95 STAT. 293</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>in the case of securities not listed on a national exchange, the fair market value as determined in good faith and in accordance with regulations prescribed by the Secretary.”</content></subparagraph> </paragraph> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Deductibility of Unused Portions of the Credit</inline>.—</heading><content>Section 404 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s404">26 USC 404</ref>.</p></sidenote> is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">Deductibility of Unused Portions of Employee Stock Ownership Credit</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Unused credit carryovers</inline>.—</heading><content>There shall be allowed as a deduction (without regard to any limitations provided under this section) for the last taxable year to which an unused employee stock ownership credit carryover (within the meaning of section 44G(b)(2)(A)) may be carried, an amount equal to the portion of <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 290.</p></sidenote> such unused credit carryover which expires at the close of such taxable year.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Reductions in credit</inline>.—</heading><content>There shall be allowed as a deduction (subject to the limitations provided under this section) an amount equal to any reduction of the credit allowed under section 44G resulting from a final determination of such credit to the extent such reduction is not taken into account in section 44G(c)(3).”</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>Section 409A (relating to qualifications for tax credit <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s409A">26 USC 409A</ref>.</p></sidenote> employee stock ownership plans) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>or 44G(c)(1)(B)</quotedText>” after “<quotedText>section 48(n)(1)(A)</quotedText>” in subsection (b)(1)(A),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by inserting “<quotedText>or the credit allowed under section 44G (relating to the employee stock ownership credit)</quotedText>” after “<quotedText>basic employee plan credit</quotedText>” in subsection (b)(4),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by inserting “<quotedText>or 44G(c)(1)(B)</quotedText>” after “<quotedText>section 48(n)(1)</quotedText>” in subsection (g),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>by inserting “<quotedText>or the credit allowed under section 44G (relating to employee stock ownership credit)</quotedText>” after “<quotedText>employee plan credit</quotedText>” in subsection (g),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>by inserting “<quotedText>or 44G(c)(1)(B)</quotedText>” after “<quotedText>section 48(n)(1)</quotedText>” in subsection (i)(1)(A),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">(F) </num><content>by inserting “<quotedText>section 44G(c)(1)(B), or</quotedText>” after “<quotedText>required under</quotedText>” in subsection (m),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="G">(G) </num><content>by inserting “<quotedText>or employee stock ownership credit</quotedText>” after “employee plan credit in subsection (n)(2), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="H">(H) </num><content>by adding at the end of subsection (n) the following new paragraph: <quotedContent> <p class="firstIndent1 fontsize8">“(3) <b>For requirements for allowance of an employee stock ownership credit, see section 44G.</b>”</p> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Subsection (c) of section 56 (relating to regular tax deductions <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s56">26 USC 56</ref>.</p></sidenote> defined) is amended by striking out “<quotedText>and 43</quotedText>” and inserting in lieu thereof “<quotedText>43, and 44G</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>Subsection (a) of section 6699 (relating to assessable penalties <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6699">26 USC 6699</ref>.</p></sidenote> relating to tax credit employee stock ownership plan) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>or a credit allowable under section 44G (relating to the employee stock ownership credit)</quotedText>” after “<quotedText>employee plan credit</quotedText>”,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>section 409A, or</quotedText>” in paragraph (1) and inserting in lieu thereof “<quotedText>section 409A with respect to a qualified investment made before January 1, 1983,</quotedText>”,</content></subparagraph> <page identifier="/us/stat/95/294">95 STAT. 294</page> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by inserting after paragraph (2) the following new paragraphs: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>fails to satisfy any requirement provided under section <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 290.</p></sidenote> 409A with respect to a credit claimed under section 44G in taxable years ending after December 31, 1982, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>fails to make any contribution which is required under section 44G(c)(1)(B) within the period required for making such contribution,”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(4) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6699">26 USC 6699</ref>.</p></sidenote> <content class="inline">Paragraph (2) of section 6699 is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Maximum and minimum amount</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><chapeau>The amount determined under paragraph (1) with respect to a failure described in paragraph (1) or (2) of subsection (a)—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>shall not exceed the amount of the employee plan credit claimed by the employer to which such failure relates, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>shall not be less than the product of one-half of 1 percent of the amount referred to in subparagraph (A), multiplied by the number of months (or parts thereof) during which such failure continues.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>The amount determined under paragraph (1) with respect to a failure described in paragraph (3) or (4) of subsection (a)—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>shall not exceed the amount of the credit claimed by the employer under section 44G to which such failure relates, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>shall not be less than the product of one-half of 1 percent of the amount referred to in subparagraph (A), multiplied by the number of months (or parts thereof) during which such failure continues.”</content> </clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Technical Amendments Related to Carryover and Carryback of Credits</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Carryover of credit</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 246.</p></sidenote> <content class="inline">Subparagraph (A) of section 55(c)(4) (relating to credits), as amended by this Act, is amended by inserting “<quotedText>44G(b)(1),</quotedText>” before “<quotedText>53(b)</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 226.</p></sidenote> <content>Subsection (c) of section 381 (relating to items of the distributor or transferor corporation), as amended by this Act, is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="29">“(29) </num> <heading><inline class="smallCaps">Credit under section 44g</inline>.—</heading><content>The acquiring corporation shall take into account (to the extent proper to carry out the purposes of this section and section 44G, and under such regulations as may be prescribed by the Secretary) the items required to be taken into account for purposes of section 44G in respect of the distributor or transferor corporation.”</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><chapeau>Section 383 (relating to special limitations on unused investment credits, work incentive program credits, new employee credits, alcohol fuel credits, foreign taxes, and capital losses), as in effect for taxable years beginning with and after the first taxable year to which the amendments <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1">26 USC 1 note</ref>.</p></sidenote> made by the Tax Reform Act of 1976 apply, is amended—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by inserting “<quotedText>to any unused credit of the corporation under section 44G(b)(2),</quotedText>” after “<quotedText>44F(g)(2),</quotedText>”, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by inserting “<b>EMPLOYEE STOCK OWNERSHIP CREDITS,</b>” after “<b>RESEARCH CREDITS,</b>” in the section heading.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s383">26 USC 383</ref>.</p></sidenote> <chapeau class="inline">Section 383 (as in effect on the day before the date of the enactment of the Tax Reform Act of 1976) is amended—</chapeau> <page identifier="/us/stat/95/295">95 STAT. 295</page> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by inserting “<quotedText>to any unused credit of the corporation which could otherwise be carried forward under section 44G(b)(2),</quotedText>” after “<quotedText>44F(g)(2),</quotedText>”, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by inserting “<b>EMPLOYEE STOCK OWNERSHIP CREDITS,</b>” after “<b>RESEARCH CREDITS,</b>” in the section heading.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>The table of sections for part V of subchapter C of chapter 1 is amended by inserting “<quotedText>employee stock ownership credits,</quotedText>” after “<quotedText>research credits,</quotedText>” in the item relating to section 383.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Carryback of credit</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>Subparagraph (C) of section 6511(d)(4) (defining credit <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 247.</p></sidenote> carryback), as amended by this Act, is amended by striking out “<quotedText>and research credit carryback</quotedText>” and inserting in lieu thereof “<quotedText>research credit carryback, and employee stock ownership credit carryback</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><chapeau>Section 6411 (relating to quick refunds in respect of <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 247.</p></sidenote> tentative carryback adjustments), as amended by this Act, is amended—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by striking out “<quotedText>or unused research credit</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>unused research credit, or unused employee stock ownership credit</quotedText>”;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by inserting “<quotedText>by an employee stock ownership credit carryback provided by section 44G(b)(2)</quotedText>” after “by <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 290.</p></sidenote> a research and experimental credit carryback provided in section 44F(g)(2)”, in the first sentence of subsection <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 241.</p></sidenote> (a);</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>by striking out “<quotedText>or a research credit carryback from</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>a research credit carryback, or employee stock ownership credit carryback from</quotedText>”; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">(iv) </num><content>by striking out “<quotedText>new employee credit carryback)</quotedText>” in the second sentence of subsection (a) and inserting in lieu thereof “<quotedText>new employee credit carryback, or, in the case of an employee stock ownership credit carryback, to an investment credit carryback, a new employee credit carryback or a research and experimental credit carryback)</quotedText>”.</content> </clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <heading><inline class="smallCaps">Other Technical and Clerical Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Subsection (b) of section 6096 (relating to designation of <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 247.</p></sidenote> income tax payments to Presidential Election Campaign Fund), as amended by this Act, is amended by striking out “<quotedText>and 44F</quotedText>” and inserting in lieu thereof “<quotedText>44F, and 44G</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 44F the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 44G.</designator> <label>Employee stock ownership credit.”</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>The amendments made by subsection (a) shall apply to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s44G">26 USC 44G note</ref>.</p></sidenote> aggregate compensation (within the meaning of section 415(c)(3) of the Internal Revenue Code of 1954), paid or accrued after December 31, 1982, in taxable years ending after such date.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The amendments made by subsections (b) and (c) shall apply <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s404">26 USC 404 note</ref>.</p></sidenote> to taxable years ending after December 31, 1982.</content></paragraph> </subsection> </section> <page identifier="/us/stat/95/296">95 STAT. 296</page> <section><num value="332">SEC. 332. </num> <heading>TERMINATION OF THE PORTION OF THE INVESTMENT CREDIT ATTRIBUTABLE TO EMPLOYEE PLAN PERCENTAGE.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s46">26 USC 46</ref>.</p></sidenote><inline class="smallCaps">In General</inline>.—</heading><chapeau>Subparagraph (E) of section 46(a)(2) (relating to employee plan percentage) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>December 31, 1983</quotedText>” in clauses (i) and (ii) and inserting in lieu thereof “<quotedText>December 31, 1982</quotedText>”,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>and</quotedText>” at the end of clause (i),</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out the period at the end of clause (ii) and inserting in lieu thereof “<quotedText>, and</quotedText>”, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by inserting after clause (ii) the following new clause: <quotedContent> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>with respect to any period beginning after December 31, 1982, zero.”</content> </clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s48">26 USC 48</ref>.</p></sidenote><inline class="smallCaps">Technical Amendment</inline>.—</heading><content>Clause (i) of section 48(n)(1)(A) (relating to requirements for allowance of employee plan percentage) is amended by striking out “<quotedText>equal to</quotedText>” and inserting in lieu thereof “<quotedText>which does not exceed</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s46">26 USC 46 note</ref>.</p></sidenote> <content class="inline">The amendments made by subsection (a) shall be effective on the date of enactment of this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s48">26 USC 48 note</ref>.</p></sidenote> <content class="inline">The amendment made by subsection (b) shall apply to qualified investments made after December 31, 1981.</content></paragraph> </subsection> </section> <section><num value="333">SEC. 333. </num> <heading>TAX TREATMENT OF CONTRIBUTIONS ATTRIBUTABLE TO PRINCIPAL AND INTEREST PAYMENTS IN CONNECTION WITH AN EMPLOYEE STOCK OWNERSHIP PLAN.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s404">26 USC 404</ref>.</p></sidenote><inline class="smallCaps">Deductibility</inline>.—</heading><content>Section 404(a) (relating to deductions for employer contributions to an employees’ trust) is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="10">“(10) </num> <heading><inline class="smallCaps">Certain contributions to employee stock ownership plans</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">Principal payments</inline>.—</heading><content>Notwithstanding the provisions of paragraphs (3) and (7), if contributions are paid into a trust which forms a part of an employee stock ownership plan (as described in section 4975(e)(7)), and such contributions are, on or before the time prescribed in paragraph (6), applied by the plan to the repayment of the principal of a loan incurred for the purpose of acquiring qualifying employer securities (as described in section 4975(e)(8)), such contributions shall be deductible under this paragraph for the taxable year determined under paragraph (6). The amount deductible under this paragraph shall not, however, exceed 25 percent of the compensation otherwise paid or accrued during the taxable year to the employees under such employee stock ownership plan. Any amount paid into such trust in any taxable year in excess of the amount deductible under this paragraph shall be deductible in the succeeding taxable years in order of time to the extent of the difference between the amount paid and deductible in each such succeeding year and the maximum amount deductible for such year under the preceding sentence.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Interest payment</inline>.—</heading><content>Notwithstanding the provisions of paragraphs (3) and (7), if contributions are made to an employee stock ownership plan (described in subparagraph (A)) and such contributions are applied by the plan to the repayment of interest on a loan incurred for the purpose of acquiring qualifying employer securities (as described in subparagraph (A)), such contributions shall be deductible for <page identifier="/us/stat/95/297">95 STAT. 297</page> the taxable year with respect to which such contributions are made as determined under paragraph (6).”</content></subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Exclusion From Limitation on Annual Additions</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 415(c)(6) (relating to limitations on <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s415">26 USC 415</ref>.</p></sidenote> benefits and contributions made under qualified plans) is amended by adding at the end thereof the following new subparagraph: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><chapeau>In the case of an employee stock ownership plan (as described in section 4975(e)(7)), under which no more than one-third of the employer contributions for a year which are deductible under paragraph (10) of section 404(a) are allocated to the group of employees consisting of officers, shareholders owning more than 10 percent of the employer’s stock (determined under subparagraph (B)(iv)), or employees described in subparagraph (B)(iii), the limitations imposed by this section shall not apply to—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>forfeitures of employer securities under an employee stock ownership plan (as described in section 4975(e)(7)) if such securities were acquired with the proceeds of a loan (as described in section 404(a)(10)(A)), or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>employer contributions to such an employee stock ownership plan which are deductible under section 404(a)(10)(B) and charged against the participant’s <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 296.</p></sidenote> account.”</content> </clause> </subparagraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by this subsection <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s415">26 USC 415 note</ref>.</p></sidenote> shall apply to years beginning after December 31, 1981.</content></paragraph> </subsection> </section> <section><num value="334">SEC. 334. </num> <heading>CASH DISTRIBUTIONS FROM AN EMPLOYEE STOCK OWNERSHIP PLAN.</heading> <chapeau>Section 409A(h)(2) (relating to right to demand employer securities) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s409A">26 USC 409A</ref>.</p></sidenote> is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by adding at the end thereof the following new sentence: “In the case of an employer whose charter or bylaws restrict the ownership of substantially all outstanding employer securities to employees or to a trust described in section 401(a), a plan which otherwise meets the requirements of this subsection or section 4975(e)(7) shall not be considered to have failed to meet the requirements of section 401(a) merely because it does not permit a participant to exercise the right described in paragraph (1)(A) if such plan provides that participants entitled to a distribution from the plan shall have a right to receive such distribution in cash.”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>this section</quotedText>” in the first sentence thereof and inserting in lieu thereof “<quotedText>this subsection</quotedText>”.</content></paragraph> </section> <section><num value="335">SEC. 335. </num> <heading>PUT OPTION FOR STOCK BONUS PLANS.</heading> <content>Section 401(a)(23) (relating to cash distribution option for stock <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s401">26 USC 401</ref>.</p></sidenote> bonus plans) is amended by striking out “<quotedText>409A(h)(2)</quotedText>” and inserting in lieu thereof “<quotedText>409A(h), except that in applying section 409A(h) for purposes of this paragraph, the term ‘employer securities’ shall include any securities of the employer held by the plan</quotedText>”.</content> </section> <section><num value="336">SEC. 336. </num> <heading>PUT OPTION REQUIREMENTS FOR BANKS; PUT OPTION PERIOD.</heading> <content>Section 409A(h) (relating to put options for employee stock ownership <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Supra</i>.</p></sidenote> plans) is amended by adding at the end thereof the following new paragraphs: <page identifier="/us/stat/95/298">95 STAT. 298</page> <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Special rule for banks</inline>.—</heading><content>In the case of a plan established and maintained by a bank (as defined in section 581) which is prohibited by law from redeeming or purchasing its own securities, the requirements of paragraph (1)(B) shall not apply if the plan provides that participants entitled to a distribution from the plan shall have a right to receive a distribution in cash.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Put option period</inline>.—</heading><content>An employer shall be deemed to satisfy the requirements of paragraph (1)(B) if it provides a put option for a period of at least 60 days following the date of distribution of stock of the employer and, if the put option is not exercised within such 60-day period, for an additional period of at least 60 days in the following plan year (as provided in regulations promulgated by the Secretary).”</content></paragraph> </quotedContent> </content> </section> <section><num value="337">SEC. 337. </num> <heading>DISTRIBUTION OF EMPLOYER SECURITIES FROM A TAX CREDIT EMPLOYEE STOCK OWNERSHIP PLAN IN THE CASE OF A SALE OF EMPLOYER ASSETS OR STOCK.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s409">26 USC 409A</ref>.</p></sidenote><inline class="smallCaps">In General</inline>.—</heading><content>Section 409A(d) (relating to distribution of employer securities) is amended by striking out the last sentence thereof and inserting in lieu thereof the following: “To the extent provided in the plan, the preceding sentence shall not apply in the case of— <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>death, disability, or separation from service;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>a transfer of a participant to the employment of an acquiring employer from the employment of the selling corporation in the case of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>a sale to the acquiring employer of substantially all of the assets used by the selling corporation in a trade or business conducted by the selling corporation, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the sale of substantially all of the stock of a subsidiary of the employer, or</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>with respect to the stock of a selling corporation, a disposition of such selling corporation’s interest in a subsidiary when the participant continues employment with such subsidiary.”</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s409A">26 USC 409A note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to distributions described in section 409A(d) of the Internal Revenue Code of 1954 (or any corresponding provision of prior law) made after March 29, 1975.</content> </subsection> </section> <section><num value="338">SEC. 338. </num> <heading>PASS THROUGH OF VOTING RIGHTS ON EMPLOYER SECURITIES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s401">26 USC 401</ref>.</p></sidenote><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (22) of section 401(a) (relating to qualified pension, profit-sharing, and stock bonus plans) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="22">“(22) </num><chapeau>if a defined contribution plan (other than a profit-sharing plan)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>is established by an employer whose stock is not publicly traded, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>after acquiring securities of the employer, more than 10 percent of the total assets of the plan are securities of the employer,</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">any trust forming part of such plan shall not constitute a qualified trust under this section unless the plan meets the requirements of subsection (e) of section 409A.”</continuation> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s401">26 USC 401 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to acquisitions of securities after December 31, 1979.</content> </subsection> </section> <page identifier="/us/stat/95/299">95 STAT. 299</page> <section><num value="339">SEC. 339. </num> <heading>EFFECTIVE DATE. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s401">26 USC 401 note</ref>.</p></sidenote></heading> <content>Except as otherwise provided, the amendments made by this subtitle shall apply to taxable years beginning after December 31, 1981.</content> </section> </subtitle> <num value="IV">TITLE IV—</num><heading>ESTATE AND GIFT TAX PROVISIONS</heading> <subtitle><num value="A">Subtitle A—</num><heading>Increase in Unified Credit; Rate Reduction; Unlimited Marital Deduction</heading> <section><num value="401">SEC. 401. </num> <heading>INCREASE IN UNIFIED CREDIT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Credit Against Estate Tax</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (a) of section 2010 (relating to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2010">26 USC 2010</ref>.</p></sidenote> unified credit against estate tax) is amended by striking out “<quotedText>$47,000</quotedText>” and inserting in lieu thereof “<quotedText>$192,800</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>Subsection (b) of section 2010 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Phase-in of Credit</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="width:70%; text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of decedents dying in:</b></td> <td style="width:30%; text-align:right; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">Subsection (a) shall be applied by substituting for ‘$192,800’ the following amount:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1982</td> <td style="text-align:right; vertical-align:top">$62,800 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1983</td> <td style="text-align:right; vertical-align:top">79,300 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1984</td> <td style="text-align:right; vertical-align:top">96,300 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1985</td> <td style="text-align:right; vertical-align:top">121,800 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1986</td> <td style="text-align:right; vertical-align:top">155,800.”</td> </tr> </tbody> </table> </content> </subsection> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><chapeau>Subsection (a) of section 6018 (relating to estate tax <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6018">26 USC 6018</ref>.</p></sidenote> returns by executors) is amended—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by striking out “<quotedText>$175,000</quotedText>” in paragraph (1) and inserting in lieu thereof “<quotedText>$600,000</quotedText>”; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by striking out paragraph (3) and inserting in lieu thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Phase-in of filing requirement amount</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="width:70%; text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of decedents dying in:</b></td> <td style="width:30%; text-align:right; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">Paragraph (1) shall be applied by substituting for ‘$600,000’ the following amount:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1982</td> <td style="text-align:right; vertical-align:top">$225,000 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1983</td> <td style="text-align:right; vertical-align:top">275,000 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1984</td> <td style="text-align:right; vertical-align:top">325,000 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1985</td> <td style="text-align:right; vertical-align:top">400,000 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1986</td> <td style="text-align:right; vertical-align:top">500,000.”</td> </tr> </tbody> </table> </content></paragraph> </quotedContent> </content> </clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Credit Against Gift Tax</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (1) of section 2505(a) (relating to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2505">26 USC 2505</ref>.</p></sidenote> unified credit against gift tax) is amended by striking out “<quotedText>$47,000</quotedText>” and inserting in lieu thereof “<quotedText>$192,800</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Subsection (b) of section 2505 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Phase-in of Credit</inline>.—</heading><content> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="width:70%; text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of gifts made in:</b></td> <td style="width:30%; text-align:right; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">Subsection (a)(1) shall be applied by substituting for ‘$192,800’ the following amount:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1982</td> <td style="text-align:right; vertical-align:top">$62,800 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1983</td> <td style="text-align:right; vertical-align:top">79,300 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1984</td> <td style="text-align:right; vertical-align:top">96,300 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1985</td> <td style="text-align:right; vertical-align:top">121,800 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1986</td> <td style="text-align:right; vertical-align:top">155,800.”</td> </tr> </tbody> </table> </content> </subsection> </quotedContent> </content></paragraph> </subsection> <page identifier="/us/stat/95/300">95 STAT. 300</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading><chapeau>The amendments made—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2010">26 USC 2010 note</ref>.</p></sidenote> <content class="inline">by subsection (a) shall apply to the estates of decedents note dying after December 31, 1981, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2505">26 USC 2505 note</ref>.</p></sidenote> <content class="inline">by subsection (b) shall apply to gifts made after such date.</content></paragraph> </subsection> </section> <section><num value="402">SEC. 402. </num> <heading>REDUCTION IN MAXIMUM RATES OF TAX.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2001">26 USC 2001</ref>.</p></sidenote><inline class="smallCaps">50 Percent Maximum Rate</inline>.—</heading><content>Subsection (c) of section 2001 (relating to rate schedule) is amended by striking out the item beginning “<quotedText>Over $2,500,000</quotedText>” and all that follows and inserting in lieu thereof the following new item: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">“Over $2,500,000</td> <td style="text-align:left; vertical-align:top">$1,025,800, plus 50% of the excess over $2,500,000.”</td> </tr> </tbody> </table> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Phase-In of 50 Percent Maximum Rate</inline>.—</heading><chapeau>Subsection (c) of section 2001 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>(c) <inline class="smallCaps">Rate Schedule</inline>.—</quotedText>” and inserting in lieu thereof the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Rate Schedule</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content><inline class="smallCaps">In General</inline>.—”, and</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Phase-in of 50 percent maximum rate</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of decedents dying, and gifts made, before 1985, there shall be substituted for the last item in the schedule contained in paragraph (1) the items determined under this paragraph.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">For 1982</inline>.—</heading><content>In the case of decedents dying, and gifts made, in 1982, the substitution under this paragraph shall be as follows: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">“Over $2,500,000 but not over $3,000,000</td> <td style="text-align:left; vertical-align:top">$1,025,800, plus 53% of the excess over $2,500,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $3,000,000 but not over $3,500,000</td> <td style="text-align:left; vertical-align:top">$1,290,800, plus 57% of the excess over $3,000,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $3,500,000 but not over $4,000,000</td> <td style="text-align:left; vertical-align:top">$1,575,800, plus 61% of the excess over $3,500,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $4,000,000</td> <td style="text-align:left; vertical-align:top">$1,880,800, plus 65% of the excess over $4,000,000.</td> </tr> </tbody> </table> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">For 1983</inline>.—</heading><content>In the case of decedents dying, and gifts made, in 1983, the substitution under this paragraph shall be as follows: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">“Over $2,500,000 but not over $3,000,000</td> <td style="text-align:left; vertical-align:top">$1,025,800, plus 53% of the excess over $2,500,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $3,000,000 but not over $3,500,000</td> <td style="text-align:left; vertical-align:top">$1,290,800, plus 57% of the excess over $3,000,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $3,500,000</td> <td style="text-align:left; vertical-align:top">$1,575,800, plus 60% of the excess over $3,500,000.</td> </tr> </tbody> </table> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">For 1984</inline>.—</heading><content>In the case of decedents dying, and gifts made, in 1984, the substitution under this paragraph shall be as follows: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">“Over $2,500,000 but not over $3,000,000</td> <td style="text-align:left; vertical-align:top">$1,025,800, plus 53% of the excess over $2,500,000.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">Over $3,000,000</td> <td style="text-align:left; vertical-align:top">$1,290,800, plus 55% of the excess over $3,000,000.”</td> </tr> </tbody> </table> </content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Adjustment in Computation of Tax for Gifts Made After December 31, 1976</inline>.—</heading><content>Paragraph (2) of section 2001(b) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the aggregate amount of tax which would have been payable under chapter 12 with respect to gifts made by the decedent after December 31, 1976, if the rate schedule set forth in subsection (c) (as in effect at the decedent’s death) had been applicable at the time of such gifts.”</content></paragraph> </quotedContent> </content> </subsection> <page identifier="/us/stat/95/301">95 STAT. 301</page> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2001">26 USC 2001 note</ref>.</p></sidenote> apply to estates of decedents dying after, and gifts made after, December 31, 1981.</content> </subsection> </section> <section><num value="403">SEC. 403. </num> <heading>UNLIMITED MARITAL DEDUCTION.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Estate Tax Deduction</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 2056 (relating to bequests, etc., to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2056">26 USC 2056</ref>.</p></sidenote> surviving spouses) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out subsection (c) and redesignating subsection (d) as subsection (c); and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>subsections (b) and (c)</quotedText>” in subsection (a) and inserting in lieu thereof “<quotedText>subsection (b)</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>Paragraph (2) of section 2012(b) (relating to credit for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2012">26 USC 2012</ref>.</p></sidenote> gift tax) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>if a deduction with respect to such gift is allowed under section 2056(a) (relating to marital deduction), then by the amount of such value, reduced as provided in paragraph (1); and”.</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Paragraph (5) of section 2602(c) (relating to coordination <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2602">26 USC 2602</ref>.</p></sidenote> with estate tax) is amended by striking out subparagraph (A) and redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>Subparagraph (A) of section 691(c)(3) (relating to special <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s691">26 USC 691</ref>.</p></sidenote> rules for generation-skipping transfers) is amended by striking out “<quotedText>section 2602(c)(5)(C)</quotedText>” and inserting in lieu thereof “<quotedText>section 2602(c)(5)(B)</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Gift Tax Deduction</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (a) of section 2523 (relating to gift <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2523">26 USC 2523</ref>.</p></sidenote> to spouse) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Allowance of Deduction</inline>.—</heading><content>Where a donor who is a citizen or resident transfers during the calendar year by gift an interest in property to a donee who at the time of the gift is the donor’s spouse, there shall be allowed as a deduction in computing taxable gifts for the calendar year an amount with respect to such interest equal to its value.”</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Technical amendment</inline>.—</heading><content>Section 2523 is amended by striking out subsection (f).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>So much of section 6019 (relating to gift tax returns) as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6019">26 USC 6019</ref>.</p></sidenote> follows the heading and precedes subsection (b) is amended to read as follows: <quotedContent> <p class="indent0 firstIndent1 fontsize10">“Any individual who in any calendar year makes any transfer by gift other than—</p> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>a transfer which under subsection (b) or (e) of section 2503 is not to be included in the total amount of gifts for such year, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>a transfer of an interest with respect to which a deduction is allowed under section 2523,</content></paragraph> <p class="indent0 firstIndent0 fontsize10">shall make a return for such year with respect to the gift tax imposed by subtitle B.”</p> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Paragraph (2) of section 2035(b) is amended by inserting <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2035">26 USC 2035</ref>.</p></sidenote> “<quotedText>(other than by reason of section 6019(a)(2))</quotedText>” after “<quotedText>section 6019</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Estate Tax on Property Held Jointly by Husband and Wife</inline>.</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (2) of section 2040(b) (defining <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2040">26 USC 2040</ref>.</p></sidenote> qualified joint interest) is amended to read as follows: <page identifier="/us/stat/95/302">95 STAT. 302</page> <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Qualified joint interest defined</inline>.—</heading><chapeau>For purposes of paragraph (1), the term ‘qualified joint interest’ means any interest in property held by the decedent and the decedent’s spouse as—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>tenants by the entirety, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>joint tenants with right of survivorship, but only if the decedent and the spouse of the decedent are the only joint tenants.”</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2040">26 USC 2040</ref>.</p></sidenote><inline class="smallCaps">Technical amendment</inline>.—</heading><content>Subsection (a) of section 2040 is amended by striking out “<quotedText>joint tenants</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>joint tenants with right of survivorship</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>Subsections (c), (d), and (e) of section 2040 are hereby repealed.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2515/2515A/6019">26 USC 2515, 2515A, 6019</ref>.</p></sidenote> <content class="inline">Section 2515 (relating to tenancies by the entirety in real property), section 2515A (relating to tenancies by the entirety in personal property), and subsection (c) of section 6019 (relating to gift tax return) are hereby repealed.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>The table of sections for subchapter B of chapter 12 (relating to transfers) is amended by striking out the items relating to sections 2515 and 2515A.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Election To Have Certain Life Interests Qualify for Marital Deduction</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2056">26 USC 2056</ref>.</p></sidenote><inline class="smallCaps">Estate tax</inline>.—</heading><content>Subsection (b) of section 2056 is amended by adding at the end thereof the following new paragraphs: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num> <heading><inline class="smallCaps">Election with respect to life estate for surviving spouse</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of qualified terminable interest property—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>for purposes of subsection (a), such property shall be treated as passing to the surviving spouse, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>for purposes of paragraph (1)(A), no part of such property shall be treated as passing to any person other than the surviving spouse.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Qualified terminable interest property defined</inline>.—</heading><chapeau>For purposes of this paragraph—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘qualified terminable interest property’ means property—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>which passes from the decedent,</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>in which the surviving spouse has a qualifying income interest for life, and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="III">“(III) </num><content>to which an election under this paragraph applies.</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Qualifying income interest for life</inline>.—</heading><chapeau>The surviving spouse has a qualifying income interest for life if—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>the surviving spouse is entitled to all the income from the property, payable annually or at more frequent intervals, and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>no person has a power to appoint any part of the property to any person other than the surviving spouse.</content> </subclause> <continuation class="indent3 firstIndent0 fontsize10">Subclause (II) shall not apply to a power exercisable only at or after the death of the surviving spouse.</continuation> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num> <heading><inline class="smallCaps">Property includes interest therein</inline>.—</heading><content>The term ‘property’ includes an interest in property.</content> </clause> <page identifier="/us/stat/95/303">95 STAT. 303</page> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num> <heading><inline class="smallCaps">Specific portion treated as separate property</inline>.—</heading><content>A specific portion of property shall be treated as separate property.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="v">“(v) </num> <heading><inline class="smallCaps">Election</inline>.—</heading><content>An election under this paragraph with respect to any property shall be made by the executor on the return of tax imposed by section 2001. Such an election, once made, shall be irrevocable.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num> <heading><inline class="smallCaps">Special rule for charitable remainder trusts</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If the surviving spouse of the decedent is the only noncharitable beneficiary of a qualified charitable remainder trust, paragraph (1) shall not apply to any interest in such trust which passes or has passed from the decedent to such surviving spouse.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of subparagraph (A)—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">Noncharitable beneficiary</inline>.—</heading><content>The term ‘noncharitable beneficiary’ means any beneficiary of the qualified charitable remainder trust other than an organization described in section 170(c).</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Qualified charitable remainder trust</inline>.—</heading><content>The term ‘qualified charitable remainder trust’ means a charitable remainder annuity trust or charitable remainder unitrust (described in section 664).”</content> </clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Gift tax</inline>.—</heading><content>Section 2523 is amended by adding at the end <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2523">26 USC 2523</ref>.</p></sidenote> thereof the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <heading><inline class="smallCaps">Election With Respect to Life Estate for Donee Spouse</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of qualified terminable interest property—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>for purposes of subsection (a), such property shall be treated as transferred to the donee spouse, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>for purposes of subsection (b)(1), no part of such property shall be considered as retained in the donor or transferred to any person other than the donee spouse.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Qualified terminable interest property</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘qualified terminable interest property’ means any property—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>which is transferred by the donor spouse,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>in which the donee spouse has a qualifying income interest for life, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>to which an election under this subsection applies.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Certain rules made applicable</inline>.—</heading><content>For purposes of this subsection, the rules of clauses (ii), (iii), and (iv) of section 2056(b)(7)(B) shall apply.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Election</inline>.—</heading><content>An election under this subsection with respect to any property shall be made on the return of the tax imposed by section 2501 for the calendar year in which the interest was transferred. Such an election, once made, shall be irrevocable.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num> <heading><inline class="smallCaps">Special Rule for Charitable Remainder Trusts</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If, after the transfer, the donee spouse is the only noncharitable beneficiary (other than the donor) of a qualified remainder trust, subsection (b) shall not apply to the interest in such trust which is transferred to the donee spouse.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><content>For purposes of paragraph (1), the term ‘noncharitable beneficiary’ and ‘qualified charitable remainder trust’ have the meanings given to such terms by section 2056(b)(8)(B).”</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">Treatment of spouse</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <heading><inline class="smallCaps">Inclusion in gross estate</inline>.—</heading> <page identifier="/us/stat/95/304">95 STAT. 304</page> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Part III of subchapter A of chapter 11 is amended by redesignating sections 2044 and 2045 as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2045/2046">26 USC 2045, 2046</ref>.</p></sidenote> sections 2045 and 2046, respectively, and by inserting after section 2043 the following new section: <quotedContent> <section><num value="2044">“SEC. 2044. </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2044">26 USC 2044</ref>.</p></sidenote>CERTAIN PROPERTY FOR WHICH MARITAL DEDUCTION WAS PREVIOUSLY ALLOWED.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>The value of the gross estate shall include the value of any property to which this section applies in which the decedent had a qualifying income interest for life.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Property To Which This Section Applies</inline>.—</heading><chapeau>This section applies to any property if—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><chapeau>a deduction was allowed with respect to the transfer of such property to the decedent—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 302.</p></sidenote> <content class="inline">under section 2056 by reason of subsection (b)(7) thereof, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 303.</p></sidenote> <content class="inline">under section 2523 by reason of subsection (f) thereof, and</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>section 2519 (relating to dispositions of certain life estates) did not apply with respect to a disposition by the decedent of part or all of such property.”</content></paragraph> </subsection> </section> </quotedContent> </content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>The table of sections for part III of subchapter A of chapter 11 is amended by redesignating the items relating to sections 2044 and 2045 as sections 2045 and 2046, respectively, and by inserting after the item relating to section 2043 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 2044.</designator> <label>Certain property for which marital deduction was previously allowed.”</label></referenceItem> </toc> </quotedContent> </content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <heading><inline class="smallCaps">Gift tax</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subchapter B of chapter 11 (relating to transfers) is amended by adding at the end thereof the following new section: <quotedContent> <section><num value="2519">“SEC. 2519. </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2519">26 USC 2519</ref>.</p></sidenote>DISPOSITIONS OF CERTAIN LIFE ESTATES.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Any disposition of all or part of a qualifying income interest for life in any property to which this section applies shall be treated as a transfer of such property.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Property To Which This Subsection Applies</inline>.—</heading><chapeau>This section applies to any property if a deduction was allowed with respect to the transfer of such property to the donor—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>under section 2056 by reason of subsection (b)(7) thereof, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>under section 2523 by reason of subsection (f) thereof.”</content></paragraph> </subsection> </section> </quotedContent> </content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>The table of sections for subchapter B of chapter 11 is amended by adding at the end thereof the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 2519.</designator> <label>Dispositions of certain life estates.”</label></referenceItem> </toc> </quotedContent> </content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><subparagraph class="inline"><num value="A">(A) </num><content>Subchapter C of chapter 11 is amended by inserting after section 2207 the following new section: <quotedContent> <section><num value="2207A">“SEC. 2207A. </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2207A">26 USC 2207A</ref>.</p></sidenote>RIGHT OF RECOVERY IN THE CASE OF CERTAIN MARITAL DEDUCTION PROPERTY.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Recovery With Respect to Estate Tax</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If any part of the gross estate consists of property the value of which is includible in the gross estate by reason of section 2044 (relating to certain property for which marital deduction was previously allowed), the decedent’s estate shall be entitled to recover from the person receiving the property the amount by which—</chapeau> <page identifier="/us/stat/95/305">95 STAT. 305</page> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the total tax under this chapter which has been paid, exceeds</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the total tax under this chapter which would have been payable if the value of such property had not been included in the gross estate.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Decedent may otherwise direct by will</inline>.—</heading><content>Paragraph (1) shall not apply if the decedent otherwise directs by will.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Recovery With Respect to Gift Tax</inline>.—</heading><chapeau>If for any calendar year tax is paid under chapter 12 with respect to any person by reason of property treated as transferred by such person under section 2519, <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 304.</p></sidenote> such person shall be entitled to recover from the person receiving the property the amount by which—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the total tax for such year under chapter 12, exceeds</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the total tax which would have been payable under such chapter for such year if the value of such property had not been taken into account for purposes of chapter 12.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">More Than One Recipient of Property</inline>.—</heading><content>For purposes of this section, if there is more than one person receiving the property, the right of recovery shall be against each such person.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Taxes and Interest</inline>.—</heading><content>In the case of penalties and interest attributable to additional taxes described in subsections (a) and (b), rules similar to subsections (a), (b), and (c) shall apply.”</content> </subsection> </section> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>The table of sections for subchapter C of chapter 11 is amended by inserting after the item relating to section 2207 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 2207A.</designator> <label>Right of recovery in the case of certain marital deduction property.”</label></referenceItem> </toc> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <heading><inline class="smallCaps">Effective Dates</inline>.—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2056">26 USC 2056 note</ref>.</p></sidenote></heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Except as otherwise provided in this subsection, the amendments made by this section shall apply to the estates of decedents dying after December 31, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The amendments made by paragraphs (1), (2), and (3)(A) of subsection (b), subparagraphs (B) and (C) of subsection (c)(3), and paragraphs (2) and (3)(B) of subsection (d) shall apply to gifts made after December 31, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>If—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the decedent dies after December 31, 1981,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by reason of the death of the decedent property passes from the decedent or is acquired from the decedent under a will executed before the date which is 30 days after the date of the enactment of this Act, or a trust created before such date, which contains a formula expressly providing that the spouse is to receive the maximum amount of property qualifying for the marital deduction allowable by Federal law,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>the formula referred to in subparagraph (B) was not amended to refer specifically to an unlimited marital deduction at any time after the date which is 30 days after the date of enactment of this Act, and before the death of the decedent, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>the State does not enact a statute applicable to such estate which construes this type of formula as referring to the marital deduction allowable by Federal law as amended by subsection (a),</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">then the amendment made by subsection (a) shall not apply to the estate of such decedent.</continuation> </paragraph> </subsection> </section> </subtitle> <page identifier="/us/stat/95/306">95 STAT. 306</page> <subtitle><num value="B">Subtitle B—</num><heading>Other Estate Tax Provisions</heading> <section><num value="421">SEC. 421. </num> <heading>VALUATION OF CERTAIN FARM, ETC., REAL PROPERTY.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2032A">26 USC 2032A</ref>.</p></sidenote><inline class="smallCaps">Increase in Limitation</inline>.—</heading><content>Paragraph (2) of section 2032A(a) (relating to limitation) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Limit on aggregate reduction in fair market value</inline>.—</heading><content>The aggregate decrease in the value of qualified real property taken into account for purposes of this chapter which results from the application of paragraph (1) with respect to any decedent shall not exceed the applicable limit set forth in the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="width:70%; text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of decedents dying in:</b></td> <td style="width:30%; text-align:right; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The applicable limit is:</b>  </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1981</td> <td style="text-align:right; vertical-align:top">$600,000 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1982</td> <td style="text-align:right; vertical-align:top">700,000 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1983 or thereafter</td> <td style="text-align:right; vertical-align:top">750,000.”</td> </tr> </tbody> </table> </content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Definition of Qualified Real Property</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Required use can be by member of family</inline>.—</heading><content>Paragraph (1) of section 2032A(b) (defining qualified real property) is amended by inserting “<quotedText>by the decedent or a member of the decedent’s family</quotedText>” after “<quotedText>qualified use</quotedText>” each place it appears.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Special rules for decedents who are retired or disabled and for surviving spouses</inline>.—</heading><content>Subsection (b) of section 2032A is amended by adding at the end thereof the following new paragraphs: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Decedents who are retired or disabled</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If, on the date of the decedent’s death, the requirements of paragraph (1)(C)(ii) with respect to the decedent for any property are not met, and the decedent—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>was receiving old-age benefits under title II of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s401">42 USC 401</ref>.</p></sidenote> Social Security Act for a continuous period ending on such date, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>was disabled for a continuous period ending on such date, then paragraph (1)(C)(ii) shall be applied with respect to such property by substituting ‘the date on which the longer of such continuous periods began’ for ‘the date of the decedent’s death’ in paragraph (1)(C).</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Disabled defined</inline>.—</heading><content>For purposes of subparagraph (A), an individual shall be disabled if such individual has a mental or physical impairment which renders him unable to materially participate in the operation of the farm or other business.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Coordination with recapture</inline>.—</heading><content>For purposes of subsection (c)(6)(B)(i), if the requirements of paragraph (1)(C)(ii) are met with respect to any decedent by reason of subparagraph (A), the period ending on the date on which the continuous period taken into account under subparagraph (A) began shall be treated as the period immediately before the decedent’s death.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Special rules for surviving spouses</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If property is qualified real property with respect to a decedent (hereinafter in this paragraph referred to as the ‘first decedent’) and such property was acquired from or passed from the first decedent to the surviving spouse of the first decedent, for purposes of applying this subsection and subsection (c) in the case of the estate <page identifier="/us/stat/95/307">95 STAT. 307</page> of such surviving spouse, active management of the farm or other business by the surviving spouse shall be treated as material participation by such surviving spouse in the operation of such farm or business.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><content>For the purposes of subparagraph (A), the determination of whether property is qualified real property with respect to the first decedent shall be made without regard to subparagraph (D) of paragraph (1) and without regard to whether an election under this section was made.”</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Dispositions and Failures To Use for Qualified Use</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">10-year recapture period</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (1) of section 2032A(c) (relating <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2032A">26 USC 2032A</ref>.</p></sidenote> to tax treatment of dispositions and failures to use for qualified use) is amended by striking out “<quotedText>15 years</quotedText>” and inserting in lieu thereof “<quotedText>10 years</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>Subsection (c) of section 2032A is amended by striking out paragraph (3) and redesignating paragraphs (4) through (7) as paragraphs (3) through (6), respectively.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>Subparagraph (A) of paragraph (2) of section 2032A(h) (relating to treatment of replacement property) is amended by striking out all that follows “<quotedText>involuntarily converted</quotedText>” and inserting in lieu thereof the following: “<quotedText>; except that with respect to such qualified replacement property the 10-year period under paragraph (1) of subsection (c) shall be extended by any period, beyond the 2-year period referred to in section 1033(a)(2)(B)(i), during which the qualified heir was allowed to replace the qualified real property,</quotedText>”.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>Subparagraph (C) of such paragraph (2) is amended by striking out “<quotedText>(7)</quotedText>” and inserting in lieu thereof “<quotedText>(6)</quotedText>”.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Cessation of qualified use</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (c) of section 2032A is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num> <heading><inline class="smallCaps">Special rules</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">No tax if use begins within 2 years</inline>.—</heading><chapeau>If the date on which the qualified heir begins to use the qualified real property (hereinafter in this subparagraph referred to as the commencement date) is before the date 2 years after the decedent’s death—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>no tax shall be imposed under paragraph (1) by reason of the failure by the qualified heir to so use such property before the commencement date, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the 10-year period under paragraph (1) shall be extended by the period after the decedent’s death and before the commencement date.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Active management by eligible qualified heir treated as material participation</inline>.—</heading><chapeau>For purposes of paragraph (6)(B)(ii), the active management of a farm or other business by—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>an eligible qualified heir, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>a fiduciary of an eligible qualified heir described in clause (ii) or (iii) of subparagraph (C), <page identifier="/us/stat/95/308">95 STAT. 308</page> shall be treated as material participation by such eligible qualified heir in the operation of such farm or business. In the case of an eligible qualified heir described in clause (ii), (iii), or (iv) of subparagraph (C), the preceding sentence shall apply only during periods during which such heir meets the requirements of such clause.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Eligible qualified heir</inline>.—</heading><chapeau>For purposes of this paragraph, the term ‘eligible qualified heir’ means a qualified heir who—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>is the surviving spouse of the decedent,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>has not attained the age of 21,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>is disabled (within the meaning of subsection (b)(4)(B)), or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>is a student.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Student</inline>.—</heading><content>For purposes of subparagraph (C), an individual shall be treated as a student with respect to periods during any calendar year if (and only if) such individual is a student (within the meaning of section 151(e)(4)) for such calendar year.”</content></subparagraph> </paragraph> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2032A">26 USC 2032A</ref>.</p></sidenote> <content class="inline">Subsection (e) of section 2032A (relating to definitions and special rules) is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="12">“(12) </num> <heading><inline class="smallCaps">Active management</inline>.—</heading><content>The term ‘active management’ means the making of the management decisions of a business (other than the daily operating decisions).”</content></paragraph> </quotedContent> </content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>Paragraph (6) of section 2032A(c) (as redesignated <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 307.</p></sidenote> by paragraph (1)) is amended by striking out “<quotedText>3 years or more</quotedText>” and inserting in lieu thereof “<quotedText>more than 3 years</quotedText>”.</content> </clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Exchange of Qualified Real Property</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Section 2032A (relating to valuation of certain farm, etc., real property) is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">Exchanges of Qualified Real Property</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Treatment of property exchanged</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">Exchanges solely for qualified exchange property</inline>.—</heading><content>If an interest in qualified real property is exchanged solely for an interest in qualified exchange property in a transaction which qualifies under section 1031, no tax shall be imposed by subsection (c) by reason of such exchange.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Exchanges where other property received</inline>.—</heading><chapeau>If an interest in qualified real property is exchanged for an interest in qualified exchange property and other property in a transaction which qualifies under section 1031, the amount of the tax imposed by subsection (c) by reason of such exchange shall be the amount of tax which (but for this subparagraph) would have been imposed on such exchange under subsection (c)(1), reduced by an amount which—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>bears the same ratio to such tax, as</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the fair market value of the other property bears to the fair market value of the qualified real property exchanged.</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">For purposes of clause (ii) of the preceding sentence, fair market value shall be determined as of the time of the exchange.</continuation> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Treatment of qualified exchange property</inline>.—</heading><chapeau>For purposes of subsection (c)—</chapeau> <page identifier="/us/stat/95/309">95 STAT. 309</page> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>any interest in qualified exchange property shall be treated in the same manner as if it were a portion of the interest in qualified real property which was exchanged,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>any tax imposed by subsection (c) by reason of the exchange shall be treated as a tax imposed on a partial disposition, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>paragraph (6) of subsection (c) shall be applied by treating material participation with respect to the exchanged property as material participation with respect to the qualified exchange property.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Qualified exchange property</inline>.—</heading><content>For purposes of this subsection, the term ‘qualified exchange property’ means real property which is to be used for the qualified use set forth in subparagraph (A), (B), or (C) of subsection (b)(2) under which the real property exchanged therefor originally qualified under subsection (a).”</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><chapeau>Paragraph (1) of section 2032A(f) (relating to statute of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2032A">26 USC 2032A</ref>.</p></sidenote> limitations) is amended—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by inserting “<quotedText>or exchange</quotedText>” after “<quotedText>conversion</quotedText>”,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by inserting “<quotedText>or (i)</quotedText>” after “<quotedText>(h)</quotedText>”, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>by inserting “<quotedText>or of the exchange of property</quotedText>” after “<quotedText>replace</quotedText>”.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Paragraph (2) of section 6324B(c) (relating to special <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6324B">26 USC 6324B</ref>.</p></sidenote> liens) is amended by inserting “<quotedText>and qualified exchange property (within the meaning of section 2032A(i)(3))</quotedText>” before <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 308.</p></sidenote> the period at the end thereof.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <heading><inline class="smallCaps">Election Requirement of Special Rules for Involuntary Conversions Repealed</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Section 2032A(h) (relating to special rules for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2032A">26 USC 2032A</ref>.</p></sidenote> involuntary conversions of qualified real property) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>and the qualified heir makes an election under this subsection</quotedText>” in paragraph (1)(A); and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out paragraph (5).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Paragraph (1) of section 2032A(f) is amended by striking out “<quotedText>to which an election under subsection (h)</quotedText>” and inserting in lieu thereof “<quotedText>to which subsection (h)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <heading><inline class="smallCaps">Method of Valuing Farms</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Paragraph (7) of section 2032A(e) (relating to method of valuing farms) is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Value based on net share rental in certain cases</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If there is no comparable land from which the average annual gross cash rental may be determined but there is comparable land from which the average net share rental may be determined, subparagraph (A)(i) shall be applied by substituting ‘average annual net share rental’ for ‘average annual gross cash rental’.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Net share rental</inline>.—</heading><chapeau>For purposes of this paragraph, the term ‘net share rental’ means the excess of—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>the value of the produce received by the lessor of the land on which such produce is grown, over</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>the cash operating expenses of growing such produce which, under the lease, are paid by the lessor.”</content> </subclause> </clause> </subparagraph> </quotedContent> </content></paragraph> <page identifier="/us/stat/95/310">95 STAT. 310</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 309.</p></sidenote> <content class="inline">Subparagraph (C) of section 2032A(e)(7) (as redesignated by paragraph (1)) is amended by inserting after “<quotedText>determined</quotedText>” the following: “<quotedText>and that there is no comparable land from which the average net share rental may be determined</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num> <heading><inline class="smallCaps">Basis Increase Where Recapture</inline>.—</heading><content>Subsection (c) of section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1016">26 USC 1016</ref>.</p></sidenote> 1016 (relating to adjustments to basis) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Increase in Basis of Property on Which Additional Estate Tax Is Imposed</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Tax imposed with respect to entire interest</inline>.—</heading><chapeau>If an additional estate tax is imposed under section 2032A(c)(1) with respect to any interest in property and the qualified heir makes an election under this subsection with respect to the imposition of such tax, the adjusted basis of such interest shall be increased by an amount equal to the excess of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the fair market value of such interest on the date of the decedent’s death (or the alternate valuation date under section 2032, if the executor of the decedent’s estate elected the application of such section), over</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the value of such interest determined under section 2032A(a).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Partial dispositions</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of any partial disposition for which an election under this subsection is made, the increase in basis under paragraph (1) shall be an amount—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>which bears the same ratio to the increase which would be determined under paragraph (1) (without regard to this paragraph) with respect to the entire interest, as</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the amount of the tax imposed under section 2032A(c)(1) with respect to such disposition bears to the adjusted tax difference attributable to the entire interest (as determined under section 2032A(c)(2)(B)).</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Partial disposition</inline>.—</heading><content>For purposes of subparagraph (A), the term ‘partial disposition’ means any disposition or cessation to which subsection (c)(2)(D), (h)(1)(B), or (i)(1)(B) of section 2032A applies.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Time adjustment made</inline>.—</heading><content>Any increase in basis under this subsection shall be deemed to have occurred immediately before the disposition or cessation resulting in the imposition of the tax under section 2032A(c)(1).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Special rule in the case of substituted property</inline>.—</heading><content>If the tax under section 2032A(c)(1) is imposed with respect to qualified replacement property (as defined in section 2032A(h)(3)(B)) or qualified exchange property (as defined in <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 308.</p></sidenote> section 2032A(i)(3)), the increase in basis under paragraph (1) shall be made by reference to the property involuntarily converted or exchanged (as the case may be).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Election</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>An election under this subsection shall be made at such time and in such manner as the Secretary shall by regulations prescribe. Such an election, once made, shall be irrevocable.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Interest on recaptured amount</inline>.—</heading><content>If an election is made under this subsection with respect to any additional estate tax imposed under section 2032A(c)(1), for purposes of section 6601 (relating to interest on underpayments), the last date prescribed for payment of such tax shall be deemed to be the last date prescribed for payment of the tax imposed by <page identifier="/us/stat/95/311">95 STAT. 311</page> section 2001 with respect to the estate of the decedent (as determined for purposes of section 6601).”</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num> <heading><inline class="smallCaps">Special Rules for Woodlands</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Value of timber included in valuation; active management treated as material participation</inline>.—</heading><content>Subsection (e) of section 2032A is amended by adding at the end thereof the <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 308.</p></sidenote> following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="13">“(13) </num> <heading><inline class="smallCaps">Special rules for woodlands</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of any qualified woodland with respect to which the executor elects to have this subparagraph apply, trees growing on such woodland shall not be treated as a crop.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Qualified woodland</inline>.—</heading><chapeau>The term ‘qualified woodland’ means any real property which—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>is used in timber operations, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>is an identifiable area of land such as an acre or other area for which records are normally maintained in conducting timber operations.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Timber operations</inline>.—</heading><chapeau>The term ‘timber operations’ means—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the planting, cultivating, caring for, or cutting of trees, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the preparation (other than milling) of trees for market.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Election</inline>.—</heading><content>An election under subparagraph (A) shall be made on the return of the tax imposed by section 2001. Such election shall be made in such manner as the Secretary shall by regulations prescribe. Such an election, once made, shall be irrevocable.”</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Recapture upon disposition of timber</inline>.—</heading><content>Paragraph (2) of section 2032A(c) (relating to amount of additional tax) is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2032A">26 USC 2032A</ref>.</p></sidenote> amended by adding at the end thereof the following new subparagraph: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num> <heading><inline class="smallCaps">Special rule for disposition of timber</inline>.—</heading><chapeau>In the case of qualified woodland to which an election under subsection (e)(13)(A) applies, if the qualified heir disposes of (or severs) <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Supra</i>.</p></sidenote> any standing timber on such qualified woodland—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>such disposition (or severance) shall be treated as a disposition of a portion of the interest of the qualified heir in such property, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><chapeau>the amount of the additional tax imposed by paragraph (1) with respect to such disposition shall be an amount equal to the lesser of—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>the amount realized on such disposition (or, in any case other than a sale or exchange at arm’s length, the fair market value of the portion of the interest disposed or severed), or</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>the amount of additional tax determined under this paragraph (without regard to this subparagraph) if the entire interest of the qualified heir in the qualified woodland had been disposed of, less the sum of the amount of the additional tax imposed with respect to all prior transactions involving such woodland to which this subparagraph applied.</content> </subclause> </clause> <continuation class="indent2 firstIndent0 fontsize10">For purposes of the preceding sentence, the disposition of a right to sever shall be treated as the disposition of the standing timber. The amount of additional tax imposed <page identifier="/us/stat/95/312">95 STAT. 312</page> under paragraph (1) in any case in which a qualified heir disposes of his entire interest in the qualified woodland shall be reduced by any amount determined under this subparagraph with respect to such woodland.”</continuation> </subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num> <heading><inline class="smallCaps">Definition of Family Member</inline>.—</heading><content>Paragraph (2) of section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2032A">26 USC 2032A</ref>.</p></sidenote> 2032A(e) (defining member of family) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Member of family</inline>.—</heading><chapeau>The term ‘member of the family’ means, with respect to any individual, only—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>an ancestor of such individual,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the spouse of such individual,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>a lineal descendant of such individual, of such individual’s spouse, or of a parent of such individual, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>the spouse of any lineal descendant described in subparagraph (C).</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">For purposes of the preceding sentence, a legally adopted child of an individual shall be treated as the child of such individual by blood.”</continuation> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="j">(j) </num> <heading><inline class="smallCaps">Miscellaneous Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Property transferred to certain discretionary trusts</inline>.—</heading><content>Subsection (g) of section 2032A (relating to application of section 2032A and section 6324B to interests in partnerships, corporations, and trusts) is amended by adding at the end thereof the following new sentence: “For purposes of the preceding sentence, an interest in a discretionary trust all the beneficiaries of which are qualified heirs shall be treated as a present interest.”</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Property purchased from decedent’s estate eligible for special valuation</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (9) of section 2032A(e) is amended by striking out subparagraphs (B) and (C) and inserting in lieu thereof the following: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>such property is acquired by any person from the estate, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>such property is acquired by any person from a trust (to the extent such property is includible in the gross estate of the decedent).”</content></subparagraph> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <heading><inline class="smallCaps">Nonrecognition of gain</inline>.—</heading><content>The section heading and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/300">94 Stat. 300</ref>.</p></sidenote> subsections (a) and (b) of section 1040 are amended to read as follows: <quotedContent> <section><num value="1040">“SEC. 1040. </num> <heading>TRANSFER OF CERTAIN FARM, ETC., REAL PROPERTY.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>If the executor of the estate of any decedent transfers to a qualified heir (within the meaning of section 2032A(e)(1)) any property with respect to which an election was made under section 2032A, then gain on such transfer shall be recognized to the estate only to the extent that, on the date of such exchange, the fair market value of such property exceeds the value of such property <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2001">26 USC 2001 <i>et seq</i></ref>.</p></sidenote> for purposes of chapter 11 (determined without regard to section 2032A).</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Similar Rule for Certain Trusts</inline>.—</heading><content>To the extent provided in regulations prescribed by the Secretary, a rule similar to the rule provided in subsection (a) shall apply where the trustee of a trust (any portion of which is included in the gross estate of the decedent) transfers property with respect to which an election was made under section 2032A.”</content> </subsection> </section> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for part III of subchapter O of chapter 1 is amended by striking out <page identifier="/us/stat/95/313">95 STAT. 313</page> the item relating to section 1040 and inserting in lieu thereof the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 1040.</designator> <label>Transfer of certain farm, etc., real property.”</label></referenceItem> </toc> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">Election may be made on late returns</inline>.—</heading><content>Paragraph (1) of section 2032A(d) (relating to election) is amended to read as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2032A">26 USC 2032A</ref>.</p></sidenote> follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Election</inline>.—</heading><content>The election under this section shall be made on the return of the tax imposed by section 2001. Such election shall be made in such manner as the Secretary shall by regulations prescribe. Such an election, once made, shall be irrevocable.”</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <heading><inline class="smallCaps">Treatment of replacement property</inline>.—</heading><content>Subsection (e) of section 2032A is amended by adding at the end thereof the <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 311.</p></sidenote> following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="14">“(14) </num> <heading><inline class="smallCaps">Treatment of replacement property acquired in section 1031 or 1033 transactions</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of any qualified replacement property, any period during which there was ownership, qualified use, or material participation with respect to the replaced property by the decedent or any member of his family shall be treated as a period during which there was such ownership, use, or material participation (as the case may be) with respect to the qualified replacement property.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><content>Subparagraph (A) shall not apply to the extent that the fair market value of the qualified replacement property (as of the date of its acquisition) exceeds the fair market value of the replaced property (as of the date of its disposition).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of this paragraph—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">Qualified replacement property</inline>.—</heading><chapeau>The term ‘qualified replacement property’ means any real property which is—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>acquired in an exchange which qualifies under section 1031, or</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>the acquisition of which results in the nonrecognition of gain under section 1033.</content> </subclause> <continuation class="indent3 firstIndent0 fontsize10">Such term shall only include property which is used for the same qualified use as the replaced property was being used before the exchange.</continuation> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Replaced property</inline>.—</heading><chapeau>The term ‘replaced property’ means—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>the property transferred in the exchange which qualifies under section 1031, or</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>the property compulsorily or involuntarily converted (within the meaning of section 1033).”</content> </subclause> </clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="k">(k) </num> <heading><inline class="smallCaps">Effective Dates</inline>.—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2032A">26 USC 2032A note</ref>.</p></sidenote></heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as otherwise provided in this subsection, the amendments made by this section shall apply with respect to the estates of decedents dying after December 31, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Increase in limitation</inline>.—</heading><content>The amendment made by subsection (a) shall apply with respect to the estates of decedents dying after December 31, 1980.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">Subsection (d)</inline>.—</heading><content>The amendments made by subsection (d) shall apply with respect to exchanges after December 31, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <heading><inline class="smallCaps">Subsection (e)</inline>.—</heading><content>The amendments made by subsection (e) shall apply with respect to involuntary conversions after December 31, 1981.</content></paragraph> <page identifier="/us/stat/95/314">95 STAT. 314</page> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2032A">26 USC 2032A note</ref>.</p></sidenote><inline class="smallCaps">Certain amendments made retroactive to 1976</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendments made by subsections (b)(1), (c)(2), (j)(1), and (j)(2) shall apply with respect to the estates of decedents dying after December 31, 1976.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <heading><inline class="smallCaps">Timely election required</inline>.—</heading><content>Subparagraph (A) shall only apply in the case of an estate if a timely election under section 2032A was made with respect to such estate. If the time for making an election under section 2032A with respect to any estate would have otherwise expired after July 28, 1980, the time for making such election shall not expire before the date 6 months after the date of the enactment of this Act.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num> <heading><inline class="smallCaps">Reinstatement of elections</inline>.—</heading><content>If any election under section 2032A was revoked before the date of the enactment of this Act, such election may be reinstated within 6 months after the date of the enactment of this Act.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num> <heading><inline class="smallCaps">Statute of limitations</inline>.—</heading><content>If on the date of the enactment of this Act (or at any time within 6 months after such date of enactment) the making of a credit or refund of any overpayment of tax resulting from the amendments described in subparagraph (A) is barred by any law or rule of law, such credit or refund shall nevertheless be made if claim therefor is made before the date 6 months after such date of enactment.</content></subparagraph> </paragraph> </subsection> </section> <section><num value="422">SEC. 422. </num> <heading>COORDINATION OF EXTENSIONS OF TIME FOR PAYMENT OF ESTATE TAX WHERE ESTATE CONSISTS LARGELY OF INTEREST IN CLOSELY HELD BUSINESS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Eligibility Requirements</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6166">26 USC 6166</ref>.</p></sidenote><inline class="smallCaps">In general</inline>.—</heading><content>Paragraph (1) of section 6166(a) (relating to alternate extension of time for payment of estate tax where estate consists largely of interest in closely held business) is amended by striking out “<quotedText>65 percent</quotedText>” and inserting in lieu thereof “<quotedText>35 percent</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Interests in 2 or more closely held businesses</inline>.—</heading><content>Subsection (c) of section 6166 (relating to interests in 2 or more closely held businesses) is amended by striking out “<quotedText>more than 20 percent</quotedText>” and inserting in lieu thereof “<quotedText>20 percent or more</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s303">26 USC 303</ref>.</p></sidenote><inline class="smallCaps">Coordination With Section 303</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subparagraph (A) of section 303(b)(2) (relating to relationship of stock to decedent’s estate) is amended by striking out “<quotedText>50 percent</quotedText>” and inserting in lieu thereof “<quotedText>35 percent</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Conforming amendment</inline>.—</heading><content>Subparagraph (B) of section 303(b)(2) is amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Special rule for stock in 2 or more corporations</inline>.—</heading><content>For purposes of subparagraph (A), stock of 2 or more corporations, with respect to each of which there is included in determining the value of the decedent’s gross estate 20 percent or more in value of the outstanding stock, shall be treated as the stock of a single corporation. For purposes of the 20-percent requirement of the preceding sentence, stock which, at the decedent’s death, represents the surviving spouse’s interest in property held by the decedent and the surviving spouse as community property or as joint tenants, tenants by the entirety, or tenants in common shall be treated as having been included in determining the value of the decedent’s gross estate.”</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <page identifier="/us/stat/95/315">95 STAT. 315</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Acceleration of Payment</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Amount of disposition</inline>.—</heading><content>Subparagraph (A) of section 6166(g)(1) (relating to acceleration of payment in the case of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6166">26 USC 6166</ref>.</p></sidenote> disposition of interest or withdrawal of funds from business) is amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><chapeau>If—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><subclause class="inline"><num value="I">(I) </num><content>any portion of an interest in a closely held business which qualifies under subsection (a)(1) is distributed, sold, exchanged, or otherwise disposed of, or</content> </subclause> <subclause class="indent3 firstIndent1 fontsize10"><num value="II">“(II) </num><content>money and other property attributable to such an interest is withdrawn from such trade or business, and</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the aggregate of such distributions, sales, exchanges, or other dispositions and withdrawals equals or exceeds 50 percent of the value of such interest,</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">then the extension of time for payment of tax provided in subsection (a) shall cease to apply, and the unpaid portion of the tax payable in installments shall be paid upon notice and demand from the Secretary.”</continuation> </subparagraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Failure to make payments</inline>.—</heading><content>Paragraph (3) of section 6166(g) (relating to failure to pay installments) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Failure to make payment of principal or interest</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in subparagraph (B), if any payment of principal or interest under this section is not paid on or before the date fixed for its payment by this section (including any extension of time), the unpaid portion of the tax payable in installments shall be paid upon notice and demand from the Secretary.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Payment within 6 months</inline>.—</heading><chapeau>If any payment of principal or interest under this section is not paid on or before the date determined under subparagraph (A) but is paid within 6 months of such date—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the provisions of subparagraph (A) shall not apply with respect to such payment,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the provisions of section 6601(j) shall not apply with respect to the determination of interest on such payment, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><chapeau>there is imposed a penalty in an amount equal to the product of—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>5 percent of the amount of such payment, multiplied by</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>the number of months (or fractions thereof) after such date and before payment is made.</content> </subclause> </clause> <continuation class="indent2 firstIndent0 fontsize10">The penalty imposed under clause (iii) shall be treated in the same manner as a penalty imposed under subchapter B of chapter 68.” <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6671">26 USC 6671</ref>.</p></sidenote></continuation> </subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">No disqualification in case of subsequent deaths</inline>.—</heading><content>Subparagraph (D) of section 6166(g)(1) is amended by adding at the end thereof the following new sentence: “A similar rule shall apply in the case of a series of subsequent transfers of the property by reason of death so long as each transfer is to a member of the family (within the meaning of section 267(c)(4)) of the transferor in such transfer.”</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Repeal of Section 6166A</inline>.—</heading><content>Section 6166A (relating to extension <sidenote><p class="indent0 firstIndent0 fontsize8">Repeal.</p> <p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6166A">26 USC 6166A</ref>.</p></sidenote> of time for payment of estate tax where estate consists largely of interest in a closely held business) is hereby repealed.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <heading><inline class="smallCaps">Technical Amendments</inline>.—<page identifier="/us/stat/95/316">95 STAT. 316</page></heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s303/2204/6161">26 USC 303, 2204, 6161</ref>.</p></sidenote> <content class="inline">Sections 303(b)(1)(C), 2204(c), and 6161(a)(2)(B) are each amended by striking out “<quotedText>or 6166A</quotedText>” each place it appears.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2011">26 USC 2011</ref>.</p></sidenote> <content class="inline">Paragraph (2) of section 2011(c) is amended by striking out “<quotedText>6161, 6166 or 6166A</quotedText>” and inserting in lieu thereof “<quotedText>6161 or 6166</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2204">26 USC 2204</ref>.</p></sidenote> <content class="inline">Subsections (a) and (b) of section 2204 are each amended by striking out “<quotedText>6166 or 6166A</quotedText>” and inserting in lieu thereof “<quotedText>or 6166</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2621">26 USC 2621</ref>.</p></sidenote> <chapeau class="inline">Subsection (b) of section 2621 is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>sections 6166 and 6166A (relating to extensions</quotedText>” and inserting in lieu thereof “<quotedText>section 6166 (relating to extension</quotedText>”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText><inline class="smallCaps">Sections 6166 and 6166A</inline></quotedText>” in the subsection heading and inserting in lieu thereof “<quotedText><inline class="smallCaps">Section 6166</inline></quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><subparagraph class="inline"><num value="A">(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6166">26 USC 6166</ref>.</p></sidenote> <content class="inline">Subsection (a) of section 6166 is amended by striking out paragraph (4).</content></subparagraph> <subparagraph class="indent1 firstIndent1 fontsize10"><num value="B">(B) </num><content>The section heading for section 6166 is amended by striking out “<quotedText><b>ALTERNATE</b></quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>The table of sections for subchapter B of chapter 62 is amended by striking out the items relating to sections 6166 and 6166A and inserting in lieu thereof the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 6166.</designator> <label>Extension of time for payment of estate tax where estate consists largely of interest in closely held business.”</label></referenceItem> </toc> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><subparagraph class="inline"><num value="A">(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6324A">26 USC 6324A</ref>.</p></sidenote> <content class="inline">Subsections (a), (c)(2), and (e) of section 6324A are each amended by striking out “<quotedText>or 6166A</quotedText>” each place it appears.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Paragraphs (3) and (5) of section 6324A(d) are each amended by striking out “<quotedText>or 6166A(h)</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>The section heading for section 6324A is amended by striking out “<quotedText><b>OR 6166A</b></quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>The table of sections for subchapter C of chapter 64 is amended by striking out “<quotedText>or 6166A</quotedText>” in the item relating to section 6324A.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6503">26 USC 6503</ref>.</p></sidenote> <content class="inline">Subsection (d) of section 6503 is amended by striking out “<quotedText>6163, 6166, or 6166A</quotedText>” and inserting in lieu thereof “<quotedText>6163 or 6166</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s7403">26 USC 7403</ref>.</p></sidenote> <content class="inline">Subsection (a) of section 7403 is amended by striking out “<quotedText>or 6166A(h)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6166">26 USC 6166 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), the amendments made by this section shall apply to the estates of decedents dying after December 31, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Acceleration by reason of subsequent death</inline>.—</heading><content>The amendment made by subsection (c)(3) shall apply to transfers after December 31, 1981.</content></paragraph> </subsection> </section> <section><num value="423">SEC. 423. </num> <heading>TREATMENT OF CERTAIN CONTRIBUTIONS OF WORKS OF ART, ETC.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2055">26 USC 2055</ref>.</p></sidenote><inline class="smallCaps">Estate Tax</inline>.—</heading><content>Subsection (e) of section 2055 (relating to disallowance of deduction in certain cases) is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Works of art and their copyrights treated as separate properties in certain cases</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of a qualified contribution of a work of art, the work of art and the cop5nright on such work of art shall be treated as separate properties for purposes of paragraph (2).</content></subparagraph> <page identifier="/us/stat/95/317">95 STAT. 317</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Work of art defined</inline>.—</heading><content>For purposes of this paragraph, the term ‘work of art’ means any tangible personal property with respect to which there is a copyright under Federal law.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Qualified contribution defined</inline>.—</heading><content>For purposes of this paragraph, the term ‘qualified contribution’ means any transfer of property to a qualified organization if the use of the property by the organization is related to the purpose or function constituting the basis for its exemption under section 501.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Qualified organization defined</inline>.—</heading><content>For purposes of this paragraph, the term ‘qualified organization’ means any organization described in section 501(c)(3) other than a private foundation (as defined in section 509). For purposes of the preceding sentence, a private operating foundation (as defined in section 4942(j)(3)) shall not be treated as a private <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 351.</p></sidenote> foundation.”</content></subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Gift tax</inline>.—</heading><content>Subsection (c) of section 2522 is amended by adding <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2522">26 USC 2522</ref>.</p></sidenote> at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Rules similar to the rules of section 2055(e)(4) shall apply <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 316.</p></sidenote> for purposes of paragraph (2).”</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Subsection (a)</inline>.—</heading><content>The amendment made by subsection (a) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2055">26 USC 2055 note</ref>.</p></sidenote> shall apply to the estates of decedents dying after December 31, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Subsection (b)</inline>.—</heading><content>The amendment made by subsection (b) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2522">26 USC 2522 note</ref>.</p></sidenote> shall apply to transfers after December 31, 1981.</content></paragraph> </subsection> </section> <section><num value="424">SEC. 424. </num> <heading>GIFTS MADE WITHIN 3 YEARS OF DECEDENT’S DEATH NOT INCLUDED IN GROSS ESTATE.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Section 2035 (relating to adjustments for gifts <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2035">26 USC 2035</ref>.</p></sidenote> made within 3 years of decedent’s death) is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Decedents Dying After 1981</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as otherwise provided in this subsection, subsection (a) shall not apply to the estate of a decedent dying after December 31, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Exceptions for certain transfers</inline>.—</heading><content>Paragraph (1) shall not apply to a transfer of an interest in property which is included in the value of the gross estate under section 2036, 2037, 2038, 2041, or 2042 or would have been included under any of such sections if such interest had been retained by the decedent.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">3-year rule retained for certain purposes</inline>.—</heading><chapeau>Paragraph (1) shall not apply for purposes of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>section 30303) (relating to distributions in redemption of stock to pay death taxes),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>section 2032A (relating to special valuation of certain farm, etc., real property),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>section 6166 (relating to extension of time for payment of estate tax where estate consists largely of interest in closely held business), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>subchapter C of chapter 64 (relating to lien for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6321">26 USC 6321</ref>.</p></sidenote> taxes).”</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2035">26 USC 2035 note</ref>.</p></sidenote> apply to the estates of decedents dying after December 31, 1981.</content> </subsection> </section> <page identifier="/us/stat/95/318">95 STAT. 318</page> <section><num value="425">SEC. 425. </num> <heading>BASIS OF CERTAIN APPRECIATED PROPERTY TRANSFERRED TO DECEDENT BY GIFT WITHIN 1 YEAR OF DEATH.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1014">26 USC 1014</ref>.</p></sidenote><inline class="smallCaps">General Rule</inline>.—</heading><content>Section 1014 (relating to basis of property acquired from a decedent) is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <heading><inline class="smallCaps">Appreciated Property Acquired by Decedent by Gift Within 1 Year of Death</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a decedent dying after December 31, 1981, if—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>appreciated property was acquired by the decedent by gift during the 1-year period ending on the date of the decedent’s death, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>such property is acquired from the decedent by (or passes from the decedent to) the donor of such property (or the spouse of such donor),</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">the basis of such property in the hands of such donor (or spouse) shall be the adjusted basis of such property in the hands of the decedent immediately before the death of the decedent.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>For purposes of paragraph (1)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">Appreciated property</inline>.—</heading><content>The term ‘appreciated property’ means any property if the fair market value of such property on the day it was transferred to the decedent by gift exceeds its adjusted basis.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Treatment of certain property sold by estate</inline>.—</heading><content>In the case of any appreciated property described in subparagraph (A) of paragraph (1) sold by the estate of the decedent or by a trust of which the decedent was the grantor, rules similar to the rules of paragraph (1) shall apply to the extent the donor of such property (or the spouse of such donor) is entitled to the proceeds from such sale.”</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1014">26 USC 1014 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to property acquired after the date of the enactment of this Act by decedents dying after December 31, 1981.</content> </subsection> </section> <section><num value="426">SEC. 426. </num> <heading>DISCLAIMERS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2518">26 USC 2518</ref>.</p></sidenote><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (c) of section 2518 (relating to disclaimers) is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Certain transfers treated as disclaimers</inline>.—</heading><chapeau>For purposes of subsection (a), a written transfer of the transferor’s entire interest in the property—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>which meets requirements similar to the requirements of paragraphs (2) and (3) of subsection (b), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>which is to a person or persons who would have received the property had the transferor made a qualified disclaimer (within the meaning of subsection (b)),</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">shall be treated as a qualified disclaimer.”</continuation> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2518">26 USC 2518 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to transfers creating an interest in the person disclaiming made after December 31, 1981.</content> </subsection> </section> <section><num value="427">SEC. 427. </num> <heading>REPEAL OF DEDUCTION FOR BEQUESTS, ETC., TO CERTAIN MINOR CHILDREN.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8">Repeal.</p> <p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2057">26 USC 2057</ref>.</p></sidenote><inline class="smallCaps">In General</inline>.—</heading><content>Section 2057 (relating to bequests, etc., to certain minor children) is hereby repealed.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for part IV of subchapter A of chapter 11 is amended by striking out the item relating to section 2057.</content> </subsection> <page identifier="/us/stat/95/319">95 STAT. 319</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2057">26 USC 2057 note</ref>.</p></sidenote> apply to estates of decedents dying after December 31, 1981.</content> </subsection> </section> <section><num value="428">SEC. 428. </num> <heading>POSTPONEMENT OF GENERATION-SKIPPING TAX EFFECTIVE DATE.</heading> <content>Section 2006(c) of the Tax Reform Act of 1976 (relating to the effective dates of generation-skipping provisions), as amended by section 702(n)(1) of the Revenue Act of 1978 is amended by striking <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2601">26 USC 2601 note</ref>.</p></sidenote> out “<quotedText>January 1, 1982</quotedText>” in paragraph (2)(B) of such section and inserting in lieu thereof “<quotedText>January 1, 1983</quotedText>”.</content> </section> <section><num value="429">SEC. 429. </num> <heading>CREDIT AGAINST ESTATE TAX FOR TRANSFER TO SMITHSONIAN.</heading> <chapeau>Upon transfer to the Smithsonian Institution, within thirty days following the date of the enactment of this Act, of all right, title, and interests held by the Dorothy Meserve Kunhardt trust and the estate of Dorothy Meserve Kunhardt in the collection of approximately seven thousand two hundred and fifty Mathew Brady glass plate negatives and the Alexander Gardner imperial portrait print of Abraham Lincoln, there shall be allowed as a credit, effective as of the date upon which the return was due to be filed, against the tax imposed by section 2001 (relating to the imposition of estate tax) on such estate an amount equal to the lesser of—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>such tax,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>the fair market value of such negatives and such print, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>$700,000.</content></paragraph> </section> </subtitle> <subtitle><num value="C">Subtitle C—</num><heading>Other Gift Tax Provisions</heading> <section><num value="441">SEC. 441. </num> <heading>INCREASE IN ANNUAL GIFT TAX EXCLUSION; UNLIMITED EXCLUSION FOR CERTAIN TRANSFERS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Increase in Annual Exclusion</inline>.—</heading><content>Subsection (b) of section 2503 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2503">26 USC 2503</ref>.</p></sidenote> (relating to annual gift tax exclusion) is amended by striking out “<quotedText>$3,000</quotedText>” and inserting in lieu thereof “<quotedText>$10,000</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Unlimited Exclusion for Certain Transfers</inline>.—</heading><content>Section 2503 (defining taxable gifts) is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <heading><inline class="smallCaps">Exclusion for Certain Transfers for Educational Expenses or Medical Expenses</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Any qualified transfer shall not be treated as a transfer of property by gift for purposes of this chapter.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Qualified transfer</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘qualified transfer’ means any amount paid on behalf of an individual—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>as tuition to an educational organization described in section 170(b)(1)(A)(ii) for the education or training of such individual, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>to any person who provides medical care (as defined in section 213(e)) with respect to such individual as payment for such medical care.”</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Effective Dates</inline>.—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2503">26 USC 2503 note</ref>.</p></sidenote></heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), the amendments made by this section shall apply to transfers after December 31, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Transitional rule</inline>.—</heading><chapeau>If—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>an instrument executed before the date which is 30 days after the date of the enactment of this Act provides for a <page identifier="/us/stat/95/320">95 STAT. 320</page> power of appointment which may be exercised during any period after December 31, 1981,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>such power of appointment is expressly defined in terms of, or by reference to, the amount of the gift tax exclusion under section 2503(b) of the Internal Revenue Code of 1954 (or the corresponding provision of prior law),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>the instrument described in subparagraph (A) has not been amended on or after the date which is 30 days after the date of the enactment of this Act, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>the State has not enacted a statute applicable to such gift under which such power of appointment is to be construed as being defined in terms of, or by reference to, the amount of the exclusion under such section 2503(b) after its amendment by subsection (a),</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">then the amendment made by subsection (a) shall not apply to such gift.</continuation> </paragraph> </subsection> </section> <section><num value="442">SEC. 442. </num> <heading>TIME FOR PAYMENT OF GIFT TAXES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Amendments to Subchapter A of Chapter 12</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2501">26 USC 2501</ref>.</p></sidenote><inline class="smallCaps">Section 2501</inline>.—</heading><content>Subsection (a) of section 2501 (relating to imposition of gift tax) is amended by striking out “<quotedText>calendar quarter</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>calendar year</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2502">26 USC 2502</ref>.</p></sidenote><inline class="smallCaps">Section 2502</inline>.—</heading><content>Section 2502 (relating to rate of tax) is amended to read as follows: <quotedContent> <section><num value="2502">“SEC. 2502. </num> <heading>RATE OF TAX.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Computation of Tax</inline>.—</heading><chapeau>The tax imposed by section 2501 for each calendar year shall be an amount equal to the excess of—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>a tentative tax, computed in accordance with the rate <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 300.</p></sidenote> schedule set forth in section 2001(c), on the aggregate sum of the taxable gifts for such calendar year and for each of the preceding calendar periods, over</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>a tentative tax, computed in accordance with such rate schedule, on the aggregate sum of the taxable gifts for each of the preceding calendar periods.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Preceding Calendar Period</inline>.—</heading><chapeau>Whenever used in this title in connection with the gift tax imposed by this chapter, the term ‘preceding calendar period’ means—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>calendar years 1932 and 1970 and all calendar years intervening between calendar year 1932 and calendar year 1970,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the first calendar quarter of calendar year 1971 and all calendar quarters intervening between such calendar quarter and the first calendar quarter of calendar year 1982, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>all calendar years after 1981 and before the calendar year for which the tax is being computed.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">For purposes of paragraph (1), the term ‘calendar year 1932’ includes only that portion of such year after June 6, 1932.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Tax To Be Paid by Donor</inline>.—</heading><content>The tax imposed by section 2501 shall be paid by the donor.”</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2503">26 USC 2503</ref>.</p></sidenote><inline class="smallCaps">Section 2503</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>Subsection (a) of section 2503 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">General Definition</inline>.—</heading><content>The term ‘taxable gifts’ means the total amount of gifts made during the calendar year, less the deductions provided in subchapter C (section 2522 and following).”</content> </subsection> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>The first sentence of subsection (b) of section 2503 is amended to read as follows: “In the case of gifts (other than <page identifier="/us/stat/95/321">95 STAT. 321</page> gifts of future interests in property) made to any person by the donor during the calendar year, the first $10,000 of such gifts to such person shall not, for purposes of subsection (a), be included in the total amount of gifts made during such year.”</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <heading><inline class="smallCaps">Section 2504</inline>.—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2504">26 USC 2504</ref>.</p></sidenote></heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>Subsection (a) of section 2504 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>In computing taxable gifts for preceding calendar periods for purposes of computing the tax for any calendar year—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>there shall be treated as gifts such transfers as were considered to be gifts under the gift tax laws applicable to the calendar period in which the transfers were made,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>there shall be allowed such deductions as were provided for under such laws, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>the specific exemption in the amount (if any) allowable under section 2521 (as in effect before its repeal by the Tax Reform Act of 1976) shall be applied in all computations in respect of preceding calendar periods ending before January 1, 1977, for purposes of computing the tax for any calendar year.”</content></paragraph> </subsection> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><chapeau>Subsection (b) of section 2504 is amended—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by striking out “<quotedText>preceding calendar years and calendar quarters</quotedText>” and inserting in lieu thereof “<quotedText>preceding calendar periods</quotedText>”,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by striking out “<quotedText>the years and calendar quarters</quotedText>” and inserting in lieu thereof “<quotedText>the periods</quotedText>”,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>by striking out “<quotedText>such years and calendar quarters</quotedText>” and inserting in lieu thereof “<quotedText>such preceding calendar periods</quotedText>”, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">(iv) </num><content>by striking out “<quotedText><inline class="smallCaps">Preceding Years and Quarters</inline></quotedText>” in the subsection heading and inserting in lieu thereof “<quotedText><inline class="smallCaps">Preceding Calendar Periods</inline></quotedText>”.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><chapeau>Subsection (c) of section 2504 is amended—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by striking out “<quotedText>preceding calendar year or calendar quarter</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>preceding calendar period</quotedText>”,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by striking out “<quotedText>under this chapter for any calendar quarter</quotedText>” and inserting in lieu thereof “<quotedText>under this chapter for any calendar year</quotedText>”,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>by striking out “<quotedText>section 2502(c)</quotedText>” and inserting in lieu thereof “<quotedText>section 2502(b)</quotedText>”, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">(iv) </num><content>by striking out “<quotedText><inline class="smallCaps">Preceding Calendar Years and Quarters</inline></quotedText>” in the subsection heading and inserting in lieu thereof “<quotedText><inline class="smallCaps">Preceding Calendar Periods</inline></quotedText>”.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>The section heading for section 2504 is amended by striking out “<quotedText><b>PRECEDING YEARS AND QUARTERS</b></quotedText>” and inserting in lieu thereof “<quotedText><b>PRECEDING CALENDAR PERIODS</b></quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>The table of sections for subchapter A of chapter 12 is amended by striking out “<quotedText>preceding years and quarters</quotedText>” in the item relating to section 2504 and inserting in lieu thereof “<quotedText>preceding calendar periods</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num> <heading><inline class="smallCaps">Section 2505</inline>.—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2505">26 USC 2505</ref>.</p></sidenote></heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><chapeau>Subsection (a) of section 2505 is amended—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by striking out “<quotedText>each calendar quarter</quotedText>” and inserting in lieu thereof “<quotedText>each calendar year</quotedText>”, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by striking out “<quotedText>preceding calendar quarters</quotedText>” and inserting in lieu thereof “<quotedText>preceding calendar periods</quotedText>”.</content> </clause> </subparagraph> <page identifier="/us/stat/95/322">95 STAT. 322</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Subsection (d) of section 2505 is amended by striking out “<quotedText>calendar quarter</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>calendar year</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Amendments to Subchapter B of Chapter 12</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2512">26 USC 2512</ref>.</p></sidenote><inline class="smallCaps">Section 2512</inline>.—</heading><content>Subsection (b) of section 2512 is amended by striking out “<quotedText>calendar quarter</quotedText>” and inserting in lieu thereof “<quotedText>calendar year</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2513">26 USC 2513</ref>.</p></sidenote><inline class="smallCaps">Section 2513</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>Section 2518(a) is amended by striking out “<quotedText>calendar quarter</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>calendar year</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Paragraph (2) of section 2513(b) is amended by striking out “<quotedText>calendar quarter</quotedText>” in the matter preceding subparagraph (A) and inserting in lieu thereof “<quotedText>calendar year</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>Subparagraph (A) of subsection (b)(2) of section 2513 is amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>The consent may not be signified after the 15th day of April following the close of such year, unless before such 15th day no return has been filed for such year by either spouse, in which case the consent may not be signified after a return for such year is filed by either spouse.”</content></subparagraph> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><chapeau>Subparagraph (B) of subsection (b)(2) of section 2513 is amended—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by striking out “<quotedText>the consent</quotedText>” and inserting in lieu thereof “<quotedText>The consent</quotedText>”, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by striking out “<quotedText>such calendar quarter</quotedText>” and inserting in lieu thereof “<quotedText>such year</quotedText>”.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><chapeau>Subsection (c) of section 2513 is amended—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by striking out “<quotedText>calendar quarter</quotedText>” and inserting in lieu thereof “<quotedText>calendar year</quotedText>”, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by striking out “<quotedText>15th day of the second month following the close of such quarter</quotedText>” and inserting in lieu “<quotedText>15th day of April following the close of such year</quotedText>”.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">(F) </num><chapeau>Subsection (d) of section 2513 is amended—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by striking out “<quotedText>any calendar quarter</quotedText>” and inserting in lieu thereof “<quotedText>any calendar year</quotedText>”, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by striking out “<quotedText>such calendar quarter</quotedText>” and inserting in lieu thereof “<quotedText>such year</quotedText>”.</content> </clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2522">26 USC 2522</ref>.</p></sidenote><inline class="smallCaps">Amendment to Subchapter C of Chapter 12</inline>.—</heading><content>Section 2522 is amended by striking out “<quotedText>quarter</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>year</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Miscellaneous Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1015">26 USC 1015</ref>.</p></sidenote> <chapeau class="inline">Paragraph (2) of subsection (d) of section 1015 (relating to increased basis for gift tax paid) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>calendar quarter (or calendar year if the gift was made before January 1, 1971)</quotedText>” and inserting in lieu thereof “<quotedText>calendar year (or preceding calendar period)</quotedText>”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>calendar quarter or year</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>calendar year or period</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6019">26 USC 6019</ref>.</p></sidenote> <content class="inline">Section 6019 (relating to gift tax returns) is amended by striking out subsection (b).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6075">26 USC 6075</ref>.</p></sidenote> <content class="inline">Subsection (b) of section 6075 (relating to time for filing gift tax returns) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Gift Tax Returns</inline>.—</heading> <page identifier="/us/stat/95/323">95 STAT. 323</page> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">General rule</inline>.—</heading><content>Returns made under section 6019 (relating to gift taxes) shall be filed on or before the 15th day of April following the close of the calendar year.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Extension where taxpayer granted extension for filing income tax return</inline>.—</heading><content>Any extension of time granted the taxpayer for filing the return of income taxes imposed by subtitle A for any taxable year which is a calendar year shall be deemed to be also an extension of time granted the taxpayer for filing the return under section 6019 for such calendar year.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Coordination with due date for estate tax return</inline>.—</heading><content>Notwithstanding paragraphs (1) and (2), the time for filing the return made under section 6019 for the calendar year which includes the date of death of the donor shall not be later than the time (including extensions) for filing the return made under section 6018 (relating to estate tax returns) with respect to such donor.”</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Paragraph (1) of section 6212(c) (relating to notice of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6212">26 USC 6212</ref>.</p></sidenote> deficiency) is amended by striking out “<quotedText>calendar quarter</quotedText>” and inserting in lieu thereof “<quotedText>calendar year</quotedText>”,</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2501">26 USC 2501 note</ref>.</p></sidenote> apply with respect to gifts made after December 31, 1981.</content> </subsection> </section> </subtitle> <num value="V">TITLE V—</num><heading>TAX STRADDLES</heading> <section><num value="501">SEC. 501. </num> <heading>POSTPONEMENT OF RECOGNITION OF LOSSES, ETC.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Part VII of subchapter O of chapter 1 (relating to wash sales of stock or securities) is amended by adding at the end thereof the following new section: <quotedContent> <section><num value="1092">“SEC. 1092. </num> <heading>STRADDLES. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1092">26 USC 1092</ref>.</p></sidenote></heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Recognition of Loss in Case of Straddles, Etc</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Limitation on recognition of loss</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Any loss with respect to 1 or more positions shall be taken into account for any taxable year only to the extent that the amount of such loss exceeds the unrealized gain (if any) with respect to 1 or more positions which—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>were acquired by the taxpayer before the disposition giving rise to such loss,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>were offsetting positions with respect to the 1 or more positions from which the loss arose, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>were not part of an identified straddle as of the close of the taxable year.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Carryover of loss</inline>.—</heading><content>Any loss which may not be taken into account under subparagraph (A) for any taxable year shall, subject to the limitations under subparagraph (A), be treated as sustained in the succeeding taxable year.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Special rule for identified straddles</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of any straddle which is an identified straddle as of the close of any taxable year—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>paragraph (1) shall not apply for such taxable year, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>any loss with respect to such straddle shall be treated as sustained not earlier than the day on which all of the positions making up the straddle are disposed of.</content> </clause> </subparagraph> <page identifier="/us/stat/95/324">95 STAT. 324</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Identified straddle</inline>.—</heading><chapeau>The term ‘identified straddle’ means any straddle—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>which is clearly identified on the taxpayer’s records, before the close of the day on which the straddle is acquired, as an identified straddle,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><chapeau>all of the original positions of which (as identified by the taxpayer) are acquired on the same day and with respect to which—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>all of such positions are disposed of on the same day during the taxable year, or</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>none of such positions has been disposed of as of the close of the taxable year, and</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>which is not part of a larger straddle.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Unrealized gain</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘unrealized gain’ means the amount of gain which would be taken into account with respect to any position held by the taxpayer as of the close of the taxable year if such position were sold on the last business day of such taxable year at its fair market value.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Reporting of gain</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Each taxpayer shall disclose to the Secretary, at such time and in such manner and form as the Secretary may prescribe by regulations—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>each position (whether or not part of a straddle) which is held by such taxpayer as of the close of the taxable year and with respect to which there is unrealized gain, and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>the amount of such unrealized gain.</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Reports not required in certain cases</inline>.—</heading><chapeau>Clause (i) shall not apply—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>to any position which is part of an identified straddle,</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>to any position which, with respect to the taxpayer, is property described in paragraph (1) or (2) of section 1221 or to any position which is part of <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 327.</p></sidenote> a hedging transaction (as defined in section 1256(e)), or</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="III">“(III) </num><content>with respect to any taxable year if no loss on a position (including a regulated futures contract) has been sustained during such taxable year or if the only loss sustained on such position is a loss described in subclause (II).</content> </subclause> </clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Character of Gain or Loss; Wash Sales</inline>.—</heading><content>Under regulations prescribed by the Secretary, in the case of gain or loss with respect to any position of a straddle, rules which are similar to the rules of subsections (a) and (d) of section 1091 and of subsections (b) and (d) of section 1233 and which are consistent with the purposes of this section shall apply.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Straddle Defined</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘straddle’ means offsetting positions with respect to personal property.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Offsetting positions</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>A taxpayer holds offsetting positions with respect to personal property if there is a substantial diminution of the taxpayer’s risk of loss from holding any position with respect to personal property by reason of his holding 1 or more other positions with respect to personal property (whether or not of the same kind).</content></subparagraph> <page identifier="/us/stat/95/325">95 STAT. 325</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">One side larger than other side</inline>.—</heading><content>If 1 or more positions offset only a portion of 1 or more other positions, the Secretary shall by regulations prescribe the method for determining the portion of such other positions which is to be taken into account for purposes of this section.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Special rule for identified straddles</inline>.—</heading><content>In the case of any position which is not part of an identified straddle (within the meaning of subsection (a)(3)(B)), such position shall not be treated as offsetting with respect to any position which is part of an identified straddle.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Presumption</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of paragraph (2), 2 or more positions shall be presumed to be offsetting if—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the positions are in the same personal property (whether established in such property or a contract for such property),</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the positions are in the same personal property, even though such property may be in a substantially altered form,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>the positions are in debt instruments of a similar maturity or other debt instruments described in regulations prescribed by the Secretary,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>the positions are sold or marketed as offsetting positions (whether or not such positions are called a straddle, spread, butterfly, or any similar name),</content> </clause> <clause class="firstIndent1 fontsize10"><num value="v">“(v) </num><content>the aggregate margin requirement for such positions is lower than the sum of the margin requirements for each such position (if held separately), or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="vi">“(vi) </num><content>there are such other factors (or satisfaction of subjective or objective tests) as the Secretary may by regulations prescribe as indicating that such positions are offsetting.</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">For purposes of the preceding sentence, 2 or more positions shall be treated as described in clause (i), (ii), (iii), or (vi) only if the value of 1 or more of such positions ordinarily varies inversely with the value of 1 or more other such positions.</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Presumption may be rebutted</inline>.—</heading><content>Any presumption established pursuant to subparagraph (A) may be rebutted.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Definitions and Special Rules</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Personal property</inline>.—</heading><content>The term ‘personal property’ means any personal property (other than stock) of a type which is actively traded.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Position</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘position’ means an interest (including a futures or forward contract or option) in personal property.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Special rule for stock options</inline>.—</heading><chapeau>The term ‘position’ includes any stock option which is a part of a straddle and which is an option to buy or sell stock which is actively traded, but does not include a stock option which—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>is traded on a domestic exchange or on a similar foreign exchange designated by the Secretary, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>is of a type with respect to which the maximum period during which such option may be exercised is less than the minimum period for which a capital asset must be held for gain to be treated as long-term capital gain under section 1222(3).</content> </clause> </subparagraph> </paragraph> <page identifier="/us/stat/95/326">95 STAT. 326</page> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Positions held by related persons, etc</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In determining whether 2 or more positions are offsetting, the taxpayer shall be treated as holding any position held by a related person.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Related person</inline>.—</heading><chapeau>For purposes of subparagraph (A), a person is a related person to the taxpayer if with respect to any period during which a position is held by such person, such person—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>is the spouse of the taxpayer, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>files a consolidated return (within the meaning of section 1501) with the taxpayer for any taxable year which includes a portion of such period.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Certain flowthrough entities</inline>.—</heading><content>If part or all of the gain or loss with respect to a position held by a partnership, trust, or other entity would properly be taken into account for purposes of this chapter Dy a taxpayer, then, except to the extent otherwise provided in regulations, such position shall be treated as held by the taxpayer.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Special Rule For Regulated Futures Contracts</inline>.—</heading><chapeau>In the case of a straddle—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>at least 1 (but not all) of the positions of which are regulated futures contracts, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>with respect to which the taxpayer has elected not to <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 327.</p></sidenote> have the provisions of section 1256 apply,</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">the provisions of this section shall apply to any regulated futures contract and any other position making up such straddle.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Regulated futures contract</inline>.—</heading><content>The term ‘regulated futures contract’ has the same meaning given such term by section 1256(b).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <heading><inline class="smallCaps">Exception for Hedging Transactions</inline>.—</heading><content>This section shall not apply in the case of any hedging transaction (as defined in section 1256(e)).</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <heading><inline class="smallCaps">Cross Reference</inline>.—</heading><content class="indentUp1 fontsize10"> “<b>For provision requiring capitalization of certain interest and carrying charges where there is a straddle, see section 263(g)</b>.”</content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6653">26 USC 6653</ref>.</p></sidenote><inline class="smallCaps">Penalty for Failure To Disclose</inline>.—</heading><content>Section 6653 (relating to failure to pay tax) is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="g">“(g) </num> <heading><inline class="smallCaps">Special Rule in Cases of Failure To Report Unrealized Gain on Position in Personal Property</inline>.—</heading><chapeau>If—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>a taxpayer fails to make the report required under section <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 323.</p></sidenote> 1092(a)(3)(B) in the manner prescribed by such section and such failure is not due to reasonable cause, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>such taxpayer has an underpayment of any tax attributable (in whole or in part) to the denial of a deduction of a loss with respect to any position (within the meaning of section 1092(d)(2)),</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">then such underpayment shall, for purposes of subsection (a), be treated as an underpayment due to negligence or intentional disregard of rules and regulations (but without intent to defraud).”</continuation> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1233">26 USC 1233</ref>.</p></sidenote><inline class="smallCaps">Application With Section 1233</inline>.—</heading><content>Paragraph (2) of section 1233(e) (defining property to which section applies) is amended by inserting “<quotedText>, but does not include any position to which section 1092(b) applies</quotedText>” after “<quotedText>taxpayer</quotedText>” in subparagraph (A).</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>The table of sections for such part VII is amended by adding at the end thereof the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 1092.</designator> <label>Straddles.”</label></referenceItem> </toc> </quotedContent> </content></paragraph> <page identifier="/us/stat/95/327">95 STAT. 327</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The heading for such part VII is amended to read as follows: <quotedContent> <part><num value="VII">“PART VII—</num><heading>WASH SALES; STRADDLES”.</heading> </part> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The table of parts for subchapter O of chapter 1 is amended by striking out the item relating to part VII and inserting in lieu thereof the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Part VII.</designator> <label>Wash sales; straddles.”</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> </section> <section><num value="502">SEC. 502. </num> <heading>CAPITALIZATION OF CERTAIN INTEREST AND CARRYING CHARGES IN THE CASE OF STRADDLES.</heading> <content>Section 263 (relating to capital expenditures) is amended by adding <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s263">26 USC 263</ref>.</p></sidenote> at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="g">“(g) </num> <heading><inline class="smallCaps">Certain Interest and Carrying Costs in the Case of Straddles</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">General rule</inline>.—</heading><content>No deduction shall be allowed for interest and carrying charges properly allocable to personal property which is part of a straddle (as defined in section 1092(c)). Any <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 323.</p></sidenote> amount not allowed as a deduction by reason of the preceding sentence shall be chargeable to the capital account with respect to the personal property to which such amount relates.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Interest and carrying charges defined</inline>.—</heading><chapeau>For purposes of paragraph (1), the term ‘interest and carrying charges’ means the excess of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><chapeau>the sum of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>interest on indebtedness incurred or continued to purchase or carry the personal property, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>amounts paid or incurred to insure, store, or transport the personal property, over</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>the sum of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the amount of interest (including original issue discount) includible in gross income for the taxable year with respect to the property described in subparagraph (A), and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>any amount treated as ordinary income under section 1232(a)(4)(A) with respect to such property for <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 331.</p></sidenote> the taxable year.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Exception for hedging transactions</inline>.—</heading><content>This subsection shall not apply in the case of any hedging transaction (as defined in section 1256(e)).”</content></paragraph> </subsection> </quotedContent> </content> </section> <section><num value="503">SEC. 503. </num> <heading>REGULATED FUTURES CONTRACTS MARKED TO MARKET.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Part IV of subchapter P of chapter 1 (relating to special rules for determining capital gains and losses) is amended by adding at the end thereof the following new section: <quotedContent> <section><num value="1256">“SEC. 1256. </num> <heading>REGULATED FUTURES CONTRACTS MARKED TO MARKET. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1256">26 USC 1256</ref>.</p></sidenote></heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><chapeau>For purposes of this subtitle—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>each regulated futures contract held by the taxpayer at the close of the taxable year shall be treated as sold for its fair market value on the last business day of such taxable year (and any gain or loss shall be taken into account for the taxable year),</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>proper adjustment shall be made in the amount of any gain or loss subsequently realized for gain or loss taken into account by reason of paragraph (1),</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>any gain or loss with respect to a regulated futures contract shall be treated as—</chapeau> <page identifier="/us/stat/95/328">95 STAT. 328</page> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>short-term capital gain or loss, to the extent of 40 percent of such gain or loss, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>long-term capital gain or loss, to the extent of 60 percent of such gain or loss, and</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>if all the offsetting positions making up any straddle consist of regulated futures contracts to which this section applies (and such straddle is not part of a larger straddle). <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, pp. 323, 327.</p></sidenote> sections 1092 and 263(g) shall not apply with respect to such straddle.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Regulated Futures Contracts Defined</inline>.—</heading><chapeau>For purposes of this section, the term ‘regulated futures contract’ means a contract—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>which requires delivery of personal property (as defined in section 1092(d)(1)) or an interest in such property;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>with respect to which the amount required to be deposited and the amount which may be withdrawn depends on a system of marking to market; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>which is traded on or subject to the rules of a domestic board of trade designated as a contract market by the Commodity Futures Trading Commission or of any board of trade or exchange which the Secretary determines has rules adequate to carry out the purposes of this section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Terminations</inline>.—</heading><content>The rules of paragraphs (1), (2), and (3) of subsection (a) shall also apply to the termination during the taxable year of the taxpayer’s obligation with respect to a regulated futures contract by offsetting, by taking or making delivery, or otherwise. For purposes of the preceding sentence, fair market value at the time of the termination shall be taken into account.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Elections With Respect to Mixed Straddles</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Election</inline>.—</heading><content>The taxpayer may elect to have this section not to apply to all regulated futures contracts which are part of a mixed straddle.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Time and manner</inline>.—</heading><content>An election under paragraph (1) shall be made at such time and in such manner as the Secretary may by regulations prescribe.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Election revocable only with consent</inline>.—</heading><content>An election under paragraph (1) shall apply to the taxpayer’s taxable year for which made and to all subsequent taxable years, unless the Secretary consents to a revocation of such election.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Mixed straddle</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘mixed straddle’ means any straddle (as defined in section 1092(c))—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>at least 1 (but not all) of the positions of which are regulated futures contracts, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>with respect to which each position forming part of such straddle is clearly identified, before the close of the day on which such position is acquired, as being part of such straddle.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <heading><inline class="smallCaps">Mark to Market Not To Apply to Hedging Transactions</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Section not to apply</inline>.—</heading><content>Subsection (a) shall not apply in the case of a hedging transaction.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Definition of hedging transaction</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘hedging transaction’ means any transaction if—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><chapeau>such transaction is entered into by the taxpayer in the normal course of the taxpayer’s trade or business primarily—</chapeau> <page identifier="/us/stat/95/329">95 STAT. 329</page> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>to reduce risk of price change or currency fluctuations with respect to property which is held or to be held by the taxpayer, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>to reduce risk of interest rate or price changes or currency fluctuations with respect to borrowings made or to be made, or obligations incurred or to be incurred, by the taxpayer,</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the gain or loss on such transactions is treated as ordinary income or loss, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>before the close of the day on which such transaction was entered into, the taxpayer clearly identifies such transaction as being a hedging transaction.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Special rule for syndicates</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Notwithstanding paragraph (2), the term ‘hedging transaction’ shall not include any transaction entered into by or for a syndicate.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Syndicate defined</inline>.—</heading><content>For purposes of subparagraph (A), the term ‘syndicate’ means any partnership or other entity (other than a corporation which is not an electing small business corporation within the meaning of section 1371(b)) if more than 35 percent of the losses of such entity during the taxable year are allocable to limited partners or limited entrepreneurs (within the meaning of section 464(e)(2)).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Holdings attributable to active management</inline>.—</heading><chapeau>For purposes of subparagraph (B), an interest in an entity shall not be treated as held by a limited partner or a limited entrepreneur (within the meaning of section 464(e)(2))—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>for any period if during such period such interest is held by an individual who actively participates at all times during such period in the management of such entity,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>for any period if during such period such interest is held by the spouse, children, grandchildren, and parents of an individual who actively participates at all times during such period in the management of such entity,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>if such interest is held by an individual who actively participated in the management of such entity for a period of not less than 5 years,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>if such interest is held by the estate of an individual who actively participated in the management of such entity or is held by the estate of an individual if with respect to such individual such interest was at any time described in clause (ii), or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="v">“(v) </num><content>if the Secretary determines that such interest should be treated as held by an individual who actively participates in the management of such entity, and that such entity and such interest are not used (or to be used) for tax-avoidance purposes.</content> </clause> <continuation class="indent2 firstIndent0 fontsize10">For purposes of this subparagraph, a legally adopted child of an individual shall be treated as a child of such individual by blood.</continuation> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Special rule for banks</inline>.—</heading><content>In the case of a bank (as defined in section 581), subparagraph (A) of paragraph (2) shall be applied without regard to clause (i) or (ii) thereof.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <heading><inline class="smallCaps">Special Rules</inline>.—</heading> <page identifier="/us/stat/95/330">95 STAT. 330</page> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Denial of capital gains treatment for property identified as part of a hedging transaction</inline>.—</heading><content>For purposes of this title, gain from any property shall in no event be considered as gain from the sale or exchange of a capital asset if such property was at any time personal property (as defined in section <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 323.</p></sidenote> 1092(d)(1)) identified under subsection (e)(2)(C) by the taxpayer as being part of a hedging transaction.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Subsection (a)(3) not to apply to ordinary income property</inline>.—</heading><content>Paragraph (3) of subsection (a) shall not apply to any gain or loss which, but for such paragraph, would be ordinary income or loss.”</content></paragraph> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for part IV of subchapter P of chapter 1 is amended by adding at the end thereof the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 1256.</designator> <label>Regulated futures contracts marked to market.”.</label></referenceItem> </toc> </quotedContent> </content> </subsection> </section> <section><num value="504">SEC. 504. </num> <heading>CARRYBACK OF LOSSES FROM REGULATED FUTURES CONTRACTS TO OFFSET PRIOR GAINS FROM SUCH CONTRACTS.</heading> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1212">26 USC 1212</ref>.</p></sidenote> <content>Section 1212 (relating to capital loss carrybacks and carryovers) is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Carryback of Losses From Regulated Futures Contracts To Offset Prior Gains From Such Contracts</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If a taxpayer (other than a corporation) has a net commodity futures loss for the taxable year and elects to have this subsection apply to such taxable year, the amount of such net commodity futures loss—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>shall be a carryback to each of the 3 taxable years preceding the loss year, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>to the extent that, after the application of paragraphs (2) and (3), such loss is allowed as a carryback to any such preceding taxable year—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>40 percent of the amount so allowed shall be treated as a short-term capital loss from regulated futures contracts, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>60 percent of the amount so allowed shall be treated as a long-term capital loss from regulated futures contracts.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Amount carried to each taxable year</inline>.—</heading><content>The entire amount of the net commodity futures loss for any taxable year shall be carried to the earliest of the taxable years to which such loss may be carried back under paragraph (1). The portion of such loss which shall be carried to each of the 2 other taxable years to which such loss may be carried back shall be the excess (if any) of such loss over the portion of such loss which, after the application of paragraph (3), was allowed as a carryback for any prior taxable year.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Amount which may be used in any prior taxable year</inline>.—</heading><chapeau>An amount shall be allowed as a carryback under paragraph (1) to any prior taxable year only to the extent—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>such amount does not exceed the net commodity futures gain for such year, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the allowance of such carryback does not increase or produce a net operating loss (as defined in section 172(c)) for such year.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Net commodity futures loss</inline>.—</heading><chapeau>For purposes of paragraph (1), the term ‘net commodity futures loss’ means the lesser of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the net capital loss for the taxable year determined by taking into account only gains and losses from regulated <page identifier="/us/stat/95/331">95 STAT. 331</page> futures contracts and positions to which section 1256 applies, <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 327.</p></sidenote> or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the sum of the amounts which, but for paragraph (6)(A), would be treated as capital losses in the succeeding taxable year under subparagraphs (A) and (B) of subsection (b)(1).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Net commodity futures gain</inline>.—</heading><chapeau>For purposes of paragraph (1)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The term ‘net commodity futures gain’ means the lesser of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the capital gain net income for the taxable year determined by taking into account only gains and losses from regulated futures contracts, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the capital gain net income for the taxable year.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><content>The net commodity futures gain for any taxable year before the loss year shall be computed without regard to the net commodity futures loss for the loss year or for any taxable year thereafter.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num> <heading><inline class="smallCaps">Coordination with carryforward provisions of subsection (b)(1)</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">Carryforward amount reduced by amount used as carryback</inline>.—</heading><chapeau>For purposes of applying subsection (b)(1), if any portion of the net commodity futures loss for any taxable year is allowed as a carryback under paragraph (1) to any preceding taxable year—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>40 percent of the amount allowed as a carryback shall be treated as a short-term capital gain for the loss year, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>60 percent of the amount allowed as a carryback shall be treated as a long-term capital gain for the loss year.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Carryover loss retains character as attributable to regulated futures contract</inline>.—</heading><content>Any amount carried forward as a short-term or long-term capital loss to any taxable year under subsection (b)(1) (after the application of subparagraph (A)) shall, to the extent attributable to losses from regulated futures contracts, be treated as loss from regulated futures contracts for such taxable year.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num> <heading><inline class="smallCaps">Other definitions and special rules</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">Regulated futures contract</inline>.—</heading><content>The term ‘regulated futures contract’ means any regulated futures contract (as defined in section 1256(b)) to which section 1256 applies.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Exclusion for estates and trusts</inline>.—</heading><content>This subsection shall not apply to any estate or trust.”</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </section> <section><num value="505">SEC. 505. </num> <heading>CERTAIN GOVERNMENTAL OBLIGATIONS ISSUED AT DISCOUNT TREATED AS CAPITAL ASSETS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Section 1221 (defining capital asset) is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1221">26 USC 1221</ref>.</p></sidenote> amended by striking out paragraph (5) and by redesignating paragraph (6) as paragraph (5).</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Treatment of Amounts Received on Sale or Other Disposition</inline>.—</heading><content>Subsection (a) of section 1282 (relating to bonds and other <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1232">26 USC 1232</ref>.</p></sidenote> evidences of indebtedness) is amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Certain short-term government obligations</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>On the sale or exchange of any short-term Government obligation, any gain realized which does <page identifier="/us/stat/95/332">95 STAT. 332</page> not exceed an amount equal to the ratable share of the acquisition discount shall be treated as ordinary income. Gain in excess of such amount shall be considered gain from the sale or exchange of a capital asset held less than 1 year.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Short-term government obligation</inline>.—</heading><content>For purposes of this paragraph, the term ‘short-term Government obligation’ means any obligation of the United States or any of its possessions, or of a State or any political subdivision thereof, or of the District of Columbia which is issued on a discount basis and payable without interest at a fixed maturity date not exceeding 1 year from the date of issue. Such term does not include any obligation the interest on which is not includible in gross income under section 103 (relating to certain governmental obligations).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Acquisition discount</inline>.—</heading><content>For purposes of this paragraph, the term ‘acquisition discount’ means the excess of the stated redemption price at maturity over the taxpayer’s basis for the obligation.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Ratable share</inline>.—</heading><chapeau>For purposes of this paragraph, the ratable share of the acquisition discount is an amount which bears the same ratio to such discount as—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the number of days which the taxpayer held the obligation, bears to</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the number of days after the date the taxpayer acquired the obligation and up to (and including) the date of its maturity.”</content> </clause> </subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Technical Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1231">26 USC 1231</ref>.</p></sidenote> <content class="inline">Subparagraph (D) of section 1231(b)(1) is amended by striking out “<quotedText>paragraph (6)</quotedText>” and inserting in lieu thereof “<quotedText>paragraph (5)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s341">26 USC 341</ref>.</p></sidenote> <content class="inline">Subparagraph (B) of section 341(c)(2) is amended by striking out “<quotedText>(and governmental obligations described in section 1221(5))</quotedText>”.</content></paragraph> </subsection> </section> <section><num value="506">SEC. 506. </num> <heading>PROMPT IDENTIFICATION OF SECURITIES BY DEALERS IN SECURITIES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1236">26 USC 1236</ref>.</p></sidenote><inline class="smallCaps">In General</inline>.—</heading><chapeau>Subsection (a) of section 1236 (relating to dealers in securities) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>before the expiration of the 30th day after the date of its acquisition</quotedText>” and inserting in lieu thereof “<quotedText>before the close of the day on which it was acquired (before the close of the following day in the case of an acquisition before January 1, 1982)</quotedText>”, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>expiration of such 30th day</quotedText>” and inserting in lieu thereof “<quotedText>close of such day</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Special Rule for Floor Specialists</inline>.—</heading><content>Section 1236 (relating to dealers in securities) is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Special Rule for Floor Specialists</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a floor specialist (but only with respect to acquisitions, in connection with his duties on an exchange, of stock in which the specialist is registered with the exchange), subsection (a) shall be applied—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>by inserting ‘the 7th business day following’ before the day the first place it appears in paragraph (1) and by inserting ‘7th business’ before ‘day’ in paragraph (2), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>by striking the parenthetical phrase in paragraph (1).</content></subparagraph> </paragraph> <page identifier="/us/stat/95/333">95 STAT. 333</page> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Floor specialist</inline>.—</heading><chapeau>The term ‘floor specialist’ means a person who is—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>a member of a national securities exchange,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>is registered as a specialist with the exchange, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>meets the requirements for specialists established by the Securities and Exchange Commission.”</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </subsection> </section> <section><num value="507">SEC. 507. </num> <heading>TREATMENT OF GAIN OR LOSS FROM CERTAIN TERMINATIONS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Part IV of subchapter P of chapter 1 (relating to special rules for determining capital gains and losses) is amended by inserting after section 1234 the following new section: <quotedContent> <section><num value="1234A">“SEC. 1234A. </num> <heading>GAINS OR LOSSES FROM CERTAIN TERMINATIONS. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1234A">26 USC 1234A</ref>.</p></sidenote></heading> <content>“Gain or loss attributable to the cancellation, lapse, expiration, or other termination of a right or obligation with respect to personal property (as defined in section 1092(d)(1)) which is (or on acquisition <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 323.</p></sidenote> would be) a capital asset in the hands of the taxpayer shall be treated as gain or loss from the sale of a capital asset.”</content> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for part IV of subchapter P of chapter 1 is amended by inserting after the item relating to section 1234 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 1234A.</designator> <label>Gains or losses from certain terminations.”</label></referenceItem> </toc> </quotedContent> </content> </subsection> </section> <section><num value="508">SEC. 508. </num> <heading>EFFECTIVE DATES. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1092">26 USC 1092 note</ref>.</p></sidenote></heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Except as otherwise provided in this section, the amendments made by this title shall apply to property acquired and positions established by the taxpayer after June 23, 1981, in taxable years ending after such date.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Identification Requirements</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Under section 1236 of code</inline>.—</heading><content>The amendments made by section 506 shall apply to property acquired by the taxpayer after the date of the enactment of this Act in taxable years ending after such date.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Under section 1256(e)(2)(c) of code</inline>.—</heading><content>Section 1256(e)(2)(C) of <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 327.</p></sidenote> the Internal Revenue Code of 1954 (as added by this title) shall apply to property acquired and positions established by the taxpayer after December 31, 1981, in taxable years ending after such date.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Election With Respect to Property Held on June 23, 1981</inline>.—</heading><content>If the taxpayer so elects (at such time and in such manner as the Secretary of the Treasury or his delegate shall prescribe) with respect to all regulated futures contracts or positions held by the taxpayer on June 23, 1981, the amendments made by this title shall apply to all such contracts and positions, effective for periods after such date in taxable years ending after such date. For purposes of the preceding sentence, the term “regulated futures contract” has the meaning given to such term by section 1256(b) of the Internal Revenue Code of 1954, and the term “position” has the meaning given to such term by section 1092(d)(2) of such Code.</content> </subsection> </section> <section><num value="509">SEC. 509. </num> <heading>ELECTION FOR EXTENSION OF TIME FOR PAYMENT AND APPLICATION OF SECTION 1256 FOR THE TAXABLE YEAR INCLUDING JUNE 23, 1981.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Election</inline>.—<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1256">26 USC 1256 note</ref>.</p></sidenote></heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>In the case of any taxable year beginning before June 23, 1981, and ending after June 22, 1981, the taxpayer may elect, in lieu of any election under section 508(c), to <page identifier="/us/stat/95/334">95 STAT. 334</page> have this section apply to all regulated futures contracts held during such taxable year.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p 327.</p></sidenote><inline class="smallCaps">Application of section 1256</inline>.—</heading><chapeau>If a taxpayer elects to have the provisions of this section apply to the taxable year described in paragraph (1).—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the provisions of section 1256 of the Internal Revenue Code of 1954 (other than section 1256(e)(2)(C)) shall apply to regulated futures contracts held by the taxpayer at any time during such taxable year, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for purposes of determining the rate of tax applicable to gains and losses from regulated futures contracts held at any time during such year, such gains and losses shall be treated as gain or loss from a sale or exchange occurring in a taxable year beginning in 1982.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">Determination of deferred tax liability</inline>.—</heading><chapeau>If the taxpayer makes an election under this subsection.—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the taxpayer may pay part or all of the tax for such year in two or more (but not exceeding five) equal installments;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><chapeau>the maximum amount of tax which may be paid in installments under this section shall be the excess of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>the tax for such year, determined by taking into account paragraph (2), over</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>the tax for such year, determined by taking into account paragraph (2) and by treating all regulated futures contracts which were held by the taxpayer on the first day of the taxable year described in paragraph (1), and which were acquired before the first day of such taxable year, as having been acquired for a purchase price equal to their fair market value on the last business day of the preceding taxable year.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <heading><inline class="smallCaps">Date for payment of installment</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>If an election is made under this subsection, the first installment under subsection (a)(3)(A) shall be paid on or before the due date for filing the return for the taxable year described in paragraph (1), and each succeeding installment shall be paid on or before the date which is one year after the date prescribed for payment of the preceding installment.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>If a bankruptcy case or insolvency proceeding involving the taxpayer is commenced before the final installment is paid, the total amount of any unpaid installments shall be treated as due and payable on the day preceding the day on which such case or proceeding is commenced.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num> <heading><inline class="smallCaps">Interest imposed</inline>.—</heading><content>For purposes of section 6601 of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6601">26 USC 6601</ref>.</p></sidenote> Internal Revenue Code of 1954, the time for payment of any tax with respect to which an election is made under this subsection shall be determined without regard to this subsection.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Form of Election</inline>.—</heading><chapeau>An election under this section shall be made not later than the time for filing the return for the taxable year described in subsection (a)(1) and shall be made in the manner and form required by regulations prescribed by the Secretary. The election shall set forth—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the amount determined under subsection (a)(3)(B) and the number of installments elected by the taxpayer,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>each regulated futures contract held by the taxpayer on the first day of the taxable year described in subsection (a)(1), and the date such contract was acquired,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>the fair market value on the last business day of such taxable year for each regulated futures contract described in subparagraph (B), and</content></paragraph> <page identifier="/us/stat/95/335">95 STAT. 335</page> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>such other information for purposes of carrying out the provisions of this section as may be required by such regulations.</content></paragraph> </subsection> </section> <num value="VI">TITLE VI—</num><heading>ENERGY PROVISIONS</heading> <subtitle><num value="A">Subtitle A—</num><heading>Changes in Windfall Profit Tax</heading> <section><num value="601">SEC. 601. </num> <heading>$2,500 ROYALTY CREDIT FOR 1981; EXEMPTION FOR 1982 AND THEREAFTER.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">$2,500 Royalty Credit for 1981</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (a) of section 6429 (relating to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6429">26 USC 6429</ref>.</p></sidenote> treatment as overpayment) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Treatment as overpayment</inline>.—</heading><content>In the case of a qualified royalty owner, that portion of the tax imposed by section 4986 which is paid in connection with qualified royalty production removed from the premises during calendar year 1981 shall be treated as an overpayment of the tax imposed by section 4986.”</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Increase in amount of credit</inline>.—</heading><content>Paragraph (1) of section 6429(c) (relating to $1,000 limitation on credit or refund) is amended to read as follows: <quotedContent><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The aggregate amount which may be treated as an overpayment under subsection (a) with respect to any qualified royalty owner for production removed from the premises during calendar year 1981 shall not exceed $2,500.”</content> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading><chapeau>Subsection (c) of section 6429 is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>$1,000</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>$2,500</quotedText>”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>qualified period</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>calendar year</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <heading><inline class="smallCaps">Definition of qualified royalty production</inline>.—</heading><content>Subsection (d) of section 6429 is amended by striking out paragraphs (2) and (3) and inserting in lieu thereof the following new paragraphs: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Qualified royalty production</inline>.—</heading><chapeau>The term ‘qualified royalty production’ means, with respect to any qualified royalty owner, taxable crude oil which is attributable to an economic interest of such royalty owner other than an operating mineral interest (within the meaning of section 614(d)). Such term does not include taxable crude oil attributable to any overriding royalty interest, production payment, net profits interest, or similar interest of the qualified royalty owner which—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>is created after June 9, 1981, out of an operating mineral interest in property which is proven oil or gas property (within the meaning of section 613A(c)(9)(A)) on the date such interest is created, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>is not created pursuant to a binding contract entered into prior to June 10, 1981.</content></subparagraph> </paragraph> <paragraph class="indent0 firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Production from transferred property</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>In the case of a transfer of an interest in any property, the qualified royalty production of the transferee shall not include any production attributable to <page identifier="/us/stat/95/336">95 STAT. 336</page> an interest that has been transferred after June 9, 1981, in a transfer which—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>is described in section 613A(c)(9)(A), and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>is not described in section 613A(c)(9)(B).</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Exceptions</inline>.—</heading><content>Subparagraph (A) shall not apply in the case of any transfer so long as the transferor and the transferee are required by paragraph (3) or (4) of subsection (c) to share the $2,500 amount in subsection (c)(1). The preceding sentence shall apply to the case of any property only if the production from the property was qualified royalty production of the transferor.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Transfers include subleases</inline>.—</heading><content>For purposes of this paragraph, a sublease shall be treated as a transfer.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Estates</inline>.—</heading><content>For purposes of this paragraph, property held by any estate shall be treated as owned both by such estate and proportionately by the beneficiaries of such estate.”</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num> <heading><inline class="smallCaps">Qualified family farm corporation defined</inline>.—</heading><content>Paragraph <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6429">26 USC 6429</ref>.</p></sidenote> (4) of section 6429(d) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Qualified family farm corporation</inline>.—</heading><chapeau>The term ‘qualified family farm corporation’ means a corporation—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>all the outstanding shares of stock of which at all times during the calendar year are held by members of the <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 312.</p></sidenote> same family (within the meaning of section 2032A(e)(2)), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>80 percent in value of the assets of which (other than royalty interests described in paragraph (2)(A)) are held by the corporation at all times during such calendar year for use for farming purposes (within the meaning of section 2032A(e)(5)).”</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num> <heading><inline class="smallCaps">Conforming amendments</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6654">26 USC 6654</ref>.</p></sidenote> <content class="inline">Paragraph (3) of section 6654(f) (relating to failure by individuals to pay estimated income tax) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>the sum of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the credits against tax allowed by part IV of subchapter A of chapter 1, other than the credit against tax provided by section 31 (relating to tax withheld on wages), plus</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>to the extent allowed under regulations prescribed by the Secretary, any amount which is treated under section 6429 as an overpayment of the tax imposed by section 4986.”</content></subparagraph> </paragraph> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6655">26 USC 6655</ref>.</p></sidenote> <content class="inline">Paragraph (2) of section 6655(e) (relating to failure by corporation to pay estimated income tax) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>the sum of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the credits against tax provided by part IV of subchapter <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s31">26 USC 31</ref>.</p></sidenote> A of chapter 1, plus</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>to the extent allowed under regulations prescribed by the Secretary, any amount which is treated under section 6429 as an overpayment of the tax imposed by section 4986.”</content></subparagraph> </paragraph> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Exemption for 1982 and Thereafter</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/235">94 Stat. 235</ref>.</p></sidenote><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (b) of section 4991 is amended by striking out “<quotedText>and</quotedText>” at the end of paragraph (3), by striking out the period at the end of paragraph (4), and inserting in lieu thereof “<quotedText>, and</quotedText>”, and by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>exempt royalty oil.”</content></paragraph> </quotedContent> </content></paragraph> <page identifier="/us/stat/95/337">95 STAT. 337</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Exempt royalty oil</inline>.—</heading><content>Section 4994 is amended by adding <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/241">94 Stat. 241</ref>.</p></sidenote> at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <heading><inline class="smallCaps">Exempt Royalty Oil</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of this chapter, the term ‘exempt royalty oil’ means that portion of the qualified royalty owner s qualified royalty production for the quarter which does not exceed the royalty limit for such quarter.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Royalty limit</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>A qualified royalty owner’s royalty limit for any quarter is the product of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the number of days in such quarter, multiplied by</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the limitation in barrels determined under the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of qualified royalty production during:</b></td> <td style="text-align:right; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The limitation in barrels is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1982</td> <td style="text-align:right; vertical-align:top">2</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1983</td> <td style="text-align:right; vertical-align:top">2</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1984</td> <td style="text-align:right; vertical-align:top">2</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1985 and thereafter</td> <td style="text-align:right; vertical-align:top">3.</td> </tr> </tbody> </table> </content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Production exceeds limitation</inline>.—</heading><content>If a qualified royalty owner’s qualified royalty production for any quarter exceeds the royalty limitation for such quarter, such royalty owner may allocate such limit to any qualified royalty production which he selects.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Definitions</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The terms ‘qualified royalty owner’ and ‘qualified royalty production’ have the meanings given to such terms by section 6429; except that the reference to qualified taxable crude oil in section 6429(d) shall be treated as a reference to oil which would have been taxable crude oil but for this section.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Allocation</inline>.—</heading><content>Rules similar to the rules of paragraphs (2), (3), and (4) of section 6429(c) shall apply to the limitation determined under subsection (b)(1).”</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">Adjustments to withholding</inline>.—</heading><content>Subsection (a) of section 4995 is amended by adding at the end thereof the following new <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/244">94 Stat. 244</ref>.</p></sidenote> paragraph: <quotedContent> <subsection class="indent0 fontsize10"><num value="9">“(9) </num> <heading><inline class="smallCaps">Adjustments to take into account royalty exemption</inline>.—</heading><content>The Secretary shall prescribe such regulations as may be necessary so that the withholding required under this subsection shall be reduced to take into account the exemption provided by section 4991(b)(5) (relating to exempt royalty oil), and he may <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 336.</p></sidenote> prescribe such other regulations as may be necessary to administer such exemption.”</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Except as provided in paragraph (2), subsection (a) shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6429">26 USC 6429 note</ref>.</p></sidenote> take effect on January 1, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The amendments made by paragraph (6) of subsection (a) shall take effect on January 1, 1980.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The amendments made by subsection (b) shall apply to oil <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4991">26 USC 4991 note</ref>.</p></sidenote> removed after December 31, 1981.</content></paragraph> </subsection> </section> <section><num value="602">SEC. 602. </num> <heading>REDUCTION IN TAX IMPOSED ON NEWLY DISCOVERED OIL.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (3) of section 4987(b) (relating to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/230">94 Stat. 230</ref>.</p></sidenote> applicable percentage) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Tier 3 soil</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The applicable percentage for tier 3 oil which is not newly discovered oil is 30 percent.</content></subparagraph> <page identifier="/us/stat/95/338">95 STAT. 338</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Newly discovered oil</inline>.—</heading><content>The applicable percentage for newly discovered oil shall be determined in accordance with the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“For taxable periods beginning in:</b></td> <td style="text-align:right; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The applicable percentage is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1982</td> <td style="text-align:right; vertical-align:top">27½</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1983</td> <td style="text-align:right; vertical-align:top">25 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1984</td> <td style="text-align:right; vertical-align:top">22½</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1985</td> <td style="text-align:right; vertical-align:top">20 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1986 and thereafter</td> <td style="text-align:right; vertical-align:top">15”.</td> </tr> </tbody> </table> </content></subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4987">26 USC 4987 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall apply to taxable periods beginning after December 31, 1981.</content> </subsection> </section> <section><num value="603">SEC. 603. </num> <heading>EXEMPT INDEPENDENT PRODUCER STRIPPER WELL OIL.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (b) of section 4991 (as amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 336.</p></sidenote> section 601(b)) is amended by striking out “<quotedText>and</quotedText>” at the end of paragraph (4), by striking out the period at the end of paragraph (5), and inserting in lieu thereof “<quotedText>, and</quotedText>”, and by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>exempt stripper well oil.”</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4994">26 USC 4994</ref>.</p></sidenote><inline class="smallCaps">Exempt Stripper Well Oil</inline>.—</heading><content>Section 4994 (as amended by section 601(b)) is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="g">“(g) </num> <heading><inline class="smallCaps">Exempt stripper well oil</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of this chapter, the term ‘exempt stripper well oil’ means any oil—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the producer of which is an independent producer (within the meaning of section 4992(b)(1)),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>which is from a stripper well property within the meaning of the June 1979 energy regulations, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>which is attributable to the independent producer’s working interest in the stripper well property.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Limitation for certain transferred properties</inline>.—</heading><content>Exempt stripper well oil does not include production attributable to an interest in any property which at any time after July 22, 1981, was owned by a person other than an independent producer (within the meaning of section 4992(b)(1)).”</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/236">94 Stat. 236</ref>.</p></sidenote><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Paragraph (2) of section 4992(c) (defining independent producer amount) is amended by adding at the end thereof the following new sentence: <quotedContent> <p class="indent0 firstIndent1 fontsize10">“For purposes of the preceding sentence, tier 1 oil and tier 2 oil shall be treated as not including exempt stripper well oil.”</p> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4991">26 USC 4991 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to oil removed from the premises after December 31, 1982.</content> </subsection> </section> <section><num value="604">SEC. 604. </num> <heading>EXEMPTION FROM WINDFALL PROFIT TAX OF OIL PRODUCED FROM INTERESTS HELD BY OR FOR THE BENEFIT OF RESIDENTIAL CHILD CARE AGENCIES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Exemption of Child Care Agencies from Tax</inline>.—</heading><content>Subparagraph <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/241">94 Stat. 241</ref>.</p></sidenote> (A) of section 4994(b)(1) (relating to charitable interests exempt from windfall profit tax) is amended by redesignating clause (ii) as clause (iii) and by adding after clause (i) the following new clause: <quotedContent> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>held by an organization described in section 170(c)(2) which is organized and operated primarily for the residential placement, care, or treatment of delinquent, dependent, orphaned, neglected, or handicapped children, or”.</content> </clause> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Period Interest Required To Be Held</inline>.—</heading> <page identifier="/us/stat/95/339">95 STAT. 339</page> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Subparagraph (B) of section 4994(b)(1) is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/241">94 Stat. 241</ref>.</p></sidenote> amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>such interest was held on January 21, 1980, and at all times thereafter before the last day of the taxable period, by the organization described in clause (i) or (ii) of subparagraph (A), or subclause (I) of subparagraph (A)(iii).”</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Interests held for the benefit of child care agencies</inline>.—</heading><chapeau>Paragraph (2) of section 4994(b) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>paragraph (1)(A)(ii)</quotedText>” and inserting in lieu thereof “<quotedText>clause (ii) or (iii) of paragraph (1)(A)</quotedText>”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>paragraph (1)(A)(i)</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>clause (i) or (ii) of paragraph (1)(A)</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Clause (i) of section 4994(b)(1)(A) is amended by striking out “<quotedText>or</quotedText>” at the end thereof.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Subclause (II) of section 4994(b)(1)(A)(ii) is amended by inserting “<quotedText>or (ii)</quotedText>” after “<quotedText>clause (i)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4994">26 USC 4994 note</ref>.</p></sidenote> apply to taxable periods beginning after December 31, 1980.</content> </subsection> </section> </subtitle> <subtitle><num value="B">Subtitle B—</num><heading>Miscellaneous Provision</heading> <section><num value="611">SEC. 611. </num> <heading>APPLICATION OF CREDIT FOR PRODUCING NATURAL GAS FROM A NONCONVENTIONAL SOURCE WITH THE NATURAL GAS POLICY ACT OF 1978.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subsection (e) of section 44D (relating to the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/268">94 Stat. 268</ref>.</p></sidenote> credit for producing fuel from a nonconventional source) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <heading><inline class="smallCaps">Application With the Natural Gas Policy Act of 1978</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">No credit if section 107 of the natural gas policy act of 1978 is utilized</inline>.—</heading><content>Subsection (a) shall apply with respect to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s3317">15 USC 3317</ref>.</p></sidenote> any natural gas described in subsection (c)(1)(B)(i) which is sold during the taxable year only if such natural gas is sold at a lawful price which is determined without regard to the provisions of section 107 of the Natural Gas Policy Act of 1978 and subtitle B of title I of such Act. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s3331">15 USC 3331</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Treatment of this section</inline>.—</heading><content>For purposes of section 107(d) of the Natural Gas Policy Act of 1978, this section shall not be treated as allowing any credit, exemption, deduction, or comparable adjustment applicable to the computation of any Federal tax.”</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s44D">26 USC 44D note</ref>.</p></sidenote> apply to taxable years ending after December 31, 1979.</content> </subsection> </section> </subtitle> 95 STAT. 340 <num value="VII">TITLE VII—</num><heading>ADMINISTRATIVE PROVISIONS</heading> <subtitle><num value="A">Subtitle A—</num><heading>Prohibition of Disclosure of Audit Methods</heading> <section><num value="701">SEC. 701. </num> <heading>PROHIBITION OF DISCLOSURE OF METHODS FOR SELECTION OF TAX RETURNS FOR AUDITS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6103">26 USC 6103</ref>.</p></sidenote><inline class="smallCaps">General Rule</inline>.—</heading><content>Paragraph (2) of section 6103(b) (defining return information) is amended by adding at the end thereof the following new sentence: “Nothing in the preceding sentence, or in any other provision of law, shall be construed to require the disclosure of standards used or to be used for the selection of returns for examination, or data used or to be used for determining such standards, if the Secretary determines that such disclosure will seriously impair assessment, collection, or enforcement under the internal revenue laws.”</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6103">26 USC 6103 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to disclosures after July 19, 1981.</content> </subsection> </section> </subtitle> <subtitle><num value="B">Subtitle B—</num><heading>Changes in Interest Rate for Overpayments and Underpayments</heading> <section><num value="711">SEC. 711. </num> <heading>CHANGES IN RATE OF INTEREST FOR OVERPAYMENTS AND UNDERPAYMENTS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Annual Adjustment to Rate of Interest</inline>.—</heading><content>Subsection (b) of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6621">26 USC 6621</ref>.</p></sidenote> section 6621 (relating to adjustment of interest rate) is amended by striking out the last sentence thereof.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Rate of Interest To Be Based on 100 Percent Of Prime Rate</inline>.—</heading><content>Subsection (c) of section 6621 is amended by striking out “<quotedText>90 percent of</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">New Rate To Take Effect on January 1 of Each Year After 1982</inline>.—</heading><content>Subsection (b) of section 6621 is amended by striking out “<quotedText>February 1</quotedText>” and inserting in lieu thereof “<quotedText>January 1</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6621">26 USC 6621 note</ref>.</p></sidenote><inline class="smallCaps">Effective Dates</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">For subsections (a) and (b)</inline>.—</heading><content>The amendments made by subsections (a) and (b) shall apply to adjustments made after the date of the enactment of this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">For subsection (c)</inline>.—</heading><content>The amendment made by subsection (c) shall apply to adjustments made for periods after 1982.</content></paragraph> </subsection> </section> </subtitle> <subtitle><num value="C">Subtitle C—</num><heading>Changes in Certain Penalties and in Requirements Relating to Returns</heading> <section><num value="721">SEC. 721. </num> <heading>CHANGES IN PENALTIES FOR FALSE INFORMATION WITH RESPECT TO WITHHOLDING.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6682">26 USC 6682</ref>.</p></sidenote><inline class="smallCaps">Civil Penalty</inline>.—</heading><content>Section 6682 (relating to false information with respect to withholding allowances based on itemized deductions) is amended to read as follows: <page identifier="/us/stat/95/341">95 STAT. 341</page> <quotedContent> <section><num value="6682">“SEC. 6682. </num> <heading>FALSE INFORMATION WITH RESPECT TO WITHHOLDING.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Civil Penalty</inline>.—</heading><chapeau>In addition to any criminal penalty provided by law, if—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>any individual makes a statement under section 3402 which results in a decrease in the amounts deducted and withheld under chapter 24, and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3401">26 USC 3401 <i>et seq</i></ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>as of the time such statement was made, there was no reasonable basis for such statement,</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">such individual shall pay a penalty of $500 for such statement.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Exception</inline>.—</heading><chapeau>The Secretary may waive (in whole or in part) the penalty imposed under subsection (a) if the taxes imposed with respect to the individual under subtitle A for the taxable year are equal to or less than the sum of—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the credits against such taxes allowed by part IV of subchapter A of chapter 1, and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s31">26 USC 31</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the payments of estimated tax which are considered payments on account of such taxes.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Deficiency Procedures Not To Apply</inline>.—</heading><content>Subchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6211">26 USC 6211</ref>.</p></sidenote> and certain excise taxes) shall not apply in respect to the assessment or collection of any penalty imposed by subsection (a).”</content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Criminal Penalty</inline>.—</heading><content>Section 7205 (relating to fraudulent withholding <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s7205">26 USC 7205</ref>.</p></sidenote> exemption certificate or failure to supply information) is amended by striking out “<quotedText>$500</quotedText>” and inserting in lieu thereof “<quotedText>$1,000</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The table of sections for subchapter B of chapter 68 is amended by striking out the item relating to section 6682 and inserting in lieu thereof the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 6682.</designator> <label>False information with respect to withholding.”</label></referenceItem> </toc> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6682">26 USC 6682 note</ref>.</p></sidenote> apply to acts and failures to act after December 31, 1981.</content> </subsection> </section> <section><num value="722">SEC. 722. </num> <heading>ADDITIONS TO TAX IN THE CASE OF VALUATION OVERSTATEMENTS, INCREASE IN NEGLIGENCE PENALTY.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Valuation Overstatements</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Subchapter A of chapter 68 (relating to additions to tax) is amended by redesignating section 6659 as section 6660 and by inserting after section 6658 the following new <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6660">26 USC 6660</ref>.</p></sidenote> section: <quotedContent> <section><num value="6659">“SEC. 6659. </num> <heading>ADDITION TO TAX IN THE CASE OF VALUATION OVERSTATEMENTS <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6659">26 USC 6659</ref>.</p></sidenote> FOR PURPOSES OF THE INCOME TAX.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Addition to the Tax</inline>.—</heading><chapeau>If—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>an individual, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>a closely held corporation or a personal service corporation, has an underpayment of the tax imposed by chapter 1 for the taxable year which is attributable to a valuation overstatement, then there shall be added to the tax an amount equal to the applicable percentage of the underpayment so attributable.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Applicable Percentage Defined</inline>.—</heading><content>For purposes of subsection (a), the applicable percentage shall be determined under the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If the valuation claimed is the following percent of the correct valuation—</b></td> <td style="text-align:right; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The applicable percentage is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 150 percent or more but not more than 200 percent</td> <td style="text-align:right; vertical-align:top">10</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> More than 200 percent but not more than 250 percent</td> <td style="text-align:right; vertical-align:top">20</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> More than 250 percent</td> <td style="text-align:right; vertical-align:top">30</td> </tr> </tbody> </table> </content> </subsection> <page identifier="/us/stat/95/342">95 STAT. 342</page> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Valuation Overstatement Defined</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>For purposes of this section, there is a valuation overstatement if the value of any property, or the adjusted basis of any property, claimed on any return exceeds 150 percent of the amount determined to be the correct amount of such valuation or adjusted basis (as the case may be).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Property must have been acquired within last 5 years</inline>.—</heading><content>This section shall not apply to any property which, as of the close of the taxable year for which there is a valuation overstatement, has been held by the taxpayer for more than 5 years.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Underpayment Must Be at Least $1,000</inline>.—</heading><content>This section shall not apply if the underpayment for the taxable year attributable to the valuation overstatement is less than $1,000.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <heading><inline class="smallCaps">Authority To Waive</inline>.—</heading><content>The Secretary may waive all or any part of the addition to the tax provided by this section on a showing by the taxpayer that there was a reasonable basis for the valuation or adjusted basis claimed on the return and that such claim was made in good faith.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <heading><inline class="smallCaps">Other Definitions</inline>.—</heading><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Underpayment</inline>.—</heading><content>The term ‘underpayment’ has the meaning given to such term by section 6653(c)(1).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Closely held corporation</inline>.—</heading><content>The term ‘closely held corporation’ means any corporation described in section 465(a)(1)(C).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Personal service corporation</inline>.—</heading><content>The term ‘personal service corporation’ means any corporation which is a service organization (within the meaning of section 414(m)(3)).”</content></paragraph> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Clerical amendment</inline>.—</heading><content>The table of sections for subchapter A of chapter 68 is amended by striking out the last item and inserting in lieu thereof the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 6659.</designator> <label>Addition to tax in the case of valuation overstatements for purposes of the income tax.</label></referenceItem> <referenceItem role="section"><designator>“Sec. 6660.</designator> <label>Applicable rules.”</label></referenceItem> </toc> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">Technical amendment</inline>.—</heading><content>Subsection (c) of section 5684 (relating to penalties for the payment and collection of liquor <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5684/5761">26 USC 5684, 5761</ref>.</p></sidenote> taxes) and subsection (d) of section 5761 (relating to civil penalties) are each amended by striking out “<quotedText>6659</quotedText>” in the heading and text thereof and inserting in lieu thereof “<quotedText>6660</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6659">26 USC 6659 note</ref>.</p></sidenote><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendments made by this subsection shall apply to returns filed after December 31, 1981.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Increase in Negligence Penalty</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6653">26 USC 6653</ref>.</p></sidenote><inline class="smallCaps">In general</inline>.—</heading><content>Subsection (a) of section 6653 (relating to failure to pay tax) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Negligence or Intentional Disregard of Rules and Regulations With Respect to Income, Gift, or Windfall Profit Taxes</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>If any part of any underpayment (as defined in subsection (c)(1)) of any tax imposed by subtitle A, by chapter <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1/2501">26 USC 1, 2501 <i>et seq</i></ref>.</p> <p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/230">94 Stat. 230</ref>.</p> <p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4986">26 USC 4986 <i>et seq</i></ref>.</p></sidenote> 12 of subtitle B, or by chapter 45 (relating to windfall profit tax) is due to negligence or intentional disregard of rules or regulations (but without intent to defraud), there shall be added to the tax an amount equal to 5 percent of the underpayment.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Additional amount for portion attributable to negligence, etc</inline>.—</heading><chapeau>There shall be added to the tax (in addition to the amount determined under paragraph (1)) an amount equal to 50 percent of the interest payable under section 6601—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>with respect to the portion of the underpayment described in paragraph (1) which is attributable to the <page identifier="/us/stat/95/343">95 STAT. 343</page> negligence or intentional disregard referred to in paragraph (1), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>for the period beginning on the last date prescribed by law for payment of such underpayment (determined without regard to any extension) and ending on the date of the assessment of the tax.”</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Effective date</inline>.—</heading><content>The amendment made by paragraph (1) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6653">26 USC 6653 note</ref>.</p></sidenote> shall apply to taxes the last date prescribed for payment of which is after December 31, 1981.</content></paragraph> </subsection> </section> <section><num value="723">SEC. 723. </num> <heading>CHANGES IN REQUIREMENTS RELATING TO INFORMATION RETURNS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Increases in Penalties for Failure To File Certain Returns or Furnish Certain Statements</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Certain returns</inline>.—</heading><content>Paragraph (1) of section 6652(a) (relating <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6652">26 USC 6652</ref>.</p></sidenote> to failure to file certain information returns, registration statements, etc.) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><chapeau>to file a statement of the aggregate amount of payments to another person required by—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>section 6041 (a) or (b) (relating to certain information at source),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>section 6042(a)(1) (relating to payments of dividends aggregating $10 or more),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>section 6044(a)(1) (relating to payments of patronage dividends aggregating $10 or more),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>section 6049(a)(1) (relating to payments of interest aggregating $10 or more),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>section 6050A(a) (relating to reporting requirements of certain fishing boat operators), or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num><content>section 6051(d) (relating to information returns with respect to income tax withheld), or”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Certain statements</inline>.—</heading><content>Section 6678 (relating to failure to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6678">26 USC 6678</ref>.</p></sidenote> furnish certain statements) is amended by striking out “<quotedText>or</quotedText>” at the end of paragraph (1), by inserting “<quotedText>or</quotedText>” at the end of paragraph (2), and by inserting after paragraph (2) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>to furnish a statement under—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>section 6050A(b) (relating to statements furnished by certain fishing boat operators),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>section 6050C (relating to information regarding windfall profit tax on crude oil),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>section 6051 (relating to information returns with respect to income tax withheld) if the statement is required to be furnished to the employee, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>section 6053(b) (relating to statements furnished by employers with respect to tips),</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">on the date prescribed therefor to a person with respect to whom such a statement is required,”.</continuation> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">Retention of existing penalties for failure to file certain statements</inline>.—</heading><content>Subsection (b) of section 6652 is amended <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6652">26 USC 6652</ref>.</p></sidenote> to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Other Returns</inline>.—</heading><chapeau>In the case of each failure to file a statement of a payment to another person required under the authority of—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>section 6042(a)(2) (relating to payments of dividends aggregating less than $10),</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>section 6044(a)(2) (relating to payments of patronage dividends aggregating less than $10),</content></paragraph> <page identifier="/us/stat/95/344">95 STAT. 344</page> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>section 6049(a)(2) (relating to payments of interest aggregating less than $10), or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>section 6049(a)(3) (relating to other payments of interest by corporations),</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not to willful neglect, there shall be paid (upon notice and demand by the Secretary and in the same manner as tax) by the person failing to so file the statement, $1 for each such statement not so filed, but the total amount imposed on the delinquent person for all such failures during the calendar year shall not exceed $1,000.”</continuation> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <heading><inline class="smallCaps">Clerical amendment</inline>.—</heading><content>The subsection heading of subsection (a) of section 6652 is amended by inserting “<quotedText><inline class="smallCaps">Information at Source,</inline></quotedText>” before “<inline class="smallCaps">Payments of Dividends</inline>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Requirement of Statements To Be Furnished to Persons With Respect to Whom Information Is Furnished on Payments of $600 or More</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6041">26 USC 6041</ref>.</p></sidenote><inline class="smallCaps">In general</inline>.—</heading><content>Section 6041 (relating to information at source) is amended by redesignating subsection (d) as subsection (e) and by inserting after subsection (c) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Statements To Be Furnished to Persons With Respect to Whom Information Is Furnished</inline>.—</heading><chapeau>Every person making a return under subsection (a) shall furnish to each person whose name is set forth in such return a written statement showing—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the name, address, and identification number of the person making such return, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the aggregate amount of payments to the person shown on the return.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">The written statement required under the preceding sentence shall be furnished to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was made. To the extent provided in regulations prescribed by the Secretary, this subsection shall also apply to persons making returns under subsection (b).”</continuation> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Penalty for failure to furnish statement</inline>.—</heading><chapeau>Paragraph <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6678">26 USC 6678</ref>.</p></sidenote> (1) of section 6678 (relating to failure to furnish certain statements) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>6041(d),</quotedText>” before “<quotedText>6042(c)</quotedText>”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by inserting “<quotedText>6041(a),</quotedText>” before “<quotedText>6042(a)(1)</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6652">26 USC 6652 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to returns and statements required to be furnished after December 31, 1981.</content> </subsection> </section> <section><num value="724">SEC. 724. </num> <heading>PENALTY FOR OVERSTATED DEPOSIT CLAIMS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6656">26 USC 6656</ref>.</p></sidenote><inline class="smallCaps">General Rule</inline>.—</heading><content>Subsection (b) of section 6656 (relating to failure to make deposit of taxes) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Overstated Deposit Claims</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Imposition of penalty</inline>.—</heading><content>Any person who makes an overstated deposit claim shall be subject to a penalty equal to 25 percent of such claim.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Overstated deposit claim defined</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘overstated deposit claim’ means the excess of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the amount of tax under this title which any person claims, in a return filed with the Secretary, that such person <page identifier="/us/stat/95/345">95 STAT. 345</page> has deposited in a government depositary under section 6302(c) for any period, over</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the aggregate amount such person has deposited in a government depositary under section 6302(c), for such period, on or before the date such return is filed.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Penalty not imposed in certain cases</inline>.—</heading><content>The penalty under paragraph (1) shall not apply if it is shown that the excess described in paragraph (2) is due to reasonable cause and not due to willful neglect.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Penalty in addition to other penalties</inline>.—</heading><content>The penalty under paragraph (1) shall be in addition to any other penalty provided by law.”</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>The heading of section 6656 is amended by inserting “<quotedText><b>OR OVERSTATEMENT OF DEPOSITS</b></quotedText>” after “<b>TAXES</b>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The table of sections for subchapter A of chapter 68 is amended by striking out the item relating to section 6656 and inserting in lieu thereof the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 6656.</designator> <label>Failure to make deposit of taxes or overstatement of deposits.”</label></referenceItem> </toc> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The heading of subsection (a) of section 6656 is amended by striking out “<quotedText><inline class="smallCaps">Penalty</inline></quotedText>” and inserting in lieu thereof “<quotedText><inline class="smallCaps">Underpayment of Deposits</inline></quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><subparagraph class="inline"><num value="A">(A) </num><content>Section 5684 (relating to penalties relating to the payment <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5684">26 USC 5684</ref>.</p></sidenote> and collection of liquor taxes) is amended by striking out subsection (b) and by redesignating subsections (c) and (d) as subsections (b) and (c), respectively.</content></subparagraph> <subparagraph class="indent1 firstIndent1 fontsize10"><num value="B">(B) </num><content>Subsection (c) of section 5684, as redesignated by subparagraph (A), is amended by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively, and by inserting after paragraph (3) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content><b>For penalty for failure to make deposits or for overstatement of deposits, see section 6656</b>.”</content></paragraph> </quotedContent> </content> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>Section 5761 (relating to civil penalties) is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s5761">26 USC 5761</ref>.</p></sidenote> striking out subsections (c) and (d) and inserting in lieu thereof the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Applicability of Section 6659</inline>.—</heading><content>The penalty imposed by <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 341.</p></sidenote> subsection (b) shall be assessed, collected, and paid in the same manner as taxes, as provided in section 6659(a).</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Cross References</inline>.—</heading><content> “<b>For penalty for failure to make deposits or for overstatement of deposits, see section 6656</b>.”</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6656">26 USC 6656 note</ref>.</p></sidenote> apply to returns filed after the date of the enactment of this Act.</content> </subsection> </section> <section><num value="725">SEC. 725. </num> <heading>DECLARATION OF ESTIMATED TAX NOT REQUIRED IN CERTAIN CASES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Section 6015 (relating to declaration of estimated <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6015">26 USC 6015</ref>.</p></sidenote> tax by individuals) is amended by redesignating subsections (b) through (i) as subsections (c) through (j), respectively, and by inserting after subsection (a) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Declaration Not Required in Certain Cases</inline>.—</heading><content>No declaration shall be required under subsection (a) if the estimated tax (as defined in subsection (d)) is less than the amount determined in accordance with the following table: <page identifier="/us/stat/95/346">95 STAT. 346</page> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of taxable years beginning in:</b></td> <td style="text-align:right; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The amount is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1981</td> <td style="text-align:right; vertical-align:top">$100 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1982</td> <td style="text-align:right; vertical-align:top">200 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1983</td> <td style="text-align:right; vertical-align:top">300 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1984</td> <td style="text-align:right; vertical-align:top">400 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1985 and thereafter</td> <td style="text-align:right; vertical-align:top">500.”</td> </tr> </tbody> </table> </content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">No Penalty for Failure To Pay Estimated Tax in Certain <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6654">26 USC 6654</ref>.</p></sidenote> Cases</inline>.—</heading><content>Section 6654 (relating to failure by individual to pay estimated tax) is amended by redesignating subsections (f) and (g) as subsections (g) and (h), respectively, and by inserting after subsection (e) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <heading><inline class="smallCaps">Exception Where Tax Is Small Amount</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>No addition to tax shall be imposed under subsection (a) for any taxable year if the tax shown on the return for such taxable year (or, if no return is filed, the tax) is less than the amount determined under the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“In the case of taxable years beginning in:</b></td> <td style="text-align:right; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The amount is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1981</td> <td style="text-align:right; vertical-align:top">$100</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1982</td> <td style="text-align:right; vertical-align:top">200</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1983</td> <td style="text-align:right; vertical-align:top">300</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1984</td> <td style="text-align:right; vertical-align:top">400</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1985 and thereafter</td> <td style="text-align:right; vertical-align:top">500.</td> </tr> </tbody> </table> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Special rule</inline>.—</heading><content>For purposes of subsection (b), the amount of any installment required to be paid shall be determined without regard to subsection (b) of section 6015.”</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Technical Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s871">26 USC 871</ref>.</p></sidenote> <content class="inline">Paragraph (6) of section 871(g) is amended by striking out “<quotedText>6015(i)</quotedText>” and inserting in lieu thereof “<quotedText>6015(j)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6015">26 USC 6015</ref>.</p></sidenote> <content class="inline">Subsection (a) of section 6015 is amended by striking out the last sentence.</content></paragraph> <subsection class="indent0 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6153">26 USC 6153</ref>.</p></sidenote> <content class="inline">Subsection (a) of section 6153 is amended by striking out “<quotedText>6015(c)</quotedText>” and inserting in lieu thereof “<quotedText>6015(d)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="4">(4) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s7701">26 USC 7701</ref>.</p></sidenote> <content class="inline">Subparagraph (A) of section 7701(a)(34) is amended by striking out “<quotedText>6015(c)</quotedText>” and inserting in lieu thereof “<quotedText>6015(d)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="5">(5) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Supra</i>.</p></sidenote> <content class="inline">Subsection (g) of such section 6654 (as redesignated by subsection (b)) is amended by striking out “<quotedText>subsections (b) and (d)</quotedText>” and inserting in lieu thereof “<quotedText>subsections (b), (d), and (f)</quotedText>”.</content> </subsection> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6015">26 USC 6015 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to estimated tax for taxable years beginning after December 31, 1980.</content> </subsection> </section> </subtitle> <subtitle><num value="D">Subtitle D—</num><heading>Cash Management</heading> <section><num value="731">SEC. 731. </num> <heading>CASH MANAGEMENT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6655">26 USC 6655</ref>.</p></sidenote><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (1) of section 6655(h) (relating to large corporations required to pay at least 60 percent of current year tax) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Minimum percentage</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in subparagraph (B), in the case of a large corporation, paragraphs (1) and (2) of subsection (d) shall not apply.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Transition rule</inline>.—</heading><chapeau>For taxable years beginning before 1984, in the case of a large corporation, the amount treated as the estimated tax for the taxable year under paragraphs (1) and (2) of subsection (d) shall in no event be less than the applicable percentage of—</chapeau> <page identifier="/us/stat/95/347">95 STAT. 347</page> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the tax shown on the return for the taxable year, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>if no return was filed, the tax for such year.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Applicable percentage</inline>.—</heading><content>For purposes of subparagraph (B), the applicable percentage shall be determined in accordance with the following table: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">“If the taxable year begins in:</b></td> <td style="text-align:right; vertical-align:top"><b xmlns="http://schemas.gpo.gov/xml/uslm">The applicable percentage is:</b></td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1982</td> <td style="text-align:right; vertical-align:top">65 </td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 1983</td> <td style="text-align:right; vertical-align:top">75.”</td> </tr> </tbody> </table> </content></subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Clerical Amendment</inline>.—</heading><content>The heading of subsection (h) of section 6655 (relating to failure by corporations to pay estimated income tax) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6655">26 USC 6655</ref>.</p></sidenote> is amended by striking out “<quotedText><inline class="smallCaps">at Least 60 Percent</inline></quotedText>” and inserting in lieu thereof “<quotedText><inline class="smallCaps">Minimum Percentage</inline></quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6655">26 USC 6655 note</ref>.</p></sidenote> apply to taxable years beginning after December 31, 1981. note.</content> </subsection> </section> </subtitle> <subtitle><num value="E">Subtitle E—</num><heading>Financing of Railroad Retirement System</heading> <section><num value="741">SEC. 741. </num> <heading>INCREASES IN EMPLOYER AND EMPLOYEE TAXES.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Tax on Employees</inline>.—</heading><content>Section 3201 (relating to rate of tax on <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3201">26 USC 3201</ref>.</p></sidenote> employees) is amended by striking out all that precedes “<quotedText>the rate of the tax</quotedText>” and inserting in lieu thereof the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><content>In addition to other taxes, there is hereby imposed on the income of each employee a tax equal to 2.0 percent of so much of the compensation paid in any calendar month to such employee for services rendered by him as is not in excess of an amount equal to one-twelfth of the current maximum annual taxable ‘wages’ as defined in section 3121 for any month.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>The rate of tax imposed by subsection (a) shall be increased by”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Tax on Employee Representatives</inline>.—</heading><content>Subsection (a) of section 3211 (relating to tax on employee representatives) is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3211">26 USC 3211</ref>.</p></sidenote> striking out “<quotedText>9.5</quotedText>” and inserting in lieu thereof “<quotedText>11.75</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Tax on Employers</inline>.—</heading><content>The first sentence of section 3221(a) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3221">26 USC 3221</ref>.</p></sidenote> (relating to tax on employers) is amended by striking out “<quotedText>9.5</quotedText>” and inserting in lieu thereof “<quotedText>11.75</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>The last sentence of section 230(c) of the Social Security Act <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s430">42 USC 430</ref>.</p></sidenote> is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>employee and</quotedText>” before “<quotedText>employer</quotedText>”,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>section 3221(a)</quotedText>” and inserting in lieu thereof “<quotedText>sections 3201(a) and 3221(a)</quotedText>”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out “<quotedText>9.5</quotedText>” and inserting in lieu thereof “<quotedText>11.75</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Paragraph (1) of section 3231(e) (defining compensation) is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3231">26 USC 3231</ref>.</p></sidenote> amended by striking out “<quotedText>(iii)</quotedText>” and all that follows through “<quotedText>(iv)</quotedText>” and inserting in lieu thereof “<quotedText>or (iii)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3201">26 USC 3201 note</ref>.</p></sidenote> apply to compensation paid for services rendered after September 30, 1981.</content> </subsection> </section> <page identifier="/us/stat/95/348">95 STAT. 348</page> <section><num value="742">SEC. 742. </num> <heading>ADVANCE TRANSFER OF AMOUNTS PAYABLE UNDER SOCIAL SECURITY FINANCIAL INTERCHANGE.</heading> <content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231n">45 USC 231n</ref>.</p></sidenote> Section 15(b) of the Railroad Retirement Act of 1974 is amended by inserting “<quotedText>(1)</quotedText>” after “<quotedText>(b)</quotedText>” and by inserting at the end thereof the following new subdivision: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>In any month when the Board finds that the balance in the Railroad Retirement Account is insufficient to pay annuity amounts due to be paid during the following month, the Board shall report to the Secretary of the Treasury the additional amount of money necessary in order to make such annuity payments, and the Secretary shall transfer to the credit of the Railroad Retirement Account such additional amount upon receiving such report from the Board. The total amount of money outstanding to the Railroad Retirement Account from the general fund at any time during any fiscal year shall not exceed the total amount of money the Board and the Trustees of the Social Security Trust Funds estimate will be transferred <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231f">45 USC 231f</ref>.</p></sidenote> to the Railroad Retirement Account pursuant to section 7(c)(2) of this Act with respect to such fiscal year. Whenever the Board determines that the sums in the Railroad Retirement Account are sufficient to pay annuity amounts, the Board shall request the Secretary of the Treasury to retransfer to the general fund from the Railroad Retirement Account all or any part of the amount outstanding, and the Secretary of the Treasury shall make such retransfer of the amount requested. Not later than 10 days after a transfer to the Railroad Retirement Account under section 7(c)(2) of this Act, any amount of money outstanding to the Railroad Retirement Account from the general fund under this subdivision shall be retransferred in accordance with this subdivision. Any amount retransferred shall include an amount of interest computed at a rate determined in accordance with the following two sentences: The rate of interest payable with respect to an amount outstanding for any month shall be equal to the average investment yield for the most recent auction (before such month) of United States Treasury bills with maturities of 52 weeks, deeming any amount outstanding at the beginning of a month to have been borrowed at the beginning of such month. For this purpose the amount of interest computed in accordance with the preceding sentence but not repaid by the end of such month shall be added to the amount outstanding at the beginning of the next month.”</content></paragraph> </quotedContent> </content> </section> <section><num value="743">SEC. 743. </num> <heading>AMENDMENTS TO SECTION 3231 CLARIFYING DEFINITION OF COMPENSATION.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3231">26 USC 3231</ref>.</p></sidenote> <content class="inline">Paragraph (1) of section 3231(e) (defining compensation) is amended by adding after the third sentence thereof the following new sentence: Compensation which is paid in one calendar month but which would be payable in a prior or subsequent taxable month but for the fact that prescribed date of payment would fall on a Saturday, Sunday or legal holiday shall be deemed to have been paid in such prior or subsequent taxable month.”</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Paragraph (2) of section 3231(e) is amended by adding at the beginning thereof the following new sentence: “A payment made by an employer to an individual through the employer’s payroll shall be presumed, in the absence of evidence to the contrary, to be compensation for service rendered by such individual as an employee of the employer in the period with respect to which the payment is made.”</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Paragraph (2) of section 3231(e), as amended by subsection (b), is amended by striking from the second sentence thereof the words “<quotedText>An <page identifier="/us/stat/95/349">95 STAT. 349</page> employee</quotedText>” and inserting instead the words: “<quotedText>An employee receiving retroactive wage payments</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>The amendments made by this section shall apply for taxable <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3231">26 USC 3231 note</ref>.</p></sidenote> years beginning after December 31, 1981.</content> </subsection> </section> </subtitle> <subtitle><num value="F">Subtitle F—</num><heading>Filing Fees</heading> <section><num value="751">SEC. 751. </num> <heading>FEES FOR FILING PETITIONS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Section 7451 is amended by striking out “<quotedText>$10</quotedText>” <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s7451">26 USC 7451</ref>.</p></sidenote> and inserting in lieu thereof “<quotedText>$60</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s7451">26 USC 7451 note</ref>.</p></sidenote> apply to petitions filed after December 31, 1981.</content> </subsection> </section> </subtitle> <num value="VIII">TITLE VIII—</num><heading>MISCELLANEOUS PROVISIONS</heading> <subtitle><num value="A">Subtitle A—</num><heading>Extensions</heading> <section><num value="801">SEC. 801. </num> <heading>FRINGE BENEFITS.</heading> <content>Section 1 of the Act entitled “An Act to prohibit the issuance of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s61">26 USC 61 note</ref>.</p></sidenote> regulations on the taxation of fringe benefits, and for other purposes”, approved October 7, 1978 (Public Law 95–427), is amended by striking out “<quotedText>May 31, 1981</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>December 31, 1983</quotedText>”.</content> </section> <section><num value="802">SEC. 802. </num> <heading>EXCLUSION FOR PREPAID LEGAL SERVICES EXTENDED FOR 3 YEARS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">Extension</inline>.—</heading><content>Section 120 (relating to amounts received under <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s120">26 USC 120</ref>.</p></sidenote> qualified group legal services plans) is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <heading><inline class="smallCaps">Termination</inline>.—</heading><content>This section shall not apply to taxable years ending after December 31, 1984.”</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Paragraph (1) of section 2134(e) of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s120">26 USC 120 note</ref>.</p></sidenote> the Tax Reform Act of 1976 (relating to effective date) is amended by striking out “<quotedText>, and ending before January 1, 1982</quotedText>”.</content> </subsection> </section> </subtitle> <subtitle><num value="B">Subtitle B—</num><heading>Tax-Exempt Obligations</heading> <section><num value="811">SEC. 811. </num> <heading>TAX-EXEMPT FINANCING FOR VEHICLES USED FOR MASS COMMUTING.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Paragraph (4) of section 103(b) (relating to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s103">26 USC 103</ref>.</p></sidenote> industrial development bonds) is amended by striking out “<quotedText>or</quotedText>” at the end of subparagraph (G), by striking out the period at the end of subparagraph (H) and inserting in lieu thereof “<quotedText>, or</quotedText>”, and by inserting after subparagraph (H) the following new subparagraph: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>qualified mass commuting vehicles.”</content></subparagraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Definition of Qualified Mass Commuting Vehicles</inline>.—</heading><content>Subsection (b) of section 103 is amended by redesignating paragraph (9) as paragraph (10) and by inserting after paragraph (8) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="9">“(9) </num> <heading><inline class="smallCaps">Qualified mass commuting vehicles</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of paragraph (4)(I), the term ‘qualified mass commuting vehicle’ means any bus, subway car, rail car, or similar equipment—</chapeau> <page identifier="/us/stat/95/350">95 STAT. 350</page> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>which is leased to a mass transit system wholly owned by 1 or more governmental units (or agencies or instrumentalities thereof), and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>which is used by such system in providing mass commuting services.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Termination</inline>.—</heading><content>Paragraph (4)(I) shall not apply to any obligation issued after December 31, 1984.”</content></subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s103">26 USC 103 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.</content> </subsection> </section> <section><num value="812">SEC. 812. </num> <heading>OBLIGATIONS OF CERTAIN VOLUNTEER FIRE DEPARTMENTS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s103">26 USC 103</ref>.</p></sidenote><inline class="smallCaps">In General</inline>.—</heading><content>Section 103 (relating to interest on certain governmental obligations) is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">Obligations of Certain Volunteer Fire Departments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>An obligation of a volunteer fire department shall be treated as an obligation of a political subdivision of a State if—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>such department is a qualified volunteer fire department with respect to an area within the jurisdiction of such political subdivision, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>such obligation is issued as part of an issue substantially all of the proceeds of which are to be used for the acquisition, construction, reconstruction, or improvement of a firehouse or firetruck used or to be used by such department.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Qualified volunteer fire department</inline>.—</heading><chapeau>For purposes of this subsection, the term ‘qualified volunteer fire department’ means, with respect to a political subdivision of a State, any organization—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>which is organized and operated to provide firefighting or emergency medical services for persons in an area (within the jurisdiction of such political subdivision) which is not provided with any other firefighting services,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>which is required (by written agreement) by the political subdivision to furnish firefighting services in such area.”</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s103">26 USC 103 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>The amendment made by subsection (a) shall apply to obligations issued after December 31, 1980.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Special rule for certain obligations issued before effective date</inline>.—</heading> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><content>Interest on any obligation described in subparagraph (B) shall be excluded from gross income.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <heading><inline class="smallCaps">Obligation to which paragraph applies</inline>.—</heading><chapeau>For purposes of subparagraph (A), an obligation is described in this subparagraph if the obligation—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>was issued after December 31, 1969, and before January 1, 1981, to the First Bank and Trust Company of Indianapolis, Indiana,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>was issued by a qualified volunteer fire department (within the meaning of section 103(i)(2) of the Internal Revenue Code of 1954), and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>was issued for the acquisition, construction, reconstruction, or improvement of firefighting property.</content> </clause> <page identifier="/us/stat/95/351">95 STAT. 351</page> <continuation class="indent2 firstIndent0 fontsize10">An obligation shall be treated as described in this subparagraph only for the period which is held by the First Bank and Trust Company of Indianapolis, Indiana.</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num> <heading><inline class="smallCaps">Firefighting property</inline>.—</heading><chapeau>For purposes of subparagraph (B), the term “firefighting property” means property—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>which is of a character subject to the allowance for depreciation, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><subclause class="inline"><num value="I">(I) </num><content>which is used in the training for the performance of, or in the performance of, firefighting or ambulance services, or</content> </subclause> <subclause class="indent3 firstIndent1 fontsize10"><num value="II">(II) </num><content>which is exclusively used to house the property described in subclause (I).</content> </subclause> </clause> </subparagraph> </paragraph> </subsection> </section> </subtitle> <subtitle><num value="C">Subtitle C—</num><heading>Excise Taxes</heading> <section><num value="821">SEC. 821. </num> <heading>EXTENSION OF TELEPHONE EXCISE TAX.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>The table contained in paragraph (2) of section 4251(a) (relating to imposition of tax on communications) is amended by striking out the last line and inserting in lieu thereof the following: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:top" leaders="yes">“During 1982, 1983, or 1984</td> <td style="text-align:right; vertical-align:top">1”.</td> </tr> </tbody> </table> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Conforming Amendment</inline>.—</heading><content>Subsection (b) of section 4251 is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4251">26 USC 4251</ref>.</p></sidenote> amended by striking out “<quotedText>1983</quotedText>” and inserting in lieu thereof “<quotedText>1985</quotedText>”.</content> </subsection> </section> <section><num value="822">SEC. 822. </num> <heading>EXCLUSION OF CERTAIN SERVICES FROM FEDERAL UNEMPLOYMENT TAX ACT.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><chapeau>Section 3306(c) (relating to the definition <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3306">26 USC 3306</ref>.</p></sidenote> of employment under the Federal Unemployment Tax Act) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>or</quotedText>” at the end of paragraph (17);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by redesignating paragraph (18) as paragraph (19); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by inserting after paragraph (17) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="18">“(18) </num><content>service described in section 3121(b)(20); or”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection (a) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3306">26 USC 3306 note</ref>.</p></sidenote> shall be effective with respect to remuneration paid during 1981.</content> </subsection> </section> <section><num value="823">SEC. 823. </num> <heading>PRIVATE FOUNDATION DISTRIBUTIONS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Paragraph (1) of section 4942(d) (defining distributable <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4942">26 USC 4942</ref>.</p></sidenote> amount) is amended by striking “<quotedText>or the adjusted net income (whichever is higher)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Paragraph (3)(A) of section 4942(j) (defining operating foundation) is amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><chapeau>which makes qualifying distributions (within the meaning of paragraph (1) or (2) of subsection (g)) directly for the active conduct of the activities constituting the purpose or function for which it is organized and operated equal to substantially all of the lesser of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>its adjusted net income (as defined in subsection (f)), and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>its minimum investment return; and”.</content> </clause> </subparagraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Paragraph (3) of section 4942(j) is amended by adding at the end thereof the following new sentence: “Notwithstanding the provisons of subparagraph (A), if the qualifying distributions (within the meaning of paragraph (1) or (2) of subsection (g)) of an <page identifier="/us/stat/95/352">95 STAT. 352</page> organization for the taxable year exceed the minimum investment return for the taxable year, clause (ii) of subparagraph (A) shall not apply unless substantially all of such qualifying distributions are made directly for the active conduct of the activities constituting the purpose or function for which it is organized and operated.”</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s4942">26 USC 4942 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply to taxable years beginning after December 31, 1981.</content> </subsection> </section> </subtitle> <subtitle><num value="D">Subtitle D—</num><heading>Other Provisions</heading> <section><num value="831">SEC. 831. </num> <heading>TECHNICAL AMENDMENTS RELATING TO DISPOSITIONS OF INVESTMENT IN UNITED STATES REAL PROPERTY.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s897">26 USC 897</ref>.</p></sidenote> <content class="inline">Paragraph (1)(A)(i) of section 897(c) (defining United States real property interests) is amended by striking out “<quotedText>United States</quotedText>” and inserting in lieu thereof “<quotedText>United States or the Virgin Islands</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s862">26 USC 862</ref>.</p></sidenote> <chapeau class="inline">Section 862(a) (relating to income from sources without the United States) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>and</quotedText>” at the end of paragraph (5),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out the period at the end of paragraph (6) and inserting in lieu thereof a semicolon,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out “<quotedText>Underwriting</quotedText>” in paragraph (7) and inserting in lieu thereof “<quotedText>underwriting</quotedText>”,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>by striking out the period at the end of paragraph (7) and inserting in lieu thereof “<quotedText>; and</quotedText>”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><content>gains, profits, and income from the disposition of a United States real property interest (as defined in section 897(c)) when the real property is located in the Virgin Islands.”</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6039C">26 USC 6039C</ref>.</p></sidenote> <content class="inline">Section 6039C (relating to returns with respect to United States real property interests) is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <heading><inline class="smallCaps">Special Rule for United States Interest and Virgin Islands Interest</inline>.—</heading><chapeau>A nonresident alien individual or foreign corporation subject to tax under section 897(a) shall pay any tax and file any return required by this title—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>to the United States, in the case of any interest in real property located in the United States and an interest (other than an interest solely as a creditor) in a domestic corporation (with respect to the United States) described in section 897(c)(1)(A)(ii), and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>to the Virgin Islands, in the case of an interest in real property located in the Virgin Islands and an interest (other than an interest solely as a creditor) in a domestic corporation (with respect to the Virgin Islands) described in section 897(c)(1)(A)(ii).”</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Partnership Assets</inline>.—</heading><content>Paragraph (4)(B) of section 897(c) is amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Assets held by partnerships, etc</inline>.—</heading><content>Under regulations prescribed by the Secretary, assets held by a partnership, trust, or estate shall be treated as held proportionately by its partners or beneficiaries. Any asset treated as held by a partner or beneficiary by reason of this subparagraph which is used or held for use by the partnership, trust, or estate in a trade or business shall be treated as so used or <page identifier="/us/stat/95/353">95 STAT. 353</page> held by the partner or beneficiary. Any asset treated as held by a partner or beneficiary by reason of this subparagraph shall be so treated for purposes of applying this subparagraph successively to partnerships, trusts, or estates which are above the first partnership, trust, or estate in a chain thereof.”</content></subparagraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Nonrecognition Rules Overridden in Certain Cases</inline>.—</heading><content>Subparagraph (B) of section 897(d)(1) is amended to read as follows: <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s897">26 USC 897</ref>.</p></sidenote> <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Exceptions</inline>.—</heading><chapeau>Gain shall not be recognized under subparagraph (A)—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><chapeau>if—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>at the time of the receipt of the distributed property, the distributee would be subject to taxation under this chapter on a subsequent disposition of the distributed property, and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>the basis of the distributed property in the hands of the distributee is no greater than the adjusted basis of such property before the distribution, increased by the amount of gain (if any) recognized by the distributing corporation, or</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>if such nonrecognition is provided in regulations prescribed by the Secretary under subsection (e)(2).”</content> </clause> </subparagraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Foreign Corporation Permitted To Elect To Be Treated as a Domestic Corporation</inline>.—</heading><content>Subsection (i) of section 897 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">Election by Foreign Corporation To Be Treated as Domestic Corporation</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>If—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>a foreign corporation holds a United States real property interest, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>under any treaty obligation of the United States the foreign corporation is entitled to nondiscriminatory treatment with respect to that interest,</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">then such foreign corporation may make an election to be treated as a domestic corporation for purposes of this section and section 6039C.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Revocation only with consent</inline>.—</heading><content>Any election under paragraph (1), once made, may be revoked only with the consent of the Secretary.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Making of election</inline>.—</heading><chapeau>An election under paragraph (1) may be made only—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>if all of the owners of all classes of interests (other than interests solely as a creditor) in the foreign corporation at the time of the election consent to the making of the election and agree that gain, if any, from the disposition of such interest after June 18, 1980, which would be taken into account under subsection (a) shall be taxable notwithstanding any provision to the contrary in a treaty to which the United States is a party, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>subject to such other conditions as the Secretary may prescribe by regulations with respect to the corporation or its shareholders. In the case of a class of interest (other than an interest solely as a creditor) which is regularly traded on an established securities market, the consent described in subparagraph (A) need only be made by any person if such person held more than 5 percent of such class of interest at some time during the shorter of the periods described in subsection (c)(1)(A)(ii). The constructive <page identifier="/us/stat/95/354">95 STAT. 354</page> ownership rules of subsection (c)(6)(C) shall apply in determining whether a person held more than 5 percent of a class of interest.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">Exclusive method of claiming nondiscrimination</inline>.—</heading><content>The election provided by paragraph (1) shall be the exclusive remedy for any person claiming discriminatory treatment with respect to this section and section 6039C.”</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <heading><inline class="smallCaps">Reporting Required for Certain Indirect Holdings</inline>.—</heading><content>Paragraph <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6039C">26 USC 6039C</ref>.</p></sidenote> (4)(C) of section 6039C(b) is amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="c">“(C) </num> <heading><inline class="smallCaps">Indirect holdings</inline>.—</heading><content>For purposes of determining whether an entity to which this subsection applies has a substantial investor in United States real property, the assets of any person shall include the person’s pro rata share of the United States real property interest held by any corporation (whether domestic or foreign) if the person’s pro rata share of the United States real property interests exceeded $50,000.”</content></subparagraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s897">26 USC 897</ref>.</p></sidenote><inline class="smallCaps">Certain Contributions to Capital</inline>.—</heading><content>Section 897 is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="j">“(j) </num> <heading><inline class="smallCaps">Certain Contributions to Capital</inline>.—</heading><chapeau>Except to the extent otherwise provided in regulations, gain shall be recognized by a nonresident alien individual or foreign corporation on the transfer of a United States real property interest to a foreign corporation if the transfer is made as paid in surplus or as a contribution to capital, in the amount of the excess of—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the fair market value of such property transferred, over</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>the sum of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the adjusted basis of such property in the hands of the transferor, plus</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the amount of gain, if any, recognized to the transferor under any other provision at the time of the transfer.”</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num> <heading><inline class="smallCaps">Pre-enactment Acquisitions</inline>.—</heading><content>Section 897 is amended by adding at the end thereof the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"><num value="k">“(k) </num> <heading><inline class="smallCaps">Foreign Corporations Acquired Before Enactment</inline>.—</heading><chapeau>If—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>a foreign corporation adopts, or has adopted, a plan of liquidation described in section 334(b)(2)(A), and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the 12-month period described in section 334(b)(2)(B) for the acquisition by purchase of the stock of the foreign corporation, began after December 31, 1979, and before November 26, 1980,</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">then such foreign corporation may make an election to be treated, for the period following June 18, 1980, as a domestic corporation pursuant to section 897(i)(1). Notwithstanding an election under the preceding sentence, any selling shareholder of such corporation shall be considered to have sold the stock of a foreign corporation.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="l">“(l) </num> <heading><inline class="smallCaps">Special Rule for Certain United States Shareholders of Liquidating Foreign Corporations</inline>.—</heading><chapeau>If a corporation adopts a plan of complete liquidation and if, solely by reason of section 897(d), section 337(a) does not apply to sales or exchanges, or section 336 does not apply to distributions, of United States real property interests by such corporation, then, in the case of any shareholder who is a United States citizen or resident and who has held stock in such corporation continuously since June 18, 1980, for the first taxable year of such shareholder in which he receives a distribution in complete liquidation with respect to such stock—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the amount realized by such shareholder on the distribution shall be increased by his proportionate share of the amount by which the tax imposed by this subtitle on such corporation <page identifier="/us/stat/95/355">95 STAT. 355</page> would have been reduced if section 897(d) had not been applicable, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>for purposes of this title, such shareholder shall be deemed to have paid, on the last day prescribed by law for the payment of the tax imposed by this subtitle on such shareholder for such taxable year, an amount of tax equal to the amount of the increase described in paragraph (1).”</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num> <heading><inline class="smallCaps">Treaty</inline>.—</heading><content>Paragraph (2)(B) of section 1125 of the Foreign Investment <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s897">26 USC 897 note</ref>.</p></sidenote> Real Property Tax Act of 1980 is amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the new treaty is signed on or after January 1, 1981, and before January 1, 1985,</content></subparagraph> <continuation class="indent1 firstIndent0 fontsize10">then paragraph (1) shall be applied with respect to obligations under the old treaty by substituting for ‘December 31, 1984’ the date (not later than 2 years after the new treaty was signed) specified in the new treaty (or accompan3dng exchange of notes).”</continuation> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading><content>The amendments made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s897">26 USC 897 note</ref>.</p></sidenote> apply to dispositions after June 18, 1980, in taxable years ending after such date.</content> </subsection> </section> <section><num value="832">SEC. 832. </num> <heading>MODIFICATION OF FOREIGN INVESTMENT COMPANY PROVISIONS.</heading> <subsection class="indent0 fontsize10"><num value="a">(a) </num> <heading><inline class="smallCaps">In General</inline>.—</heading><content>Paragraph (2) of section 1246(a) (defining ratable <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1246">26 USC 1246</ref>.</p></sidenote> share) is amended by striking out subparagraph (B) and inserting in lieu thereof the following: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>excluding such earnings and profits attributable to—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>any amount previously included in the gross income of such taxpayer under section 951 (but only to the extent the inclusion of such amount did not result in an exclusion of any other amount from gross income under section 959), or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><chapeau>any taxable year during which such corporation was not a foreign investment company but only if—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>such corporation was not a foreign investment company at any time before such taxable year, and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>such corporation was treated as a foreign investment company solely by reason of subsection (b)(2).”</content> </subclause> </clause> </subparagraph> </quotedContent> </content> </subsection> <page identifier="/us/stat/95/356">95 STAT. 356</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1246">26 USC 1246 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to sales or exchanges after the date of the enactment of this Act in taxable years ending after such date.</content> </subsection> </section> </subtitle> Approved August 13, 1981.
LEGISLATIVE HISTORY—H.R. 4242 (H.J. Res. 266): HOUSE REPORTS: No. 97–201 (Comm. on Ways and Means) and No. 97–215 (Comm. of Conference). SENATE REPORTS: No. 97–144 accompanying H.J. Res. 266 (Comm. on Finance) and No. 97–176 (Comm. of Conference). CONGRESSIONAL RECORD, Vol. 127 (1981):

May 21, H.J. Res. 266 considered and passed House.

July 29, H.R. 4242 considered and passed House.

May 21, July 15–18, 20–24, 27–29, H.J. Res. 266 considered in Senate.

July 31, H.R. 4242 considered and passed Senate, amended, in lieu of H.J. Res. 266.

Aug. 1, 3, Senate considered and agreed to conference report.

Aug. 4, House agreed to conference report.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 17, No. 33 (1981):

Aug. 13, Presidential statement.

 Public Law 97–35: To provide for reconciliation pursuant to section 301 of the first concurrent resolution on the budget for the fiscal year 1982. Public Law 35 Public Law 97–35 95 Stat. 357 1981-08-13 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 357 Public Law 97–35 97th Congress
An Act To provide for reconciliation pursuant to section 301 of the first concurrent resolution on the budget for the fiscal year 1982.

Aug. 13, 1981

[H.R. 3982]
short titleSection 1. This Act may be cited as the “Omnibus Budget Reconciliation

Omnibus Budget Reconciliation Act of 1981.

Act of 1981”. TABLE OF CONTENTS Title I.  Title II.  Title III.  Title IV.  Title V.  Title VI.  Title VII.  Title VIII.  Title IX.  Title X.  Title XI.  Title XII.  Title XIII.  Title XIV.  Title XV.  Title XVI.  Title XVII.  Title XVIII.  Title XIX.  Title XX.  Title XXI.  Title XXII.  Title XXIII.  Title XXIV.  Title XXV.  Title XXVI.  Title XXVII. 
purposeSec. 2. It is the purpose of this Act to implement the recommendations which were made by specified committees of the House of Representatives and the Senate pursuant to directions contained in part A of title III of the first concurrent resolution on the budget for the fiscal year 1982 (H. Con. Res. 115, 97th Congress), and pursuant to the reconciliation requirements which were imposed by such concurrent resolution as provided in section 310 of the Congressional Budget Act of 1974.

31 USC 1331.
95 STAT. 358 <num value="I">TITLE I—</num><heading>AGRICULTURE, FORESTRY, AND RELATED PROGRAMS</heading> <subtitle><num value="A">Subtitle A—</num><heading>Food Stamp Program Reductions and Other Reductions in Authorization for Appropriations</heading> <part><num value="1">PART 1—</num><heading>FOOD STAMP PROGRAM REDUCTIONS</heading> <section> <heading class="centered smallCaps">family unit requirement</heading><num value="101"><inline class="smallCaps">Sec</inline>. 101. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2012">7 USC 2012</ref>.</p></sidenote> <chapeau class="inline">Section 3(1) of the Food Stamp Act of 1977 is amended by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>inserting before the period at the end of the first sentence “<quotedText>; except that parents and children who live together shall be treated as a group of individuals who customarily purchase and prepare meals together for home consumption even if they do not do so, unless one of the parents is sixty years of age or older</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>striking out “<quotedText>neither</quotedText>” in the second sentence and inserting “<quotedText>no</quotedText>” in lieu thereof.</content></paragraph> </section> <section> <heading class="centered smallCaps">boarders</heading><num value="102"><inline class="smallCaps">Sec</inline>. 102. </num><chapeau>Section 3(1) of the Food Stamp Act of 1977 is amended by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>striking out in clause (1) of the first sentence “<quotedText>or else pays compensation to the others for such meals,</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>striking out in clause (2) of the first sentence “<quotedText>or else live with others and pay compensation to the others for such meals</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>adding before the period at the end of the second sentence “<quotedText>, or else live with others and pay compensation to the others for meals</quotedText>”.</content></paragraph> </section> <section> <heading class="centered smallCaps">adjustment of the thrifty food plan</heading><num value="103"><inline class="smallCaps">Sec</inline>. 103. </num><content>Section 3(o) of the Food Stamp Act of 1977 is amended by striking out “<quotedText>and</quotedText>” before clause (6) and all that follows down through the end of clause (6), and inserting in lieu thereof the following: “<quotedText>(6) on April 1, 1982, adjust the cost of such diet to the nearest dollar increment to reflect changes in the cost of the thrifty food plan for the fifteen months ending the preceding December 31, (7) on July 1, 1983, adjust the cost of such diet to the nearest dollar increment to reflect changes in the cost of the thrifty food plan for the fifteen months ending the preceding March 31, (8) on October 1, 1984, adjust the cost of such diet to the nearest dollar increment to reflect changes in the cost of the thrifty food plan for the fifteen months ending the preceding June 30, and (9) on October 1, 1985, and each October 1, thereafter, adjust the cost of such diet to the nearest dollar increment to reflect changes in the cost of the thrifty food plan for the twelve months ending the preceding June 30</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">gross income eligibility standard</heading><num value="104"><inline class="smallCaps">Sec</inline>. 104. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2014">7 USC 2014</ref>.</p></sidenote> <chapeau class="inline">Section 5 of the Food Stamp Act of 1977 is amended by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>striking out everything before “<quotedText>adjusted annually</quotedText>” in the first sentence of subsection (c) and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><chapeau>The income standards of eligibility shall be—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>for households containing a member who is sixty years of age or over or a member who receives supplemental security <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1381">42 USC 1381</ref>.</p></sidenote>income benefits under title XVI of the Social Security Act or <page identifier="/us/stat/95/359">95 STAT. 359</page>disability and blindness payments under titles I, II, X, XIV, and XVI of the Social Security Act, 100 per centum, and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s301/401/1201/1351/1381">42 USC 301, 401, 1201, 1351, 1381</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>for all other households, 130 per centum,</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">of the nonfarm income poverty guidelines prescribed by the Office of Management and Budget”; and</continuation> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>inserting “<quotedText>for purposes of determining eligibility and benefit levels for households described in subsection (c)(1) and determining benefit levels only for all other households</quotedText>” after “<quotedText>household income</quotedText>” in the first sentence of subsection (e).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 8(a) of the Food Stamp Act of 1977 is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2017">7 USC 2017</ref>.</p></sidenote>inserting “<quotedText>(d) and (e)</quotedText>” after “<quotedText>section 5</quotedText>” in the first sentence.</content> </subsection> </section> <section> <heading class="centered smallCaps">adjustments of deductions</heading><num value="105"><inline class="smallCaps">Sec</inline>. 105. </num><chapeau>Section 5(e) of the Food Stamp Act of 1977 is amended <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2014">7 USC 2014</ref>.</p></sidenote>by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>striking out in the first sentence everything that follows “<quotedText>the Secretary shall allow a standard deduction of</quotedText>” and inserting in lieu thereof the following: “<quotedText>$85 a month for each household, except that households in Alaska, Hawaii, Guam, Puerto Rico, and the Virgin Islands of the United States shall be allowed a standard deduction of $145, $120, $170, $50, and $75, respectively.</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>striking out the second sentence and inserting in lieu thereof the following: “<quotedText>Such standard deductions shall be adjusted (1) on July 1, 1983, to the nearest $5 increment to reflect changes in the Consumer Price Index for all urban consumers published by the Bureau of Labor Statistics, for items other than food and the homeownership component of shelter costs, as appropriately adjusted by the Bureau of Labor Statistics after consultation with the Secretary, for the fifteen months ending the preceding March 31, (2) on October 1, 1984, to the nearest $5 increment to reflect such changes for the fifteen months ending the preceding June 30, and (3) on October 1, 1985, and each October 1 thereafter, to the nearest $5 increment to reflect such changes for the twelve months ending the preceding June 30.</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>striking out the proviso in clause (2) of the fourth sentence and inserting in lieu thereof the following: “<quotedText><i>Provided</i>, That the amount of such excess shelter expense deduction shall not exceed $115 a month in the forty-eight contiguous States and the District of Columbia, and shall not exceed, in Alaska, Hawaii, Guam, Puerto Rico, and the Virgin Islands of the United States, $200, $165, $140, $40, and $85, respectively, adjusted (i) on July 1, 1983, to the nearest $5 increment to reflect changes in the shelter (exclusive of homeownership costs), fuel, and utilities components of housing costs in the Consumer Price Index for all urban consumers published by the Bureau of Labor Statistics, as appropriately adjusted by the Bureau of Labor Statistics after consultation with the Secretary, for the fifteen months ending the preceding March 31, (ii) on October 1, 1984, to the nearest $5 increment to reflect such changes for the fifteen months ending the preceding June 30, and (iii) on October 1, 1985, and each October 1 thereafter, to the nearest $5 increment to reflect such changes for the twelve months ending the preceding June 30,</quotedText>”.</content></paragraph> </section> <page identifier="/us/stat/95/360">95 STAT. 360</page> <section> <heading class="centered smallCaps">earned income deduction</heading><num value="106"><inline class="smallCaps">Sec</inline>. 106. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2014">7 USC 2014</ref>.</p></sidenote> <content class="inline">Section 5(e) of the Food Stamp Act of 1977 is amended by striking out “<quotedText>20 per centum</quotedText>” in the third sentence and inserting in lieu thereof “<quotedText>18 per centum</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">retrospective accounting</heading><num value="107"><inline class="smallCaps">Sec</inline>. 107. </num><subsection class="inline"><num value="a">(a) </num><content>Section 5(f) of the Food Stamp Act of 1977 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><paragraph class="inline"><num value="1">(1) </num><subparagraph class="inline"><num value="A">(A) </num><content>Household income for those households that, by contract for other than an hourly or piecework basis or by self-employment, derive their annual income in a period of time shorter than one year shall be calculated by averaging such income over a twelve-month period.</content></subparagraph> <subparagraph class="indent0 firstIndent1 fontsize10"><num value="B">“(B) </num><content>Household income for those households that receive nonexcluded income of the type described in subsection (d)(3) of this section shall be calculated by averaging such income over the period for which it is received.</content></subparagraph> </paragraph> <paragraph class="indent0 firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>Household income for migrant farmworker households shall be calculated on a propective basis, as provided in paragraph (3)(A).</content></subparagraph> <subparagraph class="indent0 firstIndent1 fontsize10"><num value="B">“(B) </num><content>Household income for all other households shall be calculated either on a prospective basis as provided in paragraph (3)(A) or on a retrospective basis as provided in paragraph (3)(B), as elected by the State agency under regulations prescribed by the Secretary.</content></subparagraph> </paragraph> <paragraph class="indent0 firstIndent1 fontsize10"><num value="3">“(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>Calculation of household income on a prospective basis is the calculation of income on the basis of the income reasonably anticipated to be received by the household during the period for which eligibility or benefits are being determined. Such calculation shall be made in accordance with regulations prescribed by the Secretary which shall provide for taking into account both the income reasonably anticipated to be received by the household during the period for which eligibility or benefits are being determined and the income received by the household during the preceding thirty days.</content></subparagraph> <subparagraph class="indent0 firstIndent1 fontsize10"><num value="B">“(B) </num><content>Calculation of household income on a retrospective basis is the calculation of income for the period for which eligibility or benefits are being determined on the basis of income received in a previous period. Such calculation shall be made in accordance with regulations prescribed by the Secretary which may provide for the determination of eligibility on a prospective basis in some or all cases in which benefits are calculated under this paragraph. Such regulations shall provide for supplementing the initial allotments of newly applying households in those cases in which the determination of income under this paragraph causes serious hardship.</content></subparagraph> </paragraph> <paragraph class="indent0 firstIndent1 fontsize10"><num value="4">“(4) </num><content>In promulgating regulations under this subsection, the Secretary shall consult with the Secretary of Health and Human Services in order to assure that, to the extent feasible and consistent with the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1305">42 USC 1305</ref>.</p></sidenote>purposes of this Act and the Social Security Act, the income of households receiving benefits under this Act and title IV-A of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s601">42 USC 601</ref>.</p></sidenote>Social Security Act is calculated on a comparable basis under the two Acts. The Secretary is authorized, upon the request of a State agency, to waive any of the provisions of this subsection to the extent necessary to permit the State agency to calculate income for purposes of this Act on the same basis that income is calculated under title IV-A of the Social Security Act in that State.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> <page identifier="/us/stat/95/361">95 STAT. 361</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Effective October 1, 1983, paragraph (2)(B) of section 5(f) of the Food Stamp Act of 1977, as amended by subsection (a), is amended to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2014">7 USC 2014</ref>.</p></sidenote>read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>Household income for all other households shall be calculated on a retrospective basis as provided in paragraph (3)(B).”.</content></subparagraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 5(d) of the Food Stamp Act of 1977 is amended by striking out “<quotedText>5(f)(2)</quotedText>” and inserting “<quotedText>5(f)</quotedText>” in lieu thereof.</content> </subsection> </section> <section> <heading class="centered smallCaps">periodic reporting</heading><num value="108"><inline class="smallCaps">Sec</inline>. 108. </num><subsection class="inline"><num value="a">(a) </num><content>Section 3(c) of the Food Stamp Act of 1977 is amended <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2012">7 USC 2012</ref>.</p></sidenote>by inserting before the period at the end of the second sentence “<quotedText>except that the limit of twelve months may be waived by the Secretary to improve the administration of the program</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 6(c) of the Food Stamp Act of 1977 is amended by— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2015">7 USC 2015</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>inserting after “<quotedText>households</quotedText>” in the first sentence of paragraph (1) “, including all households with earned income, except migrant farmworker households, all households with potential earners, including individuals receiving unemployment compensation benefits and individuals required by section 6(d) of this Act to register for work, and all households required to file a similar report under title IV-A of the Social Security Act, but not <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s601">42 USC 601</ref>.</p></sidenote>including households that have no earned income and in which all members are sixty years of age or over or receive supplemental security income benefits under title XVI of the Social Security <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1381">42 USC 1381</ref>.</p></sidenote>Act or disability and blindness payments under titles I, II, X, XIV, and XVI of the Social Security Act,”; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s301/401/1201/1351/1381">42 USC 301, 401, 1201, 1351, 1381</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>striking out “<quotedText>5(f)(2)</quotedText>” in paragraph (1) and inserting “<quotedText>5(f)</quotedText>” in lieu thereof; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>inserting after paragraph (3) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>Any household that fails to submit periodic reports required by paragraph (1) shall not receive an allotment for the payment period to which the unsubmitted report applies until such report is submitted.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>Effective October 1, 1983, section 6(c)(1) of the Food Stamp Act of 1977 is further amended by— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2015">7 USC 2015</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>striking out in the first sentence “<quotedText>that elect to use a system of retrospective accounting in accordance with section 5(f) of this Act</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>striking out the second sentence.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">eligibility of strikers</heading><num value="109"><inline class="smallCaps">Sec</inline>. 109. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 6(d)(4) of the Food Stamp Act of 1977 is amended by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>inserting before the colon at the end of the first proviso the following: “<quotedText>, however, such household shall not receive an increased allotment as the result of a decrease in the income of the striking member or members of the household</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>inserting a period in lieu of the colon at the end of the second proviso; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>striking out the third proviso.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 6(i) of the Food Stamp Act of 1977 is repealed.</content> </subsection> </section> <section> <heading class="centered smallCaps">prorating first month benefits</heading><num value="110"><inline class="smallCaps">Sec</inline>. 110. </num><content>Section 8 of the Food Stamp Act of 1977 is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2017">7 USC 2017</ref>.</p></sidenote>adding at the end thereof the following new subsection: <page identifier="/us/stat/95/362">95 STAT. 362</page> <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>The value of the allotment issued to any eligible household for the initial month or other initial period for which an allotment is issued shall have a value which bears the same ratio to the value of the allotment for a full month or other initial period for which the allotment is issued as the number of days (from the date of application) remaining in the month or other initial period for which the allotment is issued bears to the total number of days in the month or <sidenote><p class="indent0 firstIndent0 fontsize8">“Initial month.”</p></sidenote>other initial period for which the allotment is issued. As used in this subsection, the term ‘initial month’ means (1) the first month for which an allotment is issued to a household, and (2) the first month for which an allotment is issued to a household following any period of more than thirty days which such household was not participating in the food stamp program under this Act after previous participation in such program.”.</content> </subsection> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">outreach</heading><num value="111"><inline class="smallCaps">Sec</inline>. 111. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2020">7 USC 2020</ref>.</p></sidenote> <content class="inline">Section 11(e)(1) of the Food Stamp Act of 1977 is amended by striking out clauses (A) and (B) and redesignating existing clause (C) as (B) and inserting the following new clause (A): <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>not conduct food stamp outreach activities with funds provided under this Act;”.</content></subparagraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2025">7 USC 2025</ref>.</p></sidenote> <chapeau class="inline">Section 16(a) of that Act is amended by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>striking out clause (1); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>redesignating clauses (2), (3), (4), and (5) as clauses (1), (2), (3), and (4), respectively.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">disqualification penalties for fraud and misrepresentation</heading><num value="112"><inline class="smallCaps">Sec</inline>. 112. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2015">7 USC 2015</ref>.</p></sidenote> <content class="inline">Section 6(b) of the Food Stamp Act of 1977 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Any person who has been found by any State or Federal court or administrative agency to have intentionally (A) made a false or misleading statement, or misrepresented, concealed or withheld facts, or (B) committed any act that constitutes a violation of this Act, the regulations issued thereunder, or any State statute, for the purpose of using, presenting, transferring, acquiring, receiving, or possessing coupons or authorization cards shall, immediately upon the rendering of such determination, become ineligible for further participation in the program—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>for a period of six months upon the first occasion of any such determination;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>for a period of one year upon the second occasion of any such determination; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>permanently upon the third occasion of any such determination.</content> </clause> <continuation class="indent0 firstIndent0 fontsize10">During the period of such ineligibility, no household shall receive increased benefits under this Act as the result of a member of such household having been disqualified under this subsection.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Each State agency shall proceed against an individual alleged to have engaged in such activity either by way of administrative hearings, after notice and an opportunity for a hearing at the State level, or by referring such matters to appropriate authorities for civil or criminal action in a court of law.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Such periods of ineligibility as are provided for in paragraph (1) of this subsection shall remain in effect, without possibility of administrative stay, unless and until the finding upon which the ineligibility is based is subsequently reversed by a court of appropri-<page identifier="/us/stat/95/363">95 STAT. 363</page>ate jurisdiction, but in no event shall the period of ineligibility be subject to review.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>The Secretary shall prescribe such regulations as the Secretary <sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote>may deem appropriate to ensure that information concerning any such determination with respect to a specific individual is forwarded to the Office of the Secretary by any appropriate State or Federal entity for the use of the Secretary in administering the provisions of this section. No State shall withhold such information from the Secretary or the Secretary’s designee for any reason whatsoever.”.</content></paragraph> </subsection> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">waiving and offsetting claims; improved recovery of overpayments</heading><num value="113"><inline class="smallCaps">Sec</inline>. 113. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 13 of the Food Stamp Act of 1977 is amended <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2022">7 USC 2022</ref>.</p></sidenote>by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>inserting “<quotedText>(a)</quotedText>” immediately after the section designation;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>inserting before the period at the end of the first sentence “<quotedText>, including the power to waive claims if the Secretary determines that to do so would serve the purposes of this Act</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>adding the following new sentence at the end thereof: “The Secretary shall have the power to reduce amounts otherwise due to a State agency under section 16 of this Act to collect unpaid <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2025">7 USC 2025</ref>.</p></sidenote>claims assessed against the State agency if the State agency has declined or exhausted its appeal rights under section 14 of this Act.”; and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2023">7 USC 2023</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>adding the following new subsection at the end thereof: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>In the case of any ineligibility determination under section 6(b) of this Act, the household of which such ineligible individual is a member is required to agree to a reduction in the allotment of the household of which such individual is a member, or payment in cash, in accordance with a schedule determined by the Secretary, that will be sufficient to reimburse the Federal Government for the value of any overissuance of coupons resulting from the activity that was the basis of the ineligibility determination. If a household refuses to make an election, or elects to make a payment in cash under the provisions of the preceding sentence and fails to do so, the household shall be subject to an allotment reduction.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>State agencies shall collect any claim against a household arising from the overissuance of coupons, other than claims the collection of which is provided for in paragraph (1) of this subsection and claims arising from an error of the State agency, by reducing the monthly allotments of the household. These collections shall be limited to 10 per centum of the monthly allotment (or $10 per month, whenever that would result in a faster collection rate).”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The of section 13 of the Food Stamp Act of 1977 is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2022">7 USC 2022</ref>.</p></sidenote>amended to read “<inline class="smallCaps">collection and disposition of claims</inline>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">states’ share of collected claims</heading><num value="114"><inline class="smallCaps">Sec</inline>. 114. </num><chapeau>Section 16(a) of the Food Stamp Act of 1977 is amended <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2025">7 USC 2025</ref>.</p></sidenote>by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>striking out in the first sentence “<quotedText>through prosecutions</quotedText>” and all that follows down through the end of the sentence and inserting in lieu thereof “<quotedText>pursuant to section 13(B)(1) of this Act <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Supra</i>.</p></sidenote>and 25 per centum of the value of all funds or allotments recovered or collected pursuant to section 13(b)(2) of this Act.</quotedText>”; <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Supra</i>.</p></sidenote>and</content></paragraph> <page identifier="/us/stat/95/364">95 STAT. 364</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>striking out in the second sentence “<quotedText>fraud</quotedText>” and inserting in lieu thereof “<quotedText>ineligibility</quotedText>”.</content></paragraph> </section> <section> <heading class="centered smallCaps">repeal of increases in dependent care deductions for working adults and medical deductions for the elderly and disabled</heading><num value="115"><inline class="smallCaps">Sec</inline>. 115. </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Repeals.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/358">94 Stat. 358</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2014">7 USC 2014 and note</ref>.</p></sidenote> <content class="inline">Sections 104 and 105 of the Food Stamp Act Amendments of 1980 (Public Law 96–249) are repealed.</content> </section> <section> <heading class="centered smallCaps">puerto rico block grant</heading><num value="116"><inline class="smallCaps">Sec</inline>. 116. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Effective July 1, 1982, the Food Stamp Act of 1977 is amended by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>striking out “<quotedText>Puerto Rico,</quotedText>” in section 3(m), clause (3) of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2012/2014">7 USC 2012, 2014</ref>.</p><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 359.</p></sidenote>section 3(o), section 5(b), wherever it appears in section 5(c), and wherever it appears in section 5(e); and striking out “<quotedText>$50,</quotedText>” and “$40,” in section 5(e); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>adding at the end thereof the following new section: <quotedContent> <section> <heading class="centered smallCaps">“block grant</heading><num value="19">“<inline class="smallCaps">Sec</inline>. 19. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><subparagraph class="inline"><num value="A">(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2028">7 USC 2028</ref>.</p></sidenote> <content class="inline">From the sums appropriated under this Act the Secretary shall, subject to the provisions of this subsection and subsection (b), pay to the Commonwealth of Puerto Rico not to exceed $825,000,000 for each fiscal year to finance 100 per centum of the expenditures for food assistance provided to needy persons, and 50 per centum of the administrative expenses related to the provision of such assistance.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>The payments to the Commonwealth for any fiscal year shall not exceed the expenditures by that jurisdiction during that year for the provision of the assistance the provision of which is included in the plan of the Commonwealth approved under subsection (b) and 50 per centum of the related administrative expenses.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary shall, subject to the provisions of subsection (b), pay to the Commonwealth for the applicable fiscal year, at such times and in such manner as the Secretary may determine, the amount estimated by the Commonwealth pursuant to subsection (b)(1)(A)(iv), reduced or increased to the extent of any prior overpayment or current underpayment which the Secretary determines has been made under this section and with respect to which adjustment has not already been made under this subsection.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><subparagraph class="inline"><num value="A">(A) </num><chapeau>In order to receive payments under this Act for any fiscal year, the Commonwealth shall have a plan for that fiscal year approved by the Secretary under this section. By July 1 of each year, if the Commonwealth wishes to receive payments, it shall submit a plan for the provision of the assistance described in subsection (a)(1)(A) for the following fiscal year which—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>designates a single agency which shall be responsible for the administration, or supervision of the administration, of the program for the provision of such assistance;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>assesses the food and nutrition needs of needy persons residing in the Commonwealth;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>describes the program for the provision of such assistance, including the assistance to be provided and the persons to whom such assistance will be provided, and any agencies designated to provide such assistance, which program must meet such requirements as the Secretary may by regulation prescribe for the <page identifier="/us/stat/95/365">95 STAT. 365</page>purpose of assuring that assistance is provided to the most needy persons in the jurisdiction;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>estimates the amount of expenditures necessary for the provision of the assistance described in the program and related administrative expenses, up to the amount provided for payment by subsection (a)(1)(A); and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="v">“(v) </num><content>includes such other information as the Secretary may require.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><clause class="inline"><num value="i">(i) </num><content>The Secretary shall approve or disapprove any plan submitted pursuant to subparagraph (A) no later than August 1 of the year in which it is submitted. The Secretary shall approve any plan which complies with the requirements of subparagraph (A). If a plan is disapproved because it does not comply with any of the requirements of that paragraph the Secretary shall, except as provided in subparagraph (B)(ii), notify the appropriate agency in the Commonwealth that payments will not be made to it under subsection (a) for the fiscal year to which the plan applies until the Secretary is satisfied that there is no longer any such failure to comply, and until the Secretary is so satisfied, the Secretary will make no payments.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>The Secretary may suspend the denial of payments under subparagraph (B)(i) for such period as the Secretary determines appropriate and instead withhold payments provided for under subsection (a), in whole or in part, for the fiscal year to which the plan applies, until the Secretary is satisfied that there is no longer any failure to comply with the requirements of subparagraph (A), at which time such withheld payments shall be paid.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>The Commonwealth shall provide for a biennial audit of expenditures under its program for the provision of the assistance described in subsection (a)(1)(A), and within 120 days of the end of each fiscal year in which the audit is made, shall report to the Secretary the findings of such audit.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>Within 120 days of the end of the fiscal year, the Commonwealth shall provide the Secretary with a statement as to whether the payments received under subsection (a) for that fiscal year exceeded the expenditures by it during that year for which payment is authorized under this section, and if so, by how much, and such other information as the Secretary may require.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><clause class="inline"><num value="i">(i) </num><content>If the Secretary finds that there is a substantial failure by the Commonwealth to comply with any of the requirements of subparagraphs (A) and (B), or to comply with the requirements of subsection (b)(1)(A) in the administration of a plan approved under subsection (b)(1)(B), the Secretary shall, except as provided in subparagraph (C)(ii), notify the appropriate agency in the Commonwealth that further payments will not be made to it under subsection (a) until the Secretary is satisfied that there will no longer be any such failure to comply, and until the Secretary is so satisfied, the Secretary shall make no further payments.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>The Secretary may suspend the termination of payments under subparagraph (C)(i) for such period as the Secretary determines appropriate, and instead withhold payments provided for under subsection (a), in whole or in part, until the Secretary is satisfied that there will no longer be any failure to comply with the requirements of subparagraphs (A) and (B) and subsection (b)(1)(A), at which time such withheld payments shall be paid.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>Upon a finding under subparagraph (C)(i) of a substantial failure to comply with any of the requirements of subparagraphs (A) and (B) and subsection (b)(1)(A), the Secretary may, in addition to or in lieu of any action taken under subparagraphs (C)(i) and (C)(ii), refer <page identifier="/us/stat/95/366">95 STAT. 366</page>the matter to the Attorney General with a request that injunctive relief be sought to require compliance by the Commonwealth of Puerto Rico, and upon suit by the Attorney General in an appropriate district court of the United States and a showing that noncompliance has occurred, appropriate injunctive relief shall issue.</content> </clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall provide for the review of the programs for the provision of the assistance described in subsection (a)(1)(A) for which payments are made under this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary is authorized as the Secretary deems practicable to provide technical assistance with respect to the programs for the provision of the assistance described in subsection (a)(1)(A).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Violation; penalty.</p></sidenote> <content class="inline">Whoever knowingly and willfully embezzles, misapplies, steals, or obtains by fraud, false statement, or forgery, any funds, assets, or property provided or financed under this section shall be fuzed not more than $10,000 or imprisoned for not more than five years, or both, but if the value of the funds, assets or property involved is not over $200, the penalty shall be a fine of not more than $1,000 or imprisonment for not more than one year, or both.”.</content> </subsection> </section> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2028">7 USC 2028 note</ref>.</p></sidenote> <chapeau class="inline">Notwithstanding the provisions of section 19 of the Food Stamp Act of 1977, as added by this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the amount payable to the Commonwealth of Puerto Rico under section 19 for fiscal year 1982 shall be $206,500,000, and the Secretary of Agriculture is authorized to grant such waivers of the requirements imposed by that section with respect to that fiscal year as the Secretary determines appropriate to carry out the purposes of that section; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Plan, submittal to Secretary.</p></sidenote> <content class="inline">in order to receive the amounts payable under this subsection or section 19 for fiscal years 1982 and 1983, the Commonwealth shall submit, for the Secretary’s approval, the plan required by the provisions of subsection (b) of section 19 by April 1, 1982.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">effective dates</heading><num value="117"><inline class="smallCaps">Sec</inline>. 117. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2012">7 USC 2012 note</ref>.</p></sidenote> <content class="inline">Except as otherwise specifically provided, the amendments made by sections 101 through 116 of this Act shall be effective and implemented upon such dates as the Secretary of Agriculture may prescribe, taking into account the need for orderly implementation.</content> </section> </part> <part><num value="2">PART 2—</num><heading>OTHER REDUCTIONS IN AUTHORIZATIONS FOR APPROPRIATIONS</heading> <section> <heading class="centered smallCaps">agricultural and related programs</heading><num value="120"><inline class="smallCaps">Sec</inline>. 120. </num><chapeau>Notwithstanding any other provision of law, there are hereby authorized to be appropriated for the programs designated below not to exceed the sums shown for each of the fiscal years 1982, 1983, and 1984.</chapeau> <appropriations level="intermediate"> <heading>Agricultural Stabilization and Conservation Service</heading> <appropriations level="small"> <heading>dairy and beekeeper indemnity programs</heading> <content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s450j">7 USC 450j note</ref>.</p></sidenote>For necessary expenses involved in making indemnity payments to dairy farmers under the Act of August 13, 1968 (7 U.S.C. 450j): $200,000 for fiscal year 1982, $200,000 for fiscal year 1983, and $200,000 for fiscal year 1984.</content> </appropriations> </appropriations> <page identifier="/us/stat/95/367">95 STAT. 367</page> <appropriations level="intermediate"> <heading>Agricultural Marketing Service</heading> <appropriations level="small"> <heading>payments to states and possessions</heading> <content>For payments to departments of agriculture, bureaus and departments <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1623">7 USC 1623 note</ref>.</p></sidenote>of markets, and similar agencies for marketing activities under section 204(b) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1623(3)): $1,571,000 for fiscal year 1982, $1,651,000 for fiscal year 1983, and $1,723,000 for fiscal year 1984.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Farmers Home Administration</heading> <appropriations level="small"> <heading>rural community fire protection grants</heading> <content>For grants pursuant to section 7 of the Cooperative Forestry <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s2106">16 USC 2106 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s2106">16 USC 2106</ref>.</p></sidenote>Assistance Act of 1978 (Public Law 95–313): $3,565,000 for fiscal year 1982, $3,821,000 for fiscal year 1983, and $4,038,000 for fiscal year 1984.</content> </appropriations> <appropriations level="small"> <heading>rural development planning grants</heading> <content>For rural development planning grants pursuant to section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1926">7 USC 1926 note</ref>.</p></sidenote>306(a)(11) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(11)): $4,767,000 for fiscal year 1982, $4,959,000 for fiscal <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1174">94 Stat. 1174</ref>.</p></sidenote>year 1983, and $5,155,000 for fiscal year 1984.</content> </appropriations> <appropriations level="small"> <heading>rural development grants</heading> <content>For grants pursuant to section 310B(c) of the Consolidated Farm <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1932">7 USC 1932 note</ref>.</p></sidenote>and Rural Development Act (7 U.S.C. 1932): $5,007,000 for fiscal year 1982, $5,280,000 for fiscal year 1983, and $5,553,000 for fiscal year 1984.</content> </appropriations> <appropriations level="small"> <heading>Soil Conservation Service</heading> <content>For necessary expenses for carrying out the programs administered <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s590f">16 USC 590f note</ref>.</p></sidenote>by the Soil Conservation Service: $588,875,000 for fiscal year 1982, $596,767,000 for fiscal year 1983, and $602,865,000 for fiscal year 1984.</content> </appropriations> </appropriations> <appropriations level="intermediate"> <heading>Agricultural Stabilization and Conservation Service</heading> <appropriations level="small"> <heading>agricultural conservation program</heading> <content>For necessary expenses to carry into effect the program authorized <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s1510">16 USC 1510 note</ref>.</p></sidenote>in sections 7 to 15, 16(a), and 17 of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590g–590o, 590p(a), and 590q), and sections 1001–1008, and 1010 of the Agricultural Act of 1970, as added by the Agriculture and Consumer Protection Act of 1973 (16 U.S.C. 1501–1508, and 1510): $201,325,000 for fiscal year 1982, $209,647,000 for fiscal year 1983, and $218,216,000 for fiscal year 1984.</content> </appropriations> <appropriations level="small"> <heading>forestry incentives program</heading> <content>For necessary expenses, not otherwise provided for, to carry out the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s2103">16 USC 2103 note</ref>.</p></sidenote>program of forestry incentives, as authorized in the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2101): $15,090,000 for fiscal year 1982, $16,913,000 for fiscal year 1983, and $18,314,000 for fiscal year 1984.</content> </appropriations> <page identifier="/us/stat/95/368">95 STAT. 368</page> <appropriations level="small"> <heading>water bank program</heading> <content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s1310">16 USC 1310 note</ref>.</p></sidenote>For necessary expenses to carry into effect the provisions of the Water Bank Act (16 U.S.C. 1301–1311): $10,876,000 for fiscal year 1982, $10,854,000 for fiscal year 1983, and $10,813,000 for fiscal year 1984.</content> </appropriations> <appropriations level="small"> <heading>emergency conservation program</heading> <content><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s2204">16 USC 2204 note</ref>.</p></sidenote>For necessary expenses to carry into effect the program authorized in sections 401, 402, and 404 of title IV of the Agricultural Credit Act of 1978 (16 U.S.C. 2201–2205): $10,069,000 for fiscal year 1982, $10,507,000 for fiscal year 1983, and $10,958,000 for fiscal year 1984.</content> </appropriations> </appropriations> </section> <section> <heading class="centered smallCaps">water and waste grants</heading><num value="121"><inline class="smallCaps">Sec</inline>. 121. </num><content>Section 306(a)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926 (a)(2)) is amended by striking out the period at the end of the first sentence and inserting in lieu thereof a colon and the following: “<proviso><i>Provided</i>, That for fiscal years commencing after September 30, 1981, such grants may not exceed $154,900,000 in any fiscal year.</proviso>”.</content> </section> <section> <heading class="centered smallCaps">forest service</heading><num value="122"><inline class="smallCaps">Sec</inline>. 122. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s580o">16 USC 580<i>o</i></ref>.</p></sidenote> <content class="inline">Notwithstanding any other provision of law, there are hereby authorized to be appropriated for the necessary expenses of the Forest Service for carrying out the programs for Forest Research, State and Private Forestry, and National Forest System under the appropriations account for Forest Management, Protection, and Utilization, and the programs under the appropriations account for Construction and Land Acquisition: $1,575,552,000 for fiscal year 1981; $1,498,000,000 for fiscal year 1982; $1,560,000,000 for fiscal year 1983; and $1,620,000,000 for fiscal year 1984: <proviso><i>Provided</i>, That none of the funds authorized to be appropriated hereby may be used for carrying out the Bald Mountain road in the Siskiyou National Forest.</proviso></content> </section> <section> <heading class="centered smallCaps">assistance to land-grant colleges</heading><num value="123"><inline class="smallCaps">Sec</inline>. 123. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s322">7 USC 322 note</ref>.</p></sidenote> <content class="inline">There are authorized to be appropriated for the purpose of providing assistance to land-grant colleges under the Act of August 30, 1890 (commonly referred to as the “Second Morrill Act”) and the Act of March 4, 1907 (7 U.S.C. 322), not to exceed $2,800,000 for the fiscal year 1981; not to exceed $2,800,000 for the fiscal year 1982; not to exceed $2,800,000 for the fiscal year 1983; and not to exceed $2,800,000 for the fiscal year 1984.</content> </section> <section> <heading class="centered smallCaps">public law 480 appropriation limits</heading><num value="124"><inline class="smallCaps">Sec</inline>. 124. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1733">7 USC 1733 note</ref>.</p></sidenote> <content class="inline">Notwithstanding any other provision of law, programs shall not be undertaken under title I (including title III) and title H of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1701/1721/1427">7 USC 1701, 1721, 1427</ref>.</p></sidenote>the Agricultural Trade Development and Assistance Act of 1954 during any calendar year which call for an appropriation of more than $1,304,836,000 for the fiscal year 1982; $1,320,292,000 for the fiscal year 1983; and $1,402,278,000 for the fiscal year 1984.</content> </section> </part> <page identifier="/us/stat/95/369">95 STAT. 369</page> <part><num value="3"><inline class="smallCaps">Part 3</inline>—</num><heading><inline class="smallCaps">Department of Agriculture Personnel</inline></heading> <section> <heading class="centered smallCaps">establishment of personnel ceiling</heading><num value="125"><inline class="smallCaps">Sec</inline>. 125. </num><content>Notwithstanding any other provision of law, the total full-time <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2201">7 USC 2201 note</ref>.</p></sidenote>equivalent staff year personnel ceiling for the United States Department of Agriculture shall not exceed one hundred and seventeen thousand staff years (including overtime) for each of the fiscal years ending September 30, 1982, September 30, 1983, and September 30, 1984.</content> </section> </part> </subtitle> <subtitle><num value="B">Subtitle B—</num><heading>Reduction in Direct Spending</heading> <part><num value="1"><inline class="smallCaps">Part 1</inline>—</num><heading><inline class="smallCaps">Commodity Credit Corporation Programs</inline></heading> <section> <heading class="centered smallCaps">milk price support</heading><num value="150"><inline class="smallCaps">Sec</inline>. 150. </num><chapeau>Effective October 1, 1981, section 201 of the Agricultural Act of 1949 is amended by— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1446">7 USC 1446</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <content class="inline"> <p class="inline">striking out the second sentence of subsection (c) and inserting in lieu thereof the following: “Notwithstanding the foregoing, effective for the period beginning October 1, 1981, and ending September 30, 1985, the price of milk for the marketing year beginning on October 1 of each year shall be supported at a level determined according to the following procedure: The <sidenote><p class="indent0 firstIndent0 fontsize8">Net Government purchases, estimate.</p></sidenote>Secretary shall estimate Government price support purchases net of sales for unrestricted use for the marketing year using the amount of such purchases made during the most recent six-month period adjusted to an annual level on the basis of the most recent ten year experience. The Secretary shall adjust this <sidenote><p class="indent0 firstIndent0 fontsize8">Adjustment.</p></sidenote>estimate of net Government purchases to reflect the effect of current and expected availability of feed, feed prices, milk-feed price ratio, utility cow prices, dairy cow numbers and dairy heifer replacement stocks on milk production during the marketing year. After making this final estimate, the Secretary shall support the price of milk at not less than the level indicated by the following schedule, nor more than 90 per centum of the parity price therefor:</p> <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> </caption> <thead> <tr class="header" style="font-size:8pt"> <th rowspan="2" style="width:50%; text-align:left; border-top:1px solid black; border-bottom:1px solid black; width=60%">“Price as percent of parity</th> <th colspan="2" style="width:50%; height:3em; text-align:center; border-top:1px solid black; border-bottom:1px solid black; width=20%">The higher of anticipated annual rate of net Government purchases</th> </tr> <tr class="header" style="font-size:8pt"> <th style="width:25%; text-align:center; border-bottom:1px solid black; width=10%">Nonfat dry milk (million pounds)</th> <th style="width:25%; text-align:center; border-bottom:1px solid black; width=10%">Milk equivalent (butterfat basal) of butter and cheese (billion pounds)</th> </tr> </thead> <tbody> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 75</td> <td style="text-align:left; vertical-align:top" leaders="yes"> more than 500</td> <td style="text-align:left; vertical-align:top"> 5.5 or more.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 76</td> <td style="text-align:left; vertical-align:top" leaders="yes"> 450–499.9</td> <td style="text-align:left; vertical-align:top"> 5.0–5.499.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 77</td> <td style="text-align:left; vertical-align:top" leaders="yes"> 400–449.9</td> <td style="text-align:left; vertical-align:top"> 4.5–4.999.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 78</td> <td style="text-align:left; vertical-align:top" leaders="yes"> 350–399.9</td> <td style="text-align:left; vertical-align:top"> 4.0–4.499.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 79</td> <td style="text-align:left; vertical-align:top" leaders="yes"> 300–349.9</td> <td style="text-align:left; vertical-align:top"> 3.5–3.999.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 80</td> <td style="text-align:left; vertical-align:top" leaders="yes"> 250–299.9</td> <td style="text-align:left; vertical-align:top"> 3.0–8.499.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 81</td> <td style="text-align:left; vertical-align:top" leaders="yes"> 200–249.9</td> <td style="text-align:left; vertical-align:top"> 2.5–2.999.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 82</td> <td style="text-align:left; vertical-align:top" leaders="yes"> 150–199.9</td> <td style="text-align:left; vertical-align:top"> 2.0–2.499.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 83</td> <td style="text-align:left; vertical-align:top" leaders="yes"> 100–149.9</td> <td style="text-align:left; vertical-align:top"> 1.5–1.999.</td> </tr> <tr> <td style="text-align:left; vertical-align:top" leaders="yes"> 84</td> <td style="text-align:left; vertical-align:top" leaders="yes"> 50–99.9</td> <td style="text-align:left; vertical-align:top"> 1.0–1.499.</td> </tr> <tr> <td style="text-align:left; vertical-align:top; border-bottom:1px solid black" leaders="yes"> 85</td> <td style="text-align:left; vertical-align:top; border-bottom:1px solid black" leaders="yes"> less than 50</td> <td style="text-align:left; vertical-align:top; border-bottom:1px solid black"> less than 1.0.</td> </tr> </tbody> </table> <page identifier="/us/stat/95/370">95 STAT. 370</page> <p class="firstIndent1 fontsize10">In no event shall the support price be less than the dollar amount of the support price then currently in effect for milk: <proviso><i>Provided</i>, That if the Secretary determines that the inventory of dairy products, at the end of the marketing year, exceeds five hundred million pounds of nonfat dry milk or five and one-half billion pounds milk equivalent of butter and cheese, the support price for the next marketing year shall be established at the minimum level indicated by this schedule based upon estimated Government price support purchases net of sales for unrestricted use for <sidenote><p class="indent0 firstIndent0 fontsize8">Notification to congressional committees.</p></sidenote>such year. The Secretary shall notify, in writing, the chairman of the Senate Committee on Agriculture, Nutrition, and Forestry and the chairman of the House Committee on Agriculture of the Secretary’s decision and reasons therefor thirty days prior to the effective date of the new support level. Notwithstanding the foregoing, if during any marketing year dairy product imports into the United States are incrased as the result of an expansion of imports or termination of import restraints established pursuant <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s624">7 USC 624</ref>.</p></sidenote>to section 22 of the Agricultural Adjustment Act, the support price shall be redetermined by reducing the final estimate of net Government purchases by the milk equivalent (butterfat basis) of products or nonfat dry milk or its equivalent of other products derived from such increased imports. The increased support price so determined shall become effective simultaneously with the announcement of the expansion of dairy product imports. A similar reduction in the net Government purchases for the marketing year in which the imports are entered into the United States shall be made when determining the support price level for subsequent years.”; and</proviso></p> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>inserting a new subsection (d) as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> <content class="inline">Effective for the period beginning October 1, 1982, and ending on September 30, 1985, the support price of milk shall be adjusted by the Secretary at the beginning of each semiannual period to reflect any estimated change in the parity index during said semiannual period. If a review of net Government purchases as provided for in subsection (c) indicates that purchases during the most recent six-month period are being made at an annual rate exceeding five and one-half billion pounds milk equivalent (butterfat basis), or five hundred million pounds of nonfat dry milk, the support price of milk need not be adjusted unless such adjustment is necessary to prevent a support price at less than 75 per centum of parity as determined at <sidenote><p class="indent0 firstIndent0 fontsize8">Notification to congressional committees.</p></sidenote>the beginning of the semiannual period. The Secretary shall notify, in writing, the chairman of the Senate Committee on Agriculture, Nutrition, and Forestry and the chairman of the House Committee on Agriculture of the Secretary’s decision and the reasons therefor thirty days prior to the effective date of such semiannual adjustment.”.</content> </subsection> </quotedContent> </content></paragraph> </section> <section> <heading class="centered smallCaps">farm storage facility loans</heading><num value="151"><inline class="smallCaps">Sec</inline>. 151. </num><content>Section 4(h) of the Commodity Credit Corporation Charter Act (15 U.S.C. 714b(h)) is amended by striking out from the fourth proviso of the second sentence “<quotedText>shall make loans</quotedText>” and inserting in lieu thereof “<quotedText>may make loans</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">reduction in ccc administrative expense limitation</heading><num value="152"><inline class="smallCaps">Sec</inline>. 152. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s713a–10">15 USC 713a–10</ref>.</p></sidenote> <content class="inline">Not to exceed $52,000,000 shall be available for the fiscal year ending September 30, 1982, for administrative expenses of the Commodity Credit Corporation, within the limits of funds and bor-<page identifier="/us/stat/95/371">95 STAT. 371</page>rowing authority available to the Corporation as may be necessary in carrying out the programs set forth in the budget for the Corporation.</content> </section> </part> <part><num value="2">PART 2—</num><heading>COMMODITY INSPECTION FEES</heading> <section> <heading class="centered smallCaps">grain inspection and weighing</heading><num value="155"><inline class="smallCaps">Sec</inline>. 155. </num><chapeau>Effective for the period October 1, 1981, through September <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s79">7 USC 79 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s71">7 USC 71</ref>.</p></sidenote>30, 1984, inclusive, the United States Grain Standards Act is 7 USC 71. amended by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>amending section 7(j) (7 U.S.C. 79(j)) to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="j">“(j) </num><paragraph class="inline"><num value="1">(1) </num><content>The Administrator shall, under such regulations as the Administrator may prescribe, charge and collect reasonable inspection fees to cover the estimated cost to the Service incident to the performance of official inspection except when the official inspection is performed by a designated official agency or by a State under a delegation of authority. The fees authorized by this subsection shall, as nearly as practicable and after taking into consideration any proceeds from the sale of samples, cover the costs of the Service incident to its performance of official inspection services in the United States and on United States grain in Canadian ports, including administrative and supervisory costs related to such official inspection of grain. Such fees, and the proceeds from the sale of samples obtained for purposes of official inspection which become the property of the United States, shall be deposited into a fund which shall be available without fiscal year limitation for the expenses of the Service incident to providing services under this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Each designated official agency and each State agency to which authority has been delegated under subsection (e) of this section shall pay to the Administrator fees in such amount as the Administrator determines fair and reasonable and as will cover the estimated costs incurred by the Service relating to supervision of official agency personnel arid supervision by Service personnel of its field office personnel, except costs incurred under paragraph (3) of subsection (g) of this section and sections 9, 10, and 14 of this Act. The fees shall be <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s85/86/87c">7 USC 85, 86, 87c</ref>.</p></sidenote>payable after the services are performed at such times as specified by the Administrator and shall be deposited in the fund created in paragraph (1) of this subsection. Failure to pay the fee within thirty <sidenote><p class="indent0 firstIndent0 fontsize8">Overdue fee.</p></sidenote>days after it is due shall result in automatic termination of the delegation or designation, which shall be reinstated upon payment, within such period as specified by the Administrator, of the fee currently due plus interest and any further expenses incurred by the Service because of such termination. The interest rate on overdue <sidenote><p class="indent0 firstIndent0 fontsize8">Interest rate.</p></sidenote>fees shall be as prescribed by the Secretary, but not less than the current average market yield on outstanding marketable obligations of the United States of comparable maturity, plus an additional charge of not to exceed 1 per centum per annum as determined by the Secretary and adjusted to the nearest one-eighth of 1 per centum.”;</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>amending section 7A(l) (7 U.S.C. 79a(1)) to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="l">“(l) </num><paragraph class="inline"><num value="1">(1) </num><content>The Administrator shall, under such regulations as the Administrator may prescribe, charge and collect reasonable fees to cover the estimated costs to the Service incident to the performance of the functions provided for under this section except as otherwise provided in paragraph (2) of this subsection. The fees authorized by this paragraph shall, as nearly as practicable, cover the costs of the service incident to performance of its functions related to weighing, including administrative and supervisory costs directly related <page identifier="/us/stat/95/372">95 STAT. 372</page>thereto. Such fees shall be deposited into the fund created in section 7(j) of this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Each agency to which authority has been delegated under this section and each agency or other person which has been designated to perform functions related to weighing under this section shall pay to the Administrator fees in such amount as the Administrator determines fair and reasonable and as will cover the costs incurred by the Service relating to supervision of the agency personnel and supervision by Service personnel of its field office personnel incurred as a result of the functions performed by such agencies, except costs <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s79/85/86/87c">7 USC 79, 85, 86 87c</ref>.</p></sidenote>incurred under sections 7(g)(3), 9, 10, and 14 of this Act. The fees shall be payable after the services are performed at such times as specified by the Administrator and shall be deposited in the fund created in <sidenote><p class="indent0 firstIndent0 fontsize8">Overdue fees.</p></sidenote>section 7(j) of this Act. Failure to pay the fee within thirty days after it is due shall result in automatic termination of the delegation or designation, which shall be reinstated upon payment, within such period as specified by the Administrator, of the fee currently due plus interest and any further expenses incurred by the Service because of <sidenote><p class="indent0 firstIndent0 fontsize8">Interest rate.</p></sidenote>such termination. The interest rate on overdue fees shall be as prescribed by the Secretary, but not less than the current average market yield on outstanding marketable obligations of the United States of comparable maturity, plus an additional charge of not to exceed 1 per centum per annum as determined by the Secretary, and adjusted to the nearest one-eighth of 1 per centum.”;</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>adding a new section 7C as follows: <quotedContent> <section> <heading class="centered smallCaps">“limitation on administrative and surpervisory costs</heading><num value="7C">“<inline class="smallCaps">Sec</inline>. 7C. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s79c">7 USC 79c</ref>.</p></sidenote> <content class="inline">The total administrative and supervisory costs which may be incurred under this Act for inspection and weighing (excluding standardization, compliance, and foreign monitoring activities) for each of the fiscal years 1982 through 1984 shall not exceed 35 per centum of the total costs for such activities carried out by the Service for such year.”;</content> </section> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>amending section 19 (7 U.S.C. 87h) to read as follows: <quotedContent> <section> <heading class="centered smallCaps">“appropriations</heading><num value="19">“<inline class="smallCaps">Sec</inline>. 19. </num><content>There are hereby authorized to be appropriated such sums as are necessary for standardization and compliance activities, monitoring in foreign ports grain officially inspected and weighed under this Act, and any other expenses necessary to out the provisions of this Act for each of the fiscal years during the period beginning October 1, 1981, and ending September 30, 1984, to the extent that financing is not obtained from fees and sales of samples as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s79/79a/87f–1">7 USC 79, 79a, 87f–1</ref>.</p></sidenote>provided for in sections 7, 7A, and 17A of this Act.”; and</content> </section> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>adding a new section 20 as follows: <quotedContent> <section> <heading class="centered smallCaps">“advisory committee</heading><num value="20">“<inline class="smallCaps">Sec</inline>. 20. </num><paragraph class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Establishment.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s87i">7 USC 87i</ref>.</p></sidenote> <content class="inline">In order to assure the normal movement of grain in an orderly and timely manner, the Secretary shall establish an advisory committee to provide advice to the Administrator with respect to the efficient and economical implementation of the United States Grain <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s71">7 USC 71 note</ref>.</p></sidenote>Standards Act of 1976. The advisory committee shall consist of not more than twelve members, appointed by the Secretary, representing the interests of all segments of the grain industry, including grain inspection and weighing agencies. Members of the advisory commit-<page identifier="/us/stat/95/373">95 STAT. 373</page>tee shall be appointed not later than thirty days after the date of enactment of this section.</content></paragraph> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>The advisory committee shall be governed by the provisions of the Federal Advisory Committee Act. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5">5 USC app.</ref></p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>The Administrator shall provide the advisory committee with necessary clerical assistance and staff personnel.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>Members of the advisory committee shall serve without compensation, if not otherwise officers or employees of the United States, except that members shall, while away from their homes or regular places of business in the performance of services under this Act, be allowed travel expenses, including per diem in lieu of subsistence, as authorized under section 5703 of title 5, United States Code.”.</content> </subsection> </section> </quotedContent> </content></paragraph> </section> <section> <heading class="centered smallCaps">cotton classing and related services</heading><num value="156"><inline class="smallCaps">Sec</inline>. 156. </num><subsection class="inline"><num value="a">(a) </num><content>Section 5 of the United States Cotton Standards Act (7 U.S.C. 55) is amended to read as follows: <quotedContent> <section class="firstIndent1 fontsize10"><num value="5">“<inline class="smallCaps">Sec</inline>. 5. </num><subsection class="inline"><num value="a">(a) </num><content>The Secretary of Agriculture shall cause to be collected <sidenote><p class="indent0 firstIndent0 fontsize8">Fees and charges.</p></sidenote>such fees and charges for licenses issued to classifiers of cotton under section 3 of this Act, for determinations made under section 4 of this <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s53/54">7 USC 53, 54</ref>.</p></sidenote>Act, and for the establishment of standards and sale of copies of standards under section 6 of this Act, as will cover, as nearly as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s56/57/57a">7 USC 56, 57, 57a</ref>.</p></sidenote>practicable, and after taking into consideration net proceeds from any sale of samples, the costs incident to providing services and standards under such sections, including administrative and supervisory costs. Such fees and charges shall be credited to the current appropriation account that incurs the cost and shall remain available until expended to pay the expenses of the Secretary incident to providing services and standards under this Act and the United States Cotton Futures Act (7 U.S.C. 15b). The Secretary may provide by regulation conditions under which cotton samples submitted or used in the performance of services authorized by this Act shall become the property of the United States and may be sold with the proceeds credited to the foregoing account: <proviso><i>Provided</i>, That such cotton samples shall not be subject to the provisions of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.).</proviso></content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>The price established by the Secretary of Agriculture under the foregoing provisions of this section for practical forms representing the official cotton standards of the United States shall cover, as nearly as practicable, the estimated actual cost to the Department of Agriculture for developing and preparing such practical forms.”.</content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Effective only for the fiscal years ending September 30, 1982, September 30, 1983, and September 30, 1984, section 3a of the Cotton Statistics and Estimates Act (7 U.S.C. 473a) is amended to read as follows: “<inline class="smallCaps">Sec</inline>. 3a. Effective for the fiscal years ending September 30, 1982, September 30, 1983, and September 30, 1984, the Secretary of Agriculture shall make cotton classification services available to producers of cotton. The Secretary shall further provide for appropriate agencies of the Department of Agriculture to collect directly from participating producers reasonable fees which, together with the proceeds of sales of samples submitted under this section, shall cover as nearly as practicable the cost of the services provided under this section, including administrative and supervisory costs: <proviso><i>Provided</i>, That the Secretary’s net cost estimate (after taking into account the proceeds from the sale of samples) used to calculate the uniform per-bale fee to be collected from producers for such classification services shall not <page identifier="/us/stat/95/374">95 STAT. 374</page>exceed $12,000,000 in the fiscal year ending September 30, 1982, $12,400,000 in the fiscal year ending September 30, 1983, and $13,000,000 in the fiscal year ending September 30, 1984. All samples of cotton submitted for classification under this section shall become the property of the United States, and shall be sold:</proviso> <proviso><i>Provided</i>, That such cotton samples shall not be subject to the provisions of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.). Fees collected under this section and under section 3d of this Act and proceeds from sales of samples shall be credited to the current appropriation account that incurs the cost and shall remain available without fiscal year limitation to pay the expenses of the Secretary incident to providing classification services under this section. The Secretary may deposit such funds in an interest bearing account with a financial institution. If any interest is earned on this account, such interest so earned shall be credited to the account for <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote>use by the Secretary in providing such services. There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this section to the extent that financing is not available from fees and the proceeds from the sale of samples.”.</proviso></content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Subsection (f)(1)(G) of the United States Cotton Futures Act (7 U.S.C. 15b(f)(1)(G)) is amended by striking out “<quotedText>in such regulations.</quotedText>” and inserting in lieu thereof “<quotedText>in such regulations and shall be credited to the account referred to in section 5 of the United States <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 373.</p></sidenote>Cotton Standards Act (7 U.S.C. 55). The Secretary may provide by regulation conditions under which cotton samples submitted or used in the performance of services authorized by this act shall become the property of the United States and may be sold and the proceeds credited to the foregoing account: <proviso><i>Provided</i>, That such cotton samples shall not be subject to the provisions of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.).</proviso></quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Meetings.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s61a">7 USC 61a</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s51/471">7 USC 51, 471 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s241">7 USC 241</ref>.</p></sidenote> <content class="inline">The Secretary of Agriculture shall hold annual meetings with representatives of the cotton industry to review (1) activities and operations under the Cotton Standards Act, and the Cotton Statistics and Estimates Act, (2) activities and operations relating to cotton under the United States Warehouse Act, and (3) the effect of such activities and operations on prices received by producers and sales to domestic and foreign users, for the purpose of improving procedures for financing and administering such activities and operations for the benefit of the industry and the Government. Notwithstanding any other provision of law, the Secretary shall take such action as may be necessary to insure that the universal cotton standards system and the licensing and inspection procedures for cotton warehouses are preserved and that the Government cotton classification system continues to operate so that the United States cotton crop is provided an official quality description.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s61a">7 USC 61a note</ref>.</p></sidenote> <content class="inline">The provisions of this section shall become effective October 1, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">tobacco inspection and related services</heading><num value="157"><inline class="smallCaps">Sec</inline>. 157. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Fees and charges.</p></sidenote> <chapeau class="inline">The Tobacco Inspection Act is amended by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>in section 5 (7 U.S.C. 511d), striking out the last two sentences and inserting in lieu thereof the following: “<quotedText>The Secretary shall by regulation fix and collect fees and charges for inspection and certification, the establishment of standards, and other services under this section at designated auction markets. The fees and charges authorized by this section shall, as nearly as practicable, cover the costs of the services, including the administrative and supervisory costs customarily included by the <page identifier="/us/stat/95/375">95 STAT. 375</page>Secretary in user fee calculations. The fees and charges, when collected, shall be credited to the current appropriation account that incurs the cost and shall be available without fiscal year limitation to pay the expenses of the Secretary incident to providing services under this Act. Such fees and charges shall be assessed against the warehouse operator, irrespective of ownership or interest in the tobacco, and shall be collected by the warehouse operator from the sellers of the tobacco. The inspection and related services under this section shall be suspended or denied if the warehouse operator fails to collect or otherwise pay the fees and charges imposed under this section. Tobacco inspection or certification services provided to designated auction markets shall take precedence over such services, other than reinspection, requested under the authority contained in section 6 of this Act or any other provision of law. In accordance with the Federal Advisory Committee Act, the Secretary shall establish a <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5">5 USC app.</ref></p></sidenote>national advisory committee of tobacco producers, and advisory subcommittees for each major kind of tobacco, to advise the Secretary with regard to the level of inspection and related services and the fees and charges therefor. The advisory committee and subcommittees established under this section shall be of permanent duration. The committees shall meet at the call of the Secretary.”</quotedText>; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>in section 6 (7 U.S.C. 511e), amending the first sentence of the second paragraph as follows: “<quotedText>The Secretary shall fix and collect such fees or charges in the administration of this section as will cover, as nearly as practicable, the costs of the services provided, including administrative and supervisory costs. Such fees and charges shall be credited to the account referred to in section 5 of this Act.</quotedText>”. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s511d">5 USC 511d</ref>.</p></sidenote></content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The provisions of this section shall become effective October 1, <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s511d">7 USC 511d note</ref>.</p></sidenote>1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">warehouse examination, inspection, and licensing</heading><num value="158"><inline class="smallCaps">Sec</inline>. 158. </num><subsection class="inline"><num value="a">(a) </num><chapeau>The United States Warehouse Act is amended by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>amending section 10 (7 U.S.C. 251) to read as follows: <quotedContent> <section class="firstIndent1 fontsize10"><num value="10">“<inline class="smallCaps">Sec</inline>. 10. </num><content>The Secretary of Agriculture, or the Secretary’s designated <sidenote><p class="indent0 firstIndent0 fontsize8">Fees, collection.</p></sidenote>representative, shall charge, assess, and cause to be collected a reasonable fee for (1) each examination or inspection of a warehouse (including the physical facilities and records thereof and the agricultural products therein) under this Act; (2) each license issued to any person to classify, inspect, grade, sample, or weigh agricultural products stored or to be stored under provisions of this Act; (3) each annual warehouse license issued to a warehouseman to conduct a warehouse under this Act; and (4) each warehouse license amended, modified, extended, or reinstated under this Act. Such fees shall cover, as nearly as practicable, the costs of providing such services and licenses, including administrative and supervisory costs: <proviso><i>Provided</i>, That the amount of such fees collected for cotton warehouse inspections shall not exceed $400,000 in the fiscal year ending September 30, 1982, $415,000 in the fiscal year ending September 30, 1983, and $430,000 in the fiscal year ending September 30, 1984. All fees collected shall be credited to the current appropriation account that incurs the costs and shall be available without fiscal year limitation to pay the expenses of the Secretary incident to providing services under this Act. The Secretary may deposit such funds in an interest bearing account with a financial institution. If any interest is <page identifier="/us/stat/95/376">95 STAT. 376</page>earned on this account such interest shall be credited to the account for use by the Secretary in providing such services.”; and</proviso></content> </section> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>amending section 31 (7 U.S.C. 271) to read as follows: <quotedContent> <section class="firstIndent1 fontsize10"><num value="31">“<inline class="smallCaps">Sec</inline>. 31. </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote> <content class="inline">There are hereby authorized to be appropriated such sums as are necessary to carry out the provisions of this Act other than those services for which fees are authorized pursuant to section 10. Such appropriated funds may be used by the Secretary to employ qualified persons not regularly in the service of the United States for temporary assistance in carrying out the provisions of this Act.”.</content> </section> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s251">7 USC 251 note</ref>.</p></sidenote> <content class="inline">The provisions of this section shall become effective October 1, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">naval stores inspection and related services</heading><num value="159"><inline class="smallCaps">Sec</inline>. 159. </num><subsection class="inline"><num value="a">(a) </num><chapeau>The Naval Stores Act is amended by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>in the second sentence of section 4 (7 U.S.C. 94) striking out “<quotedText>on tender of the cost thereof as required by him,</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>amending section 8 (7 U.S.C. 98) to read as follows: <quotedContent> <section class="firstIndent1 fontsize10"><num value="8">“<inline class="smallCaps">Sec</inline>. 8. </num><paragraph class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Fees and charges.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s93">7 USC 93</ref>.</p></sidenote> <content class="inline">The Secretary of Agriculture shall fix and cause to be collected fees and charges for the establishment of standards under section 3 of this Act and for examinations, analyses, classifications, and other services under section 4 of this Act which shall cover, as nearly as practicable, the costs of providing such services and standards as the Secretary shall deem necessary, including administrative and supervisory costs. Such fees and charges, when collected, shall be credited to the current appropriation account that incurs such costs and shall be available without fiscal year limitation to pay the expenses of the Secretary incident to providing such services and standards under this Act. Fees and charges shall be assessed and collected from processors and warehousers of naval stores, and inspection and related services shall be suspended or denied to any such processor or warehouser upon failure to timely pay the fees and charges assessed.</content></paragraph> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote> <content class="inline">There are hereby authorized to be appropriated such sums as may be necessary for the enforcement and administration of this Act.”.</content> </subsection> </section> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s94">7 USC 94 note</ref>.</p></sidenote> <content class="inline">The provisions of this section shall become effective October 1, 1981.</content> </subsection> </section> </part> <part><num value="3">PART 3—</num><heading>FARMERS HOME ADMINISTRATION PROGRAMS</heading> <section> <heading class="centered smallCaps">interest rates on farmers home administration water and waste disposal and community facility loans, loans to low-income limited resource borrowers, and loans for nonfarm facilities on prime farmlands</heading><num value="160"><inline class="smallCaps">Sec</inline>. 160. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 307(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)) is amended by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>in paragraph (2), striking out “<quotedText>and (5)</quotedText>” and inserting in lieu thereof “<quotedText>(5), and (6)</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>in paragraph (4), striking out “<quotedText>The</quotedText>” and inserting in lieu thereof “<quotedText>Except as provided in paragraph (6), the</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>amending paragraph (3) to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>Except as provided in paragraph (6), the interest rates on loans (other than guranteed loans), to public bodies or nonprofit associations (including Indian tribes on Federal and State reservations arid other federally recognized Indian tribal groups) for water and waste disposal facilities and essential community facilities shall be set by the Secretary at rates not to exceed the current market yield <page identifier="/us/stat/95/377">95 STAT. 377</page>for outstanding municipal obligations with remaining periods to maturity comparable to the average maturity for such loans, and adjusted to the nearest one-eighth of 1 per centum; and not in excess of 5 per centum per annum for any such loans which are for the upgrading of existing facilities or construction of new facilities as required to meet applicable health or sanitary standards in areas where the median family income of the persons to be served by such facility is below the poverty line prescribed by the Office of Management and Budget as adjusted under section 624 of the Economic Opportunity Act of 1964 (42 U.S.C 2971d) and in other areas as the Secretary may designate where a significant percentage of the persons to be served by such facilities are of low income, as determined by the Secretary.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>Except as provided in paragraph (6), the interest rates on loans <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1934">7 USC 1934</ref>.</p></sidenote>(other than guaranteed loans) under section 310D of this title shall be as determined by the Secretary, but not in excess of one-half of the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans, nor less than 5 per centum per annum.”; and</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>adding at the end thereof a new paragraph (6) as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><subparagraph class="inline"><num value="A">(A) </num><content>Notwithstanding any other provision of this section, in the case of loans (other than guaranteed loans) made or insured under the authorities of this Act specified in subparagraph (B) for activities that involve the use of prime farmland as defined in subparagraph (C), the interest rates shall be the interest rates otherwise applicable under this section increased by 2 per centum per annum. Wherever practicable, construction by a State, municipality, or other political subdivision of local government that is supported by loans described in the preceding sentence shall be placed on land that is not prime farmland, in order to preserve the maximum practicable amount of prime farmlands for production of food and fiber. Where other options exist for the siting of such construction and where the governmental authority still desires to carry out such construction on prime farmland, the 2 per centum interest rate increase provided by this clause shall apply, but such increased interest rate shall not apply where such other options do not exist.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>The authorities referred to in subparagraph (A) are—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>clauses (2) and (3) of section 303(a), <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1923">7 USC 1923</ref>.</p></sidenote></content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the provisions of section 304(a) relating to the financing of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1924">7 USC 1924</ref>.</p></sidenote>outdoor recreational enterprises or the conversion of farming or ranching operations to recreational uses,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>section 304(b),</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>the provisions of section 306(a)(1) relating to loans for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1926">7 USC 1926</ref>.</p></sidenote>recreational developments and essential community facilities,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="v">“(v) </num><content>section 306(a)(15),</content> </clause> <clause class="firstIndent1 fontsize10"><num value="vi">“(vi) </num><content>clause (1) of section 310B(a), <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1932">7 USC 1932</ref>.</p></sidenote></content> </clause> <clause class="firstIndent1 fontsize10"><num value="vii">“(vii) </num><content>subsections (d) and (e) of section 310B, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="viii">“(viii) </num><content>section 310D(a) as it relates to the making or insuring of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1934">7 USC 1934</ref>.</p></sidenote>loans under clauses (2) and (3) of section 303(a).</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>For purposes of this paragraph, the term ‘prime farmland’ <sidenote><p class="indent0 firstIndent0 fontsize8">“Prime farmland.”</p></sidenote>means prime farmlands and unique farmland as those terms are defined in sections 657.5 (a) and (b) of title 7, Code of Federal Regulations (1980).”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 316(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1946(a)) is amended by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>inserting “<quotedText>(1)</quotedText>” after “<quotedText>(a)</quotedText>”;</content></paragraph> <page identifier="/us/stat/95/378">95 STAT. 378</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>inserting in the second sentence “<quotedText>and loans as provided in paragraphs (2) and (3)</quotedText>” after “<quotedText>except for guaranteed loans</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>adding at the end thereof new paragraphs (2) and (3) as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The interest rate on any loan (other than a guaranteed loan) to a low-income, limited resource borrower under this subtitle shall be the interest rate otherwise applicable under this section reduced by 3 per centum per annum.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The interest rate on any loan (other than a guaranteed loan) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1942">7 USC 1942</ref>.</p><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 376.</p></sidenote>made or insured under clause (5) of section 312(a) for activities that involve the use of prime farmland as defined in section 307(a)(6)(C) shall be the interest rate otherwise applicable under this section increased by 2 per centum per annum.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1927">7 USC 1927 note</ref>.</p></sidenote> <content class="inline">The amendments made by this section shall apply to loans approved after September 30, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">emergency loan amounts</heading><num value="161"><inline class="smallCaps">Sec</inline>. 161. </num><content>Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended by inserting “<quotedText>only to the extent and in such amounts as provided in advance in appropriation Acts</quotedText>” after “<quotedText>The Secretary shall make and insure loans under this subtitle</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">interest rates on emergency loans for actual loss</heading><num value="162"><inline class="smallCaps">Sec</inline>. 162. </num><subsection class="inline"><num value="a">(a) </num><content>Section 324(b)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1964(b)(1)) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>For loans or portions of loans up to the amount of the applicant’s actual loss caused by the disaster, as limited under subsection (a)(1) of this section, the interest shall be at rates prescribed by the Secretary, but (A) if the applicant is not able to obtain sufficient credit elsewhere, not in excess of 8 per centum per annum, and (B) if the applicant is able to obtain sufficient credit elsewhere, not in excess of the rate prevailing in the private market for similar loans, as determined by the Secretary; and”.</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1964">7 USC 1964 note</ref>.</p></sidenote> <content class="inline">The amendments made by this section shall apply to loans made with respect to disasters occurring after September 30, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">eligibility for assistance based on production loss</heading><num value="163"><inline class="smallCaps">Sec</inline>. 163. </num><content>Section 329 of the Consolidated Farm and Rural Development <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1970">7 USC 1970</ref>.</p></sidenote>Act is amended to read as follows: <quotedContent> <section class="firstIndent1 fontsize10"><num value="329">“<inline class="smallCaps">Sec</inline>. 329. </num><content>The Secretary shall make financial assistance under this subtitle available to any applicant seeking assistance based on production losses if the applicant shows that a single enterprise which constitutes a basic part of the applicant’s farming, ranching, or aquaculture operation has sustained at least a 30 per centum loss of normal per acre or per animal production, or such lesser per centum of loss as the Secretary may determine, as a result of the disaster based upon the average monthly price in effect for the previous year and the applicant otherwise meets the conditions of eligibility prescribed under this subtitle. Such loans shall be made available based upon 80 per centum, or such greater per centum as the Secretary may determine, of the total calculated actual production loss sustained by the applicant.”.</content> </section> </quotedContent> </content> </section> <page identifier="/us/stat/95/379">95 STAT. 379</page> <section> <heading class="centered smallCaps">insured loan limits</heading><num value="164"><inline class="smallCaps">Sec</inline>. 164. </num><content>Section 346 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1994) is amended by adding at the end thereof a new subsection (d) as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><chapeau>Notwithstanding any contrary provisions of subsection (b) of this section, for fiscal year 1982, loans are authorized to be insured, or made to be sold and insured, as follows:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><chapeau>From the Agricultural Credit Insurance Fund—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>insured real estate loans for farm ownership purposes, $700,000,000, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>insured operating loans, $1,325,000,000.</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">Not less than 20 per centum of the insured loans authorized for farm ownership purposes and not less that 20 per centum of the insured loans authorized for farm operating purposes shall be for low-income, limited-resource applicants.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>From the Rural Development Insurance Fund—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>insured water and waste disposal loans, $300,000,000, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>insured community facility loans, $130,000,000.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </section> </part> <part><num value="4">PART 4—</num><heading>RURAL ELECTRIFICATION ADMINISTRATION PROGRAMS</heading> <section> <heading class="centered smallCaps">rural electrification act amendments</heading><num value="165"><inline class="smallCaps">Sec</inline>. 165. </num><subsection class="inline"><num value="a">(a) </num><content>Section 305(b) of the Rural Electrification Act of 1936 (7 U.S.C. 935(b)) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>Insured loans made under this title shall bear interest at 5 per <sidenote><p class="indent0 firstIndent0 fontsize8">Insured loans, interest rates.</p></sidenote>centum per annum, except that the Administrator may make insured loans to electric or telephone borrowers at a lesser interest rate, but not less than 2 per centum per annum, if, in the Administrator’s sole discretion, the Administrator finds that the borrower—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>has experienced extreme financial hardship; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>cannot, in accordance with generally accepted management and accounting principles and without charging rates to its customers or subscribers so high as to create a substantial disparity between such rates and the rates charged for similar service in the same or nearby areas by other suppliers, provide service consistent with the objectives of this Act.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 306 of the Rural Electrification Act of 1936 (7 U.S.C. 936) is amended by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>inserting immediately after the second sentence the following: “<quotedText>With respect to guarantees issued by the Administrator under this section, on the request of the borrower of any such loan so guaranteed, the loan shall be made by the Federal Financing Bank and at a rate of interest that is not more than the rate of interest applicable to other similar loans then being made or purchased by the Bank.</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>striking our “<quotedText>a loan insured at the standard rate</quotedText>” in the fourth sentence and inserting in lieu thereof “<quotedText>an insured loan</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 307 of the Rural Electrification Act of 1936 (7 U.S.C. 937) is amended by striking out “<quotedText>a loan insured at the standard rate</quotedText>” and inserting in lieu thereof “<quotedText>an insured loan</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>The amendments made by subsection (a) of this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s935">7 USC 935 note</ref></p></sidenote>apply to loans the applications for which are received by the Rural Electrification Administration after July 24, 1981.</content> </subsection> </section> </part> </subtitle> 95 STAT. 380 <num value="II">TITLE II—</num><heading>ARMED SERVICES AND DEFENSE-RELATED PROGRAMS</heading> <subtitle><num value="A">Subtitle A—</num><heading>Strategic and Critical Materials</heading> <section> <heading class="centered smallCaps">authorization of disposals</heading><num value="201"><inline class="smallCaps">Sec</inline>. 201. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s98d">7 USC 98d note</ref>.</p></sidenote> <chapeau class="inline">Effective on October 1, 1981, the President is authorized to dispose of the following quantities of materials currently held in the National Defense Stockpile established by section 3 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98b), such quantities having been determined to be excess to the current requirements of the stockpile:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>1,000,000 pounds of iodine.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>1,500,000 carats of diamonds, industrial crushing bort.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>710,253 pounds of mercuric oxide.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>50,000 flasks of mercury.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>6,000,000 pounds of mica, muscovite splittings.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>25,000 pounds of mica, phlogopite splittings.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>46,537,000 troy ounces of silver.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>1,000 short tons of antimony.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">(9) </num><content>2,000 short tons of asbestos chrysotile.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">(10) </num><content>50,000 pounds of mica muscovite film, first and second qualities.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="11">(11) </num><content>50,000 pounds of mica muscovite block, stained and lower.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="12">(12) </num><content>700 long tons of vegetable tannin extract, wattle.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> <chapeau class="inline">Effective on October 1, 1982, the President is authorized to dispose of the following quantities of materials currently held in the National Defense Stockpile, such quantities having been determined to be excess to the current requirements of the stockpile:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>44,682,000 troy ounces of silver.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>1,000 short tons of antimony.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>2,000 short tons of asbestos chrysotile.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>1,500,000 carats of diamond stones.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>1,000,000 pounds of iodine.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>50,000 pounds of mica muscovite film, first and second qualities.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>50,000 pounds of mica muscovite block, stained and lower.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>697 long tons of vegetable tannin extract, wattle.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote> <chapeau class="inline">Effective on October 1, 1983, the President is authorized to dispose of the following quantities of materials currently held in the National Defense Stockpile, such quantities having been determined to be excess to the current requirements of the stockpile:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>13,900,000 troy ounces of silver.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>1,000 short tons of antimony.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>6,000 short tons of asbestos amosite.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>2,000 short tons of asbestos chrysotile.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>1,500,000 carats of diamond stones.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>197,465 carats of diamonds, industrial crushing bort.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>213,000 pounds of iodine.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>50,000 pounds of mica muscovite film, first and second qualities.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">(9) </num><content>50,000 pounds of mica muscovite block, stained and lower.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Expiration.</p></sidenote> <content class="inline">The authority to enter into contracts for the disposal of materials in the stockpile under the disposal authorizations contained in paragraphs (7) through (12) of subsection (a) expires on September 30, 1982.</content></paragraph> <page identifier="/us/stat/95/381">95 STAT. 381</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The authority to enter into contracts for the disposal of materials <sidenote><p class="indent0 firstIndent0 fontsize8">Expiration.</p></sidenote>in the stockpile under the disposal authorizations contained in subsection (b) expires on September 30, 1983.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The authority to enter into contracts for the disposal of materials <sidenote><p class="indent0 firstIndent0 fontsize8">Expiration.</p></sidenote>in the stockpile under the disposal authorizations contained in subsection (c) expires on September 30, 1984.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Any disposal under the authority of subsection (a), (b), or (c) shall be carried out in accordance with the provisions of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98 et seq.).</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><paragraph class="inline"><num value="1">(1) </num><content>The authority contained in subsections (b)(1) and (c)(1) shall not become effective unless the President, not later than September 1, 1982, determines that the silver authorized for disposal by such subsections is excess to the requirements of the stockpile as of that date.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>A determination by the President under paragraph (1) shall be based upon consideration of such factors as the President considers relevant, including the following factors:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>The demand for silver in each of the next ten years for the industrial, military, and naval needs of the United States for national defense.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>The domestic supply of silver for each of the next ten years, as a function of price, that would be available to meet the demand identified under subparagraph (A).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>The potential dependency of the United States on foreign supplies of silver in each of the next ten years to meet the demand identified under subparagraph (A).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>The effect of disposal under subsections (b)(1) and (c)(1) on (i) the world silver market (in terms of price and supply), (ii) the domestic and international silver mining industry (in terms of exploration and production), (iii) international currency and monetary policy, and (iv) long range military preparedness.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>If the President makes a determination described in paragraph <sidenote><p class="indent0 firstIndent0 fontsize8">Report to congressional committees.</p></sidenote>(1), he shall promptly report to the Committees on Armed Services of the Senate and House of Representatives that he has made such determination and shall include a detailed discussion and analysis of the factors set forth in paragraph (2) and other relevant factors.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">authorization of appropriations</heading><num value="202"><inline class="smallCaps">Sec</inline>. 202. </num><subsection class="inline"><num value="a">(a) </num><content>Effective on October 1, 1981, there is authorized to be <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s98d">50 USC 98d note</ref>.</p></sidenote>appropriated the sum of $535,000,000 for the acquisition of strategic and critical materials under section 6(a) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98e(a)).</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Any acquisition using funds appropriated under the authorization of subsection (a) shall be carried out in accordance with the provisions of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98 et seq.).</content> </subsection> </section> <section> <heading class="centered smallCaps">improvements in stockpile management</heading><num value="203"><inline class="smallCaps">Sec</inline>. 203. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 5(a) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98d(a)) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(1)</quotedText>” after “<quotedText>(a)</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting “<quotedText>and other incidental expenses</quotedText>” after “<quotedText>transportation</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out “<quotedText>for a period of five fiscal years, if so provided in appropriation Acts</quotedText>” and inserting in lieu thereof <page identifier="/us/stat/95/382">95 STAT. 382</page>“<quotedText>until expended, unless otherwise provided in appropriation Acts</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>If for any fiscal year the President proposes certain stockpile transactions in the annual materials plan submitted to Congress for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s98h–2">50 USC 98h–2</ref>.</p></sidenote>that year under section 11(b) and after that plan is submitted the President proposes (or Congress requires) a significant change in any such transaction, or a significant transaction not included in such plan, no amount may be obligated or expended for such transaction during such year until the President has submitted a full statement of the proposed transaction to the appropriate committees of Congress and a period of 30 days has passed from the date of the receipt of such statement by such committees or until each such committee, before the expiration of such period, notifies the President that it has no objection to the proposed transaction. In computing any 30-day period for the purpose of the preceding sentence, there shall be excluded any day on which either House of Congress is not in session because of an adjournment of more than three days to a day certain.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 5(b) of such Act (50 U.S.C. 98d(b)) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(1)</quotedText>” after “<quotedText>from the stockpile</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out the period at the end and inserting in lieu thereof “<quotedText>, or (2) if the disposal would result in there being a balance in the National Defense Stockpile Transaction Fund in excess of $1,000,000,000 or, in the case of a disposal to be made after September 30, 1983, if the disposal would result in there being a balance in the fund in excess of $500,000,000.</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 6(a)(6) of such Act (50 U.S.C. 98e(a)(6)) is amended by inserting “<quotedText>subject to the provisions of section 5(b),</quotedText>” after “<quotedText>(6)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 9(b)(1) of such Act (50 U.S.C. 98h(b)(1)) is amended by striking out “<quotedText>or until</quotedText>” and all that follows in such section and inserting in lieu thereof a period.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 9(b)(3) of such Act (50 U.S.C. 98h(b)(3)) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Moneys in the fund, when appropriated, shall remain available until expended, unless otherwise provided in appropriation Acts.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><chapeau>Section 11 of such Act (50 U.S.C. 98h–2) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(a)</quotedText>” after “<inline class="smallCaps">Sec</inline>. 11.”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Report to congressional committees.</p></sidenote> <content class="inline">The President shall submit to the appropriate committees of the Congress each year with the Budget submitted to Congress pursuant to section 201(a) of the Budget and Accounting Act, 1921 (31 U.S.C. 11(a)), for the next fiscal year a report containing an annual materials plan for the operation of the stockpile during such fiscal year and the succeeding four fiscal years. Each such report shall include details of planned expenditures for acquisition of strategic and critical materials during such period (including expenditures to be made from appropriations from the general fund of the Treasury) and of anticipated receipts from proposed disposals of stockpile materials during such period.”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s98d">50 USC 98d note</ref>.</p></sidenote> <content class="inline">The amendments made by subsection (a) shall apply with respect to funds appropriated for fiscal years beginning after September 30, 1981.</content> </subsection> </section> </subtitle> <page identifier="/us/stat/95/383">95 STAT. 383</page> <subtitle><num value="B">Subtitle B—</num><heading>Military Compensation</heading> <section> <heading class="centered smallCaps">once annual cost-of-living increases in military retired pay</heading><num value="211"><inline class="smallCaps">Sec</inline>. 211. </num><subsection class="inline"><num value="a">(a) </num><content>For cost savings achieved through elimination of one of the present semiannual increases in military retired and retainer pay, contingent upon a similar change in law being made with respect to the civil service retirement system, see section 812(b) of the Department of Defense Authorization Act, 1981 (Public Law 96–342; 94 Stat. 1098). <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1401a">10 USC 1401a note</ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 812(b)(1) of the Department of Defense Authorization Act, 1981, is amended by striking out “<quotedText>subject to paragraph (3)</quotedText>” and inserting in lieu thereof “<quotedText>subject to paragraph (2)</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">open enrollment period for survivor benefit plan</heading><num value="212"><inline class="smallCaps">Sec</inline>. 212. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Any eligible member who on the date of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1448">10 USC 1448 note</ref>.</p></sidenote>enactment of this Act is not a participant in the Survivor Benefit Plan may elect to participate in the Plan during the open enrollment period specified in subsection (b).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Any eligible member who on the date of the enactment of this Act is a participant in the Plan but elected not to participate in the Plan at the maximum level or (in the case of an eligible member who is married) elected to provide an annuity under the Plan for dependent child and not for the member’s spouse may during the open enrollment period elect to participate in the Plan at a higher level or to provide an annuity under the Plan for the eligible member’s spouse at a level not less than the level provided for the dependent child.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Any such election shall be made in the same manner as an election under section 1448 of such title and shall be effective when received by the Secretary concerned. Notwithstanding the last sentence of section 1452(a) of such title, the reduction in retired or retainer pay prescribed by the first sentence of such section shall, in the case of an individual making an election under paragraph (1), begin on the first day of the first month beginning after such election is effective.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The open enrollment period is the period beginning on October 1, 1981, and ending on September 30, 1982.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>If an individual making an election under subsection (a) dies before the end of the two-year period beginning on the date of that election, the election is void and the amount of any reduction in the retired or retainer pay of such individual that is attributable to the election shall be paid in a lump sum to that individual’s beneficiary under the Plan (as designated under that election).</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Sections 1449, 1453, and 1454 of title 10, United States Code, are applicable to individuals making elections and to elections under this section.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><chapeau>For the purposes of this section: <sidenote><p class="indent0 firstIndent0 fontsize8">Definitions.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>The term “eligible member” means a member or former member of the uniformed services who on the date of the enactment of this Act is entitled to retired or retainer pay.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The term “Survivor Benefit Plan” or “Plan” means the program established under subchapter II of chapter 73 of title 10, United States Code. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s1447">10 USC 1447</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The term “Secretary concerned” has the meaning given such term in section 101(5) of title 37, United States Code.</content></paragraph> </subsection> </section> </subtitle> 95 STAT. 384 <num value="III">TITLE III—</num><heading>BANKING, HOUSING, AND RELATED PROGRAMS</heading> <subtitle><num value="A">Subtitle A—</num><heading><sidenote><p class="indent0 firstIndent0 fontsize8">Housing and Community Development Amendments of 1981.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5301">42 USC 5301 note</ref>.</p></sidenote>Housing and Community Development</heading> <section> <heading class="centered smallCaps">short title</heading><num value="300"><inline class="smallCaps">Sec</inline>. 300. </num><content>This subtitle may be cited as the “<shortTitle role="subtitle">Housing and Community Development Amendments of 1981</shortTitle>”.</content> </section> <part><num value="1">PART 1—</num><heading>COMMUNITY AND ECONOMIC DEVELOPMENT</heading> <section> <heading class="centered smallCaps">authorizations</heading><num value="301"><inline class="smallCaps">Sec</inline>. 301. </num><content>Section 103 of the Housing and Community Development <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5303">42 USC 5303</ref>.</p></sidenote>Act of 1974 is amended to read as follows: <quotedContent> <section> <heading class="centered smallCaps">“authorizations</heading><num value="103">“<inline class="smallCaps">Sec</inline>. 103. </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Grants.</p></sidenote> <content class="inline">The Secretary is authorized to make grants to States, units of general local government, and Indian tribes to carry out <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation.</p></sidenote>activities in accordance with the provisions of this title. There are authorized to be appropriated for these purposes not to exceed $4,166,000,000 for each of the fiscal years 1982 and 1983. Sums appropriated pursuant to this section shall remain available until expended.”.</content> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">statement of activities and review</heading><num value="302"><inline class="smallCaps">Sec</inline>. 302. </num><subsection class="inline"><num value="a">(a) </num><content>The caption of section 104 of the Housing and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5304">42 USC 5304</ref>.</p></sidenote>Community Development Act of 1974 is amended to read as follows: “<inline class="smallCaps">statement of activities and review</inline>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Subsections (a), (b), and (c) of section 104 of such Act are amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Prior to the receipt in any fiscal year of a grant under section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5306">42 USC 5306</ref>; <i>Post</i> p. 389.</p></sidenote>106(b) by any metropolitan city or urban county, under section 106(d) by any State, or under section 106(d)(2)(B) by any unit of general local government, the grantee shall have prepared a final statement of community development objectives and projected use of funds and shall have provided the Secretary with the certifications required in subsection (b) and, where appropriate, subsection (c). In the case of metropolitan cities and urban counties receiving grants pursuant to section 106(b) and in the case of units of general local government receiving grants pursuant to section 106(d)(2)(B), the statement of projected use of funds shall consist of proposed community development activities. In the case of States receiving grants pursuant to section 106(d), the statement of projected use of funds shall consist of the method by which the States will distribute funds to units of general local government.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>In order to permit public examination and appraisal of such statements, to enhance the public accountability of grantees, and to facilitate coordination of activities with different levels of government, the grantee shall—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>furnish citizens information concerning the amount of funds available for proposed community development and housing activities and the range of activities that may be undertaken;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>publish a proposed statement in such manner to afford affected citizens or, as appropriate, units of general local govern-<page identifier="/us/stat/95/385">95 STAT. 385</page>ment an opportunity to examine its content and to submit comments on the proposed statement and on the community development performance of the grantee; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>hold one or more public hearings to obtain the views of citizens on community development and housing needs.</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">In preparing the final statement, the grantee shall consider any such comments and views and may, if deemed appropriate by the grantee, modify the proposed statement. The final statement shall be made available to the public, and a copy shall be furnished to the Secretary together with the certifications required under subsection (b) and, where appropriate, subsection (c).</continuation> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>Any grant under section 106 shall be made only if the grantee <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5306">42 USC 5306</ref>.</p></sidenote>certifies to the satisfaction of the Secretary that—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the grantee is in full compliance with the requirements of subsection (a)(2)(A), (B), and (C) and has made the final statement available to the public;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the grant will be conducted and administered in conformity with Public Law 88–352 and Public Law 90–284; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2000a">42 USC 2000a note</ref>; <ref href="/us/stat/82/73">82 Stat. 73</ref>.</p><p class="indent0 firstIndent0 fontsize8">Projected use of funds.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>the projected use of funds has been developed so as to give maximum feasible priority to activities which will benefit low and moderate-income families or aid in the prevention or elimination of slums or blight; the projected use of funds may also include activities which the grantee certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>the grantee will comply with the other provisions of this title and with other applicable laws.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Any grant made under section 106(b) shall be made only if <sidenote><p class="indent0 firstIndent0 fontsize8">Grants.</p></sidenote>the unit of general local government certifies that it is following a current housing assistance plan which has been approved by the Secretary and which—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>accurately surveys the condition of the housing stock in the community and assesses the housing assistance needs of lower income persons (including elderly and handicapped persons, large families, owners of homes requiring rehabilitation assistance, and persons displaced or to be displaced) residing in or expected to reside in the community as a result of existing or projected changes in employment opportunities and population in the community (and those elderly persons residing in or expected to reside in the community), or as estimated in a community accepted State or regional housing opportunity plan approved by the Secretary, and identifies housing stock which is in a deteriorated condition, including the impact of conversion of rental housing to condominium or cooperative ownership on such needs;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>specifies a realistic annual goal for the number of dwelling units or lower income persons to be assisted, including (i) the relative proportion of new, rehabilitated, and existing dwelling units, including existing rental and owner occupied dwelling units to be upgraded and thereby preserved, (ii) the sizes and types of housing projects and assistance best suited to the needs of lower income persons in the community, and (iii) in the case of subsidized rehabilitation, adequate provisions to assure that a preponderance of persons assisted should be of low and moderate income; and</content></subparagraph> <page identifier="/us/stat/95/386">95 STAT. 386</page> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>indicates the general locations of proposed housing for lower income persons, with the objective of (1) furthering the revitalization of the community, including the restoration and rehabilitation of stable neighborhoods to the maximum extent possible, and the reclamation of the housing stock where feasible through the use of a broad range of techniques for housing restoration by local government, the private sector, or community organizations, including provision of a reasonable opportunity for tenants displaced as a result of such activities to relocate in their immediate neighborhood, (ii) promoting greater choice of housing opportunities and avoiding undue concentrations of assisted persons in areas containing a high proportion of low-income persons, and (iii) assuring the availability of public facilities and services adequate to serve proposed housing projects.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary shall establish such dates and manner for the submission of housing assistance plans described in paragraph (1) as the Secretary may prescribe.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5304">42 USC 5304</ref>.</p><p class="indent0 firstIndent0 fontsize8">Report.</p></sidenote> <content class="inline">Section 104(d) of such Act is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><chapeau>Each grantee shall submit to the Secretary, at a time determined by the Secretary, a performance report concerning the use of funds made available under section 106, together with an assessment by the grantee of the relationship of such use to the objectives identified in the grantee’s statement under subsection (a). The Secretary shall, at least on an annual basis, make such reviews and audits as may be necessary or appropriate to determine—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>in the case of grants made under section 106(b) or section <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 389.</p></sidenote>106(d)(2)(B), whether the grantee has carried out its activities and, where applicable, its housing assistance plan in a timely manner, whether the grantee has carried out those activities and its certifications in accordance with the requirements and the primary objectives of this title and with other applicable laws, and whether the grantee has a continuing capacity to carry out those activities in a timely manner; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>in the case of grants to States made under section 106(d), whether the State has distributed funds to units of general local government in a timely manner and in conformance to the method of distribution described in its statement, whether the State has carried out its certifications in compliance with the requirements of this title and other applicable laws, and whether the State has made such reviews and audits of the units of general local government as may be necessary or appropriate to determine whether they have satisfied the applicable performance criteria described in paragraph (1) of this subsection.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">The Secretary may make appropriate adjustments in the amount of the annual grants in accordance with the Secretary’s findings under this subsection. With respect to assistance made available to units of <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 389.</p></sidenote>general local government under section 106(d), the Secretary may adjust, reduce, or withdraw such assistance, or take other action as appropriate in accordance with the Secretary’s reviews and audits under this subsection, except that funds already expended on eligible activities under this title shall not be recaptured or deducted from future assistance to such units of general local government.”.</continuation> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5304">42 USC 5304 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5304">42 USC 5304</ref>.</p></sidenote> <content class="inline">The amendment made by paragraph (1) shall take effect on October 1, 1982.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Section 104 of such Act is amended by striking out subsections (e) and (f) and redesignating subsections (g), (h), (i), and (j) as subsections (e), (f), (g), and (h).</content> </subsection> <page identifier="/us/stat/95/387">95 STAT. 387</page> <subsection class="indent0 fontsize10"><num value="e">(e) </num><chapeau>Section 104(f) of such Act, as redesignated by subsection (d) of <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 86.</p></sidenote>this section, is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>applicants</quotedText>” in paragraph (1) and inserting in lieu thereof “<quotedText>recipients of assistance under this title</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>applicant</quotedText>” wherever it appears and inserting in lieu thereof “<quotedText>recipient of assistance under this title</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out “<quotedText>applications and</quotedText>” in the last sentence of paragraph (2); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by adding the following new paragraph at the end thereof: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>In the case of grants made to States pursuant to section 106(d), <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 389.</p></sidenote>the State shall perform those actions of the Secretary described in paragraph (2) and the performance of such actions shall be deemed to satisfy the Secretary’s responsibilities referred to in the second sentence of such paragraph.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><chapeau>Section 104(g) of such Act, as redesignated by subsection (d) of <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 386.</p></sidenote>this section, is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out paragraph (1) and inserting in lieu thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>Units of general local government receiving assistance under this title may receive funds, in one payment, in an amount not to exceed the total amount designated in the grant (or, in the case of a unit of general local government receiving a distribution from a State pursuant to section 106(d), not to exceed the total amount of such distribution) for use in establishing a revolving loan fund which is to be established in a private financial institution and which is to be used to finance rehabilitation activities assisted under this title. Rehabilitation activities authorized under this section shall begin within 45 days after receipt of such payment.”; and</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out the last two sentences of paragraph (2).</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">eligible activities</heading><num value="303"><inline class="smallCaps">Sec</inline>. 303. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 105(a) of the Housing and Community Development Act of 1974 is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5305">42 USC 5305</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out paragraph (8) and inserting in lieu thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><content>provision of public services, including but not limited to those concerned with employment, crime prevention, child care, health, drug abuse, education, energy conservation, welfare or recreation needs, if such services have not been provided by the unit of general local government (through funds raised by such unit, or received by such unit from the State in which it is located) during any part of the twelve-month period immediately preceding the date of submission of the statement with respect to which funds are to be made available under this title, and which are to be used for such services, unless the Secretary finds that the discontinuation of such services was the result of events not within the control of the unit of general local government, except that not more than 10 per centum of the amount of any assistance to a unit of general local government under this title may be used for activities under this paragraph;”;</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting the following before the semicolon at the end of paragraph (13) “, and including the carrying out of activities as described in section 701(e) of the Housing Act of 1954 on the date <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1662">94 Stat. 1662</ref>.</p></sidenote>prior to the date of enactment of the Housing and Community Development Amendments of 1981”; <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 384.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out “<quotedText>and</quotedText>” at the end of paragraph (15);</content></paragraph> <page identifier="/us/stat/95/388">95 STAT. 388</page> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by striking out the period at the end of paragraph (16) and inserting in lieu thereof “<quotedText>; and</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="17">“(17) </num><content>provision of assistance to private, for-profit entities, when the assistance is necessary or appropriate to carry out an economic development project.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Waiver.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5305">42 USC 5305 note</ref>.</p></sidenote> <content class="inline">In fiscal years 1982, 1983, and 1984, the Secretary may waive the limitation on the amount of funds which may be used for public services activities under section 105(a)(8) of the Housing and Community <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 387.</p></sidenote>Development Act of 1974, as amended by this Act, in the case of a unit of general local government which, during fiscal year 1981, allocated more than 10 per centum of funds received under title I of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5301">42 USC 5301</ref>.</p></sidenote>the Housing and Community Development Act of 1974 for such activities.</content> </subsection> </section> <section> <heading class="centered smallCaps">allocation and distribution of funds</heading><num value="304"><inline class="smallCaps">Sec</inline>. 304. </num><subsection class="inline"><num value="a">(a) </num><content>Section 106(a) of the Housing and Community Development <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5306">42 USC 5306</ref>.</p></sidenote>Act of 1974 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><content>Of the amount approved in an appropriation Act under section <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 384.</p><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, pp. 391, 392.</p></sidenote>103 for grants in any year (excluding the amounts provided for use in accordance with section 107 and section 119), 70 per centum shall be allocated by the Secretary to metropolitan cities and urban counties. Except as otherwise specifically authorized, each metropolitan city and urban county shall be entitled to an annual grant from such allocation in an amount not exceeding its basic amount computed pursuant to paragraph (1) or (2) of subsection (b).”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5306">42 USC 5306</ref>.</p></sidenote> <content class="inline">Section 106 of such Act is amended by striking out subsection (c) and redesignating subsections (d), (e), (f), and (g) as subsections (c), (d), (e), and (f), respectively.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 106(c), as redesignated by subsection (b) of this section, is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Reallocated funds.</p></sidenote> <chapeau class="inline">Except as provided in paragraph (2), any amounts allocated to a metropolitan city or an urban county pursuant to the preceding provisions of this section which are not received by the city or county for a fiscal year because of failure to meet the requirements of section <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 384.</p><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 386.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5311">42 USC 5311</ref>.</p></sidenote>104(a), (b), or (c), or which become available as a result of actions under section 104(d) or 111, shall be reallocated in the succeeding fiscal year to the other metropolitan cities and urban counties in the same metropolitan area which certify to the satisfaction of the Secretary that they would be adversely affected by the loss of such amounts from the metropolitan area. The amount of the share of funds reallocated under this paragraph for any metropolitan city or urban county shall bear the same ratio to the total of such reallocated funds in the metropolitan area as the amount of funds awarded to the city or county for the fiscal year in which the reallocated funds become available bears to the total amount of funds awarded to all metropolitan cities and urban counties in the same metropolitan area for that fiscal year, except that—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>in determining the amounts awarded to cities or counties for purposes of calculating shares pursuant to this sentence, there shall be excluded from the award of any city or county any amounts which become available as a result of actions against such city or county under section 111;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>in reallocating amounts resulting from an action under section 104(d) or section 111, the city or county against whom any such action was taken shall be excluded from the calculation of shares for purposes of reallocating the amounts becoming available as a result of such action; and</content></subparagraph> <page identifier="/us/stat/95/389">95 STAT. 389</page> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>in no event may the share of reallocated funds for any metropolitan city or urban county exceed 25 per centum of the amount awarded to the city or county under section 106(b) for the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5306">42 USC 5306</ref>.</p></sidenote>fiscal year in which the reallocated funds under this paragraph become available.</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">Any amounts allocated under section 106(b) which become available for reallocation and for which no metropolitan city or urban county qualifies under this paragraph shall be added to amounts available for allocation under such section 106(b) in the succeeding fiscal year.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Notwithstanding any other provision of this title, the Secretary shall make grants from amounts authorized for use under section 106(b) by the Department of Housing and Urban Development—Independent Agencies Appropriation Act, 1981, in accordance with <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3044">94 Stat. 3044</ref>.</p></sidenote>the provisions of this title which governed grants with respect to such amounts, as such provisions existed prior to the effective date of the Housing and Community Development Amendments of 1981, except <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 384.</p></sidenote>that any such amounts which are not obligated before January 1, 1982, shall be reallocated in accordance with paragraph (1).”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><chapeau>Section 106(d)(1) of such Act, as redesignated by subsection (b) of this section, is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 388.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>section 103(a)</quotedText>” and all that follows through “nonmetropolitan areas of each State” in the first sentence and inserting in lieu thereof the following: “<quotedText>section 103 for grants in any year (excluding the amounts provided for use in accordance with section 107 and section 119), 30 per centum shall be <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, pp. 391, 392.</p></sidenote>allocated among the States for use in nonentitlement areas. The allocation for each State shall be</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>nonmetropolitan</quotedText>” wherever it appears and inserting in lieu thereof “<quotedText>nonentitlement</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Section 106(d) of such Act, as redesignated by subsection (b) of this section, is amended by striking out paragraphs (2) and (3) and inserting in lieu thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><chapeau>Amounts allocated under paragraph (1) shall be distributed to units of general local government located in nonentitlement areas of the State to carry out activities in accordance with the provisions of this title—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>by the State, consistent with the statement submitted under section 104(a); or <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 384.</p></sidenote></content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>by the Secretary, in any case described in subparagraph (B), for use by units of general local government in accordance with paragraph (3)(B).</content> </clause> <continuation class="indent0 firstIndent0 fontsize10">Notwithstanding any provision of this title, the Secretary shall make grants from amounts authorized for use in nonentitlement areas by the Department of Housing and Urban Development—Independent Agencies Appropriation Act, 1981, in accordance with the provisions <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3044">94 Stat. 3044</ref>.</p></sidenote>of this title which governed grants with respect to such amounts, as such provisions existed prior to the effective date of the Housing and Community Development Amendments of 1981. Any amounts under <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 384.</p></sidenote>the preceding sentence (except amounts for which preapplications have been approved by the Secretary prior to October 1, 1981, and which have been obligated by January 1, 1982) which are or become available for obligation after fiscal year 1981 shall be available for distribution in the State in which the grants from such amounts were made, by the State or by the Secretary, whichever is distributing the State allocation in the fiscal year in which such amounts are or become available.</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>The Secretary shall distribute amounts allocated under paragraph (1) where—</chapeau> <page identifier="/us/stat/95/390">95 STAT. 390</page> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the State has elected, in such manner and before such time as the Secretary may prescribe, not to distribute such amounts; or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the State has failed to submit the certifications described in subparagraph (C).</content> </clause> </subparagraph> <paragraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><chapeau>To receive and distribute amounts allocated under paragraph (1), the Governor must certify that the State, with respect to units of general local government in nonentitlement areas—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>engages or will engage in planning for community development activities;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>provides or will provide technical assistance to units of general local government in connection with community development programs;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>will provide, out of State resources, funds for community development activities in an amount which is at least 10 per centum of the amounts allocated for use in the State pursuant to paragraph (1); and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>has consulted with local elected officials from among units of general local government located in nonentitlement areas of that State in determining the method of distribution of funds required by subparagraph (A).</content> </clause> </paragraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>If the State receives and distributes such amounts, it shall be responsible for the administration of funds so distributed. The State shall pay from its own resources all administrative expenses incurred by the State in carrying out its responsibilities under this title, except that from the amounts received for distribution in nonentitlement areas, the State may deduct an amount not to exceed 50 per centum of the costs incurred by the State in carrying out such responsibilities. Amounts so deducted shall not exceed 2 per centum of the amount so received.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>If the Secretary distributes such amounts, the distribution shall be made in accordance with determinations of the Secretary pursuant to statements submitted and the other requirements of <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 384.</p></sidenote>section 104 (other than subsection (c)) and in accordance with regulations and procedures prescribed by the Secretary.</content></subparagraph> <paragraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><chapeau>Any amounts allocated for use in a State under this subsection <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 386.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5311">42 USC 5311</ref>.</p></sidenote>which become available as a result of actions under section 104(d) or 111 shall—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>in the case of actions against units of general local government in nonentitlement areas, be added to amounts available for distribution in the State in the fiscal year in which the amounts become so available; or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>in the case of actions against the State, be added to amounts available for distribution in the State in the succeeding fiscal year.</content> </clause> <continuation class="indent0 firstIndent0 fontsize10">Amounts reallocated under this subparagraph shall be available for distribution by the State or by the Secretary, whichever is distributing the State allocation in the fiscal year in which such reallocated amounts are added.</continuation> </paragraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>In computing amounts under paragraph (1), Indian tribes shall be excluded.”.</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 388.</p></sidenote> <content class="inline">Section 106(f), as redesignated by subsection (b) of this section, is amended by striking out “<quotedText>(1)</quotedText>” and all that follows through “106(e)” and inserting in lieu thereof “<quotedText>all basic grant entitlement amounts</quotedText>”.</content> </subsection> </section> <page identifier="/us/stat/95/391">95 STAT. 391</page> <section> <heading class="centered smallCaps">discretionary fund</heading><num value="305"><inline class="smallCaps">Sec</inline>. 305. </num><content>Section 107 of the Housing and Community Development Act of 1974 is amended to read as follows: <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5307">42 USC 5307</ref>.</p></sidenote> <quotedContent> <section> <heading class="centered smallCaps">“discretionary fund</heading><num value="107">“<inline class="smallCaps">Sec</inline>. 107. </num><subsection class="inline"><num value="a">(a) </num><content>Of the total amount approved in appropriation Acts under section 103 for each of the fiscal years 1982 and 1983, not more <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 384.</p></sidenote>than $60,000,000 for each of the fiscal years 1982 and 1983 may be set aside in a special discretionary fund for grants under subsection (b). Grants under this section are in addition to any other grants which may be made under this title to the same entities for the same purposes.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>From amounts set aside under subsection (a), the Secretary is authorized to make grants—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>in behalf of new communities assisted under title VII of the Housing and Urban Development Act of 1970 or title IV of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s4501">42 USC 4501</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3901">42 USC 3901</ref>.</p></sidenote>the Housing and Urban Development Act of 1968 or in behalf of new community projects assisted under title X of the National Housing Act which meet the eligibility standards set forth in <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1749aa">12 USC 1749aa</ref>.</p></sidenote>title VII of the Housing and Urban Development Act of 1970 and which were the subject of an application or preapplication under such title prior to January 14, 1975;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>in Guam, the Virgin Islands, American Samoa, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>to Indian tribes; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>to States, units of general local government, Indian tribes, <sidenote><p class="indent0 firstIndent0 fontsize8">Technical Assistance.</p></sidenote>or areawide planning organizations for the purpose of providing technical assistance in planning, developing, and administering assistance under this title, and to States and units of general local government for implementing special projects otherwise authorized under this title. The Secretary may also provide, directly or through contracts, technical assistance under this paragraph to such governmental units, or to a group designated by such a governmental unit for the purpose of assisting that governmental unit to carry out assistance under this title.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Amounts set aside for use under subsection (b) in any fiscal year but not used in that year shall remain available for use in subsequent fiscal years in accordance with the provisions of that subsection.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><content>Except as provided in paragraph (2), no grant may be made under this section or section 119 unless the applicant provides <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 392.</p></sidenote>satisfactory assurances that its program will be conducted and administered in conformity with Public Law 88–352 and Public Law 90–284. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2000a">42 USC 2000a note</ref>; <ref href="/us/stat/82/73">82 Stat. 73</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>No grant may be made to an Indian tribe under this section or section 119 unless the applicant provides satisfactory assurances that its program will be conducted and administered in conformity with title II of Public Law 90–284. The Secretary may waive, in connection <sidenote><p class="indent0 firstIndent0 fontsize8">Waiver.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s1301">25 USC 1301</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5309/5310">42 USC 5309, 5310</ref>.</p></sidenote>with grants to Indian tribes, the provisions of section 109 and section 110.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The Secretary may accept a certification from the applicant that it has complied with the requirements of paragraph (1) or (2), as appropriate.” .</content></paragraph> </subsection> </section> </quotedContent> </content> </section> <page identifier="/us/stat/95/392">95 STAT. 392</page> <section> <heading class="centered smallCaps">nondiscrimination</heading><num value="306"><inline class="smallCaps">Sec</inline>. 306. </num><content>Section 109(a) of the Housing and Community Development <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5309">42 USC 5309</ref>.</p></sidenote>Act of 1974 is amended by adding the following new sentence at the end thereof: “Any prohibition against discrimination on the basis <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s6101">42 USC 6101 note</ref>.</p></sidenote>of age under the Age Discrimination Act of 1975 or with respect to an otherwise qualified handicapped individual as provided in section 504 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s794">29 USC 794</ref>.</p></sidenote>of the Rehabilitation Act of 1973 shall also apply to any such program or activity.”.</content> </section> <section> <heading class="centered smallCaps">“transitional provisions</heading><num value="307"><inline class="smallCaps">Sec</inline>. 307. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5306">42 USC 5306 note</ref>.</p></sidenote> <chapeau class="inline">Any amounts appropriated for any fiscal year before fiscal year 1982 in a Department of Housing and Urban Development— Independent Agencies Appropriation Act or a Supplemental Appropriation Act under the head “<inline class="smallCaps">community development grants</inline>” which are or become available for obligation on or after October 1, 1981, shall remain available as provided by law, and shall be used in accordance with the following:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>funds authorized for use under section 106(b) of the Housing <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5306">42 USC 5306</ref>.</p></sidenote>and Community Development Act of 1974 (“such Act”) before October 1, 1981, shall be available for use as provided by section <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 388.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5307">42 USC 5307</ref>.</p></sidenote>106(c) of such Act as amended by this Act;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>funds authorized for use under section 107 of such Act before October 1, 1981, shall be available for use as provided by <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 391.</p></sidenote>section 107(a) of such Act as amended by this Act; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>funds authorized for use under section 106(c) or (e) of such Act before October 1, 1981, shall be available for use as provided <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 389.</p></sidenote>by section 106(d)(2)(A) of such Act as amended by this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Any grant or loan which, prior to the effective date of any provision of this part, was obligated and governed by any authority amended by any provision of this part shall continue to be governed by the provisions of such authority as they existed immediately before such effective date.</content> </subsection> </section> <section> <heading class="centered smallCaps">urban development action grants</heading><num value="308"><inline class="smallCaps">Sec</inline>. 308. </num><subsection class="inline"><num value="a">(a) </num><content>Section 119 of the Housing and Community Development <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5318">42 USC 5318</ref>.</p></sidenote>Act of 1974 is amended to read as follows: <quotedContent> <section> <heading class="centered smallCaps">“urban development action grants</heading><num value="119">“<inline class="smallCaps">Sec</inline>. 119. </num><subsection class="inline"><num value="a">(a) </num><content>The Secretary is authorized to make urban development action grants to cities and urban counties which are experiencing severe economic distress to help stimulate economic development activity needed to aid in economic recovery. Of the total amount <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5303">42 USC 5303</ref>.</p></sidenote>approved in appropriation Acts under section 103 for each of the fiscal years 1982 and 1983, not more than $500,000,000 shall be available for each of the fiscal years 1982 and 1983 for grants under this section.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Urban development action grants shall be made only to cities and urban counties which have, in the determination of the Secretary, demonstrated results in providing housing for low- and moderate-income persons and in providing equal opportunity in housing and employment for low- and moderate-income persons and <sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote>members of minority groups. The Secretary shall issue regulations establishing criteria in accordance with the preceding sentence and setting forth minimum standards for determining the level of economic distress of cities and urban counties for eligibility for such grants. These standards shall take into account factors such as the <page identifier="/us/stat/95/393">95 STAT. 393</page>age of housing; the extent of poverty; the extent of population lag; growth of per capita income; and, where data are available, the extent of unemployment and job lag.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>A city or urban county which fails to meet the minimum standards established pursuant to paragraph (1) shall be eligible for assistance under this section if it meets the requirements of the first sentence of such paragraph and—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>in the case of a city with a population of fifty thousand persons or more or an urban county, contains an area (i) composed of one or more contiguous census tracts, enumeration districts, or block groups, as defined by the United States Bureau of the Census, having at least a population of ten thousand persons or 10 per centum of the population of the city or urban county; (ii) in which at least 70 per centum of the residents have incomes below 80 per centum of the median income of the city or urban county; and (iii) in which at least 30 per centum of the residents have incomes below the national poverty level; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>in the case of a city with a population of less than fifty thousand persons, contains an area (i) composed of one or more contiguous census tracts, enumeration districts, or block groups or other areas defined by the United States Bureau of the Census or for which data certified by the United States Bureau of the Census are available having at least a population of two thousand five hundred persons or 10 per centum of the population of the city, whichever is greater; (ii) in which at least 70 per centum of the residents have incomes below 80 per centum of the median income of the city; and (iii) in which at least 30 per centum of the residents have incomes below the national poverty level.</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">The Secretary shall use up to, but not more than, 20 per centum of the funds appropriated for use in any fiscal year under this section for the purpose of making grants to cities and urban counties eligible under this paragraph.</continuation> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><chapeau>Applications for assistance under this section shall— <sidenote><p class="indent0 firstIndent0 fontsize8">Contents.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>in the case of an application for a grant under subsection (b)(2), include documentation of grant eligibility in accordance with the standards described in that subsection;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>set forth the activities for which assistance is sought, including (A) an estimate of the costs and general location of the activities; (B) a summary of the public and private resources which are expected to be made available in connection with the activities, including how the activities will take advantage of unique opportunities to attract private investment; and (C) an analysis of the economic benefits which the activities are expected to produce;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>contain a certification satisfactory to the Secretary that the applicant, prior to submission of its application, (A) has held public hearings to obtain the views of citizens, particularly residents of the area in which the proposed activities are to be carried out, and (B) has analyzed the impact of these proposed activities on the residents, particularly those of low and moderate income, of the residential neighborhood, and on the neighborhood in which they are to be carried out; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>contain a certification satisfactory to the Secretary that the applicant, prior to submission of its application, (A) has identified all properties, if any, which are included on the National Register of Historic Places and which, as determined by the applicant, will be affected by the project for which the application is made; (B) has identified all other properties, if any, <page identifier="/us/stat/95/394">95 STAT. 394</page>which will be affected by such project and which, as determined by the applicant, may meet the criteria established by the Secretary of the Interior for inclusion on such Register, together with documentation relating to the inclusion of such properties on the Register; (C) has determined the effect, as determined by the applicant, of the project on the properties identified pursuant to clauses (A) and (B); and (D) will comply with the requirements <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1620">94 Stat. 1620</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5320">42 USC 5320</ref>.</p><p class="indent0 firstIndent0 fontsize8">Selection criteria, establishment.</p></sidenote>of section 121.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><content>Except in the case of a city or urban county eligible under subsection (b)(2), the Secretary shall establish selection criteria for grants under this section which must include (A) as the primary criterion, the comparative degree of economic distress among applicants, as measured (in the case of a metropolitan city or urban county) by the differences in the extent of growth lag, the extent of poverty, and the adjusted age of housing in the metropolitan city or urban county; (B) other factors determined to be relevant by the Secretary in assessing the comparative degree of economic deterioration in cities and urban counties; and (C) at least the following other criteria: demonstrated performance of the city or urban county in housing and community development programs; the extent to which the grant will stimulate economic recovery by leveraging private investment; the number of permanent jobs to be created and their relation to the amount of grant funds requested; the proportion of permanent jobs accessible to lower income persons and minorities, including persons who are unemployed; the impact of the proposed activities on the fiscal base of the city or urban county and its relation to the amount of grant funds requested; the extent to which State or local government funding or special economic incentives have been committed; and the feasibility of accomplishing the proposed activities in a timely fashion within the grant amount available.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>For the purpose of making grants with respect to areas described in subsection (b)(2), the Secretary shall establish selection criteria, which must include (A) factors determined to be relevant by the Secretary in assessing the comparative degree of economic deterioration among eligible areas, and (B) such other criteria as the Secretary may determine, including at a minimum the criteria listed in paragraph (1)(C) of this subsection.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">City or urban county, eligibility.</p></sidenote> <chapeau class="inline">The Secretary may not approve any grant to a city or urban county eligible under subsection (b)(2) unless—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the grant will be used in connection with a project located in an area described in subsection (b)(2), except that the Secretary may waive this requirement where the Secretary determines (A) that there is no suitable site for the project within that area, (B) the project will be located directly adjacent to that area, and (C) the project will contribute substantially to the economic development of that area;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the city or urban county has demonstrated to the satisfaction of the Secretary that basic services supplied by the city or urban county to the area described in subsection (b)(2) are at least equivalent, as measured by per capita expenditures, to those supplied to other areas within the city or urban county which are similar in population size and physical characteristics and which have median incomes above the median income for the city or urban county;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>the grant will be used in connection with a project which will directly benefit the low- and moderate-income families and individuals residing in the area described in subsection (b)(2); and</content></paragraph> <page identifier="/us/stat/95/395">95 STAT. 395</page> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>the city or urban county makes available, from its own funds or from funds received from the State or under any Federal program which permits the use of financial assistance to meet the non-Federal share requirements of Federal grant-in-aid programs, an amount equal to 20 per centum of the grant to be available under this section to be used in carrying out the activities described in the application.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><content>Activities assisted under this section may include such activities, in addition to those authorized under section 105(a), as the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5305">42 USC 5305</ref>.</p></sidenote>Secretary determines to be consistent with the purposes of this section.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><content>The Secretary shall, at least on an annual basis, make reviews <sidenote><p class="indent0 firstIndent0 fontsize8">Reviews and audits.</p></sidenote>and audits of recipients of grants under this section as necessary to determine the progress made in carrying out activities substantially in accordance with approved plans and timetables. The Secretary may adjust, reduce, or withdraw grant funds, or take other action as appropriate in accordance with the findings of these reviews and audits, except that funds already expended on eligible activities under this title shall not be recaptured or deducted from future grants made to the recipient.</content> </subsection> <subsection class="indent0 fontsize10"><num value="h">“(h) </num><content>No assistance may be provided under this section for projects <sidenote><p class="indent0 firstIndent0 fontsize8">Industrial or commercial plants or facilities, assistance.</p></sidenote>intended to facilitate the relocation of industrial or commercial plants or facilities from one area to another, unless the Secretary finds that the relocation does not significantly and adversely affect the unemployment or economic base of the area from which the industrial or commercial plant or facility is to be relocated.</content> </subsection> <subsection class="indent0 fontsize10"><num value="i">“(i) </num><content>Not less than 25 per centum of the funds made available for grants under this section shall be used for cities with populations of less than fifty thousand persons which are not central cities of a metropolitan statistical area.</content> </subsection> <subsection class="indent0 fontsize10"><num value="j">“(j) </num><content>A grant may be made under this section only where the Secretary determines that there is a strong probability that (1) the non-Federal investment in the project would not be made without the grant, and (2) the grant would not substitute for non-Federal funds which are otherwise available to the project.</content> </subsection> <subsection class="indent0 fontsize10"><num value="k">“(k) </num><content>In making grants under this section, the Secretary shall take such steps as the Secretary deems appropriate to assure that the amount of the grant provided is the least necessary to make the project feasible.</content> </subsection> <subsection class="indent0 fontsize10"><num value="l">“(l) </num><content>For purposes of this section, the Secretary may reduce or waive the requirement in section 102(a)(5)(B)(ii) that a town or township be <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5302">42 USC 5302</ref>.</p></sidenote>closely settled.</content> </subsection> <subsection class="indent0 fontsize10"><num value="m">“(m) </num><content>In the case of any application which identifies any property in accordance with subsection (c)(4)(B), the Secretary may not commit funds with respect to an approved application unless the applicant has certified to the Secretary that the appropriate State historic preservation officer and the Secretary of the Interior have been provided an opportunity to take action in accordance with the provisions of section 121(b). <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1620">94 Stat. 1620</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5320">42 USC 5320</ref>.</p><p class="indent0 firstIndent0 fontsize8">“City.”</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="n">“(n) </num><paragraph class="inline"><num value="1">(1) </num><content>For the purposes of this section, the term ‘city’ includes Guam, the Virgin Islands, and Indian tribes.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary may not approve a grant to an Indian tribe under this section unless the tribe (A) is located on a reservation or in an Alaskan Native Village, and (B) is an eligible recipient under the State and Local Fiscal Assistance Act of 1972. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s1221">31 USC 1221 note</ref>.</p></sidenote></content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="o">“(o) </num><content>If no amounts are set aside under, or amounts are precluded from being appropriated for this section for fiscal years after fiscal year 1983, any amount which is or becomes available for use under <page identifier="/us/stat/95/396">95 STAT. 396</page>this section after fiscal year 1983 shall be added to amounts appropriated <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5303">42 USC 5303</ref>.</p></sidenote>under section 103.”.</content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1620">94 Stat. 1620</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5320">42 USC 5320</ref>.</p></sidenote> <content class="inline">Section 121 of such Act is amended by striking out “<quotedText>subsection (c)(7)(B)</quotedText>” in subsection (b) and inserting in lieu thereof “<quotedText>subsection (c)(4)(B)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5318">42 USC 5318 note</ref>.</p><p class="indent0 firstIndent0 fontsize8">Rules and regulations.</p></sidenote> <content class="inline">The amendments made by subsections (a) and (b) shall become effective on the effective date of regulations implementing such subsections. As soon as practicable, but not later than January 1, 1982, the Secretary shall issue such final rules and regulations as the Secretary determines are necessary to carry out such subsections.</content> </subsection> </section> <section> <heading class="centered smallCaps">community development technical amendments</heading><num value="309"><inline class="smallCaps">Sec</inline>. 309. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 102(a) of the Housing and Community Development <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5302">42 USC 5302</ref>.</p></sidenote>Act of 1974 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out paragraphs (18) and (19);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting immediately after paragraph (6) the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">“Nonentitlement area.”</p></sidenote> <content class="inline">The term ‘nonentitlement area’ means an area which is not a metropolitan city or part of an urban county.”; and</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by redesignating the remaining paragraphs accordingly.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 102(c) of such Act is amended by striking out “<quotedText>a Community Development Program in whole or in part</quotedText>” and inserting in lieu thereof “<quotedText>activities assisted under this title</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1614">94 Stat. 1614</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5302">42 USC 5302</ref>.</p></sidenote> <chapeau class="inline">The first sentence of section 102(d) of such Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>103(a)(1)</quotedText>” and inserting in lieu thereof “<quotedText>103</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>unless the application by the urban county is disapproved or withdrawn prior to or during such three-year period</quotedText>” and inserting in lieu thereof “<quotedText>unless the urban county does not receive a grant for any year during such three-year period</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1615">94 Stat. 1615</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5304">42 USC 5304</ref>.</p></sidenote> <content class="inline">Section 104(j) of such Act is amended by striking out “<quotedText>planning a joint community development program, meeting the application requirements of this section, and implementing such program</quotedText>” and inserting in lieu thereof “<quotedText>submitting a statement under section 104(a) and carrying out activities under this title</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5305">42 USC 5305</ref>.</p></sidenote> <content class="inline">The caption of section 105 of such Act is amended to read as follows: “<inline class="smallCaps">eligible activities</inline>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><chapeau>Section 105(a) of such Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out the first sentence and “<quotedText>These activities</quotedText>” in the second sentence and inserting in lieu thereof “<quotedText>Activities assisted under this title</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>program</quotedText>” in paragraph (6);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out “<quotedText>the Community Development Program</quotedText>” in paragraph (9) and inserting in lieu thereof “<quotedText>activities assisted under this title</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by striking out “<quotedText>to the community development program</quotedText>” in paragraph (11);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>by striking out “<quotedText>(as specifically</quotedText>” and all that follows through “104(a)(1)” in paragraph (14) and inserting in lieu thereof “<quotedText>which are carried out by public or private nonprofit entities</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1618">94 Stat. 1618</ref>.</p></sidenote> <content class="inline">by striking out “<quotedText>(as specifically described in the application submitted pursuant to section 104)</quotedText>” in paragraph (15).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>Section 105(b) of such Act is amended by striking out “<quotedText>a grant</quotedText>” and inserting in lieu thereof “<quotedText>assistance</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1615">94 Stat. 1615</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5306">42 USC 5306</ref>.</p></sidenote> <content class="inline">The second sentence of section 106(b)(4) of such Act is amended by striking out “<quotedText>for a grant under subsection (c) or (e)</quotedText>” and inserting <page identifier="/us/stat/95/397">95 STAT. 397</page>in lieu thereof the following: “<quotedText>to receive assistance under subsection (d)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num><content>Section 108(d)(2) of such Act is amended by striking out <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5308">42 USC 5308</ref>.</p></sidenote>“<quotedText>approved or</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="j">(j) </num><content>The first sentence of section 110 of such Act is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5310">42 USC 5310</ref>.</p></sidenote>striking out “<quotedText>grants</quotedText>” and inserting in lieu thereof “<quotedText>assistance</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="k">(k) </num><content>The first sentence of section 112(a) of such Act is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5312">42 USC 5312</ref>.</p></sidenote>striking out “<quotedText>103(a)</quotedText>” and inserting in lieu thereof “<quotedText>103</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="l">(l) </num><content>Section 113(a)(2) of such Act is amended by striking out “<quotedText>as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5813">42 USC 5813</ref>.</p></sidenote>approved by the Secretary</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="m">(m) </num><content>Section 116(b) of such Act is amended to read as follows: <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1622">94 Stat. 1622</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5316">42 USC 5316</ref>.</p></sidenote> <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>In the case of funds available for any fiscal year, the Secretary shall not consider any statement under section 104(a), unless such statement is submitted on or prior to such date (in that fiscal year) as the Secretary shall establish as the final date for submission of statements in that year.”.</content> </subsection> </quotedContent> </content> </subsection> </section> <section> <heading class="centered smallCaps">community development miscellaneous amendments</heading><num value="310"><inline class="smallCaps">Sec</inline>. 310. </num><subsection class="inline"><num value="a">(a) </num><content>Section 102(a)(4) of the Housing and Community Development Act of 1974 is amended by inserting the following before <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5302">42 USC 5302</ref>.</p></sidenote>the period at the end thereof: “or until September 30, 1982, whichever is later”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 102(a)(6) of such Act is amended by inserting at the end thereof the following: “<quotedText>Any urban county (A) which qualified as an urban county in fiscal year 1981, (B) the population of which includes all of the population of the county (other than the population of metropolitan cities therein), and (C) the population of which for fiscal year 1982 falls below the amount required by clause (B) of the preceding sentence by reason of the 1980 decennial census shall be considered as meeting the population requirements of such clause for fiscal year 1982 and shall not be subject to the provisions of section 102(d) in that fiscal year.</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">rehabilitation loans</heading><num value="311"><inline class="smallCaps">Sec</inline>. 311. </num><subsection class="inline"><num value="a">(a) </num><content>Subsection (a)(1)(D) of section 312 of the Housing Act of 1964 is amended by striking out “<quotedText>an approved community development <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1452b">42 USC 1452b</ref>.</p></sidenote>program</quotedText>” and inserting in lieu thereof “<quotedText>community development activities</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Subsection (d) of such section is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1622">94 Stat. 1622</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>and</quotedText>” after “<quotedText>October 1, 1979,</quotedText>” in the first sentence;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>and not to exceed $129,000,000 for the fiscal year beginning on October 1, 1981,</quotedText>” in the first sentence; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out the last sentence.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Subsection (h) of such section is amended by striking out “<quotedText>1982</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>1983</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Subsection (j)(1) of such section is amended by striking out the second sentence.</content> </subsection> </section> <section> <heading class="centered smallCaps">urban homesteading</heading><num value="312"><inline class="smallCaps">Sec</inline>. 312. </num><content>The first sentence of section 810(h) of the Housing and Community Development Act of 1974 is amended by striking out <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1706e">12 USC 1706e</ref>.</p></sidenote>“<quotedText>and not to exceed $26,000,000 for the fiscal year 1979</quotedText>” and inserting in lieu thereof “<quotedText>not to exceed $26,000,000 for the fiscal year 1979, and not to exceed $13,467,000 for the fiscal year 1983</quotedText>”.</content> </section> <page identifier="/us/stat/95/398">95 STAT. 398</page> <section> <heading class="centered smallCaps">repealers</heading><num value="313"><inline class="smallCaps">Sec</inline>. 313. </num><subsection class="inline"><num value="a">(a) </num><content>Title VII of the Housing and Community Development <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8121">42 USC 8121 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1662">94 Stat. 1662</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s461">40 USC 461</ref>.</p></sidenote>Amendments of 1978 is hereby repealed.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 701 of the Housing Act of 1954 is hereby repealed.</content> </subsection> </section> <section> <heading class="centered smallCaps">neighborhood reinvestment corporation</heading><num value="314"><inline class="smallCaps">Sec</inline>. 314. </num><chapeau>Section 608(a) of the Neighborhood Reinvestment Corporation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1645">94 Stat. 1645</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8107">42 USC 8107</ref>.</p></sidenote>Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>and</quotedText>” after “<quotedText>1980,</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting the following before the period at the end thereof: “<quotedText>, and not to exceed $14,950,000 for fiscal year 1982</quotedText>”.</content></paragraph> </section> <section> <heading class="centered smallCaps">report on block grant program</heading><num value="315"><inline class="smallCaps">Sec</inline>. 315. </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote> <chapeau class="inline">Not later than 270 days after the date of enactment of this Act, the Secretary of Housing and Urban Development shall report to the Congress on administrative and legislative steps that can be taken to—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>require all grantees to concentrate their block grant funds in distressed geographic areas small enough so that visible improvements can be achieved in a reasonable time period and to ensure that claimed benefits to low- and moderate-income persons are, in actuality, occurring;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>reduce the broad list of activities currently eligible so that funds can be focused on those activities which meet the cities’ most urgent revitalization needs;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>develop overall income eligibility requirements for recipients of block grant supported rehabilitation; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>limit eligible rehabilitation work to that which is essential to restore the housing unit to a decent, safe, and sanitary or energy efficient condition, specifically prohibiting nonessential and luxury items, so that more homes needing basic repairs can be rehabilitated.</content></paragraph> </section> </part> <part><num value="2">PART 2—</num><heading>HOUSING ASSISTANCE PROGRAMS</heading> <section> <heading class="centered smallCaps">housing authorizations</heading><num value="321"><inline class="smallCaps">Sec</inline>. 321. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1624">94 Stat. 1624</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437c">42 USC 1437c</ref>.</p></sidenote> <content class="inline">The first sentence of section 5(c)(1) of the United States Housing Act of 1937 is amended by inserting immediately after “<quotedText>1980</quotedText>” the following: “<quotedText>, and by $906,985,000 on October 1, 1981</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The second sentence of section 5(c)(1) of such Act is amended by striking out “<quotedText>Acts;</quotedText>” and all that follows through the period and inserting in lieu thereof the following: “<quotedText>Acts. In addition, the aggregate amount which may be obligated over the duration of the contracts may not exceed $31,200,000,000 with respect to the additional authority provided on October 1, 1980, and $18,087,370,000 with respect to the additional authority provided on October 1, 1981.</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>Section 5(c) of such Act is amended by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>redesignating paragraphs (3), (4), and (5) as paragraphs (4), (5), and (6), respectively; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>inserting immediately after paragraph (2) the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>Of the additional authority approved in appropriation Acts and made available on October 1, 1981, the Secretary shall make available at least $75,000,000 for assistance to projects under section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1625">94 Stat. 1625</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437l">42 USC 1437<i>l</i></ref>.</p></sidenote>14.</content></subparagraph> <page identifier="/us/stat/95/399">95 STAT. 399</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>Of the balance of the additional authority referred to in the preceding subparagraph which remains after deducting the amount to be provided for assistance to projects under section 14, the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1625">94 Stat. 1625</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437l">42 USC 1437<i>l</i></ref>.</p></sidenote>Secretary shall allocate such authority for use in different areas and communities in accordance with section 213(d) of the Housing and Community Development Act of 1974, except that on a national basis <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1439">42 USC 1439</ref>.</p></sidenote>the Secretary may not enter into contracts aggregating—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>more than 45 per centum of such balance for existing units assisted under this Act; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>more than 55 per centum of such balance for newly constructed and substantially rehabilitated units assisted under this Act.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>After making allocations referred to in subparagraph (B), the <sidenote><p class="indent0 firstIndent0 fontsize8">General local government preferences, accommodation.</p></sidenote>Secretary shall, to the extent allowable within the percentage limitations contained in such subparagraph and within the available contract and budget authority, accommodate the preferences of units of general local government, which preferences shall be established after consultation with the appropriate public housing agencies, regarding (i) the mix among newly constructed, substantially rehabilitated, existing, or moderately rehabilitated units; (ii) the programs under which assistance is to be provided; and (iii) the extent to which such allocation should be used for comprehensive improvement assistance under section 14.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><chapeau>Section 9(c) of such Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437g">42 USC 1437g</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>and</quotedText>” after “<quotedText>on or after October 1, 1979,</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting before the period at the end thereof the following: “<quotedText>, and not to exceed $1,500,000,000 on or after October 1, 1981</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Section 213(d) of the Housing and Community Development Act <sidenote><p class="indent0 firstIndent0 fontsize8">Financial assistance, retention.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1439">42 USC 1439</ref>.</p></sidenote>of 1974 is amended by adding at the end thereof a new paragraph to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><chapeau>Notwithstanding any other provision of law, with respect to fiscal years beginning after September 30, 1981, the Secretary of Housing and Urban Development may not retain more than 15 per centum of the financial assistance which becomes available under programs described in subsection (a)(1) during any fiscal year. Any <sidenote><p class="indent0 firstIndent0 fontsize8">Allocation use.</p></sidenote>such financial assistance which is retained shall be available for subsequent allocation to specific areas and communities, and may only be used for—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>unforeseeable housing needs, especially those brought on by natural disasters or special relocation requirements;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>support for the needs of the handicapped or for minority enterprise;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>providing for assisted housing as a result of the settlement of litigation;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>small research and demonstration projects;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>lower-income housing needs described in housing assistance plans, including activities carried out under areawide housing opportunity plans; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num><content>innovative housing programs or alternative methods for meeting lower-income housing needs approved by the Secretary, including assistance for infrastructure in connection with the Indian Housing Program.”.</content></subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>The first sentence of section 201(h) of the Housing and Community Development Amendments of 1978 is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715z–1a">12 USC 1715z–1a</ref>.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>and</quotedText>” after “<quotedText>the fiscal year 1980,</quotedText>”;</content></subparagraph> <page identifier="/us/stat/95/400">95 STAT. 400</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by inserting before the period at the end thereof the following: “<quotedText>, and not to exceed $4,000,000 for the fiscal year 1982</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out the comma immediately following “<quotedText>Act</quotedText>” and inserting in lieu thereof a closed parenthesis.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Section 201 of the Housing and Community Development <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715Z–1/1715z–1a">12 USC 1715Z–1 and note, 1715z–1a</ref>.</p></sidenote>Amendments of 1978 is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by redesignating subsections (h) and (i) as subsections (j) and (k), respectively; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715z–1a">12 USC 1715z–1a</ref>.</p></sidenote> <content class="inline">by inserting the following new subsection after subsection (g): <quotedContent> <subsection class="indent0 fontsize10"><num value="h">“(h) </num><content>The Secretary may not use any of the assistance available under this section during any fiscal year beginning on or after October 1, 1981, to supplement any contract to make rental assistance payments which was made pursuant to section 101 of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1701s">12 USC 1701s</ref>, <ref href="/us/usc/t42/s1451">42 USC 1451</ref>.</p></sidenote>Housing and Urban Development Act of 1965.”.</content> </subsection> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The third sentence of section 236(f)(3) of the National Housing <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 403.</p></sidenote>Act, as redesignated by section 322(f)(7) of this part, is amended by striking out “<quotedText>September 30, 1981</quotedText>” and inserting in lieu thereof “<quotedText>September 30, 1982</quotedText>”.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">tenant rental payments</heading><num value="322"><inline class="smallCaps">Sec</inline>. 322. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437a">42 USC 1437a</ref>.</p></sidenote> <content class="inline">Section 3 of the United States Housing Act of 1937 is amended to read as follows: <quotedContent> <section> <heading class="centered smallCaps">“rental payments; definitions</heading><num value="3">“<inline class="smallCaps">Sec</inline>. 3. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Dwelling units assisted under this Act shall be rented only to families who are lower income families at the time of their initial occupancy of such units. A family shall pay as rent for a dwelling unit assisted under this Act the highest of the following amounts, rounded to the nearest dollar:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>30 per centum of the family’s monthly adjusted income;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>10 per centum of the family’s monthly income; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>if the family is receiving payments for welfare assistance from a public agency and a part of such payments, adjusted in accordance with the family’s actual housing costs, is specifically designated by such agency to meet the family’s housing costs, the portion of such payments which is so designated.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>When used in this Act:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>The term ‘lower income housing’ means decent, safe, and sanitary dwellings assisted under this Act. The term ‘public housing’ means lower income housing, and all necessary appurtenances thereto, assisted under this Act other than under section 8. When used in reference to public housing, the term ‘lower income housing project’ or ‘project’ means (A) housing developed, acquired, or assisted by a public housing agency under this Act, and (B) the improvement of any such housing.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The term ‘lower income families’ means those families whose incomes do not exceed 80 per centum of the median income for the area, as determined by the Secretary with adjustments for smaller and larger families, except that the Secretary may establish income ceilings higher or lower than 80 per centum of the median for the area on the basis of the Secretary’s findings that such variations are necessary because of prevailing levels of construction costs or unusually high or low family incomes. The term ‘very low-income families’ means lower income families whose incomes do not exceed 50 per <page identifier="/us/stat/95/401">95 STAT. 401</page>centum of the median family income for the area, as determined by the Secretary with adjustments for smaller and larger families.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The term ‘families’ includes families consisting of a single person in the case of (A) a person who is at least sixty-two years of age or is under a disability as defined in section 223 of the Social Security Act or in section 102 of the Developmental Disabilities Services and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s423">42 USC 423</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s6001">42 USC 6001</ref>.</p></sidenote>Facilities Construction Amendments of 1970, or is handicapped, (B) a displaced person, (C) the remaining member of a tenant family, and (D) other single persons in circumstances described in regulations of the Secretary. In no event shall more than 15 per centum of the units under the jurisdiction of any public housing agency be occupied by single persons under clause (D). In determining priority for admission to housing under this Act, the Secretary shall give preference to those single persons who are elderly, handicapped, or displaced before those eligible under clause (D). The term ‘elderly families’ means families whose heads (or their spouses), or whose sole members, are persons described in clause (A). A person shall be considered handicapped if such person is determined, pursuant to regulations issued by the Secretary, to have an impairment which is expected to be of long-continued and indefinite duration, substantially impedes such person’s ability to live independently, and is of such a nature that such ability could be improved by more suitable housing conditions. The term ‘displaced person’ means a person displaced by governmental action, or a person whose dwelling has been extensively damaged or destroyed as a result of a disaster declared or otherwise formally recognized pursuant to Federal disaster relief laws. Notwithstanding the preceding provisions of this subsection, the term ‘elderly families’ includes two or more elderly, disabled, or handicapped individuals living together, or one or more such individuals living with one or more persons determined under regulations of the Secretary to be essential to their care or well being.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>The term ‘income’ means income from all sources of each member of the household, as determined in accordance with criteria prescribed by the Secretary.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>The term ‘adjusted income’ means the income which remains after excluding such amounts or types of income as the Secretary may prescribe. In determining amounts to be excluded from income, the Secretary may, in the Secretary’s discretion, take into account the number of minor children in the household and such other factors as the Secretary may determine are appropriate.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>The term ‘public housing agency’ means any State, county, municipality, or other governmental entity or public body (or agency or instrumentality thereof) which is authorized to engage in or assist in the development or operation of lower income housing.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>The term ‘State includes the several States, the District of Columbia, the Commonwealth of Puerto Rico, the territories and possessions of the United States, the Trust Territory of the Pacific Islands, and Indian tribes, bands, groups, and Nations, including Alaska Indians, Aleuts, and Eskimos, of the United States.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><content>The term ‘Secretary’ means the Secretary of Housing and Urban Development.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><chapeau>When used in reference to public housing:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>The term ‘development’ means any or all undertakings necessary for planning, land acquisition, demolition, construction, or equipment, in connection with a lower income housing project. The term ‘development cost’ comprises the costs incurred by a public housing agency in such undertakings and their necessary financing (including the payment of carrying charges), and in otherwise carry-<page identifier="/us/stat/95/402">95 STAT. 402</page>ing out the development of such project. Construction activity in connection with a lower income housing project may be confined to the reconstruction, remodeling, or repair of existing buildings.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The term ‘operation’ means any or all undertakings appropriate for management, operation, services, maintenance, security (including the cost of security personnel), or financing in connection with a lower income housing project. The term also means the financing of tenant programs and services for families residing in lower income housing projects, particularly where there is maximum feasible participation of the tenants in the development and operation of such tenant programs and services. As used in this paragraph, the term ‘tenant programs and services’ includes the development and maintenance of tenant organizations which participate in the management of lower income housing projects; the training of tenants to manage and operate such projects and the utilization of their services in project management and operation; counseling on household management, housekeeping, budgeting, money management, child care, and similar matters; advice as to resources for job training and placement, education, welfare, health, and other community services; services which are directly related to meeting tenant needs and providing a wholesome living environment; and referral to appropriate agencies in the community when necessary for the provision of such services. To the maximum extent available and appropriate, existing public and private agencies in the community shall be used for the provision of such services.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The term ‘acquisition cost’ means the amount prudently required to be expended by a public housing agency in acquiring property for a lower income housing project.”.</content></paragraph> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437b/1437c/1437g/1437i">42 USC 1437b, 1437c, 1437g, 1437i</ref>.</p></sidenote> <content class="inline">Sections 4, 5, 9, and 11 of such Act are amended by striking out “<quotedText><inline class="smallCaps">low-income</inline></quotedText>” where it appears in the caption accompanying each such section and by inserting in lieu thereof “<quotedText><inline class="smallCaps">low-income</inline></quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437/1437b–1437d/1437g/1437i/1437j">42 USC 1437, 1437b–1437d, 1437g, 1437i, 1437j</ref>; <ref href="/us/stat/94/1625">94 Stat. 1625</ref>, <ref href="/us/usc/t42/s1437l">42 USC 1437<i>l</i></ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437d">42 USC 1437d</ref>.</p></sidenote> <content class="inline">Sections 2, 4, 5, 6, 9, 11, 12, and 14 of such Act are amended by striking out “<quotedText>low income</quotedText>” and “low-income” wherever they appear and inserting in lieu thereof “<quotedText>lower income</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Section 6(c)(2) of such Act is amended by striking out the phrase “<quotedText>at intervals of two years (or at shorter intervals where the Secretary deems it desirable)</quotedText>” and inserting in lieu thereof “<quotedText>no less frequently than annually</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f</ref>.</p></sidenote> <chapeau class="inline">Section 8 of such Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out paragraph (3) of subsection (c) and inserting in lieu thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The amount of the monthly assistance payment with respect to any dwelling unit shall be the difference between the maximum monthly rent which the contract provides that the owner is to receive for the unit and the rent the family is required to pay under section <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 400.</p></sidenote>3(a) of this Act. Reviews of family income shall be made no less frequently than annually.”;</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out paragraph (7) of subsection (c) and redesignating paragraph (8) of such subsection as paragraph (7);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out paragraphs (1), (2), and (3) of subsection (f) and redesignating paragraphs (4), (6), and (6) of such subsection as paragraphs (1), (2), and (3), respectively;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by striking out “<quotedText>The provisions of section 3(1), 5(e), and 6</quotedText>” in subsection (h) and inserting in lieu thereof “<quotedText>Sections 5(e) and 6</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>by striking out the comma after the word “<quotedText>Act</quotedText>” in subsection (h); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>by striking out “<quotedText>25 per centum of one-twelfth of the annual income of such family</quotedText>” in paragraph (3) of subsection (j) and <page identifier="/us/stat/95/403">95 STAT. 403</page>inserting in lieu thereof “<quotedText>the rent the family is required to pay under section 3(a) of this Act</quotedText>”. <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 400.</p></sidenote></content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><chapeau>Section 236 of the National Housing Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715z–1">12 USC 1715z–1</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>two years</quotedText>” in subsection (e) and inserting in lieu thereof “<quotedText>one year</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>25 per centum of the tenant’s income</quotedText>” in the second sentence of subsection (f)(1) and inserting in lieu thereof “<quotedText>30 per centum of the tenant’s adjusted income</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out clause (ii) in the third sentence of subsection (f)(1) and inserting in lieu thereof the following: <quotedContent> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>to permit the charging of a rental for such dwelling units at such an amount less than 30 per centum of a tenant’s adjusted income as the Secretary determines represents a proportionate decrease for the utility charges to be paid by such tenant, but in no case shall such rental be lower than 25 per centum of a tenant’s adjusted income.”</content> </clause> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by striking out “<quotedText>25 per centum of their income</quotedText>” in paragraph (2) of subsection (f) and inserting in lieu thereof “<quotedText>30 per centum of their adjusted income</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>by striking out “<quotedText>25 per centum of the tenant’s income</quotedText>” in paragraph (2) of subsection (f) and inserting in lieu thereof “the highest of the following amounts, rounded to the nearest dollar: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>30 per centum of the tenant’s monthly adjusted income;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>10 per centum of the tenant’s monthly income; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>if the family is receiving payments for welfare assistance from a public agency and a part of such payments, adjusted in accordance with the family’s actual housing costs, is specifically designated by such agency to meet the family’s housing costs, the portion of such payments which is so designated”;</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>by striking out the third sentence in paragraph (2) of subsection (f);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>by striking out subparagraph (A) of subsection (f)(3) and redesignating subsection (f)(3)(B) as subsection (f)(3); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>by striking out subsection (m) and inserting in lieu thereof the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="m">“(m) </num><content>For the purpose of this section the term ‘income’ means income from all sources of each member of the household, as determined in accordance with criteria prescribed by the Secretary. In determining amounts to be excluded from income, the Secretary may, in the Secretary’s discretion, take into account the number of minor children in the household and such other factors as the Secretary may determine are appropriate.”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><chapeau>Section 101 of the Housing and Urban Development Act of 1965 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1701s">12 USC 1701s</ref>, <ref href="/us/usc/t42/s1451">42 USC 1451</ref>.</p></sidenote>is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out paragraph (2) in subsection (c) and inserting in lieu thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>‘income’ means income from all sources of each member of the household, as determined in accordance with criteria prescribed by the Secretary. In determining amounts to be excluded from income, the Secretary may, in the Secretary’s discretion, take into account the number of minor children in the household and such other factors as the Secretary may determine are appropriate.”;</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out the first sentence of subsection (d) and inserting in lieu thereof the following: “The amount of the annual payment with respect to any dwelling unit shall be the <page identifier="/us/stat/95/404">95 STAT. 404</page>lesser of (1) 70 per centum of the fair market rent, or (2) the amount by which the fair market rental for such unit exceeds 30 per centum of the tenant’s adjusted income.”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out “<quotedText>, except the elderly, at intervals of two years (or at shorter intervals in cases where the Secretary may deem it desirable)</quotedText>” in paragraph (2) of subsection (e), and by inserting in lieu thereof “<quotedText>no less frequently than annually</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><chapeau>Title II of the Housing and Community Development Amendments of 1979 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437a">42 USC 1437a note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1701s">12 USC 1701s note</ref>.</p><p class="indent0 firstIndent0 fontsize8">Rent payments, determination.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437a">42 USC 1437a note</ref>.</p></sidenote> <content class="inline">by striking out subsection (c) in section 202; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out subsection (c) in section 203.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num><paragraph class="inline"><num value="1">(1) </num><content>In determining the rent to be paid by tenants who are occupying housing assisted under the authorities amended by this section on the effective date of this Act, the Secretary, notwithstanding any other provision of this section, may provide for delayed applicability, or for staged implementation, of the procedures for determining rent required by the provisions of subsections (a) through (h) of this section if the Secretary determines that immediate application of such procedures would be impracticable, would violate the terms of existing leases, or would result in extraordinary hardship for any class of tenants. The Secretary shall provide that the amount of rent paid by any family shall not increase, as a result of the amendments made by this section and as a result of any other provision of Federal law redefining which governmental benefits are required to or may be considered as income, by more than 10 per centum during any 12-month period unless the increase above such 10 per centum is attributed solely to increases in income which are not caused by such amendments or by such redefinitions. The limitation contained in the preceding sentence shall remain in effect and may not be changed or superceded except by another provision of law which amends this subsection. Notwithstanding any other provision of this section, application of the procedures for determining rent contained in this section shall not result in a reduction in the amount of rent paid by any tenant below the amount paid by such tenant immediately preceding the effective date of this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Tenants of housing assisted under the provisions of law amended by this section whose occupancy begins after the effective date of this Act shall be subject to immediate rent payment determinations in accordance with the amendments contained in subsections (a) through (h), except that the Secretary may provide for delayed applicability, or for staged implementation, of these requirements for such tenants if the Secretary determines that immediate application of the requirements of this section would be impracticable, or that uniform procedures for assessing rents would significantly decrease administrative costs and burdens.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The Secretary’s actions and determinations and the procedures for making determinations pursuant to this subsection shall not be reviewable in any court. The provisions of subsections (a) through (h) shall be implemented and fully applicable to all affected tenants no later than five years following the date of enactment of this Act, except that the Secretary may extend the time for implementation if the Secretary determines that full implementation would result in extraordinary hardship for any class of tenants.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">income eligibility</heading><num value="323"><inline class="smallCaps">Sec</inline>. 323. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437">42 USC 1437 note</ref>.</p></sidenote> <content class="inline">The United States Housing Act of 1937 is amended by adding at the end thereof the following: <page identifier="/us/stat/95/405">95 STAT. 405</page> <quotedContent> <section> <heading class="centered smallCaps">“income eligibility for assisted housing</heading><num value="16">“<inline class="smallCaps">Sec</inline>. 16. </num><subsection class="inline"><num value="a">(a) </num><content>Not more than 10 per centum of the dwelling units <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437n">42 USC 1437n</ref>.</p></sidenote>which were available for occupancy under public housing annual contributions contracts and section 8 housing assistance payments contracts under this Act before the effective date of the Housing and Community Development Amendments of 1981, and which will be <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 384.</p></sidenote>leased on or after such effective date shall be available for leasing by lower income families other than very low-income families.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>Not more than 5 per centum of the dwelling units which become available for occupancy under public housing annual contributions contracts and section 8 housing assistance payments contracts under this Act on or after the effective date of the Housing and Community Development Amendments of 1981 shall be available for leasing by lower income families other than very low-income families.”.</content> </subsection> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">cost reduction in assisted housing</heading><num value="324"><inline class="smallCaps">Sec</inline>. 324. </num><chapeau>Section 8 of the United States Housing Act of 1937 is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f</ref>.</p></sidenote>amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting after the first sentence of subsection (b)(2) the following: “<quotedText>To increase housing opportunities for very low-income families, the Secretary shall assure that newly constructed housing to be assisted under this section is modest in design.</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding at the end of subsection (c)(2) the following: <sidenote><p class="indent0 firstIndent0 fontsize8">Contract rents, increases, limitation.</p></sidenote> <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>Notwithstanding the foregoing, the Secretary shall limit increases in contract rents for newly constructed or substantially rehabilitated projects assisted under this section to the amount of operating cost increases incurred with respect to comparable rental dwelling units of various sizes and types in the same market area which are suitable for occupancy by families assisted under this section. Where no comparable dwelling units exist in the same market area, the Secretary shall have authority to approve such increases in accordance with the best available data regarding operating cost increases in rental dwelling units.”; and</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by adding at the end thereof the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="l">“(l) </num><content>After selection of a proposal involving newly constructed or substantially rehabilitated units for assistance under this section, the Secretary shall limit cost and rent increases, except for adjustments in rent pursuant to section 8(c)(2), to those approved by the Secretary. The Secretary may approve those increases only for unforeseen factors beyond the owner’s control, design changes required by the Secretary or the local government, or changes in financing approved by the Secretary.</content> </subsection> <subsection class="indent0 fontsize10"><num value="m">“(m) </num><content>For the purpose of achieving the lowest cost in providing units in newly constructed projects assisted under this section, the Secretary shall give a preference in entering into contracts under this section for projects which are to be located on specific tracts of land provided by States or units of local government if the Secretary determines that the tract of land is suitable for such housing, and that affording such preference will be cost effective.</content> </subsection> <subsection class="indent0 fontsize10"><num value="n">“(n) </num><chapeau>In making assistance available under subsection (e)(5) and subsection (i), the Secretary may provide assistance with respect to residential properties in which some or all of the dwelling units do not contain bathroom or kitchen facilities, if—</chapeau> <page identifier="/us/stat/95/406">95 STAT. 406</page> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the property is located in an area in which there is a significant demand for such units, as determined by the Secretary; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the unit of general local government in which the property is located and the local public housing agency approve of such units being utilized for such purpose.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10"><sidenote><p class="indent0 firstIndent0 fontsize8">Waiver</p></sidenote>The Secretary may waive, in appropriate cases, the limitation and preference described in the second and third sentences of section <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 400.</p></sidenote>3(b)(3) with respect to the assistance made available under this subsection.”.</continuation> </subsection> </quotedContent> </content></paragraph> </section> <section> <heading class="centered smallCaps">aid for eligible families</heading><num value="325"><inline class="smallCaps">Sec</inline>. 325. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f</ref>.</p></sidenote> <chapeau class="inline">Section 8 of the United States Housing Act of 1937 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by adding at the end of subsection (b)(2) the following: “Each contract to make assistance payments for newly constructed or substantially rehabilitated housing assisted under this section entered into after the date of enactment of the Housing and <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 384.</p></sidenote>Community Development Amendments of 1981 shall provide that during the term of the contract the owner shall make available for occupancy by families which are eligible for assistance under this section, at the time of their initial occupancy, the number of units for which assistance is committed under the contract.”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting after “<quotedText>nonhandicapped persons</quotedText>” in the second sentence of subsection (c)(5) the following: “which are not subject to mortgages purchased under section 305 of the National Housing <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1720">12 USC 1720</ref>.</p></sidenote>Act”.</content></paragraph> </section> <section> <heading class="centered smallCaps">miscellaneous housing assistance provisions</heading><num value="326"><inline class="smallCaps">Sec</inline>. 326. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f</ref>.</p></sidenote> <content class="inline">Section 8(c) of the United States Housing Act of 1937 is amended by adding at the end thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><content>Each contract under this section shall provide that the owner will notify tenants at least 90 days prior to the expiration of the contract of any rent increase which may occur as a result of the expiration of such contract.”.</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Survey.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <content class="inline">Within one year after the date of enactment of this Act, the Secretary of Housing and Urban Development shall conduct a survey to determine the number of projects which are assisted under section 8 of the United States Housing Act of 1937 and are owned by developers or sponsors with five-year annual contributions contracts who plan to withdraw from the section 8 program when their contracts expire and who will increase rents in those projects to levels that the current residents of those projects will not be able to afford. Where such survey indicates that an owner intends to withdraw from the program, the Secretary shall notify affected residents of possible rent increases.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote> <content class="inline">Not later than one year after the date of the enactment of this Act, the Secretary shall transmit to the Congress a report indicating alternative methods which may be utilized for recapturing the cost to the Federal Government of front-end investment in those units which are removed from the section 8 program.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote> <content class="inline">The Secretary of Housing and Urban Development, after consultation with the Attorney General, shall develop regulations to prevent possible conflicts of interest on the part of Federal, State, and local government officials with regard to participation in projects assisted under section 8 of the United States Housing Act of 1937, and <page identifier="/us/stat/95/407">95 STAT. 407</page>shall make such regulations effective not later than 180 days after the date of enactment of this Act.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Housing and Urban Development shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote>permit public housing agencies to retain, out of judgments obtained by them in recovering amounts wrongfully paid as a result of fraud and abuse in the housing assistance program under section 8 of the United States Housing Act of 1937, an amount equal to the greater of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f</ref>.</p></sidenote>(A) the legal expenses incurred in obtaining such judgments, or (B) 50 per centum of the amount actually collected on the judgments.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The Secretary of Housing and Urban Development shall include in the annual report under section 8 of the Department of Hawing and Urban Development Act a summary of cases brought to its attention by public housing authorities for prosecution or civil action, and shall describe the handling of such cases by such authorities and by the Department of Housing and Urban Development and the resolution of such cases in the court system.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 8(d)(1)(B) of the United States Housing Act of 1937 is amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><clause class="inline"><num value="i">(i) </num><content>the lease between the tenant and the owner shall be for at least one year or the term of such contract, whichever is shorter, and shall contain other terms and conditions specified by the Secretary; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the owner shall not terminate the tenancy except for serious or repeated violation of the terms and conditions of the lease, for violation of applicable Federal, State, or local law, or for other good cause;”.</content> </clause> </subparagraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The amendment made by paragraph (1) shall apply with respect <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f note</ref>.</p></sidenote>to leases entered into on or after October 1, 1981.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">rent supplements</heading><num value="327"><inline class="smallCaps">Sec</inline>. 327. </num><subsection class="inline"><num value="a">(a) </num><content>Section 101(l) of the Housing and Urban Development Act of 1965 is amended to read as follows: <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1701s">12 USC 1701s</ref>.</p></sidenote> <quotedContent> <subsection class="indent0 fontsize10"><num value="l">“(l) </num><content>Notwithstanding the provisions of subsection (a) and any other provision of law, the Secretary may utilize additional authority under section 5(c) of the United States Housing Act of 1937 made available <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1624">94 Stat. 1624</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437c">42 USC 1437c</ref>.</p></sidenote>by appropriation Acts on or after October 1, 1979, to supplement assistance authority available under this section.”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The second sentence of section 101(d) of such Act is repealed.</content> </subsection> </section> <section> <heading class="centered smallCaps">section 235 amendments</heading><num value="328"><inline class="smallCaps">Sec</inline>. 328. </num><subsection class="inline"><num value="a">(a) </num><content>Section 235(c)(2)(A) of the National Housing Act is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1630">94 Stat. 1630</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715z">12 USC 1715z</ref>.</p></sidenote>amended by striking out “<quotedText>ceases for a period of 90 continuous days or more making payments required under the mortgage, loan, or advance of credit secured by such a property, or</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 235(h)(1) of such Act is amended by adding the following new sentences at the end thereof: “The Secretary shall not enter into new contracts for assistance payments under this section after March 31, 1982, except pursuant to a firm commitment issued on or before March 31, 1982, or pursuant to other commitments issued by the Secretary prior to June 30, 1981, reserving funds for housing to be assisted under this section where such housing is included in a project pursuant to section 119 of the Housing and Community Development Act of 1974. In no event may the Secretary enter into any new <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5318">42 USC 5318</ref>.</p></sidenote>contract for assistance payments under this section after September 30, 1983.”.</content> </subsection> <page identifier="/us/stat/95/408">95 STAT. 408</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1631">94 Stat. 1631</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715z">12 USC 1715z</ref>.</p></sidenote> <content class="inline">Section 235(q)(14) of such Act is amended by striking out “<quotedText>ceases for a period of 90 continuous days or more making payments on the mortgage, loan, or advance of credit secured by the property, or</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">restriction on use of assisted housing</heading><num value="329"><inline class="smallCaps">Sec</inline>. 329. </num><subsection class="inline"><num value="a">(a) </num><content>Section 214 of the Housing and Community Development <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1637">94 Stat. 1637</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1436a">42 USC 1436a</ref>.</p></sidenote>Act of 1980 is amended to read as follows: <quotedContent> <section> <heading class="centered smallCaps">“restriction on use of assisted housing</heading><num value="214">“<inline class="smallCaps">Sec</inline>. 214. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Resident aliens.</p></sidenote> <chapeau class="inline">Notwithstanding any other provision of law, the Secretary of Housing and Urban Development may not make financial assistance available for the benefit of any alien unless that alien is a resident of the United States and is—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>an alien lawfully admitted for permanent residence as an immigrant as defined by sections 101(a)(15) and 101(a)(20) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15) and 8 U.S.C. 1101(a)(20)), excluding, among others, alien visitors, tourists, diplomats, and students who enter the United States temporarily with no intention of abandoning their residence in a foreign country;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>an alien who entered the United States prior to June 30, 1948, or such subsequent date as is enacted by law, has continuously maintained his or her residence in the United States since then, and is not ineligible for citizenship, but who is deemed to be lawfully admitted for permanent residence as a result of an exercise of discretion by the Attorney General pursuant to section 249 of the Immigration and Nationality Act (8 U.S.C. 1259);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>an alien who is lawfully present in the United States pursuant to an admission under section 207 of the Immigration <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/103">94 Stat. 103</ref>.</p></sidenote>and Nationality Act (8 U.S.C. 1157) or pursuant to the granting of asylum (which has not been terminated) under section 208 of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/105">94 Stat. 105</ref>.</p></sidenote>such Act (8 U.S.C. 1158);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>an alien who is lawfully present in the United States as a result of an exercise of discretion by the Attorney General for emergent reasons or reasons deemed strictly in the public interest pursuant to section 212(d)(5) of the Immigration and Nationality <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/107">94 Stat. 107</ref>.</p></sidenote>Act (8 U.S.C. 1182(d)(5)); or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>an alien who is lawfully present in the United States as a result of the Attorney General’s withholding deportation pursuant to section 243(h) of the Immigration and Nationality Act (8 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/107">94 Stat. 107</ref>.</p></sidenote>U.S.C. 1253(h)).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">“Financial assistance.”</p></sidenote> <content class="inline">For purposes of this section the term ‘financial assistance’ means financial assistance made available pursuant to the United <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437">42 USC 1437 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715z/1715z–1">12 USC 1715z, 1715z–1</ref>.</p></sidenote>States Housing Act of 1937, section 235 or 236 of the National Housing Act, or section 101 of the Housing and Urban Development Act of 1965.”.</content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1701s">12 USC 1701s</ref>, <ref href="/us/usc/t42/s1451">42 USC 1451</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1436a">42 USC 1436a note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/107">94 Stat. 107</ref>.</p></sidenote> <content class="inline">An alien who is lawfully present in the United States as a result of being granted conditional entry pursuant to section 203(a)(7) of the Immigration and Nationality Act (8 U.S.C. 1153(a)(7)) before April 1, 1980, because of persecution or fear of persecution on account of race, religion, or political opinion or because of being uprooted by catastrophic natural calamity shall be deemed, for purposes of section 214 of the Housing and Community Development Act of 1980, to be an <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Supra</i>.</p></sidenote>alien described in section 214(a)(3) of such Act.</content> </subsection> </section> <page identifier="/us/stat/95/409">95 STAT. 409</page> <section> <heading class="centered smallCaps">payment for development managers</heading><num value="329A"><inline class="smallCaps">Sec</inline>. 329A. </num><content>The Secretary of Housing and Urban Development shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437j–i">42 USC 1437j–i</ref>.</p></sidenote>develop and implement a revised fee schedule for development managers of lower income housing projects assisted under the United States Housing Act of 1937 so that the percentage limitation applicable <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437">42 USC 1437 note</ref>.</p></sidenote>to fees chargeable in connection with smaller projects is increased to a minimum level which is practicable.</content> </section> <section> <heading class="centered smallCaps">review of operating subsidy formula</heading><num value="329B"><inline class="smallCaps">Sec</inline>. 329B. </num><content>The Secretary of Housing and Urban Development shall review the administration of the operating subsidy program under section 9 of the United States Housing Act of 1937, including an <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437g">42 USC 1437g</ref>.</p></sidenote>examination of alternative methods for distributing operating subsidies which provide incentives for efficient management, full rent collection, and improved maintenance of projects developed under the United States Housing Act of 1937. Not later than March 1, 1982, <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote>the Secretary of Housing and Urban Development shall transmit a report to the Congress on the results of such review.</content> </section> <section> <heading class="centered smallCaps">energy efficiency efforts</heading><num value="329C"><inline class="smallCaps">Sec</inline>. 329C. </num><chapeau>Section 201 of the Housing and Community Development Amendments of 1978 is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715z–1a">12 USC 1715z–1a</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>in subsection (f)(1), by striking out “<quotedText>and</quotedText>” at the end of subparagraph (B), by striking out the period at the end of subparagraph (C) and inserting in lieu thereof “<quotedText>; and</quotedText>”, and by adding at the end thereof the following: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>an amount determined by the Secretary to be necessary to carry out a plan to upgrade the project to meet cost-effective energy efficiency standards prescribed by the Secretary.”; and</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting after subsection (h) the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="i">“(i) </num><chapeau>Notwithstanding any other provision of law, in exercising any authority relating to the approval or disapproval of rentals charged tenants residing in projects which are eligible for assistance under this section, the Secretary—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>shall consider whether the mortgagor could control increases in utility costs by securing more favorable utility rates, by undertaking energy conservation measures which are financially feasible and cost effective, or by taking other financially feasible and cost-effective actions to increase energy efficiency or to reduce energy consumption; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>may, in his discretion, adjust the amount of a proposed rental increase where he finds the mortgagor could exercise such control.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </section> <section> <heading class="centered smallCaps">recognition of kansas department of economic development</heading><num value="329D"><inline class="smallCaps">Sec</inline>. 329D. </num><content>The Secretary of Housing and Urban Development shall permit the Kansas Department of Economic Development to participate as a public housing agency for the purposes of programs carried out under the United States Housing Act of 1937 and as a State <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437">42 USC 1437 note</ref>.</p></sidenote>agency for the purpose of section 883.203 of title 24 of the Code of Federal Regulations as in effect June 1, 1981.</content> </section> <page identifier="/us/stat/95/410">95 STAT. 410</page> <section> <heading class="centered smallCaps">purchase of pha obligations</heading><num value="329E"><inline class="smallCaps">Sec</inline>. 329E. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s2294a">12 USC 2294a</ref>.</p></sidenote> <content class="inline">In addition to any authority provided before October 1, 1981, the Secretary of Housing and Urban Development may, on and after October 1, 1981, enter into contracts for periodic payments to the Federal Financing Bank to offset the costs to the Bank of purchasing obligations (as described in the first sentence of section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s2294">12 USC 2294</ref>.</p></sidenote>16(b) of the Federal Financing Bank Act of 1973) issued by local public housing agencies for purposes of financing public housing projects <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1624">94 Stat. 1624</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437c">42 USC 1437c</ref>.</p></sidenote>authorized by section 5(c) of the United States Housing Act of 1937. Notwithstanding any other provision of law, such contracts may be entered into only to the extent approved in appropriation Acts, and the aggregate amount which may be obligated over the duration of such contracts may not exceed $400,000,000. There are hereby authorized to be appropriated any amounts necessary to provide for such payments. The authority to enter into contracts under this subsection shall be in lieu of any authority (except for authority provided specifically to the Secretary before October 1, 1981) of the Secretary to enter into contracts for such purposes under section 16(b) of the Federal Financing Bank Act of 1973.</content> </section> <section> <heading class="centered smallCaps">tenant participation</heading><num value="329F"><inline class="smallCaps">Sec</inline>. 329F. </num><content>Section 202(b)(1) of the Housing and Community Development <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715z–1b">12 USC 1715z–1b</ref>.</p></sidenote>Amendments of 1978 is amended by striking out “<quotedText>owner’s action</quotedText>” and inserting in lieu thereof “<quotedText>owner’s request for rent increase, conversion of residential rental units to any other use (including commercial use or use as a unit in any condominium or cooperative project), partial release of security, or major physical alterations</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">fire safety</heading><num value="329G"><inline class="smallCaps">Sec</inline>. 329G. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1625">94 Stat. 1625</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437l">42 USC 1437<i>l</i></ref>.</p></sidenote> <content class="inline">Section 14(i)(1) of the United States Housing Act of 1937 is amended by inserting the following before the period at the end of the first sentence thereof: “, especially emergency and special purpose needs which relate to fire safety standards”.</content> </section> <section> <heading class="centered smallCaps">section 8 assistance for manufactured homes</heading><num value="329H"><inline class="smallCaps">Sec</inline>. 329H. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Contracts.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f</ref>.</p></sidenote> <content class="inline">Section 8(j) of the United States Housing Act of 1937 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="j">“(j) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>The Secretary may enter into contracts to make assistance payments under this subsection to assist lower income families by making rental assistance payments on behalf of any such family which utilizes a manufactured home as its principal place of residence. Such payments may be made with respect to the rental of the real property on which there is located a manufactured home which is owned by any such family or with respect to the rental by such family of a manufactured home and the real property on which it is located. In carrying out this subsection, the Secretary may—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>enter into annual contributions contracts with public housing agencies pursuant to which such agencies may enter into contracts to make such assistance payments to the owners of such real property, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>enter into such contracts directly with the owners of such real property.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Maximum monthly rent.</p></sidenote> <content class="inline">A contract entered into pursuant to this paragraph shall establish the maximum monthly rent (including maintenance and management charges) which the owner is entitled to receive for the <page identifier="/us/stat/95/411">95 STAT. 411</page>space on which a manufactured home is located and with respect to which assistance payments are to be made. The maximum monthly rent shall not exceed by more than 10 per centum the fair market rental established by the Secretary periodically (but not less than annually) with respect to the market area for the rental of real property suitable for occupancy by families assisted under this paragraph.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>The amount of any monthly assistance payment with respect to any family which rents real property which is assisted under this paragraph, and on which is located a manufactured home which is owned by such family shall be the difference between the rent the family is required to pay under section 3(a) of this Act and the sum <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437a">42 USC 1437a</ref>.</p></sidenote>of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the monthly payment made by such family to amortize the cost of purchasing the manufactured home;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the monthly utility payments made by such family, subject to reasonable limitations prescribed by the Secretary; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>the maximum monthly rent permitted with respect to the real property which is rented by such family for the purpose of locating its manufactured home;</content> </clause> <continuation class="indent0 firstIndent0 fontsize10">except that in no case may such assistance exceed the total amount of such maximum monthly rent.</continuation> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>Contracts entered into pursuant to this paragraph shall <sidenote><p class="indent0 firstIndent0 fontsize8">Maximum monthly rent.</p></sidenote>establish the maximum monthly rent permitted with respect to the manufactured home and the real property on which it is located and with respect to which assistance payments are to be made. The maximum monthly rent shall not exceed by more than 10 per centum the fair market rental established by the Secretary periodically (but not less than annually) with respect to the market area for the rental of a manufactured home and the real property on which it is located suitable for occupancy by families assisted under this paragraph, except that the maximum monthly rent may exceed the fair market rental by more than 10 but not more than 20 per centum where the Secretary determines that special circumstances warrant such higher maximum rent.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>The amount of any monthly assistance payment with respect to any family which rents a manufactured home and the real property on which it is located and which is assisted under this paragraph shall be the difference between the rent the family is required to pay under section 3(a) of this Act and the sum of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the monthly utility payments made by such family, subject to reasonable limitations prescribed by the Secretary; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the maximum monthly rent permitted with respect to the manufactured home and the real property on which it is located.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>The provisions of subsection (c)(2) of this section shall apply to the adjustments of maximum monthly rents under this subsection.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>Each contract entered into under this subsection shall be for a <sidenote><p class="indent0 firstIndent0 fontsize8">Contract terms.</p></sidenote>term of not less than one month and not more than 180 months, except that in any case in which the manufactured home park is substantially rehabilitated or newly constructed, such term may not be less than 240 months, nor more than the maximum term for a manufactured home loan permitted under section 2(b) of the National Housing Act. <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 414.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>The Secretary may carry out this subsection without regard to whether the manufactured home park is existing, substantially rehabilitated, or newly constructed.</content></paragraph> <page identifier="/us/stat/95/412">95 STAT. 412</page> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>In the case of any substantially rehabilitated or newly constructed manufactured home park containing spaces with respect to which assistance is made under this subsection, the principal amount of the mortgage attributable to the rental spaces within the park may not exceed an amount established by the Secretary which is equal to or less than the limitation for manufactured home parks described in <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 416.</p></sidenote>section 207(c)(3) of the National Housing Act, and the Secretary may increase such limitation in high cost areas in the manner described in such section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><content>The Secretary may prescribe other terms and conditions which are necessary for the purpose of carrying out the provisions of this subsection and which are consistent with the purposes of this subsection.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> </section> <section> <heading class="centered smallCaps">homeownership and fire safety studies</heading><num value="329I"><inline class="smallCaps">Sec</inline>. 329I. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>The Secretary of Housing and Urban Development shall conduct a study of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the extent, if any, to which section 8(c)(7) of the United <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f</ref>.</p></sidenote>States Housing Act of 1937 has been utilized;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>the results of any such utilization;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>if such section has not been utilized or utilized only on a very restricted basis, the reasons why it has not been utilized more extensively; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>different methods by which such section could be utilized for increasing homeownership opportunities for lower income families.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Recommendations, transmittal to Congress.</p></sidenote> <chapeau class="inline">As a result of such study, the Secretary shall, not later than January 1, 1982, transmit to the Congress recommendations regarding the establishment of a demonstration project in which the Secretary would use section 8(c)(7) of such Act for the purpose of increasing homeownership opportunities for lower income families. Such proposal shall include, but not be limited to, provisions for—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>targeting such project so that existing housing may be preserved to the maximum extent practicable; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>recovering assistance in the case of resale of the property or in other appropriate cases.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote> <content class="inline">The Secretary shall conduct a study to the extent to which lower income housing projects do not meet applicable fire safety standards and report to the Congress with respect to such study not later than one year after the date of the enactment of this Act.</content> </subsection> </section> </part> <part><num value="3">PART 3—</num><heading>PROGRAM AMENDMENTS AND EXTENSIONS</heading> <section> <heading class="centered smallCaps">federal housing administration extensions</heading><num value="331"><inline class="smallCaps">Sec</inline>. 331. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1638">94 Stat. 1638</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1703">12 USC 1703</ref>.</p></sidenote> <content class="inline">Section 2(a) of the National Housing Act is amended by striking out “<quotedText>October 1, 1981</quotedText>” in the first sentence and inserting in lieu thereof “<quotedText>October 1, 1982</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715h">12 USC 1715h</ref>.</p></sidenote> <content class="inline">Section 217 of such Act is amended by striking out “<quotedText>September 30, 1981</quotedText>” and inserting in lieu thereof “<quotedText>September 30, 1982</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715l">12 USC 1715<i>l</i></ref>.</p></sidenote> <content class="inline">Section 221(f) of such Act is amended by striking out “<quotedText>September 30, 1981</quotedText>” in the fifth sentence and inserting in lieu thereof “<quotedText>September 30, 1982</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715z">12 USC 1715z</ref>.</p></sidenote> <content class="inline">Section 235(m) of such Act is amended by striking out “<quotedText>September 30, 1981</quotedText>” and inserting in lieu thereof “<quotedText>September 30, 1982</quotedText>”.</content></paragraph> <page identifier="/us/stat/95/413">95 STAT. 413</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 235(q)(1) of such Act is amended by striking out “<quotedText>June 1, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1631">94 Stat. 1631</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715z">12 USC 1715z</ref>.</p></sidenote>1981,</quotedText>” in the fourth sentence thereof and inserting in lieu thereof “<quotedText>September 30, 1982,</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Section 236(n) of such Act is amended by striking out “<quotedText>September <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1638">94 Stat. 1638</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715z–1">12 USC 1715z–1</ref>.</p></sidenote>30, 1981</quotedText>” and inserting in lieu thereof “<quotedText>September 30, 1982</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><chapeau>Section 244(d) of such Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715z–9">12 USC 1715z–9</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>September 30, 1981</quotedText>” in the first sentence and inserting in lieu thereof “<quotedText>September 30, 1982</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>October 1, 1981</quotedText>” in the second sentence and inserting in lieu thereof “<quotedText>October 1, 1982</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>Section 245(a) of such Act is amended by striking out “<quotedText>September <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715z–10">12 USC 1715z–10</ref>.</p></sidenote>30, 1981</quotedText>” and inserting in lieu thereof “<quotedText>September 30, 1982</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 809(f) of such Act is amended by striking out “<quotedText>September <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1748h–1">12 USC 1748h–1</ref>.</p></sidenote>30, 1981</quotedText>” in the second sentence and inserting in lieu thereof “<quotedText>September 30, 1982</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 810(k) of such Act is amended by striking out “<quotedText>September <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1639">94 Stat. 1639</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1748h–2">12 USC 1748h–2</ref>.</p></sidenote>30, 1981</quotedText>” in the second sentence and inserting in lieu thereof “<quotedText>September 30, 1982</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num><content>Section 1002(a) of such Act is amended by striking out “<quotedText>September <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1749bb">12 USC 1749bb</ref>.</p></sidenote>30, 1981</quotedText>” in the second sentence and inserting in lieu thereof “<quotedText>September 30, 1982</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="j">(j) </num><content>Section 1101(a) of such Act is amended by striking out “<quotedText>September <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1749aaa">12 USC 1749aaa</ref>.</p></sidenote>30, 1981</quotedText>” in the second sentence and inserting in lieu thereof “<quotedText>September 30, 1982</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">flexible interest rates</heading><num value="332"><inline class="smallCaps">Sec</inline>. 332. </num><content>Section 3(a)(1) of Public Law 90–301 is amended by striking <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1639">94 Stat. 1639</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1709–1">12 USC 1709–1</ref>.</p></sidenote>out “<quotedText>October 1, 1981</quotedText>” and inserting in lieu thereof “<quotedText>October 1, 1982</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">government national mortgage association</heading><num value="333"><inline class="smallCaps">Sec</inline>. 333. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 305(c) of the Federal National Mortgage Association Charter Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1720">12 USC 1720</ref>.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>and</quotedText>” after “<quotedText>1978,</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by inserting the following before the period at the end thereof: “<quotedText>, and by $1,100,000,000 on October 1, 1981</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 305 of such Act is amended by adding the following new subsection at the end thereof: <quotedContent> <subsection class="indent0 fontsize10"><num value="k">“(k) </num><content>During fiscal year 1982, the Association may not enter into <sidenote><p class="indent0 firstIndent0 fontsize8">Mortgage purchases.</p></sidenote>commitments to purchase under this section mortgages with an aggregate principal amount in excess of $1,973,000,000, except that the Association may not enter into commitments to purchase mortgages secured by projects which do not contain units assisted under section 8 of the United States Housing Act of 1937 with an aggregate <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1437f">42 USC 1437f</ref>.</p></sidenote>principal amount in excess of $580,000,000.”.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>Section 306(g) of such Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1721">12 USC 1721</ref>.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>(1)</quotedText>” after “<quotedText>(g)</quotedText>”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>(1)</quotedText>” and “<quotedText>(2)</quotedText>” in the first sentence and inserting in lieu thereof “<quotedText>(i)</quotedText>” and “<quotedText>(ii)</quotedText>”, respectively; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by adding the following new paragraph at the end thereof: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>During fiscal year 1982, the Association may not enter into commitments to issue guarantees under this subsection in an aggregate amount in excess of $69,542,000,000.”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>In entering into commitments to purchase below-market, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1720">12 USC 1720 note</ref>.</p></sidenote>tandem plan mortgages during the period beginning on the date of the enactment of this Act and ending October 1, 1982, under section 305 of the Federal National Mortgage Association Charter Act, the <page identifier="/us/stat/95/414">95 STAT. 414</page>Government National Mortgage Association may enter into such commitments only with respect to multifamily projects for which firm commitments for mortgage insurance under title II of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1707">12 USC 1707</ref>.</p></sidenote>National Housing Act have been issued.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The Secretary of Housing and Urban Development shall continue to process applications for mortgage insurance for multifamily projects under title 11 of the National Housing Act for a period of at least 90 days beginning on October 1, 1981.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">general insurance fund</heading><num value="334"><inline class="smallCaps">Sec</inline>. 334. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1639">94 Stat. 1639</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1735c">12 USC 1735c</ref>.</p></sidenote> <content class="inline">Section 519(f) of the National Housing Act is amended by inserting the following before the period at the end thereof: “<quotedText>, which amount shall be increased by $126,673,000 on October 1, 1981</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">limitation on insurance authority</heading><num value="335"><inline class="smallCaps">Sec</inline>. 335. </num><content>Title V of the National Housing Act is amended by adding the following new section at the end thereof: <quotedContent> <section> <heading class="centered smallCaps">“limitation on insurance authority</heading><num value="531">“<inline class="smallCaps">Sec</inline>. 531. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1735f–9">12 USC 1735f–9</ref>.</p></sidenote> <content class="inline">During fiscal year 1982, the Secretary may not enter into commitments to insure under this Act loans and mortgages with an aggregate principal amount in excess of $41,000,000,000.”.</content> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">housing for the elderly</heading><num value="336"><inline class="smallCaps">Sec</inline>. 336. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1701q">12 USC 1701q</ref>.</p></sidenote> <content class="inline">Section 202(a)(4)(C) of the Housing Act of 1959 is amended by inserting the following before the period at the end of the second sentence: “, and not more than $850,848,000 may be approved in appropriation Acts for such loans with respect to fiscal year 1982”.</content> </section> <section> <heading class="centered smallCaps">research authorizations</heading><num value="337"><inline class="smallCaps">Sec</inline>. 337. </num><content>The second sentence of section 501 of the Housing and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1639">94 Stat. 1639</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1701z–1">12 USC 1701z–1</ref>.</p></sidenote>Urban Development Act of 1970 is amended 17 striking out “<quotedText>and not to exceed $51,000,000 for the fiscal year 1981</quotedText>” and inserting in lieu thereof “<quotedText>not to exceed $51,000,000 for the fiscal year 1981, and not to exceed $35,000,000 for the fiscal year 1982</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">property improvement and manufactured home loans</heading><num value="338"><inline class="smallCaps">Sec</inline>. 338. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Insurance to financial institutions.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1703">12 USC 1703</ref>.</p></sidenote> <content class="inline">Section 2(b) of the National Housing Act is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>No insurance shall be granted under this section to any such financial institution with respect to any obligation representing any such loan, advance of credit, or purchase by it if the amount of such loan, advance of credit, or purchase exceeds—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>$17,500 ($20,000 where financing the installation of a solar energy system is involved) if made for the purpose of financing alterations, repairs and improvements upon or in connection with existing single-family structures or manufactured homes;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>$43,750 or an average amount of $8,750 per family unit ($50,000 and $10,000, respectively, where financing the installation of a solar energy system is involved) if made for the purpose of financing the alteration, repair, improvement, or conversion of an existing structure used or to be used as an apartment house or a dwelling for two or more families;</content></subparagraph> <page identifier="/us/stat/95/415">95 STAT. 415</page> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>$22,500 ($35,000 in the case of a manufactured home composed of two or more modules) if made for the purpose of financing the purchase of a manufactured home;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>$35,000 ($47,500 in the case of a manufactured home composed of two or more modules) if made for the purpose of financing the purchase of a manufactured home and a suitably developed lot on which to place the home;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>such an amount as may be necessary, but not exceeding $12,500, if made for the purpose of financing the purchase, by an owner of a manufactured home which is the principal residence of that owner, of a suitably developed lot on which to place that manufactured home, and if the owner certifies that he or she will place the manufactured home on the lot acquired with such loan within six months after the date of such loan;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num><content>$15,000 per family unit if made for the purpose of financing the preservation of an historic structure; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="G">“(G) </num><content>such principal amount as the Secretary may prescribe if made for the purpose of financing fire safety equipment for a nursing home, extended health care facility, intermediate health care facility, or other comparable health care facility.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Because of prevailing higher costs, the Secretary may, by regulation, in Alaska, Guam, or Hawaii, increase any dollar amount limitation on manufactured homes or manufactured home lot loans contained in this subsection by not to exceed 40 per centum. In other areas where needed to meet higher costs of land acquisition, site development, and construction of a permanent foundation in connection with the purchase of a manufactured home or lot, the Secretary may, by regulation, increase any dollar amount limitation otherwise applicable by an additional $7,500.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>No insurance shall be granted under this section to any such financial institution with respect to any obligation representing any such loan, advance of credit, or purchase by it if the term to maturity of such loan, advance of credit or purchase exceeds—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>fifteen years and thirty-two days if made for the purpose of financing alterations, repairs, and improvements upon or in connection with an existing single-family structure or manufactured home;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>fifteen years and thirty-two days if made for the purpose of financing the alteration, repair, improvement or conversion of an existing structure used or to be used as an apartment house or a dwelling for two or more families;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>twenty years and thirty-two days (twenty-three years and thirty-two days in the case of a manufactured home composed of two or more modules) if made for the purpose of financing the purchase of a manufactured home;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>twenty years and thirty-two days (twenty-five years and thirty-two days in the case of a manufactured home composed of two or more modules) if made for the purpose of financing the purchase of a manufactured home and a suitably developed lot on which to place the home;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>fifteen years and thirty-two days if made for the purpose of financing the purchase, by the owner of a manufactured home which is the principal residence of that owner, of a suitably developed lot on which to place that manufactured home;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num><content>fifteen years and thirty-two days if made for the purpose of financing the preservation of an historic structure;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="G">“(G) </num><content>such term to maturity as the Secretary may prescribe if made for the purpose of financing the construction of a new <page identifier="/us/stat/95/416">95 STAT. 416</page>structure for use in whole or in part for agricultural purposes; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="H">“(H) </num><content>such term to maturity as the Secretary may prescribe if made for the purpose of financing fire safety equipment for a nursing home, extended health care facility, intermediate health care facility, or other comparable health care facility.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><chapeau>For the purpose of this subsection—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the term ‘developed lot’ includes an interest in a condominium project (including any interest in the common areas) or a share in a cooperative association;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>a loan to finance the purchase of a manufactured home or a manufactured home and lot may also finance the purchase of a garage, patio, carport, or other comparable appurtenance; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>a loan to finance the purchase of a manufactured home or a manufactured home and lot shall be secured by a first lien upon such home or home and lot, its furnishings, equipment, accessories, and appurtenances.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>No insurance shall be granted under this section to any such financial institution with respect to any obligation representing any such loan, advance of credit, or purchase by it unless the obligation bears such interest, has such maturity, and contains such other terms, conditions, and restrictions as the Secretary shall prescribe, in order to make credit available for the purpose of this title. Any such obligation with respect to which insurance is granted under this section shall bear interest and insurance premium charges not exceeding (A) an amount, with respect to so much of the net proceeds thereof as does not exceed $2,500, equivalent to $5.50 discount per $100 of original face amount of a one-year note payable in equal monthly installments, plus (B) an amount, with respect to any portion of the net proceeds thereof in excess of $2,500, equivalent to $4.50 discount per $100 of original face amount of such note. The amounts referred to in clauses (A) and (B) of the preceding sentence, when correctly based on tables of calculations issued by the Secretary or adjusted to eliminate minor errors in computation in accordance with requirements of the Secretary, shall be deemed to comply with such sentence.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><subparagraph class="inline"><num value="A">(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Refinancing.</p></sidenote> <content class="inline">Any obligation with respect to which insurance is granted under this section may be refinanced and extended in accordance with such terms and conditions as the Secretary may prescribe, but in no event for an additional amount or term in excess of any applicable maximum provided for in this subsection.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>The owner of a manufactured home lot purchased without assistance under this section but otherwise meeting the requirements of this section may refinance such lot under this section in connection with the purchase of a manufactured home if the borrower certifies that the home and lot is or will be his or her principal residence within six months after the date of the loan.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1641">94 Stat. 1641</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1713">12 USC 1713</ref>.</p></sidenote> <content class="inline">Section 207(f)(3) of the National Housing Act is amended by striking out “<quotedText>$8,000</quotedText>” and inserting in lieu thereof “<quotedText>$9,000</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">mortgage insurance for condominiums</heading><num value="339"><inline class="smallCaps">Sec</inline>. 339. </num><subsection class="inline"><num value="a">(a) </num><content>The first sentence of section 234(b) of the National <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715y">12 USC 1715y</ref>.</p></sidenote>Housing Act is amended by inserting “<quotedText>, including a project in which the dwelling units are attached, semi-attached, or detached,</quotedText>” after “<quotedText>multifamily project</quotedText>”.</content> </subsection> </section> <page identifier="/us/stat/95/417">95 STAT. 417</page> <section> <heading class="centered smallCaps">housing counseling</heading><num value="339A"><inline class="smallCaps">Sec</inline>. 339A. </num><content>Section 106(a)(3) of the Housing and Urban Development Act of 1968 is amended by inserting the following before the period at <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1701x">12 USC 1701x</ref>.</p></sidenote>the end of the first sentence: “; except that for the fiscal year 1982, there are authorized to be appropriated not to exceed $4,000,000 for such purposes”.</content> </section> <section> <heading class="centered smallCaps">technical amendments</heading><num value="339B"><inline class="smallCaps">Sec</inline>. 339B. </num><subsection class="inline"><num value="a">(a) </num><chapeau>The last sentence of section 207(c)(3), section 213(p), the last proviso in section 220(d)(3)(B)(iii), section 221(k), the proviso in section 231(c)(2), and section 234(j) of the National Housing Act are <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1713/1715e/1715k/1715l/1715v/1715y">12 USC 1713, 1715e, 1715k, 1715<i>l</i>, 1715v, 1715y</ref>.</p></sidenote>amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>therein</quotedText>” immediately after “<quotedText>installation</quotedText>” wherever it appears; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>therein</quotedText>” before the punctuation at the end thereof.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 223(f) of such Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1650">94 Stat. 1650</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715n">12 USC 1715n</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>and</quotedText>” immediately after the semicolon at the end of paragraph (2)(A); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by redesignating paragraph (5) as paragraph (4).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>For purposes of paragraphs (1) and (4) of section 308(c) of the <sidenote><p class="indent0 firstIndent0 fontsize8">Definitions.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1640">94 Stat. 1640</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s170/5401">12 USC 1701</ref> <i>et seq</i>., 5401 <i>et seq</i>.</p></sidenote>Housing and Community Development Act of 1980, the term “mobile home” and the term “manufactured home” shall be deemed to include the term “mobile homes” and the term “manufactured homes”, respectively.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num><content>The material preceding the proviso in clause (2) of the first sentence of section 234(c) of the National Housing Act is amended to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715y">12 USC 1715y</ref>.</p></sidenote>read as follows: “<quotedText>(2) the project is or has been covered by a mortgage insured under any section (except section 213(a) (1) and (2)) of this Act <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715e">12 USC 1715e</ref>.</p></sidenote>or the project was approved for a guarantee, insurance, or a direct loan under chapter 37 of title 38, United States Code, notwithstanding <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s1801">38 USC 1801 <i>et seq</i></ref>.</p></sidenote>any requirements in any such section that the project be constructed or rehabilitated for the purpose of providing rental housing;</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 318 of the Housing and Community Development Act of <sidenote><p class="indent0 firstIndent0 fontsize8">Repeal.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1646">94 Stat. 1646</ref>.</p></sidenote>1980 is repealed.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">lower cost technology</heading><num value="339C"><inline class="smallCaps">Sec</inline>. 339C. </num><content>The Secretary of Housing and Urban Development is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1701z–14">12 USC 1701z–14</ref>.</p></sidenote>authorized to develop and implement a demonstration program utilizing lower cost building technology for projects located on inner-city vacant land.</content> </section> <section> <heading class="centered smallCaps">reduction of 1981 authority</heading><num value="339D"><inline class="smallCaps">Sec</inline>. 339D. </num><subsection class="inline"><num value="a">(a) </num><content>Notwithstanding any other provision of law, the authorizations for appropriations for programs and activities administered by the Secretary for Housing and Urban Development in fiscal year 1981 are reduced by $5,359,000,000.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>This section takes effect upon the date of enactment of this Act. <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote></content> </subsection> </section> <section> <heading class="centered smallCaps">national institute of building sciences</heading><num value="339E"><inline class="smallCaps">Sec</inline>. 339E. </num><subsection class="inline"><num value="a">(a) </num><content>Section 809(h) of the Housing and Community Development Act of 1974 is amended by striking out “<quotedText>through 1982 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1701j–2">12 USC 1701j–2</ref>.</p></sidenote>(with</quotedText>” and inserting in lieu thereof “<quotedText>through 1984 (with not more than $500,000 to be appropriated for each of the fiscal years 1982, 1983, and 1984 and with</quotedText>”.</content> </subsection> <page identifier="/us/stat/95/418">95 STAT. 418</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1701j–2">12 USC 1701j–2</ref>.</p></sidenote> <content class="inline">Section 809(c)(4) of such Act is amended by inserting the following before the period at the end thereof: “; except that., notwithstanding any such rules and procedures as may be adopted by the Institute, the President of the United States, by and with the advice and consent of the Senate, shall appoint, as representative of the public interest, two of the members of the Board of Directors selected each year for terms commencing in that year”.</content> </subsection> </section> <section> <heading class="centered smallCaps">new communities</heading><num value="339F"><inline class="smallCaps">Sec</inline>. 339F. </num><content>Section 717(b) of the National Urban Policy and New <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s4518">42 USC 4518</ref>.</p></sidenote>Community Development Act of 1970 is amended by adding the following new sentence at the end thereof: “With respect to fiscal year 1982, the Secretary may not issue obligations under this section in an aggregate amount in excess of $33,250,000.”.</content> </section> <section> <heading class="centered smallCaps">purchaser-broker arrangement</heading><num value="339G"><inline class="smallCaps">Sec</inline>. 339G. </num><content>Title V of the National Housing Act is amended by adding the following new section at the end thereof: <quotedContent> <section> <heading class="centered smallCaps">“purchaser-broker arrangement</heading><num value="532">“<inline class="smallCaps">Sec</inline>. 532. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1735f–10">12 USC 1735f–10</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1707">12 USC 1707</ref>.</p></sidenote> <content class="inline">In carrying out the provisions of title II of this Act with respect to insuring mortgages secured by a one- to four-family residence, the Secretary may not exclude from the principal amount which may be insured under such title any sum solely on the basis that such sum is to be paid by the purchaser to a broker who has been the purchaser’s agent in the purchase of the residence, but the principal amount of the mortgage, when such sum is added, shall not exceed the limitation as to maximum mortgage amount provided in title II.”.</content> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">mortgage insurance for hospitals</heading><num value="339H"><inline class="smallCaps">Sec</inline>. 339H. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715z–7">12 USC 1715z–7</ref>.</p></sidenote> <content class="inline">Section 242(d)(5) of the National Housing Act is amended by adding at the end thereof the following: “<quotedText>This paragraph shall not limit the authority of the Secretary to approve a mortgage increase on any mortgage eligible for insurance under this paragraph at any time prior to final endorsement of the loan for insurance; except that such mortgage increase may not be approved for the cost of constructing any improvements not included in the original plans and specifications approved by the Department of Health and Human Services unless approved by the Secretary of Housing and Urban Development and by the Secretary of Health and Human Services.</quotedText>”.</content> </section> </part> <part><num value="4">PART 4—</num><heading>FLOOD, CRIME, AND RIOT INSURANCE</heading> <section> <heading class="centered smallCaps">flood insurance</heading><num value="341"><inline class="smallCaps">Sec</inline>. 341. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 1376(c) of the National Flood Insurance Act of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1639">94 Stat. 1639</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s4127">42 USC 4127</ref>.</p></sidenote>1968 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>and</quotedText>” after “<quotedText>1980,</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting the following before the period at the end thereof “<quotedText>, and not to exceed $42,600,000 for the fiscal year 1982</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s4026">42 USC 4026</ref>.</p></sidenote> <content class="inline">Section 1319 of the National Flood Insurance Act of 1968 is amended by striking out “<quotedText>September 30, 1981</quotedText>” and inserting in lieu thereof “<quotedText>September 30, 1982</quotedText>”.</content></paragraph> <page identifier="/us/stat/95/419">95 STAT. 419</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 1336(a) of such Act is amended by striking out “<quotedText>September <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s4056">42 USC 4056</ref>.</p></sidenote>30, 1981</quotedText>” and inserting in lieu thereof “<quotedText>September 30, 1982</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 1310(a) of such Act is amended by inserting “<quotedText>as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s4017">42 USC 4017</ref>.</p></sidenote>described in subsection (f)</quotedText>” after “<quotedText>which shall be available</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 1310 of such Act is amended by adding the following new subsection at the end thereof: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><content>The fund shall be available, with respect to any fiscal year beginning on or after October 1, 1981, only to the extent approved in appropriation Acts; except that the fund shall be available for the purpose described in subsection (d)(1) without such approval.”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num><content>Chapter I of such Act is amended by adding the following new section at the end thereof: <quotedContent> <section> <heading class="centered smallCaps">“undeveloped coastal barriers</heading><num value="1321">“<inline class="smallCaps">Sec</inline>. 1321. </num><subsection class="inline"><num value="a">(a) </num><content>No new flood insurance coverage shall be provided <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s4028">42 USC 4028</ref>.</p></sidenote>under this title on or after October 1, 1983, for any new construction or substantial improvements of structures located on undeveloped coastal barriers which shall be designated by the Secretary of the Interior.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><chapeau>the term ‘coastal barrier’ means— <sidenote><p class="indent0 firstIndent0 fontsize8">“Coastal barrier.”</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><chapeau>a depositional geologic feature (such as a bay barrier, tombolo, barrier spit, or barrier island) which—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>consists of unconsolidated sedimentary materials,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>is subject to wave, tidal, and wind energies, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>protects landward aquatic habitats from direct wave attack; and</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>all associated aquatic habitats including the adjacent wetlands, marshes, estuaries, inlets, and nearshore waters;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>a coastal barrier or any portion thereof shall be treated as an undeveloped coastal barrier for purposes of subsection (a) only if there are few manmade structures on the barrier or portion thereof and these structures and man’s activities on the barrier do not significantly impede geomorphic and ecological processes; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>a coastal barrier which is included within the boundaries of an area established under Federal, State, or local law, or held by a qualified organization as defined in section 170(h)(3) of the Internal Revenue Code of 1954, primarily for wildlife refuge, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s170">26 USC 170</ref>.</p></sidenote>sanctuary, recreational, or natural resource conservation purposes shall not be designated as an undeveloped coastal barrier for purposes of subsection (a).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>A federally insured financial institution may make loans secured by structures which are not eligible for flood insurance under this title by reason of subsection (a).”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The Secretary of the Interior shall conduct a study for the <sidenote><p class="indent0 firstIndent0 fontsize8">Study.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s4028">42 USC 4028 note</ref>.</p><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote>purpose of designating the undeveloped coastal barriers which will be affected by the amendment made by paragraph (1). Not later than one year after the date of enactment of this Act, the Secretary shall transmit to the Congress a report of the findings and conclusions of such study together with a proposed designation of the undeveloped coastal barriers and any recommendation regarding the definition of the term “coastal barrier” as enacted by such amendment.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Section 1345 of such Act is amended by adding at the end thereof <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s4081">42 USC 4081</ref>.</p></sidenote>the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>The Director of the Federal Emergency Management Agency shall hold any agent or broker selling or undertaking to sell flood <page identifier="/us/stat/95/420">95 STAT. 420</page>insurance under this title harmless from any judgment for damages against such agent or broker as a result of any court action by a policyholder or applicant arising out of an error or omission on the part of the Federal Emergency Management Agency, and shall provide any such agent or broker with indemnification, including court costs and reasonable attorney fees, arising out of and caused by an error or omission on the part of the Federal Emergency Management Agency and its contractors. The Director of the Federal Emergency Management Agency may not hold harmless or indemnify an agent or broker for his or her error or omission.”.</content> </subsection> </quotedContent> </content> </subsection> </section> <section> <heading class="centered smallCaps">crime and riot insurance</heading><num value="342"><inline class="smallCaps">Sec</inline>. 342. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1749bbb">12 USC 1749bbb</ref>.</p></sidenote> <chapeau class="inline">Section 1201(b) of the National Housing Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>September 30, 1981</quotedText>” in paragraph (1) and inserting in lieu thereof “<quotedText>September 30, 1982</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>September 30, 1984</quotedText>” in paragraph (1)(A) and inserting in lieu thereof “<quotedText>September 30, 1985</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1749bbb–3">12 USC 1749bbb–3</ref>.</p></sidenote> <chapeau class="inline">Section 1211(b) of the National Housing Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>and</quotedText>” at the end of paragraph (9);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>; and</quotedText>” at the end of paragraph (10) and inserting in lieu thereof a period; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out paragraph (11).</content></paragraph> </subsection> </section> </part> <part><num value="5">PART 5—</num><heading>RURAL HOUSING</heading> <section> <heading class="centered smallCaps">authorizations</heading><num value="351"><inline class="smallCaps">Sec</inline>. 351. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1667">94 Stat. 1667</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1483">42 USC 1483</ref>.</p></sidenote> <chapeau class="inline">Section 513 of the Housing Act of 1949 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>not to exceed $3,797,600,000 with respect to the fiscal year ending September 30, 1981</quotedText>” in subsection (a) and inserting in lieu thereof “<quotedText>not to exceed $3,700,600,000 with respect to the fiscal year ending September 30, 1982</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>not less than $3,120,000,000</quotedText>” in subsection (a)(1) and inserting in lieu thereof “<quotedText>not less than $3,170,000,000</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out “<quotedText>not more than $100,000,000</quotedText>” in subsection (a)(4) and inserting in lieu thereof “<quotedText>none</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by striking out subsection (b)(2) and inserting in lieu thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>not to exceed $50,000,000 for loans and grants pursuant to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1474">42 USC 1474</ref>.</p></sidenote>section 504 for the fiscal year ending September 30, 1982, of which not more than $25,000,000 shall be available for grants;”;</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>by striking out subsection (b)(3) and inserting in lieu thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>not to exceed $25,000,000 for financial assistance pursuant <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1486">42 USC 1486</ref>.</p></sidenote>to section 516 for the fiscal year ending September 30, 1982;”;</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>by striking out “<quotedText>September 30, 1981</quotedText>” in subsection (b)(4) and inserting in lieu thereof “<quotedText>September 30, 1982</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>by striking out “<quotedText>and</quotedText>” at the end of subsection (b)(4), by striking out the period at the end of subsection (b)(5) and inserting in lieu thereof “<quotedText>; and</quotedText>”, and by adding at the end thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1479">42 USC 1479</ref>.</p></sidenote> <content class="inline">not to exceed $2,000,000 for the purposes of section 509(c) for the fiscal year ending September 30, 1982.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1668">94 Stat. 1668</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1485">42 USC 1485</ref>.</p></sidenote> <content class="inline">Section 515(b)(5) of such Act is amended by striking out “<quotedText>September 30, 1981</quotedText>” and inserting in lieu thereof “<quotedText>September 30, 1982</quotedText>”.</content> </subsection> <page identifier="/us/stat/95/421">95 STAT. 421</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 517(a)(1) of such Act is amended by striking out “<quotedText>September <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1668">94 Stat. 1668</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1487">42 USC 1487</ref>.</p></sidenote>30, 1981</quotedText>” and inserting in lieu thereof “<quotedText>September 30, 1982</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><chapeau>Section 521(a)(2)(D) of such Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1668">94 Stat. 1668</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1490a">42 USC 1490a</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking “<quotedText>$493,000,000</quotedText>” and inserting in lieu thereof “<quotedText>$398,000,000</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>1981, except that</quotedText>” and all that follows through the period at the end thereof and inserting in lieu thereof “<quotedText>1982.</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><chapeau>Section 523 of such Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1668">94 Stat. 1668</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1490c">42 USC 1490c</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>September 30, 1981</quotedText>” each place it appears in subsection (f) and inserting in lieu thereof “<quotedText>September 30, 1982</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>not to exceed $2,500,000 for fiscal year 1981</quotedText>” in the first sentence of subsection (g) and inserting in lieu thereof “<quotedText>not to exceed $3,000,000 for fiscal year 1982</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by inserting the following after “<quotedText>shall be available</quotedText>” in the second sentence of subsection (g): “, to the extent approved in appropriation Acts,”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by inserting the following before the period at the end of the second sentence of subsection (g): “; except that not more than $5,000,000 may be made available during fiscal year 1982”.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">interest subsidy program</heading><num value="352"><inline class="smallCaps">Sec</inline>. 352. </num><content>Section 521(a)(1)(B) of the Housing Act of 1949 is amended <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1669">94 Stat. 1669</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1490a">42 USC 1490a</ref>.</p></sidenote>by striking out “<quotedText>shall</quotedText>” and inserting in lieu thereof “<quotedText>may</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">reports</heading><num value="353"><inline class="smallCaps">Sec</inline>. 353. </num><chapeau>The Secretary of Agriculture shall transmit a report to <sidenote><p class="indent0 firstIndent0 fontsize8">Transmittal to Congress.</p></sidenote>the Congress not later than March 1, 1982, setting forth—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>various options for presenting the budget of the Farmers Home Administration and alternatives to the use of Federal Financing Bank financing for rural housing programs;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>workable definitions of “low income” which will target Farmers Home Administration housing assistance programs to a population substantially equivalent to the population served by the Department of Housing and Urban Development’s assisted housing programs;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>the effect of a requirement that 30 per centum of assistance provided by the Farmers Home Administration be provided to families with incomes at 50 per centum of area median income and recommendations for contribution requirements which will achieve equity with the contribution requirements of the Department of Housing and Urban Development’s assisted housing programs;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>recommendations for ensuring that subsidy levels for assisted families are minimized and that assisted families with similar circumstances in different regions of the country are treated equally; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>the Farmers Home Administration’s efforts to minimize the cost of housing subsidized under its programs and the Farmers Home Administration’s use of existing lower cost housing technology.</content></paragraph> </section> </part> <page identifier="/us/stat/95/422">95 STAT. 422</page> <part><num value="6">PART 6—</num><heading><sidenote><p class="indent0 firstIndent0 fontsize8">Multifamily Mortgage Foreclosure Act of 1981.</p></sidenote>MULTIFAMILY MORTGAGE FORECLOSURE</heading> <section> <heading class="centered smallCaps">short title</heading><num value="361"><inline class="smallCaps">Sec</inline>. 361. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3701">12 USC 3701 note</ref>.</p></sidenote> <content class="inline">This part may be cited as the “<shortTitle role="part">Multifamily Mortgage Foreclosure Act of 1981</shortTitle>”.</content> </section> <section> <heading class="centered smallCaps">findings and purpose</heading><num value="362"><inline class="smallCaps">Sec</inline>. 362. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3701">12 USC 3701</ref>.</p></sidenote> <chapeau class="inline">The Congress finds that—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>disparate State laws under which the Secretary of Housing and Urban Development forecloses real estate mortgages which the Secretary holds pursuant to title II of the National Housing <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1707">12 USC 1707</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1452b">42 USC 1452b</ref>.</p></sidenote>Act or section 312 of the Housing Act of 1964 covering multiunit residential and nonresidential properties burden the programs administered by the Secretary pursuant to these authorities, and cause detriment to the residents of the affected projects and the community generally;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>long periods to complete the foreclosure of these mortgages under certain State laws lead to deterioration in the condition of the properties involved; necessitate substantial Federal management and holding expenditures; increase the risk of vandalism, fire loss, depreciation, damage, and waste with respect to the properties; and adversely affect the residents of the projects and the neighborhoods in which the properties are located;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>these conditions seriously impair the Secretary’s ability to protect the Federal financial interest in the affected properties and frustrate attainment of the objectives of the underlying Federal program authorities, as well as the national housing goal of “a decent home and a suitable living environment for every American family”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>application of State redemption periods to these mortgages following their foreclosure would impair the salability of the properties involved and discourage their rehabilitation and improvement, thereby compounding the problems referred to in clause (3);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>the availability of a uniform and more expeditious procedure for the foreclosure of these mortgages by the Secretary and continuation of the practice of not applying postsale redemption periods to such mortgages will tend to ameliorate these conditions; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>providing the Secretary with a nonjudicial foreclosure procedure will reduce unnecessary litigation by removing many foreclosures from the courts where they contribute to overcrowded calendars.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The purpose of this part is to create a uniform Federal foreclosure remedy for multiunit residential and nonresidential mortgages held by the Secretary of Housing and Urban Development pursuant to title II of the National Housing Act or section 312 of the Housing Act of 1964.</content> </subsection> </section> <section> <heading class="centered smallCaps">definitions</heading><num value="363"><inline class="smallCaps">Sec</inline>. 363. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3702">12 USC 3702</ref>.</p></sidenote> <chapeau class="inline">As used in this part—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>“mortgage” means a deed of trust, mortgage, deed to secure debt, security agreement, or any other form of instrument under which any interest in property, real, personal or mixed, or any interest in property including leaseholds, life estates, reversionary interests, and any other estates under applicable State law, is <page identifier="/us/stat/95/423">95 STAT. 423</page>conveyed in trust, mortgaged, encumbered, pledged, or otherwise rendered subject to a lien, for the purpose of securing the payment of money or the performance of an obligation;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>“multifamily mortgage” means a mortgage held by the Secretary pursuant to title II of the National Housing Act or section 312 of the Housing Act of 1964 covering any property, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1707">12 USC 1707</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1452b">12 USC 1452b</ref>.</p></sidenote>except a property on which there is located a one- to four-family residence;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>“mortgage agreement” means the note or debt instrument and the mortgage instrument, deed of trust instrument, trust deed, or instrument or instruments creating the mortgage, including any instrument incorporated by reference therein (including any applicable regulatory agreement), and any instrument or agreement amending or modifying any of the foregoing;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>“mortgagor” means the obligor, grantor, or trustor named in the mortgage agreement and, unless the context otherwise indicates, includes the current owner of record of the security property whether or not personally liable on the mortgage debt;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>“person” includes any individual, group of individuals, association, partnership, corporation, or organization;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>“record” and “recorded” include “register” and “registered” in the instance of registered land;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>“security property” means the property, real, personal or mixed, or an interest in property, including leaseholds, life estates, reversionary interests, and any other estates under applicable State law, together with fixtures and other interests subject to the lien of the mortgage under applicable State law;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>“State” means the several States, the District of Columbia, the Commonwealth of Puerto Rico, the territories and possessions of the United States, and the Trust Territory of the Pacific Islands, and Indian tribes as defined by the Secretary;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">(9) </num><content>“county” means county as defined in section 2 of title I, United States Code; and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t1/s2">1 USC 2</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">(10) </num><content>“Secretary” means the Secretary of Housing and Urban Development.</content></paragraph> </section> <section> <heading class="centered smallCaps">applicability</heading><num value="364"><inline class="smallCaps">Sec</inline>. 364. </num><content>Multifamily mortgages held by the Secretary encumbering <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3703">12 USC 3703</ref>.</p></sidenote>real estate located in any State may be foreclosed by the Secretary in accordance with this part, or pursuant to other foreclosure procedures available, at the option of the Secretary.</content> </section> <section> <heading class="centered smallCaps">designation of foreclosure commissioner</heading><num value="365"><inline class="smallCaps">Sec</inline>. 365. </num><content>A foreclosure commissioner or commissioners designated <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3704">12 USC 3704</ref>.</p></sidenote>pursuant to this part shall have a nonjudicial power of sale as provided in this part. Where the Secretary is the holder of a multifamily mortgage, the Secretary may designate a foreclosure commissioner and, with or without cause, may designate a substitute foreclosure commissioner to replace a previously designated foreclosure commissioner, by executing a duly acknowledged, written designation stating the name and business or residential address of the commissioner or substitute commissioner. The designation shall be effective upon execution. Except as provided in section 368(b), a copy of the designation shall be mailed with each copy of the notice of default and foreclosure sale served by mail in accordance with section 369(1). The foreclosure commissioner, if a natural person, shall be a resident of the State in which the security property is located and, if <page identifier="/us/stat/95/424">95 STAT. 424</page>not a natural person, the foreclosure commissioner must be duly authorized to transact business under the laws of the State in which the security property is located. The foreclosure commissioner shall be a person who is responsible, financially sound and competent to conduct the foreclosure. More than one foreclosure commissioner may be designated. If a natural person is designated as foreclosure commissioner or substitute foreclosure commissioner, such person shall be designated by name, except that where such person is designated in his or her capacity as an official or employee of the government of the State or subdivision thereof in which the security property is located, such person may be designated by his or her unique title or position instead of by name. The Secretary shall be a guarantor of payment of any judgment against the foreclosure commissioner for damages based upon the commissioner’s failure properly to perform the commissioner’s duties. As between the Secretary and the mortgagor, the Secretary shall bear the risk of any financial default by the foreclosure commissioner. In the event that the Secretary makes any payment pursuant to the preceding two sentences, the Secretary shall be fully subrogated to the rights satisfied by such payment.</content> </section> <section> <heading class="centered smallCaps">prerequisites to foreclosure</heading><num value="366"><inline class="smallCaps">Sec</inline>. 366. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3705">12 USC 3705</ref>.</p></sidenote> <content class="inline">Foreclosure by the Secretary under this part of a multifamily mortgage may be commenced, as provided in section 368, upon the breach of a covenant or condition in the mortgage agreement for which foreclosure is authorized under the mortgage, except that no such foreclosure may be commenced unless any previously pending proceeding, judicial or nonjudicial, separately instituted by the Secretary to foreclose the mortgage other than under this part has been withdrawn, dismissed, or otherwise terminated. No such separately instituted foreclosure proceeding on the mortgage shall be instituted by the Secretary during the pendency of foreclosure pursuant to this part. Nothing in this part shall preclude the Secretary from enforcing any right, other than foreclosure, under applicable State law, including any right to obtain a monetary judgment. Nothing in this part shall preclude the Secretary from foreclosing under this part where the Secretary has obtained or is seeking any other remedy available pursuant to Federal or State law or under the mortgage agreement, including, but not limited to, the appointment of a receiver, mortgagee-in-possession status or relief under an assignment of rents.</content> </section> <section> <heading class="centered smallCaps">notice of default and foreclosure sale</heading><num value="367"><inline class="smallCaps">Sec</inline>. 367. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3706">12 USC 3706</ref>.</p></sidenote> <chapeau class="inline">The notice of default and foreclosure sale to be served in accordance with this part shall be subscribed with the name and address of the foreclosure commissioner and the date on which subscribed, and shall set forth the following information:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the names of the Secretary, the original mortgagee and the original mortgagor;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>the street address or a description of the location of the security property, and a description of the security property, or so much thereof as is to be offered for sale, sufficient to identify the property to be sold;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>the date of the mortgage, the office in which the mortgage is recorded, and the liber and folio or other description of the location of recordation of the mortgage;</content></paragraph> <page identifier="/us/stat/95/425">95 STAT. 425</page> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>the failure to make payment, including the due date of the earliest installment payment remaining wholly unpaid as of the date the notice is subscribed, or the description of other default or defaults upon which foreclosure is based, and the acceleration of the secured indebtedness;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>the date, time, and place of the foreclosure sale;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>a statement that the foreclosure is being conducted pursuant to this part;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>the types of costs, if any, to be paid by the purchaser upon transfer of title; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>the amount and method of deposit to be required at the foreclosure sale (except that no deposit shall be required of the Secretary), the time and method of payment of the balance of the foreclosure purchase price and other appropriate terms of sale.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Except as provided in paragraph (2)(A), the Secretary may require, as a condition and term of sale, that the purchaser at a foreclosure sale under this part agree to continue to operate the security property in accordance with the terms, as appropriate, of the loan program under section 312 of the Housing Act of 1964, the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1452b">42 USC 1452b</ref>.</p></sidenote>program under which insurance under title II of the National Housing Act was originally provided with respect to such property, or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1707">12 USC 1707</ref>.</p></sidenote>any applicable regulatory or other agreement in effect with respect to such property immediately prior to the time of foreclosure sale.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>In any case where the majority of the residential units in a property subject to such a sale are occupied by residential tenants at the time of the sale, the Secretary shall require, as a condition and term of sale, any purchaser (other than the Secretary) to operate the property in accordance with such terms, as appropriate, of the programs referred to in paragraph (1).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>In any case where the Secretary is the purchaser of a multifamily project, the Secretary shall manage and dispose of such project in accordance with the provisions of section 203 of the Housing and Community Development Amendments of 1978. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1715z–11">12 USC 1715z–11</ref>.</p></sidenote></content></subparagraph> </paragraph> </subsection> </section> <section> <heading class="centered smallCaps">commencement of foreclosure</heading><num value="368"><inline class="smallCaps">Sec</inline>. 368. </num><subsection class="inline"><num value="a">(a) </num><content>If the Secretary as holder of a multifamily mortgage <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3707">12 USC 3707</ref>.</p></sidenote>determines that the prerequisites to foreclosure set forth in section 366 are satisfied, the Secretary may request the foreclosure commissioner to commence foreclosure of the mortgage. Upon such request, the foreclosure commissioner shall commence foreclosure of the mortgage, by commencing service of a notice of default and foreclosure sale in accordance with section 369.</content> </subsection> <paragraph class="firstIndent1 fontsize10"><num value="b">(b) </num><content>Subsequent to commencement of a foreclosure under this part, the Secretary may designate a substitute foreclosure commissioner at any time up to forty-eight hours prior to the time of foreclosure sale, and the foreclosure shall continue without prejudice, unless the substitute commissioner, in his or her sole discretion, finds that continuation of the foreclosure sale will unfairly affect the interests of the mortgagor. In the event that the substitute commissioner makes such a finding, the substitute commissioner shall cancel the foreclosure sale, or adjourn such sale in the manner provided in section 369B(c). Upon designation of a substitute foreclosure commissioner, a copy of the written notice of such designation referred to in section 365 shall be served upon the persons set forth in section 369(1) of this part (1) by mail as provided in such section 369 (except that the minimum time periods between mailing and the date of foreclosure sale prescribed in such section shall not apply to notice by mail <page identifier="/us/stat/95/426">95 STAT. 426</page>pursuant to this subsection), or (2) in any other manner, which in the substitute commissioner’s sole discretion, is conducive to achieving timely notice of such substitution. In the event a substitute foreclosure commissioner is designated less than forty-eight hours prior to the time of the foreclosure sale, the pending foreclosure shall be terminated and a new foreclosure shall be commenced by commencing service of a new notice of default and foreclosure sale.</content></paragraph> </section> <section> <heading class="centered smallCaps">service of notice of default and foreclosure sale</heading><num value="369"><inline class="smallCaps">Sec</inline>. 369. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3708">12 USC 3708</ref>.</p></sidenote> <chapeau class="inline">The foreclosure commissioner shall serve the notice of default and foreclosure sale provided for in section 367 upon the following persons and in the following manner, and no additional notice shall be required to be served notwithstanding any notice requirements of any State or local law—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Notice by mail</inline>.—</heading><chapeau>The notice of default and foreclosure sale, together with the designation required by section 365, shall be sent by certified or registered mail, postage prepaid and return receipt requested, to the following persons:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the current security property owner of record, as the record exists forty-five days prior to the date originally set for foreclosure sale, whether or not the notice describes a sale adjourned as provided in this part;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>the original mortgagor and all subsequent mortgagors of record or other persons who appear of record or in the mortgage agreement to be liable for part or all of the mortgage debt, as the record exists forty-five days prior to the date originally set for foreclosure sale, whether or not the notice describes a sale adjourned as provided in this part, except any such mortgagors or persons who have been released; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>all persons holding liens of record upon the security property, as the record exists forty-five days prior to the date originally set for foreclosure sale, whether or not the notice describes a sale adjourned as provided in this part.</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">Notice under clauses (A) and (B) of this paragraph shall be mailed at least twenty-one days prior to the date of foreclosure sale, and shall be mailed to the owner or mortgagor at the address stated in the mortgage agreement, or, if none, to the address of the security property, or, at the discretion of the foreclosure commissioner, to any other address believed to be that of such owner or mortgagor. Notice under clause (C) of this paragraph shall be mailed at least ten days prior to the date of foreclosure sale, and shall be mailed to each such lienholder’s address as stated of record or, at the discretion of the foreclosure commissioner, to any other address believed to be that of such lienholder. Notice by mail pursuant to this subsection or section 368(b) of this part shall be deemed duly given upon mailing, whether or not received by the addressee and whether or not a return receipt is received or the letter is returned.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Publication</inline>.—</heading><content>A copy of the notice of default and foreclosure sale shall be published, as provided herein, once a week during three successive calendar weeks, and the date of last publication shall be not less than four nor more than twelve days prior to the sale date. The information included in the notice of default and foreclosure sale pursuant to section 367(a)(4) may be omitted, in the foreclosure commissioner’s discretion, from the <sidenote><p class="indent0 firstIndent0 fontsize8">Newspaper notice.</p></sidenote>published notice. Such publication shall be in a newspaper or <page identifier="/us/stat/95/427">95 STAT. 427</page>newspapers having general circulation in the county or counties in which the security property being sold is located. To the extent practicable, the newspaper or newspapers chosen shall be a newspaper or newspapers, if any is available, having circulation conducive to achieving notice of foreclosure by publication. Should there be no newspaper published at least weekly which <sidenote><p class="indent0 firstIndent0 fontsize8">Posting in public place.</p></sidenote>has a general circulation in one of the counties in which the security property being sold is located, copies of the notice of default and foreclosure sale shall be posted in at least three public places in each such county at least twenty-one days prior to the date of sale.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">Posting</inline>.—</heading><content>A copy of the notice of default and foreclosure sale shall be posted in a prominent place at or on the real property to be sold at least seven days prior to the foreclosure sale, and entry upon the premises for this purpose shall be privileged as against all persons. If the property consists of two or more noncontiguous parcels of land, a copy of the notice of default and foreclosure sale shall be posted in a prominent place on each such parcel. If the security property consists of two or more separate buildings, a copy of the notice of default and foreclosure sale shall be posted in a prominent place on each such building. Posting at or on the premises shall not be required where the foreclosure commissioner, in the commissioner’s sole discretion, finds that the act of posting will likely cause a breach of the peace or that posting may result in an increased risk of vandalism or damage to the property.</content></paragraph> </section> <section> <heading class="centered smallCaps">presale reinstatement</heading><num value="369A"><inline class="smallCaps">Sec</inline>. 369A. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Except as provided in sections 368(b) and 369B(c), the <sidenote><p class="indent0 firstIndent0 fontsize8">Sale cancellation conditions.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3709">12 USC 3709</ref>.</p></sidenote>foreclosure commissioner shall withdraw the security property from foreclosure and cancel the foreclosure sale only if—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the Secretary so directs the commissioner prior to or at the time of sale;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>the commissioner finds, upon application of the mortgagor at least three days prior to the date of sale, that the default or defaults upon which the foreclosure is based did not exist at the time of service of the notice of default and foreclosure sale; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>in the case of a foreclosure involving a monetary default, there is tendered to the foreclosure commissioner before public auction is completed the entire amount of principal and interest which would be due if payments under the mortgage had not been accelerated; (B) in the case of a foreclosure involving a nonmonetary default, the foreclosure commissioner, upon application of the mortgagor before the date of foreclosure sale, finds that such default is cured; and (C) there is tendered to the foreclosure commissioner before public auction is completed all amounts due under the mortgage agreement (excluding additional amounts which would have been due if mortgage payments had been accelerated), all amounts of expenditures secured by the mortgage and ail costs of foreclosure incurred for which payment from the proceeds of foreclosure is provided in section 369C, except that the Secretary shall have discretion to refuse to cancel a foreclosure pursuant to this paragraph (3) if the current mortgagor or owner of record has on one or more previous occasions caused a foreclosure of the mortgage, commenced pursuant to this part or otherwise, to be canceled by curing a default.</content></subparagraph> </paragraph> </subsection> <page identifier="/us/stat/95/428">95 STAT. 428</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Prior to withdrawing the security property from foreclosure in the circumstances described in subsection (a)(2) or (a)(3), the foreclosure commissioner shall afford the Secretary a reasonable opportunity to demonstrate why the security property should not be so withdrawn.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>In any case in which a foreclosure commenced under this part is canceled, the mortgage shall continue in effect as though acceleration had not occurred.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>If the foreclosure commissioner cancels a foreclosure sale under this part a new foreclosure may be subsequently commenced as provided in this part.</content> </subsection> </section> <section> <heading class="centered smallCaps">conduct of sale; adjournment</heading><num value="369B"><inline class="smallCaps">Sec</inline>. 369B. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3710">12 USC 3710</ref>.</p></sidenote> <content class="inline">The date of foreclosure sale set forth in the notice of default and foreclosure sale shall not be prior to thirty days after the due date of the earliest installment wholly unpaid or the earliest occurrence of any uncured nonmonetary default upon which foreclosure <sidenote><p class="indent0 firstIndent0 fontsize8">Public auction.</p></sidenote>is based. Foreclosure sale pursuant to this part shall be at public auction, and shall be scheduled to begin between the hours of 9 o’clock ante meridian and 4 o’clock post meridian local time on a day other than Sunday or a public holiday as defined by section 6103(a) of title 5, United States Code, or State law. The foreclosure sale shall be held at a location specified in the notice of default and foreclosure sale, which shall be a location where foreclosure real estate auctions are customarily held in the county or one of the counties in which the property to be sold is located, or at a courthouse therein, or at or on the property to be sold. Sale of security property situated in two or more counties may be held in any one of the counties in which any part of the security property is situated.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The foreclosure commissioner shall conduct the foreclosure sale in accordance with the provisions of this part and in a manner fair to both the mortgagor and the Secretary. The foreclosure commissioner shall attend the foreclosure sale in person, or, if there are two or more commissioners, at least one shall attend the foreclosure sale. In the event that no foreclosure commissioner is a natural person, the foreclosure commissioner shall cause its duly authorized employee to <sidenote><p class="indent0 firstIndent0 fontsize8">Written one-price sealed bids.</p></sidenote>attend the foreclosure sale to act on its behalf. Written one-price sealed bids shall be accepted by the foreclosure commissioner from the Secretary and other persons for entry by announcement by the commissioner at the sale. The Secretary and any other person may bid at the foreclosure sale, including the Secretary or any other person who has submitted a written one-price bid, except that the foreclosure commissioner or any relative, related business entity or employee of such commissioner or entity shall not be permitted to bid in any manner on the security property subject to foreclosure sale. The foreclosure commissioner may serve as auctioneer, or, in accordance with regulations of the Secretary, may employ an auctioneer to be paid from the commission provided for in section 369C(5).</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The foreclosure commissioner shall have discretion, prior to or at the time of sale, to adjourn or cancel the foreclosure sale if the commissioner determines, in the commissioner’s sole discretion, that circumstances are not conducive to a sale which is fair to the mortgagor and the Secretary or that additional time is necessary to determine whether the security property should be withdrawn from foreclosure as provided in section 369A. The foreclosure commissioner may adjourn a sale to a later hour the same day without the giving of further notice, or may adjourn the foreclosure sale for not <page identifier="/us/stat/95/429">95 STAT. 429</page>less than nine nor more than twenty-four days, in which case the commissioner shall serve a notice of default and foreclosure sale revised to recite that the foreclosure sale has been adjourned to a specified date and to include any corrections the foreclosure commissioner deems appropriate. Such notice shall be served by publication, mailing and posting in accordance with section 369, except that publication may be made on any of three separate days prior to the revised date of foreclosure sale, and mailing may be made at any time at least seven days prior to the date to which the foreclosure sale has been adjourned.</content> </subsection> </section> <section> <heading class="centered smallCaps">foreclosure costs</heading><num value="369C"><inline class="smallCaps">Sec</inline>. 369C. </num><chapeau>The following foreclosure costs shall be paid from the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3711">12 USC 3711</ref>.</p></sidenote>sale proceeds prior to satisfaction of any other claim to such sale proceeds:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>necessary advertising costs and postage incurred in giving notice pursuant to sections 369 and 369B;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>mileage for posting notices and for the foreclosure commissioner’s attendance at the sale at the rate provided in section 1921 of title 28, United States Code, for mileage by the most reasonable road distance;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>reasonable and necessary costs actually incurred in connection with any necessary search of title and lien records;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>necessary out-of-pocket costs incurred by the foreclosure commissioner to record documents; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>a commission for the foreclosure commissioner for the conduct of the foreclosure to the extent authorized by regulations issued by the Secretary.</content></paragraph> </section> <section> <heading class="centered smallCaps">disposition of sale proceeds</heading><num value="369D"><inline class="smallCaps">Sec</inline>. 369D. </num><chapeau>Money realized from a foreclosure sale shall be made <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3712">12 USC 3712</ref>.</p></sidenote>available for obligation and expenditure—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>first to cover the costs of foreclosure provided for in section 369C;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>then to pay valid tax liens or assessments prior to the mortgage;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>then to pay any liens recorded prior to the recording of the mortgage which are required to be paid in conformity with the terms of sale in the notice of default and foreclosure sale;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>then to service charges and advancements for taxes, assessments, and property insurance premiums;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>then to the interest;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>then to the principal balance secured by the mortgage (including expenditures for the necessary protection, preservation, and repair of the security property as authorized under the mortgage agreement and interest thereon if provided for in the mortgage agreement); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>then to late charges.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">Any surplus after payment of the foregoing shall be paid to holders of <sidenote><p class="indent0 firstIndent0 fontsize8">Surplus proceeds.</p></sidenote>liens recorded after the mortgage and then to the appropriate mortgagor. If the person to whom such surplus is to be paid cannot be located, or if the surplus available is insufficient to pay all claimants and the claimants cannot agree on the allocation of the surplus, or if any person claiming an interest in the mortgage proceeds does not agree that some or all of the sale proceeds should be paid to a claimant as provided in this section, that part of the sale proceeds in question may be deposited by the foreclosure commissioner with an <page identifier="/us/stat/95/430">95 STAT. 430</page>appropriate official or court authorized under law to receive disputed funds in such circumstances. If such a procedure for the deposit of disputed funds is not available, and the foreclosure commissioner files a bill of interpleader or is sued as a stakeholder to determine entitlement to such funds, the foreclosure commissioner’s necessary costs in taking or defending such action shall be deductible from the disputed funds.</continuation> </section> <section> <heading class="centered smallCaps">transfer of title and possession</heading><num value="369E"><inline class="smallCaps">Sec</inline>. 369E. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Deeds.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3713">12 USC 3713</ref>.</p></sidenote> <content class="inline">The foreclosure commissioner shall deliver a deed or deeds to the purchaser or purchasers and obtain the balance of the purchase price in accordance with the terms of sale provided in the notice of default and foreclosure sale.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Subject to subsection (c), the foreclosure deed or deeds shall convey all of the right, title, and interest in the security property covered by the deed which the Secretary as holder, the foreclosure commissioner, the mortgagor, and any other persons claiming by, through, or under them, had on the date of execution of the mortgage, together with all of the right, title, and interest thereafter acquired by any of them in such property up to the hour of sale, and no judicial proceeding shall be required ancillary or supplementary to the procedures provided in this part to assure the validity of the conveyance or confirmation of such conveyance.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>A purchaser at a foreclosure sale held pursuant to this part shall be entitled to possession upon passage of title to the mortgaged property, subject to an interest or interests senior to that of the mortgage and subject to the terms of any lease of a residential tenant for the remaining term of the lease or for one year, whichever period is shorter. Any other person remaining in possession after the sale and any residential tenant remaining in possession after the applicable period shall be deemed a tenant at sufferance.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>There shall be no right of redemption, or right of possession based upon right of redemption, in the mortgagor or others subsequent to a foreclosure pursuant to this part.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Tax.</p></sidenote> <content class="inline">When conveyance is made to the Secretary, no tax shall be imposed or collected with respect to the foreclosure commissioner’s deed, whether as a tax upon the instrument or upon the privilege of conveying or transferring title to the property. Failure to collect or pay a tax of the type and under the circumstances stated in the preceding sentence shall not be grounds for refusing to record such a deed, for failing to recognize such recordation as imparting notice or for denying the enforcement of such a deed and its provisions in any State or Federal court.</content> </subsection> </section> <section> <heading class="centered smallCaps">record of foreclosure and sale</heading><num value="369F"><inline class="smallCaps">Sec</inline>. 369F. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Deed affidavit.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3714">12 USC 3714</ref>.</p></sidenote> <chapeau class="inline">To establish a sufficient record of foreclosure and sale, the foreclosure commissioner shall include in the recitals of the deed to the purchaser or prepare an affidavit or addendum to the deed stating—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>that the mortgage was held by the Secretary;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>the particulars of the foreclosure commissioner’s service of notice of default and foreclosure sale in accordance with sections 369 and 369B;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>that the foreclosure was conducted in accordance with the provisions of this part and with the terms of the notice of default and foreclosure sale;</content></paragraph> <page identifier="/us/stat/95/431">95 STAT. 431</page> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>a correct statement of the costs of foreclosure, calculated in accordance with section 369C; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>the name of the successful bidder and the amount of the successful bid.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The deed executed by the foreclosure commissioner, the foreclosure commissioner’s affidavit and any other instruments submitted for recordation in relation to the foreclosure of the security property under this part shall be accepted for recordation by the registrar of deeds or other appropriate official of the county or counties in which the security property is located upon tendering of payment of the usual recording fees for such instruments.</content> </subsection> </section> <section> <heading class="centered smallCaps">computation of time</heading><num value="369G"><inline class="smallCaps">Sec</inline>. 369G. </num><content>Periods of time provided for in this part shall be <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3715">12 USC 3715</ref>.</p></sidenote>calculated in consecutive calendar days including the day or days on which the actions or events occur or are to occur for which the period of time is provided and including the day on which an event occurs or is to occur from which the period is to be calculated.</content> </section> <section> <heading class="centered smallCaps">separability</heading><num value="369H"><inline class="smallCaps">Sec</inline>. 369H. </num><content>If any clause, sentence, paragraph or part of this part <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3716">12 USC 3716</ref>.</p></sidenote>shall, for any reason, be adjudged by a court of competent jurisdiction to be invalid or invalid as applied to a class of cases, such judgment shall not affect, impair, or invalidate the remainder thereof and of this part, but shall be confined in its operation to the clause, sentence, paragraph, or part thereof directly involved in the controversy in which such judgment shall have been rendered.</content> </section> <section> <heading class="centered smallCaps">regulations</heading><num value="369I"><inline class="smallCaps">Sec</inline>. 369I. </num><content>The Secretary is authorized to issue such regulations as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3717">12 USC 3717</ref>.</p></sidenote>may be necessary to carry out the provisions of this part.</content> </section> </part> <part><num value="7">PART 7—</num><heading>EFFECTIVE DATE</heading> <section> <heading class="centered smallCaps">effective date</heading><num value="371"><inline class="smallCaps">Sec</inline>. 371. </num><subsection class="inline"><num value="a">(a) </num><content>Except as otherwise provided in this subtitle, the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3701">12 USC 3701 note</ref>.</p></sidenote>provisions of this subtitle shall take effect on October 1, 1981.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The amendments made by sections 324, 325, and 326(a) shall <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, pp. 405, 406.</p></sidenote>apply only with respect to contracts entered into on and after October 1, 1981.</content> </subsection> </section> </part> </subtitle> <subtitle><num value="B">Subtitle B— </num><sidenote><p class="indent0 firstIndent0 fontsize8">Banking and Related Programs Authorization Adjustment Act.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s635">12 USC 635 note</ref>.</p></sidenote> <heading>Banking and Related Programs</heading> <section> <heading class="centered smallCaps">short title</heading><num value="380"><inline class="smallCaps">Sec</inline>. 380. </num><content>This subtitle may be cited as the “<shortTitle role="subtitle">Banking and Related Programs Authorization Adjustment Act</shortTitle>”.</content> </section> <section> <heading class="centered smallCaps">export-import bank of the united states</heading><num value="381"><inline class="smallCaps">Sec</inline>. 381. </num><subsection class="inline"><num value="A">(a) </num><chapeau>Section 7(a) of the Export-Import Bank Act of 1945 (12 U.S.C. 635e(a)) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(1)</quotedText>” after “<quotedText>Sec. 7. (a)</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding at the end thereof the following: <page identifier="/us/stat/95/432">95 STAT. 432</page> <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Within the limits of funds and borrowing authority available to the Bank pursuant to this Act, gross obligations for the principal amount of direct loans authorized by the Bank during fiscal years 1982 and 1983 shall not exceed $10,478,000,000, of which amount $5,065,000,000 is designated for fiscal year 1982 and $5,413,000,000 is designated for fiscal year 1983.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="B">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote> <chapeau class="inline">On or before December 15, 1981, the Secretary of the Treasury shall transmit a report to both Houses of the Congress regarding the status of negotiations within the Organization for Economic Cooperation and Development on improving the International Arrangement on Guidelines for Officially Supported Export Credits and on the status of any other multilateral or bilateral negotiations or discussions for the purpose of improving any other arrangements, standstills, minutes, and practices involving official export financing in which the United States participates. Such report shall include—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>an assessment of the progress, if any, that has been made in these negotiations, and of the prospects for a successful conclusion to these negotiations within a reasonable time; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>a recommendation by the Secretary of the Treasury as to whether the Congress, in order to improve the prospects for a successful conclusion to these negotiations, should enact legislation for the purpose of enhancing the ability of the Export-Import Bank of the United States to offer or support export credit fully competitive with the subsidized official export credit offered or supported by other governments.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">department of the treasury</heading><num value="382"><inline class="smallCaps">Sec</inline>. 382. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote> <chapeau class="inline">Section 5 of the Act of November 8, 1978 (92 Stat. 3092; Public Law 95–612), is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>in subsection (a), by striking out “<quotedText>$24,000,000 for fiscal year 1979 and $22,375,000 for fiscal year 1980,</quotedText>” and inserting in lieu thereof “<quotedText>$22,896,000 for fiscal year 1982, and such sums as may be necessary for each fiscal year thereafter</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>in subsection (b), by striking out “<quotedText>for fiscal year 1980 not to exceed $800,000</quotedText>” and inserting in lieu thereof “<quotedText>not to exceed $1,000,000 for fiscal year 1982, and such sums as may be necessary for each fiscal year thereafter,</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The last sentence of section 3552 of the Revised Statutes (31 U.S.C. 369) is amended to read as follows: “There are authorized to be appropriated for fiscal year 1982 not to exceed $54,706,000 for all expenditures (salaries and expenses) of the mints and assay offices not herein otherwise provided for.”.</content> </subsection> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s369">31 USC 369 note</ref>.</p></sidenote> <content class="inline">The amendment made by paragraph (1) shall take effect on October 1, 1981.</content></paragraph> </section> <section> <heading class="centered smallCaps">council on wage and price stability</heading><num value="383"><inline class="smallCaps">Sec</inline>. 383. </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Repeal.</p></sidenote> <content class="inline">Section 6 of the Council on Wage and Price Stability Act (12 U.S.C. 1904 note) is hereby repealed.</content> </section> <section> <heading class="centered smallCaps">usury provision</heading><num value="384"><inline class="smallCaps">Sec</inline>. 384. </num><content>Section 501(a)(1)(C)(vi) of the Depository Institutions Deregulation and Monetary Control Act of 1980 (12 U.S.C. 1735f–7 note) is amended by inserting “<quotedText>or a residential manufactured home</quotedText>” after “<quotedText>residential real property</quotedText>”.</content> </section> <page identifier="/us/stat/95/433">95 STAT. 433</page> <section> <heading class="centered smallCaps">reserve requirements</heading><num value="385"><inline class="smallCaps">Sec</inline>. 385. </num><subsection class="inline"><num value="a">(a) </num><content>Section 19(b)(8)(E) of the Federal Reserve Act (12 U.S.C. 461(b)(8)(E)) is amended by striking out the first two sentences thereof <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/133">94 Stat. 133</ref>.</p></sidenote>and inserting in lieu thereof the following: “<quotedText>This subparagraph applies to any depository institution that, on August 1, 1978, (i) was engaged in business as a depository institution in a State outside the continental limits of the United States, and (ii) was not a member of the Federal Reserve System at any time on or after such date. Such a depository institution shall not be required to maintain reserves against its deposits held or maintained at its offices located in a State outside the continental limits of the United States until the first day of the sixth calendar year which begins after the effective date of the Monetary Control Act of 1980.</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The third sentence of section 19(b)(8)(E) of such Act (12 U.S.C. 461(b)(8)(E)) is amended by striking out “<quotedText>its deposits</quotedText>” and inserting in lieu thereof “<quotedText>such deposits</quotedText>”.</content> </subsection> </section> </subtitle> <subtitle><num value="C">Subtitle C— </num><sidenote><p class="indent0 firstIndent0 fontsize8">National Consumer Cooperative Bank Act Amendments of 1981.</p></sidenote><heading>National Consumer Cooperative Bank Act Amendments</heading> <section> <heading class="centered smallCaps">short title</heading><num value="390"><inline class="smallCaps">Sec</inline>. 390. </num><content>This subtitle may be cited as the “<shortTitle role="subtitle">National Consumer <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3001">12 USC 3001 note</ref>.</p></sidenote>Cooperative Bank Act Amendments of 1981</shortTitle>”.</content> </section> <section> <heading class="centered smallCaps">acceleration of final government equity redemption date</heading><num value="391"><inline class="smallCaps">Sec</inline>. 391. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>The National Consumer Cooperative Bank Act (12 U.S.C. 3001 et seq.) is amended by inserting after section 115 the <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 436.</p></sidenote>following: <quotedContent> <section> <heading class="centered smallCaps">“acceleration of final government equity redemption date</heading><num value="116">“<inline class="smallCaps">Sec</inline>. 116. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><subparagraph class="inline"><num value="A">(A) </num><content>The Final Government Equity Redemption Date <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3026">12 USC 3026</ref>.</p></sidenote>shall occur on December 31, 1981, or not later than 10 days after the date of the enactment of the first Act providing for appropriations for fiscal year 1982 (other than continuing appropriations) for the Department of Housing and Urban Development and Independent Agencies, whichever occurs later.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>Not later than 5 days after the Final Government Equity <sidenote><p class="indent0 firstIndent0 fontsize8">Publication in Federal Register.</p></sidenote>Redemption Date, the Secretary of the Treasury shall publish a notice in the Federal Register indicating the day on which the Final Government Equity Redemption Date occurred.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>Before the Final Government Equity Redemption Date, the Secretary of the Treasury shall purchase all class A stock for which the Congress has appropriated funds.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>After the Final Government Equity Redemption Date, the Secretary of the Treasury shall not purchase any class A stock.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>On the Final Government Equity Redemption Date, all class A stock held by the Secretary of the Treasury on such date shall be redeemed by the Bank in exchange for class A notes which are issued by the Bank to the Secretary of the Treasury on behalf of the United States and which have a total face value equal to the total par value of the class A stock which is so redeemed, plus any unpaid dividends on such stock.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>During the period beginning on the Final Government Equity Redemption Date and ending on December 31, 1990, not less than 30 <page identifier="/us/stat/95/434">95 STAT. 434</page>percent of the revenue derived from the sale of stock by the Bank, other than the sale of class B stock or class C stock, shall be used, upon receipt, to retire class A notes.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>After December 31, 1990, the Bank shall maintain a repayment schedule for class A notes which will assure full repayment of all class A notes not later than December 31, 2020. The requirement specified in the previous sentence is in addition to the requirement regarding the redemption of class A notes which is specified in section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3014">12 USC 3014</ref>.</p></sidenote>104(c).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>The United States shall not be responsible for any obligation of the Bank which is incurred after the Final Government Equity Redemption Date.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Bylaws.</p></sidenote> <content class="inline">As soon as practicable after the date of the enactment of this section, the Board shall adopt bylaws which will assist in expediting and coordinating the activities which will occur with respect to the Final Government Equity Redemption Date.”.</content></paragraph> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3026">12 USC 3026 note</ref>.</p></sidenote> <content class="inline">The amendment made by paragraph (1) shall take effect on the date of the enactment of this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3017a">12 USC 3017a</ref>.</p></sidenote> <content class="inline">Only for purposes of section 107(a) of the National Consumer Cooperative Bank Act (12 U.S.C. 3017(a)), class A notes shall be deemed to be paid-in capital of the Bank.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3017a">12 USC 3017a note</ref>.</p></sidenote> <content class="inline">This subsection shall take effect on the day after the Final Government Equity Redemption Date.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">tax status of the sank</heading><num value="392"><inline class="smallCaps">Sec</inline>. 392. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 109 of the National Consumer Cooperative Bank Act (12 U.S.C. 3019) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>Until the Final Government Equity Redemption Date, but not thereafter, the Bank</quotedText>” and inserting in lieu thereof “<quotedText>(a) The Bank</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding at the end thereof the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>Notwithstanding any other provision of law, for purposes of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1381">26 USC 1381</ref>.</p></sidenote>subchapter T of the Internal Revenue Code of 1954—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the Bank shall be treated as a corporation operating on the cooperative basis within the meaning of section 1381(a)(2) of such Code;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Definitions.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1388">26 USC 1388</ref>.</p></sidenote> <content class="inline">the term ‘patronage dividend’, as defined in section 1388(a) of such Code includes, only as such section applies to the Bank, any patronage refunds in the form of class B or class C stock or allocated surplus that are distributed or set aside by the Bank <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3014">12 USC 3014</ref>.</p></sidenote>pursuant to section 104(i) of this Act;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>the terms ‘written notice of allocation’ and ‘qualified written notices of allocation’, as defined in sections 1388 (b) and (c) of such Code, include (to the extent of par value), only as such sections apply to the Bank, any class B or class C stock distributed by the Bank pursuant to section 104(i) of this Act and shall also include any allocated surplus set aside by the Bank pursuant to section 104(i) of this Act;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>patrons of the Bank shall be deemed to have consented under section 1388(c)(2) of such Code to the inclusion in their incomes of any qualified written notices of allocation received by such patrons from the Bank; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>any amounts required to be included in the incomes of patrons of the Bank with respect to class B or class C stock or allocated surplus shall be treated as earnings from business done by such patrons of the Bank with or for their own patrons.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <page identifier="/us/stat/95/435">95 STAT. 435</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The amendments made by subsection (a) shall take effect on the <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3019">12 USC 3019 note</ref>.</p></sidenote>day after the Final Government Equity Redemption Date.</content> </subsection> </section> <section> <heading class="centered smallCaps">board of directors</heading><num value="393"><inline class="smallCaps">Sec</inline>. 393. </num><subsection class="inline"><num value="a">(a) </num><content>Subsections (a), (b), (c), and (d) of section 103 of such Act (12 U.S.C. 3013) are amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><content>The Bank shall be governed by a Board of Directors (hereinafter in this Act referred to as the ‘Board’) which shall consist of 15 members. All members shall serve for a term of 3 years. After the expiration of the term of any member, such member may continue to serve until his successor has been elected or has been appointed and qualified. Any member appointed by the President may be removed <sidenote><p class="indent0 firstIndent0 fontsize8">Removal.</p></sidenote>for cause by the President.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>The President shall appoint, by and with the advice and <sidenote><p class="indent0 firstIndent0 fontsize8">Appointment.</p></sidenote>consent of the Senate—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>one member who shall be selected from among proprietors of small business concerns, as defined under section 3 of the Small Business Act, which are manufacturers or retailers; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s371">12 USC 371</ref>.</p></sidenote></content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>one member who shall be selected from among the officers of the agencies and departments of the United States; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>one member who shall be selected from among persons having extensive experience in the cooperative field representing low-income cooperatives eligible to borrow from the Bank.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Twelve members of the Board shall be elected by the holders of class B stock and class C stock in accordance with the provisions of subsection (d) and the bylaws of the Bank.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>On the day after the Final Government Equity Redemption <sidenote><p class="indent0 firstIndent0 fontsize8">Resignation.</p></sidenote>Date, all members of the Board of Directors of the Bank who were appointed by the President shall resign, except that—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the member who shall have been appointed by the President from among proprietors of small business concerns, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>one member who shall be designated by the President and who shall have been appointed by the President from among the officers and employees of the agencies and departments of the United States Government,</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">may continue to serve until their successors have been appointed and qualified.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Any member of the Board of Directors of the Bank who was elected by the holders of class B or class C stock before the Final Government Equity Redemption Date shall serve the remainder of the term for which such member was elected.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Any member appointed pursuant to subsection (b)(1) shall be entitled to sit on any committee of the Board, but not more than one member so appointed may sit on any one committee.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><content>All elections of members of the Board by the holders of class B stock and class C stock shall be conducted in accordance with the bylaws of the Bank. Such bylaws shall conform to the requirements of this section. Nominations for such elections shall be made by the following classes of cooperatives: (A) housing, (B) consumer goods, (C) low-income cooperatives, (D) consumer services, and (E) all other eligible cooperatives.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>Vacant shareholder directorships shall be filled so that at <sidenote><p class="indent0 firstIndent0 fontsize8">Vacant shareholder directorships.</p></sidenote>any time when there are three or more shareholder directors on the Board, there shall be at least one director representing each of the following classes of cooperatives: (i) housing cooperatives, (ii) <page identifier="/us/stat/95/436">95 STAT. 436</page>low-income cooperatives, and (ill) consumer goods and services cooperatives.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>Each nominee for a shareholder directorship of a particular class shall have at least three years experience as a director or senior officer in the class of cooperatives to be represented.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>No one class of cooperatives specified in paragraph (1) shall be represented on the Board by more than three directors.”,</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 103(h) of such Act (12 U.S.C. 3013(h)) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>in the second sentence thereof, by striking out “<quotedText>, until the Final Government Equity Redemption Date</quotedText>” and all that follows through “class B and class C stock” and inserting in lieu thereof “<quotedText>the member of the Board appointed pursuant to subsection (b)(1)(C)</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding at the end thereof the following: “<quotedText>The members of the Board who are elected by the holders of class B stock and class C stock shall be compensated in accordance with the bylaws of the Bank. All compensation and expenses paid to the members of the Board of Directors shall be paid by the Bank.</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3013">12 USC 3013 note</ref>.</p></sidenote> <content class="inline">The amendments made by subsections (a) and (b) shall take effect on the day after the Final Government Equity Redemption Date.</content> </subsection> </section> <section> <heading class="centered smallCaps">examinations and audits; conforming amendments</heading><num value="394"><inline class="smallCaps">Sec</inline>. 394. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 115 of the National Consumer Cooperative Bank Act (12 U.S.C. 3025) is amended to read as follows: <quotedContent> <section> <heading class="centered smallCaps">“examination and audit</heading><num value="115">“<inline class="smallCaps">Sec</inline>. 115. </num><content>The Farm Credit Administration and the General Accounting Office are hereby authorized and directed to examine and <sidenote><p class="indent0 firstIndent0 fontsize8">Reports to Congress.</p></sidenote>audit the Bank. Reports regarding such examinations and audits shall be promptly forwarded to both Houses of the Congress. The Bank shall reimburse the Farm Credit Administration for the costs of any examination or audit conducted by the Farm Credit Administration.”.</content> </section> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3025">12 USC 3025 note</ref>.</p></sidenote> <content class="inline">The amendment made by paragraph (1) shall take effect on the day after the Final Government Equity Redemption Date.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The second sentence of section 108(a) of such Act (12 U.S.C. 3018(a)) is amended by striking out “<quotedText>October 1, 1983</quotedText>” and inserting in lieu thereof “<quotedText>October 1, 1985</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><content>The first sentence of section 104(a) of such Act (12 U.S.C. 3014(a)) is amended by inserting “<quotedText>by other public or private investors,</quotedText>” after “<quotedText>by public bodies,</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3014">12 USC 3014 note</ref>.</p></sidenote> <content class="inline">The amendment made by paragraph (1) shall take effect on the day after the Final Government Equity Redemption Date.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num><content>The last sentence of section 102 of such Act (12 U.S.C. 3012) is amended to read as follows: “In determining whether a public offering is taking place for the purpose of the Securities Act of 1933, there shall be excluded from consideration all class B and class C stock purchases which took place prior to the date of the enactment of the National Consumer Cooperative Bank Act Amendments of 1981.”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3012">12 USC 3012 note</ref>.</p></sidenote> <content class="inline">The amendment made by paragraph (1) shall take effect on the day after the Final Government Equity Redemption Date.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><paragraph class="inline"><num value="1">(1) </num><content>The first sentence of section 105(a) of such Act (12 U.S.C. 3015(a)) is amended by striking out “<quotedText>entirely owned</quotedText>” and inserting in lieu thereof “<quotedText>primarily owned</quotedText>”.</content></paragraph> <page identifier="/us/stat/95/437">95 STAT. 437</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The amendment made by paragraph (1) shall take effect on the <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3015">12 USC 3015 note</ref>.</p></sidenote>day after the Final Government Equity Redemption Date.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>Section 105(a)(5) of such Act (12 U.S.C. 3015(a)(5)) is amended by inserting “<quotedText>(except that this requirement shall not apply to any housing cooperative in existence on March 21, 1980, which did not meet such requirement on such date)</quotedText>” after “<quotedText>one vote per person basis</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><paragraph class="inline"><num value="1">(1) </num><content>The second sentence of section 107(a) of such Act (12 U.S.C. 3017(a)) is amended by striking out “<quotedText>after consultation with the Secretary of the Treasury</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The amendment made by paragraph (1) shall take effect on the <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3017">12 USC 3017 note</ref>.</p></sidenote>day after the Final Government Equity Redemption Date.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">nonprofit corporation</heading><num value="395"><inline class="smallCaps">Sec</inline>. 395. </num><subsection class="inline"><num value="a">(a) </num><content>The National Consumer Cooperative Bank Act (12 U.S.C. 3001 et seq.) is amended by inserting after section 210 the following: <quotedContent> <section> <heading class="centered smallCaps">“establishment of nonprofit corporation</heading><num value="211">“<inline class="smallCaps">Sec</inline>. 211. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Upon the incorporation of the nonprofit corporation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3051">12 USC 3051</ref>.</p></sidenote>described in subsection (b), the Office of Self-Help Development and Technical Assistance is hereby abolished.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>If the nonprofit corporation described in subsection (b) agrees to accept the liabilities of the Office, the Bank, notwithstanding any other provision of law, shall transfer all assets, liabilities, and property of the Office to such nonprofit corporation on the day on which such nonprofit corporation is incorporated.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>Such assets shall include all sums which are appropriated to the Office by the Congress and all sums which are contained in the Account established pursuant to section 202. If any such sums are <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3042">12 USC 3042</ref>.</p></sidenote>appropriated after the date on which the transfer described in subparagraph (A) occurs, the Bank shall promptly transfer such sums to such nonprofit corporation.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>As soon as possible after the date of the enactment of this section, the Board shall establish a nonprofit corporation under the laws of the District of Columbia and, notwithstanding the laws of the District of Columbia, name the directors of such nonprofit corporation.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>Notwithstanding the laws of the District of Columbia, the Board of Directors of such nonprofit corporation shall—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>select an executive director who shall be responsible for the administration of such nonprofit corporation;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>set the compensation of such executive director and the other employees of such nonprofit corporation;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>promulgate and publish the policies of such nonprofit corporation and make such policies available at all times to eligible cooperatives; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>perform the functions specified in subparagraphs (A) and (C) of paragraph (3).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>Such nonprofit corporation shall only perform— <sidenote><p class="indent0 firstIndent0 fontsize8">Functions.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the functions which are authorized to be performed pursuant to sections 203 through 208 and section 210; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3043–3048, 3050">12 USC 3043–3048, 3050</ref>.</p></sidenote></content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>such functions as are necessary to comply with the laws under which it was incorporated in the District of Columbia; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>such functions as are necessary to remain qualified as an organization described in section 501(c)(3) of the Internal Revenue Code of 1954. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s501">26 USC 501</ref>.</p></sidenote></content></subparagraph> </paragraph> <page identifier="/us/stat/95/438">95 STAT. 438</page> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><chapeau>Notwithstanding any other provision of law—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the Bank may provide administrative or staff support to such nonprofit corporation; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>any member of the Board of Directors of the Bank may serve as a member of the Board of Directors of such nonprofit corporation.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><content>Notwithstanding any other provision of law, such nonprofit corporation shall be deemed to be, and treated as, qualified as an organization described in section 501(c)(3) of the Internal Revenue <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s501">26 USC 501</ref>.</p></sidenote>Code of 1954 from the date on which such nonprofit corporation is established under the laws of the District of Columbia until the date on which the Internal Revenue Service makes a final determination on the application which such nonprofit corporation will submit to the Internal Revenue Service seeking status as an organization qualifying under such section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>When performed by such nonprofit corporation, the functions described in subsection (b)(3)(A) shall be deemed to be performed for ‘charitable purposes’ within the meaning of section 501(c)(3) of the Internal Revenue Code of 1954.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Contributions.</p></sidenote> <chapeau class="inline">The Board of Directors of the Bank may make contributions to the nonprofit corporation in such amounts as the Board of Directors of the Bank deems appropriate, except that—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>such contributions may be made only out of the Bank’s earnings, determined in accordance with generally accepted accounting principles; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the Bank shall set aside amounts sufficient to satisfy its obligations to the Secretary of the Treasury for payments of principal and interest on class A notes and other debt before making any contributions to such nonprofit corporation.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>During any period in which the nonprofit corporation described in subsection (b) is qualified as an organization described in section 501(c)(3) of the Internal Revenue Code of 1954, contributions made by the Bank pursuant to paragraph (1) shall be treated as charitable contributions within the meaning of section 170(c)(2) of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s170">26 USC 170</ref>.</p></sidenote>Internal Revenue Code of 1954, and may be deducted notwithstanding the provisions of section 170(b)(2) of such Code.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>During any period in which the nonprofit corporation described in subsection (b) is qualified as an organization described in section 501(c)(3) of the Internal Revenue Code of 1954, contributions to such nonprofit corporation by any person shall qualify as charitable contributions, as defined in section 170(c) of such Code, for purposes of the charitable contribution deduction provided for in section 170(a) of such Code, and shall also qualify for the deductions for estate and gift tax purposes provided for in sections 2055 and 2522 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s2055/2522">26 USC 2055, 2522</ref>.</p></sidenote>of the Internal Revenue Code of 1954.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><content>Notwithstanding the laws of the District of Columbia, the Board of Directors of such nonprofit corporation shall adopt and publish its own conflict of interest rules which shall be no less stringent in effect than the conflict of interest provisions adopted by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3024">12 USC 3024</ref>.</p></sidenote>the Board of Directors of the Bank pursuant to section 114.”.</content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>The first sentence of section 202 of the National Consumer Cooperative Bank Act (12 U.S.C. 3042) is amended by striking out “<quotedText>$10,000,000 for the fiscal year ending September 30, 1979, and for the next two succeeding fiscal years an aggregate amount not to exceed $65,000,000, for the purpose of making advances under section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3043">12 USC 3043</ref>.</p></sidenote>203 of this Act</quotedText>” and by inserting in lieu thereof “<quotedText>for the purpose of making advances under section 203 of this Act an amount not to exceed $14,000,000 for fiscal year 1982</quotedText>”.</content></paragraph> <page identifier="/us/stat/95/439">95 STAT. 439</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 104(a) of such Act (12 U.S.C. 3014(a)) is amended by <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote>striking out the second and third sentences thereof and inserting in lieu thereof the following: “<quotedText>There are authorized, to be appropriated not to exceed $47,000,000 for fiscal year 1982 for purposes of purchasing class A stock.</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The amendments made by paragraphs (1) and (2) shall take <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3014">12 USC 3014 note</ref>.</p></sidenote>effect on October 1, 1981.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">conforming amendments; definitions</heading><num value="396"><inline class="smallCaps">Sec</inline>. 396. </num><subsection class="inline"><num value="a">(a) </num><content>For purposes of this subtitle, the term “Final Government <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3012">12 USC 3012 note</ref>.</p></sidenote>Equity Redemption Date” shall have the same meaning given such term in section 101(5) of the National Consumer Cooperative Bank Act (12 U.S.C. 3011(5)).</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The first sentence of section 101 of the National Consumer Cooperative Bank Act (12 U.S.C. 3011) is amended to read as follows: “The Congress of the United States hereby creates and charters a body corporate to be known as the National Consumer Cooperative Bank (hereinafter in this Act referred to as the ‘Bank’).”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 104(b) of such Act (12 U.S.C. 3014(b)) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>in the first sentence, by striking out “<quotedText>class A, class B,</quotedText>” and inserting in lieu thereof “<quotedText>class B</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by amending the second and third sentences to read as follows: “Class A notes which are held by the United States shall have first preference with respect to assets and interest payments over all classes of stock issued by the Bank. So long as any class A notes are outstanding, the Bank shall not pay any dividend on any class of stock at a rate greater than the statutory interest rate payable on class A notes.”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Section 104(c) of such Act (12 U.S.C. 3014(c)) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out the first sentence thereof;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><chapeau>in the second sentence—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by striking out “<quotedText>class A stock</quotedText>” and inserting in lieu thereof “<quotedText>class A notes</quotedText>”;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by striking out “<quotedText>dividends</quotedText>” each place it appears therein and inserting in lieu thereof “<quotedText>interest payments</quotedText>”; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>by striking out “<quotedText>: <proviso><i>Provided</i>, That</proviso></quotedText>” and inserting in lieu thereof “<quotedText>, except that</quotedText>”;</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>in the third sentence, by striking out “<quotedText>dividends</quotedText>” and inserting in lieu thereof “<quotedText>interest payments</quotedText>”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>by amending the fourth sentence to read as follows: “Any such interest payment may be deferred by the Board of Directors with the approval of the Secretary of the Treasury, except that any interest payment so deferred shall bear interest at a rate equal to the rate determined pursuant to the first sentence of this subsection.”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>in the fifth sentence, by striking out “<quotedText>any other class of stock</quotedText>” and all that follows through the end thereof and inserting in lieu thereof “<quotedText>any class of stock at any time when the deferred interest payments on class A notes shall not have been paid in full, together with any unpaid interest on such notes.</quotedText>”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">(F) </num><chapeau>in the sixth sentence—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by striking out “<quotedText>class A stock</quotedText>” each place it appears therein and inserting in lieu thereof “<quotedText>class A notes</quotedText>”;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by striking out “<quotedText>other</quotedText>”;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>by striking out “<quotedText>dividends</quotedText>” and inserting in lieu thereof “<quotedText>interest payments</quotedText>”; and</content> </clause> <page identifier="/us/stat/95/440">95 STAT. 440</page> <clause class="firstIndent1 fontsize10"><num value="iv">(iv) </num><content>by striking out “<quotedText>par value</quotedText>” and inserting in lieu thereof “<quotedText>face value</quotedText>”; and</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="G">(G) </num><chapeau>in the seventh sentence—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by striking out “<quotedText>class A stock</quotedText>” each place it appears therein and inserting in lieu thereof “<quotedText>class A notes</quotedText>”;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by striking out “<quotedText>cumulative dividends</quotedText>” and inserting in lieu thereof “<quotedText>interest payments</quotedText>”;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>by striking out “<quotedText>: <proviso><i>Provided</i>, That</proviso></quotedText>” and inserting in lieu thereof “<quotedText>, except that</quotedText>”;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">(iv) </num><content>by striking out “<quotedText>of shares</quotedText>” after “<quotedText>fiscal year a number</quotedText>”; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="v">(v) </num><content>by striking out “<quotedText>par value</quotedText>” each place it appears therein and inserting in lieu thereof “<quotedText>face value</quotedText>”.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>Section 104(e) of such Act (12 U.S.C. 3014(e)) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>class A stock</quotedText>” each place it appears therein and inserting in lieu thereof “<quotedText>class A notes</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>in the last sentence thereof, by striking out “<quotedText>statutory dividend</quotedText>” and inserting in lieu thereof “<quotedText>statutory interest payment</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><chapeau>Section 104(f) of such Act (12 U.S.C. 3014(f)) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>class A stock is</quotedText>” and inserting in lieu thereof “<quotedText>class A notes are</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>class A stock as to dividends</quotedText>” and inserting in lieu thereof “<quotedText>class A notes as to dividends, interest payments,</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>Section 104(g)(2)(B) of such Act (12 U.S.C. 3014(g)(2)(B)) is amended by striking out “<quotedText>section 103(c)</quotedText>” and inserting in lieu thereof “<quotedText>section 103(d)(2)(A).</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>The second sentence of section 104(h) of such Act (12 U.S.C. 3014(h)) is hereby repealed.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><chapeau>The first sentence of section 104(i) of such Act (12 U.S.C. 3014(i)) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>cumulative dividends on class A stock</quotedText>” and inserting in lieu thereof “<quotedText>interest payments on class A notes</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>class A stock in</quotedText>” and inserting in lieu thereof “<quotedText>class A notes in</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><chapeau>Section 107 of such Act (12 U.S.C. 3017) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out subsection (b); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by redesignating subsections (c) and (d) as subsections (b) and (c), respectively.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>The second sentence of section 108(b) of such Act (12 U.S.C. 3018(b)) is amended by striking out “<quotedText>, but so long as</quotedText>” and all that follows through “class B stock in the Bank”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>The last sentence of section 114 of such Act (12 U.S.C. 3024) is hereby repealed.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>Section 203 of such Act (12 U.S.C. 3043) is amended by striking out “<quotedText>out of the Account</quotedText>” each place it appears therein.</content> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 201 of the Government Corporation Control Act (31 U.S.C. 856) is amended by striking out “<quotedText>(7) the Rural Telephone Bank</quotedText>” and all that follows through the end thereof and inserting in lieu thereof “<quotedText>(7) the Rural Telephone Bank, (8) the United States Railway Association, and (9) the National Credit Union Administration Central Liquidity Facility.</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Section 302 of the Government Corporation Control Act (31 U.S.C. 867) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>or</quotedText>” after “<quotedText>the Regional Banks for Cooperatives,</quotedText>”; and</content></subparagraph> <page identifier="/us/stat/95/441">95 STAT. 441</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>or the National Consumer Cooperative Bank,</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The second sentence of section 303(d) of the Government Corporation Control Act (31 U.S.C. 868(d)) is amended by striking out “<quotedText>National Consumer Cooperative Bank,</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Section 5315 of title 5, United States Code, is amended by striking out “<quotedText>Director, Office of Self-Help Development and Technical Assistance, National Consumer Cooperative Bank.</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num><content>The amendments made by subsections (b) through (h) shall take <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3011">12 USC 3011 note</ref>.</p></sidenote>effect on the day after the Final Government Equity Redemption Date.</content> </subsection> </section> </subtitle> <num value="IV">TITLE IV—</num><heading>THE DISTRICT OF COLUMBIA</heading> <section> <heading class="centered smallCaps">limitation on the amount op funds authorized and expended for loans for capital projects</heading><num value="401"><inline class="smallCaps">Sec</inline>. 401. </num><subsection class="inline"><num value="a">(a) </num><content>Subsection (c) of section 723 of the District of Columbia Self-Government and Governmental Reorganization Act (D.C. Code, sec. 47–241 note) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Subject to the limitations contained in section 603(b), there is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/dcc/47/228">D.C. Code 47–228</ref>.</p></sidenote>authorized to be appropriated to make loans under this section the sum of $155,000,000 for the fiscal year ending on September 30, 1982, the sum of $155,000,000 for the fiscal year ending on September 30, 1983, and the sum of $155,000,000 for the fiscal year ending on September 30, 1984.”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The amendment made by this section shall take effect on <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p></sidenote>October 1, 1981.</content> </subsection> </section> <num value="V">TITLE V—</num><heading>EDUCATION PROGRAMS <sidenote><p class="indent0 firstIndent0 fontsize8">Omnibus Education Reconciliation Act of 1981.</p></sidenote></heading> <section> <heading class="centered smallCaps">short title</heading><num value="501"><inline class="smallCaps">Sec</inline>. 501. </num><content>This title may be cited as the “<shortTitle role="title">Omnibus Education <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3489">20 USC 3489 note</ref>.</p></sidenote>Reconciliation Act of 1981</shortTitle>”.</content> </section> <subtitle><num value="A">Subtitle A—</num><heading>Authorization Savings for Fiscal Years 1982, 1983, and 1984</heading> <section> <heading class="centered smallCaps">effect on other laws; general restrictions</heading><num value="502"><inline class="smallCaps">Sec</inline>. 502. </num><subsection class="inline"><num value="a">(a) </num><content>Any provision of law which is not consistent with the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3489">20 USC 3489 note</ref>.</p></sidenote>provisions of this subtitle is hereby superseded and shall have only such force and effect during each of the fiscal years 1982, 1983, and 1984 which is consistent with this subtitle.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Notwithstanding any authorization of appropriations for fiscal year 1982, 1983, or 1984 contained in any provision of law which is specified in this subtitle (including any authorization of appropriations contained in section 528 of this title), no funds are authorized to be appropriated in excess of the limitations imposed upon appropriations by the provisions of this subtitle.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>No funds are authorized to be appropriated for the fiscal year 1982, 1983, or 1984 to pay for the expenses of any advisory council which provides advice to a program for which there are no authorizations of appropriations made under this subtitle or made by an amendment made by this subtitle.</content> </subsection> </section> <page identifier="/us/stat/95/442">95 STAT. 442</page> <section> <heading class="centered smallCaps">act of march 2, 1867 (howard university)</heading><num value="503"><inline class="smallCaps">Sec</inline>. 503. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s123">20 USC 123 note</ref>.</p></sidenote> <content class="inline">The total amount of appropriations to carry out the Act of March 2, 1867 (14 Stat. 439), shall not exceed $145,200,000 for each of the fiscal years 1982, 1983, and 1984.</content> </section> <section> <heading class="centered smallCaps">act of september 23, 1950 (impact aid)</heading><num value="504"><inline class="smallCaps">Sec</inline>. 504. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s631">20 USC 631 note</ref>.</p></sidenote> <content class="inline">The total amount of appropriations to carry out the Act of September 23, 1950 (Public Law 815, 81st Congress), shall not exceed $20,000,000 for each of the fiscal years 1982, 1983, and 1984.</content> </section> <section> <heading class="centered smallCaps">act of september 30, 1950 (impact aid)</heading><num value="505"><inline class="smallCaps">Sec</inline>. 505. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>The total amount of appropriations to make payments <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s237">20 USC 237 note</ref>.</p></sidenote>under the Act of September 30, 1950 (Public Law 874, 81st Congress), shall not exceed $455,000,000 for each of the fiscal years 1982, 1983, and 1984 of which—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>$10,000,000 shall be available for payments under section 2 of such Act; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>$10,000,000 shall be available for payments under section 7 of such Act.</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10"><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s237">20 USC 237</ref>.</p></sidenote>Funds available for section 2 of such Act for each such fiscal year shall also be available for section 16 of the Act of September 23, 1950 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s646">20 USC 646</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s238">20 USC 238</ref>.</p></sidenote>(Public Law 815, 81st Congress).</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 3(d)(2) of such Act is amended by adding at the end thereof the following new subparagraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><clause class="inline"><num value="i">(i) </num><content>The amount of the entitlement of any local educational agency under this section for fiscal year 1982 with respect to children determined under subsection (b) with respect to such agency shall be the amount determined under paragraph (1) with respect to such children multiplied by 66% per centum.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>The amount of the entitlement of any local educational agency under this section for fiscal year 1983 with respect to children determined under subsection (b) with respect to such agency shall be the amount determined under paragraph (1) with respect to such children multiplied by 33 ⅓ per centum.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>The amount of the entitlement of any local educational agency under this section for fiscal year 1984 or any succeeding fiscal year with respect to children determined under subsection (b) with respect to such agency shall be zero.”.</content> </clause> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s237">20 USC 237 note</ref>.</p></sidenote> <content class="inline">If the amount appropriated for making payments under such Act for fiscal year 1982, 1983, or 1984 is not sufficient to pay in full the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s237">20 USC 237</ref>.</p></sidenote>sum of the entitlements established under section 2 of such Act, then the amount of each such entitlement shall be ratably reduced. If, for any fiscal year in which such a reduction is required, additional amounts are made available for making such payments, then such entitlements shall be increased on the same basis as they were reduced.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s238">20 USC 238 note</ref>.</p></sidenote> <chapeau class="inline">No funds are authorized to be appropriated for fiscal year 1982, 1983, or 1984 for the purpose of making payments—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>on the basis of entitlements determined under section 3(e) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s238, 239">20 USC 238, 239</ref>.</p></sidenote>or 4 of such Act; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1500">94 Stat. 1500</ref>.</p></sidenote> <content class="inline">under sections 4A or 6 of such Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s239a, 241">20 USC 239a, 241</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s243">20 USC 243</ref>.</p></sidenote> <content class="inline">Subsection (d) of section 402 of the Act of September 30, 1950 (Public Law 874, 81st Congress), shall not apply during fiscal year 1982, or any succeeding fiscal year.</content></paragraph> <page identifier="/us/stat/95/443">95 STAT. 443</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Funds appropriated to the Department of Defense shall be <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s241">20 USC 241 note</ref>.</p></sidenote>available to the Secretary of Defense for payments and arrangements of the kind that may be made by the Secretary of Education under section 6 of the Act of September 30, 1950 (Public Law 874, 81st <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s241">20 USC 241</ref>.</p></sidenote>Congress).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The Secretary of Defense shall delegate to the Secretary of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s241">20 USC 241 note</ref>.</p></sidenote>Education responsibility for the conduct of programs with funds so available.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">adult education act</heading><num value="506"><inline class="smallCaps">Sec</inline>. 506. </num><content>The total amount of appropriations to carry out the Adult <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1211">20 USC 1211 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1201">20 USC 1201 note</ref>.</p></sidenote>Education Act shall not exceed $1.00,000,000 for each of the fiscal years 1982, 1983, and 1984.</content> </section> <section> <heading class="centered smallCaps">alcohol and drug abuse education act</heading><num value="507"><inline class="smallCaps">Sec</inline>. 507. </num><content>The total amount of appropriations to carry out the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s1002">21 USC 1002 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s1001">21 USC 1001 note</ref>.</p></sidenote>Alcohol and Drug Abuse Education Act shall not exceed $3,000,000 for fiscal year 1982.</content> </section> <section> <heading class="centered smallCaps">career education incentive act</heading><num value="508"><inline class="smallCaps">Sec</inline>. 508. </num><content>The total amount of appropriations to carry out the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2603">20 USC 2603 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2601">20 USC 2601 note</ref>.</p></sidenote>Career Education Incentive Act shall not exceed $10,000,000 for fiscal year 1982.</content> </section> <section> <heading class="centered smallCaps">civil rights act of 1964</heading><num value="509"><inline class="smallCaps">Sec</inline>. 509. </num><content>The total amount of appropriations to carry out sections <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2000c–2">42 USC 2000c–2 note</ref>.</p></sidenote>403, 404, and 405 of title IV of the Civil Rights Act of 1964 (42 U.S.C. 2000c et seq.) shall not exceed $37,100,000 for each of the fiscal years 1982, 1983, and 1984.</content> </section> <section> <heading class="centered smallCaps">department of education</heading><num value="510"><inline class="smallCaps">Sec</inline>. 510. </num><chapeau>The total amount of appropriations for salaries and <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3488">20 USC 3488 note</ref>.</p></sidenote>expenses of the Department of Education shall not exceed $308,000,000 for each of the fiscal years 1982, 1983, and 1984, of which—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>$49,396,000 shall be available for the Office of Civil Rights; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>$12,989,000 shall be available for the Office of the Inspector General;</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">for each such year.</continuation> </section> <section> <heading class="centered smallCaps">education amendments of 1978</heading><num value="511"><inline class="smallCaps">Sec</inline>. 511. </num><subsection class="inline"><num value="a">(a) </num><content>No funds are authorized to be appropriated to carry out section 1015 of the Education Amendments of 1978 for fiscal year <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1497">94 Stat. 1497</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s236">20 USC 236 note</ref>.</p></sidenote>1982, 1983, or 1984.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>No funds are authorized to be appropriated to carry out part A of title XV of the Education Amendments of 1978 for fiscal year <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s287">22 USC 287 note</ref>.</p></sidenote>1982, 1983, or 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>No funds are authorized to be appropriated to carry out part B of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1123">20 USC 1123 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1172">20 USC 1172 note</ref>.</p></sidenote>title XV of the Education Amendments of 1978 for fiscal year 1982, 1983, or 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The total amount of appropriations to carry out section 1524 of the Education Amendments of 1978 relating to general assistance for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/92/2379">92 Stat. 2379</ref>.</p></sidenote>the Virgin Islands shall not exceed $2,700,000 for each of the fiscal years 1982, 1983, and 1984.</content></paragraph> <page identifier="/us/stat/95/444">95 STAT. 444</page> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1231a">20 USC 1231a note</ref>.</p></sidenote> <content class="inline">No funds are authorized to be appropriated to carry out section 1526 of the Education Amendments of 1978 for fiscal year 1982, 1983, or 1984.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">education amendments of 1980</heading><num value="512"><inline class="smallCaps">Sec</inline>. 512. </num><subsection class="inline"><num value="a">(a) </num><content>No funds are authorized to be appropriated to carry out <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1499">94 Stat. 1499</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1221–1">20 USC 1221–1 note</ref>.</p></sidenote>part D of title XIII of the Education Amendments of 1980 for fiscal year 1982, 1983, or 1984.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>No funds are authorized to be appropriated to carry out part H <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1502">94 Stat. 1502</ref>.</p></sidenote>of title XIII of the Education Amendments of 1980 for fiscal year 1982, 1983, or 1984.</content> </subsection> </section> <section> <heading class="centered smallCaps">elementary and secondary education act of 1965</heading><num value="513"><inline class="smallCaps">Sec</inline>. 513. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2702">20 USC 2702 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2701">20 USC 2701</ref>.</p></sidenote> <content class="inline">The total amount of appropriations to carry out title I of the Elementary and Secondary Education Act of 1965 shall not exceed $3,480,000,000 for fiscal year 1982. From the amount appropriated in accordance with the preceding sentence, not more than 14.6 percent of such amount for fiscal year 1982 shall be available to carry <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2761/2771/2781">20 USC 2761, 2771, 2781</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2722">20 USC 2722</ref>.</p></sidenote>out sections 141, 146, and 151, of such Act. After the requirement of the preceding sentence is met, the Secretary of Education shall assure that the amount available for section 117 of such Act bears the same ratio to the amount appropriated in such fiscal year for title I of such Act as the amount available for such section 117 in fiscal year 1980 bore to the total amount appropriated for title I of such Act in fiscal year 1980.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The total amount of appropriations to carry out title II of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2921">20 USC 2921 note</ref>.</p></sidenote>Elementary and Secondary Education Act of 1965 shall not exceed $31,500,000 for fiscal year 1982.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><content>The total amount of appropriations to carry out section 303 of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2943">20 USC 2943 note</ref>.</p></sidenote>the Elementary and Secondary Education Act of 1965 shall not exceed $25,500,000 for fiscal year 1982.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The total amount of appropriations to carry out part B of title III <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2954">20 USC 2954 note</ref>.</p></sidenote>of such Act shall not exceed $1,380,000 for fiscal year 1982.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The total amount of appropriations to carry out part C of title III <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2963">20 USC 2963 note</ref>.</p></sidenote>of such Act shall not exceed $3,150,000 for fiscal year 1982.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>No funds are authorized to be appropriated to carry out part D of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2971">20 USC 2971 note</ref>.</p></sidenote>title III of such Act for fiscal year 1982.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>The total amount of appropriations to carry out part E of title III <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2983">20 USC 2983 note</ref>.</p></sidenote>of such Act shall not exceed $3,600,000 for fiscal year 1982.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>No funds are authorized to be appropriated to carry out part F of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2992">20 USC 2992 note</ref>.</p></sidenote>title III of such Act for fiscal year 1982.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>The total amount of appropriations to carry out part G of title III <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3003">20 USC 3003 note</ref>.</p></sidenote>of such Act shall not exceed $1,000,000 for fiscal year 1982.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>No funds are authorized to be appropriated to carry out part H <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3018">20 USC 3018 note</ref>.</p></sidenote>of title III of such Act for fiscal year 1982.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">(9) </num><content>No funds are authorized to be appropriated to carry out part I of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3024">20 USC 3024 note</ref>.</p></sidenote>title III of such Act for fiscal year 1982.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">(10) </num><content>No funds are authorized to be appropriated to carry out part J <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3034">20 USC 3034 note</ref>.</p></sidenote>of title III of such Act for fiscal year 1982.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="11">(11) </num><content>No funds are authorized to be appropriated to carry out part K <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3041">20 USC 3041 note</ref>.</p></sidenote>of title III of such Act for fiscal year 1982.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="12">(12) </num><content>The total amount of appropriations to carry out part L of title <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3057">20 USC 3057 note</ref>.</p></sidenote>III of such Act shall not exceed $3,000,000 for fiscal year 1982.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="13">(13) </num><content>No funds are authorized to be appropriated to carry out part M <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3062">20 USC 3062 note</ref>.</p></sidenote>of title III of such Act for fiscal year 1982.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="14">(14) </num><content>No funds are authorized to be appropriated to carry out part N <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1471">94 Stat. 1471</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3065">20 USC 3065 note</ref>.</p></sidenote>of title III of such Act for fiscal year 1982.</content></paragraph> </subsection> <page identifier="/us/stat/95/445">95 STAT. 445</page> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num><content>The total amount of appropriations to carry out part B of title IV of the Elementary and Secondary Education Act of 1965 shall not <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3101">20 USC 3101 note</ref>.</p></sidenote>exceed $161,000,000 for fiscal year 1982.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The total amount of appropriations to carry out part C of title IV of such Act shall not exceed $66,130,000 for fiscal year 1982. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3111">20 USC 3111 note</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The total amount of appropriations to carry out part D of title IV of such Act shall not exceed $15,000,000 for fiscal year 1982. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3121">20 USC 3121 note</ref>.</p></sidenote></content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><paragraph class="inline"><num value="1">(1) </num><content>The total amount of appropriations to carry out part B of title V of the Elementary and Secondary Education Act of 1965 shall not <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3163">20 USC 3163 note</ref>.</p></sidenote>exceed $42,075,000 for fiscal year 1982.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>No funds are authorized to be appropriated to carry out part C of title V of such Act for fiscal year 1982. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3171">20 USC 3171 note</ref>.</p></sidenote></content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>The total amount of appropriations to carry out title VI of the Elementary and Secondary Education Act of 1965 shall not exceed <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3194">20 USC 3194 note</ref>.</p></sidenote>$149,292,000 for fiscal year 1982.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>The total amount of appropriations to carry out title VII of the Elementary and Secondary Education Act of 1965 shall not exceed <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3222">20 USC 3222 note</ref>.</p></sidenote>$139,970,000 for each of the fiscal years 1982, 1983, and 1984.</content> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><content>The total amount of appropriations to carry out title VIII of the Elementary and Secondary Education Act of 1965 shall not exceed <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3282">20 USC 3282 note</ref>.</p></sidenote>$3,138,000 for fiscal year 1982.</content> </subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num><paragraph class="inline"><num value="1">(1) </num><content>The total amount of appropriations to carry out part A of title IX of the Elementary and Secondary Education Act of 1965 shall not <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3313">20 USC 3313 note</ref>.</p></sidenote>exceed $5,652,000 for fiscal year 1982.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>No funds are authorized to be appropriated to carry out part B of title IX of such Act for fiscal year 1982. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3331">20 USC 3331 note</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The total amount of appropriations to carry out part C of title IX of such Act shall not exceed $6,000,000 for each of the fiscal years <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3348">20 USC 3348 note</ref>.</p></sidenote>1982, 1983, and 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>No funds are authorized to be appropriated to carry out part D of title IX of such Act for fiscal year 1982. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3352">20 USC 3352 note</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>The total amount of appropriations to carry out part E of title IX of such Act shall not exceed $2,250,000 for fiscal year 1982. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3367">20 USC 3367 note</ref>.</p></sidenote></content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="j">(j) </num><paragraph class="inline"><num value="1">(1) </num><content>Funds appropriated in an appropriation Act for fiscal year 1982 for title I of the Elementary and Secondary Education Act of 1965 which are intended for use by a State or local educational agency <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2702">20 USC 2702 note</ref>.</p></sidenote>in the school year 1982–1983 shall remain available to such agency but shall be expended and used in accordance with chapter 1 of the Education Consolidation and Improvement Act of 1981. <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 464.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Funds appropriated in an appropriation Act for fiscal year 1981 for title I of the Elementary and Secondary Education Act of 1965 which are not obligated by a State or local educational agency prior to July 1, 1982, shall remain available to such agency but shall be expended and used in accordance with chapter 1 of the Education Consolidation and Improvement Act of 1981.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">education consolidation and improvement act of 1981</heading><num value="514"><inline class="smallCaps">Sec</inline>. 514. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>The total amount of appropriations to carry out <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3802">20 USC 3802 note</ref>.</p></sidenote>chapter 1 of the Education Consolidation and Improvement Act of 1981 shall not exceed $3,480,000,000 for each of the fiscal years 1983 and 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>From the amount appropriated in accordance with the paragraph (1), not more than 14.6 percent of such amount for each of the fiscal years 1983 and 1984 shall be available to carry out programs described in sections 141, 146, and 151 of the Elementary and Secondary Education Act of 1965. After the requirement of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2761/2771/2781">20 USC 2761, 2771, 2781</ref>.</p></sidenote>preceding sentence is met, the Secretary of Education shall assure <page identifier="/us/stat/95/446">95 STAT. 446</page>that the amount available for the programs described in section 117 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2722">20 USC 2722</ref>.</p></sidenote>of the Elementary and Secondary Education Act of 1965 bears the same ratio to the amount appropriated in each such fiscal year for chapter 1 of the Education Consolidation and Improvement Act of <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 464.</p></sidenote>1981 as the amount available for such section 117 in fiscal year 1980 bore to the total amount appropriated for title I of the Elementary <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2701">20 USC 2701</ref>.</p></sidenote>and Secondary Education Act of 1965 in fiscal year 1980.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>The total amount of appropriations to carry out chapter 2 of <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p 469.</p></sidenote>the Education Consolidation and Improvement Act of 1981 shall not exceed $589,368,000 for each of the fiscal years 1982, 1983, and 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>Funds appropriated in an appropriation Act for fiscal year 1982 for any program described in section 561(a) (1), (2), (3), (5), and (6) <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 469.</p></sidenote>of this Act which are intended for use by a State or local educational agency in the school year 1982–1983 shall remain available to such agency but shall be expended and used in accordance with chapter 2 of the Education Consolidation and Improvement Act of 1981.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Funds appropriated in an appropriation Act for fiscal year 1981 for any program described in section 561(a) (1), (2), (3), (5), and (6) of this Act which are not obligated by a State or local educational agency prior to July 1, 1982, shall remain available to such agency but shall be expended and used in accordance with chapter 2 of the Education Consolidation and Improvement Act of 1981.</content></subparagraph> </paragraph> </subsection> </section> <section> <heading class="centered smallCaps">general education provisions act</heading><num value="515"><inline class="smallCaps">Sec</inline>. 515. </num><subsection class="inline"><num value="a">(a) </num><content>The total amount of appropriations to carry out section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1498">94 Stat. 1498</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1221e">20 USC 1221e note</ref>.</p></sidenote>405 of the General Education Provisions Act shall not exceed $55,614,000 for each of the fiscal years 1982, 1983, and 1984.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The total amount of appropriations to carry out section 406 of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1221e–1">20 USC 1221e–1 note</ref>.</p></sidenote>the General Education Provisions Act shall not exceed $8,947,000 for each of the fiscal years 1982, 1983, and 1984.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The total amount of appropriations to carry out section 406A(1) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1221e–1a">20 USC 1221e–1a note</ref>.</p></sidenote>of the General Education Provisions Act shall not exceed $1,875,000 for fiscal year 1982.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>The total amount of appropriations to carry out section 406A(2) of the General Education Provisions Act shall not exceed $5,000,000 for each of the fiscal years 1982, 1983, and 1984.</content> </subsection> </section> <section> <heading class="centered smallCaps">higher education act of 1965</heading><num value="516"><inline class="smallCaps">Sec</inline>. 516. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>No funds are authorized to be appropriated to carry <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1373">94 Stat. 1373</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1005">20 USC 1005 note</ref>.</p></sidenote>out part A of title I of the Higher Education Act of 1965 for fiscal year 1982, 1983, or 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The total amount of appropriations to carry out part B of title I <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1377">94 Stat. 1377</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1019">20 USC 1019 note</ref>.</p></sidenote>of such Act shall not exceed $8,000,000 for fiscal year 1982, 1983, or 1984.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>The total amount of appropriations to carry out part A of title <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1384">94 Stat. 1384</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1029">20 USC 1029 note</ref>.</p></sidenote>II of the Higher Education Act of 1965 shall not exceed $5,000,000 for each of the fiscal years 1982, 1983, and 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The total amount of appropriations to carry out part B of title II <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1385">94 Stat. 1385</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1031">20 USC 1031 note</ref>.</p></sidenote>of such Act shall not exceed $1,200,000 for each of the fiscal years 1982, 1983, and 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The total amount of appropriations to carry out part C of title II <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1386">94 Stat. 1386</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1041">20 USC 1041 note</ref>.</p></sidenote>of such Act shall not exceed $6,000,000 for each of the fiscal years 1982, 1983, and 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>No funds are authorized to be appropriated to carry out part D of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1047j">20 USC 1047j note</ref>.</p></sidenote>title II of such Act for fiscal year 1982, 1983, or 1984.</content></paragraph> <page identifier="/us/stat/95/447">95 STAT. 447</page> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>No funds available for carrying out part A and section 224 of part B of such title for any such fiscal year shall be made available to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1384/1385">94 Stat. 1384, 1385</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1029">20 USC 1029 note</ref>.</p></sidenote>any institution, organization, or agency which is a recipient of assistance under part C of such title.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><content>The total amount of appropriations to carry out title III of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1386">94 Stat. 1386</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1041">20 USC 1041</ref>.</p></sidenote>Higher Education Act of 1965 shall not exceed $129,600,000 for each of the fiscal years 1982, 1983, and 1984. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1390">94 Stat 1390</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1069c">20 USC 1069c note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1395">94 Stat. 1395</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1064">20 USC 1064</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 331(a)(1) of the Higher Education Act of 1965 is amended by striking out the period at the end of clause (B) and by inserting in lieu thereof a semicolon and the word “or”, and by adding at the end thereof the following new clause: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>which is an institution of higher education which includes a substantial number of minority and educationally disadvantaged students, which provides a medical education program which leads to a doctor of medicine degree or which is not less than a two year program fully acceptable toward such a degree, and which in fiscal year 1980 received a grant as a two year medical school under section 788(a) of the Health Professions Educational Assistance Act of 1976.”. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s295g–8">42 USC 295g–8</ref>.</p></sidenote></content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num><subparagraph class="inline"><num value="A">(A) </num><content>The total amount of appropriations to carry out subpart 1 of part A of title IV of the Higher Education Act of 1965 shall not <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1070a">20 USC 1070a note</ref>.</p></sidenote>exceed $2,650,000,000 for fiscal year 1982, $2,800,000,000 for fiscal year 1983, and $3,000,000,000 for fiscal year 1984.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>If the Secretary of Education determines that it is necessary to <sidenote><p class="indent0 firstIndent0 fontsize8">Waiver notification to congressional committees.</p></sidenote>waive any provision of subpart 1 of part A of title IV of the Higher Education Act of 1965 to meet the authorizations specified in subparagraph (A) of this paragraph, the Secretary shall notify the Committee on Labor and Human Resources of the Senate and the Committee on Education and Labor of the House of Representatives. The notification shall contain a description of each provision of such subpart that the Secretary proposes to waive and the reasons for the waiver. The Secretary may waive each provision contained in the notification submitted under this subparagraph if the Committee on Labor and Human Resources of the Senate and the Committee on Education and Labor of the House of Representatives within 30 days after the receipt approve of the waiver of that provision. Before the Secretary may act under this subparagraph, each such committee must approve of the waiver of each provision requested in the notification.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The total amount of appropriations to carry out subpart 2 of part A of title IV of such Act shall not exceed $370,000,000 for each of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1070b">20 USC 1070b note</ref>.</p></sidenote>fiscal years 1982, 1983, and 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The total amount of appropriations to carry out subpart 3 of part A of title IV of such Act shall not exceed $76,800,000 for each of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1070c">20 USC 1070c note</ref>.</p></sidenote>fiscal years 1982, 1983, and 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>The total amount of appropriations to carry out subpart 4 of part A of title IV of such Act shall not exceed $165,000,000 for the fiscal <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1407">94 Stat. 1407</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1070d">20 USC 1070d note</ref>.</p></sidenote>year 1982, $170,000,000 for each of the fiscal years 1983 and 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>The total amount of appropriations to carry out subpart 5 of part A of title IV of such Act shall not exceed $7,500,000 for each of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1411">94 Stat. 1411</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1070">20 USC 1070d–2 note</ref>.</p></sidenote>fiscal years 1982, 1983, and 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><subparagraph class="inline"><num value="A">(A) </num><content>No funds are authorized to be appropriated to carry out section 419 of such Act for fiscal year 1982, 1983, or 1984. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1070e">20 USC 1070e note</ref>.</p></sidenote></content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>The total amount of appropriations to carry out section 420 of such Act shall not exceed $12,000,000 for each of the fiscal years 1982, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1412">94 Stat. 1412</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1070e–1">20 USC 1070e–1 note</ref>.</p></sidenote>1983, and 1984.</content></subparagraph> </paragraph> <page identifier="/us/stat/95/448">95 STAT. 448</page> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>The total amount of appropriations to carry out part C of title IV <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1433">94 Stat. 1433</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2751">42 USC 2751 note</ref>.</p></sidenote>of such Act shall not exceed $550,000,000 for each of the fiscal years 1982, 1983, and 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>The total amount of appropriations to carry out part E of title IV <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1437">94 Stat. 1437</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1087aa">20 USC 1087aa note</ref>.</p></sidenote>of such Act shall not exceed $286,000,000 for each of the fiscal years 1982, 1983, and 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">(9) </num><content>The total amount of appropriations to carry out section 491 of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1454">94 Stat. 1454</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1098">20 USC 1098 note</ref>.</p></sidenote>such Act shall not exceed $1,000,000 for fiscal year 1982 and $2,000,000 for fiscal year 1983.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><paragraph class="inline"><num value="1">(1) </num><content>The total amount of appropriations to carry out part A of title <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1459">94 Stat. 1459</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1101">20 USC 1101 note</ref>.</p></sidenote>V of the Higher Education Act of 1965 shall not exceed $22,500,000 for fiscal year 1982.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>The total amount of appropriations to carry out part B of title <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1459">94 Stat. 1459</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1119">20 USC 1119 note</ref>.</p></sidenote>V of such Act shall not exceed $9,100,000 for fiscal year 1982.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>The last sentence of section 531 of such Act shall not apply to the funds appropriated to carry out part B of title V of such Act for fiscal year 1982, 1983, or 1984.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>No funds are authorized to be appropriated to carry out part C of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1461">94 Stat. 1461</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1119b–5">20 USC 1119b–5 note</ref>.</p></sidenote>title V of such Act for fiscal year 1982, 1983, or 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>No funds are authorized to be appropriated to carry out part D of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1464">94 Stat. 1464</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1119c">20 USC 1119c note</ref>.</p></sidenote>title V of such Act for fiscal year 1982, 1983, or 1984.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>The total amount of appropriations to carry out title VI of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1464">94 Stat. 1464</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1127">20 USC 1127 note</ref>.</p></sidenote>Higher Education Act of 1965 shall not exceed $30,600,000 for each of the fiscal years 1982, 1983, and 1984.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>No funds are authorized to be appropriated to carry out part A <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1472">94 Stat. 1472</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1132a–1">20 USC 1132a–1 note</ref>.</p></sidenote>or B of title VII of the Higher Education Act of 1965 for fiscal year 1982, 1983, or 1984.</content> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><content>The total amount of appropriations to carry out title VIII of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1481">94 Stat. 1481</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1133">20 USC 1133 note</ref>.</p></sidenote>Higher Education Act of 1965 shall not exceed $20,000,000 for each of the fiscal years 1982, 1983, and 1984.</content> </subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num><paragraph class="inline"><num value="1">(1) </num><content>No funds are authorized to be appropriated to carry out part A <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1134">20 USC 1134 note</ref>.</p></sidenote>of title IX of such Act for fiscal year 1982, 1983, or 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The total amount of appropriations to carry out part B of title IX <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1482">94 Stat. 1482</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1134g">20 USC 1134g note</ref>.</p></sidenote>of the Higher Education Act of 1965 shall not exceed $14,000,000 for each of the fiscal years 1982, 1983, and 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>No funds are authorized to be appropriated to carry out part C of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1484">94 Stat. 1484</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1134h">20 USC 1134h note</ref>.</p></sidenote>title IX of such Act for fiscal year 1982, 1983, or 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>The total amount of appropriations to carry out part D of title IX <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1486">94 Stat. 1486</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1134m">20 USC 1134m note</ref>.</p></sidenote>of such Act shall not exceed $1,000,000 for each of the fiscal years 1982, 1983, and 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>The total amount of appropriations to carry out part E of title IX <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1487">94 Stat. 1487</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1134p">20 USC 1134p note</ref>.</p></sidenote>of such Act shall not exceed $1,000,000 for each of the fiscal years 1982, 1983, and 1984.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="j">(j) </num><content>The total amount of appropriations to carry out title X of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1489">94 Stat. 1489</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1135a–3">20 USC 1135a–3 note</ref>.</p></sidenote>Higher Education Act of 1965 shall not exceed $13,500,000 for each of the fiscal years 1982, 1983, and 1984.</content> </subsection> </section> <section> <heading class="centered smallCaps">indian education act</heading><num value="517"><inline class="smallCaps">Sec</inline>. 517. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s241ff">20 USC 241ff note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s241aa">20 USC 241aa note</ref>.</p></sidenote> <content class="inline">The total amount of appropriations to carry out the Indian Education Act shall not exceed $81,700,000 for fiscal year 1982, $88,400,000 for the fiscal year 1983, and $95,300,000 for the fiscal year 1984.</content> </section> <page identifier="/us/stat/95/449">95 STAT. 449</page> <section> <heading class="centered smallCaps">johnson-o’malley act; snyder act; navajo community college act; tribally controlled community college assistance act of 1978</heading><num value="518"><inline class="smallCaps">Sec</inline>. 518. </num><chapeau>The total amount of appropriations— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s13">25 USC 13 note</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>to carry out the Act of April 16, 1934, commonly referred to as the Johnson-O’Malley Act; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s452">25 USC 452 note</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>to carry out all education programs under the direction of the Office of Indian Education Programs in the Bureau of Indian Affairs of the Department of the Interior authorized under the Act of November 2, 1921, commonly referred to as the Snyder Act <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s13">25 USC 13</ref>.</p></sidenote>(and not otherwise expressly authorized by law);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>to carry out the Navajo Community College Act; and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s640a">25 USC 640a note</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>to carry out the Tribally Controlled Community College Assistance Act of 1978; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s1801">25 USC 1801 note</ref>.</p></sidenote></content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">shall not exceed $262 300,000 for fiscal year 1982, $276,100,000 for the fiscal year 1983, and $290,400,000 for fiscal year 1984.</continuation> </section> <section> <heading class="centered smallCaps">joint resolution of october 19, 1972 (ellender fellowship program)</heading><num value="619"><inline class="smallCaps">Sec</inline>. 619. </num><content>The total amount of appropriations to carry out the joint <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/86/907">86 Stat. 907</ref>.</p></sidenote>resolution of October 19, 1972, shall not exceed $1,000,000 for each of the fiscal years 1982, 1983, and 1984.</content> </section> <section> <heading class="centered smallCaps">library services and construction act</heading><num value="520"><inline class="smallCaps">Sec</inline>. 520. </num><subsection class="inline"><num value="a">(a) </num><chapeau>The total amount of appropriations to carry out the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s351b">20 USC 351b note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s351">20 USC 351 note</ref>.</p></sidenote>Library Services and Construction Act shall not exceed $80,000,000 for each of the fiscal years 1982, 1983, and 1984 of which—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>not more than $65,000,000 shall be available for title I of such Act; and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s352">20 USC 352</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>not more than $15,000,000 shall be available for title III of such Act, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s355e">20 USC 355e</ref>.</p></sidenote></content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">for each such year.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>No funds are authorized to be appropriated to carry out title II of the Library Services and Construction Act for fiscal year 1982, 1983, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s355a">20 USC 355a</ref>.</p></sidenote>or 1984.</content> </subsection> </section> <section> <heading class="centered smallCaps">museum services act</heading><num value="521"><inline class="smallCaps">Sec</inline>. 521. </num><content>The total amount of appropriations to carry out the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s967">20 USC 967 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s961">20 USC 961 note</ref>.</p></sidenote>Museum Services Act shall not exceed $9,600,000 for each of the fiscal years 1982, 1983, and 1984.</content> </section> <section> <heading class="centered smallCaps">national commission on libraries and information science act</heading><num value="522"><inline class="smallCaps">Sec</inline>. 522. </num><content>The total amount of appropriations to carry out the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1506">20 USC 1506 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1501">20 USC 1501 note</ref>.</p></sidenote>National Commission on Libraries and Information Science Act shall not exceed $700,000 for each of the fiscal years 1982, 1983, and 1984.</content> </section> <section> <heading class="centered smallCaps">national foundation on the arts and the humanities act of 1965<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s951">20 USC 951 note</ref>.</p></sidenote></heading><num value="523"><inline class="smallCaps">Sec</inline>. 523. </num><content>The total amount of appropriations to the National <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s960">20 USC 960 note</ref>.</p></sidenote>Endowment for the Arts shall not exceed $119,300,000 for each of the fiscal years 1982, 1983, and 1984.</content> </section> <section class="firstIndent1 fontsize10"><num value="524"><inline class="smallCaps">Sec</inline>. 524. </num><content>The total amount of appropriations to the National <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s960">20 USC 960 note</ref>.</p></sidenote>Endowment for the Humanities shall not exceed $118,700,000 for each of the fiscal years 1982, 1983, and 1984.</content> </section> <page identifier="/us/stat/95/450">95 STAT. 450</page> <section> <heading class="centered smallCaps">refugee education consolidation</heading><num value="525"><inline class="smallCaps">Sec</inline>. 525. </num><content>The total amount of appropriations to carry out titles I <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1799–1807">94 Stat. 1799–1807</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote>through IV of the Refugee Education Assistance Act of 1980 shall not exceed $5,000,000 for fiscal year 1982, $7,500,000 for fiscal year 1983, and $10,000,000 for fiscal year 1984.</content> </section> <section> <heading class="centered smallCaps">refugee cuban and haitian programs</heading><num value="526"><inline class="smallCaps">Sec</inline>. 526. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote> <content class="inline">The total amount of appropriations to carry out Cuban and Haitian reception activities shall not exceed $20,000,000 for fiscal year 1982.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>No funds are authorized to be appropriated to Cuban and Haitian reception activities for the fiscal year 1983.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The total amount of appropriations to carry out Cuban and Haitian domestic activities shall not exceed $94,000,000 for fiscal year 1982 and $59,000,000 for fiscal year 1983.</content> </subsection> </section> <section> <heading class="centered smallCaps">vocational education act of 1963</heading><num value="527"><inline class="smallCaps">Sec</inline>. 527. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2302">20 USC 2302 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2301">20 USC 2301 note</ref>.</p></sidenote> <content class="inline">The total amount of appropriations to carry out the Vocational Education Act of 1963 shall not exceed $735,000,000 for each of the fiscal years 1982, 1983, and 1984.</content> </section> <section> <heading class="centered smallCaps">general extension of authorizations</heading><num value="528"><inline class="smallCaps">Sec</inline>. 528. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3489">20 USC 3489</ref>.</p></sidenote> <chapeau class="inline">Subject to the limitations contained in subtitle A of this title, there are authorized to be appropriated for fiscal years 1982, 1983, and 1984 such sums as may be necessary to carry out each of the following provisions of law:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s236">20 USC 236 <i>et seq</i></ref>.</p></sidenote> <content class="inline">the Act of September 30, 1950 (Public Law 874, 81st Congress);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s631">20 USC 631 <i>et seq</i></ref>.</p></sidenote> <content class="inline">the Act of September 23, 1950 (Public Law 815, 81st Congress);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1221">20 USC 1221</ref>.</p></sidenote> <content class="inline">the General Education Provisions Act;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s241aa">20 USC 241aa</ref>.</p></sidenote> <content class="inline">the Indian Education Act;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>titles XI, XIV, and XV of the Education Amendments of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/92/2313/2365/2373">92 Stat. 2313, 2365, 2373</ref>.</p></sidenote>1978 and part H of title XIII of the Education Amendments of 1980;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1502">94 Stat. 1502</ref>.</p></sidenote> <content class="inline">the Adult Education Act;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1201">20 USC 1201 note</ref>.</p></sidenote> <content class="inline">section 342 of the Education Amendments of 1976;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2532">20 USC 2532</ref>.</p></sidenote> <content class="inline">the Asbestos School Hazards Detection and Control Act;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">(9) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/487">94 Stat. 487</ref>.</p></sidenote> <content class="inline">the Joint Resolution of October 19, 1972 (86 Stat. 907);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">(10) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3601">20 USC 3601 note</ref>.</p></sidenote> <content class="inline">the Vocational Education Act of 1963;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="11">(11) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2301">20 USC 2301 note</ref>.</p></sidenote> <content class="inline">title IV of the Civil Rights Act of 1964;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="12">(12) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2000c">42 USC 2000c</ref>.</p></sidenote> <content class="inline">the Library Services and Construction Act;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="13">(13) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s351">25 USC 351 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s640a">25 USC 640a note</ref>.</p></sidenote> <content class="inline">the Navajo Community College Act and the Tribally Controlled Community College Assistance Act of 1978; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="14">(14) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1801">20 USC 1801 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3341">20 USC 3341</ref>.</p></sidenote> <content class="inline">part C of title IX of the Elementary and Secondary Education Act of 1965, relating to Women’s Educational Equity.</content></paragraph> </section> </subtitle> <subtitle><num value="B">Subtitle B— </num><sidenote><p class="indent0 firstIndent0 fontsize8">Postsecondary Student Assistance Amendments of 1981.</p></sidenote> <heading>Student Assistance Provisions</heading> <section> <heading class="centered smallCaps">short title</heading><num value="531"><inline class="smallCaps">Sec</inline>. 531. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1001">20 USC 1001 note</ref>.</p></sidenote> <content class="inline">This subtitle may be cited as the “<shortTitle role="subtitle">Postsecondary Student Assistance Amendments of 1981</shortTitle>”.</content> </section> <page identifier="/us/stat/95/451">95 STAT. 451</page> <section> <heading class="centered smallCaps">eligibility for subsidized loans</heading><num value="532"><inline class="smallCaps">Sec</inline>. 532. </num><subsection class="inline"><num value="a">(a) </num><content>Section 428(a)(2) of the Higher Education Act of 1965 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1078">20 USC 1078</ref>.</p></sidenote>(hereafter in this subtitle referred to as the “Act”) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><chapeau>Each student qualifying for a portion of an interest payment under paragraph (1) shall—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><chapeau>have provided to the lender a statement from the eligible institution, at which the student has been accepted for enrollment, or at which the student is in attendance, which—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>sets forth such student’s estimated cost of attendance; and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>sets forth such student’s estimated financial assistance; and</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>meet the requirements of subparagraph (B).</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>For the purpose of clause (ii) of subparagraph (A), a student shall qualify for a portion of an interest payment under paragraph (1) if the adjusted gross income of such student’s family—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>is less than or equal to $30,000; or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>is greater than $30,000, and the eligible institution has provided the lender with a statement evidencing a determination of need for a loan and the amount of such need, subject to the provisions of subparagraph (F).</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><chapeau>For the purpose of paragraph (1) and this paragraph—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>a student’s estimated cost of attendance means, for the period for which the loan is sought, the tuition and fees applicable to such student together with the institution’s estimate of other expenses reasonably related to attendance at such institution, including, but not limited to, the cost of room and board, reasonable transportation costs, and costs for books and supplies;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>a student’s estimated financial assistance means, for the period for which the loan is sought, the amount of assistance such student will receive under subparts 1 and 2 of part A, and parts C and E of this title, any amount paid under the Social <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1070a/1070b">20 USC 1070a, 1070b</ref>; <ref href="/us/usc/t42/s2751">42 USC 2751</ref>; <ref href="/us/usc/t20/s1087aa">20 USC 1087aa</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1305">42 USC 1305</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s1601/1651/1700">38 USC 1601 <i>et seq</i>., 1651 <i>et seq</i>., 1700 <i>et seq</i></ref>.</p></sidenote>Security Act to, or on account of, the student which would not be paid if he were not a student, and any amount paid the student under chapters 32, 34, and 35 of title 38, United States Code, plus other scholarship, grant, or loan assistance; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>the determination of need and of the amount of a loan by an eligible institution under subparagraph (B)(ii) with respect to a student shall be calculated by subtracting from the estimated cost of attendance at the eligible institution the total of the expected family contribution with respect to such student plus any estimated financial assistance reasonably available to such student.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>The Secretary shall submit a separate schedule of expected <sidenote><p class="indent0 firstIndent0 fontsize8">Schedule of expected family contributions.</p></sidenote>family contributions to the President of the Senate and the Speaker of the House of Representatives not later than the submission of, and in accordance with the procedures for, the proposed schedule of expected family contributions under section 482, except as provided <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1445">94 Stat. 1445</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1089">20 USC 1089</ref>.</p></sidenote>in subparagraph (E).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><clause class="inline"><num value="i">(i) </num><chapeau>The initial separate schedule required by subparagraph (D) shall—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>be submitted not later than August 15, 1981;</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>be effective on October 1, 1981, except as is otherwise provided in division (ii);</content> </subclause> <page identifier="/us/stat/95/452">95 STAT. 452</page> <subclause class="firstIndent1 fontsize10"><num value="III">“(III) </num><content>not be the subject of public comment otherwise required <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1445">94 Stat. 1445</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1089">20 USC 1089</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1232">20 USC 1232</ref>.</p></sidenote>by section 482(a)(1) of this Act or section 431 of the General Education Provisions Act; and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="IV">“(IV) </num><content>he subject to amendment prior to the next regular submission of a separate schedule as required by subparagraph (D) only in accordance with division (iv) of this subparagraph.</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Congressional disapproval.</p></sidenote> <content class="inline">If either the Senate or the House of Representatives adopts, prior to October 1, 1981, a resolution of disapproval of the schedule submitted under division (i), such schedule shall not take effect. If such schedule is so disapproved, or if the Secretary does not submit such a schedule by August 15, 1981, then beginning on October 1, 1981, the expected family contribution for purposes of this paragraph shall be determined by the eligible institution in accordance with <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1070a/1070b–1">20 USC 1070a, 1070b–1</ref>.</p></sidenote>regulations promulgated under section 411 or 413B, as in effect for the period beginning on July 1, 1981, governing the determination of expected family contribution.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>The method of determining the expected family contribution established under this subparagraph shall remain in effect until superseded by the taking effect of the next schedule submitted in accordance with subparagraph (D) or amended in accordance with division (iv) of this subparagraph.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>Any amendment promulgated by the Secretary to the initial separate schedule established under this subparagraph shall be transmitted to the President of the Senate and the Speaker of the House of Representatives not later than the time of its publication in the Federal Register. If either the Senate or House of Representatives adopts, within 30 legislative days following the publication of such amendment, a resolution of disapproval of such amendment, such amendment shall not take effect.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num><content>For the purpose of a student described in clause (ii) of subparagraph (B), the amount of the loan which is qualified for a payment under paragraph (1) is the amount of the need of such student as determined by the eligible institution, except that, if the amount of need is equal to or more than $500, but is less than $1,000, the amount of the loan which is qualified for such payment shall be $1,000.”.</content></subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1078">20 USC 1078</ref>.</p></sidenote> <content class="inline">Section 428(b)(1)(A)(i) of the Act is amended by striking out “<quotedText>section 428(a)(2)(B)(i)</quotedText>” and inserting in lieu thereof “<quotedText>section 428(a)(2)(C)(i)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Repeal.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1087–3a/1078">20 USC 1087–3a, 1078 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1001">20 USC 1001 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1071">20 USC 1071</ref>.</p></sidenote> <content class="inline">Section 439B of the Act is repealed. Nothing in this paragraph or in any other provision of this title, or in any provision of the Higher Education Act of 1965 as amended by this title, shall be construed to permit any analysis of need for the purposes of loans under part B of title IV of such Act other than that expressly required by section 428(a)(2) of such Act as amended by this section or to require a student seeking to qualify under section 428(a)(2)(B)(i) to prove any element of need other than compliance with the adjusted gross income amount specified in such section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1424">94 Stat. 1424</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1078–2">20 USC 1078–2</ref>.</p></sidenote> <content class="inline">Section 428B(b)(3) of the Act is amended by striking out “<quotedText>No</quotedText>” and inserting in lieu thereof “<quotedText>Any loan under this section may be counted as part of the student’s expected family contribution in the determination of need under this title, but no</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1425">94 Stat. 1425</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1087–1">20 USC 1087–1</ref>.</p></sidenote> <content class="inline">Section 438(b)(5) of the Act is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><chapeau>As used in this section, the term ‘eligible loan’ means a loan—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><clause class="inline"><num value="i">(i) </num><content>on which a portion of the interest is paid on behalf of the student and for his account to the holder of the loan under section 428(a);</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1430">94 Stat. 1430</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1087–2">20 USC 1087–2</ref>.</p></sidenote> <content class="inline">which is made under section 428B or 439(o); or</content> </clause> <page identifier="/us/stat/95/453">95 STAT. 453</page> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>which was made prior to October 1, 1981; and</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>which is insured under this part, or made under a program covered by an agreement under section 428(b) of this Act.”. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1078">20 USC 1078</ref>.</p></sidenote></content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">need analysis amendments</heading><num value="533"><inline class="smallCaps">Sec</inline>. 533. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 482(a)(1) of the Act is amended by striking <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1445">94 Stat. 1445</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1089">20 USC 1089</ref>.</p></sidenote>out everything after the comma following the words “family income, which,” and inserting in lieu thereof the following: “<quotedText>together with any amendments published in the Federal Register, no later than September 1, 1981, June 1, 1982, and June 1 of each succeeding year, shall become effective July 1 of the calendar year which succeeds such calendar year, except as is otherwise provided in paragraph (2). During the thirty-day period following publication of a schedule the Secretary shall provide interested parties with an opportunity to present their views and make recommendations with respect to such schedule. Such schedule shall be adjusted annually.</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 482(a)(2) of the Act is amended to read as follows: <sidenote><p class="indent0 firstIndent0 fontsize8">New or revised schedules, congressional disapproval.</p></sidenote> <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The schedule of expected family contributions required for each academic year, including any amendments thereto published pursuant to paragraph (1), shall be transmitted to the President of the Senate and the Speaker of the House of Representatives not later than the time of its publication in the Federal Register. If either the <sidenote><p class="indent0 firstIndent0 fontsize8">Publication in Federal Register.</p></sidenote>Senate or House of Representatives adopts, prior to October 15, 1981, July 15, 1982, or July 15 of any succeeding year, following the submission of such schedule and any amendments thereto as required by this paragraph, a resolution of disapproval of such schedule or amendments, in whole or in part, the Secretary shall publish a new schedule of expected family contributions in the Federal Register not later than fifteen days after the adoption of such resolution of disapproval. Such new schedule shall take into consideration such recommendations as may be made in either House in connection with such resolution. If within fifteen days following the submission of the <sidenote><p class="indent0 firstIndent0 fontsize8">Publication in Federal Register.</p></sidenote>revised schedule, either the Senate or the House of Representatives again adopts a resolution of disapproval, in whole or in part, of such revised schedule, the Secretary shall publish a new schedule of expected family contributions in the Federal Register not later than fifteen days after the adoption of such resolution of disapproval. This procedure shall be repeated until neither the Senate nor the House of Representatives adopts a resolution of disapproval. The Secretary shall publish together with each new schedule a statement identifying the recommendations made in either House in connection with such resolution of disapproval and explaining his reasons for the new schedule.”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The first sentence of section 431(d)(1) of the General Education Provisions Act is amended by inserting after “<quotedText>final regulation</quotedText>” the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1232">20 USC 1232</ref>.</p></sidenote>first time it appears the following: “<quotedText>(except expected family contribution schedules and any amendments thereto promulgated pursuant to sections 428(a)(2) (D) and (E) and 482(a) (1) and (2) of the Higher Education Act of 1965)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 482(b)(4) of the Act is amended to read as follows: <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 451.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1445">94 Stat. 1445</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1089">20 USC 1089</ref>.</p></sidenote> <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>In determining the expected family contribution under this section for any academic year after academic year 1981–1982, the Secretary shall establish a series of assessment rates to be applied to parental discretionary income.”.</content></paragraph> </quotedContent> </content> </subsection> </section> <page identifier="/us/stat/95/454">95 STAT. 454</page> <section> <heading class="centered smallCaps">auxiliary program</heading><num value="534"><inline class="smallCaps">Sec</inline>. 534. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1419">94 Stat. 1419</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1077a">20 USC 1077a</ref>.</p></sidenote> <content class="inline">Section 427A of the Act is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><content>Except as otherwise provided in this subsection, the applicable <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1424">94 Stat. 1424</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1078–2">20 USC 1078–2</ref>.</p></sidenote>rate of interest on loans made pursuant to section 428B on or after October 1, 1981, shall be 14 per centum per annum on the unpaid principal balance of the loan.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>If for any twelve-month period beginning on or after October 1, 1981, the Secretary, after consultation with the Secretary of the Treasury, determines that the average of the bond equivalent rates of ninety-one-day Treasury bills auctioned for such twelve-month period is equal to or less than 14 per centum, the applicable rate of interest for loans made pursuant to section 428B on and after the first day of the first month beginning after the date of publication of such determination shall be 12 per centum per annum on the unpaid principal balance of the loan.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>If for any twelve-month period beginning on or after the date of publication of a determination under paragraph (2), the Secretary, after consultation with the Secretary of the Treasury, determines that the average of the bond equivalent rates of ninety-one-day Treasury bills auctioned for such twelve-month period exceeds 14 per centum, the applicable rate of interest for loans made pursuant to section 428B on and after the first day of the first month beginning after the date of publication of that determination under this paragraph shall be 14 per centum per annum on the unpaid principal balance of the loan.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 428B(c)(3) is amended by striking out everything after “<quotedText>unpaid principal balance of the loan,</quotedText>” and inserting in lieu thereof the following: “<quotedText>except as otherwise required by section 427A(c).</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1425">94 Stat. 1425</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1087–1">20 USC 1087–1</ref>.</p></sidenote> <chapeau class="inline">Section 438(b)(2) of the Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out subparagraphs (A), (B), and (C) and inserting in lieu thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>Subject to subparagraph (B) and paragraph (4), the special allowance paid pursuant to this subsection on loans shall be computed (i) by determining the average of the bond equivalent rates of ninety-one-day Treasury bills auctioned for such three month period, (ii) by subtracting the applicable interest rate on such loans from such average, (iii) by adding 3.5 per centum to the resultant per centum, and (iv) by dividing the resultant per centum by four.”;</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by redesignating subparagraph (D) as subparagraph (B); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out “<quotedText>subparagraph (A), (B), or (C)</quotedText>” in subparagraph (B) (as so redesignated) and inserting in lieu thereof “<quotedText>subparagraph (A)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 428B(a) of the Act is amended by inserting “<quotedText>(1)</quotedText>” after “<quotedText>(a)</quotedText>” and by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Graduate or professional students (as defined by regulations of the Secretary) and independent undergraduate students (as defined <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1445">94 Stat. 1445</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1089">20 USC 1089</ref>.</p></sidenote>in section 482(c)(2)) shall be eligible to borrow funds under this section in amounts specified in subsection (b) (treating graduate and professional students as parents for the purposes of such subsection), and unless otherwise specified in subsections (c) and (d), such loans shall have the same terms, conditions, and benefits as all other loans made under this part.”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1424">94 Stat. 1424</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1078–2">20 USC 1078–2</ref>.</p></sidenote> <content class="inline">Section 428B(b) of the Act is amended by adding at the end thereof the following new paragraph: <page identifier="/us/stat/95/455">95 STAT. 455</page> <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><subparagraph class="inline"><num value="A">(A) </num><content>Subject to subparagraph (B) of this paragraph, the maximum amount an independent undergraduate student may borrow under this section in any academic year or its equivalent (as defined by regulation by the Secretary) is equal to (i) $2,500, minus (ii) the amount of all other loans under this part to such student for such academic year or its equivalent.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>The aggregate insured unpaid principal amount for insured loans made to an independent undergraduate student under this part (including loans made under this section) shall not exceed $12,500.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The heading of section 428B of the Act is amended to read as follows: <quotedContent> <heading class="centered smallCaps">“auxiliary loans to assist students”.</heading> </quotedContent> </content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">independent student loan limitations</heading><num value="535"><inline class="smallCaps">Sec</inline>. 535. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 425(a)(1) of the Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1416">94 Stat. 1416</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1075">20 USC 1075</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out clause (A) and by redesignating clauses (B), (C), and (D) as clauses (A), (B), and (C), respectively; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>clause (C)</quotedText>” in the last sentence of such section and inserting in lieu thereof “<quotedText>clause (B)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 425(a)(2) of the Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>(other than an independent student)</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>$15,000 in the case of any independent student who has not successfully completed a program of undergraduate education,</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>The matter preceding subdivision (i) of section 428(b)(1)(A) of the Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 452.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>(other than an independent student)</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>or not more than $3,000 in the case of an independent student (defined in accordance with section 482(c)(2)) who has not successfully completed a program of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1445">94 Stat. 1445</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1089">20 USC 1089</ref>.</p></sidenote>undergraduate education,</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><chapeau>Section 428(b)(1)(B) of the Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>(other than an independent student)</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>$15,000 in the case of any independent student who has not successfully completed a program of undergraduate education,</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><chapeau>Section 428A of the Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1416/1417">94 Stat. 1416, 1417</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1078–1">20 USC 1078–1</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>, other than an independent student,</quotedText>” in subsection (a)(1)(A) and in subsection (a)(2)(A);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>$3,000 (in the case of an independent student (as defined in section 482(c)(2)) who has not successfully completed a program of undergraduate education),</quotedText>” in each such subsection;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out “<quotedText>(other than an independent student)</quotedText>” in each such subsection; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by striking out “<quotedText>$15,000 in the case of any independent student who has not successfully completed a program of undergraduate education,</quotedText>” in each such subsection.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">origination fees</heading><num value="536"><inline class="smallCaps">Sec</inline>. 536. </num><subsection class="inline"><num value="a">(a) </num><content>Section 438 of the Act is amended by redesignating <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1425">94 Stat. 1425</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1087–1">20 USC 1087–1</ref>.</p></sidenote>subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><content>Notwithstanding subsection (b), the total amount of interest and special allowance payable under section 428(a)(3)(A) and subsec-<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1078">20 USC 1078</ref>.</p></sidenote><page identifier="/us/stat/95/456">95 STAT. 456</page>tion (b) of this section, respectively, to any holder shall be reduced by the Secretary by the amount which the lender is authorized to charge as an origination fee in accordance with paragraph (2) of this subsection. If the total amount of interest and special allowance <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1078">20 USC 1078</ref>.</p></sidenote>payable under section 428(a)(3)(A) and subsection (b) of this section, respectively, is less than the amount the lender was authorized to charge borrowers for origination fees in that quarter, the Secretary shall deduct the excess amount from the subsequent quarters’ payments until the total amount has been deducted.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>With respect to any loan (other than loans made under section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1424/1430">94 Stat. 1424, 1430</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1078–2/1087–2">20 USC 1078–2, 1087–2</ref>.</p><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 450.</p></sidenote>428B and section 439(o)) for which a completed note or other written evidence of the loan was sent or delivered to the borrower for signing on or after 10 days after the date of enactment of the Postsecondary Student Assistance Amendments of 1981, each eligible lender under this part is authorized to charge the borrower an origination fee in an amount not to exceed 5 per centum of the principal amount of the loan, which may be deducted from the proceeds of the loan prior to payment to the borrower.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Such origination fee shall not be taken into account for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1419">94 Stat. 1419</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1077a">20 USC 1077a</ref>.</p></sidenote>purposes of determining compliance with section 427A.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><chapeau>The lender shall disclose to the borrower the amount and method of calculating the origination fee. For any loan for which the lender is authorized to charge an origination fee and which is made prior to August 1, 1982—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>this disclosure need not meet the requirements of the Truth in Lending Act (15 U.S.C. 1601 et seq.) or the disclosure requirements of any State law;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>for purposes of such Act, a lender may disclose either in the note or other written evidence of the loan or in a supplementary letter (which need not be signed by the borrower);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>for purposes of such Act, the origination fee shall not be taken into account in calculating and disclosing the annual percentage rate; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>a lender or an assignee shall not incur civil liability under <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1640">15 USC 1640</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1607">15 USC 1607</ref>.</p></sidenote>section 130 of such Act nor be subject to any administrative enforcement action pursuant to section 108 of such Act for disclosures in connection with such loans.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1078">20 USC 1078</ref>.</p><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 455.</p></sidenote> <content class="inline">Section 428(a)(3)(A) of the Act is amended by inserting “<quotedText>and subject to section 438(c)</quotedText>” after “<quotedText>Except as provided in paragraph (8)</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">administrative savings; technical amendments</heading><num value="537"><inline class="smallCaps">Sec</inline>. 537. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 428(e) of the Act is repealed.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1453">94 Stat. 1453</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1096">20 USC 1096</ref>.</p></sidenote> <content class="inline">The first sentence of section 489(a) of the Act is amended by striking out “<quotedText>$10</quotedText>” and inserting in lieu thereof “<quotedText>$5</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1077">20 USC 1077</ref>.</p></sidenote> <content class="inline">Section 427(c) of the Act is amended by striking out “<quotedText>$360</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>$600</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1078">20 USC 1078</ref>.</p></sidenote> <content class="inline">Section 428(b)(1)(L) of the Act is amended by striking out “<quotedText>$360</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>$600</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>Section 428(c) of the Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>in paragraph (2)(D), by striking out “<quotedText>but shall not otherwise provide for subrogation of the United States to rights of any insurance beneficiary</quotedText>” and inserting in lieu thereof “<quotedText>but shall provide for subrogation of the United States to the rights of any insurance beneficiary only to the extent required for purposes of paragraph (8)</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding at the end thereof the following new paragraph: <page identifier="/us/stat/95/457">95 STAT. 457</page> <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><content>If the Secretary determines that the protection of the Federal fiscal interest so requires, a State or nonprofit private institution or organization with which the Secretary has an agreement under subsection (b) shall assign to the Secretary any loan of which it is the holder and for which the Secretary has made a payment pursuant to paragraph (1) of this subsection.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num><content>The matter following section 428(b)(1)(M)(viii) of the Act is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1078">20 USC 1078</ref>.</p></sidenote>amended by striking out “<quotedText>, and that no repayment of principal of any loan for any period of study, training, service, or unemployment described in this clause or any combination thereof shall begin until six months after the completion of such period or combination thereof</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Section 427(a)(2)(C) of the Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1077">20 USC 1077</ref>.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>that any such period</quotedText>” and inserting in lieu thereof “<quotedText>and that any such period</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>, and that no repayment of principal of any loan for a period of study, training, service, or unemployment described in this clause or any combination thereof shall begin until six months after the completion of such period or combination thereof</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 427(a)(2)(B) of the Act is amended by striking out “<quotedText>not earlier than</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 428(b)(1)(E) of the Act is amended by striking out “<quotedText>not earlier than</quotedText>”.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">amendments concerning the student loan marketing association</heading><num value="538"><inline class="smallCaps">Sec</inline>. 538. </num><subsection class="inline"><num value="a">(a) </num><content>Section 439(a) of the Act is amended by striking out <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1087–2">20 USC 1087–2</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1079">20 USC 1079</ref>.</p></sidenote>“<quotedText>insured</quotedText>” wherever it appears, and by inserting after “<quotedText>student loans,</quotedText>” the first time it appears the following: “<quotedText>including loans which are insured</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 439(a) of the Act is further amended by striking out “<quotedText>and</quotedText>” at the end of clause (1), and by striking the period at the end of clause (2) and inserting in lieu thereof the following: “<quotedText>; and (3) to assure nationwide the establishment of adequate loan insurance programs for students, to provide for an additional program of loan insurance to be covered by agreements with the Secretary.</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 439(d)(1) of the Act is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>The Association is authorized, subject to the provisions of this section—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>pursuant to commitments or otherwise to make advances on the security of, purchase, or repurchase, service, sell or resell, offer participations, or pooled interests or otherwise deal in, at prices and on terms and conditions determined by the Association, student loans which are insured by the Secretary under this part or by a State or nonprofit private institution or organization with which the Secretary has an agreement under section 428(b);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>to buy, sell, hold, underwrite, and otherwise deal in obligations, if such obligations are issued, for the purpose of making or purchasing insured loans, by a State or nonprofit private institution or organization which has an agreement with the Secretary under section 428(b) or by an eligible lender in a State described in section 435(g)(1) (D) or (F);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>to undertake a program of loan insurance pursuant to agreements with the Secretary under sections 428 and 428(A), and except with respect to loans under section 439(o), the Secre-<page identifier="/us/stat/95/458">95 STAT. 458</page>tary may enter into an agreement with the Association for such purpose only if the Secretary determines that (i) eligible borrowers are seeking and unable to obtain loans under this part, and (ii) no State or nonprofit private institution or organization having an agreement with the Secretary for a program of loan insurance under this part is capable of or willing to provide a program of loan insurance for such borrowers; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>to undertake any other activity which the Board of Directors of the Association determines to be in furtherance of the programs of insured student loans authorized under this part or will otherwise support the credit needs of students.</content></subparagraph> </paragraph> <continuation class="indent0 firstIndent0 fontsize10">The Association is further authorized to undertake any activity with regard to student loans which are not insured or guaranteed as provided for in this subsection as it may undertake with regard to insured or guaranteed student loans. Any warehousing advance made on the security of such loans shall be subject to the provisions of paragraph (3) of this subsection to the same extent as a warehousing advance made on the security of insured loans.”.</continuation> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1087–2">20 USC 1087–2</ref>.</p></sidenote> <content class="inline">Section 439(1) of the Act is amended by adding at the end thereof the following: “<quotedText>The obligations of the Association shall be deemed to be obligations of the United States for purposes of section 3701 of the Revised Statutes (31 U.S.C. 742). For the purpose of the distribution of its property pursuant to section 726 of title 11, United States Code, the Association shall be deemed a person within the meaning of such title.</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">direct student loan interest rate</heading><num value="539"><inline class="smallCaps">Sec</inline>. 539. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1087dd">20 USC 1087dd</ref>.</p></sidenote> <content class="inline">Section 464(c)(1)(D) of the Act is amended by striking out “<quotedText>October 1, 1980,</quotedText>” and inserting in lieu thereof “<quotedText>July 1, 1981, or 5 per centum in the case of any loan made on or after October 1, 1981,</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">effective dates</heading><num value="540"><inline class="smallCaps">Sec</inline>. 540. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1078">20 USC 1078 note</ref>.</p></sidenote> <content class="inline">Except as provided in subsection (b), the amendments made by this subtitle take effect on October 1, 1981.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>The amendments made by section 532 (other than subsection (3)(4)) shall apply. to loans for which the statement required by section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1078">20 USC 1078</ref>.</p></sidenote>428(a)(2)(A) of the Act is completed by the eligible institution on or after October 1, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The amendments made by section 534(b) shall apply to loans made on or after October 1, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The amendments made by section 536 shall take effect as provided therein.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>The amendments made by section 538 shall take effect 30 days after the date of enactment of this Act.</content></paragraph> </subsection> </section> </subtitle> <subtitle><num value="C">Subtitle C— </num><sidenote><p class="indent0 firstIndent0 fontsize8">Consolidated Refugee Education Assistance Act.</p></sidenote> <heading>Refugee Education Consolidation</heading> <section> <heading class="centered smallCaps">short title</heading><num value="541"><inline class="smallCaps">Sec</inline>. 541. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote> <content class="inline">This subtitle may be cited as the “<shortTitle role="subtitle">Consolidated Refugee Education Assistance Act</shortTitle>”.</content> </section> <section> <heading class="centered smallCaps">repealer</heading><num value="542"><inline class="smallCaps">Sec</inline>. 542. </num><chapeau>The following provisions are hereby repealed:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Section 4A of the Act of September 30, 1950 (Public Law <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s239a">20 USC 239a</ref>.</p></sidenote>81–874).</content></paragraph> <page identifier="/us/stat/95/459">95 STAT. 459</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Titles I and II of the Indochina Refugee Children Assistance Act of 1976. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1211b">20 USC 1211b note</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Section 317 of the Adult Education Act. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1211b">20 USC 1211b</ref>.</p></sidenote></content></paragraph> </section> <section> <heading class="centered smallCaps">amendments to title i of the refugee education assistance act of 1980</heading><num value="543"><inline class="smallCaps">Sec</inline>. 543. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 101 of the Refugee Education Assistance Act of 1980 is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out paragraph (1) and by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by inserting after paragraph (2) (as so redesignated) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>The term ‘eligible participant’ means any alien who— <sidenote><p class="indent0 firstIndent0 fontsize8">“Eligible participant.”</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>has been admitted into the United States as a refugee under section 207 of the Immigration and Nationality Act; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1157">8 USC 1157</ref>.</p></sidenote></content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>has been paroled into the United States as a refugee by the Attorney General pursuant to section 212(d)(5) of such Act; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1182">8 USC 1182</ref>.</p></sidenote></content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>is an applicant for asylum, or has been granted asylum, in the United States; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>has fled from the alien’s country of origin and has, pursuant to an Executive order of the President, been permitted to enter the United States and remain in the United States indefinitely for humanitarian reasons;</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">but only during the 36-month beginning with the first month in which the alien entered the United States (in the case of an alien described in (A), (B), or (D)) or the month in which the alien applied for asylum (in the case of an alien described in subparagraph (C)).”; and</continuation> </paragraph> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out paragraph (4) and redesignating paragraph (5) as paragraph (4).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>For purposes of the Refugee Education Assistance Act of 1980, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote>an alien who entered the United States on or after November 1, 1979, and is in the United States with the immigration status of a Cuban-Haitian entrant (status pending) shall be considered to be an eligible participant (within the meaning of section 101(3) of such Act), but only during the 36-month period beginning with the first month in which the alien entered the United States as such an entrant or otherwise first acquired such status.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 103(b)(1)(A) of the Refugee Education Assistance Act of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote>1980 is amended by striking out “<quotedText>aggregate of the amounts to which all States are entitled</quotedText>” and inserting in lieu thereof “<quotedText>amount authorized to be appropriated</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 104 of the Refugee Education Assistance Act of 1980 is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote>amended by striking out “<quotedText>1 percent of the amounts which that State educational agency is entitled to receive for that period under this Act</quotedText>” and inserting in lieu thereof “<quotedText>2 percent of the amount which that State educational agency receives for that period under this Act</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Title I of the Refugee Education Assistance Act of 1980 is amended by adding at the end thereof the following new section: <quotedContent> <section> <heading class="centered smallCaps">“consultation with other agencies</heading><num value="106">“<inline class="smallCaps">Sec</inline>. 106. </num><content>To the extent that may be appropriate to facilitate the determination of the amount of any reductions under sections 201(3)(2), 301(b)(3), and 401(b)(2), the Secretary shall consult with the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote><page identifier="/us/stat/95/460">95 STAT. 460</page>heads of other agencies providing assistance to eligible participants in order to secure information concerning the disbursement of funds for educational purposes under programs administered by them and provide, wherever feasible, for coordination among those programs <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote>and the programs under titles 11 through IV of this Act.”.</content> </section> </quotedContent> </content> </subsection> </section> <section> <heading class="centered smallCaps">amendments to title ii of the refugee education assistance act of 1980</heading><num value="544"><inline class="smallCaps">Sec</inline>. 544. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Grants to State educational agencies.</p></sidenote> <chapeau class="inline">Section 201 of the Refugee Education Assistance Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote> <content class="inline">by amending the first sentence of subsection (a)(1) to read as follows: “The Secretary shall, in accordance with the provisions of this title, make grants to State educational agencies for fiscal year 1981, and for each subsequent fiscal year, for the purposes of assisting local educational agencies of that State in providing basic education for eligible participants enrolled in elementary or secondary public schools.”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>in the second sentence of subsection (a)(1), by striking out “<quotedText>Cuban and Haitian refugee children</quotedText>” and inserting in lieu thereof “<quotedText>eligible participants</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by amending subsection (b)(1) to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Grant entitlement formula.</p></sidenote> <content class="inline">As soon as possible after the date of the enactment of the Consolidated Refugee Education Assistance Act, the Secretary shall establish a formula (reflecting the availability of the full amount authorized for this title under section 203(b)) by which to determine the amount of the grant which each State educational agency is entitled to receive under this title for any fiscal year. The formula established by the Secretary shall take into account the number of years that an eligible participant assisted under this title has resided within the United States and the relative costs, by grade level, of providing education for elementary and secondary school children. On the basis of the formula the Secretary shall allocate among the State educational agencies, for each fiscal year, the amounts available to carry out this title, subject to such reductions or adjustments as may be required under paragraph (2) or subsection (c). Funds shall be allocated among State educational agencies to the formula without regard to variations in educational costs among different geographical areas.”;</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by amending the first sentence of subsection (b)(2) to read as follows: “The amount of the grant to which a State educational agency is otherwise entitled for any fiscal year, as determined under paragraph (1), shall be reduced by the amounts made available for such fiscal year under any other Federal law (other than section 303 of the Elementary and Secondary Education Act <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s843">20 USC 843</ref>.</p></sidenote>of 1965) for expenditure within the State for the same purposes as those for which funds are made available under this title, except that the reduction shall be made only to the extent that (A) such amounts are made available for such purposes specifically because of the refugee, parolee, or asylee status of the individuals to be served by such funds, and (B) such amounts are made available to provide assistance to individuals eligible for services under this title.”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>in subsection (c), by striking out “<quotedText>Cuban and Haitian refugee children</quotedText>” and inserting in lieu thereof “<quotedText>eligible participants</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote> <chapeau class="inline">Section 202(a) of the Refugee Education Assistance Act of 1980 is amended—</chapeau> <page identifier="/us/stat/95/461">95 STAT. 461</page> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by amending paragraph (2) to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>provide assurances that such payments will be distributed among local educational agencies within that State in accordance with the formula established by the Secretary under section 201, subject to any reductions in payments for those local <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote>educational agencies identified under paragraph (3) to which funds described by section 201(b)(2) are made available for the same purposes under other Federal laws;”;</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by inserting after paragraph (2) the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>specify the amount of funds described by section 201(b)(2) which are made available under other Federal laws for expenditure within the State for the same purposes as those for which funds are made available under this title and the local educational agencies to which such funds are made available;”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>Section 203 of the Refugee Education Assistance Act of 1980 is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote>amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by amending the section heading to read as follows: <quotedContent> <heading class="centered smallCaps">“payments and authorizations”;</heading> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting “<quotedText>(a)</quotedText>” after the section designation; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>For fiscal year 1981 and for each subsequent fiscal year, there is authorized to be appropriated, in the manner specified under section 102, to make payments under this title an amount equal to the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote>product of—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the total number of eligible participants enrolled in elementary or secondary public schools under the jurisdiction of local educational agencies within all the States (other than the jurisdictions to which section 103 is applicable) during the fiscal <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote>year for which the determination is made,</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">multiplied by—</continuation> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>$400.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">amendments to title iii of the refugee education assistance act of 1980</heading><num value="545"><inline class="smallCaps">Sec</inline>. 545. </num><subsection class="inline"><num value="a">(a) </num><content>The heading of title III of the Refugee Education <sidenote><p class="indent0 firstIndent0 fontsize8">Grants to State educational agencies.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote>Assistance Act of 1980 is amended by striking out “<quotedText>REFUGEE</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 301 of the Refugee Education Assistance Act of 1980 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>in subsection (a), by striking out “<quotedText>for each of the fiscal years 1981, 1982, and 1983</quotedText>” and inserting in lieu thereof “<quotedText>for fiscal year 1981, and for each subsequent fiscal year,</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by amending subsection (b)(1) to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Except as provided in paragraph (3) of this subsection and in subsections (c) and (d) of this section, the amount of the grant to which a State educational agency is entitled under this title for any fiscal year shall be equal to the sum of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the amount equal to the product of (i) the number of eligible participants enrolled during the period for which the determination is made in elementary or secondary public schools under the jurisdiction of each local educational agency described under paragraph (2) within that State, or in any elementary or secondary nonpublic school within the district served by each <page identifier="/us/stat/95/462">95 STAT. 462</page>such local educational agency, who have been eligible participants less than one year, multiplied by (ii) $700;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the amount equal to the product of (1) the number of eligible participants enrolled during the period for which the determination is made in elementary or secondary public schools under the jurisdiction of each local educational agency described under paragraph (2) within that State, or in any elementary or secondary nonpublic school within the district served by each such local educational agency, who have been eligible participants at least one year but not more than two years, multiplied by (ii) $500; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>the product of (i) the number of eligible participants enrolled during the period for which the determination is made in elementary or secondary public schools under the jurisdiction of each local educational agency described under paragraph (2) within that State, or in any elementary or secondary nonpublic school within the district served by each such local educational agency, who have been eligible participants more than two years but not more than three years, multiplied by (ii) $300.”;</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>in subsection (b)(2), by striking out “<quotedText>Cuban and Haitian refugee children and Indochinese refugee children</quotedText>” and inserting in lieu thereof “<quotedText>eligible participants</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>in the first sentence of subsection (b)(3), by striking out “<quotedText>Cuban and Haitian refugee children and Indochinese refugee children</quotedText>” and all that follows through the period and inserting in lieu thereof “<quotedText>eligible participants, except that no reduction under this paragraph shall be made for any funds made available to the State under section 303 of the Elementary and Secondary <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s843">20 USC 843</ref>.</p></sidenote>Education Act of 1965.</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>in subsection (b)(5), by striking out “<quotedText>Cuban and Haitian refugee children who meet the requirements of section 101(1)</quotedText>” and inserting in lieu thereof “<quotedText>eligible participants who meet the requirements of section 101(4)</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>in subsection (c), by striking out “<quotedText>Cuban and Haitian refugee children and Indochinese refugee children</quotedText>” and inserting in lieu thereof “<quotedText>eligible participants</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote> <content class="inline">Section 302 of the Refugee Education Assistance Act of 1980 is amended by striking out “<quotedText>Cuban and Haitian refugee children and Indochinese refugee children</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>eligible participants</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote> <chapeau class="inline">Section 303(a) of the Refugee Education Assistance Act of 1980 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>in paragraph (3), by inserting before the semicolon “<quotedText>, subject to any reductions in payments for local educational agencies identified under paragraph (5) to take into account the funds <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote>described by section 301(b)(3) that are made available for educational, or education-related, services or activities for eligible participants enrolled in elementary or secondary public schools under the jurisdiction of such agencies or elementary or secondary nonpublic schools within the districts served by such agencies;</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by redesignating paragraphs (5) and (6) as paragraphs (6) and (7), respectively;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by inserting after paragraph (4) the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>specify (A) the amount of funds described by section 301(b)(3) that are made available under other Federal laws to agencies or other entities for educational, or education-related, services or activities within the State because of a significant <page identifier="/us/stat/95/463">95 STAT. 463</page>concentration of eligible participants, and (B) the local educational agencies within whose districts are eligible participants provided services from such funds who are enrolled in elementary or secondary schools under the jurisdiction of such agencies, or in elementary or secondary nonpublic schools served by such agencies;”; and</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>in paragraph (7), as so redesignated, by striking out “<quotedText>Cuban and Haitian refugee children and Indochinese refugee children</quotedText>” and inserting in lieu thereof “<quotedText>eligible participants</quotedText>”.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">amendments to title iv of the refugee education assistance act of 1980</heading><num value="546"><inline class="smallCaps">Sec</inline>. 546. </num><subsection class="inline"><num value="a">(a) </num><content>Title IV of the Refugee Education Assistance Act of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote>1980 is amended by striking out “<quotedText>Cuban and Haitian refugee adults</quotedText>” and “Haitian and Cuban refugee adults” each place such terms appear and inserting in lieu thereof “<quotedText>eligible participants</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 401(a) of the Refugee Education Assistance Act of 1980 is amended by striking out “<quotedText>for each of the fiscal years 1982 and 1983</quotedText>” and inserting in lieu thereof “<quotedText>for fiscal year 1982, and for each subsequent fiscal year</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The first sentence of section 401(b)(2) of the Refugee Education <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote>Assistance Act of 1980 is amended to read as follows: “The amount of the grant to which a State educational agency is otherwise entitled for any fiscal year, as determined under paragraph (1), shall be reduced by the amounts made available for such fiscal year under any other Federal law (other than section 303 of the Elementary and Secondary Education Act of 1965) for expenditure within the State for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s843">20 USC 843</ref>.</p></sidenote>the same purposes as those for which funds are made available under this title, except that the reduction shall be made only to the extent that (A) such amounts are made available for such purposes specifically because of the refugee, parolee, or asylee status of the individuals to be served by such funds, and (B) such amounts are made available to provide assistance to individuals eligible for services under this title.”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>Section 403(a) of the Refugee Education Assistance Act of 1980 is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote>amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting after paragraph (1) the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>specify the amount of reduction required under section 401(b)(2);”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">effective date</heading><num value="547"><inline class="smallCaps">Sec</inline>. 547. </num><content>This subtitle shall take effect on October 1, 1981. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote></content> </section> </subtitle> <subtitle><num value="D">Subtitle D—</num><heading>Elementary and Secondary Education Block Grant</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Education Consolidation and Improvement Act of 1981.</p></sidenote> <section class="firstIndent1 fontsize10"><num value="551"><inline class="smallCaps">Sec</inline>. 551. </num><content>This subtitle may be cited as the “<shortTitle role="subtitle">Education Consolidation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3801">20 USC 3801 note</ref>.</p></sidenote>and Improvement Act of 1981</shortTitle>”.</content> </section> <page identifier="/us/stat/95/464">95 STAT. 464</page> <chapter><num value="1">CHAPTER 1—</num><heading>FINANCIAL ASSISTANCE TO MEET SPECIAL EDUCATIONAL NEEDS OF DISADVANTAGED CHILDREN</heading> <section> <heading class="centered smallCaps">declaration of policy</heading><num value="552"><inline class="smallCaps">Sec</inline>. 552. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3801">20 USC 3801</ref>.</p></sidenote> <content class="inline">The Congress declares it to be the policy of the United States to continue to provide financial assistance to State and local educational agencies to meet the special needs of educationally deprived children, on the basis of entitlements calculated under title <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2701">20 USC 2701</ref>.</p></sidenote>I of the Elementary and Secondary Education Act of 1965, but to do so in a manner which will eliminate burdensome, unnecessary, and unproductive paperwork and free the schools of unnecessary Federal supervision, direction, and control. Further, the Congress recognizes the special educational needs of children of low-income families, and that concentrations of such children in local educational agencies adversely affect their ability to provide educational programs which will meet the needs of such children. The Congress also finds that Federal assistance for this purpose will be more effective if education officials, principals, teachers, and supporting personnel are freed from overly prescriptive regulations and administrative burdens which are not necessary for fiscal accountability and make no contribution to the instructional program.</content> </section> <section> <heading class="centered smallCaps">duration of assistance</heading><num value="552"><inline class="smallCaps">Sec</inline>. 552. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3802">20 USC 3802</ref>.</p></sidenote> <content class="inline">During the period beginning October 1, 1982, and ending September 30, 1987, the Secretary shall, in accordance with the provisions of this subtitle, make payments to State educational agencies for grants made on the basis of entitlements created under title I of the Elementary and Secondary Education Act of 1965 and calculated in accordance with provisions of that title in effect on September 30, 1982.</content> </section> <section> <heading class="centered smallCaps">applicability of title i provisions of law</heading><num value="554"><inline class="smallCaps">Sec</inline>. 554. </num><subsection class="inline"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3803">20 USC 3803</ref>.</p></sidenote><inline class="smallCaps">Program Eligibility</inline>.—</heading><chapeau>Except as otherwise provided in this subtitle, the Secretary shall make payments based upon the amount of, and eligibility for, grants as determined under the following provisions of title I of the Elementary and Secondary Education Act in effect on September 30, 1982:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2711">20 USC 2711</ref>.</p></sidenote> <chapeau class="inline">Part A—“Programs Operated by Local Education Agencies”:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>Subpart 1—“Basic Grants”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2721">20 USC 2721</ref>.</p></sidenote> <content class="inline">Subpart 2—“Special Grants”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2761">20 USC 2761</ref>.</p></sidenote> <chapeau class="inline">Part B—“Programs Operated by State Agencies”:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>Subpart 1—“Programs for Migratory Children”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2771">20 USC 2771</ref>.</p></sidenote> <content class="inline">Subpart 2—“Programs for Handicapped Children”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2781">20 USC 2781</ref>.</p></sidenote> <content class="inline">Subpart 3—“Programs for Neglected and Delinquent Children”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2791">20 USC 2791</ref>.</p></sidenote> <content class="inline">Subpart 4—“General Provisions for State Operated Programs”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Administrative Provisions</inline>.—</heading><chapeau>The Secretary, in making the payments and determinations specified in subsection (a), shall continue to use the following provisions of title I of the Elementary and Secondary Education Act as in effect on September 30, 1982:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2841">20 USC 2841</ref>.</p></sidenote> <chapeau class="inline">Part E—“Payments”:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>Section 191—“Payment Methods”;</content></subparagraph> <page identifier="/us/stat/95/465">95 STAT. 465</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Section 192—“Amount of Payments to Local Educational <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2842">20 USC 2842</ref>.</p></sidenote>Agencies”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>Section 193—“Adjustments Where Necessitated by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2843">20 USC 2843</ref>.</p></sidenote>Appropriations”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>Section 194—“Payments for State Administration”, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2844">20 USC 2844</ref>.</p></sidenote>subject to subsection (d) of this section.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Part F—“General Provisions”: <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2851">20 USC 2851</ref>.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>Section 197—“Limitation on Grants to Puerto Rico”; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2853">20 USC 2853</ref>.</p></sidenote>and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Section 198—“Definitions” and conforming amendments <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2854">20 USC 2854</ref>.</p></sidenote>to other Acts, except that only those definitions applicable to this subtitle shall be used.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Applicability Rule</inline>.—</heading><content>The provisions of title I of the Elementary and Secondary Education Act of 1965 which are not specifically made <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2701">20 USC 2701</ref>.</p></sidenote>applicable by this chapter shall not be applicable to programs authorized under this chapter.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Amendment</inline>.—</heading><content>Section 194(a)(1) of the Elementary and Secondary <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2844">20 USC 2844</ref>.</p></sidenote>Education Act of 1965 is amended by striking out “<quotedText>1.5 per centum</quotedText>” and inserting in lieu thereof “<quotedText>1 per centum</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">authorized programs</heading><num value="555"><inline class="smallCaps">Sec</inline>. 555. </num><subsection class="inline"><num value="a">(a) </num> <heading><inline class="smallCaps">General</inline>.—</heading><content>Each State and local educational agency <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3804">20 USC 3804</ref>.</p></sidenote>shall use the payments under this chapter for programs and projects (including the acquisition of equipment and, where necessary, the construction of school facilities) which are designed to meet the special educational needs of educationally deprived children.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Program Design</inline>.—</heading><content>State agency programs shall be designed to serve those categories of children counted for eligibility for grants under section 554(a)(2) in accordance with the requirements of this chapter.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Program Description</inline>.—</heading><content>A local education agency may use funds received under this chapter only for programs and projects which are designed to meet the special educational needs of educationally deprived children identified in accordance with section 556(b)(2), and which are included in an application for assistance approved by the State educational agency. Such programs and projects may include the acquisition of equipment and instructional materials, employment of special instructional and counseling and guidance personnel, employment and training of teacher aides, payments to teachers of amounts in excess of regular salary schedules as a bonus for service in schools serving project areas, the training of teachers, the construction, where necessary, of school facilities, other expenditures authorized under title I of the Elementary and Secondary Education Act as in effect September 30, 1982, and planning for such programs and projects.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Records and Information</inline>.—</heading><content>Each State educational agency shall keep such records and provide such information to the Secretary as may be required for fiscal audit and program evaluation (consistent with the responsibilities of the Secretary under this chapter).</content> </subsection> </section> <section> <heading class="centered smallCaps">approval of applications</heading><num value="556"><inline class="smallCaps">Sec</inline>. 556. </num><subsection class="inline"><num value="a">(a) </num> <heading><inline class="smallCaps">Application by Local Educational Agency</inline>.—</heading><content>A local <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3805">20 USC 3805</ref>.</p></sidenote>educational agency may receive a grant under this chapter for any fiscal year if it has on file with the State educational agency an application which describes the programs and projects to be conducted with such assistance for a period of not more than three years, <page identifier="/us/stat/95/466">95 STAT. 466</page>and such application has been approved by the State educational agency.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Application Assurances</inline>.—</heading><chapeau>The application described in subsection (a) shall be approved if it provides assurances satisfactory to the State educational agency that the local educational agency will keep such records and provide such information to the State educational agency as may be required for fiscal audit and program evaluation (consistent with the responsibilities of the State agency under this chapter), and that the programs and projects described—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><subparagraph class="inline"><num value="A">(A) </num><content>are conducted in attendance areas of such agency having the highest concentrations of low-income children;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>are located in all attendance areas of an agency which has a uniformly high concentration of such children; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>are designed to utilize part of the available funds for services which promise to provide significant help for all such children served by such agency;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>are based upon an annual assessment of educational needs which identifies educationally deprived children in all eligible attendance areas, permits selection of those children who have the greatest need for special assistance, and determines the needs of participating children with sufficient specificity to ensure concentration on those needs;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>are of sufficient size, scope, and quality to give reasonable promise of substantial progress toward meeting the special educational needs of the children being served and are designed and implemented in consultation with parents and teachers of such children;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>will be evaluated in terms of their effectiveness in achieving the goals set for them, and that such evaluations shall include objective measurements of educational achievement in basic skills and a determination of whether improved performance is sustained over a period of more than one year; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>make provision for services to educationally deprived children attending private elementary and secondary schools in accordance with section 557.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">participation of children enrolled in private schools</heading><num value="557"><inline class="smallCaps">Sec</inline>. 557. </num><subsection class="inline"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3806">20 USC 3806</ref>.</p></sidenote><inline class="smallCaps">General Requirements</inline>.—</heading><content>To the extent consistent with the number of educationally deprived children in the school district of the local educational agency who are enrolled in private elementary and secondary schools, such agency shall make provisions for including special educational services and arrangements (such as dual enrollment, educational radio and television, and mobile educational services and equipment) in which such children can participate and which meet the requirements of sections 555(c), 556(b) (2), (3), and (4), and 558(b). Expenditures for educational services and arrangements pursuant to this section for educationally deprived children in private schools shall be equal (taking into account the number of children to be served and the special educational needs of such children) to expenditures for children enrolled in the public schools of the local educational agency.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Bypass Provision</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>If a local educational agency is prohibited by law from providing for the participation in special programs for educationally deprived children enrolled in private elementary and secondary schools as required by subsection (a), the Secretary shall waive such requirements, and shall arrange for the provision of <page identifier="/us/stat/95/467">95 STAT. 467</page>services to such children through arrangements which shall be subject to the requirements of subsection (a).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>If the Secretary determines that a local educational agency has substantially failed to provide for the participation on an equitable basis of educationally deprived children enrolled in private elementary and secondary schools as required by subsection (a), he shall arrange for the provision of services to such children through arrangements which shall be subject to the requirements of subsection (a), upon which determination the provisions of subsection (a) shall be waived.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>When the Secretary arranges for services pursuant to this subsection, he shall, after consultation with the appropriate public and private school officials, pay to the provider the cost of such services, including the administrative cost of arranging for such services, from the appropriate allocation or allocations under this chapter.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Pending final resolution of any investigation or complaint that could result in a determination under this subsection, the Secretary may withhold from the allocation of the affected State or local educational agency the amount he estimates would be necessary to pay the cost of such services.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>Any determination by the Secretary under this section shall continue in effect until the Secretary determines that there will no longer be any failure or inability on the part of the local educational agency to meet the requirements of subsection (a).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><subparagraph class="inline"><num value="A">(A) </num><content>The Secretary shall not take any final action under this subsection until the State educational agency and local educational agency affected by such action have had an opportunity, for at least forty-five days after receiving written notice thereof, to submit written objections and to appear before the Secretary or his designee to show cause why such action should not be taken.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>If a State or local educational agency is dissatisfied with the Secretary’s final action after a proceeding under subparagraph (A) of this paragraph, it may within sixty days after notice of such action, file with the United States court of appeals for the circuit in which such State is located a petition for review of that action. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Secretary. The Secretary thereupon shall file in the court the record of the proceedings on which he based his action, as provided in section 2112 of title 28, United States Code.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>The findings of fact by the Secretary, if supported by substantial evidence, shall be conclusive; but the court, for good cause shown, may remand the case to the Secretary to take further evidence, and the Secretary may thereupon make new or modified findings of fact and may modify his previous action, and shall file in the court the record of the further proceedings. Such new or modified findings of fact shall likewise be conclusive if supported by substantial evidence.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>Upon the filing of a petition under subparagraph (B), the court shall have jurisdiction to affirm the action of the Secretary or to set it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Any bypass determination by the Secretary under title I of the Elementary and Secondary Education Act of 1965 prior to the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2701">20 USC 2701</ref>.</p></sidenote>effective date of this chapter shall remain in effect to the extent consistent with the purposes of this chapter.</content> </subsection> </section> <page identifier="/us/stat/95/468">95 STAT. 468</page> <section> <heading class="centered smallCaps">general provisions</heading><num value="558"><inline class="smallCaps">Sec</inline>. 558. </num><subsection class="inline"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3807">20 USC 3807</ref>.</p></sidenote><inline class="smallCaps">Maintenance of Effort</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Except as provided in paragraph (2), a local educational agency may receive funds under this chapter for any fiscal year only if the State educational agency finds that either the combined fiscal effort per student or the aggregate expenditures of that agency and the State with respect to the provision of free public education by that agency for the preceding fiscal year was not less than 90 per centum of such combined fiscal effort or aggregate expenditures for the second preceding fiscal year.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The State educational agency shall reduce the amount of the allocation of funds under this chapter in any fiscal year in the exact proportion to which a local educational agency fails to meet the requirement of paragraph (1) by falling below 90 per centum of both the combined fiscal effort per student and aggregate expenditures (using the measure most favorable to such local agency), and no such lesser amount shall be used for computing the effort required under paragraph (1) for subsequent years.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Waiver of requirements.</p></sidenote> <content class="inline">The State educational agency may waive, for one fiscal year only, the requirements of this subsection if the State educational agency determines that such a waiver would be equitable due to exceptional or uncontrollable circumstances such as a natural disaster or a precipitous and unforeseen decline in the financial resources of the local educational agency.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Federal Funds to Supplement, Not Supplant Regular Nonfederal Funds</inline>.—</heading><content>A local educational agency may use funds received under this chapter only so as to supplement and, to the extent practical, increase the level of funds that would, in the absence of such Federal funds, be made available from non-Federal sources for the education of pupils participating in programs and projects assisted under this chapter, and in no case may such funds be so used as to supplant such funds from such non-Federal sources. In order to demonstrate compliance with this subsection a local education agency shall not be required to provide services under this chapter outside the regular classroom or school program.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Comparability of Services</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>A local educational agency may receive funds under this chapter only if State and local funds will be used in the district of such agency to provide services in project areas which, taken as a whole, are at least comparable to services being provided in areas in such district which are not receiving funds under this chapter. Where all school attendance areas in the district of the agency are designated as project areas, the agency may receive such funds only if State and local funds are used to provide services which, taken as a whole, are substantially comparable in each project area.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>A local educational agency shall be deemed to have met the requirements of paragraph (1) if it has filed with the State educational agency a written assurance that it has established—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>a districtwide salary schedule;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>a policy to ensure equivalence among schools in teachers, administrators, and auxiliary personnel; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>a policy to ensure equivalence among schools in the provision of curriculum materials and instructional supplies.</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">Unpredictable changes in student enrollment or personnel assignments which occur after the beginning of a school year shall not be included as a factor in determining comparability of services.</continuation> </paragraph> </subsection> <page identifier="/us/stat/95/469">95 STAT. 469</page> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Exclusion of Special State and Local Program Funds</inline>.—</heading><content>For the purposes of determining compliance with the requirements of subsections (b) and (c), a local educational agency may exclude State and local funds expended for carrying out special programs to meet the educational needs of educationally deprived children, if such pr are consistent with the purposes of this chapter.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <heading><inline class="smallCaps">Allocation of Funds in Certain States</inline>.—</heading><content>In any State in which a large number of local educational agencies overlap county boundaries, the State educational agency is authorized to make allocations of basic grants and special incentive grants directly to local educational agencies without regard to counties, if such allocations were made during fiscal year 1982, except that (1) precisely the same factors are used to determine the amount of such grants to counties, and (2) a local educational agency dissatisfied with such determination is afforded an opportunity for a hearing on the matter by the State educational agency.</content> </subsection> </section> </chapter> <chapter><num value="2">CHAPTER 2—</num><heading>CONSOLIDATION OF FEDERAL PROGRAMS FOR ELEMENTARY AND SECONDARY EDUCATION</heading> <section> <heading class="centered smallCaps">statement of purpose</heading><num value="561"><inline class="smallCaps">Sec</inline>. 561. </num><subsection class="inline"><num value="a">(a) </num><chapeau>It is the purpose of this chapter to consolidate the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3811">20 USC 3811</ref>.</p></sidenote>program authorizations contained in—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>titles II, III, IV, V, VI, VIII, and IX (except part C) of the Elementary and Secondary Education Act of 1965; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2881/2941/3081/3141/3191/3281/3311/3341">20 USC 2881, 2941, 3081, 3141, 3191, 3281, 3311, 3341</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s1001">21 USC 1001 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1101/1119a">20 USC 1101, 1119a</ref>.</p><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 568.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1862">42 USC 1862</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2601">20 USC 2601 note</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>the Alcohol and Drug Abuse Education Act;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>part A and section 532 of title V of the Higher Education Act of 1965;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>the Follow Through Act (on a phased basis);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>section 3(a)(1) of the National Science Foundation Act of 1950 relating to precollege science teacher training; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>the Career Education Incentive Act;</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">into a single authorization of grants to States for the same purposes set forth in the provisions of law specified in this sentence, but to be used in accordance with the educational needs and priorities of State and local educational agencies as determined by such agencies. It is the further purpose and intent of Congress to financially assist State and local educational agencies to improve elementary and secondary education (including preschool education) for children attending both public and private schools, and to do so in a manner designed to greatly reduce the enormous administrative and paperwork burden imposed on schools at the expense of their ability to educate children.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The basic responsibility for the administration of funds made available under this chapter is in the State educational agencies, but it is the intent of Congress that this responsibility be carried out with a minimum of paperwork and that the responsibility for the design and implementation of programs assisted under the chapter shall be mainly that of local educational agencies, school superintendents and principals, and classroom teachers and supporting personnel, because they have the most direct contact with students and are most directly responsible to parents.</content> </subsection> </section> <section> <heading class="centered smallCaps">authorization of appropriations; duration of assistance</heading><num value="562"><inline class="smallCaps">Sec</inline>. 562. </num><subsection class="inline"><num value="a">(a) </num><content>There are authorized to be appropriated such sums as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3812">20 USC 3812</ref>.</p></sidenote>may be necessary for fiscal year 1982 and each of the five succeeding fiscal years to carry out the provisions of this chapter.</content> </subsection> <page identifier="/us/stat/95/470">95 STAT. 470</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>During the period beginning July 1, 1982, and ending September 30, 1987, the Secretary shall, in accordance with the provisions of this subtitle, make payments to State educational agencies for the purposes of this chapter.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Funds available under previously authorized programs shall be available for the purpose of such payments in accordance with section <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 445.</p></sidenote>514(b)(2) of the Omnibus Education Reconciliation Act of 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">allotments to states</heading><num value="563"><inline class="smallCaps">Sec</inline>. 563. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3813">20 USC 3813</ref>.</p></sidenote> <content class="inline">From the sums appropriated to carry out this chapter in any fiscal year, the Secretary shall reserve not to exceed 1 per centum for payments to Guam, American Samoa, the Virgin Islands, the Trust Territory of the Pacific Islands, and the Northern Mariana Islands, to be allotted in accordance with their respective needs. The Secretary shall reserve an additional amount, not to exceed 6 per centum of the sums appropriated, to carry out the purposes of section 583. From the remainder of such sums the Secretary shall allot to each State an amount which bears the same ratio to the amount of such remainder as the school-age population of the State bears to the school-age population of all States, except that no State shall receive less than an amount equal to 0.5 per centum of such remainder.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>For the purposes of this section:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">“School-age population.”</p></sidenote> <content class="inline">The term “school-age population” means the population aged five through seventeen.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">“States.”</p></sidenote> <content class="inline">The term “States” includes the fifty States, the District of Columbia, and Puerto Rico.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">state applications</heading><num value="564"><inline class="smallCaps">Sec</inline>. 564. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3814">20 USC 3814</ref>.</p></sidenote> <chapeau class="inline">Any State which desires to receive grants under this chapter shall file an application with the Secretary which—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>designates the State educational agency as the State agency responsible for the administration and supervision of programs assisted under this chapter;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>provides for a process of active and continuing consultation with the State educational agency of an advisory committee, appointed by the Governor and determined by the Governor to be broadly representative of the educational interests and the general public in the State, including persons representative of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>public and private elementary and secondary schoolchildren;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>classroom teachers;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>parents of elementary and secondary schoolchildren;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>local boards of education;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>local and regional school administrators (including principals and superintendents);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">(F) </num><content>institutions of higher education; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="G">(G) </num><content>the State legislature;</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">to advise the State educational agency on the allocation among authorized functions of funds (not to exceed 20 per centum of the amount of the State’s allotment) reserved for State use under section 565(a), on the formula for the allocation of funds to local educational agencies, and on the planning, development, support, implementation, and evaluation of State programs assisted under this chapter;</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>sets forth the planned allocation of funds reserved for State <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, pp. 472, 473, 475.</p></sidenote>use under section 565(a) among subchapters A, B, and C of this <page identifier="/us/stat/95/471">95 STAT. 471</page>chapter and among the authorized programs and projects which are to be implemented, and the allocation of such funds required to implement section 586, including administrative costs of carrying out the responsibilities of the State educational agency under this chapter;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>provides for timely public notice and public dissemination of the information provided pursuant to paragraphs (2) and (3);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>beginning with fiscal year 1984, provides for an annual evaluation of the effectiveness of programs assisted under this chapter, which shall include comments of the advisory committee, and shall be made available to the public; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>provides that the State educational agency will keep such <sidenote><p class="indent0 firstIndent0 fontsize8">Recordkeeping.</p></sidenote>records and provide such information to the Secretary as may be required for fiscal audit and program evaluation (consistent with the responsibilities of the Secretary under this chapter); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>contains assurances that there is compliance with the specific requirements of this chapter.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>An application filed by the State under subsection (a) shall be for a period not to exceed fiscal years, and may be amended annually as may be necessary to reflect changes without filing a new application.</content> </subsection> </section> <section> <heading class="centered smallCaps">allocation to local educational agencies</heading><num value="565"><inline class="smallCaps">Sec</inline>. 565. </num><subsection class="inline"><num value="a">(a) </num><chapeau>From the sum made available each year under section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3815">20 USC 3815</ref>.</p></sidenote>563, the State educational agency shall distribute not less than 80 per centum to local educational agencies within such State according to the relative enrollments in public and nonpublic schools within the school districts of such agencies, adjusted, in accordance with criteria approved by the Secretary, to provide higher per pupil allocations to local educational agencies which have the greatest numbers or percentages of children whose education imposes a higher than average cost per child, such as—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>children from low-income families,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>children living in economically depressed urban and rural areas, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>children living in sparsely populated areas.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The Secretary shall approve criteria suggested by the State educational agency for adjusting allocations under subsection (a) if such criteria are reasonably calculated to produce an equitable distribution of funds with reference to the factors set forth in subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>From the funds paid to it pursuant to sections 563 and 564 during each fiscal year; the State educational agency shall distribute to each local educational agency which has submitted an application as required in section 566 the amount of its allocation as determined under subsection (a).</content> </subsection> </section> <section> <heading class="centered smallCaps">local applications</heading><num value="566"><inline class="smallCaps">Sec</inline>. 566. </num><subsection class="inline"><num value="a">(a) </num><chapeau>A local educational agency may receive its allocation of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3816">20 USC 3816</ref>.</p></sidenote>funds under this chapter for any year in which it has on file with the State educational agency an application which—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>sets forth the planned allocation of funds among subchapters A, B, and C of this chapter and for the programs <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, pp. 472, 473, 475.</p></sidenote>authorized by such subchapters which it intends to support, including the allocation of such funds required to implement section 586;</content></paragraph> <page identifier="/us/stat/95/472">95 STAT. 472</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>provides assurances of compliance with provisions of this chapter relating to such programs, including the participation of children enrolled in private, nonprofit schools in accordance with section 586;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Recordkeeping.</p></sidenote> <content class="inline">agrees to keep such records, and provide such information to the State educational agency as reasonably may be required for fiscal audit and program evaluation, consistent with the responsibilities of the State agency under this chapter; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>in the allocation of funds for programs authorized by this chapter, and in the design, planning, and implementation of such programs, provides for systematic consultation with parents of children attending elementary and secondary schools in the area served by the local agency, with teachers and administrative personnel in such schools, and with other groups as may be deemed appropriate by the local educational agency.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>An application filed by a local educational agency under subsection (a) shall be for a period not to exceed three fiscal years, may provide for the allocation of funds among programs and purposes authorized by this chapter for a period of three years, and may be amended annually as may be necessary to reflect changes without filing a new application.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Each local educational agency shall have complete discretion, subject only to the provisions of this chapter, in determining how funds the agency receives under this section shall be divided among the purposes of this chapter in accordance with the application submitted under this section.</content> </subsection> </section> <subchapter><num value="A">Subchapter A—</num><heading>Basic Skills Development</heading> <section> <heading class="centered smallCaps">use of funds</heading><num value="571"><inline class="smallCaps">Sec</inline>. 571. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3821">20 USC 3821</ref>.</p></sidenote> <content class="inline">Funds allocated for use under this subchapter shall be used by State and local educational agencies to develop and implement a comprehensive and coordinated program designed to improve elementary and secondary school instruction in the basic skills of reading, mathematics, and written and oral communication, as formerly authorized by title II of the Elementary and Secondary <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2881">20 USC 2881</ref>.</p></sidenote>Education Act of 1965, relating to basic skills improvement, including the special mathematics program as formerly authorized by section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2912">20 USC 2912</ref>.</p></sidenote>232 of such title.</content> </section> <section> <heading class="centered smallCaps">state leadership and support services</heading><num value="572"><inline class="smallCaps">Sec</inline>. 572. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Grants and contracts.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3822">20 USC 3822</ref>.</p></sidenote> <chapeau class="inline">In order to achieve the purposes of this subchapter, State educational agencies may use funds reserved for State programs to make grants to and enter into contracts with local educational agencies, institutions of higher education, and other public and private agencies, organizations, and institutions—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>to carry out planning, research and development, demonstration projects, training of leadership personnel, short term and regular session teacher training institutes; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>for the development of instructional materials, the dissemination of information, and technical assistance to local educational agencies.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">Each State educational agency may also use such funds for technical assistance and training for State boards of education.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>State educational agencies may support activities designed to enlist the assistance of parents and volunteers working with schools <page identifier="/us/stat/95/473">95 STAT. 473</page>to improve the performance of children in the basic skills. Such activities may include—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the development and dissemination of materials that parents may use in the home to improve their children’s performance in those skills; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>voluntary training activities for parents to encourage and assist them to help their children in developing basic skills;</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">except that such activities conducted in local areas shall be conducted with the approval of and in conjunction with programs of local educational agencies.</continuation> </subsection> </section> <section> <heading class="centered smallCaps">school level programs</heading><num value="573"><inline class="smallCaps">Sec</inline>. 573. </num><subsection class="inline"><num value="a">(a) </num><chapeau>In planning for the utilization of funds it allocates for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3823">20 USC 3823</ref>.</p></sidenote>this chapter (from its allotment under section 565) a local educational agency shall provide for the participation of children enrolled in private elementary and secondary schools (and of teachers in such schools) in accordance with section 586. Such plans shall be developed in conjunction with and involve continuing consultation with teachers and principals in such district. Such planning shall include a systematic strategy for improving basic skills instruction for all children which provides for planning and implementation at the school building level, involving teachers, administrators, and (to the extent practicable) parents, and utilizing all available resources in a comprehensive program. The programs shall include—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>diagnostic assessment to identify the needs of all children in the school;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>the establishment of learning goals and objectives for children and for the school;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>to the extent practicable, pre-service and in-service training and development programs for teachers, administrators, teacher aides and other support personnel, designed to improve instruction in the basic skills;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>activities designed to enlist the support and participation of parents to aid in the instruction of their children; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>procedures for testing students and for evaluation of the effectiveness of programs for maintaining a continuity of effort for individual children.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The programs described in subsection (a) may include such areawide or districtwide activities as learning centers accessible to students and parents, demonstration and training programs for parents, and other activities designed to promote more effective instruction in the basic skills.</content> </subsection> </section> </subchapter> <subchapter><num value="B">Subchapter B—</num><heading>Educational Improvement and Support Services</heading> <section> <heading class="centered smallCaps">statement of purpose</heading><num value="576"><inline class="smallCaps">Sec</inline>. 576. </num><content>It is the purpose of this subchapter to permit State and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3831">20 USC 3831</ref>.</p></sidenote>local educational agencies to use Federal funds (directly, and through grants to or contracts with educational agencies, local educational agencies, institutions of higher education, and other public and private agencies, organizations, and institutions) to carry out selected activities from among the full range of programs and projects formerly authorized under title IV, relating to educational improvement, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3081">20 USC 3081</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3141">20 USC 3141</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3191">20 USC 3191</ref>.</p></sidenote>resources, and support, title V, relating to State leadership, title VI, relating to emergency school aid, of the Elementary and Secondary Education Act of 1965, section 3(a)(1) of the National <page identifier="/us/stat/95/474">95 STAT. 474</page><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1862">42 USC 1862</ref>.</p></sidenote>Science Foundation Act of 1950, relating to precollege science teacher training, and part A and section 532 of title V of the Higher <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1101/1119a">20 USC 1101, 1119a</ref>.</p></sidenote>Education Act of 1965, relating to the Teacher Corps and teacher centers, in accordance with the planned allocation of funds set forth in the applications under sections 564 and 566, in conformity with the other requirements of this chapter.</content> </section> <section> <heading class="centered smallCaps">authorized activities</heading><num value="577"><inline class="smallCaps">Sec</inline>. 577. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3832">20 USC 3832</ref>.</p></sidenote> <chapeau class="inline">Programs and projects authorized under this subchapter include—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>the acquisition and utilization—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>of school library resources, textbooks, and other printed and published instructional materials for the use of children and teachers in public and private elementary and secondary schools which shall be used for instructional purposes only, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>of instructional equipment and materials suitable for use in providing education in academic subjects for use by children and teachers in elementary and secondary schools which shall be used for instructional purposes only,</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">which take into account the needs of children in both public and private schools based upon periodic consultation with teachers, librarians, media specialists, and private school officials;</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>the development of programs designed to improve local educational practices in elementary and secondary schools, and particularly activities designed to address educational problems such as the education of children with special needs (educationally deprived children, gifted and talented children, including children in private schools);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>programs designed to assist local educational agencies, upon their request, to more effectively address educational problems caused by the isolation or concentration of minority group children in certain schools if such assistance is not conditioned upon any requirement that a local educational agency which assigns students to schools on the basis of geographic attendance areas adopt any other method of student assignment, and that such assistance is not made available for the transportation of students or teachers or for the acquisition of equipment for such transportation;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>comprehensive guidance, counseling, and testing programs in elementary and secondary schools and State and local support services necessary for the effective implementation and evaluation of such programs (including those designed to help prepare students for employment);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>programs and projects to improve the planning, management and implementation of educational programs, including fiscal management, by both State and local educational agencies, and the cooperation of such agencies with other public agencies;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>programs and projects to assist in teacher training and in-service staff development, particularly to better prepare both new and in-service personnel to deal with contemporary teaching and learning requirements and to provide assistance in the teaching an learning of educationally deprived students; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>programs and projects to assist local educational agencies to meet the needs of children in schools undergoing desegregation and to assist such agencies to develop and implement plans for desegregation in the schools of such agencies.</content></paragraph> </section> </subchapter> <page identifier="/us/stat/95/475">95 STAT. 475</page> <subchapter><num value="C">Subchapter C—</num><heading>Special Projects</heading> <section> <heading class="centered smallCaps">statement of purpose</heading><num value="581"><inline class="smallCaps">Sec</inline>. 581. </num><content>It is the purpose of this subchapter to permit State and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3841">20 USC 3841</ref>.</p></sidenote>local educational agencies to use Federal funds (directly and through grants to or contracts with educational agencies, local educational agencies, institutions of higher education, and other public and private agencies, organizations, and institutions) to carry out selected activities from among the full range of programs and projects formerly authorized under title III, relating to special projects, title VIII, relating to community schools, and title IX (except part C), relating to gifted and talented children, educational proficiency standards, safe schools program, and ethnic heritage program, of the Elementary and Secondary Education Act of 1965, the Career Education <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2941/3281/3311">20 USC 2941, 3281, 3311</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2601">20 USC 2601 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2929">42 USC 2929</ref>.</p></sidenote>Incentive Act, and part B of title V of the Economic Opportunity Act of 1964, relating to Follow Through programs, in accordance with the planned allocation of funds set forth in the applications under sections 564 and 566, in conformity with the other requirements of this chapter.</content> </section> <section> <heading class="centered smallCaps">authorized activities</heading><num value="582"><inline class="smallCaps">Sec</inline>. 582. </num><chapeau>Programs and projects authorized under this subchapter <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3842">20 USC 3842</ref>.</p></sidenote>include—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>special projects (as may be determined to be desirable by the State or local educational agencies) in such areas as—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>preparation of students to use metric weights and measurements when such use is needed;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>emphasis on the arts as an integral part of the curriculum;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><clause class="inline"><num value="i">(i) </num><content>in-school partnership programs in which the parents of school-age children participate to enhance the education and personal development of the children, previously authorized by part B of the Headstart-Follow Through Act; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2929">42 USC 2929</ref>.</p></sidenote></content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>preschool partnership programs in which the schools work with parents of preschool children in cooperation with programs funded under the Headstart-Follow Through Act; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2921">42 USC 2921</ref>.</p></sidenote></content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>consumer education;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>preparation for employment, the relationship between basic academic skill development and work experience, and coordination with youth employment programs carried out under the Comprehensive Employment and Training Act;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">(F) </num><content>career education previously authorized by the Career Education Incentive Act;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="G">(G) </num><content>environmental education, health education, education about legal institutions and the American system of law and its underlying principles, and studies on population and the effects of population changes;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="H">(H) </num><content>academic and vocational education of juvenile delinquents, youth offenders, and adult criminal offenders; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="I">(I) </num><content>programs to introduce disadvantaged secondary school students to the possibilities of careers in the biomedical and medical sciences, and to encourage, motivate, and assist them in the pursuit of such careers;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>the use of public education facilities as community centers operated by a local education agency in conjunction with other local governmental agencies and community organizations and groups to provide educational, recreational, health care, cul-<page identifier="/us/stat/95/476">95 STAT. 476</page>tural, and other related community and human services for the community served in accordance with the needs, interests, and concerns of the community and the agreement and conditions of the governing board of the local educational agency; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>additional programs, including—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>special programs to identify, encourage, and meet the special educational needs of children who give evidence of high performance capability in areas such as intellectual, creative, artistic, leadership capacity, or specific academic fields, and who require services or activities not ordinarily provided by the school in order to fully develop such capabilities;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>establishment of educational proficiency standards for reading, writing, mathematics, or other subjects, the administration of examinations to measure the proficiency of students, and implementation of programs (coordinated with <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 472.</p></sidenote>those under subchapter A of this chapter) designed to assist students in achieving levels of proficiency compatible with established standards;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>programs designed to promote safety in the schools and to reduce the incidence of crime and vandalism in the school environment;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>planning, developing, and implementing ethnic heritage studies programs to provide all persons with an opportunity to learn about and appreciate the unique contributions to the American national heritage made by the various ethnic groups, and to enable students better to understand their own cultural heritage as well as the cultural heritage of others; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>programs involving training and advisory services <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2000c">42 USC 2000c</ref>.</p></sidenote>under title IV of the Civil Rights Act of 1964.</content></subparagraph> </paragraph> </section> </subchapter> <subchapter><num value="D">Subchapter D—</num><heading>Secretary’s Discretionary Funds</heading> <section> <heading class="centered smallCaps">discretionary program authorized</heading><num value="583"><inline class="smallCaps">Sec</inline>. 583. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3851">20 USC 3851</ref>.</p></sidenote> <chapeau class="inline">From the sums reserved by the Secretary pursuant to the second sentence of section 563(a) the Secretary is authorized to out directly or through grants to or contracts with State and 1 educational agencies, institutions of higher education, and other public and private agencies, organizations, and institutions, programs and projects which—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>provide a national source for gathering and disseminating information on the effectiveness of programs designed to meet the special educational needs of educationally deprived children, and others served by this subtitle, and for assessing the needs of such individuals, including programs and projects formerly authorized by section 376 of the Elementary and Secondary Education <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3041">20 USC 3041</ref>.</p></sidenote>Act of 1965 and programs and projects formerly funded under the “National Diffusion Network” program;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>carry out research and demonstrations related to the purposes of this subtitle;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>are designed to improve the training of teachers and other instructional personnel needed to carry out the purposes of this subtitle; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>are designed to assist State and local educational agencies in the implementation of programs under this subtitle.</content></paragraph> </subsection> <page identifier="/us/stat/95/477">95 STAT. 477</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>From the funds reserved for the purposes of this section, the Secretary shall first fund—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the Inexpensive Book Distribution Program (as carried out through “Reading is Fundamental”) as formerly authorized by part C of title II of the Elementary and Secondary Education Act of 1965, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2911">20 USC 2911</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>the programs of national significance in the “Arts in Education Program as formerly authorized by part C of title III of such Act, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>programs in alcohol and drug abuse education as formerly authorized by the Alcohol and Drug Abuse Education Act, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s1001">21 USC 1001 note</ref>.</p></sidenote>at least in amounts necessary to sustain the activities described in this sentence at the level of operations during fiscal year 1981, and then utilize the remainder of such funds for the other authorized activities described in subsection (a).</content></paragraph> </subsection> </section> </subchapter> <subchapter><num value="E">Subchapter E—</num><heading>General Provisions</heading> <section> <heading class="centered smallCaps">maintenance of effort; federal funds supplementary</heading><num value="585"><inline class="smallCaps">Sec</inline>. 585. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Except as provided in paragraph (2), a State is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3861">20 USC 3861</ref>.</p></sidenote>entitled to receive its full allocation of funds under this chapter for any fiscal year if the Secretary finds that either the combined fiscal effort per student or the aggregate expenditures within the State with respect to the provision of free public education for the preceding fiscal year was not less than 90 per centum of such combined fiscal effort or aggregate expenditures for the second preceding fiscal year.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The Secretary shall reduce the amount of the allocation of funds under this chapter in any fiscal year in the exact proportion to which the State fails to meet the requirements of paragraph (1) by falling below 90 per centum of both the fiscal effort per student and aggregate expenditures (using the measure most favorable to the State), and no such lesser amount shall be used for computing the effort required under paragraph (1) for subsequent years.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The Secretary may waive, for one fiscal year only, the requirements <sidenote><p class="indent0 firstIndent0 fontsize8">Waiver of requirements.</p></sidenote>of this subsection if he determines that such a waiver would be equitable due to exceptional or uncontrollable circumstances such as a natural disaster or a precipitous and unforeseen decline in the financial resources of the State.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>A State or local educational agency may use and allocate funds received under this chapter only so as to supplement and, to the extent practical, increase the level of funds that would, in the absence of Federal funds made available under this chapter, be made available from non-Federal sources, and in no case may such funds be used so as to supplant funds from non-Federal sources.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The Secretary is specifically authorized to issue regulations to <sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote>enforce the provisions of this section.</content> </subsection> </section> <section> <heading class="centered smallCaps">participation of children enrolled in private schools</heading><num value="586"><inline class="smallCaps">Sec</inline>. 586. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>To the extent consistent with the number of children <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3862">20 USC 3862</ref>.</p></sidenote>in the school district of a local educational agency which is eligible to receive funds under this chapter or which serves the area in which a program or project assisted under this chapter is located who are enrolled in private nonprofit elementary and secondary schools, or with respect to instructional or personnel training programs funded by the State educational agency from funds reserved for State use <page identifier="/us/stat/95/478">95 STAT. 478</page>under section 565, such agency after consultation with appropriate private school officials, shall provide for the benefit of such children in such schools secular, neutral, and nonideological services, materials, and equipment including the participation of the teachers of such children (and other educational personnel serving such children) in training programs, and the repair, minor remodeling, or construction of public facilities as may be necessary for their provision (consistent with subsection (c) of this section), or, if such service, materials, and equipment are not feasible or necessary in one or more such private schools as determined by the local educational agency after consultation with the appropriate private school officials, shall provide such other arrangements as will assure equitable participation of such children in the purposes and benefits of this chapter.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Contract authority.</p></sidenote> <content class="inline">If no program or project is carried out under subsection (a)(1) of this section in the school district of a local educational agency, the State educational agency shall make arrangements, such as through contracts with nonprofit agencies or organizations, under which children in private schools in that district are provided with services and materials to the extent that would have occurred if the local educational agency had received funds under this chapter.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The requirements of this section relating to the participation of children, teachers, and other personnel serving such children shall apply to programs and projects carried out under this chapter by a State or local educational agency, whether directly or through grants to or contracts with other public or private agencies, institutions, or organizations.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Expenditures for programs pursuant to subsection (a) shall be equal (consistent with the number of children to be served) to expenditures for programs under this chapter for children enrolled in the public schools of the local educational agency, taking into account the needs of the individual children and other factors which relate to such expenditures, and when funds available to a local educational agency under this chapter are used to concentrate programs or projects on a particular group, attendance area, or grade or age level, children enrolled in private schools who are included within the group, attendance area, or grade or age level selected for such concentration shall, after consultation with the appropriate private school officials, be assured equitable participation in the purposes and benefits of such programs or projects.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><content>The control of funds provided under this chapter and title to materials, equipment, and property repaired, remodeled, or constructed therewith shall be in a public agency for the uses and purposes provided in this chapter, and a public agency shall administer such funds and property.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The provision of services pursuant to this section shall be provided by employees of a public agency or through contract by such public agency with a person, an association, agency, or corporation who or which, in the provision of such services, is independent of such private school and of any religious organizations, and such employment or contract shall be under the control and supervision of such public agency, and the funds provided under this chapter shall not be commingled with State or local funds.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Waiver of requirements.</p></sidenote> <content class="inline">If by reason of any provision of law a State or local educational agency is prohibited from providing for the participation in programs of children enrolled in private elementary and secondary schools, as required by this section, the Secretary shall waive such requirements and shall arrange for the provision of services to such children <page identifier="/us/stat/95/479">95 STAT. 479</page>through arrangements which shall be subject to the requirements of this section.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><paragraph class="inline"><num value="1">(1) </num><content>If the Secretary determines that a State or a local educational <sidenote><p class="indent0 firstIndent0 fontsize8">Waiver of requirements.</p></sidenote>agency has substantially failed or is unwilling to provide for the participation on an equitable basis of children enrolled in private elementary and secondary schools as required by this section, he may waive such requirements and shall arrange for the provision of services to such children through arrangements which shall be subject to the requirements of this section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Pending final resolution of any investigation or complaint that could result in a determination under this subsection or subsection (d), the Secretary may withhold from the allocation of the affected State or local educational agency the amount he estimated would be necessary to pay the cost of those services.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>Any determination by the Secretary under this section shall continue in effect until the Secretary determines that there will no longer be any failure or inability on the part of the State or local educational agency to meet the requirements of subsections (a) and (b).</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>When the Secretary arranges for services pursuant to this section, he shall, after consultation with the appropriate public and private school officials, pay the cost of such services, including the administrative costs of arranging for those services, from the appropriate allotment of the State under this chapter.</content> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall not take any final action under this section until the State educational agency and the local educational agency affected by such action have had an opportunity, for at least forty-five days after receiving written notice thereof, to submit written objections and to appear before the Secretary or his designee to show cause why that action should not be taken.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>If a State or local educational agency is dissatisfied with the Secretary’s final action after a proceeding under paragraph (1) of this subsection, it may within sixty days after notice of such action, file with the United States court of appeals for the circuit in which such State is located a petition for review of that action. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Secretary. The Secretary thereupon shall file in the court the record of the proceedings on which he based this action, as provided in section 2112 of title 28, United States Code.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The findings of fact by the Secretary, if supported by substantial evidence, shall be conclusive; but the court, for good cause shown, may remand the case to the Secretary to take further evidence and the Secretary may thereupon make new or modified findings of fact and may modify his previous action, and shall file in the court the record of the further proceedings. Such new or modified findings of fact shall likewise be conclusive if supported by substantial evidence.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Upon the filing of such petition, the court shall have jurisdiction to affirm the action of the Secretary or to set it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num><content>Any bypass determination by the Secretary under titles II through VI and VIII and IX of the Elementary and Secondary Education Act of 1965 prior to the effective date of this chapter shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2881/3191/3281/3311">20 USC 2881, 3191, 3281, 3311</ref>.</p></sidenote>remain in effect to the extent consistent with the purposes of this chapter.</content> </subsection> </section> <page identifier="/us/stat/95/480">95 STAT. 480</page> <section> <heading class="centered smallCaps">repeals</heading><num value="587"><inline class="smallCaps">Sec</inline>. 587. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3863">20 USC 3863</ref>.</p></sidenote> <chapeau class="inline">Effective October 1, 1982, the provisions of—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>titles II, III, IV, V, VI, VIII, and IX (except part C) of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2881/2941/3081/3141/3191/3281/3311/3341">20 USC 2881, 2941, 3081, 3141, 3191, 3281, 3311, 3341</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1101/1119a">20 USC 1101, 1119a</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s1001">21 USC 1001 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2601">20 USC 2601 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 508.</p></sidenote>Elementary and Secondary Education Act of 1965;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>part A and section 532 of title V of the Higher Education Act of 1965;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>the Alcohol and Drug Abuse Education Act; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>the Career Education Incentive Act; are repealed.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Effective October 1, 1984, subchapter C of chapter 8 of subtitle A of title VI of this Act, relating to Follow-Through programs is repealed.</content> </subsection> </section> </subchapter> </chapter> <chapter><num value="3">CHAPTER 3—</num><heading>GENERAL PROVISIONS</heading> <section> <heading class="centered smallCaps">federal regulations</heading><num value="591"><inline class="smallCaps">Sec</inline>. 591. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3871">20 USC 3871</ref>.</p></sidenote> <chapeau class="inline">The Secretary is authorized to issue regulations—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>relating to the discharge of duties specifically assigned to the Secretary under this subtitle;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>relating to proper fiscal accounting for funds appropriated under this subtitle and the method of making payments authorized under this subtitle; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>which are deemed necessary to reasonably insure that there is compliance with the specific requirements and assurances required by this subtitle.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>In all other matters relating to the details of planning, developing, implementing, and evaluating programs and projects by State and local educational agencies the Secretary shall not issue regulations, but may consult with appropriate State, local, and private educational agencies and, upon request, provide technical assistance, information, and suggested guidelines designed to promote the development and implementation of effective instructional programs and to otherwise assist in carrying out the purposes of this subtitle.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Regulations issued pursuant to this subtitle shall not have the standing of a Federal statute for the purposes of judicial review.</content> </subsection> </section> <section> <heading class="centered smallCaps">withholding of payments</heading><num value="592"><inline class="smallCaps">Sec</inline>. 592. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3872">20 USC 3872</ref>.</p></sidenote> <content class="inline">Whenever the Secretary after reasonable notice to any State educational agency and an opportunity for a hearing on the record, finds that there has been a failure to comply substantially with any assurances required to be given or conditions required to be met under this subtitle the Secretary shall notify such agency of these findings and that beginning sixty days after the date of such notification, further payments will not be made to the State under this subtitle, or affected chapter thereof (or, in his discretion, that the State educational agency shall reduce or terminate further payments under the subtitle or affected chapter thereof, to specified local educational agencies or State agencies affected by the failure) until he is satisfied that there is no longer any such failure to comply. Until he is so satisfied, (1) no further payments shall be made to the State under the subtitle or affected chapter thereof, or (2) payments by the State educational agency under the subtitle or affected chapter thereof shall be limited to local educational agencies and State agencies not affected by the failure, or (3) payments to particular local educational agencies shall be reduced, as the case may be.</content> </subsection> <page identifier="/us/stat/95/481">95 STAT. 481</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Upon submission to a State of a notice under subsection (a) that the Secretary is withholding payments, the Secretary shall take such action as may be necessary to bring his action to the attention of the public within the State.</content> </subsection> </section> <section> <heading class="centered smallCaps">judicial review</heading><num value="593"><inline class="smallCaps">Sec</inline>. 593. </num><subsection class="inline"><num value="a">(a) </num><content>If any State is dissatisfied with the Secretary’s action <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3873">20 USC 3873</ref>.</p></sidenote>under section 592(a), such State may, within sixty days after notice of such action, file with the United States court of appeals for the circuit in which such State is located a petition for review of that action. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Secretary. The filing of such petition shall act to suspend any withholding of funds by the Secretary pending the judgment of the court and prior to a final action on any review of such judgment. The Secretary thereupon shall file in the court the record of the proceedings on which he based his action, as provided in section 2112 of title 28, United States Code.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>A State educational agency shall be presumed to have complied with this subtitle, but the findings of fact by the Secretary, if supported by the weight of evidence, may overcome such presumption. The court may remand the case to the Secretary to take further evidence, and the Secretary may thereupon make new or modified findings of fact and may modify his previous action, and shall file in the court the record of the further proceedings.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Upon the filing of such petition, the court shall have jurisdiction to affirm the action of the Secretary or to set it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code.</content> </subsection> </section> <section> <heading class="centered smallCaps">availability of appropriations</heading><num value="594"><inline class="smallCaps">Sec</inline>. 594. </num><content>Notwithstanding any other provision of law, unless <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3874">20 USC 3874</ref>.</p></sidenote>expressly in limitation of this section, funds appropriated in any fiscal year to carry out activities under this subtitle shall become available for obligation on July 1 of such fiscal year and shall remain available for obligation until the end of the succeeding fiscal year.</content> </section> <section> <heading class="centered smallCaps">definitions</heading><num value="595"><inline class="smallCaps">Sec</inline>. 595. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Except as otherwise provided herein as used in this <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3875">20 USC 3875</ref>.</p></sidenote>subtitle—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the term “State” means a State, Puerto Rico, Guam, the District of Columbia, American Samoa, the Virgin Islands, the Northern Mariana Islands, or the Trust Territory of the Pacific Islands;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>the term “Secretary” means the Secretary of Education;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>the term “State educational agency” means the officer or agency primarily responsible for the State supervision of public elementary and secondary schools;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>the term “local educational agency” means a public board of education or other public authority legally constituted within a State for either administrative control or direction of, or to perform a service function for, public elementary or secondary schools in a city, county, township, school district, or other political subdivision of a State, or such combination of school districts or counties as are recognized in a State as an administrative agency for its public elementary or secondary schools. Such term includes any other public institution or agency having <page identifier="/us/stat/95/482">95 STAT. 482</page>administrative control and direction of a public elementary or secondary school;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>the term “parent” includes a legal guardian or other person standing in loco parentis;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>the term “free public education” means education which is provided at public expense, under public supervision and direction, and without tuition charge, and which is provided as elementary or secondary school education in the applicable State, except that such term does not include any education provided beyond grade twelve;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>the term “elementary school” means a day or residential school which provides elementary education, as determined under State law, and the term “secondary school” means a day or residential school which provides secondary education, as determined under State law, except that it does not include any education provided beyond grade twelve;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>the term “construction” includes the preparation of drawings and specifications for school facilities; erecting, building, acquiring, altering, remodeling, improving, or extending school facilities; and the inspection and supervision of the construction of school facilities;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">(9) </num><content>the term “equipment” includes machinery, utilities, and building equipment and any necessary enclosure or structures to house them, and includes all other items necessary for the functioning of a particular facility as a facility for the provision of educational services, including items such as instructional equipment and necessary furniture, printed, published, and audio-visual instructional materials, and books, periodicals, documents, and other related materials; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">(10) </num><content>the term “school facilities” means classrooms and related facilities (including initial equipment) for free public education and interests in land (including site, grading, and improvements) on which such facilities are constructed, except that such term does not include those gymnasiums and similar facilities intended primarily for exhibitions for which admission is to be charged to the general public.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Any term used in provisions referenced by section 554 and not defined in this section shall have the same meaning as that term was given in title I of the Elementary and Secondary Education Act of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2701">20 USC 2701</ref>.</p></sidenote>1965 in effect prior to October 1, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">application of other laws</heading><num value="596"><inline class="smallCaps">Sec</inline>. 596. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3876">20 USC 3876</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1232c/1232d/1232e">20 USC 1232c, 1232d, 1232e</ref>.</p></sidenote> <content class="inline">Sections 434, 435, and 436 of the General Education Provisions Act (relating to “State Educational Agency Monitoring and Agency Application”) shall not apply to programs authorized under this subtitle except to the extent that they relate to fiscal control and fund accounting procedures (including the title to property acquired with Federal funds), and shall not be construed to authorize the Secretary to require any reports or take any actions not specifically authorized by this subtitle.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1225">20 USC 1225</ref>.</p></sidenote> <content class="inline">Section 412 of the General Education Provisions Act shall apply to any funds appropriated for any fiscal year pursuant to this subtitle.</content> </subsection> </section> </chapter> </subtitle> 95 STAT. 483 <num value="VI">TITLE VI—</num><heading>HUMAN SERVICES PROGRAMS</heading> <subtitle><num value="A">Subtitle A—</num><heading>Authorizations Savings for Fiscal Years 1982, 1983, and 1984</heading> <chapter><num value="1">CHAPTER 1—</num><heading>GENERAL PROVISIONS</heading> <section> <heading class="centered smallCaps">effect on other laws</heading><num value="601"><inline class="smallCaps">Sec</inline>. 601. </num><subsection class="inline"><num value="a">(a) </num><content>Any provision of law which is not consistent with the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9801">42 USC 9801 note</ref>.</p></sidenote>provisions of this subtitle hereby is superseded and shall have only such force and effect during each of the fiscal years 1982, 1983, and 1984 which is consistent with this subtitle.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Notwithstanding any authorization of appropriations for fiscal year 1982, 1983, or 1984 contained in any provision of law which is specified in this subtitle, no funds are authorized to be appropriated in excess of the limitations imposed upon appropriations by the provisions of this subtitle.</content> </subsection> </section> </chapter> <chapter><num value="2">CHAPTER 2—</num><heading>EDUCATION OF THE HANDICAPPED PROGRAMS</heading> <section> <heading class="centered smallCaps">education of the handicapped act</heading><num value="602"><inline class="smallCaps">Sec</inline>. 602. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>There is authorized to be appropriated to carry out part B of the Education of the Handicapped Act, other than sections <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1411">20 USC 1411 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1418/1419">20 USC 1418, 1419</ref>.</p></sidenote>618 and 619, $969,850,000 for fiscal year 1982, and $1,017,900,000 for each of the fiscal years 1983 and 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>There is authorized to be appropriated to carry out section 618 of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1418">20 USC 1418 note</ref>.</p></sidenote>such Act $2,300,000 for each of the fiscal years 1982 and 1983.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>There is authorized to be appropriated to carry out section 619 of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1419">20 USC 1419 note</ref>.</p></sidenote>such Act $25,000,000 for each of the fiscal years 1982 and 1983.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>There is authorized to be appropriated to carry out section 621 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1421">20 USC 1421 note</ref>.</p></sidenote>of the Education of the Handicapped Act (relating to regional resource centers) $9,800,000 for each of the fiscal years 1982 and 1983.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>There is authorized to be appropriated to carry out section 622 of such Act $16,000,000 for each of the fiscal years 1982 and 1983. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1422">20 USC 1422 note</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>There is authorized to be appropriated to carry out section 623 of such Act $20,000,000 for each of the fiscal years 1982 and 1983. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1423">20 USC 1423 note</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>There is authorized to be appropriated to carry out sections 621 and 624 of such Act (relating to projects for severely handicapped <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1421">20 USC 1421 note</ref>.</p></sidenote>children) $5,000,000 for each of the fiscal years 1982 and 1983.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>There is authorized to be appropriated to carry out section 625 of such Act $4,000,000 for each of the fiscal years 1982 and 1983. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1424a">20 USC 1424a note</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>There is authorized to be appropriated to carry out sections 631, 632, and 634 of such Act $58,000,000 for each of the fiscal years 1982 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1431">20 USC 1431 note</ref>.</p></sidenote>and 1983.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>There is authorized to be appropriated to carry out section 633 of such Act $1,000,000 for each of the fiscal years 1982 and 1983. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1433">20 USC 1433 note</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>There is authorized to be appropriated to carry out part E of such Act $20,000,000 for each of the fiscal years 1982 and 1983. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1444">20 USC 1444 note</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">(9) </num><content>There is authorized to be appropriated to carry out part F of such Act $19,000,000 for each of the fiscal years 1982 and 1983. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1454">20 USC 1454 note</ref>.</p></sidenote></content></paragraph> </subsection> </section> </chapter> <page identifier="/us/stat/95/484">95 STAT. 484</page> <chapter><num value="3">CHAPTER 3—</num><heading>VOCATIONAL REHABILITATION PROGRAMS</heading> <section> <heading class="centered smallCaps">general authorization under rehabilitation act of 1973</heading><num value="603"><inline class="smallCaps">Sec</inline>. 603. </num><content>There is authorized to be appropriated to carry out the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s701">29 USC 701 note</ref>.</p></sidenote>Rehabilitation Act of 1973 $1,009,260,000 for fiscal year 1982, and $1,054,160,000 for fiscal year 1983.</content> </section> <section> <heading class="centered smallCaps">specific spending limits under rehabilitation act of 1973</heading><num value="604"><inline class="smallCaps">Sec</inline>. 604. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s701">29 USC 701 note</ref>.</p></sidenote> <content class="inline">Of the amounts authorized to be appropriated in section 603, not to exceed $250,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out section 12 of the Rehabilitation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s711">29 USC 711</ref>.</p></sidenote>Act of 1973.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s713">29 USC 713</ref>.</p></sidenote>section 14 of the Rehabilitation Act of 1973 for fiscal year 1982 or 1983.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Of the amounts authorized to be appropriated in section 603, such sums as may be necessary shall be available, for each of the fiscal years 1982 and 1983, to carry out section 15 of the Rehabilitation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s714">29 USC 714</ref>.</p></sidenote>Act of 1973.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Of the amounts authorized to be appropriated in section 603, not to exceed $899,000,000 for fiscal year 1982, and not to exceed $943,900,000 for fiscal year 1983, shall be available for the purpose of making grants to States pursuant to State entitlements under part B <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s730">29 USC 730</ref>.</p></sidenote>of title I of the Rehabilitation Act of 1973.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s740">29 USC 740</ref>.</p></sidenote>section 120(a) of the Rehabilitation Act of 1973 for fiscal year 1982 or 1983.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>Of the amounts authorized to be appropriated in section 603, not to exceed $650,000 shall be available, for each of the fiscal years 1982 and 1983, for the purpose of making grants to Indian tribes under <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s750">29 USC 750</ref>.</p></sidenote>part D of title I of the Rehabilitation Act of 1973.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><paragraph class="inline"><num value="1">(1) </num><content>Of the amounts authorized to be appropriated in section 603, not to exceed $3,500,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out section 112 of the Rehabilitation Act of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s732">29 USC 732</ref>.</p></sidenote>1973.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The requirement for the setting aside of funds established in the first sentence of section 112(a) of such Act shall not have any force or effect for each of the fiscal years 1982 and 1983.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><content>Of the amounts authorized to be appropriated in section 603, not to exceed $35,000,000 shall be available, for each of the fiscal years <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s760">29 USC 760</ref>.</p></sidenote>1982 and 1983, to carry out title II of the Rehabilitation Act of 1973.</content> </subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num><content>Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s771">29 USC 771</ref>.</p></sidenote>section 301 of the Rehabilitation Act of 1973 for fiscal year 1982 or 1983.</content> </subsection> <subsection class="indent0 fontsize10"><num value="j">(j) </num><content>Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s772">29 USC 772</ref>.</p></sidenote>section 302 of the Rehabilitation Act of 1973 for fiscal year 1982 or 1983.</content> </subsection> <subsection class="indent0 fontsize10"><num value="k">(k) </num><content>Of the amounts authorized to be appropriated in section 603, not to exceed $25,500,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out section 304 of the Rehabilitation Act of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s774">29 USC 774</ref>.</p></sidenote>1973.</content> </subsection> <page identifier="/us/stat/95/485">95 STAT. 485</page> <subsection class="indent0 fontsize10"><num value="l">(l) </num><content>Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out section 305 of the Rehabilitation Act of 1978 for fiscal year 1982 or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s775">29 USC 775</ref>.</p></sidenote>1983.</content> </subsection> <subsection class="indent0 fontsize10"><num value="m">(m) </num><paragraph class="inline"><num value="1">(1) </num><content>Of the amounts authorized to be appropriated in section 603, not to exceed $12,210,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out sections 310, 311, 312, 314, and 315 of the Rehabilitation Act of 1973. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s777/777a/777b/777d/777e">29 USC 777, 777a, 777b, 777d, 777e</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The requirement for the setting aside of funds established in the first sentence of section 310(b) of such Act shall not have any force or effect for each of the fiscal years 1982 and 1983.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="n">(n) </num><content>Of the amounts authorized to be appropriated in section 603, not to exceed $2,000,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out section 316 of the Rehabilitation Act of 1973. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s777f">29 USC 777f</ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="o">(o) </num><content>Of the amounts authorized to be appropriated in section 603, not to exceed $3,500,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out section 313 of the Rehabilitation Act of 1973. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s777c">29 USC 777c</ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="p">(p) </num><content>Of the amounts authorized to be appropriated in section 603, not to exceed $256,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out title IV of the Rehabilitation Act of 1973. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s780">29 USC 780</ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="q">(q) </num><content>Of the amounts authorized to be appropriated in section 603, such sums as may be necessary shall be available, for each of the fiscal years 1982 and 1983, to carry out section 502 of the Rehabilitation Act of 1973. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s792">29 USC 792</ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="r">(r) </num><content>Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out section 506 of the Rehabilitation Act of 1973 for fiscal year 1982 or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s794b">29 USC 794b</ref>.</p></sidenote>1983.</content> </subsection> <subsection class="indent0 fontsize10"><num value="s">(s) </num><content>Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out part A of title VI of the Rehabilitation Act of 1973 for fiscal year 1982 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s795">29 USC 795</ref>.</p></sidenote>or 1983.</content> </subsection> <subsection class="indent0 fontsize10"><num value="t">(t) </num><content>Of the amounts authorized to be appropriated in section 603, not to exceed $8,000,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out part B of title VI of the Rehabilitation Act of 1973. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s795g">29 USC 795g</ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="u">(u) </num><content>Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out part A, C, or D of title VII of the Rehabilitation Act of 1973 for fiscal <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s796/796f/796g">29 USC 796, 796f, 796g</ref>.</p></sidenote>year 1982 or 1983.</content> </subsection> <subsection class="indent0 fontsize10"><num value="v">(v) </num><content>Of the amounts authorized to be appropriated in section 603, not to exceed $19,400,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out part B of title VII of the Rehabilitation Act of 1973. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s796e">29 USC 796e</ref>.</p></sidenote></content> </subsection> </section> </chapter> <chapter><num value="4">CHAPTER 4—</num><heading>OTHER HANDICAPPED PROGRAMS AND SERVICES</heading> <section> <heading class="centered smallCaps">american printing house for the blind; gallaudet college; kendall school; model secondary school for the deaf; national technical institute for the deaf act</heading><num value="605"><inline class="smallCaps">Sec</inline>. 605. </num><subsection class="inline"><num value="a">(a) </num><content>The total amount of appropriations to carry out the Act of March 3, 1979 (20 Stat. 468), relating to the American Printing <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s101">20 USC 101 note</ref>.</p></sidenote>House for the Blind, shall not exceed $5,000,000 for each of the fiscal years 1982, 1983, and 1984.</content> </subsection> <page identifier="/us/stat/95/486">95 STAT. 486</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The total amount of appropriations to carry out the Act of June 18, 1954 (68 Stat. 265), relating to Gallaudet College, shall not exceed $52,000,000 for each of the fiscal years 1982, 1983, and 1984. Amounts appropriated pursuant to this subsection also shall be available for the administration of the Kendall Demonstration Elementary School and the Model Secondary School for the Deaf.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The total amount of appropriations to carry out the National <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s681">20 USC 681 note</ref>.</p></sidenote>Technical Institute for the Deaf Act shall not exceed $26,300,000 for each of the fiscal years 1982, 1983, and 1984.</content> </subsection> </section> </chapter> <chapter><num value="5">CHAPTER 5—</num><heading>OLDER AMERICAN PROGRAMS</heading> <section> <heading class="centered smallCaps">older americans act of 1965</heading><num value="606"><inline class="smallCaps">Sec</inline>. 606. </num><subsection class="inline"><num value="a">(a) </num><content>There is authorized to be appropriated to carry out the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3001">42 USC 3001 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3056">42 USC 3056</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3056f">42 USC 3056f note</ref>.</p></sidenote>Older Americans Act of 1965 (other than title V of such Act) $715,000,000 for fiscal year 1982 and $793,312,000 for fiscal year 1983.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>There is authorized to be appropriated to carry out title V of the Older Americans Act of 1965—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>$277,100,000 for fiscal year 1982 and $293,726,000 for fiscal year 1983; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>such additional sums as may be necessary for each such fiscal year to enable the Secretary of Labor, through the operation of older American community service employment programs under such title, to provide for at least 54,200 part-time employment positions for eligible individuals.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>For purposes of this subsection:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">“Eligible individual.”</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3056e">42 USC 3056e</ref>.</p><p class="indent0 firstIndent0 fontsize8">“Part-time employment position.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3020c">42 USC 3020c</ref>.</p></sidenote> <content class="inline">The term “eligible individual” has the meaning given it in section 507(2) of the Older Americans Act of 1965.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>The term “part-time employment position” means an employment position with a workweek of at least 20 hours.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 213 of the Older Americans Act of 1965 is amended by striking out “<quotedText>, where such organization demonstrates clear superiority with respect to the quality of services covered by such contract</quotedText>”.</content> </subsection> </section> </chapter> <chapter><num value="6">CHAPTER 6—</num><heading>DOMESTIC VOLUNTEER SERVICE PROGRAMS</heading> <section> <heading class="centered smallCaps">authorizations under domestic volunteer service act of 1973</heading><num value="607"><inline class="smallCaps">Sec</inline>. 607. </num><subsection class="inline"><num value="a">(a) </num><content>Section 501 of the Domestic Volunteer Service Act of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5081">42 USC 5081</ref>.</p></sidenote>1973 is amended to read as follows: <quotedContent> <section> <heading class="centered smallCaps">“national volunteer antipoverty programs</heading><num value="501">“<inline class="smallCaps">Sec</inline>. 501. </num><content>There is authorized to be appropriated to carry out title I <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s4951">42 USC 4951</ref>.</p></sidenote>of this Act $25,763,000 for fiscal year 1982 and $15,391,000 for fiscal year 1983. Of the amounts appropriated under this section, not less than $16,000,000 shall first be available for carrying out part A of title I for fiscal year 1982, and not less than $8,000,000 shall first be available for carrying out part A of title I for fiscal year 1983.”.</content> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5082">42 USC 5082</ref>.</p></sidenote> <content class="inline">Section 502(a) of the Domestic Volunteer Service Act of 1973 is amended to read as follows: <quotedContent> <section class="firstIndent1 fontsize10"><num value="502">“<inline class="smallCaps">Sec</inline>. 502. </num><subsection class="inline"><num value="a">(a) </num><content>There is authorized to be appropriated $28,691,000 for fiscal year 1982 and $30,412,000 for fiscal year 1983, for the purpose of carrying out programs under part A of title II of this Act.”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 502(b) of such Act is amended to read as follows: <page identifier="/us/stat/95/487">95 STAT. 487</page> <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>There is authorized to be appropriated $49,670,000 for fiscal year 1982 and $52,650,000 for fiscal year 1983, for the purpose of carrying out programs under part B of title II of this Act.”. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5011">42 USC 5011</ref>.</p></sidenote></content> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Section 502 of such Act is amended by adding at the end thereof <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5082">42 USC 5082</ref>.</p></sidenote>the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>There is authorized to be appropriated $16,610,000 for fiscal year 1982 and $17,607,000 for fiscal year 1983, for the purpose of carrying out part C of title II of this Act.”. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5021">42 USC 5021</ref>.</p></sidenote></content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 504 of the Domestic Volunteer Service Act of 1973 is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5084">42 USC 5084</ref>.</p></sidenote>amended to read as follows: <quotedContent> <section> <heading class="centered smallCaps">“administration and coordination</heading><num value="504">“<inline class="smallCaps">Sec</inline>. 504. </num><content>There is authorized to be appropriated for the administration of this Act, as authorized in title W of this Act, $30,091,000 for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5041">42 USC 5041</ref>.</p></sidenote>fiscal year 1982 and $29,348,000 for fiscal year 1983.”.</content> </section> </quotedContent> </content> </subsection> </section> <section> <heading class="centered smallCaps">amendments to domestic volunteer service act of 1973</heading><num value="608"><inline class="smallCaps">Sec</inline>. 608. </num><subsection class="inline"><num value="a">(a) </num><content>Section 114(a) of the Domestic Volunteer Service Act of <sidenote><p class="indent0 firstIndent0 fontsize8">Grants and contracts.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s4974">42 USC 4974</ref>.</p></sidenote>1973 is amended to read as follows: <quotedContent> <section class="firstIndent1 fontsize10"><num value="114">“<inline class="smallCaps">Sec</inline>. 114. </num><subsection class="inline"><num value="a">(a) </num><content>The Director is authorized to make grants and contracts for projects and programs which encourage and enable students in secondary, secondary vocational, and post-secondary schools to participate in service-learning programs on an in-school or out-of-school basis in assignments of a character and on such terms and conditions as are described in subsections (a) and (c) of section 103.”.</content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 211 of the Domestic Volunteer Service Act of 1973 is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5011">42 USC 5011</ref>.</p></sidenote>amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out subsection (b); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by redesignating subsections (c), (d), (e), and (f) as subsections (b), (c), (d), and (e), respectively.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>Title II of the Domestic Volunteer Service Act of 1973 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by redesignating part C as part D; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting after section 212 the following new part: <quotedContent> <part><num value="C">“<inline class="smallCaps">Part C</inline>—</num><heading><inline class="smallCaps">Senior Companions Program</inline></heading> <section> <heading class="centered smallCaps">“grants and contracts for the program</heading><num value="213">“<inline class="smallCaps">Sec</inline>. 213. </num><subsection class="inline"><num value="a">(a) </num><content>The Director is authorized to make grants to or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5013">42 USC 5013</ref>.</p></sidenote>contracts with public and nonprofit private agencies and organizations to pay part or all of the cost of development and operation of projects (including direct payments to individuals serving under this part in the same manner as provided in section 211(a)) designed for the purpose of providing opportunities for low-income persons aged 60 or over to serve as ‘senior companions’ to persons with exceptional needs. Senior companions may provide services designed to help older persons requiring long-term care, including services to persons receiving home health care, nursing care, home-delivered meals or other nutrition services; services designed to help persons deinstitutionalized from mental hospitals, nursing homes, and other institutions; and services designed to assist persons having developmental disabilities and other special needs for companionship.</content> </subsection> <page identifier="/us/stat/95/488">95 STAT. 488</page> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5011">42 USC 5011</ref>.</p></sidenote> <content class="inline">The provisions of section 211(d) and section 211(e) and such other provisions of part B as the Director determines to be necessary shall apply to the provisions of this part.”.</content> </subsection> </section> </part> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>The heading of part B of the Domestic Volunteer Service Act of 1973 is amended to read as follows: <quotedContent> <part><num value="B">“<inline class="smallCaps">Part B</inline>—</num><heading><inline class="smallCaps">Foster Grandparent Program</inline>”.</heading> </part> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><paragraph class="inline"><num value="1">(1) </num><content>The item relating to part B of title II in the table of contents of the Domestic Volunteer Service Act of 1973 is amended to read as follows: <quotedContent> <toc> <referenceItem role="part"><designator class="centered">“<inline class="smallCaps">Part B</inline>—</designator><label class="centered"><inline class="smallCaps">Foster Grandparent Program</inline>”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The table of contents of such Act is amended by inserting after the item relating to part B the following new items: <quotedContent> <toc> <referenceItem role="part"><designator class="centered">“<inline class="smallCaps">Part C</inline>—</designator><label class="centered"><inline class="smallCaps">Senior Companions Program</inline></label></referenceItem> <referenceItem role="section"><designator>“Sec. 213.</designator> <label>Grants and contracts for the program.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The item relating to part C of title II in the table of contents of such Act is amended by striking out “<quotedText><inline class="smallCaps">Part C</inline></quotedText>” and inserting in lieu thereof “<quotedText><inline class="smallCaps">Part D</inline></quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s4973">42 USC 4973</ref>.</p></sidenote> <content class="inline">Section 113(c)(2) of the Domestic Volunteer Service Act of 1973 is amended by striking out “<inline class="smallCaps">Secretary Of Health, Education, And Welfare</inline>” and inserting in lieu thereof “<inline class="smallCaps">Secretary Of Health And Human Services</inline>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5021">42 USC 5021</ref>.</p></sidenote> <chapeau class="inline">Section 221 of such Act is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<inline class="smallCaps">The Community Services Administration,</inline>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<inline class="smallCaps">Health, Education, And Welfare</inline>” and inserting in lieu thereof “<inline class="smallCaps">Health And Human Services</inline>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5057">42 USC 5057</ref>.</p></sidenote> <content class="inline">Section 417(c)(2) of such Act is amended by striking out “<quotedText>Secretary of Health, Education, and Welfare or the Secretary of Health and Human Resources, as the case may be</quotedText>”, and inserting in lieu thereof “<quotedText>Secretary of Health and Human Services</quotedText>”.</content></paragraph> </subsection> </section> </chapter> <chapter><num value="7">CHAPTER 7—</num><heading>CHILD ABUSE PREVENTION AND TREATMENT PROGRAMS</heading> <section> <heading class="centered smallCaps">state grants under child abuse prevention and treatment act</heading><num value="609"><inline class="smallCaps">Sec</inline>. 609. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5103">42 USC 5103 note</ref>.</p></sidenote> <content class="inline">There is authorized to be appropriated to make grants to States under section 4(b)(1) of the Child Abuse Prevention and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5103">42 USC 5103</ref>.</p></sidenote>Treatment Act $7,000,000 for each of the fiscal years 1982 and 1983.</content> </section> <section> <heading class="centered smallCaps">discretionary programs</heading><num value="610"><inline class="smallCaps">Sec</inline>. 610. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5107">42 USC 5107</ref>.</p></sidenote> <content class="inline">The Secretary of Health and Human Services, either directly, through grants to States and public and private, nonprofit organizations and agencies, or through jointly financed cooperative arrangements with States, public agencies, and other agencies and organizations, is authorized to provide for activities of national significance related to child abuse prevention and treatment and adoption reform, including operation of a national center to collect and disseminate information regarding child abuse and neglect, and operation of a national adoption information exchange system to facilitate the adoptive placement of children.</content></paragraph> <page identifier="/us/stat/95/489">95 STAT. 489</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The Secretary, in carrying out the provisions of this subsection, shall provide for the continued operation of the National Center on Child Abuse and Neglect in accordance with section 2(a) of the Child Abuse Prevention and Treatment Act for each of the fiscal years 1982 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5101">42 USC 5101</ref>.</p></sidenote>and 1988.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>If the Secretary determines, in fiscal year 1982 or 1983, to carry out any of the activities described in section 2(b) of the Child Abuse Prevention and Treatment Act, the Secretary shall carry out such activities through the National Center on Child Abuse and Neglect.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>There is authorized to be appropriated to carry out this section <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote>$12,000,000 for each of the fiscal years 1982 and 1983. Of the amounts appropriated under this subsection for any fiscal year, not less than $2,000,000 shall be available to carry out title II of the Child Abuse Prevention and Treatment and Adoption Reform Act of 1978. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5111">42 USC 5111</ref>.</p></sidenote></content> </subsection> </section> </chapter> <chapter><num value="8">CHAPTER 8—</num><heading>COMMUNITY SERVICES PROGRAMS</heading> <subchapter><num value="A">Subchapter A—</num><heading>Community Economic Development <sidenote><p class="indent0 firstIndent0 fontsize8">Community Economic Development Act of 1981.</p></sidenote></heading> <section> <heading class="centered smallCaps">short title</heading><num value="611"><inline class="smallCaps">Sec</inline>. 611. </num><content>This subchapter may be cited as the “<shortTitle role="subchapter">Community Economic <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9801">42 USC 9801 note</ref>.</p></sidenote>Development Act of 1981</shortTitle>”.</content> </section> <section> <heading class="centered smallCaps">statement of purpose</heading><num value="612"><inline class="smallCaps">Sec</inline>. 612. </num><content>The purpose of this subchapter is to encourage the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9801">42 USC 9801</ref>.</p></sidenote>development of special programs by which the residents of urban and rural low-income areas may, through self-help and mobilization of the community at large, with appropriate Federal assistance, improve the quality of their economic and social participation in community life in such a way as to contribute to the elimination of poverty and the establishment of permanent economic and social benefits.</content> </section> <section> <heading class="centered smallCaps">definition</heading><num value="613"><inline class="smallCaps">Sec</inline>. 613. </num><content>For purposes of this subchapter, the term “community <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9802">42 USC 9802</ref>.</p></sidenote>development corporation” means a nonprofit organization responsible to residents of the area it serves which is receiving financial assistance under part 1 and any organization more than 50 percent of <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 490.</p></sidenote>which is owned by such an organization, or otherwise controlled by such an organization, or designated by such an organization for the purpose of this subchapter.</content> </section> <section> <heading class="centered smallCaps">source of funds</heading><num value="614"><inline class="smallCaps">Sec</inline>. 614. </num><content>The Secretary is authorized to use funds made available to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9803">42 USC 9803</ref>.</p><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 518.</p></sidenote>the Secretary under section 681(b) for purposes of carrying out the provisions of this subchapter.</content> </section> <section> <heading class="centered smallCaps">advisory community investment boards</heading><num value="615"><inline class="smallCaps">Sec</inline>. 615. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>The President is authorized to establish a National <sidenote><p class="indent0 firstIndent0 fontsize8">Establishment.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9804">42 USC 9804</ref>.</p></sidenote>Advisory Community Investment Board (hereinafter in this section referred to as the “Investment Board”). Such Investment Board shall be composed of 15 members appointed, for staggered terms and without regard to the civil service laws, by the President, in consultation with the Secretary of Health and Human Services (hereinafter in <page identifier="/us/stat/95/490">95 STAT. 490</page>this subchapter referred to as the “Secretary”). Such members shall be representative of the investment and business communities and appropriate fields of endeavor related to this subchapter. The Investment Board shall meet at the call of the chairperson, but not less often than 3 times each year. The Secretary and the administrator of community economic development programs shall be ex officio members of the Investment Board.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The Secretary shall carry out the provisions of this subchapter through the Office of Community Services established in section 676(a).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>The Investment Board shall promote cooperation between private investors and businesses and community development corporation projects through—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>advising the Secretary and the community development corporations on ways to facilitate private investment;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>advising businesses and other investors of opportunities in community development corporation projects; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>advising the Secretary, community development corporations, and private investors and businesses of ways in which they might engage in mutually beneficial efforts.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>The governing body of each Community Development Corporation may establish an advisory community investment board composed of not to exceed 15 members who shall be appointed by the governing body after consultation with appropriate local officials. Each such board shall promote cooperation between private investors and businesses and the governing body of the Community Development Corporation through—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>advising the governing body on ways to facilitate private investors;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>advising businesses and other investors of opportunities in Community Development Corporation projects; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>advising the governing body, private investors, and businesses of ways in which they might engage in mutually beneficial efforts.</content></paragraph> </subsection> </section> <part><num value="1">PART 1—</num><heading>URBAN AND RURAL SPECIAL IMPACT PROGRAMS</heading> <section> <heading class="centered smallCaps">statement of purpose</heading><num value="616"><inline class="smallCaps">Sec</inline>. 616. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9805">42 USC 9805</ref>.</p></sidenote> <content class="inline">The purpose of this part is to establish special programs of assistance to nonprofit private locally initiated community development corporations which (1) are directed to the solution of the critical problems existing in particular communities or neighborhoods (defined without regard to political or other subdivisions or boundaries) within those urban and rural areas having concentrations or substantial numbers of low-income persons; (2) are of sufficient size, scope, and duration to have an appreciable impact in such communities, neighborhoods, and rural areas in arresting tendencies toward dependency, chronic unemployment, and community deterioration; (3) hold forth the prospect of continuing to have such impact after the termination of financial assistance under this part; and (4) provide financial and other assistance to start, expand, or locate enterprises in or near the area to be served so as to provide employment and ownership opportunities for residents of such areas, including those who are disadvantaged in the labor market because of their limited speaking, reading, and writing abilities in the English language.</content> </section> <page identifier="/us/stat/95/491">95 STAT. 491</page> <section> <heading class="centered smallCaps">establishment and scope of programs</heading><num value="617"><inline class="smallCaps">Sec</inline>. 617. </num><subsection class="inline"><num value="a">(a) </num><chapeau>The Secretary is authorized to provide financial <sidenote><p class="indent0 firstIndent0 fontsize8">Grants.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9806">42 USC 9806</ref>.</p></sidenote>assistance in the form of grants to nonprofit and for profit community development corporations and other affiliated and supportive agencies and organizations associated with qualifying community development corporations for the payment of all or part of the cost of programs which are designed to carry out the purposes of this part. Financial assistance shall be provided so that each community economic development program is of sufficient size, scope, and duration to have an appreciable impact on the area served. Such programs may include—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>community business and commercial development programs, including (A) programs which provide financial and other assistance (including equity capital) to start, expand, or locate businesses in or near the area served so as to provide employment and ownership opportunities for residents of such areas; and (B) programs for small businesses located in or owned by residents of such areas;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>community physical development programs, including industrial parks and housing activities, which contribute to an improved environment and which create new training, employment and ownership opportunities for residents of such area;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>training and public service employment programs and related services for unemployed or low-income persons which support and complement community development programs financed under this part, including, without limitation, activities such as those described in the Comprehensive Employment and Training Act; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>social service programs which support and complement community business and commercial development programs financed under this part, including child care, educational services, health services, credit counseling, energy conservation, recreation services, and programs for the maintenance of housing facilities.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The Secretary shall conduct programs assisted under this part so as to contribute, on an equitable basis between urban and rural areas, to the elimination of poverty and the establishment of permanent economic and social benefits in such areas.</content> </subsection> </section> <section> <heading class="centered smallCaps">financial assistance requirements</heading><num value="618"><inline class="smallCaps">Sec</inline>. 618. </num><subsection class="inline"><num value="a">(a) </num><chapeau>The Secretary, under such regulations as the Secretary <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9807">42 USC 9807</ref>.</p></sidenote>may establish, shall not provide financial assistance for any community economic development program under this part unless the Secretary determines that—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>such community development corporation is responsible to residents of the area served (A) through a governing body not less than 50 percent of the members of which are area residents; and (B) in accordance with such other guidelines as may be established by the Secretary, except that the composition of the governing bodies of organizations owned or controlled by the community development corporation need not be subject to such residency requirement;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>the program will be appropriately coordinated with local planning under this subchapter with housing and community development programs, with employment and training pro-<page identifier="/us/stat/95/492">95 STAT. 492</page>grams, and with other relevant planning for physical and human resources in the areas served;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>adequate technical assistance is made available and committed to the programs being supported;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>such financial assistance will materially further the purposes of this part;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>the applicant is fulfilling or will fulfill a need for services, supplies, or facilities which is otherwise not being met;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>all projects and related facilities will, to the maximum feasible extent, be located in the areas served;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>projects will, where feasible, promote the development of entrepreneurial and management skills and the ownership or participation in ownership of assisted businesses and housing, cooperatively or otherwise, by residents of the area served;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>projects will be planned and carried out with the fullest possible participation of resident or local businessmen and representatives of financial institutions, including participation through contract, joint venture, partnership, stock ownership or membership on the governing boards or advisory councils of such projects consistent with the self-help purposes of this subchapter;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">(9) </num><content>no participant will be employed on projects involving political parties, or the construction, operation, or maintenance of so much of any facility as is used or to be used for sectarian instruction or as a place for religious worship;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">(10) </num><content>the program will not result in the displacement of employed workers or impair existing contracts for services, or result in the substitution of Federal or other funds in connection with work that would otherwise be performed;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="11">(11) </num><content>the rates of pay for time spent in work training and education, and other conditions of employment, will be appropriate and reasonable in the light of such factors as the type of work, geographical region, and proficiency of the participant;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="12">(12) </num><content>the program will, to the maximum extent feasible, contribute to the occupational development or upward mobility of individual participants;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="13">(13) </num><content>preference will be given to low-income or economically disadvantaged residents of the areas served in filling jobs and training opportunities; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="14">(14) </num><content>training programs carried out in connection with projects financed under this part shall be designed wherever feasible to provide those persons who successfully complete such training with skills which are also in demand in communities, neighborhoods, or rural areas other than those for which programs are established under this part.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Financial assistance under this section shall not be extended to assist in the relocation of establishments from one location to another if such relocation would result in a substantial increase in unemployment in the area of original location.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Financial assistance for commercial development under this part shall not be extended until the community economic development program that has applied for assistance under this subchapter has specified in some detail its development goals and its development timetable. The Secretary, in providing continued financial assistance to a community economic development program, shall give serious consideration to the experience such program has had in meeting development goals or in adhering to development timetables.</content> </subsection> </section> <page identifier="/us/stat/95/493">95 STAT. 493</page> <section> <heading class="centered smallCaps">federal share</heading><num value="619"><inline class="smallCaps">Sec</inline>. 619. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Assistance provided under this subchapter to any <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9808">42 USC 9808</ref>.</p></sidenote>program described in section 618(a) shall not exceed 90 percent of the cost of such program, including costs of administration, unless the Secretary determines that the assistance in excess of such percentage is required in furtherance of the purposes of this subchapter. Non-Federal contributions may be in cash or in kind, fairly evaluated, including but not limited to plant, equipment, and services.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The assistance referred to in paragraph (1) shall be made available (A) for deposit to the order of grantees which have demonstrated successful program performance, under conditions which the Secretary deems appropriate, within 30 days following approval of the grant agreement by the Secretary and such grantee; or (B) whenever the Secretary deems appropriate, in accordance with applicable rules and regulations prescribed by the Secretary of the Treasury, and including any other conditions which the Secretary of Health and Human Services deems appropriate, within 30 days following approval of the grant agreement by the Secretary and such grantee.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Property acquired as a result of capital investments made by any community development corporation with funds granted as its Federal share of the cost of programs carried out under this subchapter, and the proceeds from such property, shall become the property of the community development corporation and shall not be considered to be Federal property. The Federal Government retains the right to direct that on severance of the grant relationship the assets purchased with grant funds shall continue to be used for the original purpose for which they were granted.</content> </subsection> </section> </part> <part><num value="2">PART 2—</num><heading>SPECIAL RURAL PROGRAMS</heading> <section> <heading class="centered smallCaps">statement of purpose</heading><num value="620"><inline class="smallCaps">Sec</inline>. 620. </num><content>It is the purpose of this part to meet the special economic <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9809">42 USC 9809</ref>.</p></sidenote>needs of rural communities or areas with concentrations or substantial numbers of low-income persons by providing support to self-help programs which promote economic development and independence, as a supplement to existing similar programs conducted by other departments and agencies of the Federal Government. Such programs should encourage low-income families to pool their talents and resources so as to create and expand rural economic enterprise.</content> </section> <section> <heading class="centered smallCaps">financial assistance</heading><num value="621"><inline class="smallCaps">Sec</inline>. 621. </num><subsection class="inline"><num value="a">(a) </num><chapeau>The Secretary is authorized to provide financial <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9810">42 USC 9810</ref>.</p></sidenote>assistance, including loans having a maximum maturity of fifteen years and in amounts not resulting in an aggregate principal indebtedness of more than $3,500 at any one time, to any low-income rural family where, in the judgment of the Secretary, such financial assistance has a reasonable possibility of effecting a permanent increase in the income of such families, or will contribute to the improvement of their living or housing conditions, by assisting or permitting them to—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>acquire or improve real estate or reduce encumbrances or erect improvements thereon;</content></paragraph> <page identifier="/us/stat/95/494">95 STAT. 494</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>operate or improve the operation of farms not larger than family sized, including but not limited to the purchase of feed, seed, fertilizer, livestock, poultry, and equipment; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>participate in cooperative associations, or finance nonagricultral enterprises which will enable such families to supplement their income.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>The Secretary is authorized to provide financial assistance to local cooperative associations or local public and private nonprofit organizations or agencies in rural areas containing concentrations or substantial numbers of low-income persons for the purpose of defraying all or part of the costs of establishing and operating cooperative programs for farming, purchasing, marketing, processing, and to improve their income as producers and their purchasing power as consumers, and to provide such essentials as credit and health services. Costs which may be defrayed shall include—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>administrative costs of staff and overhead;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>costs of planning and developing new enterprises;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>costs of acquiring technical assistance; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>initial capital where it is determined by the Secretary that the poverty of the families participating in the program and the social conditions of the rural area require such assistance.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">limitation on assistance</heading><num value="622"><inline class="smallCaps">Sec</inline>. 622. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9811">42 USC 9811</ref>.</p></sidenote> <chapeau class="inline">No financial assistance shall be provided under this part unless the Secretary determines that—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>any cooperative association receiving assistance has a minimum of fifteen active members, a majority of which are low-income rural persons;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>adequate technical assistance is made available and committed to the programs being supported;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>such financial assistance will materially further the purposes of this part; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>the applicant is fulfilling or will fulfill a need for services, supplies, or facilities which is otherwise not being met.</content></paragraph> </section> </part> <part><num value="3">PART 3—</num><heading>DEVELOPMENT LOANS TO COMMUNITY ECONOMIC DEVELOPMENT PROGRAMS</heading> <section> <heading class="centered smallCaps">development loan fund</heading><num value="623"><inline class="smallCaps">Sec</inline>. 623. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9812">42 USC 9812</ref>.</p></sidenote> <chapeau class="inline">The Secretary is authorized to make or guarantee loans (either directly or in cooperation with banks or other organizations through agreements to participate on an immediate or deferred basis) to community development corporations, to families and local cooperatives and the designated supportive organizations of cooperatives eligible for financial assistance under this subchapter, to private nonprofit organizations receiving assistance under subtitle B of this <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 511.</p></sidenote>title, or to public and private nonprofit organizations or agencies, for business facilities and community development projects, including community development credit unions, which the Secretary determines will carry out the purposes of this part. No loans, guarantees, or other financial assistance shall be provided under this section unless the Secretary determines that—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>there is reasonable assurance of repayment of the loan;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>the loan is not otherwise available on reasonable terms from private sources or other Federal, State, or local programs; and</content></paragraph> <page identifier="/us/stat/95/495">95 STAT. 495</page> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>the amount of the loan, together with other funds available, is adequate to assure completion of the project or achievement of the purposes for which the loan is made.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">Loans made by the Secretary pursuant to this section shall bear interest at a rate not less than a rate determined by the Secretary of the Treasury taking into consideration the average market yield on outstanding Treasury obligations of comparable maturity, plus such additional charge, if any, toward covering other costs of the program as the Secretary of Health and Human Services may determine to be consistent with its purposes, except that, for the 5 years following the date in which funds are initially available to the borrower, the rate of interest shall be set at a rate considered appropriate by the Secretary in light of the particular needs of the borrower, which rate shall not be lower than 1 percent. All such loans shall be repayable within a period of not more than 30 years.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The Secretary is authorized to adjust interest rates, grant moratoriums on repayment of principal and interest, collect or compromise any obligations held by the Secretary, and to take such other actions in respect to such loans as the Secretary shall determine to be necessary or appropriate, consistent with the purposes of this section.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><content>To carry out the lending and guaranty functions authorized <sidenote><p class="indent0 firstIndent0 fontsize8">Rural Development Loan Fund and Community Development Loan Fund, Establishment.</p></sidenote>under this part, there shall be established a Development Loan Fund consisting of two separate accounts, one of which shall be a revolving fund called the Rural Development Loan Fund and the other of which shall be a revolving fund called the Community Development Loan Fund. The capital of each such revolving fund shall remain available until expended.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The Rural Development Loan Fund shall consist of the remaining funds provided for in part A of title III of the Economic Opportunity Act of 1964, as in effect on September 19, 1972, and such amounts <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2851">42 USC 2851</ref>.</p></sidenote>as may be deposited in such fund by the Secretary out of funds made available from appropriations for purposes of carrying out this part. The Secretary shall utilize the services of the Farmers Home Administration in administering such fund.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The Community Development Loan Fund shall consist of such amounts as may be deposited in such fund by the Secretary out of funds made available from appropriations for purposes of carrying out this subchapter. The Secretary may make deposits in the Community Development Loan Fund in any fiscal year in which the Secretary has made available for grants to community development corporations under this subchapter not less than $60,000,000 out of funds made available from appropriations for purposes of carrying out this subchapter.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">establishment of model community economic development finance corporation</heading><num value="624"><inline class="smallCaps">Sec</inline>. 624. </num><content>To the extent he deems appropriate, the Secretary shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9813">42 USC 9813</ref>.</p></sidenote>utilize funds available under this part to prepare a plan of action for the establishment of a Model Community Economic Development Finance Corporation to provide a user-controlled independent and professionally operated long-term financing vehicle with the principal purpose of providing financial support for community economic development corporations, cooperatives, other affiliated and supportive agencies and organizations associated with community economic development corporations, and other entities eligible for assistance under this subchapter.</content> </section> </part> <page identifier="/us/stat/95/496">95 STAT. 496</page> <part><num value="4">PART 4—</num><heading>SUPPORTIVE PROGRAMS AND ACTIVITIES</heading> <section> <heading class="centered smallCaps">training and technical assistance</heading><num value="625"><inline class="smallCaps">Sec</inline>. 625. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9814">42 USC 9814</ref>.</p></sidenote> <content class="inline">The Secretary shall provide, directly or through grants, contracts, or other arrangements, such technical assistance and training of personnel as may be required to effectively implement the purposes of this subchapter. No financial assistance shall be provided to any public or private organization under this section unless the Secretary provides the beneficiaries of these services with opportunity to participate in the selection of and to review the quality and utility of the services furnished them by such organization.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Technical assistance to community development corporations and both urban and rural cooperatives may include planning, management, legal assistance or support, preparation of feasibility studies, product development, marketing, and the provision of stipends to encourage skilled professionals to engage in full-time activities under the direction of a community organization financially assisted under this subchapter.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Training for employees of community development corporations and for employees and members of urban and rural cooperatives shall include on-the-job training, classroom instruction, and scholarships to assist them in development, managerial, entrepreneurial, planning, and other technical and organizational skills which will contribute to the effectiveness of programs assisted under this subchapter.</content> </subsection> </section> <section> <heading class="centered smallCaps">small business administration and department of commerce programs</heading><num value="626"><inline class="smallCaps">Sec</inline>. 626. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9815">42 USC 9815</ref>.</p></sidenote> <content class="inline">Funds granted under this subchapter which are invested directly or indirectly, in a small investment company, local development company, limited small business investment company, or small business investment company licensee under section 301(d) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s681">15 USC 681</ref>.</p></sidenote>of the Small Business Investment Act of 1958 shall be included as “private paid-in capital and paid-in surplus”, “combined paid-in capital and paid-in surplus”, and “paid-in capital” for purposes of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s682/683/696">15 USC 682, 683, 696</ref>.</p></sidenote>sections 302, 303, and 502, respectively, of the Small Business Investment Act of 1958.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> <content class="inline">Not later than 90 days after the date of the enactment of this Act, the Administrator of the Small Business Administration, after consultation with the Secretary, shall promulgate regulations to ensure the availability to community development corporations of such programs as shall further the purposes of this subchapter, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s637">15 USC 637</ref>.</p></sidenote>including programs under section 8(a) of the Small Business Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Areas selected for assistance under this subchapter shall be deemed “redevelopment areas” within the meaning of section 401 of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3161">42 USC 3161</ref>.</p></sidenote>the Pubic Works and Economic Development Act of 1965, shall qualify for assistance under the provisions of title I and title II of such <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3131/3141">42 USC 3131, 3141</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3142">42 USC 3142</ref>.</p><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote>Act, and shall be deemed to have met the overall economic development program requirements of section 202(b)(10) of such Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Not later than 90 days after the date of the enactment of this Act, the Secretary of Commerce shall prescribe regulations which will ensure that community development corporations and cooperatives shall qualify for assistance and shall be eligible to receive such assistance under all such programs of the Economic Development Administration as shall further the purposes of this subchapter.</content></paragraph> </subsection> </section> <page identifier="/us/stat/95/497">95 STAT. 497</page> <section> <heading class="centered smallCaps">department of housing and urban development programs</heading><num value="627"><inline class="smallCaps">Sec</inline>. 627. </num><content>The Secretary of Housing and Urban Development, after <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9816">42 USC 9816</ref>.</p></sidenote>consultation with the Secretary, shall take all necessary steps to assist community development corporations and local cooperative associations to qualify for and receive (1) such assistance in connection with technical assistance, counseling to tenants and homeowners, and loans to sponsors of low-income and moderate-income housing under section 106 of the Housing and Urban Development Act of 1968, as amended by section 811 of the Housing and Community Development Act of 1974; (2) such land for housing and business <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s1701x">12 USC 1701x</ref>.</p></sidenote>location and expansion under title I of the Housing and Community Development Act of 1974; and (3) such funds for comprehensive <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5301">42 USC 5301</ref>.</p></sidenote>planning under section 701 of the Housing Act of 1954, as amended by section 401 of the Housing and Community Development Act of 1974, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s461">40 USC 461</ref>.</p></sidenote>as shall further the purposes of this subchapter.</content> </section> <section> <heading class="centered smallCaps">department of agriculture and farmers home administration programs</heading><num value="628"><inline class="smallCaps">Sec</inline>. 628. </num><chapeau>The Secretary of Agriculture or, where appropriate, the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9817">42 USC 9817</ref>.</p></sidenote>Administrator of the Farmers Home Administration, after consultation with the Secretary of Health and Human Services, shall take all necessary steps to ensure that community development corporations and local cooperative associations shall qualify for and shall receive—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>such assistance in connection with housing development under the Housing Act of 1949, as amended; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1441">42 USC 1441 note</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>such assistance in connection with housing, business, industrial, and community development under the Consolidated Farmers Home Administration Act of 1961 and the Rural Development <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1921">7 USC 1921 note</ref>.</p></sidenote>Act of 1972; and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1921">7 USC 1921 note</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>such further assistance under all such programs of the United States Department of Agriculture; as shall further the purposes of this subchapter.</content></paragraph> </section> <section> <heading class="centered smallCaps">coordination and eligibility</heading><num value="629"><inline class="smallCaps">Sec</inline>. 629. </num><subsection class="inline"><num value="a">(a) </num><content>The Secretary shall take all necessary and appropriate <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s98i8">42 USC 9818</ref>.</p></sidenote>steps to encourage Federal departments and agencies and State and local governments to make grants, provide technical assistance, enter into contracts, and generally support and cooperate with community development corporations and local cooperative associations.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Eligibility for assistance under other Federal programs shall not be denied to any applicant on the ground that it is a community development corporation or any other entity assisted under this subchapter.</content> </subsection> </section> <section> <heading class="centered smallCaps">evaluation and research</heading><num value="630"><inline class="smallCaps">Sec</inline>. 630. </num><subsection class="inline"><num value="a">(a) </num><content>Each program for which grants are made under this <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9819">42 USC 9819</ref>.</p></sidenote>subchapter shall provide for a thorough evaluation of the effectiveness of the program in achieving its purposes, which evaluation shall be conducted by such public or private organizations as the Secretary in consultation with existing grantees familiar with programs carried out under the Community Services Block Grant Act may designate, <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 511.</p></sidenote>and all or part of the costs of evaluation may be paid from funds appropriated to carry out this part. In evaluating the performance of any community development corporation funded under part 1, the criteria for evaluation shall be based upon such program objectives, <page identifier="/us/stat/95/498">95 STAT. 498</page>goals, and priorities as are consistent with the purposes of this subchapter and were set forth by such community development corporation in its proposal for funding as approved and agreed upon by or as subsequently modified from time to time by mutual agreement between the Secretary and such community development corporation.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The Secretary shall conduct, either directly or through grants or other arrangements, research and demonstration projects designed to suggest new programs and policies to achieve the purposes of this subchapter in such ways as to provide opportunities for employment, ownership, and a better quality of life for low-income residents.</content> </subsection> </section> <section> <heading class="centered smallCaps">planning grants</heading><num value="631"><inline class="smallCaps">Sec</inline>. 631. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9820">42 USC 9820</ref>.</p></sidenote> <content class="inline">In order to facilitate the purposes of this subchapter, the Secretary is authorized to provide financial assistance to any public or private nonprofit agency or organization for planning of community economic development programs and cooperative programs under this subchapter.</content> </section> <section> <heading class="centered smallCaps">nondiscrimination provisions</heading><num value="632"><inline class="smallCaps">Sec</inline>. 632. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9821">42 USC 9821</ref>.</p></sidenote> <content class="inline">The Secretary shall not provide financial assistance for any program, project, or activity under this subchapter unless the grant or contract with respect thereto specifically provides that no person with responsibilities in the operation thereof will discriminate with respect to any such program, project, or activity because of race, creed, color, national origin, sex, political affiliation, or beliefs.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>No person in the United States shall on the ground of sex be excluded from participation in, be denied the benefits of, be subjected to discrimination under, or be denied employment in connection with any program or activity receiving assistance under this subchapter. The Secretary shall enforce the provisions of the preceding sentence <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2000d–1">42 USC 2000d–1</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2000d–2">42 USC 2000d–2</ref>.</p></sidenote>in accordance with section 602 of the Civil Rights Act of 1964. Section 603 of such Act shall apply with respect to any action taken by the Secretary to enforce such sentence. This section shall not be construed as affecting any other legal remedy that a person may have if such person is excluded from participation in, denied the benefits of, subjected to discrimination under, or denied employment in connection with, any program, project, or activity receiving assistance under this subchapter.</content> </subsection> </section> <section> <heading class="centered smallCaps">availability of certain appropriated funds</heading><num value="633"><inline class="smallCaps">Sec</inline>. 633. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9822">42 USC 9822</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2981">42 USC 2981</ref>.</p></sidenote> <content class="inline">Funds appropriated to the Rural Development Loan Fund under title VII of the Economic Opportunity Act of 1964 (as in effect on the day before the date of the enactment of this Act), and interest accumulated in such fund, shall be deposited in the Rural Development Loan Fund established under section 623(c)(1) and shall continue to be available to carry out the purposes of such fund. Funds appropriated to the Community Development Credit Union Revolving Loan Fund under title VII of the Economic Opportunity Act of 1964 (as in effect on the day before the date of the enactment of this Act), and interest accumulated in such fund, shall continue to be available to carry out the purposes of such fund.</content> </section> </part> </subchapter> <page identifier="/us/stat/95/499">95 STAT. 499</page> <subchapter><num value="B">Subchapter B—</num><heading>Head Start Programs Head Start Act. <sidenote><p class="indent0 firstIndent0 fontsize8">Head Start Act.</p></sidenote></heading> <section> <heading class="centered smallCaps">short title</heading><num value="635"><inline class="smallCaps">Sec</inline>. 635. </num><content>This subchapter may be cited as the “<shortTitle role="subchapter">Head Start Act</shortTitle>”. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9801">42 USC 9801 note</ref>.</p></sidenote></content> </section> <section> <heading class="centered smallCaps">statement of purpose and policy</heading><num value="636"><inline class="smallCaps">Sec</inline>. 636. </num><subsection class="inline"><num value="a">(a) </num><content>In recognition of the role which Project Head Start has <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9831">42 USC 9831</ref>.</p></sidenote>played in the effective delivery of comprehensive health, educational, nutritional, social, and other services to economically disadvantaged children and their families, it is the purpose of this subchapter to extend the authority for the appropriation of funds for such program.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>In carrying out the provisions of this subchapter, the Secretary of Health and Human Services shall continue the administrative arrangement responsible for meeting the needs of migrant and Indian children and shall assure that appropriate funding is provided to meet such needs.</content> </subsection> </section> <section> <heading class="centered smallCaps">definitions</heading><num value="637"><inline class="smallCaps">Sec</inline>. 637. </num><chapeau>For purposes of this subchapter: <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9832">42 USC 9832</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>The term “Secretary” means the Secretary of Health and Human Services.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The term “State” means a State, the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, the Virgin Islands, the Trust Territory of the Pacific Islands, and the Northern Mariana Islands.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The term “financial assistance” includes assistance provided by grant, agreement, or contract, and payments may be made in installments and in advance or by way of reimbursement with necessary adjustments on account of overpayments or underpayments.</content></paragraph> </section> <section> <heading class="centered smallCaps">financial assistance for head start programs</heading><num value="638"><inline class="smallCaps">Sec</inline>. 638. </num><content>The Secretary may, upon application by an agency which <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9833">42 USC 9833</ref>.</p></sidenote>is eligible for designation as a Head Start agency pursuant to section 641, provide financial assistance to such agency for the planning, conduct, administration, and evaluation of a Head Start program focused primarily upon children from low-income families who have not reached the age of compulsory school attendance which (1) will provide such comprehensive health, nutritional, educational, social, and other services as will aid the children to attain their full potential; and (2) will provide for direct participation of the parents of such children in the development, conduct, and overall program direction at the local level.</content> </section> <section> <heading class="centered smallCaps">authorization of appropriations</heading><num value="639"><inline class="smallCaps">Sec</inline>. 639. </num><content>There is authorized to be appropriated for carrying out <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9834">42 USC 9834</ref>.</p></sidenote>the provisions of this subchapter $950,000,000 for fiscal year 1982, $1,007,000,000 for fiscal year 1983, and $1,058,357,000 for fiscal year 1984.</content> </section> <section> <heading class="centered smallCaps">allotment of funds; limitations on assistance</heading><num value="640"><inline class="smallCaps">Sec</inline>. 640. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Of the sums appropriated pursuant to section 639 for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9835">42 USC 9835</ref>.</p></sidenote>any fiscal year beginning after September 30, 1981, the Secretary shall allot such sums in accordance with paragraphs (2) and (3).</content></paragraph> <page identifier="/us/stat/95/500">95 STAT. 500</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>The Secretary shall reserve 13 percent of the amount appropriated for each fiscal year for use in accordance with the following order of priorities—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><chapeau>Indian and migrant Head Start programs and services for handicapped children, except that—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>there shall be made available for use by Indian and migrant Head Start programs, on a nationwide basis, no less funds for fiscal year 1982 and each subsequent fiscal year than were obligated for use by Indian and migrant Head Start programs for fiscal year 1981; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>cost-of-living adjustments shall be made with respect to such Indian and migrant Head Start programs for fiscal year 1982 and each subsequent fiscal year, and such adjustments shall, at the minimum, reflect changes in the Consumer Price Index published by the Bureau of Labor Statistics of the Department of Labor;</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>payments to Guam, American Samoa, the Trust Territory of the Pacific Islands, the Northern Mariana Islands, and the Virgin Islands according to their respective needs, except that such amount shall not exceed one-half of 1 percent of the sums appropriated for any fiscal year;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>training and technical assistance activities which are sufficient to meet the needs associated with program expansion and to foster program and management improvement activities; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>discretionary payments made by the Secretary.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>The Secretary shall allot the remaining 87 percent of the amounts appropriated in each fiscal year among the States, in accordance with latest satisfactory data so that—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>each State receives an amount which is equal to the amount the State received for fiscal year 1981; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><clause class="inline"><num value="i">(i) </num><content>33 ⅓ percent of any amount available after all allotments have been made under clause (A) for such fiscal year shall be distributed on the basis of the relative number of children from birth through 18 years of age, on whose behalf payments are made under the program of aid to families with dependent children under a State plan approved under part A of title IV of the Social Security Act in each State as compared to all States; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>66 ⅔ percent of such amount shall be distributed on the basis of the relative number of children from birth through 5 years of age living with families with incomes below the poverty line in each State as compared to all States.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>For purposes of this subsection, the term “State” does not include Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, or the Trust Territory of the Pacific Islands.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Financial assistance extended under this subchapter for a Head Start program shall not exceed 80 percent of the approved costs of the assisted program or activities, except that the Secretary may approve assistance in excess of such percentage if the Secretary determines, in accordance with regulations establishing objective criteria, that such action is required in furtherance of the purposes of this subchapter. Non-Federal contributions may be in cash or in kind, fairly evaluated, including plant, equipment, or services. The Secretary shall not require non-Federal contributions in excess of 20 percent of the approved costs of programs or activities assisted under this subchapter.</content> </subsection> <page identifier="/us/stat/95/501">95 STAT. 501</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>No programs shall be approved for assistance under this subchapter unless the Secretary is satisfied that the services to be provided under such program will be in addition to, and not in substitution for, comparable services previously provided without Federal assistance. The requirement imposed by the preceding sentence shall be subject to such regulations as the Secretary may prescribe.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>The Secretary shall establish policies and procedures designed to assure that for fiscal year 1982 and thereafter no less than 10 percent of the total number of enrollment opportunities in Head Start programs in each State shall be available for handicapped children (as defined in paragraph (1) of section 602 of the Education of the Handicapped Act) and that services shall be provided to meet <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s3192">20 USC 3192</ref>.</p><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote>their special needs. The Secretary shall report to the Congress at least annually on the status of handicapped children in Head Start programs, including the number of children being served, their handicapping conditions, and the services being provided such children.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>The Secretary shall adopt appropriate administrative measures to assure that the benefits of this subchapter will be distributed equitably between residents of rural and urban areas.</content> </subsection> </section> <section> <heading class="centered smallCaps">designation of head start agencies</heading><num value="641"><inline class="smallCaps">Sec</inline>. 641. </num><subsection class="inline"><num value="a">(a) </num><content>The Secretary is authorized to designate as a Head <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9836">42 USC 9836</ref>.</p></sidenote>Start agency any local public or private nonprofit agency which (1) has the power and authority to carry out the purposes of this subchapter and perform the functions set forth in section 642 within a community; and (2) is determined by the Secretary to be capable of planning, conducting, administering, and evaluating, either directly or by other arrangements, a Head Start program.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>For purposes of this subchapter, a community may be a city, <sidenote><p class="indent0 firstIndent0 fontsize8">“Community.”</p></sidenote>county, or multicity or multicounty unit within a State, an Indian reservation, or a neighborhood or other area (irrespective of boundaries or political subdivisions) which provides a suitable organizational base and possesses the commonality of interest needed to operate a Head Start program.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>In the administration of the provisions of this section, the Secretary shall give priority in the designation of Head Start agencies to any local public or private nonprofit agency which is receiving funds under any Head Start program on the date of the enactment of this Act, except that—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the Secretary shall, before giving such priority, determine that the agency involved meets program and fiscal requirements established by the Secretary; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>if there is no such agency because of any change in the assistance furnished to programs for economically disadvantaged persons, then the Secretary shall give priority in the designation of Head Start agencies to any successor agency which is operated in substantially the same manner as the predecessor agency which did receive funds in the fiscal year preceding the fiscal year for which the determination is made.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">The provisions of clause (2) shall apply only to agencies actually operating Head Start programs.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>The Secretary shall require that the practice of significantly involving parents and area residents affected by the program in selection of Head Start agencies be continued.</content> </subsection> </section> <page identifier="/us/stat/95/502">95 STAT. 502</page> <section> <heading class="centered smallCaps">powers and functions of head start agencies</heading><num value="642"><inline class="smallCaps">Sec</inline>. 642. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9837">42 USC 9837</ref>.</p></sidenote> <content class="inline">In order to be designated as a Head Start agency under this subchapter, an agency must have authority under its charter or applicable law to receive and administer funds under this subchapter, funds and contributions from private or local public sources which may be used in support of a Head Start program, and funds under any Federal or State assistance program pursuant to which a public or private nonprofit agency (as the case may be) organized in accordance with this subchapter, could act as grantee, contractor, or sponsor of projects appropriate for inclusion in a Head Start program. Such an agency must also be empowered to transfer funds so received, and to delegate powers to other agencies, subject to the powers of its governing board and its overall program responsibilities. The power to transfer funds and delegate powers must include the power to make transfers and delegations covering component projects in all cases where this will contribute to efficiency and effectiveness or otherwise further program objectives.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>In order to be so designated, a Head Start agency must also (1) establish effective procedures by which parents and area residents concerned will be enabled to directly participate in decisions that influence the character of programs affecting their interests; (2) provide for their regular participation in the implementation of such programs; (3) provide technical and other support needed to enable parents and area residents to secure on their own behalf available assistance from public and private sources; and (4) establish procedures to seek reimbursement, to the extent feasible, from other agencies for services for which any such other agency is responsible, which are provided to a Head Start participant by the Head Start agency.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The head of each Head Start agency shall coordinate with other programs serving the children in the Head Start agency to carry out the provisions of this subsection.</content> </subsection> </section> <section> <heading class="centered smallCaps">submission of plans to governors</heading><num value="643"><inline class="smallCaps">Sec</inline>. 643. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9838">42 USC 9838</ref>.</p></sidenote> <content class="inline">In carrying out the provisions of this subchapter, no contract, agreement, grant, or other assistance shall be made for the purpose of carrying out a Head Start program within a State unless a plan setting forth such proposed contract, agreement, grant, or other assistance has been submitted to the Governor of the State, and such plan has not been disapproved by the Governor within 30 days of such submission, or, if so disapproved, has been reconsidered by the Secretary and found by the Secretary to be fully consistent with the provisions and in furtherance of the purposes of this subchapter. Funds to cover the costs of the proposed contract, agreement, grant, or other assistance shall be obligated from the appropriation which is current at the time the plan is submitted to the Governor. This section shall not, however, apply to contracts, agreements, grants, loans, or other assistance to any institution of higher education in existence on the date of the enactment of this Act.</content> </section> <section> <heading class="centered smallCaps">administrative requirements and standards</heading><num value="644"><inline class="smallCaps">Sec</inline>. 644. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9839">42 USC 9839</ref>.</p></sidenote> <content class="inline">Each Head Start agency shall observe standards of organization, management, and administration which will assure, so far as reasonably possible, that all program activities are conducted in a manner consistent with the purposes of this subchapter and the <page identifier="/us/stat/95/503">95 STAT. 503</page>objective of providing assistance effectively, efficiently, and free of any taint of partisan political bias or personal or family favoritism. Each such agency shall establish or adopt rules to carry out this section, which shall include rules to assure full staff accountability in matters governed by law, regulations, or agency policy. Each agency shall also provide for reasonable public access to information, including public hearings at the request of appropriate community groups and reasonable public access to books and records of the agency or other agencies engaged in program activities or operations involving the use of authority or funds for which it is responsible. Each such agency shall adopt for itself and other agencies using funds or exercising authority for which it is responsible, rules designed to (1) establish specific standards governing salaries, salary increases, travel and per diem allowances, and other employee benefits; (2) assure that only persons capable of discharging their duties with competence and integrity are employed and that employees are promoted or advanced under impartial procedures calculated to improve agency performance and effectiveness; (3) guard against personal or financial conflicts of interest; and (4) define employee duties in an appropriate manner which will in any case preclude employees from participating, in connection with the performance of their duties, in any form of picketing, protest, or other direct action which is in violation of law.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>No financial assistance shall be extended under this subchapter in any case in which the Secretary determines that the costs of developing and administering a program assisted under this subchapter exceed 15 percent of the total costs, including non-Federal contributions to such costs, of such program. The Secretary shall establish by regulation, criteria for determining (1) the costs of developing and administering such program; and (2) the total costs of such program. In any case in which the Secretary determines that the cost of administering such program does not exceed 15 percent of such total costs but is, in the judgment of the Secretary, excessive, the Secretary shall forthwith require the recipient of such financial assistance to take such steps prescribed by the Secretary as will eliminate such excessive administrative cost, including the sharing by one or more Head Start agencies of a common director and other administrative personnel. The Secretary may waive the limitation prescribed by this subsection for specific periods of time not to exceed 12 months whenever the Secretary determines that such a waiver is necessary in order to carry out the purposes of this subchapter.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The Secretary shall prescribe rules or regulations to supplement <sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote>subsection (a), which shall be binding on all agencies carrying on Head Start program activities with financial assistance under this subchapter. The Secretary may, where appropriate, establish special or simplified requirements for smaller agencies or agencies operating in rural areas. Policies and procedures shall be established to ensure that indirect costs attributable to the common or joint use of facilities and services by programs assisted under this subchapter and other programs shall be fairly allocated among the various programs which utilize such facilities and services.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>At least 30 days prior to their effective date, all rules, regulations, <sidenote><p class="indent0 firstIndent0 fontsize8">Publication in Federal Register.</p></sidenote>guidelines, instructions, and application forms shall be published in the Federal Register and shall be sent to each grantee with the notification that each such grantee has the right to submit comments pertaining thereto to the Secretary prior to the final adoption thereof.</content> </subsection> </section> <page identifier="/us/stat/95/504">95 STAT. 504</page> <section> <heading class="centered smallCaps">participation in head start programs</heading><num value="645"><inline class="smallCaps">Sec</inline>. 645. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9840">42 USC 9840</ref>.</p></sidenote> <content class="inline">The Secretary shall by regulation prescribe eligibility for the participation of persons in Head Start programs assisted under this subchapter. Except as provided in paragraph (2), such criteria may provide (A) that children from low-income families shall be eligible for participation in programs assisted under this subchapter if their families’ incomes are below the poverty line, or if their families are eligible or, in the absence of child care, would potentially be eligible for public assistance; and (B) pursuant to such regulations as the Secretary shall prescribe, that programs assisted under this subchapter may include, to a reasonable extent, participation of children in the area served who would benefit from such programs but whose families do not meet the low-income criteria prescribed pursuant to clause (A).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Whenever a Head Start program is operated in a community with a population of 1,000 or less individuals and—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>there is no other preschool program in the community;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>the community is located in a medically underserved area, as designated by the Secretary pursuant to section 330(b)(3) of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254c">42 USC 254c</ref>.</p></sidenote>Public Health Service Act and is !orated in a health manpower shortage area, as designated by the Secretary pursuant to section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254e">42 USC 254e</ref>.</p></sidenote>332(a)(1) of such Act;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>the community is in a location which, by reason of remoteness, does not permit reasonable access to the types of services described in clauses (A) and (B); and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>not less than 50 percent of the families to be served in the community are eligible under the eligibility criteria established by the Secretary under paragraph (1);</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">the Head Start program in each such locality shall establish the criteria for eligibility, except that no child residing in such community whose family is eligible under such eligibility criteria shall, by virtue of such project’s eligibility criteria, be denied an opportunity to participate in such program.</continuation> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The Secretary shall not prescribe any fee schedule or otherwise provide for the charging of any fees for participation in Head Start programs, unless such fees are authorized by legislation hereafter enacted. Nothing in this subsection shall be construed to prevent the families of children who participate in Head Start programs and who are willing and able to pay the full cost of such participation from doing so.</content> </subsection> </section> <section> <heading class="centered smallCaps">appeals, notice, and hearing</heading><num value="646"><inline class="smallCaps">Sec</inline>. 646. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9841">42 USC 9841</ref>.</p></sidenote> <chapeau class="inline">The Secretary shall prescribe procedures to assure that—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>special notice of and an opportunity for a timely and expeditious appeal to the Secretary will be provided for an agency or organization which desires to serve as a delegate agency under this subchapter and whose application to the Head Start agency has been wholly or substantially rejected or has not been acted upon within a period of time deemed reasonable by the Secretary, in accordance with regulations which the Secretary shall prescribe;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>financial assistance under this subchapter shall not be suspended, except in emergency situations, unless the recipient agency has been given reasonable notice and opportunity to show cause why such action should not be taken; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>financial assistance under this subchapter shall not be terminated, an application for refunding shall not be denied, and <page identifier="/us/stat/95/505">95 STAT. 505</page>a suspension of financial assistance shall not be continued for longer than 30 days, unless the recipient has been afforded reasonable notice and opportunity for a full and fair hearing.</content></paragraph> </section> <section> <heading class="centered smallCaps">records and audits</heading><num value="647"><inline class="smallCaps">Sec</inline>. 647. </num><subsection class="inline"><num value="a">(a) </num><content>Each recipient of financial assistance under this <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9842">42 USC 9842</ref>.</p></sidenote>subchapter shall keep such records as the Secretary shall prescribe, including records which fully disclose the amount and disposition by such recipient of the proceeds of such financial’ assistance, the total cost of the project or undertaking in connection with which such financial assistance is given or used, the amount of that portion of the cost of the project or undertaking supplied by other sources, and such other records as will facilitate an effective audit.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, shall have access for the purpose of audit and examination to any books, documents, papers, and records of the recipients that are pertinent to the financial assistance received under this subchapter.</content> </subsection> </section> <section> <heading class="centered smallCaps">technical assistance and training</heading><num value="648"><inline class="smallCaps">Sec</inline>. 648. </num><content>The Secretary may provide, directly or through grants or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9843">42 USC 9843</ref>.</p></sidenote>other arrangements (1) technical assistance to communities in developing, conducting, and administering programs under this subchapter; and (2) training for specialized or other personnel needed in connection with Head Start programs.</content> </section> <section> <heading class="centered smallCaps">research, demonstration, and pilot projects</heading><num value="649"><inline class="smallCaps">Sec</inline>. 649. </num><subsection class="inline"><num value="a">(a) </num><content>The Secretary may provide financial assistance <sidenote><p class="indent0 firstIndent0 fontsize8">Grants and contracts.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9844">42 USC 9844</ref>.</p></sidenote>through grants or contracts for research, demonstration, or pilot projects conducted by public or private agencies which are designed to test or assist in the development of new approaches or methods that will aid in overcoming special problems or otherwise in furthering the purposes of this subchapter.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The Secretary shall establish an overall plan to govern the approval of research, demonstration, or pilot projects and the use of all research authority under this subchapter. Such plan shall set forth specific objectives to be achieved and priorities among such objectives.</content> </subsection> </section> <section> <heading class="centered smallCaps">announcement of research, demonstration, and pilot projects contracts</heading><num value="650"><inline class="smallCaps">Sec</inline>. 650. </num><subsection class="inline"><num value="a">(a) </num><chapeau>The Secretary shall make a public announcement <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9845">42 USC 9845</ref>.</p></sidenote>concerning—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the title, purpose, intended completion date, identity of the grantee or contractor, and proposed cost of any grant or contract with a private or non-Federal public agency or organization for any research, demonstration, or pilot project under this subchapter; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>the results, findings, data, or recommendations made or reported as a result of such activities.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The public announcements required by subsection (a)(1) shall be made within 30 days of making such grants or contracts, and the public announcements required by subsection (a)(2) shall be made within 90 days of the receipt of such results.</content> </subsection> <page identifier="/us/stat/95/506">95 STAT. 506</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The Secretary shall take necessary action to assure that all studies, proposals, and data produced or developed with Federal funds employed under this subchapter shall become the property of the United States.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>The Secretary shall publish summaries of the results of activities carried out pursuant to this subchapter not later than 90 days <sidenote><p class="indent0 firstIndent0 fontsize8">Report to congressional committees.</p></sidenote>after the completion thereof. The Secretary shall submit to the appropriate committees of the Congress copies of all such summaries.</content> </subsection> </section> <section> <heading class="centered smallCaps">evaluation</heading><num value="651"><inline class="smallCaps">Sec</inline>. 651. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Grants and contracts.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9846">42 USC 9846</ref>.</p></sidenote> <content class="inline">The Secretary shall provide, directly or through grants or contracts, for the continuing evaluation of programs under this subchapter, including evaluations that measure and evaluate the impact of programs authorized by this subchapter, in order to determine their effectiveness in achieving stated goals, their impact on related programs, and their structure and mechanisms for delivery of services, including, where appropriate, comparisons with appropriate control groups composed of persons who have not participated in such programs. Evaluations shall be conducted by persons not directly involved in the administration of the program or project operation.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The Secretary shall operate the programs and projects covered by this subchapter in accordance with Head Start performance standards. Any revisions in such standards shall result in standards which are no less comprehensive than those in effect on the date of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2701">42 USC 2701 note</ref>.</p></sidenote>the enactment of the Economic Opportunity Amendments of 1978. The extent to which such standards have been met shall be considered in deciding whether to renew or supplement financial assistance authorized under this subchapter.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><content>In carrying out evaluations under this subchapter, the Secretary shall establish working relationships with the faculties of colleges or universities located in the area in which any such evaluation is being conducted, unless there is no such college or university willing and able to participate in the evaluation. For purposes of the preceding sentence, for any single evaluation, areas in which such working relationships are established may not be larger than 3 contiguous States.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>In carrying out evaluations under this subchapter, the Secretary may require Head Start agencies to provide for independent evaluations.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>In carrying out evaluations under this subchapter, the Secretary shall, whenever feasible, arrange to obtain the specific views of persons participating in and served by programs and projects assisted under this subchapter about such programs and projects.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>The Secretary shall publish the results of evaluative research and summaries of evaluations of program and project impact and <sidenote><p class="indent0 firstIndent0 fontsize8">Report to congressional committees.</p></sidenote>effectiveness not later than 90 days after the completion thereof. The Secretary shall submit to the appropriate committees of the Congress copies of all such research studies and evaluation summaries.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>The Secretary shall take the necessary action to assure that all studies, evaluations, proposals, and data produced or developed with assistance under this subchapter shall become the property of the United States.</content> </subsection> </section> <section> <heading class="centered smallCaps">poverty line</heading><num value="652"><inline class="smallCaps">Sec</inline>. 652. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9847">42 USC 9847</ref>.</p></sidenote> <content class="inline">The Secretary shall revise annually (or at any shorter interval the Secretary deems feasible and desirable) a poverty line <page identifier="/us/stat/95/507">95 STAT. 507</page>which, except as provided in section 645, shall be used as a criterion of eligibility for participation in Head Start programs.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The revision required by subsection (a) shall be accomplished by multiplying the official poverty line (as defined by the Office of Management and Budget) by the percentage change in the Consumer Price Index during the annual or other interval immediately preceding the time at which the revision is made.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Revisions required by subsection (a) shall be made and issued not more than 30 days after the date on which the necessary Consumer Price Index data become available.</content> </subsection> </section> <section> <heading class="centered smallCaps">comparability of wages</heading><num value="653"><inline class="smallCaps">Sec</inline>. 653. </num><content>The Secretary shall take such action as may be necessary <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9848">42 USC 9848</ref>.</p></sidenote>to assure that persons employed in carrying out programs financed under this subchapter shall not receive compensation at a rate which is (1) in excess of the average rate of compensation paid in the area where the program is carried out to a substantial number of the persons providing substantially comparable services, or in excess of the average rate of compensation paid to a substantial number of the persons providing substantially comparable services in the area of the person’s immediately preceding employment, whichever is higher; or (2) less than the minimum wage rate prescribed in section 6(a)(1) of the Fair Labor Standards Act of 1938. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s206">29 USC 206</ref>.</p></sidenote></content> </section> <section> <heading class="centered smallCaps">nondiscrimination provisions</heading><num value="654"><inline class="smallCaps">Sec</inline>. 654. </num><subsection class="inline"><num value="a">(a) </num><content>The Secretary shall not provide financial assistance for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9849">42 USC 9849</ref>.</p></sidenote>any program, project, or activity under this subchapter unless the grant or contract with respect thereto specifically provides that no person with responsibilities in the operation thereof will discriminate with respect to any such program, project, or activity because of race, creed, color, national origin, sex, political affiliation, or beliefs.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>No person in the United States shall on the ground of sex be excluded from participation in, be denied the benefits of, be subjected to discrimination under, or be denied employment in connection with any program or activity receiving assistance under this subchapter. The Secretary shall enforce the provisions of the preceding sentence in accordance with section 602 of the Civil Rights Act of 1964. Section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2000d–1/2000d–2">42 USC 2000d–1, 2000d–2</ref>.</p></sidenote>603 of such Act shall apply with respect to any action taken by the Secretary to enforce such sentence. This section shall not be construed as affecting any other legal remedy that a person may have if such person is excluded from participation in, denied the benefits of, subjected to discrimination under, or denied employment in connection with, any program, project, or activity receiving assistance under this subchapter.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The Secretary shall not provide financial assistance for any program, project, or activity under this subchapter unless the grant or contract relating to the financial assistance specifically provides that no person with responsibilities in the operation of the program, project, or activity will discriminate against any individual because of a handicapping condition in violation of section 504 of the Rehabilitation Act of 1973. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s794">29 USC 794</ref>.</p></sidenote></content> </subsection> </section> <section> <heading class="centered smallCaps">limitation with respect to certain unlawful activities</heading><num value="655"><inline class="smallCaps">Sec</inline>. 655. </num><content>No individual employed or assigned by any Head start <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9850">42 USC 9850</ref>.</p></sidenote>agency or other agency assisted under this subchapter shall, pursu-<page identifier="/us/stat/95/508">95 STAT. 508</page>ant to or during the performance of services rendered in connection with any program or activity conducted or assisted under this subchapter by such Head Start agency or such other agency, plan, initiate, participate in, or otherwise aid or assist in the conduct of any unlawful demonstration, rioting, or civil disturbance.</content> </section> <section> <heading class="centered smallCaps">political activities</heading><num value="656"><inline class="smallCaps">Sec</inline>. 656. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9851">42 USC 9851</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s1501">5 USC 1501 <i>et seq</i></ref>.</p></sidenote> <content class="inline">For purposes of chapter 15 of title 5, United States Code, any agency which assumes responsibility for planning, developing, and coordinating Head Start programs and receives assistance under this subchapter shall be deemed to be a State or local agency. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s1502">5 USC 1502</ref>.</p></sidenote>For purposes of clauses (1) and (2) of section 1502(a) of such title, any agency receiving assistance under this subchapter shall be deemed to be a State or local agency.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Programs assisted under this subchapter shall not be carried on in a manner involving the use of program funds, the provision of services, or the employment or assignment of personnel in a manner supporting or resulting in the identification of such programs with (1) any partisan or nonpartisan political activity or any other political activity associated with a candidate, or contending faction or group, in an election for public or party office; (2) any activity to provide voters or prospective voters with transportation to the polls or similar assistance in connection with any such election; or (3) any voter registration activity. The Secretary, after consultation with the Office of Personnel Management, shall issue rules and regulations to provide for the enforcement of this section, which shall include provisions for summary suspension of assistance or other action necessary to permit enforcement on an emergency basis.</content> </subsection> </section> <section> <heading class="centered smallCaps">advance funding</heading><num value="657"><inline class="smallCaps">Sec</inline>. 657. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9852">42 USC 9852</ref>.</p></sidenote> <content class="inline">For the purpose of affording adequate notice of funding available under this subchapter, appropriations for carrying out this subchapter are authorized to be included in an appropriation Act for the fiscal year preceding the fiscal year for which they are available for obligation.</content> </section> </subchapter> <subchapter><num value="C">Subchapter C—</num><heading><sidenote><p class="indent0 firstIndent0 fontsize8">Follow Through Act.</p></sidenote>Follow Through Programs</heading> <section> <heading class="centered smallCaps">short title</heading><num value="661"><inline class="smallCaps">Sec</inline>. 661. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9801">42 USC 9801 note</ref>.</p></sidenote> <content class="inline">This subchapter may be cited as the “<shortTitle role="subchapter">Follow Through Act</shortTitle>”.</content> </section> <section> <heading class="centered smallCaps">financial assistance for follow through programs</heading><num value="662"><inline class="smallCaps">Sec</inline>. 662. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9861">42 USC 9861</ref>.</p></sidenote> <content class="inline">The Secretary of Education (hereinafter in this subchapter referred to as the “Secretary”) is authorized to provide financial assistance in the form of grants to local educational agencies, combinations of such agencies, and, as provided in subsection (b), any other public or appropriate nonprofit private agencies, organizations, and institutions for the purpose of carrying out Follow Through programs focused primarily on children from low-income families in kindergarten and primary grades, including such children enrolled in private nonprofit elementary schools, who were previously enrolled in Head Start or similar programs. Other children in kindergarten and primary grades, including such other children enrolled in private nonprofit elementary schools, who were previously enrolled m preschool programs of a compensatory nature which received <page identifier="/us/stat/95/509">95 STAT. 509</page>Federal financial assistance may participate in such Follow Through programs.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Whenever the Secretary determines—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>that a local educational agency receiving assistance under subsection (a) is unable or unwilling to include in a Follow Through program children enrolled in nonprofit private schools who would otherwise be eligible to participate therein; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>that it is otherwise necessary in order to accomplish the purposes of this section;</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">the Secretary may provide financial assistance for the purpose of carrying out a Follow Through program to any other public or appropriate nonprofit private agency, organization, or institution.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Programs to be assisted under this section shall provide such comprehensive educational, health, nutritional, social, and other services as will aid in the continued development of children described in subsection (a) to their full potential. Such projects shall provide for the direct participation of the parents of such children in the development, conduct, and overall direction of the program at the local level. If the Secretary determines that participation in the project of children who are not from low-income families will serve to carry out the purposes of this section, the Secretary may provide for the inclusion of such children from non-low-income families, but only to the extent that their participation will not dilute the effectiveness of the services designed for children described in subsection (a).</content> </subsection> </section> <subparagraph class="firstIndent1 fontsize10"> <heading class="centered smallCaps">authorization of appropriations</heading><num value="663"><inline class="smallCaps">Sec</inline>. 663. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>There is authorized to be appropriated for carrying <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9862">42 USC 9862</ref>.</p></sidenote>out the purposes of this subchapter $44,300,000 for fiscal year 1982, $22,150,000 for fiscal year 1983, and $14,767,000 for fiscal year 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Funds appropriated under this section for fiscal years 1982 and 1983 shall remain available for obligation and expenditure during the fiscal year succeeding the fiscal year for which they are appropriated.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Financial assistance extended under this subchapter for a Follow Through program shall not exceed 80 percent of the approved costs of the assisted program or activities, except that the Secretary may approve assistance in excess of such percentage if the Secretary determines, in accordance with regulations establishing objective criteria, that such action is required in furtherance of the purposes of this subchapter. Non-Federal contributions may be in cash or in kind, fairly evaluated, including plant, equipment, or services. The Secretary shall not require non-Federal contributions in excess of 20 percent of the approved costs of programs or activities assisted under this subchapter.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>No project shall be approved for assistance under this subchapter unless the Secretary is satisfied that the services to be provided under such project will be in addition to, and not in substitution for, services previously provided without Federal assistance. The requirement imposed by the preceding sentence shall be subject to such regulations as the Secretary may adopt.</content> </subsection> </subparagraph> <section> <heading class="centered smallCaps">research, demonstration, and pilot projects</heading><num value="664"><inline class="smallCaps">Sec</inline>. 664. </num><subsection class="inline"><num value="a">(a) </num><content>The Secretary may provide financial assistance <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9863">42 USC 9863</ref>.</p></sidenote>through grants or contracts for research, demonstration, or pilot projects conducted by public and private agencies which are designed to test or assist in the development of new approaches or methods <page identifier="/us/stat/95/510">95 STAT. 510</page>that will aid in overcoming special problems or in otherwise furthering the purposes of this subchapter.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The Secretary shall establish an overall plan to govern the approval of research, demonstration, or pilot projects and the use of all research authority under this subchapter. Such plan shall set forth specific objectives to be achieved and priorities among such objectives.</content> </subsection> </section> <section> <heading class="centered smallCaps">announcement of research, demonstration, and pilot project contracts</heading><num value="665"><inline class="smallCaps">Sec</inline>. 665. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9864">42 USC 9864</ref>.</p></sidenote> <chapeau class="inline">The Secretary shall make a public announcement concerning—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the title, purpose, intended completion date, identity of the grantee or contractor, and proposed cost of any grant or contract with a private or non-Federal public agency or organization for any research, demonstration, or pilot project under this subchapter; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>the results, findings, data, or recommendations made or reported as a result of such activities.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The public announcements required by subsection (a)(1) shall be made not later than 30 days after making such grants or contracts, and the public announcements required by subsection (a)(2) shall be made not later than 90 days after the receipt of such results.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The Secretary shall take necessary action to assure that all studies, proposals, and data produced or developed with Federal funds employed under this subchapter shall become the property of the United States.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Summaries, submittal to congressional committees.</p></sidenote> <content class="inline">The Secretary shall publish summaries of the results of activities carried out pursuant to this subchapter not later than 90 days after the completion thereof. The Secretary shall submit to the appropriate committees of the Congress copies of all such summaries.</content> </subsection> </section> <section> <heading class="centered smallCaps">evaluation</heading><num value="666"><inline class="smallCaps">Sec</inline>. 666. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9865">42 USC 9865</ref>.</p></sidenote> <content class="inline">The Secretary shall provide, directly or through grants or contracts, for the continuing evaluation of programs under this subchapter, including evaluations that measure and evaluate the impact of programs authorized by this subchapter, in order to determine their effectiveness in achieving stated goals, their impact on related programs, and their structure and mechanism for delivery of services, including, where appropriate, comparisons with appropriate control groups composed of persons who have not participated in such programs. Evaluations shall be conducted by persons not directly involved in the administration of the program or project.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The Secretary shall develop and publish general standards for evaluation of program and project effectiveness in achieving the objectives of this subchapter. The extent to which such standards have been met shall be considered in deciding whether to renew or supplement financial assistance authorized under this subchapter.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>In carrying out evaluations under this subchapter, the Secretary shall, whenever feasible, arrange to obtain the specific views of persons participating in and served by programs and projects assisted under this subchapter about such programs and projects.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Submittal to congressional committees.</p></sidenote> <content class="inline">The Secretary shall publish the results of evaluative research and summaries of evaluations of program and project impact and effectiveness not later than 90 days after the completion thereof. The <page identifier="/us/stat/95/511">95 STAT. 511</page>Secretary shall submit to the appropriate committees of the Congress copies of all such research studies and evaluation summaries.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>The Secretary shall take the necessary action to assure that all studies, evaluations, proposals, and data produced or developed with assistance under this section become the property of the United States.</content> </subsection> </section> <section> <heading class="centered smallCaps">technical assistance and training</heading><num value="667"><inline class="smallCaps">Sec</inline>. 667. </num><content>The Secretary may provide, directly or through grants or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9866">42 USC 9866</ref>.</p></sidenote>other appropriate arrangements (1) technical assistance to Follow Through programs in developing, conducting, and administering programs under this subchapter; and (2) training for specialized or other personnel which is needed in connection with Follow Through programs.</content> </section> <section> <heading class="centered smallCaps">special conditions</heading><num value="668"><inline class="smallCaps">Sec</inline>. 668. </num><subsection class="inline"><num value="a">(a) </num><content>Recipients of financial assistance under this subchapter <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9867">42 USC 9867</ref>.</p></sidenote>shall provide maximum employment opportunities for residents of the area to be served, and to parents of children who are participating in projects assisted under this subchapter.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Financial assistance under this subchapter shall not be suspended for failure to comply with applicable terms and conditions, except in emergency situations, nor shall an application for refunding be denied, unless the recipient agency has been given reasonable notice and opportunity to show cause why such action should not be taken.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Financial assistance under this subchapter shall not be terminated for failure to comply with applicable terms and conditions unless the recipient has been afforded reasonable notice and opportunity for a full and fair hearing.</content> </subsection> </section> <section> <heading class="centered smallCaps">applicability of provisions of subchapter b</heading><num value="669"><inline class="smallCaps">Sec</inline>. 669. </num><content>The provisions of sections 637 (other than section 637(1)), <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9868">42 USC 9868</ref>.</p></sidenote>653, 654, 655, 656, and 657 shall apply to the administration of this subchapter.</content> </section> <section> <heading class="centered smallCaps">repealer</heading><num value="670"><inline class="smallCaps">Sec</inline>. 670. </num><content>Effective October 1, 1984, the provisions of this subchapter <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 508.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9861/9801">42 USC 9861 note, 9801 note</ref>.</p></sidenote>are repealed.</content> </section> </subchapter> </chapter> </subtitle> <subtitle><num value="B">Subtitle B— </num><sidenote><p class="indent0 firstIndent0 fontsize8">Community Services Block Grant Act.</p></sidenote> <heading>Community Services Block Grant Program </heading> <section> <heading class="centered smallCaps">short title</heading><num value="671"><inline class="smallCaps">Sec</inline>. 671. </num><content>This subtitle may be cited as the “<shortTitle role="subtitle">Community Services <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9901">42 USC 9901 note</ref>.</p></sidenote>Block Grant Act</shortTitle>”.</content> </section> <section> <heading class="centered smallCaps">community services grants authorized</heading><num value="672"><inline class="smallCaps">Sec</inline>. 672. </num><subsection class="inline"><num value="a">(a) </num><content>The Secretary is authorized to make grants in <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9901">42 USC 9901</ref>.</p></sidenote>accordance with the provisions of this subtitle, to States to ameliorate the causes of poverty in communities within the State.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>There is authorized to be appropriated $389,375,000 for the fiscal year 1982 and for each of the 4 succeeding fiscal years to carry out the provisions of this subtitle.</content> </subsection> </section> <section> <heading class="centered smallCaps">definitions</heading><num value="673"><inline class="smallCaps">Sec</inline>. 673. </num><chapeau>For purposes of this subtitle: <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9902">42 USC 9902</ref>.</p></sidenote></chapeau> <page identifier="/us/stat/95/512">95 STAT. 512</page> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>The term “eligible entity” means any organization which was officially designated as a community action agency or a community action program under the provisions of section 210 of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2790">42 USC 2790</ref>.</p></sidenote>the Economic Opportunity Act of 1964 for fiscal year 1981, unless such community action agency or a community action program lost its designation under section 210 of such Act as a result of a failure to comply with the provisions of such Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The term “poverty line” means the official poverty line established by the Director of the Office of Management and Budget. The Secretary shall revise the poverty line annually (or at any shorter interval the Secretary deems feasible and desirable) which shall be used as a criterion of eligibility in community service block grant programs. The required revision shall be accomplished by multiplying the official poverty line by the percentage change in the Consumer Price Index during the annual or other interval immediately preceding the time at which the revision is made.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The term “Secretary” means the Secretary of Health and Human Services.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>The term “State” means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands.</content></paragraph> </section> <section> <heading class="centered smallCaps">state allocations</heading><num value="674"><inline class="smallCaps">Sec</inline>. 674. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9903">42 USC 9903</ref>.</p></sidenote> <chapeau class="inline">The Secretary shall from the amount appropriated under section 672 for each fiscal year which remains after—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the Secretary makes the apportionment required in subsection (b)(1); and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>the Secretary determines the amount necessary for the purposes of section 681(b);</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">allot to each State an amount which bears the same ratio to such remaining amount as the amount received by the State for fiscal year <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2808">42 USC 2808</ref>.</p></sidenote>1981 under section 221 of the Economic Opportunity Act of 1964 bore to the total amount received by all States for fiscal year 1981 under such part, except that no State shall receive less than one-quarter of 1 percent of the amount appropriated under section 672 for such fiscal year.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>For purposes of this subsection, the term “State” does not include Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall apportion one-half of 1 percent of the amount appropriated under section 672 for each fiscal year on the basis of need among Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Each jurisdiction to which paragraph (1) applies may receive grants under this subtitle upon an application submitted to the Secretary containing provisions which describe the programs for which assistance is sought under this subtitle, and which are consistent with the requirements of section 675.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>If, with respect to any State, the Secretary—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>receives a request from the governing body of an Indian tribe or tribal organization within the State that assistance under this subtitle be made directly to such tribe or organization; and</content></subparagraph> <page identifier="/us/stat/95/513">95 STAT. 513</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>determines that the members of such tribe or tribal organization would be better served by means of grants made directly to provide benefits under this subtitle;</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">the Secretary shall reserve from amounts which would otherwise be allotted to such State under this subtitle for the fiscal year the amount determined under paragraph (2).</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The Secretary shall reserve for the purpose of paragraph (1) from sums that would otherwise be allotted to such State not less than 100 percent of an amount which bears the same ratio to the State’s allotment for the fiscal year involved as the population of all eligible Indians for whom a determination under this paragraph has been made bears to the population of all individuals eligible for assistance under this subtitle in such State.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The sums reserved by the Secretary on the basis of a determination under this subsection shall be granted to the Indian tribe or tribal organization serving the individuals for whom such a determination has been made.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>In order for an Indian tribe or tribal organization to be eligible for an award for a fiscal year under this subsection, it shall submit to the Secretary a plan for such fiscal year which meets such criteria as the Secretary may prescribe by regulation.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>The terms “Indian tribe” and “tribal organization” mean those <sidenote><p class="indent0 firstIndent0 fontsize8">“Indian tribe,” and “tribal organization.”</p></sidenote>tribes, bands, or other organized groups of Indians recognized in the State in which they reside or considered by the Secretary of the Interior to be an Indian tribe or an Indian organization for any purpose.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">applications and requirements</heading><num value="675"><inline class="smallCaps">Sec</inline>. 675. </num><subsection class="inline"><num value="a">(a) </num><content>Each State desiring to receive an allotment for a fiscal <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9904">42 USC 9904</ref>.</p></sidenote>year under this subtitle shall submit an application to the Secretary. Each such application shall be in such form as the Secretary shall require. Each such application shall contain assurances by the chief executive officer of the State that the State will comply with subsection (b) and will meet the conditions enumerated in subsection (c).</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>After the expiration of the first fiscal year in which a State received funds under this subtitle, no funds shall be allotted to such State for any fiscal year under this subtitle unless the legislature of the State conducts public hearings on the proposed use and distribution of funds to be provided under this subtitle for such fiscal year.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>As part of the annual application required by subsection (a), the chief executive officer of each State shall certify that the State agrees to—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>use the funds available under this subtitle—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>to provide a range of services and activities having a measurable and potentially major impact on causes of poverty in the community or those areas of the community where poverty is a particularly acute problem;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><chapeau>to provide activities designed to assist low-income participants including the elderly poor—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>to secure and retain meaningful employment;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>to attain an adequate education;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>to make better use of available income;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">(iv) </num><content>to obtain and maintain adequate housing and a suitable living environment;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="v">(v) </num><content>to obtain emergency assistance through loans or grants to meet immediate and urgent individual and family needs, including the need for health services, <page identifier="/us/stat/95/514">95 STAT. 514</page>nutritious food, housing, and employment-related assistance;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="vi">(vi) </num><content>to remove obstacles and solve problems which block the achievement of self-sufficiency;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="vii">(vii) </num><content>to achieve greater participation in the affairs of the community; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="viii">(viii) </num><content>to make more effective use of other programs related to the purposes of this subtitle;</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>to provide on an emergency basis for the provision of such supplies and services, nutritious foodstuffs, and related services, as may be necessary to counteract conditions of starvation and malnutrition among the poor;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>to coordinate and establish linkages between governmental and other social services programs to assure the effective delivery of such services to low-income individuals; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>to encourage the use of entities in the private sector of the community in efforts to ameliorate poverty in the community;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num><clause class="inline"><num value="i">(i) </num><content>use, for fiscal year 1982 only, not less than 90 percent of the funds allotted to the State under section 674 to make grants to use for the purposes described in clause (1) to eligible entities (as defined in section 673(1)) or to organizations serving seasonal or migrant farmworkers; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>use, for fiscal year 1983 and for each subsequent fiscal year, not less than 90 percent of the funds allotted to the State under section 674 to make grants to political subdivisions of the State for the political subdivisions to use for the purposes described in clause (1) directly or to nonprofit private community organizations which have a board which meets the requirements of clause (3), or to migrant and seasonal farm worker organizations; and</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>provide assurances that the State will not expend more than 5 percent of its allotment under section 674 for administrative expenses at the State level;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>provide assurances that, in the case of a community action agency or nonprofit private organization, each board will be constituted so as to assure that (A) one-third of the members of the board are elected public officials, currently holding office, or their representatives, except that if the number of elected officials reasonably available and willing to serve is less than one-third of the membership of the board, membership on the board of appointive public officials may be counted in meeting such one-third requirement; (B) at least one-third of the members are persons chosen in accordance with democratic selection procedures adequate to assure that they are representative of the poor in the area served; and (C) the remainder of the members are officials or members of business, industry, labor, religious, welfare, education, or other major groups and interests in the community;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>give special consideration in the designation of local community action agencies under this subtitle to any community action agency which is receiving funds under any Federal antipoverty program on the date of the enactment of this Act, except that (A) the State shall, before giving such special consideration, determine that the agency involved meets program and fiscal requirements established by the State; and (B) if there is no such agency because of any change in the assistance furnished to programs for economically disadvantaged persons, the State <page identifier="/us/stat/95/515">95 STAT. 515</page>shall give special consideration in the designation of community action agencies to any successor agency which is operated in substantially the same manner as the predecessor agency which did receive funds in the fiscal year preceding the fiscal year for which the determination is made;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>provide assurances that the State may transfer funds, but not to exceed 5 percent of its allotment under section 674, for the provisions set forth in this subtitle to services under the Older Americans Act of 1965, the Head Start program under subchapter <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3001">42 USC 3001 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 499.</p><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 893.</p></sidenote>B of chapter 8 of subtitle A of this title, or the energy crisis intervention program under title XXVI of this Act (relating to low-income home energy assistance);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>prohibit any political activities in accordance with subsection (e);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>prohibit any activities to provide voters and prospective voters with transportation to the polls or provide similar assistance in connection with an election or any voter registration activity;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>provide for coordination between antipoverty programs in each community, where appropriate, with emergency energy crisis intervention programs under title XXVI of this Act (relating to low-income home energy assistance) conducted in such community;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">(9) </num><content>provide that fiscal control and fund accounting procedures will be established as may be necessary to assure the proper disbursal of and accounting for Federal funds paid to the State under this subtitle, including procedures for monitoring the assistance provided under this subtitle, and provide that at least every year each State shall prepare, in accordance with subsection (f), an audit of its expenditures of amounts received under this subtitle and amounts transferred to carry out the purposes of this subtitle; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">(10) </num><content>permit and cooperate with Federal investigations undertaken in accordance with section 679.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">The Secretary may not prescribe the manner in which the States will comply with the provisions of this subsection.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num><content>In addition to the requirements of subsection (c), the chief executive officer of each State shall prepare and furnish to the Secretary a plan which contains provisions describing how the State will carry out the assurances contained in subsection (c). The chief executive officer of each State may revise any plan prepared under this paragraph and shall furnish the revised plan to the Secretary.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Each plan prepared under paragraph (1) shall be made available for public inspection within the State in such a manner as will facilitate review of, and comment on, the plan.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>For purposes of chapter 15 of title 5, United States Code, any <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s1501">5 USC 1501 <i>et seq</i></ref>.</p></sidenote>nonprofit private organization receiving assistance under this subtitle which has responsibility for planning, developing, and coordinating community antipoverty programs shall be deemed to be a State or local agency. For purposes of clauses (1) and (2) of section 1502(a) of such title, any such organization receiving assistance under this <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s1502">5 USC 1502</ref>.</p></sidenote>subtitle shall be deemed to be a State or local agency.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>Each audit required by subsection (c)(9) shall be conducted by an entity independent of any agency administering activities or services carried out under this subtitle and shall be conducted in accordance with generally accepted accounting principles. Within 30 days after the completion of each audit, the chief executive officer of the State <page identifier="/us/stat/95/516">95 STAT. 516</page>shall submit a copy of such audit to the legislature of the State and to the Secretary.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>The State shall repay to the United States amounts found not to have been expended in accordance with this subtitle or the Secretary may offset such amounts against any other amount to which the State is or may become entitled under this subtitle.</content> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><content>The Comptroller General of the United States shall, from time to time, evaluate the expenditures by States of grants under this subtitle in order to assure that expenditures are consistent with the provisions of this subtitle and to determine the effectiveness of the State in accomplishing the purposes of this subtitle.</content> </subsection> </section> <section> <heading class="centered smallCaps">administration</heading><num value="676"><inline class="smallCaps">Sec</inline>. 676. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Office of Community Services.</p><p class="indent0 firstIndent0 fontsize8">Establishment.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9905">42 USC 9905</ref>.</p></sidenote> <content class="inline">There is established in the Department of Health and Human Services an Office of Community Services. The Office shall be headed by a Director.</content> </subsection> <paragraph class="firstIndent1 fontsize10"><num value="b">(b) </num><content>The Secretary shall carry out his functions under this subtitle through the Office of Community Services established in subsection (a).</content></paragraph> </section> <section> <heading class="centered smallCaps">nondiscrimination provisions</heading><num value="677"><inline class="smallCaps">Sec</inline>. 677. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9906">42 USC 9906</ref>.</p></sidenote> <content class="inline">No person shall on the ground of race, color, national origin, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity funded in whole or in part with funds made available under this subtitle. Any prohibition against discrimination on the basis of age <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s6101">42 USC 6101 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s794">29 USC 794</ref>.</p></sidenote>under the Age Discrimination Act of 1975 or with respect to an otherwise qualified handicapped individual as provided in section 504 of the Rehabilitation Act of 1973 shall also apply to any such program or activity.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Whenever the Secretary determines that a State that has received a payment under this subtitle has failed to comply with subsection (a) or an applicable regulation, he shall notify the chief executive officer of the State and shall request him to secure compliance. If within a reasonable period of time, not to exceed 60 days, the chief executive officer fails or refuses to secure compliance, the Secretary is authorized to (1) refer the matter to the Attorney General with a recommendation that an appropriate civil action be instituted; (2) exercise the powers and functions provided by title VI <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2000d">42 USC 2000d</ref>.</p></sidenote>of the Civil Rights Act of 1964, the Age Discrimination Act of 1975, or section 504 of the Rehabilitation Act of 1973, as may be applicable; or (3) take such other action as may be provided by law.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>When a matter is referred to the Attorney General pursuant to subsection (b), or whenever he has reason to believe that the State is engaged in a pattern or practice in violation of the provisions of this section, the Attorney General may bring a civil action in any appropriate United States district court for such relief as may be appropriate, including injunctive relief.</content> </subsection> </section> <section> <heading class="centered smallCaps">payments to states</heading><num value="678"><inline class="smallCaps">Sec</inline>. 678. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9907">42 USC 9907</ref>.</p></sidenote> <content class="inline">From its allotment under section 674, the Secretary shall make payments to each State in accordance with section 203 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4213), for use under this subtitle.</content> </subsection> <page identifier="/us/stat/95/517">95 STAT. 517</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Payments to a State from its allotment for any fiscal year shall be expended by the State in such fiscal year or in the succeeding fiscal year.</content> </subsection> </section> <section> <heading class="centered smallCaps">withholding</heading><num value="679"><inline class="smallCaps">Sec</inline>. 679. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall, after adequate notice and an <sidenote><p class="indent0 firstIndent0 fontsize8">Notice and hearing.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9908">42 USC 9908</ref>.</p></sidenote>opportunity for a hearing conducted within the affected State, withhold funds from any State which does not utilize its allotment substantially in accordance with the provisions of this subtitle and the assurances such State provided under section 675.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The Secretary shall respond in an expeditious and speedy manner to complaints of a substantial or serious nature that a State has failed to use funds in accordance with the provisions of this subtitle or the assurances provided by the State under section 675. For purposes of this paragraph, a violation of any one of the assurances contained in section 675(c) that constitutes a disregard of that assurance shall be considered a serious complaint.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall conduct in several States in each fiscal <sidenote><p class="indent0 firstIndent0 fontsize8">Investigations.</p></sidenote>year investigations of the use of funds received by the States under this subtitle in order to evaluate compliance with the provisions of this subtitle.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Whenever the Secretary determines that there is a pattern of complaints from any State in any fiscal year, he shall conduct an investigation of the use of funds received under this subtitle by such State in order to ensure compliance with the provisions of this subtitle.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The Comptroller General of the United States may conduct an investigation of the use of funds received under this subtitle by a State in order to ensure compliance with the provisions of this subtitle.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Pursuant to an investigation conducted under subsection (b), a State shall make appropriate books, documents, papers, and records available to the Secretary or the Comptroller General of the United States, or any of their duly authorized representatives, for examination, copying, or mechanical reproduction on or off the premises of the appropriate entity upon a reasonable request therefor.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>In conducting any investigation under subsection (b), the Secretary may not request any information not readily available to such State or require that any information be compiled, collected, or transmitted in any new form not already available.</content> </subsection> </section> <section> <heading class="centered smallCaps">limitation on use of grants for construction</heading><num value="680"><inline class="smallCaps">Sec</inline>. 680. </num><subsection class="inline"><num value="a">(a) </num><content>Except as provided in subsection (b), grants made <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9909">42 USC 9909</ref>.</p></sidenote>under this subtitle (other than amounts made available under section 681(b)) may not be used by the State, or by any other person with which the State makes arrangements to carry out the purposes of this subtitle, for the purchase or improvement of land, or the purchase, construction, or permanent improvement (other than low-cost residential weatherization or other energy-related home repairs) of any building or other facility.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The Secretary may waive the limitation contained in subsection (a) upon the State’s request for such a waiver if he finds that the request describes extraordinary circumstances to justify the purchase of land or the construction of facilities (or the making of permanent improvements) and that permitting the waiver will contribute to the State’s ability to carry out the purposes of this subtitle.</content> </subsection> </section> <page identifier="/us/stat/95/518">95 STAT. 518</page> <section> <heading class="centered smallCaps">discretionary authority of secretary</heading><num value="681"><inline class="smallCaps">Sec</inline>. 681. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9910">42 USC 9910</ref>.</p></sidenote> <chapeau class="inline">The Secretary is authorized, either directly or through grants, loans, or guarantees to States and public and other organizations and agencies, or contracts or jointly financed cooperative arrangements with States and public and other organizations and agencies, to provide for—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>training related to the purposes of this subtitle; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>ongoing activities of national or regional significance related to the purposes of this subtitle, including special emphasis programs for—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>special programs of assistance to private, locally initiated community development programs which sponsor enterprises providing employment and business development opportunities for low-income residents of the area;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Rural Development Loan Fund revolving loans and guarantees under subchapter A of chapter 8 of subtitle A of this title;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>community development credit union programs administered under subchapter A of chapter 8 of subtitle A of this <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 489.</p></sidenote>title;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>technical assistance and training programs in rural housing and community facilities development;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>assistance for migrants and seasonal farmworkers; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">(F) </num><content>national or regional programs designed to provide recreational activities for low-income youth.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Of the amounts appropriated under section 672(b) for any fiscal year, not more than 9 percent of such amounts shall be available to the Secretary for purposes of carrying out this section and subchapter A of chapter 8 of subtitle A of this title.</content> </subsection> </section> <section> <heading class="centered smallCaps">transition provisions</heading><num value="682"><inline class="smallCaps">Sec</inline>. 682. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9911">42 USC 9911</ref>.</p></sidenote> <content class="inline">The purpose of this section is to permit, for fiscal year 1982 only, States to choose to operate programs under the block grant established by this subtitle or to have the Secretary operate programs under the provisions of law repealed by section 683(a).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The Secretary shall carry out the provisions of this section through the Office of Community Services established in section 676(a).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Notwithstanding the provisions of section 683(a) or any other provision of law, a State may, for fiscal year 1982 only, make a determination that the State chooses not to operate programs under the block grant established by this subtitle. If the State makes such a determination, the State’s allotment under section 674 shall be used within the State by the Secretary to carry out programs (in accordance with paragraph (4)) under the provisions of law in effect on September 30, 1981, but repealed by section 683(a).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The provisions of paragraph (1) apply to the provisions of law referred to in such paragraph, regardless of whether there is a specific termination provision or other provision of law repealing or otherwise terminating any program subject to this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Each State which, pursuant to paragraph (1), determines to have the Secretary operate programs under the provisions of law in effect on September 30, 1981, but repealed by section 683(a), shall give notice to the Secretary of such determination. Such notice shall be submitted to the Secretary prior to the beginning of the first quarter of fiscal year 1982 and at least 30 days before the beginning of any <page identifier="/us/stat/95/519">95 STAT. 519</page>other quarter during such fiscal year. For purposes of this section, the quarters for fiscal year 1982 shall commence on October 1, January 1, April 1, and July 1 of fiscal year 1982.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>In any case in which the Secretary carries out programs under paragraph (1), the Secretary shall provide for the carrying out of such programs by making grants for such purpose to eligible entities (as defined in section 673(1)).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The Secretary shall provide such assistance to the States as the States may require in order to carry out the provisions of this section.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>The Secretary may reserve not more than 5 percent of any State’s allotment for administration of such State’s programs under the block grant established by this subtitle, if such State has made a determination that the State chooses not to operate programs under the block grant established by this subtitle, and the Secretary is carrying out such State’s programs under the provisions of law in effect on September 30, 1981.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Upon the enactment of this Act, the Director of the Office of Management and Budget is authorized to provide for termination of the affairs of the Community Services Administration. He shall provide for the transfer or other disposition of personnel, assets, liabilities, grants, contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, and other funds held, used, arising from, available to, or to be made available in connection with implementation of the authorities terminated by section 683(a) as necessary to effectuate the purposes of this subtitle.</content> </subsection> </section> <section> <heading class="centered smallCaps">repealer; reauthorization provisions; technical and conforming provisions</heading><num value="683"><inline class="smallCaps">Sec</inline>. 683. </num><subsection class="inline"><num value="a">(a) </num><content>Effective October 1, 1981, the Economic Opportunity <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9912">42 USC 9912</ref>.</p><p class="indent0 firstIndent0 fontsize8">Repeal.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2701">42 USC 2701</ref>.</p></sidenote>Act of 1964, other than titles VIE and X of such Act, is repealed.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>There is authorized to be appropriated such sums as may be necessary for each of the fiscal years 1982, 1983, and 1984, to carry out title VIII of the Economic Opportunity Act of 1964. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2991">42 USC 2991</ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><content>Any reference in any provision of law to the poverty line set forth in section 624 of the Economic Opportunity Act of 1964 shall be <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2971c">42 USC 2971c</ref>.</p></sidenote>construed to be a reference to the poverty line defined in section 673(2) of this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Any reference in any provision of law to any community action agency designated under title II of the Economic Opportunity Act of 1964 shall be construed to be a reference to private nonprofit community organizations eligible to receive funds under this subtitle.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>No action or other proceeding commenced by or against any officer in the official capacity of such individual as an officer of any agency administering the Act repealed by subsection (a) of this section shall abate by reason of the enactment of this Act.</content></paragraph> </subsection> </section> </subtitle> <num value="VII">TITLE VII—</num><heading>EMPLOYMENT PROGRAMS</heading> <section> <heading class="centered smallCaps">comprehensive employment and training act</heading><num value="701"><inline class="smallCaps">Sec</inline>. 701. </num><subsection class="inline"><num value="a">(a) </num><content>Section 112 of the Comprehensive Employment and Training Act is amended to read as follows: <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s822">29 USC 822</ref>.</p></sidenote> <quotedContent> <section> <heading class="centered smallCaps">“authorization of appropriations</heading><num value="112">“<inline class="smallCaps">Sec</inline>. 112. </num><subsection class="inline"><num value="a">(a) </num><chapeau>There are authorized to be appropriated for fiscal year 1982 for the purpose of carrying out this Act—</chapeau> <page identifier="/us/stat/95/520">95 STAT. 520</page> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s841/846/852">29 USC 841, 846, 852</ref>.</p></sidenote> <content class="inline">$1,430,775,000 for carrying out parts A, B, and C of title 11;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s871/891">29 USC 871, 891</ref>.</p></sidenote> <content class="inline">$219,015,000 for carrying out titles III and V, of which not more than $3 million may be transferred to the National Occupational Information Coordinating Committee established pursuant to section 161(b) of the Vocational Education Act of 1963 for purposes described in section 315 of this Act;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s893">29 USC 893</ref>.</p></sidenote> <content class="inline">$576,200,000 for carrying out part A of title IV;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s923">29 USC 923</ref>.</p></sidenote> <content class="inline">$628,263,000 for carrying out part B of title IV;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s942">29 USC 942</ref>.</p></sidenote> <content class="inline">$766,100,000 for carrying out part C of title IV;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s981">29 USC 981</ref>.</p></sidenote> <content class="inline">$274,700,000 for carrying out title VII; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>$75,462,000 for the expenses of the Department of Labor in administering this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>For the purpose of affording adequate notice of funding available under this Act, appropriations under this Act are authorized to be included in an appropriation Act for the fiscal year preceding the fiscal year for which they are first available for obligation.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>In order to effect a transition to the advance funding method of timing appropriation action, the provisions of this subsection shall apply notwithstanding that its initial application will result in the enactment in the same year (whether in the same appropriation Act or otherwise) of two separate appropriations, one for the then current fiscal year and one for the succeeding fiscal year.”.</content></paragraph> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s842">29 USC 842</ref>.</p></sidenote> <content class="inline">The matter preceding clause (i) of section 202(a)(2)(A) of the Act is amended by striking out “<quotedText>Eighty-five percent</quotedText>” and inserting in lieu thereof “<quotedText>Eighty-six and one-half percent</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 202 of the Comprehensive Employment and Training Act is amended by adding the following subsection at the end thereof: <quotedContent> <subsection class="indent0 fontsize10"><num value="h">“(h) </num><content>Notwithstanding the provisions of subsections (b), (c), (d), and (e) of this section, not more than 10 ½ percent of the amounts available for this title shall be available for the purposes specified in such subsections. The Governor of each State may in his own discretion determine the amount of funds to be used for each of the functions specified in such subsections but not to exceed the amounts specified therein.”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s909">29 USC 909</ref>.</p></sidenote> <content class="inline">Section 433(a)(1) of the Comprehensive Employment and Training Act is amended by striking out “<quotedText>75</quotedText>” and inserting in lieu thereof “<quotedText>85</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s912">29 USC 912</ref>.</p></sidenote> <content class="inline">Section 436(a)(2) of such Act is amended by striking out “<quotedText>, but services to youth under that title shall not be reduced because of the availability of financial assistance under this subpart</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><paragraph class="inline"><num value="1">(1) </num><content>Title IV of the Comprehensive Employment and Training Act is amended by inserting after section 402 the following new section: <quotedContent> <heading class="centered smallCaps">“transferability of funds</heading><num value="403">“<inline class="smallCaps">Sec</inline>. 403. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s892a">29 USC 892a</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s893">29 USC 893</ref>.</p></sidenote> <content class="inline">Twenty percent of the funds available to a prime sponsor in fiscal year 1982 to carry out part A of this title may, at the prime sponsor’s discretion, be used in accordance with the provisions <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s942">29 USC 942</ref>.</p></sidenote>of part C and 20 percent of the funds available to a prime sponsor in fiscal year 1982 to carry out part C of this title may, at the prime sponsor’s discretion, be used in accordance with the provisions of part A.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>Funds available to a prime sponsor under subpart 2 of part A of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s899">29 USC 899</ref>.</p></sidenote>this title may, at the prime sponsor’s discretion, be used in accordance with the provisions of subpart 3 of part A of this title. Any funds allocated under subpart 2 of part A of this title which are reallocated <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s818">29 USC 818</ref>.</p></sidenote>by the Secretary pursuant to section 108 may, in the Secretary’s <page identifier="/us/stat/95/521">95 STAT. 521</page>discretion, be allocated for use in accordance with the provisions of subpart 3 of part A of this title.”. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s907">29 USC 907</ref>.</p></sidenote></content> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The table of contents of such Act is amended by inserting after the item pertaining to section 402 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“403.</designator> <label>Transferability of funds.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><chapeau>Section 702 of the Comprehensive Employment and Training Act <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s982">29 USC 982</ref>.</p></sidenote>is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>Eighty-five</quotedText>” in subsection (b)(1) and inserting in lieu thereof “<quotedText>Ninety-five</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out paragraph (2) and inserting in lieu thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Funds available to prime sponsors under this title may be used to promote coordination with economic development activities supported by Federal, State, or local funds. Funds used for such coordinated activities shall not be taken into account in the computation of cost per participant or cost per placement for purposes of program evaluation.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>If, during the second session of the 97th Congress, neither the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s822">29 USC 822 note</ref>.</p></sidenote>House of Representatives nor the Senate have passed legislation replacing or amending the Comprehensive Emplo3mient and Training Act by September 10, 1982, the provisions of section 112 of that Act (relating to authorization of appropriations) applicable to fiscal <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 519.</p></sidenote>1982 shall be applicable to fiscal 1983.</content> </subsection> </section> <section> <heading class="centered smallCaps">the wagner-peyser act</heading><num value="702"><inline class="smallCaps">Sec</inline>. 702. </num><content>Section 5(b) of the Act of June 6, 1933 (commonly known as the Wagner-Peyser Act), is amended by inserting before the period <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s49d">29 USC 49d</ref>.</p></sidenote>at the end thereof a comma and the following: “but not to exceed $677,800,000 in the fiscal year beginning October 1, 1981. For purposes of this subsection, the term ‘proper and efficient administration of its public employment offices’ shall mean only such functions as are necessary to carry out the provisions of this Act and shall not include functions authorized or required under the Internal Revenue Code of 1954, the Immigration and Nationality Act, or chapter 41 of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s1">26 USC 1 <i>et seq</i>;</ref> <ref href="/us/usc/t8/s1101">8 USC 1101 <i>et seq</i>.</ref>; <ref href="/us/usc/t38/s2001">38 USC 2001 <i>et seq</i>.</ref></p></sidenote>title 38, United States Code.”.</content> </section> <num value="VIII">TITLE VIII—</num><heading>SCHOOL LUNCH AND CHILD NUTRITION PROGRAMS</heading> <section> <heading class="centered smallCaps">changes in reimbursement for school lunches and breakfasts</heading><num value="801"><inline class="smallCaps">Sec</inline>. 801. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 4 of the National School Lunch Act is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1753">42 USC 1753</ref>.</p></sidenote>amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(a)</quotedText>” after “<inline class="smallCaps">Sec</inline>. 4.”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>in subsection (a) (as so designated), by striking out the second sentence; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>The Secretary shall make food assistance payments to each State educational agency each fiscal year, at such times as the Secretary may determine, from the sums appropriated for such purpose, in a total amount equal to the product obtained by multiplying—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the number of lunches (consisting of a combination of foods which meet the minimum nutritional requirements prescribed by the Secretary under section 9(a) of this Act) served <page identifier="/us/stat/95/522">95 STAT. 522</page>during such fiscal year in schools in such State which participate in the school lunch program under this Act under agreements with such State educational agency; by</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the national average lunch payment prescribed in paragraph (2) of this subsection.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The national average lunch payment for each lunch served shall be 10.5 cents (as adjusted pursuant to section 11(a) of this Act) except that for each lunch served in school food authorities in which 60 percent or more of the lunches served in the school lunch program during the second preceding school year were served free or at a reduced-price, the national average lunch payment shall be 2 cents more.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1759a">42 USC 1759a</ref>.</p></sidenote> <chapeau class="inline">Section 11(a) of the National School Lunch Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(1)</quotedText>” after “<inline class="smallCaps">Sec</inline>. 11. (a)”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>in the third sentence, by striking out “<quotedText>(1)</quotedText>” and inserting in lieu thereof “<quotedText>(A)</quotedText>” and by striking out “<quotedText>(2)</quotedText>” and inserting in lieu thereof “<quotedText>(B)</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out the fifth sentence and all that follows through the end of the subsection and inserting in lieu thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The special-assistance factor prescribed by the Secretary for free lunches shall be 98.75 cents and the special-assistance factor for reduced-price lunches shall be 40 cents less than the special-assistance factor for free lunches.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><subparagraph class="inline"><num value="A">(A) </num><chapeau>The Secretary shall prescribe on July 1, 1982, and on each subsequent July 1, an annual adjustment in the following:</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>The national average payment rates for lunches (as established <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 521.</p></sidenote>under section 4 of this Act).</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>The special assistance factor for lunches (as established under paragraph (2) of this subsection).</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>The national average payment rates for breakfasts (as <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Infra</i>.</p></sidenote>established under section 4(b) of the Child Nutrition Act of 1966).</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>The national average payment rates for supplements (as <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 528.</p></sidenote>established under section 17(c) of this Act).</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>The annual adjustment under this paragraph shall reflect changes in the cost of operating meal programs under this Act and the Child Nutrition Act of 1966, as indicated by the change in the series for food away from home of the Consumer Price Index for all Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor. Each annual adjustment shall reflect the changes in the series for food away from home for the most recent 12-month period for which such data are available. The adjustments made under this paragraph shall be computed to the nearest one-fourth cent.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1773">42 USC 1773</ref>.</p></sidenote> <content class="inline">Section 4(b)(1) of the Child Nutrition Act of 1966 is amended read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><subparagraph class="inline"><num value="A">(A) </num><chapeau>The Secretary shall make breakfast assistance payments each State educational agency each fiscal year, at such times as the Secretary may determine, from the sums appropriated for such purpose, in an amount equal to the product obtained by multiplying—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the number of breakfasts served during such fiscal year to children in schools in such States which participate in the school breakfast program under agreements with such State educational agency; by</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the national average breakfast payment for free breakfasts, for reduced-price breakfasts, or for breakfasts served to <page identifier="/us/stat/95/523">95 STAT. 523</page>children not eligible for free or reduced-price meals, as appropriate, as prescribed in clause (B) of this paragraph.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>The national average payment for each free breakfast shall be 57 cents (as adjusted pursuant to section 11(a) of the National School Lunch Act). The national average payment for each reduced-price <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 522.</p></sidenote>breakfast shall be one-half of the national average payment for each free breakfast, adjusted to the nearest one-fourth cent, except that in no case shall the difference between the amount of the national average payment for a free breakfast and the national average payment for a reduced-price breakfast exceed 30 cents. The national average payment for each breakfast served to a child not eligible for free or reduced-price meals shall be 8.25 cents (as adjusted pursuant to section 11(a) of the National School Lunch Act).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>No school which receives breakfast assistance payments under this section may charge a price of more than 30 cents for a reduced-price breakfast.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>No breakfast assistance payment may be made under this subsection for any breakfast served by a school unless such breakfast consists of a combination of foods which meet the minimum nutritional requirements prescribed by the Secretary under subsection (e) of this section.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Section 4(b)(2) of the Child Nutrition Act of 1966 is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 522.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><chapeau>in clause (B)(ii)—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by striking out “<quotedText>on a semiannual basis each July 1 and January 1</quotedText>” and inserting in lieu thereof “<quotedText>on an annual basis each July 1</quotedText>”; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by striking out “<quotedText>six-month</quotedText>” and inserting in lieu thereof “<quotedText>twelve-month</quotedText>”; and</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>in clause (C), by striking out “<quotedText>five</quotedText>” and inserting in lieu thereof “<quotedText>thirty</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>Section 4(d) of the Child Nutrition Act of 1966 is amended to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1773">42 USC 1773</ref>.</p></sidenote>read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Each State educational agency shall provide additional assistance to schools in severe need, which shall include only—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>those schools in which the service of breakfasts is required pursuant to State law; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>those schools (having a breakfast program or desiring to initiate a breakfast program) in which, during the most recent second preceding school year for which lunches were served, 40 percent or more of the lunches served to students at the school were served free or at a reduced-price, and in which the rate per meal established by the Secretary is insufficient to cover the costs of the breakfast program.</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">The provision of eligibility specified in clause (A) of this paragraph shall terminate effective July 1, 1983, for schools in States where the State legislatures meet annually and shall terminate effective July 1, 1984, for schools in States where the State legislatures meet biennially.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>A school, upon the submission of appropriate documentation about the need circumstances in that school and the school’s eligibility for additional assistance, shall be entitled to receive 100 percent of the operating costs of the breakfast program, including the costs of obtaining, preparing, and serving food, or the meal reimbursement rate specified in paragraph (2) of section 4(b) of this Act, whichever is less.”.</content></paragraph> </subsection> </quotedContent> </content></subparagraph> </paragraph> </subsection> </section> <page identifier="/us/stat/95/524">95 STAT. 524</page> <section> <heading class="centered smallCaps">reduction in commodity assistance for lunches</heading><num value="802"><inline class="smallCaps">Sec</inline>. 802. </num><content>The first sentence of section 6(e) of the National School <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1755">42 USC 1755</ref>.</p></sidenote>Lunch Act is amended to read as follows: “<quotedText>The national average value of donated foods, or cash payments in lieu thereof, shall be 11 cents, adjusted on July 1, 1982, and each July 1 thereafter to reflect changes in the Price Index for Food Used in Schools and Institutions.</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">revision of income eligibility guidelines</heading><num value="803"><inline class="smallCaps">Sec</inline>. 803. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1758">42 USC 1758</ref>.</p></sidenote> <chapeau>Section 9(b) of the National School Lunch Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by amending paragraph (1) to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><subparagraph class="inline"><num value="A">(A) </num><content>Not later than June 1 of each fiscal year, the Secretary shall prescribe income guidelines for determining eligibility for free and reduced-price lunches during the 12-month period beginning July 1 of such fiscal year and ending June 30 of the following fiscal year. For the school years ending June 30, 1982, and June 30, 1983, the income guidelines for determining eligibility for free lunches shall be 130 percent of the applicable family-size income levels contained in the nonfarm income poverty guidelines prescribed by the Office of Management and Budget, as adjusted annually in accordance with subparagraph (B). Beginning July 1, 1983, the income guidelines for determining eligibility for free lunches for any school year shall be the same as the gross income eligibility standards announced by the Secretary for any such period for eligibility for participation in the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2011">7 USC 2011 note</ref>.</p></sidenote>food Stamp program under the Food Stamp Act of 1977. The income guidelines for determining eligibility for reduced-price lunches for any school year shall be 185 percent of the applicable family-size income levels contained in the nonfarm income poverty guidelines prescribed by the Office of Management and Budget, as adjusted annually in accordance with subparagraph (B). The Office of Management and Budget guidelines shall be revised at annual intervals, or at any shorter interval deemed feasible and desirable.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>The revision required by subparagraph (A) of this paragraph shall be made by multiplying—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the official poverty line (as defined by the Office of Management and Budget); by</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the percentage change in the Consumer Price Index during the annual or other interval immediately preceding the time at which the adjustment is made.</content> </clause> <continuation class="indent0 firstIndent0 fontsize10">Revisions under this subparagraph shall be made not more than 30 days after the date on which the consumer price index data required to compute the adjustment becomes available.”;</continuation> </subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by redesignating paragraph (2) (and any references thereto) as paragraph (5) and by inserting after paragraph (1) the following new paragraphs: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>Following the determination by the Secretary under paragraph (1) of this subsection of the income eligibility guidelines for each school year, each State educational agency shall announce the income eligibility guidelines, by family-size, to be used by schools in the State in making determinations of eligibility for free and reduced-price lunches. Local school authorities shall, each year, publicly announce the income eligibility guidelines for free and reduced-price lunches on or before the opening of school.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>Applications for free and reduced-price lunches, in such form as the Secretary may prescribe or approve, and any descriptive material, shall be distributed to the parents or guardians of children <page identifier="/us/stat/95/525">95 STAT. 525</page>in attendance at the school, and shall contain only the family-size income levels for reduced-price meal eligibility with the explanation that households with incomes less than or equal to these values would be eligible for free or reduced-price lunches. Such forms and descriptive material may not contain the income eligibility guidelines for free lunches.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>Eligibility determinations shall be made on the basis of a complete application executed by an adult member of the household. The Secretary, States, and local school food authorities may seek verification of the data contained in the application. Local school food authorities shall undertake such verification of the information contained in these applications as the Secretary may by regulation prescribe and, in accordance with such regulations, make appropriate changes in the eligibility determinations on the basis of such verification.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Any child who is a member of a household whose income, at the time the application is submitted, is at an annual rate which does not exceed the applicable family-size income level of the income eligibility guidelines for free lunches, as determined under paragraph (1), shall be served a free lunch. Any child who is a member of a household whose income, at the time the application is submitted, is at an annual rate greater than the applicable family-size income level of the income eligibility guidelines for free lunches, as determined under paragraph (1), but less than or equal to the applicable family-size income level of the income eligibility guidelines for reduced-price lunches, as determined under paragraph (1), shall be served a reduced-price lunch. The price charged for a reduced-price lunch shall not exceed 40 cents.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>No physical segregation of or other discrimination against any child eligible for a free lunch or a reduced-price lunch under this subsection shall be made by the school nor shall there by any overt identification of any child by special tokens or tickets, announced or published lists of names, or by other means.”; and</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>in the second sentence of paragraph (5), as so redesignated by paragraph (2) of this subsection, by striking out “<quotedText>solely</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 9 of the National School Lunch Act is further amended <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1758">42 USC 1758</ref>.</p></sidenote>by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall require as a condition of eligibility for receipt of free or reduced-price lunches that the member of the household who executes the application furnish the social security account numbers of all adult members of the household of which such person is a member.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>No member of a household may be provided a free or reduced-price lunch under this Act unless—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>appropriate documentation, as prescribed by the Secretary, of the income of such household has been provided to the appropriate local school food authority; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>documentation showing that the household is participating in the food stamp program under the Food Stamp Act of 1977 has been provided to the appropriate local school food authority.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Notwithstanding any other provision of law, the Secretary of <sidenote><p class="indent0 firstIndent0 fontsize8">Study.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1758">42 USC 1758 note</ref>.</p></sidenote>Agriculture shall conduct a pilot study to verify the data submitted on a sample of applications for free and reduced-price meals. In conducting the pilot study, the Secretary may require households included in the study to furnish social security numbers of all household members and such other information as the Secretary may require, including, but not limited to, pay stubs, documentation of the <page identifier="/us/stat/95/526">95 STAT. 526</page>current status of household members who are recipients of public assistance, unemployment insurance documents, and written statements from employers, as a condition for receipt of free or reduced-price meals.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1758">42 USC 1758 note</ref>.</p></sidenote> <content class="inline">For the school year ending June 30, 1982, the Secretary may prescribe procedures for implementing the revisions made by the amendments contained in this section to the income eligibility guidelines for free and reduced-price lunches under section 9 of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1758">42 USC 1758</ref>.</p></sidenote>National School Lunch Act. Such procedures may allow school food authorities to (1) use applications distributed at the beginning of the school year when making eligibility determinations based on the revised income eligibility guidelines, or (2) distribute new applications and make determinations using such applications.</content> </subsection> </section> <section> <heading class="centered smallCaps">revision of state revenue matching requirements</heading><num value="804"><inline class="smallCaps">Sec</inline>. 804. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1756">42 USC 1756</ref>.</p></sidenote> <content class="inline">Section 7 of the National School Lunch Act is amended to read as follows: <quotedContent> <section class="firstIndent1 fontsize10"><num value="7">“<inline class="smallCaps">Sec</inline>. 7. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1753">42 USC 1753</ref>.</p></sidenote> <content class="inline">Funds appropriated to carry out section 4 of this Act during any fiscal year shall be available for payment to the States for disbursement by State educational agencies in accordance with such agreements, not inconsistent with the provisions of this Act, as may be entered into by the Secretary and such State educational agencies for the purpose of assisting schools within the States in obtaining agricultural commodities and other foods for consumption by children in furtherance of the school lunch program authorized under this Act. For any school year, such payments shall be made to a State only if, during such school year, the amount of the State revenues (excluding State revenues derived from the operation of the program) appropriated or used specifically for program purposes (other than any State revenues expended for salaries and administrative expenses of the program at the State level) is not less than 30 percent of the funds made available to such State under section 4 of this Act for the school year beginning July 1, 1980.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>If, for any school year, the per capita income of a State is less than the average per capita income of all the States, the amount required to be expended by a State under paragraph (1) for such year shall be an amount bearing the same ratio to the amount equal to 30 percent of the funds made available to such State under section 4 of this Act for the the school year beginning July 1, 1980, as the per capita income of such State bears to the average per capita income of all the States.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>The State revenues provided by any State to meet the requirement of subsection (a) shall, to the extent the State deems practicable, be disbursed to schools participating in the school lunch program under this Act. No State in which the State educational agency is prohibited by law from disbursing State appropriated funds to private schools shall be required to match Federal funds made available for meals served in such schools, or to disburse, to such schools, any of the State revenues required to meet the requirements of subsection (a).</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>The Secretary shall certify to the Secretary of the Treasury, from time to time, the amounts to be paid to any State under this section and shall specify when such payments are to be made. The Secretary of the Treasury shall pay to the State, at the time or times fixed by the Secretary, the amounts so certified.”.</content> </subsection> </section> </quotedContent> </content> </section> <page identifier="/us/stat/95/527">95 STAT. 527</page> <section> <heading class="centered smallCaps">termination of food service equipment assistance</heading><num value="805"><inline class="smallCaps">Sec</inline>. 805. </num><subsection class="inline"><num value="a">(a) </num><content>Section 5 of the National School Lunch Act is repealed. <sidenote><p class="indent0 firstIndent0 fontsize8">Repeals.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1754">42 USC 1754</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1774">42 USC 1774</ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 5 of the Child Nutrition Act of 1966 is repealed.</content> </subsection> </section> <section> <heading class="centered smallCaps">nutrition education and training program</heading><num value="806"><inline class="smallCaps">Sec</inline>. 806. </num><content>The second sentence of section 19(j)(2) of the Child Nutrition Act of 1966 is amended to read as follows: “<quotedText>There <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1788">42 USC 1788</ref>.</p></sidenote>authorized to be appropriated for the grants referred to in the preceding sentence not more than $15,000,000 for fiscal year 1981 and not more than $5,000,000 for each subsequent fiscal year.</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">revision of the special milk program</heading><num value="807"><inline class="smallCaps">Sec</inline>. 807. </num><chapeau>Section 3 of the Child Nutrition Act of 1966 is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1772">42 USC 1772</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>in the first sentence—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>in clause (1), by inserting “<quotedText>which do not participate in meal service program authorized under this Act or the National School Lunch Act,</quotedText>” after “<quotedText>under,</quotedText>”; and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1751">42 USC 1751 note</ref>.</p></sidenote></content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>in clause (2), by inserting “<quotedText>, which do not participate a meal service program authorized under this Act or the National School Lunch Act</quotedText>” after “<quotedText>training of children</quotedText>”;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>in the fourth sentence, by inserting “<quotedText>which does not participate in a meal service program authorized under this Act or the National School Lunch Act</quotedText>” after “<quotedText>institution</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>in the fifth sentence, by striking out “<quotedText>also</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by striking out the eighth sentence.</content></paragraph> </section> <section> <heading class="centered smallCaps">limitation on private school participation</heading><num value="808"><inline class="smallCaps">Sec</inline>. 808. </num><subsection class="inline"><num value="a">(a) </num><content>Section 12(d)(6) of the National School Lunch Act <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1760">42 USC 1760</ref>.</p></sidenote>amended by inserting in the first sentence “<quotedText>except private schools whose average yearly tuition exceeds $1,500 per child,</quotedText>” after “<quotedText>under,</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 15(c) of the Child Nutrition Act of 1966 is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1784">42 USC 1784</ref>.</p></sidenote>inserting in the first sentence “<quotedText>except private schools whose average yearly tuition exceeds $1,500 per child,</quotedText>” after “<quotedText>such school,</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">summer food service program</heading><num value="809"><inline class="smallCaps">Sec</inline>. 809. </num><chapeau>Section 13 of the National School Lunch Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1761">42 USC 1761</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>in subsection (a)(1)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>in clause (B), by striking out “<quotedText>nonresidential public or private nonprofit institutions,</quotedText>” and inserting in lieu thereof “<quotedText>public or private nonprofit school food authorities, local, municipal, or county governments,</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>in clause (C), by striking out “<quotedText>33 ⅓ percent</quotedText>” and inserting in lieu thereof “<quotedText>50 percent</quotedText>”; and</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding at the end of subsection (a) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>Service institutions that are local, municipal, or county governments shall be eligible for reimbursement for meals served in programs under this section only if such programs are operated directly by such governments.”.</content></paragraph> </quotedContent> </content></paragraph> </section> <page identifier="/us/stat/95/528">95 STAT. 528</page> <section> <heading class="centered smallCaps">revision of child care food program</heading><num value="810"><inline class="smallCaps">Sec</inline>. 810. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1766">42 USC 1766</ref>.</p></sidenote> <chapeau class="inline">Section 17(a) of the National School Lunch Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>in the second sentence, by adding at the end before the period the following: “<quotedText>(but only if such organization receives compensation under such title for at least 25 percent of the children for which the organization provides such nonresidential day care services)</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding after the third sentence the following: “<quotedText>Reimbursement may be provided under this section only for meals or supplements served to children not over 12 years of age (except that such age limitation shall not be applicable for children of migrant workers if 15 years of age or less or for handicapped children).</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 17(b) of the National School Lunch Act is amended by striking out “<quotedText>served in the manner specified in subsection (c)</quotedText>” and inserting in lieu thereof “<quotedText>as provided in subsection (f)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 17(c) of the National School Lunch Act is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><content>For purposes of this section, the national average pa5anent rate for free lunches and suppers, the national average payment rate for reduced-price lunches and suppers, and the national average payment rate for paid lunches and suppers shall be the same as the national average pa3nnent rates for free lunches, reduced-price lunches, and paid lunches, respectively, under sections 4 and 11 of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1753/1759a">42 USC 1753, 1759a</ref>.</p></sidenote>this Act as appropriate (as adjusted pursuant to section 11(a) of this Act).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>For purposes of this section, the national average payment rate for free breakfasts, the national average payment rate for reduced-price breakfasts, and the national average payment rate for paid breakfasts shall be the same as the national average payment rates for free breakfasts, reduced-price breakfasts, and paid breakfasts, <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 522.</p></sidenote>respectively, under section 4(b) of the Child Nutrition Act of 1966 (as adjusted pursuant to section 11(a) of this Act).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>For purposes of this section, the national average payment rate for free supplements shall be 30 cents, the national average payment rate for reduced-price supplements shall be one-half the rate for free supplements, and the national average payment rate for paid supplements shall be 2.75 cents (as adjusted pursuant to section 11(a) of this Act).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>Determinations with regard to eligibility for free and reduced-price meals and supplements shall be made in accordance with the income eligibility guidelines for free lunches and reduced-price <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1758">42 USC 1758</ref>.</p></sidenote>lunches, respectively, under section 9 of this Act.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><chapeau>Section 17(f) of the National School Lunch Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by amending paragraph (2) to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>Subject to subparagraph (B) of this paragraph, the disbursement for any fiscal year to any State for disbursement to institutions, other than family or group day care home sponsoring organizations, for meals provided under this section shall be equal to the sum of the products obtained by multiplying the total number of each type of meal (breakfast, lunch or supper, or supplement) served in such institution in that fiscal year by the applicable national average payment rate for each such type of meal, as determined under subsection (c).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>No reimbursement may be made to any institution under this paragraph, or to family or group day care home sponsoring organiza-<page identifier="/us/stat/95/529">95 STAT. 529</page>tions under paragraph (3) of this subsection, for more than two meals and one supplement per day per child.”;</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out paragraph (3) and by redesignating paragraphs (4) and (5) (and any references thereto) as paragraphs (3) and (4), respectively; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>in paragraph (3), as so redesignated—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by redesignating the fourth sentence and all that follows through the end of the paragraph as subparagraph (C); and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by amending all that precedes subparagraph (C) (as so redesignated) to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>Institutions that participate in the program under this section as family or group day care home sponsoring organizations shall be provided, for payment to such homes, a reimbursement factor set by the Secretary for the cost of obtaining and preparing food and prescribed labor costs, involved in providing meals under this section, without a requirement for documentation of such costs, except that reimbursement shall not be provided under this subparagraph for meals or supplements served to the children of a person acting as a family or group day care home provider unless such children meet the eligibility standards for free or reduced-price meals under section 9 of this Act. The reimbursement factor in effect as of the date of the enactment of this sentence shall be reduced by 10 percent. The reimbursement factor under this subparagraph shall be adjusted on July 1 of each year to reflect changes in the Consumer Price Index for food away from home for the most recent 12-month period for which such data are available. The reimbursement factor under this subparagraph shall be rounded to the nearest one-fourth cent.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>Family or group day care home sponsoring organizations shall also receive reimbursement for their administrative expenses in amounts not exceeding the maximum allowable levels prescribed by the Secretary. Such levels shall be adjusted July 1 of each year to reflect changes in the Consumer Price Index for all items for the most recent 12-month period for which such data are available. The maximum allowable levels for administrative expense payments, as in effect as of the date of the enactment of this subparagraph, shall be adjusted by the Secretary so as to achieve a 10 percent reduction in the total amount of reimbursement provided to institutions for such administrative expenses. In making the reduction required by the preceding sentence, the Secretary shall increase the economy of scale factors used to distinguish institutions that sponsor a greater number of family or group day care homes from those that sponsor a lesser number of such homes.”.</content></subparagraph> </paragraph> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Section 17(g) of the National School Lunch Act is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1766">42 USC 1766</ref>.</p></sidenote>striking out paragraph (2) and by redesignating paragraphs (3) and (4) (and any references thereto) as paragraphs (2) and (3), respectively.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>Section 17 of the National School Lunch Act is further amended by striking out subsections (i) and (n).</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>Section 17(o) of the National School Lunch Act is amended in the second sentence by striking out “<quotedText>the availability of food service equipment funds under the program,</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">food not intended to be consumed</heading><num value="811"><inline class="smallCaps">Sec</inline>. 811. </num><content>The third sentence of section 9(a) of the National School Lunch Act is amended by striking out “<quotedText>in any junior high school or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1758">42 USC 1758</ref>.</p></sidenote>middle school</quotedText>”.</content> </section> <page identifier="/us/stat/95/530">95 STAT. 530</page> <section> <heading class="centered smallCaps">state plan requirements</heading><num value="812"><inline class="smallCaps">Sec</inline>. 812. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1759a">42 USC 1759a</ref>.</p></sidenote> <chapeau class="inline">Section 11(e) of the National School Lunch Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out paragraph (1) and redesignating paragraphs (2) and (3) (and any references thereto) as paragraphs (1) and (2), respectively; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>in paragraphs (1) and (2), as so redesignated, by striking out the second sentence of each such paragraph.</content></paragraph> </section> <section> <heading class="centered smallCaps">commodity only schools</heading><num value="813"><inline class="smallCaps">Sec</inline>. 813. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1762a">42 USC 1762a</ref>.</p></sidenote> <content class="inline">Section 14 of the National School Lunch Act amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><content>Commodity only schools shall be eligible to receive donated commodities equal in value to the sum of the national average value <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 524.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1753">42 USC 1753</ref>.</p></sidenote>of donated foods established under section 6(e) of this Act and the national average payment established under section 4 of this Act. Such schools shall be eligible to receive up to 5 cents per meal of such value in cash for processing and handling expenses related to the use of such commodities. Lunches served in such schools shall consist of combination of foods which meet the minimum nutritional requirements prescribed by the Secretary under section 9(a) of this Act, and shall represent the four basic food groups, including a serving of fluid milk.”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1759a">42 USC 1759a</ref>.</p></sidenote> <content class="inline">Section 11 of the National School Lunch Act is further amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><content>Commodity only schools shall also be eligible for special-assistance payments under this section. Such schools shall serve meals free to children who meet the eligibility requirements for free <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 524.</p></sidenote>meals under section 9(b) of this Act, and shall serve meals at reduced price, not exceeding the price specified in section 9(b)(3) of this Act, to children meeting the eligibility requirements for reduced-price meals under such section. No physical segregation of, or other discrimination against, any child eligible for a free or reduced-priced lunch shall be made by the school, nor shall there be any overt identification of any such child by any means.”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1772">42 USC 1772</ref>.</p></sidenote> <chapeau class="inline">Section 3 of the Child Nutrition Act of 1968 is further amended by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>inserting “<quotedText>(a)</quotedText>” after “<inline class="smallCaps">Sec</inline>. 3.”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>Commodity only schools shall not be eligible to participate in the special milk program under this section. For the purposes of the preceding sentence, the term ‘commodity only schools’ means schools that do not participate in the school lunch program under the National School Lunch Act, but which receive commodities made available by the Secretary for use by such schools in nonprofit lunch programs.”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1760">42 USC 1760</ref>.</p></sidenote> <content class="inline">Section 12(d) of the National School Lunch Act is further amended by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><content>‘Commodity only schools’ means schools that do not participate in the school lunch program under this Act, but which receive commodities made available by the Secretary for use by such schools in nonprofit lunch programs.”</content></paragraph> </quotedContent> </content> </subsection> </section> <page identifier="/us/stat/95/531">95 STAT. 531</page> <section> <heading class="centered smallCaps">state administrative expenses</heading><num value="814"><inline class="smallCaps">Sec</inline>. 814. </num><subsection class="inline"><num value="a">(a) </num><content>Section 7(a)(2) of the Child Nutrition Act of 1966 is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1776">42 USC 1776</ref>.</p></sidenote>amended by striking out “<quotedText>September 30, 1978</quotedText>” in the second sentence and inserting in lieu thereof “<quotedText>September 30, 1981</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 7(e) of the Child Nutrition Act is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><content>Notwithstanding any other provision of law, funds made available to each State under this section shall remain available for obligation and expenditure by that State during the fiscal year immediately following the fiscal year for which such funds were made available. For each fiscal year the Secretary shall establish date by which each State shall submit to the Secretary a plan for the disbursement of funds provided under this section for each such year, and the Secretary shall reallocate any unused funds, as evidenced by such plans, to other States as the Secretary considers appropriate.</content> </subsection> </quotedContent> </content> </subsection> </section> <section> <heading class="centered smallCaps">authorizations for wic program</heading><num value="815"><inline class="smallCaps">Sec</inline>. 815. </num><content>Section 17(g) of the Child Nutrition Act of 1966 is amended <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1786">42 USC 1786</ref>.</p></sidenote>by striking out in the first sentence “<quotedText>and such sums as may be necessary for the three subsequent fiscal years,</quotedText>” and inserting in lieu thereof “<quotedText>$1,017,000,000 for the fiscal year ending September 30, 1982, $1,060,000,000 for the fiscal year ending September 30, 1983, and $1,126,000,000 for the fiscal year ending September 30, 1984,</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">claims adjustment authority</heading><num value="816"><inline class="smallCaps">Sec</inline>. 816. </num><chapeau>Section 16 of the Child Nutrition Act of 1966 is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1785">42 USC 1785</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(a)</quotedText>” after “<inline class="smallCaps">Sec</inline>. 16.”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>With regard to any claim arising under this Act or under the National School Lunch Act, the Secretary shall have the authority to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1751">42 USC 1751 note</ref>.</p></sidenote>determine the amount of, to settle and to adjust any such claim, and to compromise or deny such claim or any part thereof. The Secretary shall also have the authority to waive such claims if the Secretary determines that to do so would serve the purposes of either such Act. Nothing contained in this subsection shall be construed to diminish the authority of the Attorney General of the United States under section 516 of title 28, United States Code, to conduct litigation on behalf of the United States.”.</content> </subsection> </quotedContent> </content></paragraph> </section> <section> <heading class="centered smallCaps">limitations on secretary’s authority to directly administer programs</heading><num value="817"><inline class="smallCaps">Sec</inline>. 817. </num><subsection class="inline"><num value="a">(a) </num><content>Section 10 of the National School Lunch Act is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1759">42 USC 1759</ref>.</p></sidenote>amended to read as follows: <quotedContent> <section> <heading class="centered smallCaps">“disbursement to schools by the secretary</heading><num value="10">“<inline class="smallCaps">Sec</inline>. 10. </num><subsection class="inline"><num value="a">(a) </num><content>The Secretary shall withhold funds payable to a State under this Act and disburse the funds directly to schools, institutions, or service institutions within the State for the purposes authorized by this Act to the extent that the Secretary has so withheld and disbursed such funds continuously since October 1, 1980, but only to such extent (except as otherwise required by subsection (b)). Any funds so withheld and disbursed by the Secretary shall be used for the same purposes, and shall be subject to the same conditions, as applicable to a State disbursing funds made available under this Act. <page identifier="/us/stat/95/532">95 STAT. 532</page>If the Secretary is administering (in whole or in part) any program authorized under this Act, the State in which the Secretary is administering the program may, upon request to the Secretary, assume administration of that program.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>If a State educational agency is not permitted by law to disburse the funds paid to it under this Act to any of the nonpublic schools in the State, the Secretary shall disburse the funds directly to such schools within the State for the same purposes and subject to the same conditions as are authorized or required with respect to the disbursements to public schools within the State by the State educational agency.”.</content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1761">42 USC 1761</ref>.</p></sidenote> <content class="inline">Section 18 of the National School Lunch Act is further amended by striking out subsection (i).</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1766">42 USC 1766</ref>.</p></sidenote> <chapeau class="inline">Section 17 of the National School Lunch Act is further amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out subsection (m); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by redesignating subsections (j), (k), (l), (o), (p), (q), and (r), as subsections (i), (j), (k), (l), (m), (n), and (o), respectively.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1773">42 USC 1773</ref>.</p></sidenote> <content class="inline">Section 4 of the Child Nutrition Act of 1966 is further amended by striking out subsection (f) and redesignating subsection (g) as subsection (f).</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>The Child Nutrition Act of 1966 is further amended by inserting after section 4 the following new section: <quotedContent> <section> <heading class="centered smallCaps">“disbursement to schools by the secretary</heading><num value="5">“<inline class="smallCaps">Sec</inline>. 5. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 527.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1774">42 USC 1774</ref>.</p></sidenote> <content class="inline">The Secretary shall withhold funds payable to a State under this Act and disburse the funds directly to schools or institutions within the State for the purposes authorized by this Act to the extent that the Secretary has so withheld and disbursed such funds continuously since October 1, 1980, but only to such extent (except as otherwise required by subsection (b)). Any funds so withheld and disbursed by the Secretary shall be used for the same purposes, and shall be subject to the same conditions, as applicable to a State disbursing funds made available under this Act. If the Secretary is administering (in whole or in part) any program authorized under this Act, the State in which the Secretary is administering the program may, upon request to the Secretary, assume administration of that program.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>If a State educational agency is not permitted by law to disburse the funds paid to it under this Act to any of the nonpublic schools in the State, the Secretary shall disburse the funds directly to such schools within the State for the same purposes and subject to the same conditions as are authorized or required with respect to the disbursements to public schools within the State by the State educational agency.”.</content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1788">42 USC 1788</ref>.</p></sidenote> <content class="inline">Section 19(d) of the Child Nutrition Act of 1966 is amended by striking out paragraph (6).</content> </subsection> </section> <section> <heading class="centered smallCaps">cost savings revisions by the secretary</heading><num value="818"><inline class="smallCaps">Sec</inline>. 818. </num><content>As soon as possible after the date of the enactment of this Act, the Secretary of Agriculture shall review regulations promulgated <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1779">42 USC 1779</ref>.</p></sidenote>under section 10 of the Child Nutrition Act of 1966 (including regulations pertaining to nutritional requirements for meals) for the purposes of determining ways in which cost savings might be accomplished at the local level in the operation of meal programs under the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1751/1771">42 USC 1751 note, 1771 note</ref>.</p></sidenote>National School Lunch Act and the Child Nutrition Act of 1966 <page identifier="/us/stat/95/533">95 STAT. 533</page>without impairing the nutritional value of such meals. Not later than <sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote>90 days after the date of the enactment of this Act, on the basis of such review, the Secretary of Agriculture shall promulgate such regulations as the Secretary considers appropriate to effectuate such cost savings.</content> </section> <section> <heading class="centered smallCaps">conforming and miscellaneous amendments</heading><num value="819"><inline class="smallCaps">Sec</inline>. 819. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 11 of the National School Lunch Act is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1759a">42 USC 1759a</ref>.</p></sidenote>amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>financing the cost of</quotedText>” in the first sentence in subsection (b); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>or 5</quotedText>” in subsection (d).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 4(c) of the Child Nutrition Act of 1966 is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1773">42 USC 1773</ref>.</p></sidenote>striking out “<quotedText>financing the costs of</quotedText>” in the first sentence.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>Section 12 of the National School Lunch Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1760">42 USC 1760</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>in subsection (d)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out paragraph (3); and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by redesignating paragraphs (4) through (8) (and any references thereto) as paragraphs (3) through (7), respectively; and</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out the second sentence of subsection (h).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><chapeau>Section 8 of the National School Lunch Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1757">42 USC 1757</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>or 5</quotedText>” in the first sentence;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>to finance the cost of obtaining</quotedText>” in the second sentence and inserting in lieu thereof “<quotedText>to obtain</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out “<quotedText>and food service equipment assistance in connection with such program</quotedText>” in the second sentence; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by striking out “<quotedText>Federal food-cost contribution rate</quotedText>” both places it occurs in the fifth and sixth sentences and inserting in lieu thereof “<quotedText>per meal reimbursement rate</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Section 7 of the Child Nutrition Act of 1966 is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1776">42 USC 1776</ref>.</p></sidenote>striking out “<quotedText>3, 4, and 5</quotedText>” in subsections (a)(1), (a)(2), and (b) and inserting in lieu thereof “<quotedText>3 and 4</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>Section 11(a) of the Child Nutrition Act of 1966 is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1780">42 USC 1780</ref>.</p></sidenote>striking out “<quotedText>section 3 through 5</quotedText>” and inserting in lieu thereof “<quotedText>sections 3 and 4</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>Section 4(a) of the National School Lunch Act is amended in the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1753">42 USC 1753</ref>.</p></sidenote>first sentence by striking out “<quotedText>, excluding the sum specified in section 5,</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><chapeau>Section 6(a)(2) of the National School Lunch Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1755">42 USC 1755</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>sections 4 and 5</quotedText>” and inserting in lieu thereof “<quotedText>section 4</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>sections 4, 5, and 7</quotedText>” and inserting in lieu thereof “<quotedText>sections 4 and 7</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num><content>Section 15(f) of the National School Lunch Act is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1763">42 USC 1763</ref>.</p></sidenote>striking out “<quotedText>annually</quotedText>” in the second sentence and inserting in lieu thereof “<quotedText>biennially</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="j">(j) </num><chapeau>Section 14 of the National School Lunch Act (42 U.S.C. 1762a) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>title VII</quotedText>” in paragraph (1) of subsection (a) and inserting in lieu thereof “<quotedText>title III</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>section 707(a)(4) of the Older Americans Act of 1965 (42 U.S.C. 3045(a)(4)) or for cash payments in lieu of such donations under section 707(d)(1) of such Act (42 U.S.C. 3045f(d)(1))</quotedText>” in the first sentence of subsection (c) and inserting in lieu thereof “<quotedText>section 311(a)(4) of the Older Americans Act of 1965 (42 U.S.C. 3030(a)(4)) or for cash payments in lieu of such <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3030a">42 USC 3030a</ref>.</p></sidenote><page identifier="/us/stat/95/534">95 STAT. 534</page>donations under section 311(c)(1) of such Act (42 U.S.C. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3030a">42 USC 3030a</ref>.</p></sidenote>3030(c)(1))</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="k">(k) </num><content>The second sentence of section 17(f)(1) of the National School <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1766">42 USC 1766</ref>.</p></sidenote>Lunch Act is amended by striking out “<quotedText>financing the cost of</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">effective dates and repealer</heading><num value="820"><inline class="smallCaps">Sec</inline>. 820. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1753">42 USC 1753 note</ref>.</p></sidenote> <chapeau class="inline">The provisions of this title shall take effect as follows:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>The amendments made by the following sections shall take effect on the first day of the month following the date of the enactment of this Act, or on September 1, 1981, whichever is earlier:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>section 801;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>that portion of the amendment made by section 810(c) pertaining to the reimbursement rate for supplements;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>that portion of the amendment made by section 810(d)(1) pertaining to the limitation on the number of meals for which reimbursement may be made under the child care food program;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>that portion of the amendment made by section 810(d)(3) which reduces the meal reimbursement factor by 10 percent; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>section 811.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The amendments made by sections 802 and 804 shall take effect on July 1, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The amendments made by sections 807, 808, and 810(a)(2) shall take effect on the first day of the second month following the date of the enactment of this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>The amendments made by the following sections shall take effect October 1, 1981: sections 805, 806, 809, 810(a)(1), 810(f), 810(g), 812, 814, 817, and 819.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>The amendments made by section 813 shall take effect 90 days after the date of the enactment of this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><chapeau>The amendments made by the following provisions shall take effect January 1, 1982: subsections (b), (c), (d), and (e) of section 810, except that—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the amendment made by section 810(c) pertaining to the reimbursement rate for supplements shall take effect as provided under paragraph (1) of this subsection;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>the amendment made by section 810(d)(1) pertaining to the limitation on the number of meals for which reimbursement may be made shall take effect as provided under paragraph (1) of this subsection; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>the amendment made by section 810(d)(3) which reduces the meal reimbursement factor by 10 percent shall take effect as provided under paragraph (1) of this subsection.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><chapeau>The following provisions shall take effect on the date of the enactment of this Act:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the amendments made by subsections (a) and (b) of section 803 and the provisions of subsections (c) and (d) of section 803;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>the amendment made by section 815;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>the amendment made by section 816; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>the provisions of section 818.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>The Omnibus Reconciliation Act of 1980 (Public Law 96–499) is amended—</chapeau> <page identifier="/us/stat/95/535">95 STAT. 535</page> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out subsection (a) of section 201 effective <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2599">94 Stat. 2599</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1753">42 USC 1753 note</ref>.</p></sidenote>September 1, 1981, or the first day of the first month following the month in which this Act is enacted, whichever is earlier;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out subsection (a) of section 202 effective July 1, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2600">94 Stat. 2600</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1755">42 USC 1755 note</ref>.</p></sidenote>1981; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out subsections (a) and (b) of section 203 effective <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2600">94 Stat. 2600</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1758">42 USC 1758 note</ref>.</p></sidenote>on the date of the enactment of this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Not later than 60 days after the date of the enactment of this Act, the Secretary of Agriculture shall promulgate regulations to <sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1753">42 USC 1753 note</ref>.</p></sidenote>implement the amendments made by this title. </content> </subsection> </section> <num value="IX">TITLE IX—</num><heading>HEALTH SERVICES AND FACILITIES</heading> <subtitle><num value="A">Subtitle A—</num><heading>Block Grants</heading> <section> <heading class="centered smallCaps">preventive health, health services, and primary care health block grants</heading><num value="901"><inline class="smallCaps">Sec</inline>. 901. </num><content>Effective October 1, 1981, the Public Health Service Act is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300w">42 USC 300w note</ref>.</p></sidenote>amended by adding at the end the following new title: <quotedContent> <title><num value="XIX">“TITLE XIX—</num><heading>BLOCK GRANTS</heading> <part><num value="A">“<inline class="smallCaps">Part A</inline>—</num><heading><inline class="smallCaps">Preventive Health and Health Services Block Grant</inline></heading> <section> <heading class="centered smallCaps">“authorization of appropriations</heading><num value="1901">“<inline class="smallCaps">Sec</inline>. 1901. </num><subsection class="inline"><num value="a">(a) </num><content>For the purpose of allotments under section 1902, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300w">42 USC 300w</ref>.</p></sidenote>there is authorized to be appropriated $95,000,000 for fiscal year 1982, $96,500,000 for fiscal year 1983, and $98,500,000 for fiscal year 1984.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>Of the amount appropriated for any fiscal year under subsection (a), at least $3,000,000 shall be made available for allotments under section 1902(b).</content> </subsection> </section> <section> <heading class="centered smallCaps">“allotments</heading><num value="1902">“<inline class="smallCaps">Sec</inline>. 1902. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>From the amounts appropriated under section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300w–1">42 USC 300w–1</ref>.</p></sidenote>1901 for any fiscal year and available for allotment under this subsection, the Secretary shall allot to each State an amount which bears the same ratio to the available amounts for that fiscal year as the amounts provided by the Secretary under the provisions of law listed in paragraph (2) to the State and entities in the State for fiscal year 1981 bore to the total amount appropriated for such provisions of law for fiscal year 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>The provisions of law referred to in paragraph (1) are the following provisions of law as in effect on September 30, 1981:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>The authority for grants under section 317 for preventive <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s247b">42 USC 247b</ref>.</p></sidenote>health service programs for the the control of rodents.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>The authority for grants under section 317 for establishing and maintaining community and school-based fluoridation programs.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>The authority for grants under section 317 for preventive health service programs for hypertension.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>Sections 401 and 402 of the Health Services and Centers Amendments of 1978. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s247b–1/247b–2">42 USC 247b–1, 247b–2</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s246">42 USC 246</ref>.</p></sidenote></content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>Section 314(d).</content></subparagraph> <page identifier="/us/stat/95/536">95 STAT. 536</page> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s255">42 USC 255</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300d–1–300d–3">42 USC 300d–1–300d–3</ref>.</p></sidenote> <content class="inline">Section 339(a).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="G">“(G) </num><content>Sections 1202, 1203, and 1204.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>From the amount required to be made available under section 1901(b) for allotments under this subsection for any fiscal year, the Secretary shall make allotments to each State on the basis of the population of the State.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><chapeau>To the extent that all the funds appropriated under section 1901 for a fiscal year and available for allotment in such fiscal year are not otherwise allotted to States because—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>one or more States have not submitted an application or description of activities in accordance with section 1905 for the fiscal year;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>one or more States have notified the Secretary that they do not intend to use the full amount of their allotment; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>some State allotments are offset or repaid under section 1906(b)(3);</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">such excess shall be allotted among each of the remaining States in proportion to the amount otherwise allotted to such States for the fiscal year without regard to this subsection.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>If the Secretary—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>receives a request from the governing body of an Indian tribe or tribal organization within any State that funds under this part be provided directly by the Secretary to such tribe or organization, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>determines that the members of such tribe or tribal organization would be better served by means of grants made directly by the Secretary under this part,</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">the Secretary shall reserve from amounts which would otherwise be allotted to such State under subsection (a) for the fiscal year the amount determined under paragraph (2).</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary shall reserve for the purpose of paragraph (1) from amounts that would otherwise be allotted to such State under subsection (a) an amount equal to the amount which bears the same ratio to the State’s allotment for the fiscal year involved as the total amount provided or allotted for fiscal year 1981 by the Secretary to such tribe or tribal organization under the provisions of law referred to in subsection (a) bore to the total amount provided or allotted for such fiscal year by the Secretary to the State and entities (including Indian tribes and tribal organizations) in the State under such provisions of law.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The amount reserved by the Secretary on the basis of a determination under this subsection shall be granted to the Indian tribe or tribal organization serving the individuals for whom such a determination has been made.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>In order for an Indian tribe or tribal organization to be eligible for a grant for a fiscal year under this subsection, it shall submit to the Secretary a plan for such fiscal year which meets such criteria as the Secretary may prescribe.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">“Indian tribe,” and “tribal organization.”</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s450b">25 USC 450b</ref>.</p></sidenote> <content class="inline">The terms ‘Indian tribe’ and ‘tribal organization’ have the same meaning given such terms in section 4(b) and section 4(c) of the Indian Self-Determination and Education Assistance Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><chapeau>The Secretary shall conduct a study for the purpose of devising a formula for the equitable distribution of funds available for allotment to the States under this section. In conducting the study, the Secretary shall take into account—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the financial resources of the various States,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the populations of the States, and</content></paragraph> <page identifier="/us/stat/95/537">95 STAT. 537</page> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>any other factor which the Secretary may consider appropriate.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">Before June 30, 1982, the Secretary shall submit a report to the Congress respecting the development of a formula and make such recommendations as the Secretary may deem appropriate in order to ensure the most equitable distribution of funds under allotments under this section.</continuation> </subsection> </section> <section> <heading class="centered smallCaps">“payments under allotments to states</heading><num value="1903">“<inline class="smallCaps">Sec</inline>. 1903. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>For each fiscal year, the Secretary shall make <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300w–2">42 USC 300w–2</ref>.</p></sidenote>payments, as provided by section 203 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4213), to each State from its allotment under section 1902 (other than any amount reserved under section 1902(d)) from amounts appropriated for that fiscal year.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Any amount paid to a State for a fiscal year and remaining unobligated at the end of such year shall remain available for the next fiscal year to such State for the purposes for which it was made.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>The Secretary, at the request of a State, may reduce the amount of payments under subsection (a) by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the fair market value of any supplies or equipment furnished the State, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the amount of the pay, allowances, and travel expenses of any officer or employee of the Government when detailed to the State and the amount of any other costs incurred in connection with the detail of such officer or employee,</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">when the furnishing of supplies or equipment or the detail of an officer or employee is for the convenience of and at the request of the State and for the purpose of conducting activities described in section 1904. The amount by which any payment is so reduced shall be available for payment by the Secretary of the costs incurred in furnishing the supplies or equipment or in detailing the personnel, on which the reduction of the payment is based, and the amount shall be deemed to be part of the payment and shall be deemed to have been paid to the State.</continuation> </subsection> </section> <section> <heading class="centered smallCaps">“use of allotments</heading><num value="1904">“<inline class="smallCaps">Sec</inline>. 1904. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Except as provided in subsections (b) and (c), <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300w–3">42 USC 300w–3</ref>.</p></sidenote>amounts paid to a State under section 1903 from its allotment under section 1902(a) and amounts transferred by the State for use under this part may he used for the following:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>Preventive health service programs for the control of rodents and community and school-based fluoridation programs.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>Establishing and maintaining preventive health service programs for screening for, the detection, diagnosis, prevention, and referral for treatment of, and follow-up on compliance with treatment prescribed for, hypertension.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>Community based programs for the purpose of demonstrating and evaluating optimal methods for organizing and delivering comprehensive preventive health services to defined populations, comprehensive programs designed to deter smoking and the use of alcoholic beverages among children and adolescents, and other risk-reduction and health education programs.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>Comprehensive public health services.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>Demonstrate the establishment of home health agencies (as defined in section 1861(m) of the Social Security Act) in areas <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x</ref>.</p></sidenote>where the services of such agencies are not available. Amounts <page identifier="/us/stat/95/538">95 STAT. 538</page>provided for such agencies may not be used for the direct provision of health services.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num><content>Feasibility studies and planning for emergency medical services systems and the establishment, expansion, and improvement of such systems. Amounts for such systems may not be used for the costs of the operation of the systems or the purchase of equipment for the systems.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="G">“(G) </num><content>Providing services to rape victims and for rape prevention.</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">Amounts provided for the activities referred to in the preceding sentence may also be used for related planning, administration, and educational activities.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Except as provided in subsection (b), amounts paid to a State under section 1903 from its allotment under section 1902(b) may only be used for providing services to rape victims and for rape prevention.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The Secretary may provide technical assistance to States in planning and operating activities to be carried out under this part.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>A State may not use amounts paid to it under section 1903 to—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>provide inpatient services,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>make cash payments to intended recipients of health services,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>purchase or improve land, purchase, construct, or permanently improve (other than minor remodeling) any building or other facility, or purchase major medical equipment,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>satisfy any requirement for the expenditure of non-Federal funds as a condition for the receipt of Federal funds, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>provide financial assistance to any entity other than a public or nonprofit private entity.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">Except as provided in subsection (a)(1)(E), the Secretary may waive the limitation contained in paragraph (3) upon the request of a State if the Secretary finds that there are extraordinary circumstances to justify the waiver and that granting the waiver will assist in carrying out this part.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>A State may transfer not more than 7 percent of the amount allotted to the State under section 1902(a) for any fiscal year for use by the State under parts B and C of this title and title V of the Social <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, pp. 543, 552.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s701">42 USC 701</ref>.</p></sidenote>Security Act in such fiscal year as follows: At any time in the first three quarters of the fiscal year a State may transfer not more than 3 percent of the allotment of the State for the fiscal year for such use, and in the last quarter of a fiscal year a State may transfer for such use not more than the remainder of the amount of its allotment which may be transferred.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>Of the amount paid to any State under section 1903, not more than 10 percent paid from each of its allotments under subsections (a) and (b) of section 1902 may be used for administering the funds made available under section 1903. The State will pay from non-Federal sources the remaining costs of administering such funds.</content> </subsection> </section> <section> <heading class="centered smallCaps">“application and description of activities</heading><num value="1905">“<inline class="smallCaps">Sec</inline>. 1905. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300w–4">42 USC 300w–4</ref>.</p></sidenote> <content class="inline">In order to receive an allotment for a fiscal year under section 1902 each State shall submit an application to the Secretary. Each such application shall be in such form and submitted by such date as the Secretary shall require. Each such application shall contain assurances that the legislature of the State has complied with the provisions of subsection (b) and that the State will meet the requirements of subsection (c).</content> </subsection> <page identifier="/us/stat/95/539">95 STAT. 539</page> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>After the expiration of the first fiscal year in which a State receives an allotment under section 1902, no funds shall be allotted to such State for any fiscal year under such section unless the legislature of the State conducts public hearings on the proposed use and distribution of funds to be provided under section 1903 for such fiscal year.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><chapeau>As part of the annual application required by subsection (a), the chief executive officer of each State shall certify that the State—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>agrees to use the funds alloted to it under section 1902 in accordance with the requirements of this part;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>except as provided in subsection (e), shall make grants for fiscal year 1982 to each entity within the State which received a grant or contract under section 1202, 1203, or 1204 in fiscal year <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300d–i–300d–3">42 USC 300d–i–300d–3</ref>.</p></sidenote>1981 and which would be eligible to receive a grant or contract under such section (as in effect on September 30, 1981) for such fiscal year if such grants or contracts were made under such section;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>agrees to establish reasonable criteria to evaluate the effective performance of entities which receive funds from the allotment of the State under this part and procedures for procedural and substantive independent State review of the failure by the State to provide funds for any such entity.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><chapeau>agrees to make grants for preventive health service programs for hypertension in amounts equal to—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>for fiscal year 1982, 75 percent of the total amount provided by the Secretary in fiscal year 1981 to the State and entities in the State under section 317 for such programs,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>for fiscal year 1983, 70 percent of such total amount, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>for fiscal year 1984, 60 percent of such total amount.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>agrees to permit and cooperate with Federal investigations undertaken in accordance with section 1907;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>has identified those populations, areas, and localities in the State with a need for the services for which funds may be provided by the State under this part;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>agrees that Federal funds made available under section 1903 for any period will be so used as to supplement and increase the level of State, local, and other non-Federal funds that would in the absence of such Federal funds be made available for the programs and activities for which funds are provided under that section and will in no event supplant such State, local, and other non-Federal funds; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><content>has in effect a system to protect from inappropriate disclosure patient and rape victim records maintained by the State in connection with an activity funded under this part or by any entity which is receiving payments from the allotment of the State under this part.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">The Secretary may not prescribe for a State the manner of compliance with the requirements of this subsection.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>The chief executive officer of a State shall, as part of the application required by subsection (a), also prepare and furnish the Secretary (in accordance with such form as the Secretary shall provide) with a description of the intended use of the payments the State will receive under section 1903 for the fiscal year for which the application is submitted, including information on the programs and activities to be supported and services to be provided. The description shall be made public within the State in such manner as to facilitate comment from any person (including any Federal or other public <page identifier="/us/stat/95/540">95 STAT. 540</page>agency) during development of the description and after its transmittal. The description shall be revised (consistent with this section) throughout the year as may be necessary to reflect substantial changes in the programs and activities assisted by the State under this part, and any revision shall be subject to the requirements of the preceding sentence.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><chapeau>A State shall be required to make a grant to an entity as prescribed by subsection (c)(2) unless—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><chapeau>the State recommends on the basis of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>any Federal finding, Federal administrative action, or judicial proceeding with respect to any such entity, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>a review of such entity in accordance with the criteria and procedures required under subsection (c)(3),</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">that the State not be required to make such grants; and</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the Secretary approves the recommendation of the State under paragraph (1) based upon a substantive and procedural review of the record made by the State in making its recommendation under paragraph (1).</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">“reports and audits</heading><num value="1906">“<inline class="smallCaps">Sec</inline>. 1906. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300w–5">42 USC 300w–5</ref>.</p></sidenote> <content class="inline">Each State shall prepare and submit to the Secretary annual reports on its activities under this part. Such reports shall be in such form and contain such information as the Secretary determines (after consultation with the States and the Comptroller General) to be necessary (A) to determine whether funds were expended in accordance with this part and consistent with the needs within the State identified pursuant to section 1905(c)(6), (B) to secure a description of the activities of the State under this part, and (C) to secure a record of the purposes for which funds were spent, of the recipients of such funds, and of the progress made toward achieving the purposes for which the funds were provided. Copies of the report shall be provided, upon request, to any interested person (including any public agency).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>In determining the information that States must include in the report required by this subsection, the Secretary may not establish reporting requirements that are burdensome.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Each State shall establish fiscal control and fund accounting procedures as may be necessary to assure the proper disbursal of and accounting for Federal funds paid to the State under section 1903 and funds transferred under section 1904(c) for use under this part.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Each State shall annually audit its expenditures from payments received under section 1903. Such State audits shall be conducted by an entity independent of any agency administering a program funded under this part and, in so far as practical, in accordance with the Comptroller General’s standards for auditing governmental organizations, programs, activities, and functions. Within 30 days following the date each audit is completed, the chief executive officer of the State shall transmit a copy of that audit to the Secretary.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Notice and hearing.</p></sidenote> <content class="inline">Each State shall, after being provided by the Secretary with adequate notice and opportunity for a hearing within the State, repay to the United States amounts found not to have been expended in accordance with the requirements of this part or the certification provided by the State under section 1905. If such repayment is not made, the Secretary shall, after providing the State with adequate notice and opportunity for a hearing within the State, offset such <page identifier="/us/stat/95/541">95 STAT. 541</page>amounts against the amount of any allotment to which the State is or may become entitled under this part.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>The State shall make copies of the reports and audits required <sidenote><p class="indent0 firstIndent0 fontsize8">Public inspection.</p></sidenote>by this section available for public inspection within the State.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>The Comptroller General of the United States shall, from time to time, evaluate the expenditures by States of grants under this part in order to assure that expenditures are consistent with the provisions of this part and the certification provided by the State under section 1905.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>Not later than October 1, 1983, the Secretary shall report to the <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote>Congress on the activities of the States that have received funds under this part and may include in the report any recommendations for appropriate changes in legislation.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Title XVII of the Omnibus Budget Reconciliation Act of 1981 <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 753</p></sidenote>shall not apply with respect to audits of funds allotted under this part.</content> </subsection> </section> <section> <heading class="centered smallCaps">“withholding</heading><num value="1907">“<inline class="smallCaps">Sec</inline>. 1907. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall, after adequate notice and an <sidenote><p class="indent0 firstIndent0 fontsize8">Notice and hearing.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300w–6">42 USC 300w–6</ref>.</p></sidenote>opportunity for a hearing conducted within the affected State, withhold funds from any State which does not use its allotment in accordance with the requirements of this par or the certification provided under section 1905. The Secretary shall withhold such funds until the Secretary finds that the reason for the withholding has been removed and there is reasonable assurance that it will not recur.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary may not institute proceedings to withhold funds under paragraph (1) unless the Secretary has conducted an investigation concerning whether the State has used its allotment in accordance with the requirements of this part or the certification provided under section 1905. Investigations required by this paragraph shall be conducted within the affected State by qualified investigators.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The Secretary shall respond in an expeditious manner to complaints of a substantial or serious nature that a State has failed to use funds in accordance with the requirements of this part or certifications provided under section 1905.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>The Secretary may not withhold funds under paragraph (1) from a State for a minor failure to comply with the requirements of this part or certifications provided under section 1905.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall conduct in several States in each fiscal year investigations of the use of funds received by the States under this part in order to evaluate compliance with the requirements of this part and certifications provided under section 1905.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Comptroller General of the United States may conduct investigations of the use of funds received under this part by a State in order to insure compliance with the requirements of this part and certifications provided under section 1905.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Each State, and each entity which has received funds from an allotment made to a State under this part, shall make appropriate books, documents, papers, and records available to the Secretary or the Comptroller General of the United States, or any of their duly authorized representatives, for examination, copying, or mechanical reproduction on or off the premises of the appropriate entity upon a reasonable request therefor.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><content>In conducting any investigation in a State, the Secretary or the Comptroller General of the United States may not make a request for any information not readily available to such State or an entity which has received funds from an allotment made to the State under <page identifier="/us/stat/95/542">95 STAT. 542</page>this part or make an unreasonable request for information to be compiled, collected, or transmitted in any form not readily available.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Paragraph (1) does not apply to the collection, compilation, or transmittal of data in the course of a judicial proceeding.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">“nondiscrimination</heading><num value="1908">“<inline class="smallCaps">Sec</inline>. 1908. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300w–7">42 USC 300w–7</ref>.</p></sidenote> <content class="inline">For the purpose of applying the prohibitions against discrimination on the basis of age under the Age Discrimination <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s6101">42 USC 6101 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s794">29 USC 794</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1681">20 USC 1681</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2000d">42 USC 2000d</ref>.</p></sidenote>Act of 1975, on the basis of handicap under section 504 of the Rehabilitation Act of 1973, on the basis of sex under title IX of the Education Amendments of 1972, or on the basis of race, color, or national origin under title VI of the Civil Rights Act of 1964, programs and activities funded in whole or in part with funds made available under this part are considered to be programs and activities receiving Federal financial assistance.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>No person shall on the ground of sex or religion be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity funded in whole or in part with funds made available under this part.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>Whenever the Secretary finds that a State, or an entity that has received a payment from an allotment to a State under section 1902, has failed to comply with a provision of law referred to in subsection (a)(1), with subsection (a)(2), or with an applicable regulation (including one prescribed to carry out subsection (a)(2)), the Secretary shall notify the chief executive officer of the State and shall request him to secure compliance. If within a reasonable period of time, not to exceed sixty days, the chief executive officer fails or refuses to secure compliance, the Secretary may—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>refer the matter to the Attorney General with a recommendation that an appropriate civil action be instituted,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>exercise the powers and functions provided by title VI of the Civil Rights Act of 1964, the Age Discrimination Act of 1975, or section 504 of the Rehabilitation Act of 1973, as may be applicable, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>take such other action as may be provided by law.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>When a matter is referred to the Attorney General pursuant to subsection (b)(1), or whenever he has reason to believe that a State or an entity is engaged in a pattern or practice in violation of a provision of law referred to in subsection (a)(1) or in violation of subsection (a)(2), the Attorney General may bring a civil action in any appropriate district court of the United States for such relief as may be appropriate, including injunctive relief.</content> </subsection> </section> <section> <heading class="centered smallCaps">“criminal penalty for false statements</heading><num value="1909">“<inline class="smallCaps">Sec</inline>. 1909. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300w–8">42 USC 300w–8</ref>.</p></sidenote> <chapeau class="inline">Whoever—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>knowingly and willfully makes or causes to be made any false statement or representation of a material fact in connection with the furnishing of items or services for which payment may be made by a State from funds allotted to the State under this part, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>having knowledge of the occurrence of any event affecting his initial or continued right to any such payment conceals or fails to disclose such event with an intent fraudulently to secure such payment either in a greater amount than is due or when no such payment is authorized,</content></paragraph> <page identifier="/us/stat/95/543">95 STAT. 543</page> <continuation class="indent0 firstIndent0 fontsize10">shall be fined not more than $25,000 or imprisoned for not more than five years, or both.”.</continuation> </section> </part> <part><num value="B">“<inline class="smallCaps">Part B</inline>—</num><heading><inline class="smallCaps">Alcohol and Drug Abuse and Mental Health Services Block Grant</inline></heading> <section> <heading class="centered smallCaps">“authorization of appropriations</heading><num value="1911">“<inline class="smallCaps">Sec</inline>. 1911. </num><content>For the purpose of grants and allotments under section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300x">42 USC 300x</ref>.</p></sidenote>1912, there is authorized to be appropriated $491,000,000 for fiscal year 1982, $511,000,000 for fiscal year 1983, and $532,000,000 for fiscal year 1984.</content> </section> <section> <heading class="centered smallCaps">“grants and allotments</heading><num value="1912">“<inline class="smallCaps">Sec</inline>. 1912. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary may use not more than 1 percent of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300x–1">42 USC 300x–1</ref>.</p></sidenote>the amount appropriated under section 1911 for any fiscal year to make grants to public and nonprofit private entities for projects for the training and retraining of employees adversely affected by changes in the delivery of mental health services and for providing such employees assistance in securing employment.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>No grant may be made by the Secretary under paragraph (1) unless an application therefor has been submitted to, and approved by, the Secretary. Such application shall be in such form, submitted in such manner, and contain and be accompanied by such information, as the Secretary may specify. No such application may be approved unless it contains assurances that the applicant will use the funds provided only for the purposes specified in the approved application and will establish such fiscal control and fund accounting procedures as may be necessary to assure proper disbursement and accounting of Federal funds paid to the applicant under paragraph (1).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>From the remainder of the amount appropriated under section 1911 for any fiscal year, the Secretary shall allot to each State an amount which bears the same ratio to such remainder for that fiscal year as the amounts—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>which would have been provided by the Secretary to the State and entities in the State under the Community Mental Health Centers Act and the Mental Health Systems Act for fiscal year 1981 if the Secretary had obligated all the funds for mental health services available for such Acts under Public Law 96–536, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>provided by the Secretary to the State and entities in the State under the laws referred to in subparagraphs (C) and (D) of paragraph (2) for fiscal year 1980,</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">bore to the total amount appropriated for mental health services for fiscal year 1981 under Public Law 96–536 under the Community Mental Health Centers Act and the Mental Health Systems Act and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2689">42 USC 2689 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/92/1564">92 Stat. 1564</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9401">42 USC 9401 note</ref>.</p></sidenote>the total amount appropriated for fiscal year 1980 for the provisions of law referred to in subparagraphs (C) and (D) of paragraph (2).</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>The provisions of law referred to in paragraph (1) are the following provisions of law as in effect on the day before the date of the enactment of the Omnibus Budget Reconciliation Act of 1981:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>The Community Mental Health Centers Act.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>The Mental Health Systems Act.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>Sections 301 and 312 of the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment, and Rehabilitation Act of 1970. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s4571/4578">42 USC 4571, 4578</ref>.</p></sidenote></content></subparagraph> <page identifier="/us/stat/95/544">95 STAT. 544</page> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>Sections 409 and 410 of the Drug Abuse Prevention, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s1176/1177">21 USC 1176, 1177</ref>.</p></sidenote>Treatment, and Rehabilitation Act.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>To the extent that all the funds appropriated under section 1911 for a fiscal year and available for allotment in such fiscal year are not otherwise allotted to States because—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>one or more States have not submitted an application or description of activities in accordance with section 1915 for the fiscal year;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>one or more States have notified the Secretary that they do not intend to use the full amount of their allotment; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>some State allotments are offset or repaid under section 1916(b)(3);</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">such excess shall be allotted among each of the remaining States in proportion to the amount otherwise allotted to such States for the fiscal year without regard to this paragraph.</continuation> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>If the Secretary—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>receives a request from the governing body of an Indian tribe or tribal organization within any State that funds under this part be provided directly by the Secretary to such tribe or organization, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>determines that the members of such tribe or tribal organization would be better served by means of grants made directly by the Secretary under this part,</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">the Secretary shall reserve from amounts which would otherwise be allotted to such State under subsection (b) for the fiscal year the amount determined under paragraph (2).</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary shall reserve for the purpose of paragraph (1) from amounts that would otherwise be allotted to such State under subsection (b) an amount equal to the amount which bears the same ratio to the State’s allotment for the fiscal year involved as the total amount provided or allotted for fiscal year 1980 by the Secretary to such tribe or tribal organization under the provisions of law referred to in subsection (b)(2) bore to the total amount provided or allotted for such fiscal year by the Secretary to the State and entities (including Indian tribes and tribal organizations) in the State under such provisions of law.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The amount reserved by the Secretary on the basis of a determination under this subsection shall be granted to the Indian tribe or tribal organization serving the individuals for whom such a determination has been made.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>In order for an Indian tribe or tribal organization to be eligible for a grant for a fiscal year under this subsection, it shall submit to the Secretary a plan for such fiscal year which meets such criteria as the Secretary may prescribe.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">“Indian tribe,” and “tribal organization.”</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s450b">25 USC 450b</ref>.</p></sidenote> <content class="inline">The terms ‘Indian tribe’ and ‘tribal organization’ have the same meaning given such terms in section 4(b) and section 4(c) of the Indian Self-Determination and Education Assistance Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><chapeau>The Secretary shall conduct a study for the purpose of devising a formula for the equitable distribution of funds available for allotment to the States under subsection (b). In conducting the study, the Secretary shall take into account—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the financial resources of the various States,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the populations of the States, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>any other factor which the Secretary may consider appropriate.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">Before June 30, 1982, the Secretary shall submit a report to the Congress respecting the development of a formula and make such recommendations as the Secretary may deem appropriate in order to <page identifier="/us/stat/95/545">95 STAT. 545</page>insure the most equitable distribution of funds under allotments under subsection (b).</continuation> </subsection> </section> <section> <heading class="centered smallCaps">“payments under allotments to states</heading><num value="1913">“<inline class="smallCaps">Sec</inline>. 1913. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>For each fiscal year, the Secretary shall make <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300x–2">42 USC 300x–2</ref>.</p></sidenote>payments, as provided by section 203 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4213), to each State from its allotment under section 1912(b) (other than any amount reserved under section 1912(c)) from amounts appropriated for that fiscal year.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Any amount paid to a State for a fiscal year and remaining unobligated at the end of such year shall remain available to such State for the purposes for which it was made for the next fiscal year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>The Secretary, at the request of a State, may reduce the amount of payments under subsection (a) by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the fair market value of any supplies or equipment furnished the State, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the amount of the pay, allowances, and travel expenses of any officer or employee of the Government when detailed to the State and the amount of any other costs incurred in connection with the detail of such officer or employee,</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">when the furnishing of supplies or equipment or the detail of an officer or employee is for the convenience of and at the request of the State and for the purpose of conducting activities described in section 1914. The amount by which any payment is so reduced shall be available for payment by the Secretary of the costs incurred in furnishing the supplies or equipment or in detailing the personnel, on which the reduction of the payment is based, and the amount shall be deemed to be part of the payment and shall be deemed to have been paid to the State.</continuation> </subsection> </section> <section> <heading class="centered smallCaps">“use of allotments</heading><num value="1914">“<inline class="smallCaps">Sec</inline>. 1914. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Except as provided in subsections (b) and (c), <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300x–3">42 USC 300x–3</ref>.</p></sidenote>amounts paid to a State under section 1913 and amounts transferred by the State for use under this part may be used by the State for—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>planning, establishing, maintaining, coordinating, and evaluating projects for the development of more effective prevention, treatment, and rehabilitation programs and activities to deal with alcohol and drug abuse; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>grants to community mental health centers in accordance with section 1915(c) and grants to community mental health centers for the provision of the following services:</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>Services for chronically mentally ill individuals, which include identification of chronically mentally ill individuals and assistance to such individuals in gaining access to essential services through the assignment of case managers.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>Identification and assessment of severely mentally disturbed children and adolescents and provision of appropriate services to such individuals.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>Identification and assessment of mentally ill elderly individuals and provision of appropriate services to such individuals.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>Services for identifiable populations which are currently underserved in the State.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="v">“(v) </num><content>Coordination of mental health and health care services provided within health care centers.</content> </clause> </subparagraph> <page identifier="/us/stat/95/546">95 STAT. 546</page> <continuation class="indent0 firstIndent0 fontsize10">Amounts provided for the activities referred to in the preceding sentence may also be used for related planning, administration, and educational activities.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary may provide technical assistance to States in planning and operating activities to be carried out under this part.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>A State may not use amounts paid to it under section 1913 to—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>provide inpatient services in the case of amounts provided for community mental health centers or provide inpatient hospital services in the case of amounts provided for alcohol or drug abuse programs,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>make cash payments to intended recipients of health services,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>purchase or improve land, purchase, construct, or permanently improve (other than minor remodeling) any building or other facility, or purchase major medical equipment,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>satisfy any requirement for the expenditure of non-Federal funds as a condition for the receipt of Federal funds, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>provide financial assistance to any entity other than a public or nonprofit private entity.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">The Secretary may waive the limitation contained in paragraph (3) upon the request of a State if the Secretary finds that there are extraordinary circumstances to justify the waiver and that granting the waiver will assist in carrying out this part.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>A State may transfer not more than 7 percent of the amount allotted to the State under section 1912 for any fiscal year for use by the State under parts A and C of this title and title V of the Social <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 535, <i>Post</i>, p. 552.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s701">42 USC 701</ref>.</p></sidenote>Security Act in such fiscal year as follows: At any time in the first three quarters of the fiscal year a State may transfer not more than 3 percent of the allotment of the State for the fiscal year for such use, and in the last quarter of a fiscal year a State may transfer for such use not more than the remainder of the amount of its allotment which may be transferred.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>Of the amount paid to any State under section 1913, not more than 10 percent may be used for administering the funds made available under such section. The State will pay from non-Federal sources the remaining costs of administering such funds.</content> </subsection> </section> <section> <heading class="centered smallCaps">“application and description of activities</heading><num value="1915">“<inline class="smallCaps">Sec</inline>. 1915. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300x–4">42 USC 300x–4</ref>.</p></sidenote> <content class="inline">In order to receive an allotment for a fiscal year under section 1912(b) each State shall submit an application to the Secretary. Each such application shall be in such form and submitted by such date as the Secretary shall require. Each such application shall contain assurances that the legislature of the State has complied with the provisions of subsection (b) and that the State will meet the requirements of subsection (c).</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>After the expiration of the first fiscal year in which a State receives an allotment under section 1912(b), no funds shall be allotted to such State for any fiscal year under such section unless the legislature of the State conducts public hearings on the proposed use and distribution of funds to be provided under section 1913 for such fiscal year.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><chapeau>As part of the annual application required by subsection (a), the chief executive officer of each State shall certify as follows:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>The State agrees to use the funds alloted to it under section 1912 in accordance with the requirements of this part.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Except as provided in subsection (e), for fiscal years 1982, 1983, and 1984, the State agrees to make grants, subject to <page identifier="/us/stat/95/547">95 STAT. 547</page>paragraphs (3) and (4), to each community mental health center within the State which received a grant under the Community Mental Health Centers Act in fiscal year 1981 and which would <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2689">42 USC 2689 note</ref>.</p></sidenote>be eligible to receive a grant for its operation under that Act (as in effect on the day before the date of the enactment of the Omnibus Budget Reconciliation Act of 1981) for such fiscal year if such grants were made under such Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>The State agrees to make grants to community mental health centers in the State for the provision of comprehensive mental health services—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>principally to individuals residing in a defined geographic area (hereinafter in this section referred to as a mental health service area), with special attention to individuals who are chronically mentally ill,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>within the limits of its capacity, to any individual residing or employed in its mental health service area regardless of ability to pay for such services, current or past health condition, or any other factor, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>which are available and accessible promptly, as appropriate and in a manner which preserves human dignity and assures continuity and high quality care.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><chapeau>The State agrees to require that any community mental health center in the State receiving a grant from the State under this part provide—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>outpatient services, including specialized outpatient services for children, the elderly, individuals who are chronically mentally ill, and residents of its mental health service area who have been discharged from inpatient treatment at a mental health facility,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>24-hour-a-day emergency care services,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>day treatment or other partial hospitalization services,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>screening for patients being considered for admission to State mental health facilities to determine the appropriateness of such admission, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>consultation and education services.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>The State agrees to establish reasonable criteria to evaluate the effective performance of entities which receive funds from the State under this part and procedural and substantive independent State review procedures of the failure by the State to provide funds for any such entity.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><subparagraph class="inline"><num value="A">(A) </num><chapeau>The State agrees to use the funds allotted to it under section 1912 for fiscal year 1982 for the mental health and alcohol and drug abuse activities prescribed by section 1914(a) as follows:</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>The amount provided for mental health activities shall not exceed an amount which bears the same relationship to the funds allotted to the State for such fiscal year as the funds for mental health services which would have been received by the State and entities in the State in fiscal year 1981 under the Community Mental Health Centers Act and the Mental Health Systems Act if the Secretary had obligated <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1564">94 Stat. 1564</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9401">42 USC 9401 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>all of the funds appropriated for such Acts under Public Law 96–536 bore to the funds which would have been so received by the State and entities in the State in such fiscal year under such Acts and the funds received by the State and entities in the State in fiscal year 1980 under sections 301 and 312 of the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment, and Rehabilitation <page identifier="/us/stat/95/548">95 STAT. 548</page><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s4571/4578">42 USC 4571, 4578</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s1176/1177">21 USC 1176, 1177</ref>.</p></sidenote>Act of 1970 and sections 409 and 410 of the Drug Abuse Prevention, Treatment, and Rehabilitation Act.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>The amount provided for alcohol and drug abuse activities shall not exceed an amount which bears the same relationship to the funds allotted to the State for such fiscal year as the funds received by the State and entities in the State in fiscal year 1980 under sections 301 and 312 of the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment, and Rehabilitation Act of 1970 and sections 409 and 410 of the Drug Abuse Prevention, Treatment, and Rehabilitation Act bore to the funds received by the State and entities in the State in such fiscal year under such sections and the funds for mental health services which would have been received by the State and entities in the State in fiscal year 1981 under the Community Mental <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2689">42 USC 2689 note</ref>; <ref href="/us/stat/94/1564">94 Stat. 1564</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s9401">42 USC 9401 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3166">94 Stat. 3166</ref>.</p></sidenote>Health Centers Act and the Mental Health Systems Act if the Secretary had obligated all of the funds appropriated for such Acts under Public Law 96–536.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>The State agrees to use 95 percent of the funds allotted to it under section 1912 for fiscal year 1983 for the mental health and alcohol and drug abuse activities prescribed by section 1914(a) as prescribed by subparagraph (A).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>The State agrees to use 85 percent of the funds allotted to it under section 1912 for fiscal year 1984 for the mental health and alcohol and drug abuse activities prescribed by section 1914(a) as prescribed by subparagraph (A).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><chapeau>In any fiscal year, the State agrees to use funds for the alcohol and drug abuse activities prescribed by section 1914(a) as follows:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>Not less than 35 percent of the amount to be made available for such activities shall be used for programs and activities relating to alcoholism and alcohol abuse.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>Not less than 35 percent of the amount to he made available for such activities shall be used for programs and activities relating to drug abuse.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><content>Of the amount to be used in any fiscal year for alcohol or drug abuse activities, the State agrees to use not less than 20 percent of such amount for prevention and early intervention programs designed to discourage the abuse of alcohol or drugs, or both.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">“(9) </num><content>The State agrees to permit and cooperate with Federal investigations undertaken in accordance with section 1917.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">“(10) </num><content>That the State has identified those populations, areas, and localities in the State with a need for mental health, alcohol abuse and alcoholism, and drug abuse services.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="11">“(11) </num><content>That the Federal funds made available under section 1913 for any period will be so used as to supplement and increase the level of State, local, and other non-Federal funds that would in the absence of such Federal funds be made available for the programs and activities for which funds are provided under that section and will in no event supplant such State, local, and other non-Federal funds.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="12">“(12) </num><content>That the State has in effect a system to protect from inappropriate disclosure patient records maintained by the State in connection with an activity funded under this part or by any entity which is receiving payments from the allotment of the State under this part.</content></paragraph> <page identifier="/us/stat/95/549">95 STAT. 549</page> <paragraph class="firstIndent1 fontsize10"><num value="13">“(13) </num><content>That the State shall develop and implement arrangements, which are not excessively burdensome on the State, to locate jobs for employees affected adversely by actions taken by the State mental health authority to emphasize outpatient mental health services.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">The Secretary may not prescribe for a State the manner of compliance with the requirements of this subsection.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>The chief executive officer of a State shall, as part of the application required by subsection (a), also prepare and furnish the Secretary (in accordance with such form as the Secretary shall provide) with a description of the intended use of the payments the State will receive under section 1913 for the fiscal year for which the application is submitted, including information on the programs and activities to be supported and services to be provided. The description shall be made public within the State in such manner as to facilitate comment from any person (including any Federal or other public agency) during development of the description and after its transmittal. The description shall be revised (consistent with this section) throughout the year as may be necessary to reflect substantial changes in the programs and activities assisted by the State under this part, and any revision shall be subject to the requirements of the preceding sentence.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><chapeau>A State shall be required to make a grant to a community mental health center under subsection (c)(2) unless—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><chapeau>the State recommends on the basis of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>any Federal finding, Federal administrative action, or judicial proceeding with respect to any such community mental health center, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>a review of such center in accordance with the criteria and procedures required under subsection (c)(5),</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">that the State not be required to make such grants; and</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the Secretary approves the recommendation of the State under paragraph (1) based upon a substantive and procedural review of the record made by the State in making its recommendation under paragraph (1) which review demonstrates that the community mental health center is not providing services as prescribed by paragraphs (3) and (4) of subsection (c) or is engaged in a substantial misuse of funds.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">“reports and audits</heading><num value="1916"><inline class="smallCaps">Sec</inline>. 1916. </num><subsection class="inline"><num value="a">(a) </num><content>Each State shall prepare and submit to the Secretary <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300x–5">42 USC 300x–5</ref>.</p></sidenote>annual reports on its activities under this part. Such reports shall be in such form and contain such information as the Secretary determines (after consultation with the States and the Comptroller General) to be necessary (1) to determine whether funds were expended in accordance with this part and consistent with the needs within the State identified pursuant to section 1915(c)(10), (2) to secure a description of the activities of the State under this part, and (3) to secure a record of the purposes for which funds were spent, of the recipients of such funds, and of the progress made toward achieving the purposes for which the funds were provided. Copies of the report shall be provided, upon request, to any interested person (including any public agency).</content> </subsection> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>In determining the information that States must include in the report required by this subsection, the Secretary may not establish reporting requirements which are burdensome.</content></paragraph> <page identifier="/us/stat/95/550">95 STAT. 550</page> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Each State shall establish fiscal control and fund accounting procedures as may be necessary to assure the proper disbursal of and accounting for Federal funds paid to the State under section 1913 and funds transferred for use under this part.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Each State shall annually audit its expenditures from payments received under section 1913. Such State audits shall be conducted by an entity independent of any agency administering a program funded under this part and, in so far as practical, in accordance with the Comptroller General’s standards for auditing governmental organizations, programs, activities, and functions. Within 30 days following the date each audit is completed, the chief executive officer of the State shall transmit a copy of that audit to the Secretary.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Each State shall, after being provided by the Secretary with adequate notice and opportunity for a hearing within the affected State, repay to the United States amounts found not to have been expended in accordance with the requirements of this part or the certification provided under section 1915. If such repayment is not made, the Secretary shall, after providing the State with adequate notice and opportunity for a hearing, offset such amounts against the amount of any allotment to which the State is or may become entitled under section 1912.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>The State shall make copies of the reports and audits required by this section available for public inspection within the State.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>The Comptroller General of the United States shall, from time to time, evaluate the expenditures by States of grants under this part in order to assure that expenditures are consistent with the provisions of this part.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>Not later than October 1, 1983, the Secretary shall report to the Congress on the activities of the States which have received funds under this part and may include in the report any recommendations for appropriate changes in legislation.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>The provisions of title XVII of the Omnibus Budget Reconciliation <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 753.</p></sidenote>Act of 1981 shall not apply with respect to the audit of funds allotted under this part.</content> </subsection> </section> <section> <heading class="centered smallCaps">“withholding</heading><num value="1917">“<inline class="smallCaps">Sec</inline>. 1917. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300x–6">42 USC 300x–6</ref>.</p></sidenote> <content class="inline">The Secretary shall, after adequate notice and an opportunity for a hearing conducted within the affected State, withhold funds from any State which does not use its allotment in accordance with the requirements of this part or the certification provided under section 1915. The Secretary shall withhold such funds until the Secretary finds that the reason for the withholding has been removed and there is reasonable assurance that it will not recur.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary may not institute proceedings to withhold funds under paragraph (1) unless the Secretary has conducted an investigation concerning whether the State has used its allotment in accordance with the requirements of this part or the certification provided under section 1915. Investigations required by this paragraph shall be conducted within the affected State by qualified investigators.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The Secretary shall respond in an expeditious manner to complaints of a substantial or serious nature that a State has failed to use funds in accordance with the requirements of this part or the certification provided under section 1915.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>The Secretary may not withhold funds under paragraph (1) from a State for a minor failure to comply with the requirements of this part or the certification provided under section 1915.</content></paragraph> </subsection> <page identifier="/us/stat/95/551">95 STAT. 551</page> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall conduct in several States in each fiscal year investigations of the use of funds received by the States under this part in order to evaluate compliance with the requirements of this part and the certification provided under section 1915.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Comptroller General of the United States may conduct investigations of the use of funds received under this part by a State in order to insure compliance with the requirements of this part and the certification provided under section 1915.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Each State, and each entity which has received funds from an allotment made to a State under this part, shall make appropriate books, documents, papers, and records available to the Secretary or the Comptroller General of the United States, or any of their duly authorized representatives, for examination, copying, or mechanical reproduction on or off the premises of the appropriate entity upon a reasonable request therefor.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><content>In conducting any investigation in a State, the Secretary or the Comptroller General of the United States may not make a request for any information not readily available to such State or an entity which has received funds from an allotment made to the State under this part or make an unreasonable request for information to be compiled, collected, or transmitted in any form not readily available.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Paragraph (1) does not apply to the collection, compilation, or transmittal of data in the course of a judicial proceeding.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">“nondiscrimination</heading><num value="1918">“<inline class="smallCaps">Sec</inline>. 1918. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>For the purpose of applying the prohibitions <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300x–7">42 USC 300x–7</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s6101">42 USC 6101 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s794">29 USC 794</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1681">20 USC 1681</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2000d">42 USC 2000d</ref>.</p></sidenote>against discrimination on the basis of age under the Age Discrimination Act of 1975, on the basis of handicap under section 504 of the Rehabilitation Act of 1973, on the basis of sex under title IX of the Education Amendments of 1972, or on the basis of race, color, or national origin under title VI of the Civil Rights Act of 1964, programs and activities funded in whole or in part with funds made available under this part are considered to be programs and activities receiving Federal financial assistance.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>No person shall on the ground of sex or religion be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity funded in whole or in part with funds made available under this part.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>Whenever the Secretary finds that a State, or an entity that has received a payment from an allotment to a State under section 1912, has failed to comply with a provision of law referred to in subsection (a)(1), with subsection (a)(2), or with an applicable regulation (including one prescribed to carry out subsection (a)(2)), the Secretary shall notify the chief executive officer of the State and shall request him to secure compliance. If within a reasonable period of time, not to exceed sixty days, the chief executive officer fails or refuses to secure compliance, the Secretary may—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>refer the matter to the Attorney General with a recommendation that an appropriate civil action be instituted,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>exercise the powers and functions provided by title VI of the Civil Rights Act of 1964, the Age Discrimination Act of 1975, or section 504 of the Rehabilitation Act of 1973, as may be applicable, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>take such other action as may be provided by law.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>When a matter is referred to the Attorney General pursuant to subsection (b)(1), or whenever he has reason to believe that a State or an entity is engaged in a pattern or practice in violation of a provision <page identifier="/us/stat/95/552">95 STAT. 552</page>of law referred to in subsection (a)(1) or in violation of subsection (a)(2), the Attorney General may bring a civil action in any appropriate district court of the United States for such relief as may be appropriate, including injunctive relief.</content> </subsection> </section> <section> <heading class="centered smallCaps">“criminal penalty for false statements</heading><num value="1919">“<inline class="smallCaps">Sec</inline>. 1919. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300x–8">42 USC 300x–8</ref>.</p></sidenote> <chapeau class="inline">Whoever—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>knowingly and willfully makes or causes to be made any false statement or representation of a material fact in connection with the furnishing of items or services for which payment may be made by a State from funds allotted to the State under this part, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>having knowledge of the occurrence of any event affecting his initial or continued right to any such payment conceals or fails to disclose such event with an intent fraudulently to secure such payment either in a greater amount than is due or when no such payment is authorized,</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">shall be fined not more than $25,000 or imprisoned for not more than five years, or both.</continuation> </section> <section> <heading class="centered smallCaps">“transition provision</heading><num value="1920">“<inline class="smallCaps">Sec</inline>. 1920. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300x–9">42 USC 300x–9</ref>.</p></sidenote> <content class="inline">If at the request of a State the Secretary uses the allotment of the State during the transition period prescribed by title <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 753.</p></sidenote>XVII of the Omnibus Budget Reconciliation Act of 1981 for grants under this part, the Secretary shall make the grants in accordance with the requirements of paragraphs (6), (7), and (8) of section 1915(c). The Secretary shall deduct from the allotment of the State the amount the Secretary (after consultation with the State) requires to fund such programs.”.</content> </section> </part> <part><num value="C">“<inline class="smallCaps">Part C</inline>—</num><heading><inline class="smallCaps">Primary Care Block Grants</inline></heading> <section> <heading class="centered smallCaps">“planning grant’s</heading><num value="1921">“<inline class="smallCaps">Sec</inline>. 1921. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300y">42 USC 300y</ref>.</p></sidenote> <content class="inline">The Secretary may make grants to any State to undertake planning and other administrative activities to enable the State to administer allotments provided to it under this part. The amount of any grant to a State shall be determined by the Secretary but may not exceed $150,000.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>No grant may be made under subsection (a) unless an application therefore is submitted to, and approved by, the Secretary. Such an application shall be submitted in such form and manner and shall contain such information as the Secretary shall prescribe.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>For grants under subsection (a), there are authorized to be appropriated $2,500,000 for fiscal year 1982.</content> </subsection> </section> <section> <heading class="centered smallCaps">“authorization of appropriations</heading><num value="1922">“<inline class="smallCaps">Sec</inline>. 1922. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300y–1">42 USC 300y–1</ref>.</p></sidenote> <content class="inline">For allotments under section 1924 and for grants under section 330, there is authorized to be appropriated $302,500,000 for fiscal year 1983, and $327,000,000 for fiscal year 1984.</content> </section> <section> <heading class="centered smallCaps"><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254c">42 USC 254c</ref>.</p></sidenote>“grants under section 330</heading><num value="1923"><inline class="smallCaps">Sec</inline>. 1923. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300y–2">42 USC 300y–2</ref>.</p></sidenote> <content class="inline">If a State does not submit an application for an allotment under section 1924 for a fiscal year or does not qualify for such an allotment for such fiscal year, the Secretary shall use funds appropriated under section 1922 to make grants under section 330 to commu-<page identifier="/us/stat/95/553">95 STAT. 553</page>nity health centers within the State. Before making grants under section 330 for community health centers within a State the Secretary <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254c">42 USC 254c</ref>.</p></sidenote>shall consult with the chief executive officer of the State and with appropriate local officials. The amount of funds from appropriations under section 1922 which may be used for grants for a fiscal year under section 330 for community health centers shall be the amount remaining after allotments are made under section 1924 for such fiscal year.</content> </section> <section> <heading class="centered smallCaps">“allotments</heading><num value="1924">“<inline class="smallCaps">Sec</inline>. 1924 </num><subsection class="inline"><num value="a">(a). </num><content>If a State submits an application under section 1927 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300y–3">42 USC 300y–3</ref>.</p></sidenote>for an allotment for a fiscal year and is determined by the Secretary to be eligible under such section for such an allotment, the Secretary shall allot to such State from the amount appropriated under section 1922 for such fiscal year an amount which bears the same ratio to the amount appropriated under section 1922 for that fiscal year as the amount granted for fiscal year 1982 by the Secretary to community health centers in the State under section 330 bore to the amount granted for that fiscal year by the Secretary under such section to centers in all States from appropriations for that fiscal year.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>If the Secretary—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>receives a request from the governing body of an Indian tribe or tribal organization within any State that funds under this part be provided directly by the Secretary to such tribe or organization, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>determines that the members of such tribe or tribal organization would be better served by means of grants made directly by the Secretary under this part,</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">the Secretary shall reserve from amounts which would otherwise be allotted to such State under subsection (a) for the fiscal year the amount determined under paragraph (2).</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary shall reserve for the purpose of paragraph (1) from amounts that would otherwise be allotted to such State under subsection (a) an amount equal to the amount which bears the same ratio to the State’s allotment for the fiscal year involved as the total amount granted for fiscal year 1982 by the Secretary to such tribe or tribal organization under section 330 bore to the total amount granted for such fiscal year by the Secretary to the State and entities (including Indian tribes and tribal organizations) in the State under section 330.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>From the amount reserved by the Secretary on the basis of a determination under this subsection, the Secretary shall make grants under section 330 to the Indian tribe or tribal organization serving the individuals for whom such a determination has been made.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>The terms ‘Indian tribe’ and ‘tribal organization’ have the same meaning given such terms in section 4(b) and section 4(c) of the Indian Self-Determination and Education Assistance Act. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s450b">25 USC 450b</ref>.</p></sidenote></content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">“payments under allotments to states</heading><num value="1925">“<inline class="smallCaps">Sec</inline>. 1925. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>For each fiscal year, the Secretary shall make <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300y–4">42 USC 300y–4</ref>.</p></sidenote>payments, as provided by section 203 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4213), from amounts appropriated for allotments (other than any amount reserved under section 1924(b)) under section 1924(a) to each State which receives such an allotment.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Any amount paid to a State for a fiscal year and remaining unobligated at the end of such year shall remain available to such <page identifier="/us/stat/95/554">95 STAT. 554</page>State for the purposes for which it was made for the next fiscal year if the Secretary determines that the State acted in accordance with section 1926(a)(1) and there is good cause for funds remaining unobligated.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>The Secretary, at the request of a State, may reduce the amount of payments under subsection (a) by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the fair market value of any supplies or equipment furnished to the State, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the amount of the pay, allowances, and travel expenses of any officer or employee of the Government when detailed to the State and the amount of any other costs incurred in connection with the detail of such officer or employee,</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">when the furnishing of supplies or equipment or the detail of an officer or employee is for the convenience of and at the request of the State and for the purpose of conducting activities described in section 1926. The amount by which any payment is so reduced shall be available for payment by the Secretary of the costs incurred in furnishing the supplies or equipment or in detailing the personnel, on which the reduction of the payment is based, and the amount shall be deemed to be part of the payment and shall be deemed to have been paid to the State.</continuation> </subsection> </section> <section> <heading class="centered smallCaps">“grants to community health centers</heading><num value="1926">“<inline class="smallCaps">Sec</inline>. 1926. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300y–5">42 USC 300y–5</ref>.</p></sidenote> <content class="inline">In fiscal years 1983 and 1984 each State shall use for grants under paragraphs (2) and (3) the entire amount allotted to it under section 1924 for such fiscal year and the entire amount required to be made available under paragraph (4).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>From the amounts paid to it under section 1925 for fiscal year 1983 and from the State funds required to be made available under paragraph (4) for such fiscal year, each State shall make grants to each community health center which received a grant for its operation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254c">42 USC 254c</ref>.</p></sidenote>under section 330(d) for fiscal year 1982 and which meets the requirements of this paragraph. A grant may be made under this paragraph to a community health center only—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>if the center has made an application to the State in accordance with section 330(e), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>if the center meets the requirements for receiving a grant under section 330 for its operation.</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">The amount of a grant under this paragraph to a center shall be not less than the amount the center received under section 330(d) for fiscal year 1982. If the State determines under subparagraph (B) that a community health center which has applied for a grant does not meet the requirements referred to in that subparagraph, the Secretary shall review the State’s determination. If the Secretary finds that the center does not meet such requirements, the State may withhold a grant to the center under this paragraph.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>In fiscal years 1983 and 1984, each State shall make grants to community health centers within the State which serve medically underserved populations and which meet the requirements of this paragraph. A grant under this paragraph for fiscal year 1983 shall be made from any amount not obligated under paragraph (2) or (4) for such fiscal year, and a grant for fiscal year 1984 shall be made from the amounts paid to it under section 1925 for the fiscal year and from the State funds required to be made available under paragraph (4) for the fiscal year. A grant may be made under this paragraph to a community health center only—</chapeau> <page identifier="/us/stat/95/555">95 STAT. 555</page> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>if the center has made an application to the State in accordance with section 330(e), and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254c">42 USC 254c</ref>.</p></sidenote></content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>if the center meets the requirements for receiving a grant under section 330 for its operation.</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">The limitation prescribed by section 330(g)(3) shall apply with respect to grants under this paragraph. States shall make grants under this paragraph in such a manner that medically underserved populations which have been served by community health centers and which are still medically underserved populations will continue to receive health care, and in making such grants a State shall not, to the extent practicable, disrupt established provider-patient relationships.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><subparagraph class="inline"><num value="A">(A) </num><content>In fiscal year 1983 a State which receives an allotment under section 1924 for that fiscal year shall make available, from State funds, for the grants described in paragraphs (2) and (3) and for State administrative expenses for such grants for such fiscal year an amount equal to 20 percent of its allotment. In fiscal year 1984 a State which receives an allotment under section 1924 for that fiscal year shall make available, from State funds, for the grants described in paragraphs (2) and (3) and for State administrative expenses for such grants for such fiscal year an amount equal to one-third of its allotment.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>A State, at the request of a community health center, may reduce the amount of the State’s contribution under subparagraph (A) to the center by—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the fair market value of any supplies or equipment furnished to the center, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the amount of the pay, allowances, and travel expenses of any officer or employee of the State when detailed to the center and the amount of any other costs incurred in connection with the detail of such officer or employee,</content> </clause> <continuation class="indent0 firstIndent0 fontsize10">when the furnishing of supplies or equipment or the detail of an officer or employee is for the convenience of and at the request of the center and for the purpose of activities centers assisted under this section. The amount by which any payment is so reduced shall be available for payment by the State of the costs incurred in furnishing the supplies or equipment or in detailing the personnel, on which the reduction of the payment is based, and the amount shall be deemed to be part of the payment and shall be deemed to have been paid by the State under subparagraph (A).</continuation> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>A State may not use any funds paid to it under section 1925 for the purposes of administration of the grants required by paragraphs (2) and (3).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><chapeau>For purposes of this part—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the term ‘community health center’ has the same meaning <sidenote><p class="indent0 firstIndent0 fontsize8">“Community health center.”</p></sidenote>as that term has under section 330(a), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>a medically underserved population is such a population designated by the Secretary under section 330(b)(3).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>A State may not use amounts paid to it under section 1925 to—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>provide inpatient services, except in fiscal year 1983 in the case of a community health center which used funds provided under section 330 for fiscal year 1982 to provide such services,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>make cash payments to intended recipients of health services,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>purchase or improve land, purchase, construct, or permanently improve (other than minor remodeling) any building or other facility, or purchase major medical equipment,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>satisfy any requirement for the expenditure of non-Federal funds as a condition for the receipt of Federal funds, or</content></paragraph> <page identifier="/us/stat/95/556">95 STAT. 556</page> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>provide financial assistance to any entity other than a public or nonprofit private community health center.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">The Secretary may waive the limitation contained in paragraph (3) upon the request of a State if the Secretary finds that there are extraordinary circumstances to justify the waiver and that granting the waiver will assist in carrying out this part. The prohibition prescribed by this subsection (other than paragraph (4)) shall apply with respect to any amount required to be made available under subsection (a)(4).</continuation> </subsection> </section> <section> <heading class="centered smallCaps">“application; assurances; description of activities</heading><num value="1927">“<inline class="smallCaps">Sec</inline>. 1927. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300y–6">42 USC 300y–6</ref>.</p></sidenote> <content class="inline">No State may receive an allotment for a fiscal year under section 1924(a) unless an application therefor has been submitted to and approved by the Secretary. Such an application shall be submitted before the beginning of the fiscal year for which the allotment applied for will be made. Each such application shall be in such form and submitted by such date as the Secretary shall require. Each such application shall contain assurances that the legislature of the State has complied with the provisions of subsection (b) and that the State will meet the requirements of subsection (c).</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>After the expiration of the first fiscal year in which a State receives an allotment under section 1924, no funds shall be allotted to such State for any fiscal year under such section unless the legislature of the State conducts public hearings on the proposed use and distribution of funds to be provided under section 1925 for such fiscal year.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><chapeau>As part of the annual application required by subsection (a), the chief executive officer of each State shall certify that the State agrees—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>to use the funds alloted to it under section 1924 in accordance with the requirements of section 1926; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>to establish, after providing reasonable notice and opportunity for the submission of comments, reasonable criteria to evaluate the fiscal, managerial, and clinical performance of community health centers; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>to establish procedural and substantive independent State review procedures relating to the failure by the State to provide funds for any such center and to the reduction of the funds paid to a community health center in fiscal year 1984 to an amount which is significantly less than the amount paid to the center by the State under section 1926 in fiscal year 1983.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">The application of a State shall also contain assurances, satisfactory to the Secretary, that the State has the administrative capability to administer grants under section 1926, to determine the need for services of community health centers by medically underserved populations, and to evaluate the performance of community health centers.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><content>The chief executive officer of the State shall, as part of the application required by subsection (a), prepare and furnish to the Secretary (in accordance with such form as the Secretary shall provide) a description of the intended use of the payments the State will receive under section 1925 for that fiscal year and the funds the State is required to obligate under section 1926(a)(4) for that fiscal year.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The description required by paragraph (1) shall be made public within the State in such manner as to facilitate comment from any person (including any Federal or other public agency) during develop-<page identifier="/us/stat/95/557">95 STAT. 557</page>ment of the description and after its transmittal. The description shall be revised (consistent with this section) throughout the year as may be necessary to reflect substantial changes in the programs and activities assisted under this part, and any revision shall be subject to the requirements of the preceding sentence.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">“reports and audits</heading><num value="1928">“<inline class="smallCaps">Sec</inline>. 1928. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Each State shall prepare and submit to the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300y–7">42 USC 300y–7</ref>.</p></sidenote>Secretary annual reports on its activities under this part. Such reports shall be in such form and contain such information as the Secretary determines (after consultation with the States and the Comptroller General) to be necessary (A) to determine whether funds were expended in accordance with sections 1926 and 1927(c), (B) to secure a description of the activities under this part, and (C) to secure a record of the purposes for which funds were spent, of the recipients of such funds and of the progress made toward achieving the purposes for which the funds were provided. Copies of the report shall be provided, upon request, to any interested person (including any public agency).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>In determining the information that States must include in the report required by this subsection, the Secretary may not establish reporting requirements which are burdensome.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Each State shall establish fiscal control and fund accounting procedures as may be necessary to assure the proper disbursal of and accounting for Federal funds paid to the State under section 1925.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Each State shall annually audit its expenditures from payments received under section 1925. Such State audits shall be conducted by an entity independent of any agency administering a program funded under this part and, to the extent practicable, in accordance with the Comptroller’s General standards for auditing governmental organizations, programs, activities, and functions. Within 30 days following the date each audit is completed, the chief executive officer of the State shall transmit a copy of that audit to the Secretary.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Each State shall, after being provided by the Secretary with adequate notice and opportunity for a hearing within the affected State, repay to the United States amounts found not to have been expended in accordance with the requirements of section 1926 or the certification and assurances provided under section 1927. If such repayment is not made, the Secretary shall, after providing the State with adequate notice and opportunity for a hearing, offset such amounts against the amount of any allotment to which the State is or may become entitled under section 1924.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>The State shall make copies of the reports and audits required <sidenote><p class="indent0 firstIndent0 fontsize8">Public inspection.</p></sidenote>by this section available for public inspection within the State.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>The Comptroller General of the United States shall, from time to time, evaluate the expenditures by States of grants under this part in order to assure that expenditures are consistent with the provisions of this part.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>Not later than January 1, 1984, the Secretary shall report to the Congress on the activities of the States which have received funds under this part and may include in the report any recommendations for appropriate changes in legislation.</content></paragraph> </subsection> </section> <page identifier="/us/stat/95/558">95 STAT. 558</page> <section> <heading class="centered smallCaps">“withholding</heading><num value="1929">“<inline class="smallCaps">Sec</inline>. 1929. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Notice and hearing.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300y–8">42 USC 300y–8</ref>.</p></sidenote> <content class="inline">The Secretary shall, after adequate notice and an opportunity for a hearing conducted within the affected State and subject to paragraphs (2) and (3) of this subsection, withhold funds from any State which does not use its allotment in accordance with the requirements of section 1926 or 1927. The Secretary shall withhold such funds until the Secretary finds that the reason for the withholding has been removed and, there is reasonable assurance that it will not recur. If the Secretary withholds funds from a State for its failure to provide grants to community health centers in accordance with section 1926, the Secretary shall use the funds withheld to make such grants in accordance with such section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary may not institute proceedings to withhold funds under this section unless the Secretary has conducted an investigation concerning whether the State has used its allotment in accordance with this part. Investigations required by this paragraph shall be conducted within the affected State by qualified investigators.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The Secretary may not withhold funds under this subsection from a State for a minor failure to comply with the provisions of this part.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>The Secretary shall respond in an expeditious manner to complaints of a substantial or serious nature that a State has failed to use funds in accordance with the requirements of this part.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall conduct in several States in each fiscal year investigations of the use of funds received by the States under this part in order to evaluate compliance with the requirements of this part.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Comptroller General of the United States may conduct an investigation of the use of funds received under this part by a State in order to insure compliance with the requirements of this part.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>A State shall make appropriate books, documents, papers, and records available to the Secretary or the Comptroller General of the United States, or any of their duly authorized representatives, for examination, copying, or mechanical reproduction on or off the premises of the appropriate entity upon a reasonable request therefor.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><subsection class="inline"><num value="1">(1) </num><content>In conducting any investigation, the Secretary or the Comptroller General of the United States may not request any information not readily available to such State or to any community health center which has received a grant under this part and may not make an unreasonable request for information to be compiled, collected, or transmitted in any form not readily available.</content> </subsection> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Paragraph (1) does not apply to the collection, compilation, or transmittal of data in the course of a judicial proceeding.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">“nondiscrimination</heading><num value="1930">“<inline class="smallCaps">Sec</inline>. 1930. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300y–9">42 USC 300y–9</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s6101">42 USC 6101 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s794">29 USC 794</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1681">20 USC 1681</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2000d">42 USC 2000d</ref>.</p></sidenote> <content class="inline">For the purpose of applying the prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975, on the basis of handicap under section 504 of the Rehabilitation Act of 1973, on the basis of sex under title IX of the Education Amendments of 1972, or on the basis of race, color, or national origin under title VI of the Civil Rights Act of 1964, programs and activities funded in whole or in part with funds made available under this part are considered to be programs and activities receiving Federal financial assistance.</content></paragraph> <page identifier="/us/stat/95/559">95 STAT. 559</page> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>No person shall on the ground of sex or religion be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity funded in whole or in part with funds made available under this part.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>Whenever the Secretary finds that a State or an entity that has received a payment from an allotment to a State under section 1924 has failed to comply with a provision of law referred to in subsection (a)(1), with subsection (a)(2), or with an applicable regulation (including one prescribed to carry out subsection (a)(2)), the Secretary shall notify the chief executive officer of the State and shall request him to secure compliance. If within a reasonable period of time, not to exceed sixty days, the chief executive officer fails or refuses to secure compliance, the Secretary may—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>refer the matter to the Attorney General with a recommendation that an appropriate civil action be instituted,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>exercise the powers and functions provided by title VI of the Civil Rights Act of 1964, the Age Discrimination Act of 1975, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2000d">42 USC 2000d</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s6101">42 USC 6101 note</ref>.</p></sidenote>or section 504 of the Rehabilitation Act of 1973, as may be applicable, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>take such other action as may be provided by law. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s794">29 USC 794</ref>.</p></sidenote></content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>When a matter is referred to the Attorney General pursuant to subsection (b)(1), or whenever he has reason to believe that a State or an entity is engaged in a pattern or practice in violation of a provision of law referred to in subsection (a)(1) or in violation of subsection (a)(2), the Attorney General may bring a civil action in any appropriate district court of the United States for such relief as may be appropriate, including injunctive relief.</content> </subsection> </section> <section> <heading class="centered smallCaps">“criminal penalty for false statements</heading><num value="1931">“<inline class="smallCaps">Sec</inline>. 1931. </num><chapeau>Whoever— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300y–10">42 USC 300y–10</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>knowingly and willfully makes or causes to be made any false statement or representation of a material fact in connection with the furnishing of items or services for which payment may be made by a State from funds allotted to the State under this part, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>having knowledge of the occurrence of any event affecting his initial or continued right to any such payment conceals or fails to disclose such event with an intent fraudulently to secure such payment either in a greater amount than is due or when no such payment is authorized,</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">shall be fined not more than $25,000 or imprisoned for not more than five years, or both.</continuation> </section> <section> <heading class="centered smallCaps">“administration</heading><num value="1932">“<inline class="smallCaps">Sec</inline>. 1932. </num><content>Title XVII of the Omnibus Budget Reconciliation Act of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300y–11">42 USC 300y–11</ref>.</p><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 753.</p></sidenote>1981 shall not apply with respect to the grant program authorized by this part.”.</content> </section> </part>
repeals and conforming amendmentsSec. 902. (a) Sections 401 and 402 of the Health Services and Centers Amendments of 1978 are repealed.

42 USC 247b–1, 247b–2.

 (b) Sections 314(d) and subpart III of part D of title III of the Public Health Service Act are repealed.

42 USC 246, 255.

 (c) (1) The second sentence of section 311(a) of the Public Health Service Act is amended—

42 USC 243.

 (A) by inserting “and with respect to other public health matters” after “diseases”, and 95 STAT. 560 (B) by striking out “and in carrying out the purposes of section

42 USC 243.

314”. (2)

42 USC 246.

 The first sentence of section 311(b) of such Act is amended by striking out “the purposes of section 314” and inserting in lieu thereof “public health activities”. (d) (1)

Repeals.

42 USC 300d–300d–9, 300d–21.

 Sections 1201, 1202, 1203, 1204, 1205(d), 1206, 1207(a), 1208, 1209, and 1210, and part B of title XII of the Public Health Service Act are repealed. (2) Title XII of such Act is amended by striking out— “Part A—Assistance for Emergency Medical Services Systems”. (3)

42 USC 300d–4.

42 USC 300d–6.

42 USC 201.

Repeals.

94 Stat. 1564.

42 USC 9411.

42 USC 9421.

42 USC 9431.

42 USC 9451.

42 USC 9502.

42 USC 9512.

42 USC 9521.

42 USC 9523.

42 USC 229d, 2689m.

Repeal.

42 USC 2689 note.

42 USC 9411.

42 USC 9412.

 Section 1205 of such Act is redesignated as section 1201. (4) Section 1207(b) of such Act is redesignated as section 1202. (5) Section 2(f) of such Act is amended by striking out “1201(2),”. (e) (1) Section 101, part B of title I, titles II and III, and sections 502, 602, 801, and 806 of the Mental Health Systems Act are repealed. (2) (A) Section 225 of the Community Mental Health Centers Act is transferred to title V of the Public Health Service Act, inserted after section 514, redesignated as section 515, and amended (A) by striking out “this title” and inserting in lieu thereof “the Community Mental Health Centers Act” and (B) by inserting “of the Community Mental Health Centers Act” after “section 222”. (B) The Community Mental Health Centers Act is repealed. (f) (1) Title I of the Mental Health Systems Act is amended— (A) by striking out “Part A—Definitions”; (B) by striking out “other” in the section heading for section 102; and (C) by striking out paragraphs (3), (4), (6), and (7) of section 102, and by redesignating paragraph (5) of such section as paragraph (3). (2) The table of contents in the first section of such Act is amended by striking out the items relating to sections 101, 105, 106, 107, 201 through 208, 301 through 303, 305 through 309, 315 through 317, 321, 325 through 328, 502, 602, 801, and 806, parts A and B of title I, title II, title III, and parts A, B, C, D, and E of title III. (3) The table of section 102 in such table of contents is amended to read as follows: “Sec. 102. (20)

94 Stat. 1602.

42 USC 9511.

 Section 601(a) of such Act is amended— (A) by striking out “community mental health centers and other” in paragraph (5); and (B) by striking out paragraph (6). (g) (1) The second sentence of section 455(a) of the Public Health

94 Stat. 1608.

42 USC 289k–1.

Service Act is amended by striking out “, the Mental Retardation Facilities and Community Mental Health Centers Construction Act of 1963 (other than part C of title II), and the Mental Health Systems Act”. (2)

42 USC 225a.

 Section 507 of such Act is amended by striking out “, appropriations available under the Community Mental Health Centers Act for construction and staffing of community mental health centers and alcoholism and narcotic addiction, drug abuse, and drug dependence facilities,”. (3)

42 USC 229b.

 Section 513 of such Act is amended by striking out “the Mental Retardation Facilities Construction Act, the Community Mental Health Centers Act,”. 95 STAT. 561 (4) Section 1513(e)(1)(A)(i) of such Act is amended by striking out “,

94 Stat. 1608.

42 USC 300l–2.

the Community Mental Health Centers Act, the Mental Health Systems Act, sections 409 and 410 of the Drug Abuse Prevention, Treatment, and Rehabilitation Act, or the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment, and Rehabilitation Act of 1970”. (5) Section 1521(d)(2)(A) of such Act is amended—

42 USC 300m.

 (A) by striking out “, the Community Mental Health Centers Act,” and inserting in lieu thereof “or”; and (B) by striking out “, and the Drug Abuse Office and Treatment Act of 1972”. (6) Section 1524(c)(6)(A) of such Act is amended by striking out “the

94 Stat. 3191.

42 USC 300m–3.

Community Mental Health Centers Act, section 409 or 410 of the Drug Abuse Office and Treatment Act of 1972, or the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment, and Rehabilitation Act of 1970,”. (h) The amendments made by this section shall take effect October 1,

Effective date.

42 USC 229d note.

1981.
one-year extension of community health centers and primary care research and demonstrationsSec. 903. (a) The first sentence of section 330(g)(2) (42 U.S.C. 254c(g)(2)) of the Public Health Service Act is amended by striking out “and” after “1980,” and by striking out the period and inserting in lieu thereof the following: “and $280,000,000 for the fiscal year ending September 30, 1982. For authorizations for appropriations for fiscal years 1983 and 1984, see section 1922.”.

Ante, p. 552.

 (b) (1) Section 340(g)(2) of the Public Health Service Act (42 U.S.C. 256(g)(2)) is amended by striking out “and” after “1980,” and by striking out the period and inserting in lieu thereof the following: “and $3,000,000 for the fiscal year ending September 30, 1982. No funds may be appropriated under this paragraph or paragraph (1) for a fiscal year beginning after September 30, 1982.”. (c) Effective October 1, 1982, section 340 of such Act is repealed.

Repeal.
services to migrants by community health centersSec. 904. The Secretary of Health and Human Services shall review the performance of community health centers which have received grants under section 329 of the Public Health Service Act (relating to

42 USC 254b.

migrant health centers) to determine if the community health centers have provided services to migrants in a manner which is consistent with the needs of the migrants. In determining if the services have been provided in such a manner, the Secretary shall consider the hours of operation of a center, the bilingual capabilities of a center’s staff, and the ability of the center’s staff to detect, report, and treat adverse health effects resulting from exposure to pesticides. The Secretary shall report the results of the review conducted under

Report to Congress.

this section to the Congress not later than six months after the date of the enactment of this section and shall include in the report actions taken by the Secretary to assure that community health centers receiving grants under such section 329 will provide services to migrants in a manner consistent with their needs.
95 STAT. 562
criteria for determining areas and population groups in need of services of community health centersSec. 905. (a) Section 330(b)(3) of the Public Health Service Act (42 U.S.C. 254c(b)(3)) is amended by adding at the end the following:

Ante, p. 535.

“After the date of the enactment of part A of title XIX, the Secretary may not designate a medically underserved population or remove the designation of such a population unless the Secretary provides reasonable notice and opportunity for comment and consults with the chief executive officer of the State in which the population is located and appropriate local officials. The Secretary shall prescribe criteria for determining the specific shortages of personal health services of an area or population group. Such criteria shall include infant mortality in an area or population group, other factors indicative of the health status of a population group or residents of an area, the ability of the residents of an area or of a population group to pay for health services and their accessibility to them, and the availability of health professionals to residents of an area or to a population group.”. (b) Section 330(e)(2) of such Act is amended by inserting before the second sentence the following: “Such an application shall also include a demonstration by the applicant that the area or a population group to be served by the applicant has a shortage of personal health services and that the center will be located so that it will provide services to the greatest number of persons residing in such area or included in such population group. Such a demonstration shall be made on the basis of the criteria prescribed by the Secretary under subsection (b)(3) or on any other criteria which the Secretary may prescribe to determine if the area or population group to be served by the applicant has a shortage of personal health services.”.
audits of grants to community health centersSec. 906. Section 330 of the Public Health Service Act (42 U.S.C. 254c) is amended by adding at the end the following: “(h) (1) Each entity which receives a grant under subsection (d) shall provide for an independent annual financial audit of any books, accounts, financial records, files, and other papers and property which relate to the disposition or use of the funds received under such grant and such other funds received by or allocated to the project for which such grant was made. For purposes of assuring accurate, current, and complete disclosure of the disposition or use of the funds received, each such audit shall be conducted in accordance with generally accepted accounting principles. Each audit shall evaluate— “(A) the entity’s implementation of the guidelines established by the Secretary respecting cost accounting, “(B) the processes used by the entity to meet the financial and program reporting requirements of the Secretary, and “(C) the billing and collection procedures of the entity and the relation of the procedures to its fee schedule and schedule of discounts and to the availability of health insurance and public programs to pay for the health services it provides. A report of each such audit shall be filed with the Secretary at such time and in such manner as the Secretary may require. “(2)

Recordkeeping.

 Each entity which receives a grant under subsection (d) shall establish and maintain such records as the Secretary shall by regulation require to facilitate the audit required by paragraph (1). The Secretary may specify by regulation the form and manner in which such records shall be established and maintained. 95 STAT. 563 “(3) Each entity which is required to establish and maintain records or to provide for an audit under this subsection shall make such books, documents, papers, and records available to the Secretary or the Comptroller General of the United States, or any of their duly authorized representatives, for examination, copying, or mechanical reproduction on or off the premises of such entity upon a reasonable request therefor. The Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, shall have the authority to conduct such examination, copying, and reproduction. “(4) The Secretary may, under appropriate circumstances, waive the application of all or part of the requirements of this subsection to a community health center.”.
Subtitle B—Developmental Disabilities
extension of programsSec. 911. (a) The first sentence of section 113(b)(2) of the Developmental Disabilities Assistance and Bill of Rights Act (hereinafter in this subtitle referred to as the “Act”) (42 U.S.C 6012(b)(2)) is amended by striking out “and” after “1980,” and by inserting before the period a comma and the following: “$8,000,000 for the fiscal year ending September 30, 1982, $8,000,000 for the fiscal year ending September 30, 1983, and $8,000,000 for the fiscal year ending September 30, 1984”. (b) Section 123(a) of the Act (42 U.S.C. 6033(a)) is amended by striking out “and” after “1980,” and by inserting before the period a comma and the following: “$7,500,000 for the fiscal year ending September 30, 1982, $7,500,000 for the fiscal year ending September 30, 1983, and $7,500,000 for the fiscal year ending September 30, 1984”. (c) Section 131 of the Act (42 U.S.C. 6061) is amended by striking out “and” after “1980,” and by inserting before the period a comma and the following: “$43,180,000 for the fiscal year ending September 30, 1982, $43,180,000 for the fiscal year ending September 30, 1983, and $43,180,000 for the fiscal year ending September 30, 1984”.
evaluation systemSec. 912. (a) Section 110 of the Act (42 U.S.C. 6009) is repealed.

Repeal.
special project grantsSec. 913. Section 145 of the Act (42 U.S.C. 6081) is amended to read as follows:
“grant authority“Sec. 145. (a) The Secretary may make grants to public or nonprofit private entities for— “(1) demonstration projects— “(A) which are conducted in more than one State, “(B) which involve the participation of two or more Federal departments or agencies, or “(C) which are otherwise of national significance, and which hold promise of expanding or otherwise improving services to persons with developmental disabilities (especially those who are disadvantaged or multihandicapped); and 95 STAT. 564 “(2) demonstration projects (including research, training, and evaluation in connection with such projects) which hold promise of expanding or otherwise improving protection and advocacy services relating to the State protection and advocacy system

42 USC 6012.

described in section 113. Projects for the evaluation and assessment of the quality of services provided persons with developmental disabilities which meet the requirements of subparagraphs (A), (B), and (C) of paragraph (1) may be included as projects for which grants are authorized under such paragraph. “(b) No grant may be made under subsection (a) unless an application therefor has been submitted to, and approved by, the Secretary. Such application shall be in such form, submitted in such manner, and contain such information as the Secretary shall by regulation prescribe. The Secretary may not approve such an application unless each State in which the applicant’s project will be conducted has a

42 USC 6063.

State plan approved under section 133. The Secretary shall provide to the State Planning Council (established under section 137) for each

42 USC 6067.

State in which an applicant’s project will be conducted an opportunity to review the application for such project and to submit its comments on the application. “(c) Payments under grants under subsection (a) may be made in advance or by way of reimbursement, and at such intervals and on such conditions, as the Secretary finds necessary. The amount of any grant under subsection (a) shall be determined by the Secretary. “(d)

Appropriation authorization.

 For the purpose of grants under subsection (a), there are authorized to the appropriated $2,500,000 for the fiscal year ending September 30, 1982, $2,500,000 for the fiscal year ending September 30, 1983, and $2,500,000 for the fiscal year ending September 30, 1984.”.
Subtitle C—Health Services Research, Statistics, and Technology; Medical Libraries; and National Research Service Awards
references in subtitleSec. 916. Whenever in this subtitle an amendment or repeal is expressed in terms of an amendment to, or a repeal of, a section or other provision, the reference shall be considered to be made to a

42 USC 201 note.

section or other provision of the Public Health Service Act.
authorizations for health services research, statistics, and technologySec. 917. (a) The first sentence of section 308(i)(1) (42 U.S.C. 242m(i)(1)) is amended by striking out “and” after “1980,” and by inserting before the period a comma and the following: “$20,000,000 for the fiscal year ending September 30, 1982, $22,000,000 for the fiscal year ending September 30, 1983, and $24,000,000 for the fiscal year ending September 30, 1984”. (b) Section 308(i)(2) is amended by striking out “and” after “1980,” and by inserting before the period a comma and the following: “$39,000,000 for the fiscal year ending September 30, 1982, $39,000,000 for the fiscal year ending September 30, 1983, and $39,000,000 for the fiscal year ending September 30, 1984”. 95 STAT. 565 (c) (1) The first sentence of section 309(i) (42 U.S.C. 242n(i)) is amended by striking out “and” after “1980,” and by inserting before the period a comma and the following: “$3,000,000 for the fiscal year ending September 30, 1982, $4,000,000 for the fiscal year ending September 30, 1983, and $5,000,000 for the fiscal year ending September 30, 1984”. (2) The second sentence of such section is amended by striking out “the fiscal year ending September 30, 1981,” and inserting in lieu thereof “for each of the fiscal years ending September 30, 1982, September 30, 1983, and September 30, 1984,”.
general authoritiesSec. 918. (a) Section 304(a)(3) (42 U.S.C. 242b(a)(3)) is amended— (1) by striking out “shall” and inserting in lieu thereof “may”, and (2) by striking out “and” the first three places it occurs and inserting in lieu thereof “or”. (b) (1) The first sentence of section 304(d)(1) is amended by striking out “and the National Academy of Sciences (acting through the Institute of Medicine and other appropriate units) shall, jointly and” and inserting in lieu thereof “, with the advice and assistance of the National Academy of Sciences (acting through the Institute of Medicine and other appropriate units), shall,”. (2) The second sentence of such section is amended by striking out “and the National Academy of Sciences (hereinafter in this subsection referred to as the ‘Academy’)”. (3) Section 304(d)(3) is amended by striking out “and the Academy” each place it appears. (c) Section 304(d)(3) is amended by striking out “every two years” and inserting in lieu thereof “every three years”. (d) (1) Subsections (b)(1) and (c)(1) of section 304 are each amended by striking out “Health, Education, and Welfare” and inserting in lieu thereof “Health and Human Services”. (2) Subsection (d)(3) of such section is amended by striking out “Committee on Interstate and Foreign Commerce” and inserting in lieu thereof “Committee on Energy and Commerce”.
national center for health services researchSec. 919. (a) (1) The first sentence of section 305(d)(1) (42 U.S.C. 242c(d)(1)) is amended by striking out “health services, research, evaluations” and inserting in lieu thereof “health services research, evaluations, training, policy analysis,”. (2) (A) The second sentence of such section is amended (i) by striking out “six of such centers” and inserting in lieu thereof “three of such centers”, and (ii) by striking out “three national special emphasis centers” and all that follows through “health care delivery;” and inserting in lieu thereof “two national special emphasis centers,”. (B) Section 308(i)(1) (42 U.S.C. 242m(i)(1)) (as amended by section 917(a) of this Act) is further amended by adding at the end thereof the following new sentence: “Of the amounts appropriated under this paragraph for each of the fiscal years ending September 30, 1982, September 30, 1983, and September 30, 1984, not more than $1,500,000 may be used for grants and contracts for all the costs of planning, establishing, and operating centers under section 305(d).” 95 STAT. 566 (3)

42 USC 242c.

 Section 305(d)(2)(B)(iv) is amended by striking out “demonstrations, and evaluations” and inserting in lieu thereof “evaluations, policy analysis, and demonstrations”. (b) (1) Paragraph (4) of section 305(b) is amended to read as follows: “(4) the role of market forces in the health care system and the appropriate role they may play in restraining cost increases and improving the availability and quality of care.”. (2)

42 USC 242c note.

 The amendment made by paragraph (1) shall apply with respect to grants made under section 305(b) of the Public Health Service Act for fiscal years beginning after September 30, 1981, except that if an entity received a grant under paragraph (4) of such section, as in effect before the date of the enactment of this Act, for the fiscal year ending September 30, 1981, the Secretary may, until the fiscal year beginning October 1, 1983, make an additional grant or grants to such entity for the purposes prescribed by such paragraph as so in effect. (c) Section 305(b) is amended by adding after and below paragraph (4) the following: “No grant or contract shall be made under this subsection for the purpose of funding clinical research that is directly related to determining the cause of any disease or disorder or clinical research that is directly and principally designed to evaluate the efficacy of any therapeutic, diagnostic, or preventive health measure.”. (d) Subsections (a) and (c) of section 305 are each amended by striking out “Health, Education, and Welfare” and inserting in lieu thereof “Health and Human Services”.
national center for health statisticsSec. 920. (a) Section 306(e)(3) (42 U.S.C. 242k(e)(3)) is amended by inserting “and other activities” after “data collection”. (b) The first sentence of section 306(1)(2)(A) is amended by striking out “the Center” and inserting in lieu thereof “the Center and in cooperation with the Office of Federal Statistical Policy and Standards”. (c) Section 306(l)(2)(D) is amended by striking out all after “subparagraph (A)” and inserting in lieu thereof a period. (d) (1) Subsections (a), (e)(4), (j), (k)(4)(C), (k)(4)(D), and (l)(2)(B)(v) of section 306 are each amended by striking out “Health, Education, and Welfare” and inserting in lieu thereof “Health and Human Services”. (2) Subsection (c) of such section is amended by striking out “Committee on Interstate and Foreign Commerce” and inserting in lieu thereof “Committee on Energy and Commerce”.
international cooperationSec. 921. (a)

42 USC 242l.

 Section 307(a) (42 U.S.C. 2421(a)) is amended (1) by striking out “and the” and inserting in lieu thereof “, health care technology, and the”, and (2) by striking out “and 306” and inserting in lieu thereof “306, and 309”. (b) Section 307(b) is amended— (1) in paragraph (5), by striking out “or health statistics” and inserting in lieu thereof “, health statistics, or health care technology”, and (2) in paragraph (6), by striking out “and programs of biomedical research, health services research, and health statistical activities” and inserting in lieu thereof “or programs of biomedi- 95 STAT. 567cal research, health services research, health statistical activities, or health care technology activities”.
general provisionsSec. 922. (a) Section 308(a)(2) (42 U.S.C. 242m(a)(2)) is amended by striking out “September 1” and inserting in lieu thereof “December 1”. (b) Section 308(b)(2) is amended by striking out “$35,000” and inserting in lieu thereof “$50,000”. (c) Section 308(d)(2) is amended by inserting “or in the course of health care technology activities under section 309” after “305”.
national center for health care technologySec. 923. (a) Section 309(b)(1) (42 U.S.C. 242n(b)(1)) is amended by adding at the end thereof the following new sentence: “In carrying out this section, the Center shall not unreasonably inhibit the innovation of new technologies.” (b) Section 309(b)(5) is amended by striking out “may” and inserting in lieu thereof “shall” and by adding at the end thereof the following new sentence: “The making of such recommendations shall be a priority of the Center.” (c) Section 309(e) is amended by adding at the end thereof the following new sentence: “In carrying out this section, the Secretary shall ensure that the Center does not duplicate the activities of other units of the Department of Health and Human Services or, to the extent practicable, the activities of other Federal departments and agencies. To ensure necessary coordination, all assessments, research, evaluations, and demonstrations conducted by the Center shall take into consideration relevant studies and activities undertaken by the National Institutes of Health, the Food and Drug Administration, the Center for Disease Control, the Alcohol, Drug Abuse, and Mental Health Administration, and other Federal departments and agencies.” (d) Sections 309(d) and 309(f)(1)(B) are each amended by striking out “$35,000” and inserting in lieu thereof “$50,000”. (e) Section 309(f)(1)(B) is amended by striking out “in excess of” and inserting in lieu thereof “the direct costs of which will exceed”. (f) (1) Subparagraph (D) of section 309(f)(1) is amended by striking out “exemplary standards, norms, and criteria” and inserting in lieu thereof “information”. (2) Subparagraph (E) of such section is amended by striking out “standards, norms, and criteria” and inserting in lieu thereof “information”. (g) Section 309(f)(2)(A) is amended by striking out “and the head of the Health Care Financing Administration (or the successor to such entity) who (or their designees) shall be ex officio members” and inserting in lieu thereof “the head of the Health Care Financing Administration (or the successor to such entity), and such other Federal officials as the Secretary may specify, who (or their designees) shall be nonvoting ex officio members”. (h) The third sentence in the matter following section 309(f)(2)(B) is amended by striking out “two” and inserting in lieu thereof “three”. (i) (1) Clauses (1) and (2) of section 309(f)(6) are redesignated as clauses (A) and (B), respectively. 95 STAT. 568 (2)

42 USC 242n.

 Subsections (a) and (g) of section 309 are each amended by striking out “Health, Education, and Welfare” and inserting in lieu thereof “Health and Human Services”. (j) Section 309(f)(7) is amended by striking out “1981” and inserting in lieu thereof “1984”. (k) Subsection (g) of section 309 is repealed and subsections (h) and (i) are redesignated as subsections (g) and (h), respectively.
national research service awardsSec. 924. (a) (1) Section 472(a)(1)(A) (42 U.S.C. 2891–1(a)(1)(A)) is amended— (A) by inserting “and” after the comma in clause (iii); (B) by striking out clauses (iv), (v), and (vi); (C) by redesignating clause (vii) as clause (iv); and (D) by striking out “and the research described in clause (vi)” in clause (iv) (as redesignated by subparagraph (C) of this paragraph). (2) Section 472(a)(3) is amended to read as follows: “(3) In awarding National Research Service Awards under this section, the Secretary shall take account of the Nation’s overall need for biomedical research personnel by giving special consideration to physicians who agree to undertake a minimum of two years of biomedical research.”. (b) (1) Section 472(b)(1)(C) is amended by striking out “or (a)(1)(A)(iv)”. (2) Section 472(b)(2) is amended by striking out “Health, Education, and Welfare” and inserting in lieu thereof “Health and Human Services”. (3) The first sentence of section 472(b)(5) is amended by inserting a comma and “tuition, fees,” after “stipends”. (c) (1) Section 472(c)(1) is amended to read as follows: “(c) (1) Each individual who is awarded a National Research Service Award (other than an individual who is a prebaccalaureate student who is awarded a National Research Service Award for research training) shall, in accordance with paragraph (3), engage in health research or teaching or any combination thereof which is in accordance with the usual patterns of academic employment, for a period computed in accordance with paragraph (2).”. (2) Section 472(c)(2) is amended to read as follows: “(2) For each month for which an individual receives a National Research Service Award which is made for a period in excess of twelve months, such individual shall engage in one month of health research or teaching or any combination thereof which is in accordance with the usual patterns of academic employment.”. (3) The second sentence of section 472(c)(3) is amended to read as follows: “The Secretary shall by regulation prescribe the type of research and teaching in which an individual may engage to comply with such requirement and such other requirements respecting research and teaching as the Secretary considers appropriate.”. (d) The first sentence of section 472(d) is amended by striking out “and” after “1980,” and by inserting before the period a comma and “$182,000,000 for the fiscal year ending September 30, 1982, and $195,000,000 for the fiscal year ending September 30, 1983”. (e) Section 473(c) (42 U.S.C. 2891–2(c)) is amended (1) by striking out “Interstate and Foreign Commerce” and inserting in lieu thereof “Energy and Commerce”, and (2) by striking out “Public Welfare” and inserting in lieu thereof “Human Resources”.
95 STAT. 569
extension of assistance for libraries; miscellaneousSec. 925. (a) Section 390(c) (42 U.S.C. 280b(c)) is amended by striking out “and” after “1980,” and by inserting before the period a comma and the following: “and $7,500,000 for the fiscal year ending September 30, 1982”. (b) Section 434(d)(1) (42 U.S.C. 289c–1(d)(1)) is amended by inserting

94 Stat. 3184.

“musculoskeletal and skin diseases,” after “arthritis,”.
Subtitle D—Categorical Programs
preventive health service programsSec. 928. (a) Subsection (a) of section 317(a) of the Public Health Service Act (42 U.S.C. 247b) is amended to read as follows: “(a) The Secretary may make grants to States, and in consultation with State health authorities, to political subdivisions of States and to other public entities to assist them in meeting the costs of establishing and maintaining preventive health service programs.”. (b) Subsection (j) of such section (42 U.S.C. 247b(j)(1)(A)) is amended to read as follows: “(j) (1) For grants under subsection (a) for preventive health service programs to immunize children against immunizable diseases there are authorized to be appropriated $29,500,000 for the fiscal year ending September 30, 1982, $32,000,000 for the fiscal year ending September 30, 1983, and $34,500,000 for the fiscal year ending September 30, 1984. “(2) For grants under subsection (a) for preventive health service programs for tuberculosis there are authorized to be appropriated $9,000,000 for the fiscal year ending September 30, 1982, $10,000,000 for the fiscal year ending September 30, 1983, and $11,000,000 for the fiscal year ending September 30, 1984.”.
prevention and control of venereal diseasesSec. 929. The first sentence of section 318(d)(1) of the Public Health Service Act (42 U.S.C. 247c(d)(1)) is amended by striking out “and” after “1980,” and by inserting before the period a comma and the following: “$40,000,000 for the fiscal year ending September 30, 1982, $46,500,000 for the fiscal year ending September 30, 1983, and $50,000,000 for the fiscal year ending September 30, 1984”.
extension of program for migrant health centersSec. 930. (a) Section 329(h) of the Public Health Service Act (42 U.S.C. 247d(h)) is amended by striking out paragraphs (1), (2), and (3)

42 USC 254b.

and inserting in lieu thereof the following: “(h) (1) For the purposes of subsections (c), (d), and (e), there are authorized to be appropriated $43,000,000 for the fiscal year ending September 30, 1982, $47,500,000 for the fiscal year ending September 30, 1983, and $51,000,000 for the fiscal year ending September 30, 1984. The Secretary may not obligate for grants and contracts under subsection (c)(1) in any fiscal year an amount which exceeds 2 per centum of the funds appropriated under this paragraph for that fiscal year, the Secretary may not obligate for grants under subsection (d)(1)(C) in any fiscal year an amount which exceeds 5 per centum of such funds, and the Secretary may not obligate for contracts under 95 STAT. 570subsection (e) in any fiscal year an amount which exceeds 10 per centum of such funds.”. (b)

42 USC 254b.

 Paragraph (4) of section 329(h) is redesignated as paragraph (2).
family planning programsSec. 931. (a) (1) Section 1001(c) of the Public Health Service Act (42 U.S.C. 300(c)) is amended by striking out “and” after “1980,” and by inserting before the period a comma and the following: “$126,510,000 for the fiscal year ending September 30, 1982; $139,200,000 for the fiscal year ending September 30, 1983; and $150,830,000 for the fiscal year ending September 30, 1984”. (2) Section 1003(b) of such Act (42 U.S.C. 300a–1(b)) is amended by striking out “and” after “1980,” and by inserting before the period a comma and the following. “$2,920,000 for the fiscal year ending September 30, 1982; $3,200,000 for the fiscal year ending September 30, 1983; and $3,500,000 for the fiscal year ending September 30, 1984”. (3) Section 1005(b) of Such Act (42 U.S.C. 300a–3(b)) is amended by striking out “and” after “1980,” and by inserting before the period a comma and the following: “$570,000 for the fiscal year ending September 30, 1982; $600,000 for the fiscal year ending September 30, 1983; and $670,000 for the fiscal year ending September 30, 1984”. (b) (1) Section 1001(a) of such Act is amended by adding at the end the following: “To the extent practical, entities which receive grants or contracts under this subsection shall encourage family participation in projects assisted under this subsection.”. (2)

42 USC 300a–2.

 Section 1004 is amended by striking out “(a)” after “Sec. 1004.” and by striking out subsection (b). (c)

Study.

42 USC 300a note.

42 USC 300.

 The Secretary of Health and Human Services shall conduct a study of the possible ways of State delivery of the services for which assistance is authorized by title X of the Public Health Service Act and the willingness and ability of the States to assume the administration

Report to Congress.

of activities assisted under such title X. The Secretary shall report to the Congress on the results of such study 18 months after the date of the enactment of this Act.
Subtitle E—Health Planning
authorizationsSec. 933. (a) (1) Section 1516(d)(1) of the Public Health Service Act (42 U.S.C. 3001–5(d)(1)) is amended by inserting “and” after “1980,” and by inserting a period after “1981” and striking out the remainder of such section. (2) Section 1525(c) of such Act (42 U.S.C. 300m–4(c)) is amended by inserting “and” after “1980,” and by inserting a period after “1981” and striking out the remainder of such section. (3) Section 1534(d) of such Act (42 U.S.C. 300n–3(d)) is amended by inserting “and” after “1980,” and by inserting a period after “1981” and striking out the remainder of such section. (b) Part D of the Public Health Service Act is amended by adding at the end the following:
“authorizations for fiscal year 1982“Sec. 1537.

42 USC 300n–6

 For grants and contracts under sections 1516(a), 1525(a), and 1534(a) there is authorized to be appropriated $102,000,000 for 95 STAT. 571fiscal year 1982. Of the amount appropriated under this section, not more than $65,000,000 may be used for grants under section 1516(a).”.
minimum grant; waiver of requirementsSec. 934. (a) Section 1516(c)(1)(C)(iv) of the Public Health Service Act is amended by striking out “$260,000” and inserting in lieu

42 USC 300l–5.

thereof “$100,000”. (b) The Secretary of Health and Human Services may—

42 USC 300l–2 note.

 (1) upon application waive the application of the requirements of subsection (e), (g), or (h) of section 1513 of the Public Health Service Act, or any combination of such subsections, to a health

42 USC 300l–2.

systems agency if the Secretary determines that the Federal funds made available to the agency are not sufficient to enable it to meet such requirements or (2) by regulation waive the application of the requirements of subsection (e), (g), or (h) of section 1513 of the Public Health Service Act, or any combination of such subsections, to all health systems agencies if the Secretary determines that the Federal funds made available to all the agencies are not sufficient to enable them to meet such requirements.
states without health systems agenciesSec. 935. (a) (1) Section 1536 of the Public Health Service Act (42 U.S.C. 300n–5) is amended— (1) by striking out subsection (a), (2) by amending the matter in subsection (b) preceding paragraph (1) to read as follows: “Upon application of the chief executive officer of a State or the Commonwealth of Puerto Rico, the Virgin Islands, Guam, the Trust Territory of the Pacific Islands, the Northern Mariana Islands, or American Samoa, it shall, upon approval of the application, be considered to be a State for purposes of this title and”, (3) by striking out “sections 1516 and 1640” and inserting in lieu thereof “section 1640”, and (4) by adding after and below paragraph (4) the following:

“An application made under this section for a fiscal year shall be made not later than November 1 in that fiscal year and shall contain the certification of the chief executive officer that the State is willing and able to meet the purposes of this title in such fiscal year without any health systems agency in the State.”.

 (b) A State which—

42 USC 300l–5 note.

 (1) because of section 1536(b) of the Public Health Service Act (as in effect on September 30, 1981) received a grant under section 1516 of such Act for fiscal year 1981, and (2) had an application under section 1536 of such Act (as amended by subsection (a)) approved, shall be eligible to receive a grant under section 1516 of such Act for fiscal year 1982. (c) If a State which on the date of the enactment of this Act has a

42 USC 300l–5 note.

population of less than 600,000 and has only one health service area has an application approved under this section, such State shall be eligible to receive a grant under section 1516 of the Public Health Service Act for fiscal year 1982. (d) The last sentence of section 1512(b)(5) of the Public Health Service Act (42 U.S.C. 3001–1(b)(5)) is amended by inserting before the period the following: “or health insurance”.
95 STAT. 572
certificate of need reviewSec. 936. (a) Section 1531 of the Public Health Service Act (42 U.S.C. 300n) is amended— (1) by striking out “$75,000” each place it occurs in paragraph (5) and inserting in lieu thereof “$250,000”; (2) by striking out “$150,000” each place it occurs in paragraph (6) and inserting in lieu thereof “$600,000”; and (3) by striking out “$150,000” each place it occurs in paragraph (7) and inserting in lieu thereof “$400,000”. (b) (1) Section 1521(d)(1)(B) of the Public Health Service Act (42 U.S.C. 300m(d)(1)(E)(ii)) is amended— (A) by striking out “twelve months” the second time it appears in clause (i) and inserting in lieu thereof “twenty-four months”, and (B) by striking out “twelve months” the second time it appears in clause (ii) and inserting in lieu thereof “twenty-four months”. (2) The first sentence of section 1521(b)(2)(B) of such Act is amended to read as follows: “The period of an agreement described in subparagraph (A) shall not extend beyond the period set forth in subsection (d)(1)(B).”.
effective dateSec. 937.

42 USC 300l–1 note.

 The amendments made by this subtitle shall take effect October 1, 1981.
Subtitle F—

Health Maintenance Organization Amendments of 1981.

Health Maintenance Organizations CHAPTER 10—HEALTH MAINTENANCE ORGANIZATIONS
short title; reference to actSec. 940. (a)

42 USC 201 note.

 This subtitle may be cited as the “Health Maintenance Organization Amendments of 1981”. (b) Whenever in this subtitle an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or

42 USC 201 note.

other provision of the Public Health Service Act.
extensionsSec. 941. (a) Subsection (a) of section 1309 (42 U.S.C. 300e–8(a)) is amended to read as follows: “(a) (1)

42 USC 300e–2, 300e–3.

 For grants and contracts under sections 1303 and 1304 there is authorized to be appropriated $20,000,000 for the fiscal years 1982, 1983, and 1984. No funds appropriated under this paragraph may be expended or obligated for a grant or contract unless the entity

42 USC 242a, 242b.

received a grant or contract under section 303 or 304 during or before the fiscal year 1981. “(2)

42 USC 300e–16.

 For grants under section 1317 there is authorized to be appropriated $1,000,000 for each of the fiscal years 1982, 1983, and 1984.”. (b) Subsection (b) of section 1309 is amended to read as follows: “(b)

42 USC 300e–7.

 To maintain in the loan fund established under section 1308(e) for the purpose of making new loans a balance of at least $5,000,000 at the end of each fiscal year and to meet the obligations of the loan fund resulting from defaults on loans made from the fund and to meet the other obligations of the fund, there is authorized to be appropriated to 95 STAT. 573the loan fund for fiscal years 1982, 1983, and 1984, such sums as may be necessary to assure such balance and meet such obligations.”. (c) Section 1304(j) (42 U.S.C. 300e–3(j)) is amended by striking out “1981” and inserting in lieu thereof “1984”.
revision of requirements for health maintenance organizationsSec. 942. (a) (1) Section 1301(b)(3) is amended (A) by striking out

42 USC 300e.

subparagraph (C), and (B) by redesignating subparagraphs (D) and (E) as subparagraphs (C) and (D), respectively. (2) Section 1301(b)(3)(A)(iv) is amended by striking out “subject to subparagraph (C),”. (3) (A) Section 1310(b)(1) (42 U.S.C. 300e–9(b)(1)) is amended by striking out “provides basic health services” and inserting in lieu thereof “provides more than one-half of its basic health services which are provided by physicians”. (B) Section 1310(b)(2) is amended by striking out “basic health services” and inserting in lieu thereof “its basic health services which are provided by physicians”. (4) Section 1310(b)(2) (42 U.S.C. 300e–9(b)(2)) is amended by striking out “or (B)” and inserting in lieu thereof “(B) individual physicians and other health professionals under contract with the organization, or (C)”. (5) The amendment made by paragraph (3)(A) shall apply with

42 USC 300e–9 note.

respect to the offering of a health maintenance organization in accordance with section 1310(b)(1) of the Public Health Service Act after four years after the date the organization becomes a qualified health maintenance organization for purposes of section 1310 of such Act if the health maintenance organization provides assurances satisfactory to the Secretary that upon the expiration of such four years it will provide more than one half of its basic health services which are provided by physicians through physicians or other health professionals who are members of the staff of the organization or a medical group (or groups). (b) (1) Section 1301(b)(3)(B) is amended by striking out “(i)”, by striking out clause (ii), and by redesignating subclauses (I) and (II) as clauses (i) and (ii), respectively. (2) Subparagraph (D) of section 1301(b)(3) is amended to read as follows: “(D) Contracts between a health maintenance organization and health professionals for the provision of basic and supplemental health services shall include such provisions as the Secretary may require, but only to the extent that such requirements are designed to insure the delivery of quality health care services and sound fiscal management”. (c) (1) The first sentence of section 1301(b)(4) (42 U.S.C. 300e(b)(4)) is amended by inserting before the period a comma and the following: “except that a health maintenance organization which has a service area located wholly in a nonmetropolitan area may make a basic health service available outside its service area if that basic health service is not a primary care or emergency health care service and if there is an insufficient number of providers of that basic health service within the service area who will provide such service to members of the health maintenance organization”. (2) The first sentence of section 1301(b)(4) is amended by striking out “promptly as appropriate” and inserting in lieu thereof “with reasonable promptness”. 95 STAT. 574 (d) (1)

42 USC 300e.

 Section 1301(c) is amended by striking out paragraphs (4), (9), and (10), by redesignating paragraphs (5) through (8) as paragraphs (4) through (7), by redesignating paragraph (11) as paragraph (9), and by adding after paragraph (7) (as so redesignated) the following new paragraph: “(8) adopt at least one of the following arrangements to protect its members from incurring liability for payment of any fees which are the legal obligation of such organization— “(A) a contractual arrangement with any hospital that is regularly used by the members of such organization prohibiting such hospital from holding any such member liable for payment of any fees which are the legal obligation of such organization; “(B) insolvency insurance, acceptable to the Secretary; “(C) adequate financial reserve, acceptable to the Secretary; and “(D) other arrangements, acceptable to the Secretary, to protect members, except that the requirements of this paragraph shall not apply to a health maintenance organization if applicable State law provides the members of such organization with protection from liability for payment of any fees which are the legal obligation of such organization; and”. (2) Subsection (d) of section 1301 is repealed. (e) Section 1301(c)(2) (42 U.S.C. 300e(c)(2)) is amended— (1) by striking out “obtain insurance or make other arrangements”, (2) by inserting “obtain insurance or make other arrangements” after “(A)” “(B)”, and “(C)”, (3) by striking out “and (C)” and inserting in lieu thereof “(C)”, and (4) by inserting before the semicolon a comma and the following: “and (D) make arrangements with physicians or other health professionals, health care institutions, or any combination of such individuals or institutions to assume all or part of the financial risk on a prospective basis for the provision of basic health services by the physicians or other health professionals or through the institutions”. (f) The last sentence of section 1302(1) (42 U.S.C. 300e–1(1)) is repealed. (g) (1) The first sentence of section 1302(2) (42 U.S.C. 300e–1(2)) is amended to read as follows: “The term ‘supplemental health services’ means any health service which is not included as a basic health service under paragraph (1) of this section.”. (2) The second sentence of such section is amended by striking out “If a service of a physician described in the preceding sentence” and inserting in lieu thereof “If a health service provided by a physician”. (3) The last sentence of such section is repealed. (h) Section 1302(4)(C) is amended by inserting before the semicolon at the end of clause (i) the following: “, except that this clause does not apply before the end of the forty-eight month period beginning after the month in which the health maintenance organization becomes a qualified health maintenance organization as defined in section

42 USC 300e–9.

1310(d), or as authorized by the Secretary in accordance with regulations that take into consideration the unusual circumstances of the group”. (i) Section 1302(5)(B) is amended by striking out “feasible (1)” and inserting in lieu thereof “feasible,” and by striking out “administra-95 STAT. 575tive staff” and all that follows in such section and inserting in lieu thereof “administrative staff.”. (j) Section 1302(8) (42 U.S.C. 300e–1(8)) is amended to read as follows: “(8) (A) The term ‘community rating system’ means the systems, described in subparagraphs (B) and (C), of fixing rates of payments for health services. A health maintenance organization may fix its rates of payments under the system described in subparagraph (B) or (C) or under both such systems, but a health maintenance organization may use only one such system for fixing its rates of payments for any one group. “(B) A system of fixing rates of payment for health services may provide that the rates shall be fixed on a per-person or per-family basis and may authorize the rates to vary with the number of persons in a family, but, except as authorized in subparagraph (D), such rates must be equivalent for all individuals and for all families of similar composition. “(C) A system of fixing rates of payment for health services may provide that the rates shall be fixed for individuals and families by groups. Except as authorized in subparagraph (D), such rates must be equivalent for all individuals in the same group and for all families of similar composition in the same group. If a health maintenance organization is to fix rates of payment for individuals and families by groups, it shall— “(i) classify all of the members of the organization into classes based on factors which the health maintenance organization determines predict the differences in the use of health services by the individuals or families in each class and which have not been disapproved by the Secretary, “(ii) determine its revenue requirements for providing services to the members of each class established under clause (i), and “(iii) fix the rates of payment for the individuals and families of a group on the basis of a composite of the organization’s revenue requirements determined under clause (ii) for providing services to them as members of the classes established under clause (i). The Secretary shall review the factors used by each health maintenance organization to establish classes under clause (1). If the Secretary determines that any such factor may not reasonably be used to predict the use of the health services by individuals and families, the Secretary shall disapprove such factor for such purpose. “(D) The following differentials in rates of payments may be established under the systems described in subparagraphs (B) and (C): “(i) Nominal differentials in such rates may be established to reflect differences in marketing costs and the different administrative costs of collecting payments from the following categories of members: “(I) Individual members (including their families). “(II) Small groups of members (as determined under regulations of the Secretary). “(III) Large groups of members (as determined under regulations of the Secretary). “(ii) Nominal differentials in such rates may be established to reflect the compositing of the rates of payment in a systematic manner to accommodate group purchasing practices of the various employers. “(iii) Differentials in such rates may be established for members enrolled in a health maintenance organization pursuant to a contract with a governmental authority under section 1079 or 95 STAT. 5761086 of title 10, United States Code, or under any other governmental program (other than the health benefits program authorized

5 USC 8901 et seq.

by chapter 89 of title 5, United States Code) or any health benefits program for employees of States, political subdivision of States, and other public entities.”.
initial operation costsSec. 943. (a) Section 1305(a) (42 U.S.C. 300e–4) is amended— (1) by striking out “nonprofit” in paragraphs (1) and (2), and (2) by amending paragraph (3) to read as follows: “(3) guarantee to non-Federal lenders payment of the principal of and the interest on loans made to private health maintenance organizations for the amounts referred to in paragraphs (1) and (2).”. (b) Section 1305(b)(1) is amended to read as follows: “(b) (1) Except as provided in paragraph (2), the aggregate amount of principal of loans made or guaranteed, or both, under subsection (a) for a health maintenance organization may not exceed $7,000,000. In any twelve-month period the amount disbursed to a health maintenance organization under this section (either directly by the Secretary, by an escrow agent under the terms of an escrow agreement, or by a lender under a guaranteed loan) may not exceed $3,000,000.”. (c) Section 1305(d) is amended by striking out “1981” and inserting in lieu thereof “1986”. (d) Subsection (e) of section 1307 (42 U.S.C. 300e–6) is repealed.
ambulatory facilitiesSec. 944. (a) Section 1305A(a) (42 U.S.C. 300e–4a(a)) is amended— (1) by striking out “nonprofit” in paragraph (1), and (2) by amending paragraph (2) to read as follows: “(2) guarantee to non-Federal lenders for their loans to private health maintenance organizations for projects described in paragraph (1) the payment of principal and interest on such loans.”. (b) Subsections (b) and (c) of section 1305A are redesignated as subsections (c) and (d), respectively, and the following is inserted after subsection (a): “(b) No loan may be made to a health maintenance organization and no loan to a health maintenance organization may be guaranteed under subsection (a) unless the application of the health maintenance organization for such loan or loan guarantee contains assurances satisfactory to the Secretary that— “(1) at the time the application is made the health maintenance organization is fiscally sound; “(2) if the application is for a loan, the health maintenance organization is unable to secure a loan, at the rate of interest prevailing in the area in which the organization is located, from non-Federal lenders for the project with respect to which the application is submitted, or, if the application is for a loan guarantee, the health maintenance organization would be unable to secure a loan from such lenders for such project without the loan guarantee; and “(3) during the period of the loan or loan guarantee, the health maintenance organization will remain fiscally sound.”.
95 STAT. 577
loansSec. 945. Section 1308(b)(2) (42 U.S.C. 300e–7(b)(2)) is amended— (1) by amending clause (D) to read as follows: “(D) on the date the loan is made, bear interest at a rate comparable to the rate of interest prevailing on such date with respect to marketable obligations of the United States of comparable maturities, adjusted to provide for appropriate administrative charges, and”; and (2) by adding at the end the following: “On the date disbursements are made under a loan after the initial disbursement under the loan, the Secretary may change the rate of interest on the amount of the loan disbursed on that date to a rate which is comparable to the rate of interest prevailing on the date the subsequent disbursement is made with respect to marketable obligations of the United States of comparable maturities, adjusted to provide for appropriate administrative charges.”.
dual choiceSec. 946. (a) Section 1310(d) (42 U.S.C. 300e–9(d)) is amended by adding at the end the following: “Every two years (or such longer period as the Secretary may by regulation prescribe) after the date a health maintenance organization becomes a qualified health maintenance organization under this subsection, the health maintenance organization must demonstrate to the Secretary that it is qualified within the meaning of this subsection.”. (b) Section 1310(f)(1) is amended by inserting before the semicolon a comma and the following: “except that such term includes nonappropriated fund instrumentalities of the Government of the United States”.
repeal of special considerationsSec. 947. (a) Section 1303 (42 U.S.C. 300e–2) is amended by striking out subsection (i). (b) Section 1304 (42 U.S.C. 300e–3) is amended by striking out subsection (k). (c) Section 1305 (42 U.S.C. 300e–4) is amended by striking out subsection (e).
financial disclosureSec. 948. (a) Subsection (a)(2) of section 1318 (42 U.S.C. 300e–17) is amended to read as follows: “(2) A copy of the report, if any, filed with the Health Care Financing Administration containing the information required to be reported under section 1124 of the Social Security Act by

42 USC 1320a–3.

disclosing entities and the information required to be supplied under section 1902(a)(38) of such Act”.

42 USC 1396a.

 (b) Subsection (a)(3)(E) of such section is amended to read as follows: “(B) any furnishing for consideration of goods, services (including management services), or facilities between the health maintenance organization and a party in interest, but not including salaries paid to employees for services provided in the normal course of their employment and health services provided to members by hospitals and other providers and by staff, medical group (or groups), individual practice association (or associations), or any combination thereof; and”. 95 STAT. 578 (c)

42 USC 300e–17.

 Subsection (b)(1) of such section is amended by striking out “employee” and inserting in lieu thereof “employee responsible for management or administration”. (d) Subsection (b)(4) of such section is amended to read as follows: “(4) any spouse, child, or parent of an individual described in paragraph (1).”
miscellaneousSec. 949. (a) The third sentence of section 1312(b)(1) (42 U.S.C. 300e–11(b)(1)) is amended by inserting after “Secretary prescribes” the following: “, then after the Secretary provides the entity a reasonable opportunity for reconsideration of his determination, including, at the entity’s election, a fair hearing”. (b)

Repeals.

 Sections 1314 and 1316 (42 U.S.C. 300e–13, 300e–15) are repealed. (c) Section 1527(b)(1) (42 U.S.C. 300m–6(b)(1)) is amended— (1) by striking out clause (i) in subparagraph (A) and by redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively, (2) by striking out “such enrolled individuals” in subparagraph (A) and inserting in lieu thereof “individuals enrolled in such organization or organizations”, (3) by striking out “which has, in the service area of the organization or service areas of the organizations in the combination, an enrollment of at least 50,000 individuals” in subparagraph (B)(ii), (4) by striking out “such enrolled individuals” in subparagraph (B)(iii) and inserting in lieu thereof “individuals enrolled in such organization or organizations”, (5) by striking out “which has, in the service area or the organization or service areas of the organizations in the combination, an enrollment of at least 50,000 individuals” in subparagraph (C)(i), and (6) by striking out “such enrolled individuals” in subparagraph (C)(ii) and inserting in lieu thereof “individuals enrolled in such organization or organizations”. (d)

Effective date.

42 USC 300m–6 note.

 The amendments made by subsection (c) shall take effect October 1, 1982.
Subtitle G—Adolescent Family Life
Sec. 955. (a) The Public Health Service Act is amended by adding at the end thereof the following new title: <num value="XX">“TITLE XX—</num><heading>ADOLESCENT FAMILY LIFE DEMONSTRATION PROJECTS</heading> <section> <heading class="centered smallCaps">“findings and purposes</heading><num value="2001">“<inline class="smallCaps">Sec</inline>. 2001. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300z">42 USC 300z</ref>.</p></sidenote> <chapeau class="inline">The Congress finds that—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>in 1978, an estimated one million one hundred thousand teenagers became pregnant, more than five hundred thousand teenagers carried their babies to term, and over one-half of the babies born to such teenagers were born out of wedlock;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>adolescents aged seventeen and younger accounted for more than one-half of the out of wedlock births to teenagers;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>in a high proportion of cases, the pregnant adolescent is herself the product of an unmarried parenthood during adolescence and is continuing the pattern in her own lifestyle;</content></paragraph> <page identifier="/us/stat/95/579">95 STAT. 579</page> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>it is estimated that approximately 80 per centum of unmarried teenagers who carry their pregnancies to term live with their families before and during their pregnancy and remain with their families after the birth of the child;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>pregnancy and childbirth among unmarried adolescents, particularly young adolescents, often results in severe adverse health, social, and economic consequences, including: a higher percentage of pregnancy and childbirth complications; a higher incidence of low birth weight babies; a higher frequency of developmental disabilities; higher infant mortality and morbidity; a decreased likelihood of completing schooling; a greater likelihood that an adolescent marriage will end in divorce; and higher risks of unemployment and welfare dependency;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><subparagraph class="inline"><num value="A">(A) </num><content>adoption is a positive option for unmarried pregnant adolescents who are unwilling or unable to care for their children since adoption is a means of providing permanent families for such children from available approved couples who are unable or have difficulty in conceiving or carrying children of their own to term; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>at present, only 4 per centum of unmarried pregnant adolescents who carry their babies to term enter into an adoption plan or arrange for their babies to be cared for by relatives or friends;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>an unmarried adolescent who becomes pregnant once is likely to experience recurrent pregnancies and childbearing, with increased risks;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><subparagraph class="inline"><num value="A">(A) </num><content>the problems of adolescent premarital sexual relations, pregnancy, and parenthood are multiple and complex and are frequently associated with or are a cause of other troublesome situations in the family; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>such problems are best approached through a variety of integrated and essential services provided to adolescents and their families by other family members, religious and charitable organizations, voluntary associations, and other groups in the private sector as well as services provided by publicly sponsored initiatives;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">“(9) </num><content>a wide array of educational, health, and supportive services are not available to adolescents with such problems or to their families, or when available frequently are fragmented and thus are of limited effectiveness in discouraging adolescent premarital sexual relations and the consequences of such relations;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">“(10) </num><subparagraph class="inline"><num value="A">(A) </num><content>prevention of adolescent sexual activity and adolescent pregnancy depends primarily upon developing strong family values and close family ties, and since the family is the basic social unit in which the values and attitudes of adolescents concerning sexuality and pregnancy are formed, programs designed to deal with issues of sexuality and pregnancy will be successful to the extent that such programs encourage and sustain the role of the family in dealing with adolescent sexual activity and adolescent pregnancy;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>Federal policy therefore should encourage the development of appropriate health, educational, and social services where such services are now lacking or inadequate, and the better coordination of existing services where they are available; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>services encouraged by the Federal Government should promote the involvement of parents with their adolescent chil-<page identifier="/us/stat/95/580">95 STAT. 580</page>dren, and should emphasize the provision of support by other family members, religious and charitable organizations, voluntary associations, and other groups in the private sector in order to help adolescents and their families deal with complex issues of adolescent premarital sexual relations and the consequences of such relations; and</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="11">“(11) </num><subparagraph class="inline"><num value="A">(A) </num><content>there has been limited research concerning the societal causes and consequences of adolescent pregnancy;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>there is limited knowledge concerning which means of intervention are effective in mediating or eliminating adolescent premarital sexual relations and adolescent pregnancy; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>it is necessary to expand and strengthen such knowledge in order to develop an array of approaches to solving the problems of adolescent premarital sexual relations and adolescent pregnancy in both urban and rural settings.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>Therefore, the purposes of this title are—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>to find effective means, within the context of the family, of reaching adolescents before they become sexually active in order to maximize the guidance and support available to adolescents from parents and other family members, and to promote self discipline and other prudent approaches to the problem of adolescent premarital sexual relations, including adolescent pregnancy;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>to promote adoption as an alternative for adolescent parents;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>to establish innovative, comprehensive, and integrated approaches to the delivery of care services for pregnant adolescents, with primary emphasis on unmarried adolescents who are seventeen years of age or under, and for adolescent parents, which shall be based upon an assessment of existing programs and, where appropriate, upon efforts to establish better coordination, integration, and linkages among such existing programs in order to—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>enable pregnant adolescents to obtain proper care and assist pregnant adolescents and adolescent parents to become productive independent contributors to family and community life; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>assist families of adolescents to understand and resolve the societal causes which are associated with adolescent pregnancy;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>to encourage and support research projects and demonstration projects concerning the societal causes and consequences of adolescent premarital sexual relations, contraceptive use, pregnancy, and child rearing;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>to support evaluative research to identify effective services which alleviate, eliminate, or resolve any negative consequences of adolescent premarital sexual relations and adolescent childbearing for the parents, the child, and their families; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>to encourage and provide for the dissemination of results, findings, and information from programs and research projects relating to adolescent premarital sexual relations, pregnancy, and parenthood.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">“definitions</heading><num value="2002">“<inline class="smallCaps">Sec</inline>. 2002. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300z–1">42 USC 300z–1</ref>.</p></sidenote> <chapeau class="inline">For the purposes of this title, the term—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>‘Secretary’ means the Secretary of Health and Human Services;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>‘eligible person’ means—</chapeau> <page identifier="/us/stat/95/581">95 STAT. 581</page> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>with regard to the provision of care services, a pregnant adolescent, an adolescent parent, or the family of a pregnant adolescent or an adolescent parent; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>with regard to the provision of prevention services and referral to such other services which may be appropriate, a nonpregnant adolescent;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>‘eligible grant recipient’ means a public or nonprofit private organization or agency which demonstrates, to the satisfaction of the Secretary—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>in the case of an organization which will provide care services, the capability of providing all core services in a single setting or the capability of creating a network through which all core services would be provided; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>in the case of an organization which will provide prevention services, the capability of providing such services;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><chapeau>‘necessary services’ means services which may be provided by grantees which are—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>pregnancy testing and maternity counseling;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>adoption counseling and referral services which present adoption as an option for pregnant adolescents, including referral to licensed adoption agencies in the community if the eligible grant recipient is not a licensed adoption agency;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>primary and preventive health services including prenatal and postnatal care;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>nutrition information and counseling;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>referral for screening and treatment of venereal disease;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num><content>referral to appropriate pediatric care;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="G">“(G) </num><chapeau>educational services relating to family life and problems associated with adolescent premarital sexual relations, including—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>information about adoption;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>education on the responsibilities of sexuality and parenting;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>the development of material to support the role of parents as the provider of sex education; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>assistance to parents, schools, youth agencies, and health providers to educate adolescents and preadolescents concerning self-discipline and responsibility in human sexuality;</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="H">“(H) </num><content>appropriate educational and vocational services and referral to such services;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>referral to licensed residential care or maternity home services; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="J">“(J) </num><content>mental health services and referral to mental health services and to other appropriate physical health services;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="K">“(K) </num><content>child care sufficient to enable the adolescent parent to continue education or to enter into employment;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="L">“(L) </num><content>consumer education and homemaking;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="M">“(M) </num><content>counseling for the immediate and extended family members of the eligible person;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="N">“(N) </num><content>transportation;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="O">“(O) </num><content>outreach services to families of adolescents to discourage sexual relations among unemancipated minors;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="P">“(P) </num><content>family planning services; and</content></subparagraph> <page identifier="/us/stat/95/582">95 STAT. 582</page> <subparagraph class="firstIndent1 fontsize10"><num value="Q">“(Q) </num><content>such other services consistent with the purposes of this title as the Secretary may approve in accordance with regulations promulgated by the Secretary;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>‘core services’ means those services which shall be provided by a grantee, as determined by the Secretary by regulation;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>‘supplemental services’ means those services which may be provided by a grantee, as determined by the Secretary by regulation;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>‘care services’ means necessary services for the provision of care to pregnant adolescents and adolescent parents and includes all core services with respect to the provision of such care prescribed by the Secretary by regulation;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><content>‘prevention services’ means necessary services to prevent adolescent sexual relations, including the services described in subparagraphs (A), (D), (E), (G), (H), (M), (N), (O), and (Q) of paragraph (4);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">“(9) </num><content>‘adolescent’ means an individual under the age of nineteen; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">“(10) </num><content>‘unemancipated minor’ means a minor who is subject to the control, authority, and supervision of his or her parents or guardians, as determined under State law.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>Until such time as the Secretary promulgates regulations pursuant to the second sentence of this subsection, the Secretary shall use the regulations promulgated under title VI of the Health <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300a–21">42 USC 300a–21</ref>.</p></sidenote>Services and Centers Amendments of 1978 which were in effect on the date of enactment of this title, to determine which necessary services are core services for purposes of this title. The Secretary may promulgate regulations to determine which necessary services are core services for purposes of this title based upon an evaluation of and information concerning which necessary services are essential to carry out the purposes of this title and taking into account (1) factors such as whether services are to be provided in urban or rural areas, the ethnic groups to be served, and the nature of the populations to be served, and (2) the results of the evaluations required under section 2006(b). The Secretary may from time to time revise such regulations.</content> </subsection> </section> <section> <heading class="centered smallCaps">“authority to make grants for demonstration projects</heading><num value="2003">“<inline class="smallCaps">Sec</inline>. 2003. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300z–2">42 USC 300z–2</ref>.</p></sidenote> <content class="inline">The Secretary may make grants to further the purposes of this title to eligible grant recipients which have submitted an application which the Secretary finds meets the requirements of section 2006 for demonstration projects which the Secretary determines will help communities provide appropriate care and prevention services in easily accessible locations. Demonstration projects shall, as appropriate, provide, supplement, or improve the quality of such services. Demonstration projects shall use such methods as will strengthen the capacity of families to deal with the sexual behavior, pregnancy, or parenthood of adolescents and to make use of support systems such as other family members, friends, religious and charitable organizations, and voluntary associations.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>Grants under this title for demonstration projects may be for the provision of—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>care services;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>prevention services; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>a combination of care services and prevention services.</content></paragraph> </subsection> </section> <page identifier="/us/stat/95/583">95 STAT. 583</page> <section> <heading class="centered smallCaps">“uses of grants for demonstration projects for services</heading><num value="2004">“<inline class="smallCaps">Sec</inline>. 2004. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Except as provided in subsection (b), funds provided <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300z–3">42 USC 300z–3</ref>.</p></sidenote>for demonstration projects for services under this title may be used by grantees only to—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><chapeau>provide to eligible persons—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>care services;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>prevention services; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>care and prevention services (in the case of a grantee who is providing a combination of care and prevention services);</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>coordinate, integrate, and provide linkages among providers of care, prevention, and other services for eligible persons in furtherance of the purposes of this title;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>provide supplemental services where such services are not adequate or not available to eligible persons in the community and which are essential to the care of pregnant adolescents and to the prevention of adolescent premarital sexual relations and adolescent pregnancy;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>plan for the administration and coordination of pregnancy prevention services and programs of care for pregnant adolescents and adolescent parents which will further the objectives of this title; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>fulfill assurances required for grant approval by section 2006.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>No funds provided for a demonstration project for services under this title may be used for the provision of family planning services (other than counseling and referral services) to adolescents unless appropriate family planning services are not otherwise available in the community.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Any grantee who receives funds for a demonstration project for services under this title and who, after determining under paragraph (1) that appropriate family planning services are not otherwise available in the community, provides family planning services (other than counseling and referral services) to adolescents may only use funds provided under this title for such family planning services if all funds received by such grantee from all other sources to support such family planning services are insufficient to support such family planning services.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Grantees who receive funds for a demonstration project for services under this title shall charge fees for services pursuant to a fee schedule approved by the Secretary as a part of the application described in section 2006 which bases fees charged by the grantee on the income of the eligible person or the parents or legal guardians of the eligible person and takes into account the difficulty adolescents face in obtaining resources to pay for services. A grantee who receives funds for a demonstration project for services under this title may not, in any case, discriminate with regard to the provision of services to any individual because of that individual’s inability to provide payment for such services, except that in determining the ability of an unemancipated minor to provide payment for services, the income of the family of an unemancipated minor shall be considered in determining the ability of such minor to make such payments unless the parents or guardians of the unemancipated minor refuse to make such payments.</content> </subsection> </section> <page identifier="/us/stat/95/584">95 STAT. 584</page> <section> <heading class="centered smallCaps">“priorities, amounts, and duration of grants for demonstration projects for services</heading><num value="2005">“<inline class="smallCaps">Sec</inline>. 2005. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300z–4">42 USC 300z–4</ref>.</p></sidenote> <chapeau class="inline">In approving applications for grants for demonstration projects for services under this title, the Secretary shall give priority to applicants who—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>serve an area where there is a high incidence of adolescent pregnancy;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>serve an area with a high proportion of low-income families and where the availability of programs of care for pregnant adolescents and adolescent parents is low;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>show evidence—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>in the case of an applicant who will provide care services, of having the ability to bring together a wide range of needed core services and, as appropriate, supplemental services in comprehensive single-site projects, or to establish a well-integrated network of such services (appropriate for the target population and geographic area to be served including the special needs of rural areas) for pregnant adolescents or adolescent parents; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>in the case of an applicant who will provide prevention services, of having the ability to provide prevention services for adolescents and their families which are appropriate for the target population and the geographic area to be served, including the special needs of rural areas;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>will utilize to the maximum extent feasible existing available programs and facilities such as neighborhood and primary health care centers, maternity homes which provide or can be equipped to provide services to pregnant adolescents, agencies serving families, youth, and children with established programs of service to pregnant adolescents and vulnerable families, licensed adoption agencies, children and youth centers, maternal and infant health centers, regional rural health facilities, school and other educational programs, mental health programs, nutrition programs, recreation programs, and other ongoing pregnancy prevention services and programs of care for pregnant adolescents and adolescent parents;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>make use, to the maximum extent feasible, of other Federal, State, and local funds, programs, contributions, and other third-party reimbursements;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>can demonstrate a community commitment to the program by making available to the demonstration project non-Federal funds, personnel, and facilities;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>have involved the community to be served, including public and private agencies, adolescents, and families, in the planning and implementation of the demonstration project; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><content>will demonstrate innovative and effective approaches in addressing the problems of adolescent premarital sexual relations, pregnancy, or parenthood, including approaches to provide pregnant adolescents with adequate information about adoption.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>The amount of a grant for a demonstration project for services under this title shall be determined by the Secretary, based on factors such as the incidence of adolescent pregnancy in the geographic area to be served, and the adequacy of pregnancy prevention services and programs of care for pregnant adolescents and adolescent parents in such area.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>In making grants for demonstration projects for services under this title, the Secretary shall consider the special needs of rural areas <page identifier="/us/stat/95/585">95 STAT. 585</page>and, to the maximum extent practicable, shall distribute funds taking into consideration the relative number of adolescents in such areas in need of such services.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><content>A grantee may not receive funds for a demonstration project for services under this title for a period in excess of 5 years.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><chapeau>Subject to paragraph (3), a grant for a demonstration project for services under this title may not exceed—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>70 per centum of the costs of the project for the first and second years of the project;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>60 per centum of such costs for the third year of the project;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>50 per centum of such costs for the fourth year of the project; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>40 per centum of such costs for the fifth year of the project.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>Non-Federal contributions required by subparagraph (A) may be in cash or in kind, fairly evaluated, including plant, equipment, or services.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The Secretary may waive the limitation specified in paragraph (2)(A) for any year in accordance with criteria established by regulation.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">“requirements for applications</heading><num value="2006">“<inline class="smallCaps">Sec</inline>. 2006. </num><subsection class="inline"><num value="a">(a) </num><chapeau>An application for a grant for a demonstration <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300z–5">42 USC 300z–5</ref>.</p></sidenote>project for services under this title shall be in such form and contain such information as the Secretary may require, and shall include—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>an identification of the incidence of adolescent pregnancy and related problems;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>a description of the economic conditions and income levels in the geographic area to be served;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>a description of existing pregnancy prevention services and programs of care for pregnant adolescents and adolescent parents (including adoption services), and including where, how, by whom, and to which population groups such services are provided, and the extent to which they are coordinated in the geographic area to be served;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>a description of the major unmet needs for services for adolescents at risk of initial or recurrent pregnancies and an estimate of the number of adolescents not being served in the area;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><subparagraph class="inline"><num value="A">(A) </num><content>in the case of an applicant who will provide care services, a description of how all core services will be provided in the demonstration project using funds under this title or will otherwise be provided by the grantee in the area to be served, the population to which such services will be provided, how such services will be coordinated, integrated, and linked with other related programs and services and the source or sources of funding of such core services in the public and private sectors; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>in the case of an applicant who will provide prevention services, a description of the necessary services to be provided and how the applicant will provide such services;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>a description of the manner in which adolescents needing services other than the services provided directly by the applicant will be identified and how access and appropriate referral to such other services (such as medicaid; licensed adoption agencies; maternity home services; public assistance; employment services; child care services for adolescent parents; and other city, county, and State programs related to adolescent pregnancy) will <page identifier="/us/stat/95/586">95 STAT. 586</page>be provided, including a description of a plan to coordinate such other services with the services supported under this title;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>a description of the applicant’s capacity to continue services as Federal funds decrease and in the absence of Federal assistance;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><content>a description of the results expected from the provision of services, and the procedures to be used for evaluating those results;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">“(9) </num><content>a summary of the views of public agencies, providers of services, and the general public in the geographic area to be served, concerning the proposed use of funds provided for a demonstration project for services under this title and a description of procedures used to obtain those views, and, in the case of applicants who propose to coordinate services administered by a State, the written comments of the appropriate State officials responsible for such services;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">“(10) </num><content>assurances that the applicant will have an ongoing quality assurance program;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="11">“(11) </num><content>assurances that, where appropriate, the applicant shall have a system for maintaining the confidentiality of patient records in accordance with regulations promulgated by the Secretary;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="12">“(12) </num><content>assurances that the applicant will demonstrate its financial responsibility by the use of such accounting procedures and other requirements as may be prescribed by the Secretary;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="13">“(13) </num><content>assurances that the applicant (A) has or will have a contractual or other arrangement with the agency of the State (in which the applicant provides services) that administers or supervises the administration of a State plan approved under <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396">42 USC 1396</ref>.</p></sidenote>title XIX of the Social Security Act for the payment of all or a part of the applicant’s costs in providing health services to persons who are eligible for medical assistance under such a State plan, or (B) has made or will make every reasonable effort to enter into such an arrangement;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="14">“(14) </num><content>assurances that the applicant has made or will make and will continue to make every reasonable effort to collect appropriate reimbursement for its costs in providing health services to persons who are entitled to benefits under title V of the Social <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s701">42 USC 701</ref>.</p></sidenote>Security Act, to medical assistance under a State plan approved under title XIX of such Act, or to assistance for medical expenses under any other public assistance program or private health insurance program;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="15">“(15) </num><content>assurances that the applicant has or will make and will continue to make every reasonable effort to collect appropriate reimbursement for its costs in providing services to persons entitled to services under parts B and E of title IV and title XX of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/516">94 Stat 516</ref></p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s620">42 USC 620</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/501">94 Stat. 501</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s670">42 USC 670</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397">42 USC 1397</ref>.</p></sidenote>the Social Security Act;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="16">“(16) </num><subparagraph class="inline"><num value="A">(A) </num><chapeau>a description of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the schedule of fees to be used in the provision of services, which shall comply with section 2004(c) and which shall be designed to cover all reasonable direct and indirect costs incurred by the applicant in providing services; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>a corresponding schedule of discounts to be applied to the payment of such fees, which shall comply with section 2004(c) and which shall be adjusted on the basis of the ability of the eligible person to pay;</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>assurances that the applicant has made and will continue to make every reasonable effort-</chapeau> <page identifier="/us/stat/95/587">95 STAT. 587</page> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>to secure from eligible persons payment for services in accordance with such schedules;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>to collect reimbursement for health or other services provided to persons who are entitled to have payment made on their behalf for such services under any Federal or other government program or private insurance program; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>to seek such reimbursement on the basis of the full amount of fees for services without application of any discount; and</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>assurances that the applicant has submitted or will submit to the Secretary such reports as the Secretary may require to determine compliance with this paragraph;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="17">“(17) </num><content>assurances that the applicant will make maximum use of funds available under title X of this Act; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300">42 USC 300</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="18">“(18) </num><content>assurances that the acceptance by any individual of family planning services or family planning information (including educational materials) provided through financial assistance under this title shall be voluntary and shall not be a prerequisite to eligibility for or receipt of any other service furnished by the applicant;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="19">“(19) </num><content>assurances that fees collected by the applicant for services rendered in accordance with this title shall be used by the applicant to further the purposes of this title;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="20">“(20) </num><content>assurances that the applicant, if providing both prevention and care services will not exclude or discriminate against any adolescent who receives prevention services and subsequently requires care services as a pregnant adolescent;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="21">“(21) </num><chapeau>a description of how the applicant will, as appropriate in the provision of services—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>involve families of adolescents in a manner which will maximize the role of the family in the solution of problems relating to the parenthood or pregnancy of the adolescent;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>involve religious and charitable organizations, voluntary associations, and other groups in the private sector as well as services provided by publicly sponsored initiatives;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="22">“(22) </num><subparagraph class="inline"><num value="A">(A) </num><chapeau>assurances that—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>except as provided in subparagraph (B) and subject to clause (ii), the applicant will notify the parents or guardians of any unemancipated minor requesting services from the applicant and, except as provided in subparagraph (C), will obtain the permission of such parents or guardians with respect to the provision of such services; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>in the case of a pregnant unemancipated minor requesting services from the applicant, the applicant will notify the parents or guardians of such minor under clause (i) within a reasonable period of time;</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>assurances that the applicant will not notify or request the permission of the parents or guardian of any unemancipated minor without the consent of the minor—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>who solely is requesting from the applicant pregnancy testing or testing or treatment for venereal disease;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>who is the victim of incest involving a parent; or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>if an adult sibling of the minor or an adult aunt, uncle, or grandparent who is related to the minor by blood certifies to the grantee that notification of the parents or guardians of such minor would result in physical injury to such minor; and</content> </clause> </subparagraph> <page identifier="/us/stat/95/588">95 STAT. 588</page> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>assurances that the applicant will not require, with respect to the provision of services, the permission of the parents or guardians of any pregnant unemancipated minor if such parents or guardians are attempting to compel such minor to have an abortion;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="23">“(23) </num><content>assurances that primary emphasis for services supported under this title shall be given to adolescents seventeen and under who are not able to obtain needed assistance through other means;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="24">“(24) </num><content>assurances that funds received under this title shall supplement and not supplant funds received from any other Federal, State, or local program or any private sources of funds; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="25">“(25) </num><content>a plan for the conduct of, and assurances that the applicant will conduct, evaluations of the effectiveness of the services supported under this title in accordance with subsection (b).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Each grantee which receives funds for a demonstration project for services under this title shall expend at least 1 per centum but not in excess of 5 per centum of the amounts received under this title for the conduct of evaluations of the services supported under this title. The Secretary may, for a particular grantee upon good cause shown, waive the provisions of the preceding sentence with respect to the amounts to be expended on evaluations, but may not waive the requirement that such evaluations be conducted.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Evaluations required by paragraph (1) shall be conducted by an organization or entity which is independent of the grantee providing services supported under this title. To assist in conducting the evaluations required by paragraph (1), each grantee shall develop a working relationship with a college or university located in the grantee’s State which will provide or assist in providing monitoring and evaluation of services supported under this title unless no college or university in the grantee s State is willing or has the capacity to provide or assist in providing such monitoring and assistance.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The Secretary may provide technical assistance with respect to the conduct of evaluations required under this subsection to any grantee which is unable to develop a working relationship with a college or university in the applicant’s State for the reasons described in paragraph (2).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Each grantee which receives funds for a demonstration project for services under this title shall make such reports concerning its use of Federal funds as the Secretary may require. Reports shall include, at such times as are considered appropriate by the Secretary, the results of the evaluations of the services supported under this title.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><content>A grantee shall periodically notify the Secretary of the exact number of instances in which a grantee does not notify the parents or guardians of a pregnant unemancipated minor under subsection (a)(22)(B)(iii).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>For purposes of subsection (a)(22)(B)(iii), the term “adult” means an adult as defined by State law.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><content>Each applicant shall provide the Governor of the State in which the applicant is located a copy of each application submitted to the Secretary for a grant for a demonstration project for services under this title. The Governor shall submit to the applicant comments on any such application within the period of sixty days beginning on the day when the Governor receives such copy. The <page identifier="/us/stat/95/589">95 STAT. 589</page>applicant shall include the comments of the Governor with such application.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><content>No application submitted far a grant for a demonstration project for care services under this title may be approved unless the Secretary is satisfied that core services shall be available through the applicant within a reasonable time after such grant is received.</content> </subsection> </section> <section> <heading class="centered smallCaps">“coordination of federal and state programs</heading><num value="2007">“<inline class="smallCaps">Sec</inline>. 2007. </num><subsection class="inline"><num value="a">(a) </num><chapeau>The Secretary shall coordinate Federal policies and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300z–6">42 USC 300z–6</ref>.</p></sidenote>programs providing services relating to the prevention of adolescent sexual relations and initial and recurrent adolescent pregnancies and providing care services for pregnant adolescents. In achieving such coordination, the Secretary shall—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>require grantees who receive funds for demonstration projects for services under this title to report periodically to the Secretary concerning Federal, State, and local policies and programs that interfere with the delivery of and coordination of pregnancy prevention services and other programs of care for pregnant adolescents and adolescent parents;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>provide technical assistance to facilitate coordination by State and local recipients of Federal assistance;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>review all programs administered by the Department of Health and Human Services which provide prevention services or care services to determine if the policies of such programs are consistent with the policies of this title, consult with other departments and agencies of the Federal Government who administer programs that provide such services, and encourage such other departments and agencies to make recommendations, as appropriate, for legislation to modify such programs in order to facilitate the use of all Government programs which provide such services as a basis for delivery of more comprehensive prevention services and more comprehensive programs of care for pregnant adolescents and adolescent parents;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>give priority in the provision of funds, where appropriate, to applicants using single or coordinated grant applications for multiple programs; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>give priority, where appropriate, to the provision of funds under Federal programs administered by the Secretary (other than the program established by this title) to projects providing comprehensive prevention services and comprehensive programs of care for pregnant adolescents and adolescent parents.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>Any recipient of a grant for a demonstration project for services under this title shall coordinate its activities with any other recipient of such a grant which is located in the same locality.</content> </subsection> </section> <section> <heading class="centered smallCaps">“research</heading><num value="2008">“<inline class="smallCaps">Sec</inline>. 2008. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary may make grants and enter into <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300z–7">42 USC 300z–7</ref>.</p></sidenote>contracts with public agencies or private organizations or institutions of higher education to support the research and dissemination activities described in paragraphs (4), (5), and (6) of section 2001(b).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary may make grants or enter into contracts under this section for a period of one year. A grant or contract under this section for a project may be renewed for four additional one-year periods, which need not be consecutive.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>A grant or contract for any one-year period under this section may not exceed $100,000 for the direct costs of conducting research or <page identifier="/us/stat/95/590">95 STAT. 590</page>disemination activities under this section and may include such additional amounts for the indirect costs of conducting such activities as the Secretary determines appropriate. The Secretary may waive the preceding sentence with respect to a specific project if he determines that—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>exceptional circumstances warrant such waiver and that the project will have national impact; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>additional amounts are necessary for the direct costs of conducting limited demonstration projects for the provision of necessary services in order to provide data for research carried out under this title.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>The amount of any grant or contract made under this section may remain available for obligation or expenditure after the close of the one-year period for which such grant or contract is made in order to assist the recipient in preparing the report required by subsection (f)(1).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Funds provided for research under this section may be used for descriptive or explanatory surveys, longitudinal studies, or limited demonstration projects for services that are for the purpose of increasing knowledge and understanding of the matters described in paragraphs (4) and (5) of section 2001(b).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Funds provided under this section may not be used for the purchase or improvement of land, or the purchase, construction, or permanent improvement (other than minor remodeling) of any building or facility.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><chapeau>The Secretary may not make any grant or enter into any contract to support research or dissemination activities under this section unless—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the Secretary has received an application for such grant or contract which is in such form and which contains such information as the Secretary may by regulation require;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the applicant has demonstrated that the applicant is capable of conducting one or more of the types of research or dissemination activities described in paragraph (4), (5), or (6) of section 2001(b); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>in the case of an application for a research project, the panel established by subsection (e)(2) has determined that the project is of scientific merit.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>The Secretary shall, where appropriate, coordinate research and dissemination activities carried out under this section with research and dissemination activities carried out by the National Institutes of Health.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall establish a system for the review of applications for grants and contracts under this section. Such system shall be substantially similar to the system for scientific peer review of the National Institutes of Health and shall meet the requirements of paragraphs (2) and (3).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>In establishing the system required by paragraph (1), the Secretary shall establish a panel to review applications under this section. Not more than 25 per centum of the members of the panel shall be physicians. The panel shall meet as often as may be necessary to facilitate the expeditious review of applications under this section, but not less than once each year. The panel shall review each project for which an application is made under this section, evaluate the scientific merit of the project, determine whether the project is of scientific merit, and make recommendations to the Secretary concerning whether the application for the project should be approved.</content></paragraph> <page identifier="/us/stat/95/591">95 STAT. 591</page> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The Secretary shall make grants under this section from among the projects which the panel established by paragraph (2) has determined to be of scientific merit and may only approve an application for a project if the panel has made such determination with respect to such a project. The Secretary shall make a determination with respect to an application within one month after receiving the determinations and recommendations of such panel with respect to the application.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><paragraph class="inline"><num value="1">(1) </num><subparagraph class="inline"><num value="A">(A) </num><content>The recipient of a grant or contract for a research project under this section shall prepare and transmit to the Secretary a report describing the results and conclusions of such research. Except as provided in subparagraph (B), such report shall be transmitted to the Secretary not later than eighteen months after the end of the year for which funds are provided under this section. The recipient may utilize reprints of articles published or accepted for publication in professional journals to supplement or replace such report if the research contained in such articles was supported under this section during the year for which the report is required.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>In the Ace of any research project for which assistance is provided under this section for two or more consecutive one-year periods, the recipient of such assistance shall prepare and transmit the report required by subparagraph (A) to the Secretary not later than twelve months after the end of each one-year period for which such funding is provided.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Recipients of grants and contracts for dissemination under this section shall submit to the Secretary such reports as the Secretary determines appropriate.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><content>In carrying out functions relating to the conduct and support of research under this section, the Secretary shall not be subject to the provisions of chapter 35 of title 44, United States Code, except with <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2812">94 Stat 2812</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t44/s3501">44 USC 3501 <i>et seq</i></ref>.</p></sidenote>respect to the collection of survey data which primarily will be used for the generation of national population estimates.</content> </subsection> </section> <section> <heading class="centered smallCaps">“evaluation and administration</heading><num value="2009">“<inline class="smallCaps">Sec</inline>. 2009. </num><subsection class="inline"><num value="a">(a) </num><content>Of the funds appropriated under this title, the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300z–8">42 USC 300z–8</ref>.</p></sidenote>Secretary shall reserve not less than 1 per centum and not more than 3 per centum for the evaluation of activities carried out under this title. The Secretary shall submit to the appropriate committees of the <sidenote><p class="indent0 firstIndent0 fontsize8">Submittal to congressional committees.</p></sidenote>Congress a summary of each evaluation conducted under this section.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>The officer or employee of the Department of Health and Human Services designated by the Secretary to carry out the provisions of this title shall report directly to the Assistant Secretary for Health with respect to the activities of such officer or employee in carrying out such provisions.</content> </subsection> </section> <section> <heading class="centered smallCaps">“authorization of appropriations</heading><num value="2010">“<inline class="smallCaps">Sec</inline>. 2010. </num><subsection class="inline"><num value="a">(a) </num><content>For the purpose of carrying out this title, there are <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300z–9">42 USC 300z–9</ref>.</p></sidenote>authorized to be appropriated $30,000,000 for the fiscal year ending September 30, 1982, $30,000,000 for the fiscal year ending September 30, 1983, and $30,000,000 for the fiscal year ending September 30, 1984.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>At least two-thirds of the amounts appropriated to carry out this title shall be used to make grants for demonstration projects for services.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Not more than one-third of the amounts specified under subsection (b) for use for grants for demonstration projects for <page identifier="/us/stat/95/592">95 STAT. 592</page>services shall be used for grants for demonstration projects for prevention services.</content> </subsection> </section> <section> <heading class="centered smallCaps">“restrictions</heading><num value="2011">“<inline class="smallCaps">Sec</inline>. 2011. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300z–10">42 USC 300z–10</ref>.</p></sidenote> <content class="inline">Grants or payments may be made only to programs or projects which do not provide abortions or abortion counseling or referral, or which do not subcontract with or make any payment to any person who provides abortions or abortion counseling or referral, except that any such program or project may provide referral for abortion counseling to a pregnant adolescent if such adolescent and the parents or guardians of such adolescent request such referral; and grants may be made only to projects or programs which do not advocate, promote, or encourage abortion.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>The Secretary shall ascertain whether programs or projects comply with subsection (a) and take appropriate action if programs or projects do not comply with such subsection, including withholding of funds.”.</content> </subsection> </section> (b)

Repeals.

42 USC 300a–21.

42 USC 300a–41.

42 USC 300a–21 note.

 Effective October 1, 1981, titles VI, VII, and VIII of the Health Services and Centers Amendments of 1978 are repealed.
Subtitle H—Alcohol and Drug Programs CHAPTER 1—ALCOHOL ABUSE AND ALCOHOLISM PREVENTION, TREATMENT, AND REHABILITATION
referenceSec. 960. Except as otherwise specifically provided, whenever in this subtitle an amendment or repeal is expressed in terms of an amendment to, or a repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Comprehensive Alcohol Abuse and Alcoholism Prevention,

42 USC 4541 note.

Treatment, and Rehabilitation Act of 1970.
alcohol abuse and alcoholism among government and other employeesSec. 961.

42 USC 4561.

 Section 201(b)(2)(B) is amended by striking out “single State agencies designated pursuant to section 303 of this Act” and inserting in lieu thereof “the State agencies responsible for the administration of alcohol abuse prevention, treatment, and rehabilitation activities”.
technical assistanceSec. 962. (a)

42 USC 4571.

 Section 301 is amended to read as follows:
“technical assistance“Sec. 301. (a) On the request of any State, the Secretary, acting through the Institute, shall, to the extent feasible, make available technical assistance for— “(1) developing and improving systems for data collection; “(2) program management, accountability, and evaluation; “(3) certification, accreditation, or licensure of treatment facilities and personnel; “(4) monitoring compliance by hospitals and other facilities

42 USC 4581.

with the requirements of section 321; and 95 STAT. 593 “(5) eliminating exclusions in health insurance coverage offered in the State which are based on alcoholism or alcohol abuse. “(b) Insofar as practicable, technical assistance provided under this section shall be provided in a manner which will improve coordination between activities supported under this Act and under the Drug Abuse Prevention, Treatment, and Rehabilitation Act.”.

21 USC 1101 note.

Repeals.

42 USC 4572, 4573, 4576.
(b) Sections 302, 303, and 310 are repealed.
grants and contractsSec. 963. (a) The section heading for section 311 is amended to read

42 USC 4577.

as follows: “grants and contracts for the demonstration of new and more effective alcohol abuse and alcoholism prevention, treatment, and rehabilitation programs”. (b) Section 311(a) is amended— (1) by adding at the end of clause (1) “and with particular emphasis on developing new and more effective alcohol abuse and alcoholism prevention, treatment, and rehabilitation programs,”; (2) by inserting “and” after the comma the last place it appears in clause (2); (3) by striking out clauses (3) and (5) and by redesignating clause (4) as clause (3); and (4) by striking out the comma and “and” at the end of clause (3) (as redesignated by clause (2) of this subsection) and inserting in lieu thereof a period. (c) (1) Section 311(c)(2)(A) is amended— (A) by striking out “designated under section 303 of this Act, if such designation has been made” in the first sentence and inserting in lieu thereof “responsible for the administration of alcohol abuse and alcoholism prevention, treatment, and rehabilitation activities”; (B) by striking out “the” before “State comprehensive plan” in the third sentence and inserting in lieu thereof “any”; and (C) by striking out “under section 303” in the third sentence. (2) Section 311(c)(3) is amended— (A) by inserting “and” after the semicolon in clause (B); (B) by striking out the semicolon and “and” at the end of clause (C) and inserting in lieu thereof a period; and (C) by striking out clause (D). (3) Section 311(c)(4) is amended to read as follows: “(4) The Secretary shall encourage the submission of and give special consideration to applications under this section for programs and projects aimed at underserved populations such as racial and ethnic minorities, Native Americans, youth, the elderly, women, handicapped individuals, public inebriates, and families of alcoholics.” (4) Section 311(c) is further amended— (A) by redesignating paragraph (5) as paragraph (6); (B) by inserting after paragraph (4) the following new paragraph: “(5) (A) No grant may be made under this section to a State or to any entity within the government of a State unless the grant application has been duly authorized by the chief executive officer of such State. 95 STAT. 594 “(B) No grant or contract may be made under this section for a period in excess of five years. “(C) (i) The amount of any grant or contract under this section may not exceed 100 per centum of the cost of carrying out the grant or contract in the first fiscal year for which the grant or contract is made under this section, 80 per centum of such cost in the second fiscal year for which the grant or contract is made under this section, 70 per centum of such cost in the third fiscal year for which the grant or contract is made under this section, and 60 per centum of such cost in each of the fourth and fifth fiscal years for which the grant or contract is made under this section. “(ii) For purposes of this subparagraph, no grant or contract shall be considered to have been made under this section for a fiscal year ending before September 30, 1981.”; and (C) by adding at the end thereof the following new paragraph: “(7) Nothing shall prevent the use of funds provided under this section for programs and projects aimed at the prevention, treatment, or rehabilitation of drug abuse as well as alcohol abuse and alcoholism.”.
authorization of appropriations; project grants and contractsSec. 964. (a)

42 USC 4578.

 The first sentence of section 312 is amended— (A) by striking out “sections 310 and 311” and inserting in lieu thereof “section 311”; and (B) by striking out “and” after “1980,” and by inserting before the period a comma and “and $15,000,000 for the fiscal year ending September 30, 1982”. (b) The second sentence of such section is amended by striking out “and” after the semicolon the first place it appears and by inserting before the period a semicolon and “and of the funds appropriated under this section for the fiscal year ending September 30, 1982, at least 25 per centum of the funds shall be obligated for such grants”.
alcohol abuse research and research centersSec. 965. (a)

42 USC 4588.

 Section 503 (42 U.S.C. 4587) is amended— (A) by inserting “(a)” after “503.”, (B) by striking out “the purposes of sections 501 and 502” and inserting in lieu thereof “this title”, (C) by striking out “and” after “1980,”, and (D) by striking out the period and inserting in lieu thereof a comma and the following: “$25,000,000 for the fiscal year ending September 30, 1982. Of the funds appropriated under this section for any fiscal year beginning after September 30, 1981, not more than 35 per centum may be obligated for grants under section 503.” (b)

42 USC 4587.

 Section 504(b) (42 U.S.C. 4588(b)) is amended by adding at the end the following: “The Secretary shall include in the grants made under this section for fiscal years beginning after September 30, 1981, a grant to a designated Center for research on the effects of alcohol on the elderly.”. (c)

42 USC 4587, 4588.

 Section 503 is inserted after section 504 of such Act and is redesignated as section 504 and the section 504 of such Act relating to National Alcohol Research Centers is redesignated as section 503.
95 STAT. 595
technical amendmentsSec. 966. (a) The first sentence of section 101(a) is amended (1) by

42 USC 4551.

striking out “Health, Education, and Welfare” and inserting in lieu thereof “Health and Human Services”, and (2) by striking out “and part C of the Community Mental Health Centers Act”. (b) Section 102(1) is amended by striking out “and part C of the

42 USC 4552.

Community Mental Health Centers Act”. (c) Section 103(b) is amended by striking out “Health, Education,

42 USC 4553.

and Welfare” and inserting in lieu thereof “Health and Human Services”. (d) Section 201(b)(4) is amended by striking out “Office and Treatment

42 USC 4561.

Act of 1972” and inserting in lieu thereof “Prevention, Treatment, and Rehabilitation Act”. (e) Section 201(e) is amended by striking out “Health, Education, and Welfare” and inserting in lieu thereof “Health and Human Services”. (f) (1) The heading far title III is amended to read as follows: <num value="III">“TITLE III—</num><heading>TECHNICAL ASSISTANCE AND FEDERAL GRANTS AND CONTRACTS”</heading> (2) The heading for part A of title III is amended to read as follows: “Part A—Technical Assistance”.
CHAPTER 2—DRUG ABUSE PREVENTION, TREATMENT, AND REHABILITATION
referenceSec. 967. Except as otherwise specifically provided, whenever in this chapter an amendment or repeal is expressed in terms of an amendment to, or a repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Drug Abuse Prevention, Treatment, and Rehabilitation Act.

21 USC 1101 note.
additional drug abuse prevention functionsSec. 968. (a) Section 406(a) is amended—

21 USC 1173.

 (1) by inserting “and” after the semicolon in clause (2); (2) by striking out the semicolon and “and” at the end of clause (3) and inserting in lieu thereof a period; and (3) by striking out clause (4). (b) The section heading for section 406 is amended by striking out “Health, Education, and Welfare” and inserting in lieu thereof “Health and Human Services”. (c) The item relating to section 406 in the table of sections for title IV is amended by striking out “Health, Education, and Welfare” and inserting in lieu thereof “Health and Human Services”.
formula grantsSec. 969. (a) Section 409 is repealed.

Repeal.

21 USC 1176.

 (b) The table of sections for title IV is amended by striking out the item relating to section 409.
95 STAT. 596
grants and contractsSec. 970. (a) (1)

21 USC 1177.

 The section heading for section 410 is amended to read as follows:
“§ 410. Grants and contracts for the demonstration of new and more effective prevention, treatment, and rehabilitation programs.”.
(2) The item relating to section 410 in the table of sections for title IV is amended to read as follows: “410. (b) (1) The first sentence of section 410(a) is amended to read as follows: “The Secretary acting through the National Institute on Drug Abuse, may make grants to and enter into contracts with individuals and public and private nonprofit entities— “(1) to provide training seminars, educational programs, and technical assistance for the development, demonstration, and evaluation of drug abuse prevention, treatment, and rehabilitation programs; and “(2) to conduct demonstration and evaluation projects, with a high priority on prevention and early intervention projects and on identifying new and more effective drug abuse prevention, treatment, and rehabilitation programs.”. (2) Section 410(a) is further amended by adding at the end thereof the following new sentence: “Furthermore, nothing shall prevent the use of funds provided under this section for programs and projects aimed at the prevention, treatment, and rehabilitation of alcohol abuse and alcoholism as well as drug abuse.”. (c)

Appropriation authorization.

 Section 410(b) is amended by adding at the end thereof the following new sentences: “For carrying out the purposes of this section, there are authorized to be appropriated $15,000,000 for the fiscal year ending September 30, 1982. Of the funds appropriated under the preceding sentence, at least 25 per centum of the funds shall be obligated for grants and contracts for primary prevention and intervention programs designed to discourage individuals, particularly individuals in high risk populations, from abusing drugs.”. (d) (1) (A) The first sentence of section 410(c)(2) is amended by striking out “designated or established under section 409” and inserting in lieu thereof “responsible for the administration of drug abuse prevention activities”. (B) The third sentence of such section is amended— (i) by striking out “the” before “State comprehensive plan” and inserting in lieu thereof “any”; and (ii) by striking out “under section 409”. (2) Section 410(c)(3) is amended— (A) by inserting “and” after the semicolon in clause (B); (B) by striking out the semicolon and “and” at the end of clause (C) and inserting in lieu thereof a period; and (C) by striking out clause (D). (e) Section 410(d) is amended to read as follows: “(d) The Secretary shall encourage the submission of and give special consideration to applications under this section to programs and projects aimed at underserved populations such as racial and ethnic minorities, native Americans, youth, the elderly, women, handicapped individuals, and families of drug abusers.”. 95 STAT. 597 (f) Section 410 is further amended by adding at the end thereof the

21 USC 1177.

following new subsection: “(g) (1) No grant may be made under this section to a State or to any entity within the government of a State unless the grant application has been duly authorized by the chief executive officer of such State. “(2) No grant or contract may be made under this section for a period in excess of five years. “(3) (A) The amount of any grant or contract under this section may not exceed 100 per centum of the cost of carrying out the grant or contract in the first fiscal year for which the grant or contract is made under this section, 80 per centum of such cost in the second fiscal year for which the grant or contract is made under this section, 70 per centum of such cost in the third fiscal year for which the grant or contract is made under this section, and 60 per centum of such cost in each of the fourth and fifth fiscal years for which the grant or contract is made under this section. “(B) For purposes of this paragraph, no grant or contract shall be considered to have been made under this section for a fiscal year ending before September 30, 1981.”.
records and auditSec. 971. Section 411(a) is amended by striking out “409 or”.

21 USC 1178.
drug abuse researchSec. 972. (a) Section 503 is amended—

21 USC 1193.

 (1) by inserting “(a)” before “The Director shall”; (2) by striking out “and” after the semicolon in clause (3); (3) by striking out the period at the end of clause (4) and inserting in lieu thereof a semicolon and “and”; and (4) by inserting after clause (4) the following new clause: “(5) drug abuse prevention, treatment, and rehabilitation.”; (5) by striking out “this section” in the last sentence and inserting in lieu thereof “this subsection”; and (6) by adding at the end the following: “(b) The Director may— “(1) make grants or enter into contracts with individuals and public and nonprofit entities for the purpose of determining the causes of drug abuse in a particular area, and “(2) make grants to and enter into contracts with individuals and public and private nonprofit entities for research respecting improved drug maintenance and detoxification techniques and programs. “(c) For the purposes of subsections (a) and (b), there are authorized

Appropriation authorization.

to be appropriated $45,000,000 for the fiscal year ending September 30, 1982.”. (b) The heading for section 503 of such Act is amended by striking out “certain research and development” and inserting in lieu thereof “research”. (c) The item relating to section 503 in the table of sections for title V of such Act is amended by striking out “certain research and development” and inserting in lieu thereof “research”.
95 STAT. 598
technical amendmentsSec. 973. (a)

21 USC 1115.

 Section 205 is amended by striking out “Health, Education, and Welfare” and inserting in lieu thereof “Health and Human Services”. (b)

21 USC 1162.

 Section 302 is amended by striking out “Health, Education, and Welfare” and inserting in lieu thereof “Health and Human Services”. (c) (1)

21 USC 1172.

 Section 405 is amended by striking out “Health, Education, and Welfare” each place it appears and inserting in lieu thereof “Health and Human Services”. (2) The section heading for section 405 is amended by striking out “Health, Education, and Welfare” and inserting in lieu thereof “Health and Human Services”. (3) The item relating to section 405 in the table of sections for title IV is amended by striking out “Health, Education, and Welfare” and inserting in lieu thereof “Health and Human Services”. (d)

21 USC 1175.

 Section 408(g) is amended by striking out “Health, Education, and Welfare” and inserting in lieu thereof “Health and Human Services”. (e)

21 USC 1180.

 Section 413(b)(2)(B) is amended by striking out “single State agencies designated pursuant to section 409(e)(1) of this Act” and inserting in lieu thereof “the State agencies responsible for the administration of drug abuse prevention activities”. (f)

21 USC 1191.

 Section 501 is amended by striking out “Health, Education, and Welfare” and inserting in lieu thereof “Health and Human Services”.
Subtitle I—

Consumer-Patient Radiation Health and Safety Act of 1981.

 Consumer-Patient Radiation Health and Safety Act of 1981
short titleSec. 975.

42 USC 10001 note.

 This subtitle may be cited as the “Consumer-Patient Radiation Health and Safety Act of 1981”.
statement of findingsSec. 976.

42 USC 10001.

 The Congress finds that— (1) it is in the interest of public health and safety to minimize unnecessary exposure to potentially hazardous radiation due to medical and dental radiologic procedures; (2) it is in the interest of public health and safety to have a continuing supply of adequately educated persons and appropriate accreditation and certification programs administered by State governments; (3) the protection of the public health and safety from unnecessary exposure to potentially hazardous radiation due to medical and dental radiologic procedures and the assurance of efficacious procedures are the responsibility of State and Federal governments; (4) persons who administer radiologic procedures, including procedures at Federal facilities, should be required to demonstrate competence by reason of education, training, and experience; and (5) the administration of radiologic procedures and the effect on individuals of such procedures have a substantial and direct effect upon United States interstate commerce.
95 STAT. 599
statement of purposeSec. 977. It is the purpose of this subtitle to—

42 USC 10002.

 (1) provide for the establishment of minimum standards by the Federal Government for the accreditation of education programs for persons who administer radiologic procedures and for the certification of such persons; and (2) insure that medical and dental radiologic procedures are consistent with rigorous safety precautions and standards.
definitionsSec. 978. Unless otherwise expressly provided, for purposes of this

42 USC 10003.

subtitle, the term— (1) “radiation” means ionizing and nonionizing radiation in amounts beyond normal background levels from sources such as medical and dental radiologic procedures; (2) “radiologic procedure” means any procedure or article intended for use in— (A) the diagnosis of disease or other medical or dental conditions in humans (including diagnostic X-rays or nuclear medicine procedures); or (B) the cure, mitigation, treatment, or prevention of disease in humans; that achieves its intended purpose through the emission of radiation; (3) “radiologic equipment” means any radiation electronic product which emits or detects radiation and which is used or intended for use to— (A) diagnose disease or other medical or dental conditions (including diagnostic X-ray equipment); or (B) cure, mitigate, treat, or prevent disease in humans; that achieves its intended purpose through the emission or detection of radiation; (4) “practitioner” means any licensed doctor of medicine, osteopathy, dentistry, podiatry, or chiropractic, who prescribes radiologic procedures for other persons; (5) “persons who administer radiologic procedures” means any person, other than a practitioner, who intentionally administers radiation to other persons for medical purposes, and includes medical radiologic technologists (including dental hygienists and assistants), radiation therapy technologists, and nuclear medicine technologists; (6) “Secretary” means the Secretary of Health and Human Services; and (7) “State” means the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the Virgin Islands, Guam, American Samoa, and the Trust Territory of the Pacific Islands.
promulgation of standardsSec. 979. (a) Within twelve months after the date of enactment of

Regulation.

42 USC 10004.

this Act, the Secretary, in consultation with the Radiation Policy Council, the Administrator of Veterans’ Affairs, the Administrator of the Environmental Protection Agency, appropriate agencies of the States, and appropriate professional organizations, shall by regulation promulgate minimum standards for the accreditation of educa-95 STAT. 600tional programs to train individuals to perform radiologic procedures. Such standards shall distinguish between programs for the education of (1) medical radiologic technologists (including radiographers), (2) dental auxiliaries (including dental hygienists and assistants), (3) radiation therapy technologists, (4) nuclear medicine technologists, and (5) such Other kinds of health auxiliaries who administer radiologic procedures as the Secretary determines appropriate. Such standards shall not be applicable to educational programs for practitioners. (b)

Regulation.

 Within twelve months after the date of enactment of this Act, the Secretary, in consultation with the Radiation Policy Council, the Administrator of Veterans’ Affairs, the Administrator of the Environmental Protection Agency, interested agencies of the States, and appropriate professional organizations, shall by regulation promulgate minimum standards for the certification of persons who administer radiologic procedures. Such standards shall distinguish between certification of (1) medical radiologic technologists (including radiographers), (2) dental auxiliaries (including dental hygienists and assistants), (3) radiation therapy technologists, (4) nuclear medicine technologists, and (5) such other kinds of health auxiliaries who administer radiologic procedures as the Secretary determines appropriate. Such standards shall include minimum certification criteria for individuals with regard to accredited education, practical experience, successful passage of required examinations, and such other criteria as the Secretary shall deem necessary for the adequate qualification of individuals to administer radiologic procedures. Such standards shall not apply to practitioners.
model statuteSec. 980.

42 USC 10005.

 In order to encourage the administration of accreditation and certification programs by the States, the Secretary shall prepare and transmit to the States a model statute for radiologic procedure safety. Such model statute shall provide that— (1) it shall be unlawful in a State for individuals to perform radiologic procedures unless such individuals are certified by the State to perform such procedures; and (2) any educational requirements for certification of individuals to perform radiologic procedures shall be limited to educational programs accredited by the State.
complianceSec. 981. (a)

42 USC 10006.

 The Secretary shall take all actions consistent with law to effectuate the purposes of this subtitle. (b) A State may utilize an accreditation or certification program administered by a private entity if— (1) such State delegates the administration of the State accreditation or certification program to such private entity; (2) such program is approved by the State; and (3) such program is consistent with the minimum Federal standards promulgated under this subtitle for such program. (c) Absent compliance by the States with the provisions of this subtitle within three years after the date of enactment of this Act, the Secretary shall report to the Congress recommendations for legislative changes considered necessary to assure the States’ compliance with this subtitle. 95 STAT. 601 (d) The Secretary shall be responsible for continued monitoring of

Report to Congress.

compliance by the States with the applicable provisions of this subtitle and shall report to the Senate and the House of Representatives by January 1, 1982, and January 1 of each succeeding year the status of the States’ compliance with the purposes of this subtitle. (e) Notwithstanding any other provision of this section, in the case of a State which has, prior to the effective date of standards and guidelines promulgated pursuant to this subtitle, established standards for the accreditation of educational programs and certification of radiologic technologists, such State shall be deemed to be in compliance with the conditions of this section unless the Secretary determines, after notice and hearing, that such State standards do not meet the minimum standards prescribed by the Secretary or are inconsistent with the purposes of this subtitle.
federal radiation guidelinesSec. 982. The Secretary shall, in conjunction with the Radiation

42 USC 10007.

Policy Council, the Administrator of Veterans’ Affairs, the Administrator of the Environmental Protection Agency, appropriate agencies of the States, and appropriate professional organizations, promulgate Federal radiation guidelines with respect to radiologic procedures. Such guidelines shall— (1) determine the level of radiation exposure due to radiologic procedures which is unnecessary and specify the techniques, procedures, and methods to minimize such unnecessary exposure; (2) provide for the elimination of the need for retakes of diagnostic radiologic procedures; (3) provide for the elimination of unproductive screening programs; (4) provide for the optimum diagnostic information with minimum radiologic exposure; and (5) include the therapeutic application of radiation to individuals in the treatment of disease, including nuclear medicine applications.
applicability to federal agenciesSec. 983. (a) Except as provided in subsection (b), each department,

42 USC 10008.

agency, and instrumentality of the executive branch of the Federal Government shall comply with standards promulgated pursuant to this subtitle. (b) (1) The Administrator of Veterans’ Affairs, through the Chief

Regulations.

Medical Director of the Veterans’ Administration, shall, to the maximum extent feasible consistent with the responsibilities of such Administrator and Chief Medical Director under subtitle 38, United States Code. prescribe regulations making the standards promulgated

38 USC 101 et seq.

pursuant to this subtitle applicable to the provision of radiologic procedures in facilities over which the Administrator has jurisdiction. In prescribing and implementing regulations pursuant to this subsection, the Administrator shall consult with the Secretary in order to achieve the maximum possible coordination of the regulations, standards, and guidelines, and the implementation thereof, which the Secretary and the Administrator prescribe under this subtitle. (2) Not later than 180 days after standards are promulgated by the

Report to congressional committees.

Secretary pursuant to this subtitle, the Administrator of Veterans’ 95 STAT. 602Affairs shall submit to the appropriate committees of Congress a full report with respect to the regulations (including guidelines, policies, and procedures thereunder) prescribed pursuant to paragraph (1) of this subsection. Such report shall include— (A) an explanation of any inconsistency between standards made applicable by such regulations and the standards promulgated by the Secretary pursuant to this subtitle; (B) an account of the extent, substance, and results of consultations with the Secretary respecting the prescription and implementation of regulations by the Administrator; and (C) such recommendations for legislation and administrative action as the Administrator determines are necessary and desirable. (3)

Publication in Register Register.

 The Administrator of Veterans’ Affairs shall publish the report required by paragraph (2) in the Federal Register.
Subtitle J—Orderly Closure, Transfer, and Financial Self-Sufficiency of Public Health Service Hospitals and Clinics
findings and purposesSec. 985. (a)

42 USC 248b note.

 Congress finds that— (1) because of national budgetary considerations, it has become necessary to terminate Federal appropriations for Public Health Service hospitals and clinics, (2) with proper planning and coordination, some of these hospitals and clinics could be transferred to State, local, or private control or become financially self-sufficient and continue to provide effective and efficient health care to individuals in the areas in which they are located, (3) a precipitous closure of these hospitals and clinics will preclude the possibility of such orderly transfer to entities which are willing and able to take over operations at such facilities and will cause unnecessary and costly hardships on the patients and staffs at such facilities and on the communities in which the facilities are located, and (4) it is in the national interest, consistent with sound budgetary considerations, to assist in the orderly and prompt transfer of such operations to State, local, or private operation or in the achievement of financial self-sufficiency where feasible. (b) The purposes of this subtitle are— (1) to provide for the prompt and orderly closure by October 31, 1981, of Public Health Service hospitals and clinics which cannot reasonably be transferred to State, local, or private operation or become financially self-sufficient and for the transfer or achievement of financial self-sufficiency by September 30, 1982, of those hospitals and clinics which can be so transferred or which can achieve such financial self-sufficiency, and (2) to provide for transitional assistance for merchant seamen whose entitlement to receive free care through Public Health Service hospitals and clinics is repealed and who are hospitalized at the end of fiscal year 1981 and require continuing hospitalization.
95 STAT. 603
elimination of merchant marine entitlement to health servicesSec. 986. (a) Subsection (h) of section 2 and subsections (a) and (b) of section 322 of the Public Health Service Act are repealed.

42 USC 201, 249.

 (b) (1) Section 322(e) of such Act is amended— (A) by striking out “entitled to care and treatment under subsection (a) of this section and persons”; and (B) by striking out “subsection (c)” and inserting in lieu thereof “subsection (a)”. (2) Subsections (c), (d), and (e) of section 322 of such Act are redesignated as subsections (a), (b), and (c), respectively. (3) The section heading for section 322 of such Act is amended by striking out “seamen” and inserting in lieu thereof “persons under quarantine”. (4) Section 332(a)(2)(C) of such Act is amended by striking out

42 USC 254e.

“seamen” and inserting in lieu thereof “persons under quarantine”. (c) The amendments and repeals made by this section shall take

Effective date.

42 USC 249 note.

effect on October 1, 1981.
proposals for transfer or financial self-sufficiency of public health service hospitals and clinicsSec. 987. (a) The Secretary of Health and Human Services (hereinafter

42 USC 248b.

in this subtitle referred to as the “Secretary”) shall, in accordance with this section and notwithstanding section 818 of Public Law 93–155, provide for the closure, transfer, or financial self-sufficiency

42 USC 248a.

of all hospitals and other stations of the Public Health Service (hereinafter in this subtitle referred to as the “Service”) not later than September 30, 1982. (b) Not later than July 1, 1981, the Secretary shall notify each Service hospital and other station, and the chief executive officer of each State and of each locality in which such a hospital or other station is located, that the Secretary will accept proposals for the transfer of each such hospital and station from the Service to a public (including Federal) or nonprofit private entity or for the achievement of financial self-sufficiency of each such hospital and station not later than September 30, 1982. No such proposal shall be considered by the Secretary if it is submitted later than September 1, 1981. (c) The Secretary shall evaluate promptly each proposal submitted under subsection (b) with respect to a hospital or other station and determine, not later than September 30, 1981, whether or not under such proposal the hospital or station— (1) will be maintained as a general health care facility providing a range of services to the population within its service area, (2) will continue to make services available to existing patient populations, and (3) has a reasonable expectation of financial viability and, in the case of a hospital or station that is not proposed to be transferred, of financial self-sufficiency.

Paragraph (1) shall not apply in the case of a proposal for the transfer of a discrete, minor, freestanding part of a hospital or station to a local public entity for the purpose of continuing the provision of services to refugees.

 (d) (1) If the Secretary determines that a proposal for a hospital or other station does not meet the standards of subsection (c) or if there is no proposal submitted under subsection (b) with respect to a hospital or other station, the Secretary shall provide for the closure of the hospital or station by not later than October 31, 1981. 95 STAT. 604 (2) If the Secretary determines that a proposal for a hospital or other station meets the standards of subsection (c), the Secretary shall take such steps, within the amounts available through appropriations, as may be necessary and proper— (A) to operate (or participate or assist in the operation of) the hospital or station by the Service until the transfer is accomplished or financial self-sufficiency is achieved, (B) to bring the hospital or station into compliance with applicable licensure, accreditation, and local medical practice standards, and (C) to provide for such other legal, administrative, personnel, and financial arrangements (including allowing payments made with respect to services provided by the hospital or station to be made directly to that hospital or station) as may be necessary to effect a timely and orderly transfer of such hospital or station (including the land, building, and equipment thereof) from the Service, or for the financial self-sufficiency of the hospital or station, not later than September 30, 1982. (e) There is established, within the Office of the Assistant Secretary for Health of the Department of Health and Human Services, an identifiable administrative unit which shall have direct responsibility and authority for overseeing the activities under this section. (f) For purposes of this section, a hospital or station cannot be found to be financially self-sufficient if the hospital or station is relying, in whole or in part, on direct appropriated funds for its continued operations.
continued care for merchant seamen hospitalized in public health service hospitalsSec. 988. (a)

42 USC 249 note.

 The Secretary shall provide, by contract or other arrangement with a Federal entity and without charge but subject to subsection (b), for the continuation of inpatient hospital services (and outpatient services related to the condition of hospitalization) to any individual who— (1) on September 30, 1981, is receiving inpatient hospital services at a Public Health Service hospital on the basis of the entitlement contained in section 322(a) of the Public Health Service Act (42 U.S.C. 249(a)), as such section was in effect on such date, for treatment of a condition, (2) requires continued hospitalization after such date for treatment of that condition (or requires outpatient services related to such condition), and (3) the Secretary determines has no other source of inpatient hospital services available for continued treatment of that condition. (b) Services may not be provided under subsection (a) to an individual after the earlier of— (1) September 30, 1982, (2) the end of the first 60-day consecutive period (beginning after September 30, 1981) during the entire period of which the individual is not an inpatient of a hospital. (c) Notwithstanding any other provision of law, the head of any Federal department or agency which provides, under other authority of law and through federal facilities, inpatient hospital services or outpatient services, or both, is authorized to provide inpatient hospital services (and related outpatient services) to individuals under 95 STAT. 605contract or other arrangement with the Secretary pursuant to this section.
Subtitle K—Office of the Secretary of Health and Human Services
appropriations for immediate office of secretary of health and human servicesSec. 991. The appropriations for the immediate office of the

42 USC 3501 note.

Secretary of Health and Human Services and the Under Secretary of Health and Human Services for the executive direction of the Department of Health and Human Services may not exceed $4,125,000 for fiscal year 1982, may not exceed $4,485,000 for fiscal year 1983, and may not exceed $4,875,000 for fiscal year 1984. Before the Secretary may request additional funds for the office of the Secretary or the Under Secretary or request the reprograming to such offices of appropriated funds, the Secretary shall consult with the Committee on Energy and Commerce of the House of Representatives.
<num value="X">TITLE X—</num><heading>ENERGY AND ENERGY-RELATED PROGRAMS</heading> <subtitle><num value="A">Subtitle A—</num><heading>Department of Energy Authorization</heading> <chapter><num value="1">CHAPTER 1—</num><heading>CIVILIAN RESEARCH AND DEVELOPMENT AUTHORIZATION</heading> <section> <heading class="centered smallCaps">operating expenses</heading><num value="1001"><inline class="smallCaps">Sec</inline>. 1001. </num><chapeau>Funds are hereby authorized to be appropriated in <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7270">42 USC 7270 note</ref>.</p></sidenote>accordance with section 660 of the Department of Energy Organization Act for operating expenses for the civilian research and development <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7270">42 USC 7270</ref>.</p></sidenote>programs of the Department of Energy for the following appropriations accounts:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>General science and research activities,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>for the fiscal year ending on September 30, 1982, $439,160,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for the fiscal year ending on September 30, 1983, $471,000,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>for the fiscal year ending on September 30, 1984, $500,000,000.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Energy supply, research and development activities,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>for the fiscal year ending on September 30, 1982, $2,057,460,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for the fiscal year ending on September 30, 1983, $2,141,000,000 including programs authorized in section 1007(a)(3)(A); and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>for the fiscal year ending on September 30, 1984, $2,258,000,000 including programs authorized in section 1007(a)(3)(A).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Uranium supply and enrichment activities (advanced isotope separation), for the fiscal year ending on September 30, 1982, $80,292,000.</content></paragraph> <page identifier="/us/stat/95/606">95 STAT. 606</page> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><chapeau class="inline">Geothermal resources development fund: geothermal loan guarantee and interest assistance program,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>for the fiscal year ending on September 30, 1982, $200,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for the fiscal year ending on September 30, 1983, $200,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>for the fiscal year ending on September 30, 1984, $200,000.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><chapeau>Fossil energy research and development, including capital equipment not related to construction,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>for the fiscal year ending on September 30, 1982, $460,800,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for the fiscal year ending on September 30, 1983, $430,800,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>for the fiscal year ending on September 30, 1984, $430,800,000.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><chapeau>Energy conservation research and development, including capital equipment not related to construction,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>for the fiscal year ending on September 30, 1982, $149,444,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for the fiscal year ending on September 30, 1983, $154,000,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>for the fiscal year ending on September 30, 1984, $158,600,000.</content></subparagraph> </paragraph> </section> <section> <heading class="centered smallCaps">plant and capital equipment generally</heading><num value="1002"><inline class="smallCaps">Sec</inline>. 1002. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7270">42 USC 7270 note</ref>.</p></sidenote> <chapeau class="inline">Funds are hereby authorized to be appropriated in accordance with section 660 of the Department of Energy Organization <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7270">42 USC 7270</ref>.</p></sidenote>Act for construction, including planning, construction, acquisition, or modification of facilities, including land acquisition; and acquisition and fabrication of captial equipment not related to construction of the Department of Energy for the following appropriations accounts:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>General science and research activities,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>for the fiscal year ending on September 30, 1982, $128,300,000 including the amounts authorized to be appropriated in sections 1003 and 1004(a)(3);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for the fiscal year ending on September 30, 1983, $137,000,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>for the fiscal year ending on September 30, 1984, $147,000,000.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Energy supply, research and development activities,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>for the fiscal year ending on September 30, 1982, $370,132,000 including the amounts authorized to be appropriated in sections 1003 and 1004(a)(2);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for the fiscal year ending on September 30, 1983, $354,000,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>for the fiscal year ending on September 30, 1984, $416,200,000.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>Fossil energy construction,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>for the fiscal year ending on September 30, 1982, $18,000,000 including the amounts authorized to be appropriated in sections 1003 and 1004(a)(1);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for the fiscal year ending on September 30, 1983, $13,000,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>for the fiscal year ending on September 30, 1984, $6,000,000.</content></subparagraph> </paragraph> </section> <page identifier="/us/stat/95/607">95 STAT. 607</page> <section> <heading class="centered smallCaps">prior year construction</heading><num value="1003"><inline class="smallCaps">Sec</inline>. 1003. </num><subsection class="inline"><num value="a">(a) </num><content>Of the amounts authorized to be appropriated for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7270">42 USC 7270 note</ref>.</p></sidenote>fiscal year 1982 by sections 1001 and 1002, there are authorized to be appropriated in accordance with section 660 of the Department of Energy Organization Act for construction (including planning, construction, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7270">42 USC 7270</ref>.</p></sidenote>acquisition, and modification of facilities, including land acquisition), and for acquisition and fabrication of capital equipment not related to construction, with respect to each prior year project listed in the budget documents submitted to the Congress in support of the fiscal year 1982 budget, amounts not to exceed the appropriations amount requested for such project for fiscal year 1982 as set forth in such budget documents, except as otherwise provided (in the case of specific projects) under subsection (b).</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>The amounts otherwise authorized by subsection (a) to be appropriated for fiscal year 1982 or previously authorized are increased or decreased as follows:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>Fossil energy research and development:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>in the case of acquisition and fabrication of capital equipment not related to construction, the amount so authorized for fossil energy research and development is decreased by $800,000;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Energy supply research and development:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>in the case of acquisition and fabrication of capital equipment not related to construction, the amount so authorized for energy supply, research, and development activities is increased by $1,000,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>in the case of Project 81–ES–1, OTEC 40MW Pilot Plant, the amount previously authorized is increased by $6,300,000, for a total project authorization of $36,300,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>in the case of Project 81–T–314, Impurity Studies Experiment Modification (ISX–C), Oak Ridge, Tennessee, the amount previously authorized is increased by $3,500,000, for a total project authorization of $7,000,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>in the case of Project 80–ES–19, 250KW, Small Community Solar Thermal Power Experiment, the amount previously authorized is increased by $4,000,000, for a total project authorization of $8,180,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>in the case of Project 80–G–2, Second 50 MWe Demonstration Power Plant, Heber, Imperial Valley, California, the amount previously authorized is increased by $11,000,000, for a total project authorization of $19,000,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">(F) </num><content>in the case of Project 78–6–f, Fuels and Materials Examination Facility, Hanford, Washington, the amount previously authorized is increased by $17,800,000, for a total project authorization of $176,800,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="G">(G) </num><content>in the case of Project 78–3–b, Mike McCormack Fusion Materials Irradiation Test Facility, Hanford, Washington, the amount previously authorized is increased by $14,000,000, for a total project authorization of $47,000,000.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>Energy conservation:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>in the case of acquisition and fabrication of capital equipment not related to construction, the amount so authorized for energy conservation is increased by $326,000.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>For purposes of this section, the terms “budget documents <sidenote><p class="indent0 firstIndent0 fontsize8">Definitions.</p></sidenote>submitted to the Congress in support of the fiscal year 1982 budget” and “budget documents” mean the Department of Energy Congres-<page identifier="/us/stat/95/608">95 STAT. 608</page>sional Budget Request, Fiscal Year 1982 (February 1981; DOE/CR–0011–3).</content> </subsection> </section> <section> <heading class="centered smallCaps">new construction</heading><num value="1004"><inline class="smallCaps">Sec</inline>. 1004. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7270">42 USC 7270 note</ref>.</p></sidenote> <chapeau class="inline">Of the amounts appropriated for fiscal year 1982 pursuant to the authorization provided in section 1002, funds may be expended for new plant and capital equipment activities, including planning, construction, acquisition, or modification of facilities, including land acquisition. The following new plant and capital equipment activities are hereby authorized in an amount not to exceed the Federal share of the total estimated cost set forth for each project in budget documents submitted to the Congress in support of the fiscal year 1982 budget. Within such amounts the authorizations for the new plant and capital equipment activities for fiscal year 1982 are limited as follows:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>Fossil energy construction:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>Project 82–F–506, Surface Water Containment and Waste Water Treatment Facility, Pittsburgh Energy Technology Center, Bruceton, Pennsylvania, $1,000,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Project 82–F–505, General plant projects for technology centers, six locations, $6,000,000; and</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Energy supply research and development:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><chapeau>Nuclear fission activities:</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>Project 82–N–315, General plant projects, Richland, Washington, and other sites, $1,100,000;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>Project 82–N–310, Modification to reactors, various locations, $2,000,000; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>Project 82–N–312, General plant projects, $11,000,000.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><chapeau>Magnetic fusion activities:</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>Project GPP–82, General plant projects, Princeton, New Jersey, and Oak Ridge, Tennessee, $5,700,000.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><chapeau>Supporting research and technical analysis activities:</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>Project 82–E–322, High Temperature Materials Laboratory, Oak Ridge National Laboratory, Oak Ridge, Tennessee, $3,500,000;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>Project 82–E–321, Accelerator Improvements and Modifications, various locations, $300,000;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>Project 82–E–320, General plant projects, various locations, $300,000;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">(iv) </num><content>Project 82–E–301, 300 area critical utilities upgrading, Richland, Washington, $1,000,000;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="v">(v) </num><content>Project 82–E–302, Security Facility, Argonne National Laboratory, Argonne, Illinois, $1,500,000;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="vi">(vi) </num><content>Project 82–E–305, Traffic safety improvements, Richland, Washington, $3,800,000;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="vii">(vii) </num><content>Project 82–E–306, Railroad modifications, Idaho National Engineering Laboratory, Idaho, $2,000,000.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><chapeau>Environmental research and development activities:</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>Project 82–GPP–1, General plant projects, $3,000,000; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>Project 82–V–305, Modifications and additions to environmental research facilities, various locations, $1,000,000.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>General science and research activities:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><chapeau>High energy physics activities:</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>Project 82–E–206, Tevatron II, Fermi National Accelerator Laboratory, Batavia, Illinois, $6,000,000;</content> </clause> <page identifier="/us/stat/95/609">95 STAT. 609</page> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>Project 82–E–205, Accelerator improvements and modifications, various locations, $7,000,000; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>Project 82–E–204, General plant projects, various locations, $6,000,000;</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><chapeau>Nuclear physics activities:</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>Project 82–E–223, Argonne Tandem-Linac Accelerator System (ATLAS), Argonne National Laboratory, Argonne, Illinois, $4,000,000;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>Project 82–EJ–221, Accelerator improvements and modifications, various locations $2,000,000; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>Project 82–E–222, General plant projects, various locations, $2,800,000. <sidenote><p class="indent0 firstIndent0 fontsize8">Definitions.</p></sidenote></content> </clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>For purposes of this section, the terms “budget documents submitted to the Congress in support of the fiscal year 1982 budget” and “budget documents” mean the Department of Energy Congressional Budget Request, Fiscal Year 1982 (February 1981; DOE/CR–0011–3).</content> </subsection> </section> </chapter> <chapter><num value="2">CHAPTER 2—</num><heading>CONSERVATION, INFORMATION, AND REGULATION</heading> <section> <heading class="centered smallCaps">authorizations for fiscal years 1982, 1983, and 1984</heading><num value="1005"><inline class="smallCaps">Sec</inline>. 1005. </num><chapeau>Funds are hereby authorized to be appropriated in <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7270">42 USC 7270 note</ref>.</p></sidenote>accordance with section 660 of the Department of Energy Organization Act for operating expenses for— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7270">42 USC 7270</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>Energy conservation,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>for the fiscal year ending on September 30, 1982, $363,056,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for the fiscal year ending on September 30, 1983, $387,400,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>for the fiscal year ending on September 30, 1984, $399,000,000.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Regulation and information activities—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><chapeau>for the fiscal year ending on September 30, 1982, including—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>for economic regulation, $44,600,000;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>for the Federal Energy Regulatory Commission, $80,400,000; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>for the Energy Information Administration, $84,986,000;</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for the fiscal year ending on September 30, 1983, $265,000,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>for the fiscal year ending on September 30, 1984, $275,000,000.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>Strategic Petroleum Reserve, to carry out part B of title I of the Energy Policy and Conservation Act, except acquisition, transportation, and injection of petroleum products for the Reserve and the carrying out of any drawdown and distribution of the Reserve—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>for the fiscal year ending September 30, 1983, $366,319,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for the fiscal year ending on September 30, 1984, $864,429,000.</content></subparagraph> </paragraph> </section> </chapter> <page identifier="/us/stat/95/610">95 STAT. 610</page> <chapter><num value="3">CHAPTER 3—</num><heading>POWER MARKETING ADMINISTRATIONS</heading> <section class="firstIndent1 fontsize10"><num value="1006"><inline class="smallCaps">Sec</inline>. 1006. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7270">42 USC 7270 note</ref>.</p></sidenote> <chapeau class="inline">Funds are hereby authorized to be appropriated in accordance with section 660 of the Department of Energy Organization <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7270">42 USC 7270</ref>.</p></sidenote>Act for the civilian programs of the Department of Energy for the following appropriations accounts:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>Alaska Power Administration operation and maintenance,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>for the fiscal year ending on September 30, 1982, $3,538,000 of which $50,000 shall be reserved for an emergency fund to assure continuous operations during unusual or emergency conditions;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for the fiscal year ending on September 30, 1983, $3,374,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>for the fiscal year ending on September 30, 1984, $3,374,000.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Southeastern Power Administration operation and maintenance,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>for the fiscal year ending on September 30, 1982, $7,237,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for the fiscal year ending on September 30, 1983, $11,848,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>for the fiscal year ending on September 30, 1984, $24,240,000.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>Southwestern Power Administration operation maintenance,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>for the fiscal year ending on September 30, 1982, $20,239,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for the fiscal year ending on September 30, 1983, $38,119,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>for the fiscal year ending on September 30, 1984, $40,254,000.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><chapeau>Western Area Power Administration construction rehabilitation, operation and maintenance,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>for the fiscal year ending on September 30, 1982, $210,774,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for the fiscal year ending on September 30, 1983, $226,400,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>for the fiscal year ending on September 30, 1984, $259,700,000.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><chapeau>Western Area Power Administration emergency fund,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>for the fiscal year ending on September 30, 1982, $500,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for the fiscal year ending on September 30, 1983, $500,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>for the fiscal year ending on September 30, 1984, $500,000.</content></subparagraph> </paragraph> </section> </chapter> <chapter><num value="4">CHAPTER 4—</num><heading>OTHER ACTIVITIES</heading> <section> <heading class="centered smallCaps">operating expenses</heading><num value="1007"><inline class="smallCaps">Sec</inline>. 1007. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7270">42 USC 7270 note</ref>.</p></sidenote> <chapeau class="inline">Funds are hereby authorized to be appropriated in accordance with section 660 of the Department of Energy Organization Act for operating expenses—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>uranium supply and enrichment activities,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><chapeau>other than advanced isotope separation, for the fiscal year ending on September 30, 1982, for—</chapeau> <page identifier="/us/stat/95/611">95 STAT. 611</page> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>gaseous diffusion operations and support, $961,825,000;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>gas centrifuge operations and support, $5,200,000;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>uranium enrichment process development, $93,075,000;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">(iv) </num><content>program administration, $3,100,000; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="v">(v) </num><content>uranium resource assessment, $9,700,000;</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>including advanced isotope separation, for the fiscal year ending on September 30, 1983, $1,621,600,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>including advanced isotope separation, for the fiscal year ending on September 30, 1984, $1,973,600,000.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Department administration,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>for the fiscal year ending on September 30, 1982, $206,000,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for the fiscal year ending on September 30, 1983, $246,963,000, including plant and capital equipment; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>for the fiscal year ending on September 30, 1984, $246,963,000, including plant and capital equipment.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>Energy supply research and development,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>solar and hydropower for the fiscal year ending on September 30, 1982, $11,700,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><chapeau>commercial waste management,</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>other than programs authorized in section 1001(2)(A), for the fiscal year ending on September 30, 1982, $67,370,000;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>for the fiscal year ending on September 30, 1983, $284,148,000; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>for the fiscal year ending on September 30, 1984, $300,000,000.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><chapeau>Energy conservation, including capital equipment not related to construction,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>for the fiscal year ending on September 30, 1982, $32,600,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for the fiscal year ending on September 30, 1983, $33,600,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>for the fiscal year ending on September 30, 1984, $34,600,000.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><chapeau>Energy production, demonstration, and distribution,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>for the fiscal year ending on September 30, 1982, $230,963,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for the fiscal year ending on September 30, 1983, $377,195,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>for the fiscal year ending on September 30, 1984, $292,305,000.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Any State receiving financial assistance for energy extension service activities pursuant to the National Energy Extension Service Act shall be required to provide funds from non-Federal sources for such activities in an amount no less than 20 per centum of the amount allocated to such State under such Act during any fiscal year.</content> </subsection> </section> <section> <heading class="centered smallCaps">plant and capital equipment generally</heading><num value="1008"><inline class="smallCaps">Sec</inline>. 1008. </num><chapeau>Funds are hereby authorized to be appropriated in <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7270">42 USC 7270 note</ref>.</p></sidenote>accordance with section 660 of the Department of Energy Organization Act for construction, including planning, construction, acquisition, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7270">42 USC 7270</ref>.</p></sidenote>or modification of facilities, including land acquisition; and acquisition and fabrication of capital equipment not related to <page identifier="/us/stat/95/612">95 STAT. 612</page>construction of the Department of Energy for the following appropriations accounts:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>Uranium supply and enrichment activities, including research and development activities,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><chapeau>for the fiscal year ending on September 30, 1982,</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>$748,250,000 including the amounts authorized in sections 1009 and 1010(a)(1), and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>$200,000 for uranium resource assessment, capital equipment not related to construction;</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>for the fiscal year ending on September 30, 1983, $1,002,800,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>for the fiscal year ending on September 30, 1984, $981,500,000.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Department administration,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>for the fiscal year ending on September 30, 1982, $40,963,000 including the amounts authorized in sections 1009(a) and 1010(a)(2).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>Energy supply research and development, commercial waste management,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>for the fiscal year ending on September 30, 1982, $975,000.</content></subparagraph> </paragraph> </section> <section> <heading class="centered smallCaps">prior year construction</heading><num value="1009"><inline class="smallCaps">Sec</inline>. 1009. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7270">42 USC 7270 note</ref>.</p></sidenote> <content class="inline">Of the amounts authorized to be appropriated for fiscal year 1982 by section 1008, there are authorized to be appropriated in accordance with section 660 of the Department of Energy <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7270">42 USC 7270</ref>.</p></sidenote>Organization Act for construction (including planning, construction, acquisition, and modification of facilities, including land acquisition), and for acquisition and fabrication of capital equipment not related to construction, with respect to each prior year project listed in the budget documents submitted to the Congress in support of the fiscal year 1982 budget amounts not to exceed the appropriations amount requested for such project for fiscal year 1982 as set forth in such budget documents, except as otherwise provided (in the case of specific projects) under subsection (b).</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>The amounts authorized to be appropriated for fiscal year 1982 with respect to the following projects are as follows:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>Uranium supply and enrichment activities,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>Project 80–UE–5, Motor and switchgear upgrading, gaseous diffusion plants, the amount previously authorized is increased by $6,600,000 for a total project authorization of $26,500,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Project 76–8–g, Enriched uranium production facilities, Portsmouth, Ohio, the amount previously authorized is increased by $601,000,000 for a total project authorization of $1,552,845,000.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Definitions.</p></sidenote> <content class="inline">For purposes of this section, the terms “budget documents submitted to the Congress in support of the fiscal year 1982 budget” and “budget documents” mean the Department of Energy Congressional Budget Request, Fiscal Year 1982 (February 1981; DOE/CR–0011–3).</content> </subsection> </section> <section> <heading class="centered smallCaps">new construction</heading><num value="1010"><inline class="smallCaps">Sec</inline>. 1010. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7270">42 USC 7270 note</ref>.</p></sidenote> <chapeau class="inline">Of the amounts appropriated for fiscal year 1982 pursuant to the authorization provided in section 1008, funds may be expended for new plant and capital equipment activities, including planning, construction, acquisition, or modification of facilities, including land acquisition. The following new plant and capital <page identifier="/us/stat/95/613">95 STAT. 613</page>equipment activities are hereby authorized in an amount not to exceed the Federal share of the total estimated cost set forth for each project in budget documents submitted to the Congress in support of the fiscal year 1982 budget. Within such amounts the authorizations for the new plant and capital equipment activities for fiscal year 1982 are limited as follows:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>Uranium supply and enrichment activities,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>Project 82–R–410, General plant projects, various locations, including Grand Junction, Colorado, $17,600,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Project 82–R–411, UF6 cylinders and storage yards, gaseous diffusion plants, $11,000,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>Project 82–R–412, Cooling tower modifications, Oak Ridge, Tennessee and Portsmouth, Ohio, gaseous diffusion plants, $8,000,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>Project 82–R–413, Improved UF6 containment and gaseous diffusion plants, $7,100,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>Project 82–R–414, Purge and cascade withdrawal modifications, gaseous diffusion plant, Paducah, Kentucky, $9,000,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">(F) </num><content>Project 82–R–415, Fire alarm system replacement, gaseous diffusion plants, $4,700,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="G">(G) </num><content>Project 82–R–416, Environmental protection and safety modifications, Phase II, gaseous diffusion plants, $2,000,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="H">(H) </num><content>Project 82–R–417, Air distribution system upgrading, gaseous diffusion plant, Paducah, Kentucky, $2,700,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="I">(I) </num><content>Project 82–R–418, Advanced Centrifuge Test Facilities, Oak Ridge, Tennessee, $6,000,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="J">(J) </num><content>Project 82–N–402, General plant projects, various locations, $650,000.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Departmental administration,</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>Project 82–A–601, Modifications for energy management, various locations, $14,100,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Project 82–A–602, Advanced Test Reactor (ATR) waste heat recovery, Idaho National Engineering Laboratory, Idaho, $4,900,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>Project 82–A–603, High temperature water distribution system, Los Alamos Scientific Laboratory, New Mexico, $5,000,000;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>Project 82–C–601, Plant engineering and design, various locations, $2,000,000; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>Capital equipment not related to construction for departmental administration activities, $5,563,000.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>For purposes of this section, the terms “budget documents <sidenote><p class="indent0 firstIndent0 fontsize8">Definitions.</p></sidenote>submitted to the Congress in support of the fiscal year 1982 budget” and “budget documents” mean the Department of Energy Congressional Budget Request, Fiscal Year 1982 (February 1981; DOE/CR–0011–3).</content> </subsection> </section> <section> <heading class="centered smallCaps">general requirement</heading><num value="1011"><inline class="smallCaps">Sec</inline>. 1011. </num><subsection class="inline"><num value="a">(a) </num><content>At the same time that the President submits his budget to the Congress for fiscal years 1983 and 1984 for the Department of Energy as required by the Budget and Accounting Act, 1921, there shall be submitted, in addition to any other existing <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s1">31 USC 1</ref>.</p></sidenote>requirements, a tabular listing for the recommended level of program activity and subactivity funding the fiscal years 1983 and 1984 of civilian energy activities in the same format as is contained in the program tables relating to this title appearing in the statement of <page identifier="/us/stat/95/614">95 STAT. 614</page>managers accompanying the conference report on the Omnibus Budget Reconciliation Act of 1981 (H.R. 3982; 97th Congress).</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>At the same time that the President submits his budget to the Congress those plant and capital amounts requested for that fiscal year, additional authorization requested for prior year projects, and any new construction requests shall also be submitted as a separate request for authorization of appropriations for civilian research and development activities.</content> </subsection> </section> </chapter> <chapter><num value="5">CHAPTER 5—</num><heading>UNITED STATES ENERGY TARGETS</heading> <section> <heading class="centered smallCaps">energy targets</heading><num value="1012"><inline class="smallCaps">Sec</inline>. 1012. </num><content>United States energy targets: <table xmlns="http://www.w3.org/1999/xhtml" width="100%" style="border-collapse:collapse"> <caption> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="title" class="centered">ENERGY TARGETS</p> <p xmlns="http://schemas.gpo.gov/xml/uslm" role="subtitle" class="centered">[Quadrillion Btu’s per year]</p> </caption> <tbody> <tr> <td style="text-align:left; vertical-align:bottom; border-top:1px solid black; border-bottom:1px solid black"></td> <td style="text-align:right; vertical-align:bottom; border-top:1px solid black; border-bottom:1px solid black">1985</td> <td style="text-align:right; vertical-align:bottom; border-top:1px solid black; border-bottom:1px solid black">1990</td> <td style="text-align:right; vertical-align:bottom; border-top:1px solid black; border-bottom:1px solid black">1995</td> <td style="text-align:right; vertical-align:bottom; border-top:1px solid black; border-bottom:1px solid black">2000</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom">Domestic production:</td> <td style="text-align:right; vertical-align:bottom"></td> <td style="text-align:right; vertical-align:bottom"></td> <td style="text-align:right; vertical-align:bottom"></td> <td style="text-align:right; vertical-align:bottom"></td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes"> Oil and NGL</td> <td style="text-align:right; vertical-align:bottom">18</td> <td style="text-align:right; vertical-align:bottom">17</td> <td style="text-align:right; vertical-align:bottom">18</td> <td style="text-align:right; vertical-align:bottom">18</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes"> Natural gas</td> <td style="text-align:right; vertical-align:bottom">18</td> <td style="text-align:right; vertical-align:bottom">18</td> <td style="text-align:right; vertical-align:bottom">16</td> <td style="text-align:right; vertical-align:bottom">15</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes"> Coal</td> <td style="text-align:right; vertical-align:bottom">21</td> <td style="text-align:right; vertical-align:bottom">27</td> <td style="text-align:right; vertical-align:bottom">82</td> <td style="text-align:right; vertical-align:bottom">41</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes"> Nuclear</td> <td style="text-align:right; vertical-align:bottom">5</td> <td style="text-align:right; vertical-align:bottom">7</td> <td style="text-align:right; vertical-align:bottom">8</td> <td style="text-align:right; vertical-align:bottom">9</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes"> Hydro geothermal</td> <td style="text-align:right; vertical-align:bottom">3</td> <td style="text-align:right; vertical-align:bottom">4</td> <td style="text-align:right; vertical-align:bottom">4</td> <td style="text-align:right; vertical-align:bottom">4</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes"> Renewables</td> <td style="text-align:right; vertical-align:bottom">2</td> <td style="text-align:right; vertical-align:bottom">3</td> <td style="text-align:right; vertical-align:bottom">5</td> <td style="text-align:right; vertical-align:bottom">6</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes">  Subtotal</td> <td style="text-align:right; vertical-align:bottom; border-top:1px solid black; border-bottom:1px solid black">67</td> <td style="text-align:right; vertical-align:bottom; border-top:1px solid black; border-bottom:1px solid black">76</td> <td style="text-align:right; vertical-align:bottom; border-top:1px solid black; border-bottom:1px solid black">83</td> <td style="text-align:right; vertical-align:bottom; border-top:1px solid black; border-bottom:1px solid black">93</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom">Imports:</td> <td style="text-align:right; vertical-align:bottom"></td> <td style="text-align:right; vertical-align:bottom"></td> <td style="text-align:right; vertical-align:bottom"></td> <td style="text-align:right; vertical-align:bottom"></td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes"> Oil</td> <td style="text-align:right; vertical-align:bottom">18</td> <td style="text-align:right; vertical-align:bottom">14</td> <td style="text-align:right; vertical-align:bottom">11</td> <td style="text-align:right; vertical-align:bottom">7</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes"> Natural gas</td> <td style="text-align:right; vertical-align:bottom">2</td> <td style="text-align:right; vertical-align:bottom">3</td> <td style="text-align:right; vertical-align:bottom">3</td> <td style="text-align:right; vertical-align:bottom">2</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes"> Coal</td> <td style="text-align:right; vertical-align:bottom">—1.8</td> <td style="text-align:right; vertical-align:bottom">—2.1</td> <td style="text-align:right; vertical-align:bottom">—2.2</td> <td style="text-align:right; vertical-align:bottom">—2.4</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes">  Subtotal</td> <td style="text-align:right; vertical-align:bottom; border-top:1px solid black; border-bottom:1px solid black">18</td> <td style="text-align:right; vertical-align:bottom; border-top:1px solid black; border-bottom:1px solid black">15</td> <td style="text-align:right; vertical-align:bottom; border-top:1px solid black; border-bottom:1px solid black">11</td> <td style="text-align:right; vertical-align:bottom; border-top:1px solid black; border-bottom:1px solid black">7</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes">   Total supply</td> <td style="text-align:right; vertical-align:bottom; border-bottom:1px solid black">85</td> <td style="text-align:right; vertical-align:bottom; border-bottom:1px solid black">90</td> <td style="text-align:right; vertical-align:bottom; border-bottom:1px solid black">94</td> <td style="text-align:right; vertical-align:bottom; border-bottom:1px solid black">100</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom">End-use consumption:</td> <td style="text-align:right; vertical-align:bottom"></td> <td style="text-align:right; vertical-align:bottom"></td> <td style="text-align:right; vertical-align:bottom"></td> <td style="text-align:right; vertical-align:bottom"></td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes"> Petroleum liquids</td> <td style="text-align:right; vertical-align:bottom">32</td> <td style="text-align:right; vertical-align:bottom">29</td> <td style="text-align:right; vertical-align:bottom">28</td> <td style="text-align:right; vertical-align:bottom">27</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes"> Gas</td> <td style="text-align:right; vertical-align:bottom">17</td> <td style="text-align:right; vertical-align:bottom">18</td> <td style="text-align:right; vertical-align:bottom">18</td> <td style="text-align:right; vertical-align:bottom">18</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes"> Direct coal</td> <td style="text-align:right; vertical-align:bottom">5</td> <td style="text-align:right; vertical-align:bottom">6</td> <td style="text-align:right; vertical-align:bottom">6</td> <td style="text-align:right; vertical-align:bottom">7</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes"> Electricity</td> <td style="text-align:right; vertical-align:bottom">9</td> <td style="text-align:right; vertical-align:bottom">10</td> <td style="text-align:right; vertical-align:bottom">11</td> <td style="text-align:right; vertical-align:bottom">12</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes"> Decentralized solar</td> <td style="text-align:right; vertical-align:bottom; border-bottom:1px solid black">2</td> <td style="text-align:right; vertical-align:bottom; border-bottom:1px solid black">3</td> <td style="text-align:right; vertical-align:bottom; border-bottom:1px solid black">4</td> <td style="text-align:right; vertical-align:bottom; border-bottom:1px solid black">5</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes">  Subtotal</td> <td style="text-align:right; vertical-align:bottom">64</td> <td style="text-align:right; vertical-align:bottom">66</td> <td style="text-align:right; vertical-align:bottom">67</td> <td style="text-align:right; vertical-align:bottom">68</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes"> Conversion losses</td> <td style="text-align:right; vertical-align:bottom">21</td> <td style="text-align:right; vertical-align:bottom">25</td> <td style="text-align:right; vertical-align:bottom">28</td> <td style="text-align:right; vertical-align:bottom">32</td> </tr> <tr> <td style="text-align:left; vertical-align:bottom" leaders="yes"> Stock increase</td> <td style="text-align:right; vertical-align:bottom; border-bottom:1px solid black" leaders="yes"></td> <td style="text-align:right; vertical-align:bottom; border-bottom:1px solid black" leaders="yes"></td> <td style="text-align:right; vertical-align:bottom; border-bottom:1px solid black" leaders="yes"></td> <td style="text-align:right; vertical-align:bottom; border-bottom:1px solid black" leaders="yes"></td> </tr> <tr> <td style="text-align:left; vertical-align:bottom; border-bottom:1px solid black" leaders="yes">  Total consumption</td> <td style="text-align:right; vertical-align:bottom; border-bottom:1px solid black">85</td> <td style="text-align:right; vertical-align:bottom; border-bottom:1px solid black">91</td> <td style="text-align:right; vertical-align:bottom; border-bottom:1px solid black">94</td> <td style="text-align:right; vertical-align:bottom; border-bottom:1px solid black">100</td> </tr> </tbody> </table> </content> </section> </chapter> </subtitle> <subtitle><num value="B">Subtitle B—</num><heading>Powerplant and Industrial Fuel Use Act of 1978 Provisions</heading> <section> <heading class="centered smallCaps">applicability of fuel use restrictions to certain existing electric powerplants</heading><num value="1021"><inline class="smallCaps">Sec</inline>. 1021. </num><subsection class="inline"><num value="a">(a) </num><content>Title III of the Powerplant and Industrial Fuel Use Act of 1978 is amended by striking out section 301 (42 U.S.C. 8341) and inserting in lieu thereof the following: <page identifier="/us/stat/95/615">95 STAT. 615</page> <quotedContent> <section><num value="301">“SEC. 301. </num> <heading>EXISTING ELECTRIC POWERPLANTS.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Certification by Powerplants of Coal Capability</inline>.—</heading><chapeau>At any time, the owner or operator of an existing electric powerplant may certify to the Secretary, for purposes of subsection (b)—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>whether or not such powerplant has or previously had the technical capability to use coal or another alternate fuel as a primary energy source;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>whether or not such powerplant could have the technical capability to use coal or another alternate fuel as a primary energy source without having—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>substantial physical modification of the powerplant, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>substantial reduction in the rated capacity of the powerplant; and</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>whether or not it is financially feasible to use coal or another alternate fuel as a primary energy source in such a powerplant.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Authority of Secretary to Prohibit Where Coal or Alternate Fuel Capability Exists</inline>.—</heading><content>The Secretary may prohibit, in accordance with section 303(a) or (b), the use of petroleum or natural <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8343">42 USC 8343</ref>.</p></sidenote>gas, or both, as a primary energy source in any existing electric powerplant, if an affirmative certification under subsection (a)(1), (2), and (3) is in effect with respect to such powerplant and if, after examining the basis for the certification, the Secretary concurs with the certification.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Authority of Secretary to Prohibit Excessive Use in Mixtures</inline>.—</heading><content>At any time, the owner or operator of an existing electric powerplant may certify to the Secretary for purposes of this subsection whether or not it is technically and financially feasible to use a mixture of petroleum or natural gas and coal or another alternate fuel as a primary energy source in that powerplant. If an affirmative certification under this subsection is in effect with respect to such powerplant and if, after examining the basis for the certification, the Secretary concurs with the certification, the Secretary may prohibit, in accordance with section 303(a), the use of petroleum or natural gas, or both, in such powerplant in amounts in excess of the minimum amount necessary to maintain reliability of operation of the unit consistent with maintaining reasonable fuel efficiency of such mixture.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Amendment of Subsection (a) and (c) Certifications</inline>.—</heading><content>The owner or operator of any such powerplant may at any time amend any certification under subsection (a) or (c) in order to take into account changes in relevant facts and circumstances; except that no such amendment to such a certification may be made after the date of any final prohibition under subsection (b) or (c) based on that certification.”.</content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 711 of the Powerplant and Industrial Fuel Use Act of 1978 (42 U.S.C. 8421) is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Natural Gas Usage by Electric Utilities</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>For purposes of section 404(b) and other emergency authorities, the Secretary shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8374">42 USC 8374</ref>.</p></sidenote>obtain data necessary to determine—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>within 6 months after the date of the enactment of this subsection, the total quantities of natural gas used as a primary energy source by each electric utility during calendar year 1977, and</content></subparagraph> <page identifier="/us/stat/95/616">95 STAT. 616</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>on a semiannual basis, the total quantities of natural gas used as a primary energy source during the previous 6-month period by each electric utility.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8482">42 USC 8482</ref>.</p></sidenote> <content class="inline">The Secretary shall include in each annual report to the Congress under section 806 a summary of information received by the Secretary under this subsection.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> </section> <section> <heading class="centered smallCaps">validity of orders under former section 301 of the powerplant and industrial fuel use act of 1978</heading><num value="1022"><inline class="smallCaps">Sec</inline>. 1022. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8341">42 USC 8341 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 614.</p></sidenote> <content class="inline">The amendments made by section 1021 to section 301 (b) and (c) of the Powerplant and Industrial Fuel Use Act of 1978 shall not apply to any electric powerplant for which a final order was issued pursuant to section 301 (b) or (c) of such Act before the date of the enactment of this Act.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Any electric powerplant issued a proposed order under section 301 (b) or (c) of such Act which is pending on the date of the enactment of this Act may elect not to have the amendments made by section 1021 to such section 301 (b) or (c) apply with respect to that powerplant. Such an election shall be irrevocable and shall be made in such form and manner as the Secretary of Energy shall, within 45 days after the date of the enactment of this Act, prescribe. Such an election shall be made not later than 60 days after the date on which the Secretary of Energy prescribes the form and manner of making such election.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><content>The amendments made by section 1021 shall not affect the validity of any final order issued under section 301 (b) or (c) of the Powerplant and Industrial Fuel Use Act of 1978 before the date of the enactment of this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The validity of any proposed order issued under such section 301 (b) or (c) shall not be affected in the case of powerplants covered by elections made under subsection (b).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The authority of the Secretary of Energy to amend, repeal, rescind, modify, or enforce any order referred to in paragraph (1) or (2), or rules applicable thereto, shall remain in effect notwithstanding any such amendments.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">electric utility conservation plan</heading><num value="1023"><inline class="smallCaps">Sec</inline>. 1023. </num><subsection class="inline"><num value="a">(a) </num><content>The Powerplant and Industrial Fuel Use Act of 1978 is amended by inserting after section 807 the following new section: <quotedContent> <section><num value="808">“SEC. 808. </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8484">42 USC 8484</ref>.</p></sidenote>ELECTRIC UTILITY CONSERVATION PLAN.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num> <heading><inline class="smallCaps">Applicability</inline>.—</heading><chapeau>An electric utility is subject to this subsection if—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the utility owns or operates any existing electric powerplant in which natural gas was used as a primary energy source at any time during the 1-year period ending on the date of the enactment of this section, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the utility plans to use natural gas as a primary energy source in any electric powerplant.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Submission and Approval of Plan</inline>.—</heading><chapeau>The Secretary shall require each electric utility subject to this section to—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>submit, within 1 year after the date of the enactment of this section, and have approved by the Secretary, a conservation plan which meets the requirements of subsection (c); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>implement such plan during the 5-year period beginning on the date of the initial approval of such plan.</content></paragraph> </subsection> <page identifier="/us/stat/95/617">95 STAT. 617</page> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Contents of Plan</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Any conservation plan under this section shall set forth means determined by the utility to achieve conservation of electric energy not later than the 5th year after its initial approval at a level, measured on an annual basis, at least equal to 10 percent of the electric energy output of that utility during the most recent 4 calendar quarters ending prior to the date of the enactment of this section which is attributable to natural gas.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>The conservation plan shall include—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>all activities required for such utility by part 1 of title II of the National Energy Conservation Policy Act; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8211">42 USC 8211</ref>.</p></sidenote></content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>an effective public information program for conservation; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>such other measures as the utility may consider appropriate.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Any such plan may set forth a program for the use of renewable energy sources (other than hydroelectric power).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>Any such plan shall contain procedures to permit the amounts expended by such utility in developing and implementing the plan to be recovered in a manner specified by the appropriate State regulatory authority (or by the utility in the case of a nonregulated utility),</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <heading><inline class="smallCaps">Plan Approval</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall, by order, approve or disapprove any conservation plan proposed under this subsection by an electric utility within 120 days after its submission. The Secretary shall approve any such proposed plan unless the Secretary finds that such plan does not meet the requirements of subsection (c) and states in writing the reasons therefor.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>In the event the Secretary disapproves under paragraph (1) the plan originally submitted, the Secretary shall provide a reasonable period of time for resubmission.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>An electric utility may amend any approved plan, except that the plan as amended shall be subject to approval in accordance with paragraph (1).”.</content></paragraph> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 712 of the Powerplant and Industrial Fuel Use Act of 1978 (42 U.S.C. 8422) is amended by inserting “<quotedText>(a) <inline class="smallCaps">Generally</inline>.—</quotedText>” before “<quotedText>Any person</quotedText>” and by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Report on Implementation of Section 808 Plan</inline>.—</heading><content>Any <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 6i6.</p></sidenote>electric utility required to submit a conservation plan under section 808 shall annually submit to the Secretary a report identifying the steps taken during the preceding year to implement such plan.”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The table of contents for such Act is amended by adding at the end thereof the following item after the item relating to section 807: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 808.</designator> <label>Electric utility conservation plan.”.</label></referenceItem> </toc> </quotedContent> </content> </subsection> </section> <section> <heading class="centered smallCaps">applicability of restrictions relating to natural gas outdoor lighting</heading><num value="1024"><inline class="smallCaps">Sec</inline>. 1024. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 402(b)(1) of the Powerplant and Industrial Fuel Use Act of 1978 is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8372">42 USC 8372</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(other than any outdoor lighting fixture which was installed before the date of the enactment of this Act for use in connection with a residence and for which natural gas was being provided on such date of enactment)</quotedText>” after “<quotedText>use in outdoor lighting</quotedText>”, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>in subparagraph (C), by striking out the dash and all that follows through “<quotedText>residence,</quotedText>” and inserting in lieu thereof “<quotedText>any municipal outdoor lighting fixture</quotedText>”.</content></paragraph> </subsection> <page identifier="/us/stat/95/618">95 STAT. 618</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8372">42 USC 8372</ref>.</p></sidenote> <content class="inline">Section 402 of such Act is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>For the purpose of discouraging the use of natural gas for outdoor lighting, each local distribution company which is subject to subsection (a) or (b) shall, in accordance with rules promulgated by the Secretary—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>establish a reasonable and simple method, as determined by each such company, by which the company shall periodically inform its customers about the amount of natural gas consumed by outdoor lighting and the annual cost of such gas for such lighting; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>report to the Secretary the method established under subparagraph (A).</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">A company may establish a method which provides for reporting such information on the basis of estimates where actual information is not readily available.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary shall propose the rules referred to in paragraph (1) as promptly as possible after the date of the enactment of this subsection, and such rules shall take effect not later than the ninetieth day after they are proposed. In promulgating such rules, the Secretary shall, to the greatest extent feasible, consult with the appropriate regulatory authority of the States and the local distribution companies who will be subject to the rules.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> </section> </subtitle> <subtitle><num value="C">Subtitle C— </num><sidenote><p class="indent0 firstIndent0 fontsize8">Strategic Petroleum Reserve Amendments Act of 1981.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s6201">42 USC 6201 note</ref>.</p></sidenote><heading>STRATEGIC PETROLEUM RESERVE</heading> <section> <heading class="centered smallCaps">short title</heading><num value="1031"><inline class="smallCaps">Sec</inline>. 1031. </num><content>This subtitle may be cited as the “<shortTitle role="subtitle">Strategic Petroleum Reserve Amendments Act of 1981</shortTitle>”.</content> </section> <section> <heading class="centered smallCaps">findings</heading><num value="1032"><inline class="smallCaps">Sec</inline>. 1032. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s6231">42 USC 6231 note</ref>.</p></sidenote> <chapeau class="inline">The Congress finds that—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the Strategic Petroleum Reserve should be considered a national security asset; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>enlarging the capacity and filling of the Strategic Petroleum Reserve should be accelerated (to the extent technically and economically practicable) to take advantage of any increased availability of crude oil in the world market from time to time.</content></paragraph> </section> <section> <heading class="centered smallCaps">rate of filling the strategic petroleum reserve</heading><num value="1033"><inline class="smallCaps">Sec</inline>. 1033. </num><content>Section 160(c) of the Energy Policy and Conservation Act (42 U.S.C. 6240(c)) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><content>The President shall immediately seek to undertake, and thereafter continue (subject to paragraph (2)), crude oil acquisition, transportation, and injection activities at a level sufficient to assure that crude oil in storage in the Strategic Petroleum Reserve will be increased at an average annual rate of at least 300,000 barrels per day.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The requirements in paragraph (1) shall cease to apply when the quantity of petroleum products stored within the Strategic Petroleum Reserve is at least 750,000,000 barrels.”.</content></paragraph> </subsection> </quotedContent> </content> </section> <page identifier="/us/stat/95/619">95 STAT. 619</page> <section> <heading class="centered smallCaps">financing of the strategic petroleum reserve</heading><num value="1034"><inline class="smallCaps">Sec</inline>. 1034. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Part B of title I of the Energy Policy and Conservation Act (42 U.S.C. 6231–6246) is amended by adding at the end thereof the following: <quotedContent> <section> <heading class="centered smallCaps">“spr petroleum account</heading><num value="167">“<inline class="smallCaps">Sec</inline>. 167. </num><subsection class="inline"><num value="a">(a) </num><content>The Secretary of the Treasury shall establish in the <sidenote><p class="indent0 firstIndent0 fontsize8">Establishment.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s6247">42 USC 6247</ref>.</p></sidenote>Treasury of the United States an account to be known as the ‘SPR Petroleum Account’ (hereinafter in this section referred to as the ‘Account’).</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>Amounts in the Account may be obligated by the Secretary of Energy for the acquisition, transportation, and injection of petroleum products into the Strategic Petroleum Reserve, and the drawdown and delivery of petroleum products from the Reserve—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>in the case of fiscal year 1982, in an aggregate amount, not to exceed $3,900,000,000, as may be provided in advance in appropriation Acts;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>in the case of any fiscal year after fiscal year 1982, subject to section 660 of the Department of Energy Organization Act, in <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7270">42 USC 7270</ref>.</p></sidenote>such aggregate amounts as may be appropriated in advance in appropriation Acts; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>in the case of any fiscal year, notwithstanding section 660 of the Department of Energy Organization Act, in an aggregate amount equal to the aggregate amount of the receipts to the United States from the sale of petroleum products in any drawdown and distribution of the Strategic Petroleum Reserve under section 161. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s6241">42 USC 6241</ref>.</p></sidenote></content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">Funds available to the Secretary of Energy for obligation under this subsection may remain available without fiscal year limitation.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>The Secretary of the Treasury shall provide and deposit into the Account such sums as may be necessary to meet obligations of the Secretary of Energy under subsection (b).</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><chapeau>The Account, the deposits and withdrawals from the Account, and the transactions, receipts, obligations, outlays associated with such deposits and withdrawals (including petroleum product purchases and related transactions), and receipts to the United States from the sale of petroleum products in any drawdown and distribution of the Strategic Petroleum Reserve under section 161—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>shall not be included in the totals of the budget of the United States Government and shall be exempt from any general limitation imposed by statute on expenditures and net lending (budget outlays) of the United States; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>shall not be deemed to be budget authority, spending authority, budget outlays, or Federal revenues for purposes of title III of Public Law 93–344, as amended.”. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s1321">31 USC 1321</ref>.</p></sidenote></content></paragraph> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The table of contents for the Energy Policy and Conservation Act is amended by adding after the item relating to section 166 the following new item: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 167.</designator> <label>SPR Petroleum Account.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 166 of the Energy Policy and Conservation Act (42 U.S.C. 6246) is amended by striking out “<quotedText>and</quotedText>” at the end of paragraph (2), by striking out the period at the end of paragraph (3) and inserting in lieu thereof “<quotedText>; and</quotedText>”, and by adding at the end thereof the following new paragraph: <page identifier="/us/stat/95/620">95 STAT. 620</page> <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><chapeau>for the fiscal year ending September 30, 1982, not to exceed $260,000,000 to carry out the provisions of this part, except—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>acquisition, transportation, and injection of petroleum products for the Reserve, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the carrying out of any drawdown and distribution of the Reserve.”.</content></subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s6247">42 USC 6247 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 619.</p></sidenote> <content class="inline">The provisions of section 167(d) of such Act, as added by subsection (a) of this section, shall apply with respect to the outlays associated with unexpended balances of appropriations made available and obligated as of the end of fiscal year 1981 for the acquisition, transportation, and injection of petrolem products for the Strategic Petroleum Reserve to the same extent and manner as such provisions apply with respect to withdrawals from the SPR Petroleum Account.</content> </subsection> </section> <section> <heading class="centered smallCaps">quarterly reports</heading><num value="1035"><inline class="smallCaps">Sec</inline>. 1035. </num><subsection class="inline"><num value="a">(a) </num><content>Section 166 of the Energy Policy and Conservation Act (42 U.S.C. 6245) is amended by inserting “<quotedText>(a)</quotedText>” before “<quotedText>The Secretary</quotedText>” and by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>On or before the fifteenth day of the second calendar quarter which begins after the date of the enactment of this subsection and every calendar quarter thereafter, the Secretary shall report to the Congress on activities undertaken with respect to the Strategic Petroleum Reserve under the amendments made by the Strategic Petroleum Reserve Amendments Act of 1981, including—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the amounts of petroleum products stored in the Reserve, under contract and in transit at the end of the previous calendar quarter;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the projected fill rate for the Strategic Petroleum Reserve for the then current calendar quarter and the previous calendar quarter;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>the average price of the petroleum products acquired during the previous calendar quarter;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>existing and projected Strategic Petroleum Reserve storage capacity and plans to accelerate the acquisition or construction of such capacity;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>an analysis of any existing or anticipated problems associated with acquisition, transportation, and storage of petroleum products in the Reserve and with the expansion of storage capacity for the Reserve; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num><content>the amount of funds obligated by the Secretary from the SPR Petroleum Account, as well as other funds available for the Reserve, during the previous calendar quarter and in total under the amendments made by such Act.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>The first report submitted under paragraph (1) shall include—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>a detailed statement on the planned use of the SPR Petroleum Account as well as other funds available for the Strategic Petroleum Reserve;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>a description of the current Strategic Petroleum Reserve Plan, including any proposed or anticipated amendments to the Plan; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>detailed plans of the Secretary for acquisition or new construction of storage and related facilities.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </subsection> </section> <page identifier="/us/stat/95/621">95 STAT. 621</page> <section> <heading class="centered smallCaps">study on ultimate size of reserve</heading><num value="1037"><inline class="smallCaps">Sec</inline>. 1037. </num><chapeau>Not later than 6 months after the date of the enactment of this Act, the Secretary of Energy shall conduct a study, and prepare and transmit a report thereon to the President and the Congress, on whether the final storage level set forth in the Strategic Petroleum Reserve Plan should be amended. Such report shall include an analysis of the costs and benefits to the Government (and the nation) which are associated with achieving—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the final storage level currently set forth in the plan, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>any other larger or smaller final storage level which might be appropriate.</content></paragraph> </section> <section> <heading class="centered smallCaps">effective date</heading><num value="1038"><inline class="smallCaps">Sec</inline>. 1038. </num><content>The provisions of this title shall take effect on the date of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s6240">42 USC 6240 note</ref>.</p></sidenote>the enactment of this Act.</content> </section> </subtitle> <subtitle><num value="D">Subtitle D—</num><heading>Voluntary Building Energy Conservation Standards</heading> <section> <heading class="centered smallCaps">voluntary standards</heading><num value="1041"><inline class="smallCaps">Sec</inline>. 1041. </num><subsection class="inline"><num value="a">(a) </num><content>The Energy Conservation Standards for New Buildings Act of 1976 is amended by striking out “<quotedText>performance standards</quotedText>” <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s6801">42 USC 6801 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s6835">42 USC 6835</ref>.</p></sidenote>each place it appears, except in section 306, and inserting in lieu thereof “<quotedText>voluntary performance standards</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The Energy Conservation Standards for New Buildings Act of 1976 is amended by striking out sections 305 and 307 (42 U.S.C. 6834 and 6836).</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>Section 304(a) of the Energy Conservation Standards for New Buildings Act of 1976 (42 U.S.C. 6833(a)) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>Except in the case of Federal buildings as required under section 306, voluntary performance standards under this subsection shall be developed solely as guidelines for the purpose of providing technical assistance for the design and construction of energy efficient buildings.”;</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>the effective date of final performance standards promulgated pursuant to this paragraph</quotedText>” where it appears in paragraphs (1) and (2) and inserting in lieu thereof “<quotedText>April 1, 1984,</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out “<quotedText>, and shall become effective within a reasonable time not to exceed 1 year after the date of promulgation, as specified by the Secretary</quotedText>” where it appears in paragraphs (1) and (2).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Section 306 of such Act (42 U.S.C. 6835) is amended by striking out “<quotedText>Upon the effective date of the final performance standards promulgated pursuant to such section,</quotedText>” and inserting in lieu thereof “<quotedText>Not later than April 1, 1984,</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Section 308 of such Act (42 U.S.C. 6837) is amended by striking out “<quotedText>meeting the requirements of this title</quotedText>” and inserting in lieu thereof “<quotedText>furthering the design and construction of energy efficient buildings</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>The table of sections for such Act is amended by striking out the items relating to sections 305 and 307.</content> </subsection> </section> </subtitle> <page identifier="/us/stat/95/622">95 STAT. 622</page> <subtitle><num value="E">Subtitle E—</num><heading>Office of Federal Inspector for the Alaska Natural Gas Transportation System</heading> <section> <heading class="centered smallCaps">funding limitation</heading><num value="1051"><inline class="smallCaps">Sec</inline>. 1051. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s719e">15 USC 719e note</ref>.</p></sidenote> <content class="inline">Notwithstanding any other provision of law, there shall not be appropriated for programs of the Office of Federal Inspector for the Alaska Natural Gas Transportation System in excess of $21,038,000 for the fiscal year ending September 30, 1981; $36,568,000 for the fiscal year ending September 30, 1982; in excess of $45,532,000 for the fiscal year ending September 30, 1983, and $46,908,000 for the fiscal year ending September 30, 1984.</content> </section> </subtitle> <subtitle><num value="F">Subtitle F—</num><heading>Biomass Energy and Alcohol Fuels</heading> <section> <heading class="centered smallCaps">department of agriculture</heading><num value="1061"><inline class="smallCaps">Sec</inline>. 1061. </num><content>Section 204(a) of the Biomass Energy and Alcohol Fuels <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/685">94 Stat. 685</ref>.</p></sidenote>Act of 1980 (42 U.S.C. 8803(a)) is amended by striking out “<quotedText>$600,000,000</quotedText>” in paragraph (1) and inserting in lieu thereof “<quotedText>$460,000,000</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">department of energy</heading><num value="1062"><inline class="smallCaps">Sec</inline>. 1062. </num><content>Section 204(a) of the Biomass Energy and Alcohol Fuels Act of 1980 (42 U.S.C. 8803(a)) is amended by striking out “<quotedText>$600,000,000</quotedText>” in paragraph (2) and inserting in lieu thereof “<quotedText>$460,000,000</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">conforming amendment</heading><num value="1063"><inline class="smallCaps">Sec</inline>. 1063. </num><content>Section 204(a) of the Biomass Energy and Alcohol Fuels Act of 1980 (42 U.S.C. 8803(a)) is amended by striking out “<quotedText>$1,450,000,000</quotedText>” and inserting in lieu thereof “<quotedText>$1,170,000,000</quotedText>”.</content> </section> </subtitle> <subtitle><num value="G">Subtitle G—</num><heading>Solar Bank</heading> <section> <heading class="centered smallCaps">fiscal year 1982, 1983, and 1984 authorizations</heading><num value="1071"><inline class="smallCaps">Sec</inline>. 1071. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t12/s3620">12 USC 3620 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/737">94 Stat. 737</ref>.</p></sidenote> <content class="inline">In lieu of the amounts authorized by subsections (a) and (b) of section 522 of the Solar Energy and Energy Conservation Act of 1980 (12 U.S.C. 3620) to be appropriated for fiscal years 1982, 1983, and 1984, there is authorized to be appropriated for each such fiscal year not to exceed $50,000,000 to provide financial assistance under subtitle A of such Act for the purchase and installation of residential and commercial energy conserving improvements and of solar energy systems. Any funds appropriated pursuant to the preceding authorization may remain available without fiscal year limitation. </content> </section> </subtitle> <num value="XI">TITLE XI—</num><heading>TRANSPORTATION AND RELATED PROGRAMS</heading> <subtitle><num value="A">Subtitle A—</num><heading>Aviation</heading> <part><num value="1">PART 1— </num><sidenote><p class="indent0 firstIndent0 fontsize8">Fiscal Year 1981 Airport Development Authorization Act.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s1701">49 USC 1701 note</ref>.</p></sidenote> <heading>FISCAL YEAR 1981 AIRPORT DEVELOPMENT</heading> <section class="firstIndent1 fontsize10"><num value="1101"><inline class="smallCaps">Sec</inline>. 1101. </num><content>This part may be cited as the “<shortTitle role="part">Fiscal Year 1981 Airport Development Authorization Act</shortTitle>”.</content> </section> <page identifier="/us/stat/95/623">95 STAT. 623</page> <section class="firstIndent1 fontsize10"><num value="1102"><inline class="smallCaps">Sec</inline>. 1102. </num><subsection class="inline"><num value="a">(a) </num><content>Section 14(a)(3) of the Airport and Airway Development Act of 1970 (49 U.S.C. 1714(a)(3)) is amended by striking out “<quotedText>and</quotedText>” after “<quotedText>1979,</quotedText>” and by striking out the period at the end thereof and inserting in lieu thereof “<quotedText>, and $387,000,000 for fiscal year 1981.</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 14(a)(4) of the Airport and Airway Development Act of 1970 (49 U.S.C. 1714(a)(4)) is amended by striking out “<quotedText>and</quotedText>” after “<quotedText>1979,</quotedText>” and by striking out the period at the end thereof and inserting in lieu thereof “<quotedText>, and $63,000,000 for fiscal year 1981.</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>In addition to the purposes otherwise authorized, amounts <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s1714">49 USC 1714 note</ref>.</p></sidenote>authorized under sections 14(a)(3) and 14(a)(4) of the Airport and Airway Development Act of 1970 for fiscal year 1981 shall also be authorized for airport system planning, airport master planning, and airport noise compatibility planning, all in accordance with section 13 of such Act, and for carrying out noise compatibility programs <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s1713">49 USC 1713</ref>.</p></sidenote>under section 104(c) of the Aviation Safety and Noise Abatement Act of 1979. The apportionment of such amounts under section 15 of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s2104">49 USC 2104</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s1715">49 USC 1715</ref>.</p></sidenote>Airport and Airway Development Act of 1970 shall be made as soon as possible after the date of enactment of this part and for purposes of sections 14(b), 15, and 19 of the Airport and Airway Development Act of 1970 relating to authority to incur obligations and to enter into <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s1714/1715/1719">49 USC 1714, 1715, 1719</ref>.</p></sidenote>project grant agreements all the purposes set forth in the preceding sentence shall be deemed to be airport development within the meaning of such Act. The Secretary shall obligate from funds available for fiscal year 1981 under section 14(a)(3) of the Airport and Airway Development Act of 1970 not less than $25,000,000 for carrying out noise compatibility programs under section 104(c) of the Aviation Safety and Noise Abatement Act of 1979.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Section 14(b)(2) of the Airport and Airway Development Act of 1970 (49 U.S.C. 1714(b)(2)) is amended by striking out “<quotedText>1980</quotedText>” and inserting in lieu thereof “<quotedText>1981</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Section 15(a)(3)(A)(I) of the Airport and Airway Development Act of 1970 (49 U.S.C. 1715(a)(3)(A)(I)) is amended by striking out “<quotedText>1980</quotedText>” and inserting in lieu thereof “<quotedText>1981</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>Section 15(a)(3)(A)(II) of the Airport and Airway Development Act of 1970 (49 U.S.C. 1715(a)(3)(A)(II)) is amended by striking out “<quotedText>1980</quotedText>” and inserting in lieu thereof “<quotedText>1981</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>Section 15(a)(3)(B)(i) of the Airport and Airway Development Act of 1970 (49 U.S.C. 1715(a)(3)(B)(i)) is amended by striking out “<quotedText>1980</quotedText>” and inserting in lieu thereof “<quotedText>1981</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><content>Section 15(a)(4) of the Airport and Airway Development Act of 1970 (49 U.S.C. 1715(a)(4)) is amended by striking out “<quotedText>fiscal year 1980</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>each of the fiscal years 1980 and 1981</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num><content>Section 17(a)(2)(A) of the Airport and Airway Development Act of 1970 (49 U.S.C. 1717(a)(2)(A)) is amended by striking out “<quotedText>fiscal year 1980</quotedText>” and inserting in lieu thereof “<quotedText>fiscal years 1980 and 1981</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="j">(j) </num><content>Notwithstanding any other provision of the Airport and Airway <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s1716">49 USC 1716 note</ref>.</p></sidenote>Development Act of 1970, the Secretary of Transportation may approve an application under such Act before October 1, 1981, for a project which was begun after September 30, 1980, and before the date of the enactment of this part. If such an application is approved, costs incurred under such project after September 30, 1980, and before the date of approval of such project shall be allowable costs to the extent they would be allowable costs under the provisions of such Act of 1970 (other than provisions making costs allowable only if incurred after the execution of the grant agreement) if incurred after the date of such project approval.</content> </subsection> <page identifier="/us/stat/95/624">95 STAT. 624</page> <subsection class="indent0 fontsize10"><num value="k">(k) </num><content>Notwithstanding any other provision of law, the Secretary of Transportation shall obligate from funds available for fiscal year <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s1701">49 USC 1701 note</ref>.</p></sidenote>1981 under the Airport and Airway Development Act of 1970 $15,000,000 for carrying out noise compatibility programs at Cannon International Airport in Reno, Nevada, in accordance with section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s2104">49 USC 2104</ref>.</p></sidenote>104(c) of the Aviation Safety and Noise Abatement Act of 1979. Such funds shall remain available until expended. Of the amount obligated for projects described in this subsection, only that portion of such amount which exceeds $10,000,000 and is less than or equal to $15,000,000 shall be counted as part of the $25,000,000 required to be obligated by the last sentence of subsection (c) of this section.</content> </subsection> </section> <section class="firstIndent1 fontsize10"><num value="1103"><inline class="smallCaps">Sec</inline>. 1103. </num><subsection class="inline"><num value="a">(a) </num><content>Section 208(f)(1) of the Airport and Airway Revenue <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s1742">49 USC 1742</ref>.</p></sidenote>Act of 1970 is amended by striking out “<quotedText>1980</quotedText>” and inserting in lieu thereof “<quotedText>1981</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Subparagraph (A) of section 208(f)(1) of the Airport and Airway Revenue Act of 1970 is amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s1701">49 USC 1701</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s1701">49 USC 1701 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s2101">49 USC 2101 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 622.</p></sidenote> <content class="inline">incurred under title I of this Act or of the Airport and Airway Development Act Amendments of 1976 or of the Aviation Safety and Noise Abatement Act of 1979 or under the Fiscal Year 1981 Airport Development Authorization Act (as such Acts were in effect on the date of enactment of the Fiscal Year 1981 Airport Development Authorization Act);”.</content></subparagraph> </quotedContent> </content> </subsection> </section> </part> <part><num value="2">PART 2—</num><heading>ADDITIONAL PROVISIONS RELATING TO AIRPORT DEVELOPMENT</heading> <section class="firstIndent1 fontsize10"><num value="1104"><inline class="smallCaps">Sec</inline>. 1104. </num><content>If the Senate and the House of Representatives approve a conference report on the Airport and Airway Improvement Act of 1981 which includes new budget authority for airport development, airport planning, airport noise compatibility planning, and carrying out noise compatibility programs which exceeds $450,000,000 for fiscal year 1981 or which exceeds an aggregate amount of $1,050,000,000 for fiscal years 1981 and 1982, then before the bill which is the subject of such conference report is enrolled, the Secretary of the Senate or the Clerk of the House of Representatives, as the case may be, is directed to include the following provision in the bill: “Notwithstanding any other provision of law, the total amount which may be obligated for airport development, airport planning, airport noise compatibility planning, and carrying out noise compatibility programs from amounts in the Airport and Airway Trust Fund which were not available for obligation during any previous fiscal year shall not exceed $450,000,000 for fiscal year 1981 and shall not exceed an aggregate amount of $1,050,000,000 for fiscal years 1981 and 1982.”.</content> </section> </part> </subtitle> <subtitle><num value="B">Subtitle B—</num><heading>Highways and Highway Safety</heading> <section class="firstIndent1 fontsize10"><num value="1106"><inline class="smallCaps">Sec</inline>. 1106. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t23/s104">23 USC 104 note</ref>.</p></sidenote> <content class="inline">Notwithstanding any other provision of law, the total of all obligations for Federal-aid highways and highway safety construction programs for fiscal year 1982 shall not exceed $8,200,000,000. This limitation shall not apply to obligations for emergency relief under section 125 of title 23, United States Code, or projects covered under section 147 of the Surface Transportation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t23/s144">23 USC 144 note</ref>.</p></sidenote>Assistance Act of 1978. No obligation constraints shall be placed upon any ongoing emergency project carried out under section 125 of title 23, United States Code, or section 147 of the Surface Transportation Assistance Act of 1978.</content> </subsection> <page identifier="/us/stat/95/625">95 STAT. 625</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Notwithstanding any other provision of law, the total of all obligations for Federal-aid highways and highway safety construction programs for fiscal year 1983 shall not exceed $8,800,000,000. This limitation shall not apply to obligations for emergency relief under section 125 of title 23, United States Code, or projects covered under section 147 of the Surface Transportation Assistance Act of 1978. No obligation constraints shall be placed upon any ongoing emergency project carried out under section 125 of title 23, United States Code, or section 147 of the Surface Transportation Assistance Act of 1978. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t23/s144">23 USC 144 note</ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>For each of the fiscal years 1982 and 1983, the Secretary of Transportation shall distribute the limitation imposed by subsections (a) and (b) by allocation in the ratio which sums authorized to be appropriated for Federal-aid highways and highway safety construction which are apportioned to each State for each such fisen1 year bears to the total of the sums authorized to be appropriated for Federal-aid highways and highway safety construction which are apportioned to all the States for each such fiscal year.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>During the periods October 1 through December 31, 1981, and October 1 through December 31, 1982, no State shall obligate more than 35 per centum of the amount distributed to such State under subsection (c), and the total of all State obligations during such period shall not exceed 25 per centum of the total amount distributed to all States under such subsection.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><chapeau>Notwithstanding subsections (c) and (d), the Secretary shall—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>provide all States with authority sufficient to prevent lapses of sums authorized to be appropriated for Federal-aid highways and highway safety construction which have been apportioned to a State, except in those instances in which a State indicates its intention to lapse sums apportioned under section 104(b)(5)(A) of title 23, United States Code;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>after August 1, 1982, and after August 1, 1983, revise a distribution of the funds made available under subsection (c) if a State will not obligate the amount distributed during that fiscal year and redistribute sufficient amounts to those States able to obligate amounts in addition to those previously distributed during that fiscal year; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>not distribute amounts authorized for administrative expenses and forest highways.</content></paragraph> </subsection> </section> <section class="firstIndent1 fontsize10"><num value="1107"><inline class="smallCaps">Sec</inline>. 1107. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>There is hereby authorized to be appropriated for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t23/s402">23 USC 402 note</ref>.</p></sidenote>carrying out section 402 of title 23, United States Code (relating to highway safety programs), by the National Highway Traffic Safety Administration, out of the Highway Trust Fund, $100,000,000 per fiscal year for each of the fiscal years ending September 30, 1982, September 30, 1983, and September 30, 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Out of the funds authorized to be appropriated under paragraph (1) of this subsection for each of the fiscal years ending September 30, 1982, September 30, 1983, and September 30, 1984, not less than $20,000,000 per fiscal year shall be obligated under section 402 of title 23, United States Code, for the purpose of enforcing the fifty-five miles per hour speed limit established by section 154 of such title. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t23/s154">23 USC 154</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Each State shall expend each fiscal year not less than 2 per centum of the amount apportioned to it for such fiscal year of the sums authorized by paragraph (1) of this subsection, for programs to encourage the use of safety belts by drivers of, and passengers in, motor vehicles.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Notwithstanding any other provision of law, the total of all obligations for highway safety programs carried out by the National <page identifier="/us/stat/95/626">95 STAT. 626</page>Highway Traffic Safety Administration under section 402 of title 23, United States Code, shall not exceed $100,000,000, per fiscal year for each of the fiscal years ending September 30, 1982, September 30, 1983, and September 30, 1984, and the total of all obligations for highway safety programs carried out by the Federal Highway Administration under section 402 of title 23, United States Code, shall not exceed $10,000,000, per fiscal year for each of such fiscal years.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t23/s402">23 USC 402 note</ref>.</p></sidenote> <content class="inline">Effective October 1, 1982, subsection (h) of section 402 of title 23, United States Code, is repealed.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Rulemaking.</p></sidenote> <content class="inline">Section 402(j) of title 23, United States Code, is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="j">“(j) </num><content>The Secretary of Transportation shall, not later than September 1, 1981, begin a rulemaking process to determine those programs most effective in reducing accidents, injuries, and deaths. Such rule shall be promulgated taking into account consideration of the States having a major role in establishing these programs. Not later than April 1, 1982, the Secretary shall promulgate a final rule establishing those programs determined most effective in reducing accidents, <sidenote><p class="indent0 firstIndent0 fontsize8">Transmittal to Congress.</p></sidenote>injuries, and deaths. Before such rule shall take effect, it shall be transmitted to Congress. If such rule is not transmitted by April 1, 1982, it shall not take effect before October 1, 1983. If such rule is transmitted by April 1, 1982, it shall take effect October 1, 1982, unless before June 1, 1982, either House of Congress by resolution disapproves such rule. If such rule is disapproved by either House of Congress, the Secretary shall not apportion or obligate any amount authorized to carry out this section for the fiscal year ending September 30, 1983, or any subsequent fiscal year, unless specifically authorized to do so by a statute enacted after the date of enactment of the Omnibus Budget Reconciliation Act of 1981. When a rule promulgated in accordance with this subsection takes effect, only those programs established by such rule as most effective in reducing accidents, injuries, and deaths shall be eligible to receive Federal financial assistance under this chapter.”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Section 402(b)(1) of title 23, United States Code, is amended by striking out subparagraph (D) and by redesignating subparagraphs (E), (F), and (G) (and any references thereto) as subparagraphs (D), (E), and (F), respectively.</content> </subsection> </section> <section class="firstIndent1 fontsize10"><num value="1108"><inline class="smallCaps">Sec</inline>. 1108. </num><subsection class="inline"><num value="a">(a) </num><content>Section 154(f) of title 23, United States Code, is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><content>If the data submitted by a State pursuant to subsection (e) of this section show that the percentage of motor vehicles exceeding 55 miles per hour is greater than 50 percent, the Secretary shall reduce the State’s apportionment of Federal-aid highway funds under each of sections 104(b)(1), 104(b)(2), and 104(b)(6) of this title in an aggregate amount of up to 5 percent of the amount to be apportioned for the following fiscal year, in the case of fiscal years 1982 and 1983, and up to 10 percent, in the case of subsequent fiscal years.”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Subsection (i) of section 154 of title 23, United States Code, is hereby repealed.</content> </subsection> </section> <section class="firstIndent1 fontsize10"><num value="1109"><inline class="smallCaps">Sec</inline>. 1109. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/92/2727">92 Stat. 2727</ref>.</p></sidenote> <chapeau class="inline">Section 202 of the Highway Safety Act of 1978 is amended as follows:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Paragraph (1) is amended by striking out “<quotedText>per fiscal year for each of the fiscal years ending September 30, 1981, and September 30, 1982.</quotedText>” and inserting in lieu thereof “<quotedText>for the fiscal year ending September 30, 1981.</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Paragraph (2) is amended by striking out “<quotedText>September 30, 1981, and September 30, 1982.</quotedText>” and inserting in lieu thereof “<quotedText>and September 30, 1981, and $31,000,000 per fiscal year for each of <page identifier="/us/stat/95/627">95 STAT. 627</page>the fiscal years ending September 30, 1982, September 30, 1983, and September 30, 1984.</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Paragraph (3) is amended by striking out “<quotedText>September 30, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/92/2727">92 Stat. 2727</ref>.</p></sidenote>1981, and September 30, 1982.</quotedText>” and inserting in lieu thereof “<quotedText>and September 30, 1981, and $10,000,00 per fiscal year for each of the fiscal years ending September 30, 1982, September 30, 1983, and September 30, 1984.</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Paragraph (4) is amended in the first sentence by striking out “<quotedText>September 30, 1981, and September 30, 1982.</quotedText>” and inserting in lieu thereof “<quotedText>and September 30, 1981.</quotedText>”. Paragraph (4) is amended in the second sentence by striking out “<quotedText>September 30, 1981, and September 30, 1982.</quotedText>” and inserting in lieu thereof “<quotedText>and September 30, 1981.</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>Paragraph (5) is amended by striking out the period at the end thereof and inserting in lieu thereof “<quotedText>, and $13,000,000 per fiscal year for each of the fiscal years ending September 30, 1983, and September 30, 1984.</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>Paragraph (9) is amended by striking out the period at the end thereof and inserting in lieu thereof “<quotedText>and $1,500,000 for the fiscal year ending September 30, 1983. Section 406 of title 23, United States Code, is repealed effective upon the obligation and expenditure of all funds authorized to carry out such section.</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>Paragraph (10) is amended by inserting “<quotedText>and</quotedText>” after “<quotedText>1980,</quotedText>” and by striking out “<quotedText>, and $15,000,000 for the fiscal year ending September 30, 1982.</quotedText>” and inserting in lieu thereof a period.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Of the funds authorized to be appropriated by section 202(1) of the Highway Safety Act of 1978 for any fiscal year ending before <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/92/2727">92 Stat. 2727</ref>.</p></sidenote>October 1, 1981, which have not been obligated for expenditure before such date, $133,000,000 shall not be available for obligation, and shall no longer be authorized, on and after such date.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Of the funds authorized to be appropriated by section 202(3) of the Highway Safety Act of 1978 for any fiscal year ending before October 1, 1981, which have not been obligated for expenditure before such date, $40,000,000 shall not be available for obligation, and shall no longer be authorized, on and after such date.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 206 of the Highway Safety Act of 1978 is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/92/2731">92 Stat. 2731</ref>.</p></sidenote>inserting “<quotedText>and</quotedText>” after “<quotedText>1980,</quotedText>” and by striking out “<quotedText>and September 30, 1982,</quotedText>”.</content> </subsection> </section> </subtitle> <subtitle><num value="C">Subtitle C—</num><heading>Public Mass Transportation</heading> <section class="firstIndent1 fontsize10"><num value="1111"><inline class="smallCaps">Sec</inline>. 1111. </num><subsection class="inline"><num value="a">(a) </num><chapeau>The Urban Mass Transportation Act of 1964 is amended as follows:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Section 4(c)(3)(A) is amended by striking out <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s1603">49 USC 1603</ref>.</p></sidenote>“<quotedText>$1,600,000,000</quotedText>” and inserting in lieu thereof “<quotedText>$1,515,000,000</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 4(e) is amended by striking out “<quotedText>$120,000,000</quotedText>” and inserting in lieu thereof “<quotedText>$75,000,000</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Section 4(f) is amended by striking out “<quotedText>$105,000,000</quotedText>” and inserting in lieu thereof “<quotedText>$100,000,000</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Section 4(g) is amended by striking out the period at the end thereof and inserting in lieu thereof “<quotedText>, except that there are authorized to be appropriated not to exceed $600,000,000 for such projects for the fiscal year ending September 30, 1982.</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>Section 5(a)(1)(B) is amended by striking out “<quotedText>$900,000,000 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s1604">49 USC 1604</ref>.</p></sidenote>in each fiscal year for the fiscal years ending September 30, 1981, and September 30, 1982.</quotedText>” and inserting in lieu thereof “<quotedText>$900,000,000 for the fiscal year ending September 30, 1981, and $850,000,000 for the fiscal year ending September 30, 1982.</quotedText>”.</content></paragraph> <page identifier="/us/stat/95/628">95 STAT. 628</page> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s1604">49 USC 1604</ref>.</p></sidenote> <content class="inline">Section 5(a)(2)(B) is amended by striking out “<quotedText>$250,000,000</quotedText>” the last place it appears and inserting in lieu thereof “<quotedText>$165,000,000</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>Section 5(a)(3)(B) is amended by striking out “<quotedText>$160,000,000</quotedText>” and inserting in lieu thereof “<quotedText>$90,000,000</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>Section 5(a)(4)(B) is amended by striking out “<quotedText>$455,000,000</quotedText>” and inserting in lieu thereof “<quotedText>$375,000,000</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s1608">49 USC 1608 note</ref>.</p></sidenote> <content class="inline">Notwithstanding any other provision of law, the total amount authorized to be appropriated for the fiscal year ending September <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s1601">49 USC 1601 note</ref>.</p></sidenote>30, 1982, under the Urban Mass Transportation Act of 1964 shall not exceed $3,792,000,000.</content> </subsection> </section> </subtitle> <subtitle><num value="D">Subtitle D—</num><heading>Railroad Retirement and Related Matters</heading> <section class="firstIndent1 fontsize10"><num value="1116"><inline class="smallCaps">Sec</inline>. 1116. </num><subsection class="inline"><num value="a">(a) </num><content>The last sentence of section 1(f)(1) of the Railroad <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231">45 USC 231</ref>.</p></sidenote>Retirement Act of 1974 is amended to read as follows: “Ultimate fractions shall be taken at their actual value.”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 1(o) of the Railroad Retirement Act of 1974 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>the National Transportation Safety Board,</quotedText>” after “<quotedText>the National Mediation Board,</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting after the first sentence the following: “For <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231a">45 USC 231a</ref>.</p></sidenote>purposes of section 2(b) and section 2(d) only, an individual shall be deemed also to have ‘a current connection with the railroad industry’ if, after having completed twenty-five years of service, such individual involuntarily and without fault ceased rendering service as an employee under this Act and did not thereafter decline an offer of employment in the same class or craft as the individual’s most recent employee service. For purposes of section 2(d) only, an individual shall be deemed to have a ‘current connection with the railroad industry’ if a pension will have been payable to that individual under the Railroad Retirement Act of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231">45 USC prec. 231 note</ref>.</p></sidenote>1937 or a retirement annuity based on service of not less than 10 years (as computed in awarding the annuity) will have begun to accrue to that individual prior to 1948 under the Railroad Retirement Act of 1937.”.</content></paragraph> </subsection> </section> <section class="firstIndent1 fontsize10"><num value="1117"><inline class="smallCaps">Sec</inline>. 1117. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 2(b)(1) of the Railroad Retirement Act of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231a">45 USC 231a</ref>.</p></sidenote>1974 is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>(1) An individual</quotedText>” and inserting in lieu thereof “<quotedText>An individual</quotedText>”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>in subdivision (2) of this subsection and</quotedText>”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out “<quotedText>and</quotedText>” at the end of paragraph (iii);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>by inserting “<quotedText>and</quotedText>” at the end of paragraph (iv); and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>by inserting after paragraph (iv) the following new paragraph: <quotedContent> <clause class="firstIndent1 fontsize10"><num value="v">“(v) </num><content>has performed compensated service in at least one month prior to October 1, 1981;”</content> </clause> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Section 2(b) of the Railroad Retirement Act of 1974 is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out subdivision (2); and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out subdivision (3);</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 2(c) of the Railroad Retirement Act of 1974 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>or a divorced wife who would be entitled to an annuity under subdivison (4)</quotedText>” after “<quotedText>under subdivision (1)</quotedText>” in subdivision (2);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>1/180</quotedText>” and inserting in lieu thereof “<quotedText>1/144</quotedText>” in subdivision (2);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out “<quotedText>spouse</quotedText>” the second place it appears in subdivision (2) and adding in lieu thereof “<quotedText>spouse or divorced wife</quotedText>”; and</content></paragraph> <page identifier="/us/stat/95/629">95 STAT. 629</page> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by adding at the end thereof the following new subdivision (4): <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><chapeau>The ‘divorced wife’ (as defined in section 216(d) of the Social Security Act) of an individual, if— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s416">42 USC 416</ref>.</p></sidenote></chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>such individual (A) is entitled to an annuity under subsection (a)(1) and (B) has attained the age 62;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>such divorced wife (A) has attained the age of 65 and (B) is not married; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>such divorced wife would have been entitled to a benefit under section 202(b) of the Social Security Act as the divorced <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402</ref>.</p></sidenote>wife of such individual if all of such individual’s service as an employee after December 31, 1936, had been included in the term ‘employment’ as defined in that Act;</content> </clause> <continuation class="indent0 firstIndent0 fontsize10">shall, subject to the conditions set forth in subsections (e), (f), and (h), be entitled to a divorced wife’s annuity, if she has filed an application therefor, in the amount provided under section 4 of this Act.”. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231c">45 USC 231c</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231a">45 USC 231a</ref>.</p></sidenote></continuation> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>Section 2(d) of the Railroad Retirement Act of 1974 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>and</quotedText>” at the end of subdivision (1)(iii);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out the period at the end of subdivision (1)(iv) and inserting in lieu thereof “<quotedText>; and</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by adding at the end of subdivision (1) the following new paragraph: <quotedContent> <clause class="firstIndent1 fontsize10"><num value="v">“(v) </num><content>The widow (as defined in section 216(c) of the Social Security Act), who is married, or has been married after the death of the employee, the surviving divorced wife (as defined in section 216(d) of the Social Security Act), and a surviving divorced mother (as defined in section 216(d) of the Social Security Act) if such widow, surviving divorced wife, or surviving divorced mother would have been entitled to a benefit under section 202(e) or 202(g) of the Social Security Act as the widow, surviving divorced wife, or surviving divorced mother of the employee if all of his service as an employee after December 31, 1936, had been included in the term ‘employment’ as defined in that Act. For the purpose of this paragraph, the reference in sections 202(e)(3) and 202(g)(3) of the Social Security Act to an individual entitled under section 202(f) of that Act shall include an individual entitled to an annuity under section 2(d)(1)(i) of this Act and an individual entitled to an annuity under section 2(d)(1)(ii) of this Act, and the reference in section 202(e)(3) and section 202(g)(3) of the Social Security Act to an individual entitled under section 202(d) or section 202(h) of that Act shall include an individual entitled to an annuity under section 2(d)(1)(iii) or section 2(d)(1)(iv) of this Act, and the references in section 202(g)(3) of the Social Security Act to an individual entitled under section 202(a) or section 223(a) of that Act shall include an individual entitled to an annuity under section 2(a)(1) of this Act.”.</content> </clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Section 2(e)(5) of the Railroad Retirement Act of 1974 is amended by striking out “<quotedText>spouse</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>spouse or divorced wife</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 2(f)(2) of the Railroad Retirement Act of 1974 is amended by inserting “<quotedText>or divorced wife’s</quotedText>” after “<quotedText>spouse’s</quotedText>” each place (other than the second place) it appears.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 2(f) of such Act is amended by adding at the end thereof the following new subdivisions: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Deductions shall not be made pursuant to subdivision (1) from that portion of an individual’s annuity as is computed under section 3(a) of this Act for any month in which the annuity of such individual is reduced pursuant to section 3(m) of this Act. This subdivision shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231b">45 USC 231b</ref>.</p></sidenote><page identifier="/us/stat/95/630">95 STAT. 630</page>be disregarded in determining the applicability and amount of deductions in a spouse’s annuity pursuant to subdivision (2) of this subsection.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>Deductions shall not be made pursuant to subdivision (2) from that portion of a spouse’s annuity as is computed under section 4(a) of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231c">45 USC 231c</ref>.</p></sidenote>this Act for any month in which the annuity of such spouse is reduced due to entitlement to a benefit under title II of the Social Security <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s401">42 USC 401</ref>.</p></sidenote>Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>If an annuity begins to accrue on other than the first day of a month, subdivisions (1) and (2) of this subsection shall not apply in the year the annuity begins to accrue if the annuitant has no earnings in excess of the monthly exempt amount in such year after the annuity beginning date.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231a">45 USC 231a</ref>.</p></sidenote> <content class="inline">Section 2(g)(2) of the Railroad Retirement Act of 1974 is amended by striking out “<quotedText>is under the age of seventy-two and is</quotedText>” and inserting in lieu thereof “<quotedText>would be</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><chapeau>Section 2(h) of the Railroad Retirement Act of 1974 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>spouse</quotedText>” in subdivision (1) and inserting in lieu thereof “<quotedText>spouse or divorced wife</quotedText>”, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>spouse</quotedText>” the first place it appears in subdivision (3) and inserting in lieu thereof “<quotedText>spouse or divorced wife</quotedText>”.</content></paragraph> </subsection> </section> <section class="firstIndent1 fontsize10"><num value="1118"><inline class="smallCaps">Sec</inline>. 1118. </num><subsection class="inline"><num value="a">(a) </num><content>Subsection (b) of section 3 of the Railroad Retirement <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231b">45 USC 231b</ref>.</p></sidenote>Act of 1974 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>The amount of the annuity of an individual provided under subsection (a) shall be increased by an amount equal to seven-tenths of 1 per centum of the product which is obtained by multiplying such individual’s ‘years of service’ by such individual’s ‘average monthly compensation’ as determined under this subsection. The annuity amount payable to the individual under this subsection shall be reduced by 25 per centum of the annuity amount computed for such individual under subsection (h)(1) or (h)(2), and subsection (h)(5), of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231f">45 USC 231f</ref>.</p></sidenote>this section without regard to section 7(c)(1) of this Act. An individual’s ‘average monthly compensation’ for purposes of this subsection shall be the quotient obtained by dividing by 60 such individual’s total compensation for the 60 months, consecutive or otherwise, during which such individual received that individual’s highest monthly compensation, except that no part of any month’s compensation in excess of the maximum amount creditable for any individual for such month under subsection (j) of this section shall be recognized. In determining the months of compensation to be used for purposes of this subsection, the total compensation reported for the individual under section 9 of this Act or credited to such individual under subsection (j) of this section for a year divided by the number of months of service credited to such individual under subsection (i) of this section with respect to such year shall be considered the monthly compensation of the individual for each month of service in any year for which records of the Board do not show the amount of compensation paid to the individual on a monthly basis. If the ‘average monthly compensation’ computed under this subsection is not a multiple of $1, it shall be rounded to the next lower multiple of $1.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>For purposes of subdivision (1) of this subsection, in determining ‘average monthly compensation’ for an individual who has not engaged in employment for an employer in the 60-month period preceding the month in which such individual’s annuity began to accrue, and whose major employment during such 60-month period was for a United States department or agency named in section 1(o) of <page identifier="/us/stat/95/631">95 STAT. 631</page>this Act, the amount of compensation used with respect to each month used in making such determination shall be the product of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the compensation credited to such individual for such month under paragraph (1) of this subsection; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><chapeau>the quotient obtained by dividing—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>the average of total wages (as determined under section 215(b)(3)(A)(ii)(I) of the Social Security Act) for the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s415">42 USC 415</ref>.</p></sidenote>second calendar year preceding the earliest of the year of the individual’s death or the year in which an annuity begins to accrue to such individual (disregarding an annuity based on disability which is terminated because such individual has recovered from such disability if such individual engages in any regular employment after such termination); by</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>the average of total wages (as determined under section 215(b)(3)(A)(iii)(II) of the Social Security Act) for the calendar year during which such month occurred, unless such month occurred prior to calendar year 1951, in which case, the average of total wages so determined for 1951.</content> </subclause> </clause> <continuation class="indent0 firstIndent0 fontsize10">In no event shall ‘average monthly compensation’ determined for an individual under this subdivision exceed the maximum ‘average monthly compensation’ which can be determined under subdivision (1) of this subsection for any person retiring January 1 of the year in which such individual’s annuity began to accrue”.</continuation> </paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Subsections (c) and (d) of section 3 of the Railroad Retirement Act of 1974 are repealed. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231b">45 USC 231b</ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 3(f)(1) is amended by striking out “<quotedText>subsections (b), (c), and (d)</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>subsection (b)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 3(f) of the Railroad Retirement Act of 1974 is amended by striking out of subdivision (1) all after “<quotedText>effective after the date on which such</quotedText>” and before “<quotedText>(A) 100 per centum of his</quotedText>” and inserting in lieu thereof “<quotedText>individual’s annuity under section 2(a)(1) of this Act begins to accrue, exceed an amount equal to the sum of</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Subsection (g) of section 3 of the Railroad Retirement Act of 1974 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><content>Effective with the month of June for any year after 1981, that portion of the annuity of an individual which is computed under subsection (b) of this section shall, if such individual’s annuity under section 2(a)(1) of this Act began to accrue on or before June 1 of such <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231a">45 USC 231a</ref>.</p></sidenote>year, be increased by 32.5 per centum of the percentage increase, if any (rounded to the nearest one-tenth of 1 per centum), obtained by comparing (A) the unadjusted Consumer Price Index for the calendar quarter ending March 31 of such year with (B) the higher of (i) such index for the calendar quarter ending March 31 of the year immediately preceding such year or (ii) such index for the calendar quarter ending March 31 of any preceding year after 1980. The unadjusted Consumer Price Index for any calendar quarter shall be the arithmetical mean of such index for the three months in such quarter.”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><chapeau>Section 3(h) of the Railroad Retirement Act of 1974 is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231b">45 USC 231b</ref>.</p></sidenote>amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>subsections (a) through (d)</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>subsections (a) and (b)</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out all after “<quotedText>January 1, 1975,</quotedText>” in section 3(h)(5) and inserting in lieu thereof “<quotedText>to the earlier of the date on which the individual’s annuity under section 2(a)(1) of this Act began to accrue or January 1, 1982.</quotedText>”, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by adding at the end thereof the following new subdivision: <page identifier="/us/stat/95/632">95 STAT. 632</page> <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>No amount shall be payable to an individual under subdivision (3) or (4) of this subsection unless the entitlement of such individual to such amount had been determined prior to the date of the enactment of this subdivision.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231b">45 USC 231b</ref>.</p></sidenote> <chapeau class="inline">Subsection (j) of section 3 of the Railroad Retirement Act of 1974 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>the average compensation paid to an employee with respect to calendar months included in his ‘years of service’</quotedText>” the first place it appears in the first sentence thereof and inserting in lieu thereof the following: “<quotedText>computed in the manner specified in section 3(b) of this Act</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>If the ‘average monthly compensation’ computed under this subsection is not a multiple of $1, it shall be rounded to the next lower multiple $1.</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>Subsection (1) of section 3 of the Railroad Retirement Act of 1974 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="l">“(l) </num><paragraph class="inline"><num value="1">(1) </num><content>Except as provided in subdivision (2) of this subsection, if an annunity awarded under section 2(a)(1)(iii) or under section 2(c)(2) of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231a">45 USC 231a</ref>.</p></sidenote>this Act is increased or decreased either by a change in the law or by a recomputation, the reduction on account of age in the amount of such increase or decrease shall be computed as though such increased or decreased annunity amount had been in effect for and after the month in which the annuitant first became entitled to such annunity under section 2(a)(1)(iii) or section 2(c)(2).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The reduction required under section 2(a)(1)(iii) or section 2(c)(2) may be applied separately to each of the annuity amounts computed under subsections (a), (b), and (h) of this section and subsections (a), (b), and (e) of section 4. For this purpose, in any case in which an annuity amount was computed for an individual under the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231">45 USC 231 <i>et seq</i></ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231c">45 USC 231c</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231">45 USC 231 note</ref>.</p></sidenote>provisions of this Act or of Public Law 93–445 prior to October 1, 1981, an annunity amount computed under subsections (a), (b), (c), (d) and (h) of this section, subsection (a), (b), or (e) of section 4, and section 204 or section 206 of Public Law 93–445 shall be reduced by its proportionate share of the reduction on account of age. For purposes of the preceding sentence, annuity amounts computed for an individual under subsections (b), (c), and (d) of section 3 prior to October 1981 shall be considered as one annuity amount.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231b">45 USC 231b</ref>.</p></sidenote> <content class="inline">Section 3(m) of the Railroad Retirement Act of 1974 is amended by inserting “<quotedText>, after any reduction pursuant to paragraph (iii) of section 2(a)(1),</quotedText>” after “<quotedText>shall</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 3(m) of such Act is amended by inserting “<quotedText>(before any deductions on account of work)</quotedText>” after “<quotedText>monthly benefit</quotedText>”.</content></paragraph> </subsection> </section> <section class="firstIndent1 fontsize10"><num value="1119"><inline class="smallCaps">Sec</inline>. 1119. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231c">45 USC 231c</ref>.</p></sidenote> <content class="inline">Section 4(a)(1) of the Railroad Retirement Act of 1974 is amended by striking out “<quotedText>spouse</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>spouse or divorced wife</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 4(b) of the Railroad Retirement Act of 1974 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>subsections (b), (c) and (d)</quotedText>” and inserting in lieu thereof “<quotedText>subsection (b)</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>50</quotedText>” and inserting in lieu thereof “<quotedText>45</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out of the first sentence all after “<quotedText>was reduced by reason of the provisions of subsection (i)(2) of this section</quotedText>” and inserting in lieu thereof a period;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by striking out “<quotedText>, subject to the third proviso of this subsection</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>by striking out the period at the end of the first sentence and by inserting in lieu thereof the following “<quotedText>(disregarding, for this purpose, any increase in such reduction which becomes effective after the later of the date such spouse’s annuity under <page identifier="/us/stat/95/633">95 STAT. 633</page>section 2(c) of this Act began to accrue or the date such spouse’s <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231a">45 USC 231a</ref>.</p></sidenote>annuity under section 2(a)(1) of this Act began to accrue).</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 4(c) of the Railroad Retirement Act of 1974 is amended <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231c">45 USC 231c</ref>.</p></sidenote>by striking “<quotedText>wife’s or husband’s</quotedText>” and inserting in lieu thereof “<quotedText>monthly</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><chapeau>Section 4(e) of the Railroad Retirement Act of 1974 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out all after “<quotedText>January 1, 1975,</quotedText>” in subdivision (4) and inserting in lieu thereof “<quotedText>to the earlier of the date on which the individual’s annuity under section 2(a)(1) of this Act began to accrue or January 1, 1982.</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding at the end thereof the following new subdivision: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>No amount shall be payable to a person under subdivision (1), (2), or (3) of this subsection unless the entitlement of such person to such amount had been determined prior to the date of the enactment of this subdivision.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><chapeau>Section 4(f) of such Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by adding at the end of subdivision (1) “In the case of a widow or widower who is entitled to an annuity under section 2(d) of this Act solely on the basis of railroad service which was performed prior to January 1, 1937, the amount provided under this section with respect to any month shall not be less than the first amount appearing in column IV of the table appearing in section 215(a) of the Social Security Act as in effect on December <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s415">42 USC 415</ref>.</p></sidenote>31, 1974, after reduction in accordance with the provisions of section 202(k) and 202(q) of that Act in the same manner as would <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402</ref>.</p></sidenote>be applicable to a widow’s insurance benefit or widower’s insurance benefit payable under section 202(e) or 202(f) of that Act.”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding at the end thereof the following new subdivision: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The annuity amount provided to a widow or widower under last sentence of subdivision (1) shall be increased by the same percentage or percentages as insurance benefits payable under section 202 of the Social Security Act are increased after the date on which such annuity begins to accrue.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><chapeau>Section 4(f)(2) of the Railroad Retirement Act of 1974 is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231c">45 USC 231c</ref>.</p></sidenote>amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>and</quotedText>” at the end of paragraph (i);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>striking out the period at the end of paragraph (ii) and inserting in lieu thereof “<quotedText>, and</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by adding at the end thereof the following new paragraph: <quotedContent> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>The provisions of paragraphs (i) and (ii) of this subdivision shall not apply to the annuity of a widow, surviving divorced wife, or surviving divorced mother who is entitled to such annuity on the basis of the provisions of section 2(d)(1)(v) of this Act.”.</content> </clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>Subsection (g) of section 4 of the Railroad Retirement Act of 1974 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>The amount of the annuity provided under subsection (f)(1) (other than the last sentence thereof) for a survivor of a deceased individual shall be increased by an amount equal to the appropriate one of the following percentages of that portion of the annuity computed under section 3(b) of this Act, before any reduction on <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 630.</p></sidenote>account of age, to which such deceased individual would have been entitled for the month such survivor’s annuity under section 2(d) of this Act began to accrue if such individual were living (deeming for this purpose that if such individual died before becoming entitled to an annuity under section 2(a)(1) of this Act, such individual became <page identifier="/us/stat/95/634">95 STAT. 634</page><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231a">45 USC 231a</ref>.</p></sidenote>entitled to an annuity under subdivision (i) of such section 2(a)(1) in the month in which such individual died):</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>In the case of a widow or widower, the increase shall be equal to 50 per centum of such portion of the deceased individual’s annuity, but the amount of the annuity so determined shall be subject to reduction on account of age in the same manner as is applicable to the annuity amount determined for the widow or widower under subsection (f) and shall be subject to increase as provided in subdivision (4) of this subsection.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>In the case of a parent, the increase shall be equal to 35 per centum of such portion of the deceased individual’s annuity.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>In the case of a child, the increase shall be equal to 15 per centum of such portion of the deceased individual’s annuity.</content> </clause> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>Whenever the total amount of the increases based on the deceased individual’s portion of the annuity under section 3(b) of this <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 630.</p></sidenote>Act as determined under subdivision (1) of this subsection for all survivors of a deceased employee is—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>less than an amount equal to 35 per centum of such portion of the deceased individual’s annuity, the total increase shall, before any deductions under section 2(g) of this Act, be increased proportionately until the total increase is equal to 35 per centum of such portion of the deceased individual’s annuity; or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>more than an amount equal to 80 per centum of such portion of the deceased individual’s annuity, the total increase shall, before any deductions under section 2(g) of this Act and before any reduction on account of age, be reduced proportionately until the total increase is equal to 80 per centum of such portion of the deceased individual’s annuity.</content> </clause> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>An annuity determined under this subsection for a month prior to the month in which application is filed, shall be reduced to any extent that may be necessary so that it will not render erroneous any annuity which, before the filing of such application, the Board has certified for payment for such prior month.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>If a widow or widower of a deceased employee is entitled to an annuity under section 2(a)(1) of this Act and if either such widow or widower or such deceased employee will have completed 10 years of service prior to January 1, 1975, the amount of the annuity of such widow or widower under subdivisions (1) through (3) of this subsection shall be increased by an amount equal to the amount, if any, by which (A) the widow’s or widower’s insurance annuity to which such widow or widower would have been entitled, upon attaining age 65, under <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231d">45 USC 231d</ref>.</p></sidenote>section 5(a) of the Railroad Retirement Act of 1937 as in effect on December 31, 1974 (without regard to the proviso of that section or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231b">45 USC 231b</ref>.</p></sidenote>the first proviso of section 3(e) of that Act) on the basis of the deceased employee’s remuneration and service prior to January 1, 1975, increased by the same percentage, or percentages, as widow’s and widower’s insurance benefits under section 202 of the Social Security <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402</ref>.</p></sidenote>Act are increased during the period from January 1, 1975, to the later of the date on which such widow’s or widower’s annuity under section 2(a)(1) of this Act began to accrue or the date on which such widow’s or widower’s annuity under section 2(d)(1) of this Act began to accrue, exceeds (B) the total of the annuity amounts to which such widow or widower was entitled (after any reductions pursuant to subsection (i)(2) of this section but before any deductions on account of work) under the preceding provisions of this subsection, subsection (f) of this section, and the amount determined under subsection (h) of this section before the proviso, as of the later of the date on which such widow’s or widower’s annuity under section 2(a)(1) of this Act began <page identifier="/us/stat/95/635">95 STAT. 635</page>to accrue or the date on which such widow’s or widower’s annuity under section 2(d)(1) of this Act began to accrue. If a widow or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231a">45 USC 231a</ref>.</p></sidenote>widower of a deceased employee is not entitled to an annuity under section 2(a)(1) of this Act or to an old-age insurance benefit or a disability insurance benefit under the Social Security Act, the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1305">42 USC 1305</ref>.</p></sidenote>amount of the annuity to which such widow or widower is entitled under this subsection shall not be less than an amount which would cause the total of the annuity amounts to which such widow or widower is entitled (before any deductions on account of work) under this subsection and subsection (f)(1) of this section to equal the total of the annuity amounts to which such widow or widower was entitled (or would have been entitled except for the provisions of sections 2(e) and 2(f) of this Act) as a spouse under subsections (a), (b), and (e)(3) of this section (after any reduction on account of age) in the month preceding the employee’s death. If a widow or widower of a deceased employee is entitled to an annuity under section 2(a)(1) of this Act or to an old-age insurance benefit or a disability insurance benefit under the Social Security Act, the amount of the annuity to which such widow or widower is entitled under this subsection shall not be less than an amount which would cause (A) the total of the annuity amounts to which such widow or widower is entitled (after any reductions pursuant to section 202(k) or 202(q) of the Social Security Act or subsection (i)(2) of this section but before any deductions on <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402</ref>.</p></sidenote>account of work) under this subsection and subsection (f) of this section to equal (B)(i) the total of the annuity amounts, if any, to which such widow or widower was entitled (or would have been entitled except for the provisions of sections 2(e) and 2(f) of this Act) as a spouse under subsections (a), (b), and (e) of this section (after any reduction on account of age) in the month preceding the employee s death less (ii), if such widow or widower is entitled to an old-age insurance benefit or a disability insurance benefit under the Social Security Act but was not entitled to such a benefit in the month preceding the employee’s death, the amount by which the annuity amount payable under subsection (a) of this section to such widow or widower as a spouse in the month preceding the employee’s death would have been reduced by reason of section 202(k) or 202(q) of the Social Security Act if such widow or widower had been entitled to an old-age insurance benefit or a disability insurance benefit under the Social Security Act in the month preceding the employee’s death in an amount equal to the amount of such benefit at the time such benefit first began to accrue to such widow or widower.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>This subsection shall not apply to the annuity of a widow, surviving divorced wife, or surviving divorced mother who is entitled to such annuity on the basis of the provisions of section 2(d)(1)(v) of this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>That portion of the annuity of a survivor of an individual determined under subdivisions (1) and (2) of this subsection shall be increased whenever, and by the same percentage or percentages as, the annuity of the individual would have been increased pursuant to section 3(g) of this Act if such individual were still living.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><chapeau>Section 4(h) of the Railroad Retirement Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231c">45 USC 231c</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(1)</quotedText>” after “<quotedText>(h)</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting after “<quotedText>during the period from January 1, 1975, to</quotedText>” the following “January 1, 1982 or, if earlier, to”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by inserting after “<quotedText>202(k) and 202(q) of the Social Security Act</quotedText>” the first time it appears the following: “<quotedText>and subsection (i)(2) of this section</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by adding at the end the following new subdivision: <page identifier="/us/stat/95/636">95 STAT. 636</page> <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Subdivision (1) of this subsection shall not apply to the annuity of a widow, surviving divorced wife, or surviving divorced mother who is entitled to such annuity on the basis of the provisions of <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 629.</p></sidenote>section 2(d)(1)(v) of this Act. No amount shall be payable to a person under subdivision (1) of this subsection unless the entitlement of such person to such amount had been determined prior to the date of the enactment of this subdivision.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231c">45 USC 231c</ref>.</p></sidenote> <chapeau class="inline">Section 4(i) of the Railroad Retirement Act of 1974 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>spouse</quotedText>” each place it appears in subdivision (1) and subdivision (2) and inserting in lieu thereof “<quotedText>spouse or divorced wife</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting “<quotedText>, after a reduction pursuant to section 2(c)(2)</quotedText>” after “<quotedText>shall</quotedText>” in subdivision (1);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out “<quotedText>wife’s or husband’s</quotedText>” in subdivision (1); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by inserting “<quotedText>(before any deduction on account of work)</quotedText>” after “<quotedText>insurance benefit</quotedText>” in subdivision (1).</content></paragraph> </subsection> </section> <section class="firstIndent1 fontsize10"><num value="1120"><inline class="smallCaps">Sec</inline>. 1120. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231d">45 USC 231d</ref>.</p></sidenote> <chapeau class="inline">Section 5(a) of the Railroad Retirement Act of 1974 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking “<quotedText>and</quotedText>” at the end of paragraph (ii),</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking, out the period at the end of paragraph (iii) and inserting “<quotedText>; and</quotedText>” in lieu thereof; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by adding at the end thereof the following new paragraphs: <quotedContent> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>in the case of an applicant otherwise entitled to an annuity under section 2(c)(4) or 2(d)(1)(v) of this Act, not earlier than the month an annuity would begin to accrue to such individual under such section if section 202(j)(1) and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402</ref>.</p></sidenote>section 202(j)(4) of the Social Security Act were applicable to this Act.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="v">“(v) </num><content>an annuity amount provided by section 3(h)(1) or 3(h)(2) shall not be paid to an individual otherwise eligible therefor for any month before the month such individual would be entitled, upon filing an application therefor, to an old-age insurance benefit or a disability insurance benefit <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s401">42 USC 401</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231b">45 USC 231b</ref>.</p></sidenote>under title II of the Social Security Act and an annuity amount provided by section 3(h)(3) or section 3(h)(4) shall not be paid to an individual otherwise eligible therefor for any month before the month such individual would be entitled, upon filing an application therefore, to an insurance benefit as a wife, husband, widow, or widower under title II of the Social Security Act;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="vi">“(vi) </num><content>an annuity amount provided by section 4(e)(1) or 4(e)(2) shall not be paid to a spouse otherwise eligible therefor for any month prior to the month such spouse would be entitled, upon filing an application therefor, to an old-age or disability insurance benefit under title II of the Social Security Act; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="vii">“(vii) </num><content>an annuity amount provided by section 4(e)(3) shall not be paid to a spouse otherwise eligible therefor for any month prior to the month such spouse would be entitled, upon filing an application therefor, to a wife’s or husband’s insurance benefit under title II of the Social Security Act.”.</content> </clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231d">45 USC 231d</ref>.</p></sidenote> <content class="inline">Section 5(b) of such Act is amended by inserting “<quotedText>title II of</quotedText>” after “<quotedText>may be entitled under this Act or</quotedText>” in the second sentence thereof.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 5(c)(3) of the Railroad Retirement Act of 1974 is amended by adding at the end thereof the following new sentence: “The entitlement of the divorced wife of an individual to an annuity under section 2(c) shall end on the last day of the month preceding the <page identifier="/us/stat/95/637">95 STAT. 637</page>month in which (A) the divorced wife or the individual dies or (B) the divorced wife remarries.”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Section 5(c) of such Act is amended by adding at the end thereof <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231d">45 USC 231d</ref>.</p></sidenote>the following new subdivision: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="9">“(9) </num><chapeau>No annuity shall accrue with respect to the calendar month in which an annuitant dies. In cases where an individual entitled to an annuity under this Act disappears, no annuity shall accrue to that individual with respect to any month until and unless such individual is shown, by evidence satisfactory to the Board, to have continued in life throughout such month, but—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>where an annuity would accrue for such month under section 2(a)(1) to an individual who had a current connection with <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231a">45 USC 231a</ref>.</p></sidenote>the railroad industry at the time of such individual’s disappearance, and under section 2(c) to such individual’s spouse, had such individual been shown to be alive during such month, such individual shall be deemed, for the purposes of benefits under section 2(d), to have died in the month in which such individual disappeared, and where an annuity would accrue for such month under section 2(a)(1) to an individual who did not have a current connection with the railroad industry at the time of such individual’s disappearance, and under section 2(c) to such individual’s spouse, had such individual been shown to be alive during such month, such individual shall be deemed, for purposes of benefits payable under section 2(c), to be alive during such month unless the death of such individual has been established or the annuity of the spouse of such individual is otherwise terminated under subsection (c)(3) of this section, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>if such individual is later determined to have been alive during any of such months, recovery of any benefits paid on the basis of such individual’s compensation under section 2(d) for the months in which such individual was not known to be alive, minus the total of the amounts that would have been paid as a spouse’s annuity during such months (treating the application for a widow’s or widower’s annuity as an application for a spouse’s annuity), shall be made in accordance with section 10.</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">For purposes of the payment of benefits under this Act, the death of an individual shall be presumed based on such individual’s unexplained absence of not less than seven years, except that whenever the death of an individual is so established, such individual shall be deemed to have died in the month in which such individual disappeared.”.</continuation> </paragraph> </quotedContent> </content> </subsection> </section> <section class="firstIndent1 fontsize10"><num value="1121"><inline class="smallCaps">Sec</inline>. 1121. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 6(a)(3) of the Railroad Retirement Act of 1974 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231e">45 USC 231e</ref>.</p></sidenote>is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>spouse</quotedText>” and inserting “<quotedText>spouse or divorced wife</quotedText>” in lieu thereof; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>spouse’s</quotedText>” and inserting “<quotedText>spouse’s or divorced wife’s</quotedText>” in lieu thereof.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 6(b)(2) of the Railroad Retirement Act of 1974 is amended by inserting “<quotedText>surviving divorced wife,</quotedText>” after “<quotedText>widow,</quotedText>” the first place it appears.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>Section 6(c) of the Railroad Retirement Act of 1974 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by adding the following new sentence at the end of subdivision (1): “After a lump sum with respect to the death of an employee is paid pursuant to an election filed with the Board under the provisions of this subsection, no further benefits shall be paid under this Act or the Social Security Act on the basis of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1305">42 USC 1305</ref>.</p></sidenote>such employee’s compensation and service under this Act, except that nothing in this Act or the Social Security Act shall operate <page identifier="/us/stat/95/638">95 STAT. 638</page>to deprive a widow, widower, or parent making such election of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s401">42 USC 401</ref>.</p></sidenote>any insurance benefit under title II of the Social Security Act to which such individual would have been entitled if the employee had not rendered service as an employee under this Act.”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting after “<quotedText>section 21 of the Railroad Retirement Act of 1937,</quotedText>” in the first sentence of subdivision (2) thereof the following: “<quotedText>any supplemental annuity payments made to the employee under section 2(b) of this Act or section 3(j) of the Railroad Retirement Act of 1937,</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out “<quotedText>spouse</quotedText>” the first place it appears in subdivision (2) and inserting in lieu thereof “<quotedText>spouse or divorced wife</quotedText>”.</content></paragraph> </subsection> </section> <section class="firstIndent1 fontsize10"><num value="1122"><inline class="smallCaps">Sec</inline>. 1122. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231f">45 USC 231f</ref>.</p></sidenote> <chapeau class="inline">Section 7(b) of the Railroad Retirement Act of 1974 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>wife</quotedText>” in subdivision (2)(B) and inserting in lieu thereof “<quotedText>wife or divorced wife</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>this Act and the</quotedText>” where it appears in the first sentence of subdivision (7) and inserting in lieu thereof “<quotedText>this Act, the Railroad Unemployment Insurance Act,</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 7(d) of such Act is amended by striking out “<quotedText>; or</quotedText>” at the end of paragraph (i) of subdivision (2) and inserting in lieu thereof: “<quotedText>or (C) bears a relationship to an employee which, by reason <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231b">45 USC 231b</ref>.</p></sidenote>of section 3(f)(3) of this Act, has been, or would be, taken into account in calculating the amount of the annuity of such employee; or</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 7(d)(2) of the Railroad Retirement Act of 1974 is amended by striking out “<quotedText>spouse</quotedText>” and inserting in lieu thereof “<quotedText>spouse or divorced wife</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 7(c) of the Railroad Retirement Act of 1974 is amended by striking out the period at the end of subdivision (1) and by inserting in lieu thereof the following: “, and payments of annuity <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231b/231c">45 USC 231b, 231c</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t46/s231">46 USC 231 note</ref>.</p></sidenote>amounts made under sections 3(h), 4(e), and 4(h) of this Act and under sections 204(a)(3), 204(a)(4), 206(3), and 207(3) of Public Law 93–445 shall be made from the Dual Benefits Payments Account. In any fiscal year, the total amounts paid under such sections shall not exceed the total sums appropriated to the Dual Benefits Payments <sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote>Account for that fiscal year. The Board shall prescribe regulations for allocation of annuity amounts which would without regard to such regulations be payable under sections 3(h), 4(e), and 4(h) of this Act and sections 204(a)(3), 204(a)(4), 206(3), and 207(3) of Public Law 93–445 so that the sums appropriated to the Dual Benefits Payments Account for a fiscal year so far as practicable, are expended in equal monthly installments throughout such fiscal year, and are distributed so that recipients are paid annuity amounts which bear the same ratio to the annuity amounts such recipients would have received but for such regulations as the ratio of the total sums appropriated to pay such annuity amounts bear to the total sums necessary to pay such annuity amounts without regard to such regulations. Nothwithstanding any other provision of law, the entitlement of an individual to an annuity amount under section 3(h), 4(e), or 4(h) of this Act or section 204(a)(3), 204(a)(4), 206(3), or 207(3) of Public Law 93–445 for any month in which the amount payable to such individual is allocated under the regulations prescribed by the Board under this subsection shall not exceed the amount so allocated for that month to such individual.”.</content> </subsection> </section> <section class="firstIndent1 fontsize10"><num value="1123"><inline class="smallCaps">Sec</inline>. 1123. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231i">45 USC 231i</ref>.</p></sidenote> <content class="inline">Section 10(a) of the Railroad Retirement Act of 1974 is amended by adding at the end thereof the following new sentence: “The Board shall have the authority to recover from any payment which would be made to an individual by the Board under section <page identifier="/us/stat/95/639">95 STAT. 639</page>7(b)(2) of this Act the amount of annuity payments made to such <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231f">45 USC 231f</ref>.</p></sidenote>individual which are erroneous because of such individual’s entitlement to monthly insurance benefits under title II of the Social Security Act”.</content> </section> <section class="firstIndent1 fontsize10"><num value="1124"><inline class="smallCaps">Sec</inline>. 1124. </num><subsection class="inline"><num value="a">(a) </num><content>Section 15(d) of the Railroad Retirement Act of 1974 is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231n">45 USC 231n</ref>.</p></sidenote>amended by striking out the first two sentences and inserting in lieu thereof the following: “<quotedText>There is hereby created an account in the Treasury of the United States to be known as the Dual Benefits Payments Account. There is hereby authorized to be appropriated to such account for each fiscal year beginning with the fiscal year ending September 30, 1982, such sums as are necessary to pay during such fiscal year the amounts of annuities estimated by the Board to be paid under sections 3(h), 4(e), and 4(h) of this Act and under sections 204(a)(3), 204(a)(4), 206(3), and 207(3) of Public Law 93–445. Not more than 30 days prior to each fiscal year beginning with the fiscal year ending September 30, 1982, the Board may request the Secretary of the Treasury to transfer from the Railroad Retirement Account to the credit of the Dual Benefits Payments Account any amount not exceeding one-twelfth of the amount which the Board has determined will be the amount of the appropriation to be made to the Dual Benefits Payments Account under the applicable Public Law making such appropriation for such fiscal year, and the Secretary of the Treasury shall make such transfer. Not more than 10 days after the funds appropriated to the Dual Benefits Payments Account for each such fiscal year are received into such Account, the Board shall request the Secretary of the Treasury to retransfer from the Dual Benefits Payments Account to the credit of the Railroad Retirement Account an amount equal to the amount transferred to the Dual Benefits Payments Account prior to such fiscal year under the preceding sentence, together with such additional amount determined by the Board to be equal to the loss of interest to the Railroad Retirement Account resulting from such transfer, and the Secretary of the Treasury shall make such retransfer.</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 15(e) of the Railroad Retirement Act of 1974 is amended by inserting “<quotedText>, the Dual Benefits Payments Account</quotedText>” after “<quotedText>Railroad Retirement Account</quotedText>” in the first sentence thereof.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 15(g) of the Railroad Retirement Act of 1974 is amended by striking out the period at the end of the first sentence and inserting in lieu thereof the following: “<quotedText>, and the Dual Benefits Payments Account.</quotedText>”.</content> </subsection> </section> <section class="firstIndent1 fontsize10"><num value="1125"><inline class="smallCaps">Sec</inline>. 1125. </num><content>Section 18(2) of the Railroad Retirement Act of 1974 is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231q">45 USC 231q</ref>.</p></sidenote>amended by inserting “<quotedText>and section 216(i)</quotedText>” immediately after “<quotedText>203</quotedText>”.</content> </section> <section class="firstIndent1 fontsize10"><num value="1126"><inline class="smallCaps">Sec</inline>. 1126. </num><subsection class="inline"><num value="a">(a) </num><content>Not later than October 1, 1982, the President shall <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231n">45 USC 231n note</ref>.</p></sidenote>analyze options that will assure the long-term financial integrity of the railroad retirement system and report to the Congress the results of such analysis, together with recommendations with respect to such options and such comments as may have been submitted by representatives of railroad labor and management.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The Railroad Retirement Act of 1974 is amended by adding at the end thereof the following: <quotedContent> <section> <heading class="centered smallCaps">“benefit preservation</heading><num value="22">“<inline class="smallCaps">Sec</inline>. 22. </num><subsection class="inline"><num value="a">(a) </num><chapeau>In any fiscal year in which the Board determines that <sidenote><p class="indent0 firstIndent0 fontsize8">Report to President, Speaker of the House, and President of the Senate.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231u">45 USC 231u</ref>.</p></sidenote>general revenue borrowing authority available under this Act will be used to borrow an amount equal to or greater than fifty percent of the total amount available under such borrowing authority for that fiscal year, the Board shall, on or before April 1 of that year, report to the <page identifier="/us/stat/95/640">95 STAT. 640</page>President, the Speaker of the House, and the President of the Senate, in writing—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the aggregate amount it will need to borrow for that fiscal year and the aggregate amount it is authorized to borrow for that fiscal year;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the first fiscal year during which benefits under this Act must be reduced, in the absence of any adjustments, because insufficient funds (including any general revenue borrowing authority under this Act) would preclude payment of full benefits (other than benefits payable from the Dual Benefits Payments Account) for every month in such fiscal year;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>the first fiscal year during which the Board would recommend suspension of the authority to borrow contained in section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s360">45 USC 360</ref>.</p></sidenote>10(d) of the Railroad Unemployment Insurance Act, in order to prevent depletion of the Railroad Retirement Account; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>the amount, if any, of adjustments (stated in terms of percentage of taxable payroll), and any other changes such as cash flow adjustments, necessary to preserve the financial solvency of the Railroad Retirement Account, if such adjustments were effective at the beginning of the next succeeding fiscal year.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10"><sidenote><p class="indent0 firstIndent0 fontsize8">Publication in Federal Register.</p></sidenote>The Board shall, not less than 20 nor more than 30 days after the submission of a written report under this subsection, publish such report in the Federal Register.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>Not later than 180 days after the publication in the Federal Register of any Board report referred to in subsection (a) of this section which states an amount of adjustments (in terms of percentage of taxable payroll) necessary to preserve the financial solvency of the railroad retirement account—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>representatives of railroad employees and carriers shall, jointly or separately, submit to the President, the Speaker of the House, and the President of the Senate, funding proposals designed to preserve the financial solvency of the Railroad Retirement Account; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Recommendations.</p></sidenote> <content class="inline">the President shall submit to the Speaker of the House and the President of the Senate such recommendations as he may deem appropriate with respect to the preservation of the Railroad Retirement Account, including a specific proposal to assure continuous payments of social security equivalent benefits by separating the social security equivalent benefits from industry pension equivalent benefits payable under this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Publication in Federal Register.</p></sidenote> <chapeau class="inline">Not later than 180 days after the submission of a written report under subsection (a) of this section which states the first fiscal year during which benefits under this Act must be reduced because insufficient funds would preclude payment of full benefits for every month of that year, the Board shall issue and publish in the Federal Register such regulations as may be necessary which shall be designed to—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>provide a constant level of benefits at the maximum level possible for every month of that fiscal year; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>provide that no individual shall receive less during that fiscal year than the amount otherwise payable if the employee’s service as an employee after December 31, 1936, had been <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1305">42 USC 1305</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231b/231c">45 USC 231b, 231c</ref>.</p></sidenote>covered under the Social Security Act, minus the amount of any reduction required under section 3(m) or 4(i) of this Act.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">Unless otherwise provided by law enacted after the date of enactment of this section, or by a later report filed by the Board under subsection (a) of this section, regulations issued by the Board under this subsection shall apply beginning with the fiscal year designated by <page identifier="/us/stat/95/641">95 STAT. 641</page>the Board in its written report under subsection (a) of this section. Any Board regulation which becomes effective under this subsection may be modified, rescinded, or superseded in the same manner and to the same extent as in the case of any other Board regulation issued under authority of this Act.”.</continuation> </subsection> </section> </quotedContent> </content> </subsection> </section> <section class="firstIndent1 fontsize10"><num value="1127"><inline class="smallCaps">Sec</inline>. 1127. </num><subsection class="inline"><num value="a">(a) </num><content>Section 15(b) of the Railroad Retirement Act of 1974 is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231n">45 USC 231n</ref>.</p></sidenote>amended by inserting “<quotedText>(1)</quotedText>” after “<quotedText>(b)</quotedText>” and by inserting at the end thereof the following new subdivision: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>In any month when the Board finds that the balance in the Railroad Retirement Account is insufficient to pay annuity amounts due to be paid during the following month, the Board shall report to the Secretary of the Treasury the additional amount of money necessary in order to make such annuity payments, and the Secretary shall transfer to the credit of the Railroad Retirement Account such additional amount upon receiving such report from the Board. The total amount of money outstanding to the Railroad Retirement Account from the general fund at any time during any fiscal year shall not exceed the total amount of money the Board and the Trustees of the Social Security Trust Fund estimate will be transferred to the Railroad Retirement Account pursuant to section 7(c)(2) of this Act with respect to such fiscal year. Whenever the Board <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231f">45 USC 231f</ref>.</p></sidenote>determines that the sums in the Railroad Retirement Account are sufficient to pay annuity amounts, the Board shall request the Secretary of the Treasury to retransfer to the general fund from the Railroad Retirement Account all or any part of the amount outstanding, and the Secretary of the Treasury shall make such retransfer of the amount requested. Not later than 10 days after a transfer to the Railroad Retirement Account under section 7(c)(2) of this Act, any amount of money outstanding to the Railroad Retirement Account from the general fund under this subdivision shall be retransferred in accordance with this subdivision. Any amount retransferred shall include an amount of interest computed at a rate determined in accordance with the following two sentences: The rate of interest payable with respect to an amount outstanding for any month shall be equal to the average investment yield for the most recent auction (before such month) of United States Treasury bills with maturities of 52 weeks, deeming any amount outstanding at the beginning of a month to have been borrowed at the beginning of such month. For this purpose the amount of interest computed in accordance with the preceding sentence but not repaid by the end of such month shall be added to the amount outstanding at the beginning of the next month.”.</content></paragraph> </quotedContent> </content> </subsection> </section> <section class="firstIndent1 fontsize10"><num value="1128"><inline class="smallCaps">Sec</inline>. 1128. </num><subsection class="inline"><num value="a">(a) </num><content>Section 5(f) of the Railroad Unemployment Insurance Act is amended by striking out “<quotedText>fifteen</quotedText>” and by inserting in lieu <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s355">45 USC 355</ref>.</p></sidenote>thereof “<quotedText>thirty</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 8(f) of the Railroad Unemployment Insurance Act is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s358">45 USC 358</ref>.</p></sidenote>amended by striking out “<quotedText>0.25</quotedText>” and inserting in lieu thereof: “<quotedText>0.5</quotedText>”.</content> </subsection> </section> <section class="firstIndent1 fontsize10"><num value="1129"><inline class="smallCaps">Sec</inline>. 1129. </num><subsection class="inline"><num value="a">(a) </num><content>Except as otherwise provided in this section, the <sidenote><p class="indent0 firstIndent0 fontsize8">Effective dates.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231">45 USC 231 note</ref>.</p></sidenote>amendments made by this subtitle shall take effect October 1, 1981, and shall apply only with respect to annuities awarded on or after that date.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>The amendment made by section 1116(a) of this Act shall take effect October 1, 1981, except that the years of service of an individual shall not be considered less after enactment of this Act for any individual who files an application before April 1, 1982 than such individual had during the month of September 1981.</content></paragraph> <page identifier="/us/stat/95/642">95 STAT. 642</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The amendments made by sections 1116(b)(1), 1118(c)(2), 1119(b)(5), 1119(c), 1119(h)(3), 1119(i)(3), 1120(a), 1120(d), 1121(c)(1), 1121(c)(2), 1123, and 1125 of this Act shall take effect January 1, 1975.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The first sentence added to section 1(o) of the Railroad Retirement <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231">45 USC 231</ref>.</p></sidenote>Act of 1974 by section 1116(b)(2) shall take effect October 1, 1981, and shall apply only with respect to individuals who did not die before that date and who ceased rendering service as an employee <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231t">45 USC 231t</ref>.</p></sidenote>under the Railroad Retirement Act of 1974 on or after October 1, 1975 or were on leave of absence or furlough on October 1, 1975. The second sentence added to section 1(o) of the Railroad Retirement Act of 1974 by section 1116(b)(2) shall take effect October 1, 1981.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The amendment made by section 1117(a) of this Act shall take effect October 1, 1981, and shall apply only with respect to individuals whose supplemental annuity closing date under section 2(b) of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231a">45 USC 231a</ref>.</p></sidenote>Railroad Retirement Act of 1974 before the effective date of the amendment to such section by this Act did not occur before October 1, 1981.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>The amendments made by section 1119(b)(1) shall not apply with respect to annuities awarded on the basis of employee annuities awarded before October 1, 1981.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><paragraph class="inline"><num value="1">(1) </num><content>The amendments made by sections 1118(e)(3), 1119(d)(2), 1119(h)(1), and 1119(h)(4) of this Act shall take effect on the date of the enactment of this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The amendment made by section 1118(d) of this Act shall apply with respect to annuity increases which become effective on or after the date described in the next sentence. The date referred to in the last preceding sentence is the later of October 1, 1981 and the date (after July 1, 1981) on which there is an increase in the rate of any tax imposed under chapter 22 (relating to railroad retirement tax) of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3201">26 USC 3201 <i>et seq</i></ref>.</p></sidenote>Internal Revenue Code of 1954. For the purposes of the amendment made by section 1118(d), with respect to annuities awarded before October 1, 1981, the annuity portions computed under subsections (b) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231b">45 USC 231b</ref>.</p></sidenote>and (d) of section 3 of the Railroad Retirement Act of 1974 as in effect before October 1, 1981, shall be treated as a portion of an annuity computed under section 3(b) of such Act as amended by this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The amendment made by section 1118(a) of this Act shall take effect on the later of October 1, 1981, and the date (after July 1, 1981) on which there is an increase in the rate of any tax imposed under chapter 22 (relating to railroad retirement tax) of the Internal Revenue Code of 1954, and shall apply only with respect to annuities awarded on or after the date of that taking effect.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 633.</p></sidenote> <content class="inline">Section 4(g) of the Railroad Retirement Act of 1974 as amended by this Act (except subdivisions (5) and (6) of such section 4(g)) shall take effect October 1, 1981, with respect to awards made on or after that date in cases in which the employee did not begin receiving an annuity under section 2(a)(1) of the Railroad Retirement Act of 1974 before October 1, 1981, and did not die before that date, and to all awards made on or after October 1, 1986. In all other awards made on or after October 1, 1981, and before October 1, 1986, for purposes of determining the initial annuity amounts only, the provisions of section 4(g) of the Railroad Retirement Act of 1974, as in effect before amendment by this Act shall be applicable. Initial annuity amounts determined under the preceding sentence shall be increased only by the same percentage, or percentages, as an employee’s annuity amount determined under section 3(b) of the Railroad Retirement Act of 1974 is increased under section 3(g) of the Railroad Retirement Act of 1974 on or after the date on which such initial annuity amount began to accrue. Annuity amounts determined under section 4(g) of <page identifier="/us/stat/95/643">95 STAT. 643</page>the Railway Retirement Act of 1974 before amendment by this Act or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231c">45 USC 231c</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231">45 USC 231 note</ref>.</p></sidenote>under section 207(2) of Public Law 93–445 shall be increased only by the same percentage, or percentages, as an employee’s annuity amount determined under section 3(b) of the Railroad Retirement Act of 1974 is increased under section 3(g) of the Railroad Retirement <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231b">45 USC 231b</ref>.</p></sidenote>Act of 1974 on or after October 1, 1981. Section 4(g)(5) and 4(g)(6) of the Railroad Retirement Act of 1974, as amended by this Act, shall take effect on October 1, 1981.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>The amendments made by sections 1118(b), 1118(g), 1120(b), 1122(a)(2), 1122(b)(1), 1122(c), 1124, 1126, and 1127 of this Act shall take effect October 1, 1981.</content> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><content>The amendments made by sections 1117(e)(2), 1117(f), 1118(h)(2), and 1119(i)(4) shall take effect January 1, 1982.</content> </subsection> </section> </subtitle> <subtitle><num value="E">Subtitle E— </num><sidenote><p class="indent0 firstIndent0 fontsize8">Northeast Rail Service Act of 1981.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s1101">45 USC 1101 note</ref>.</p></sidenote> <heading>Conrail</heading> <section class="firstIndent1 fontsize10"><num value="1131"><inline class="smallCaps">Sec</inline>. 1131. </num><content>This subtitle may be cited as the “<shortTitle role="subtitle">Northeast Rail Service Act of 1981</shortTitle>”. <toc> <heading class="centered">TABLE OF CONTENTS</heading> <referenceItem role="part"><designator class="centered">PART 1—</designator><label class="centered">GENERAL PROVISIONS</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1132. Findings.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1133. Purpose.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1134. Goals.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1135. Definitions.</label></referenceItem> <referenceItem role="part"><designator class="centered">PART 2—</designator><label class="centered">TRANSFER OF RAIL SERVICE RESPONSIBILITIES</label></referenceItem> <referenceItem role="subpart"><designator class="centered">Subpart A—</designator><label class="centered">Transfer of Conrail Commuter Services</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1136. End of Conrail obligation.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1187. Establishment of Amtrak Commuter.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1138. Prohibition of cross-subsidization.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1139. Authorization of appropriations.</label></referenceItem> <referenceItem role="subpart"><designator class="centered">Subpart B—</designator><label class="centered">Additional Financing of Conrail</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1140. Additional financing of Conrail.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1141. Organization and structure of Conrail.</label></referenceItem> <referenceItem role="subpart"><designator class="centered">Subpart C—</designator><label class="centered">Transfer of Freight Service Responsibilities</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1142. Transfer of freight service.</label></referenceItem> <referenceItem role="part"><designator class="centered">PART 3—</designator><label class="centered">PROTECTION FOR CONRAIL, EMPLOYEES</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1143. Protection for Conrail Employees.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1144. Repeals.</label></referenceItem> <referenceItem role="part"><designator class="centered">PART 4—</designator><label class="centered">TERMS OF LABOR ASSUMPTION</label></referenceItem> <referenceItem role="subpart"><designator class="centered">Subpart A—</designator><label class="centered">Passenger Employees</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1145. Transfer of passenger service employees.</label></referenceItem> <referenceItem role="subpart"><designator class="centered">Subpart B—</designator><label class="centered">Freight Employees</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1146. Labor transfer.</label></referenceItem> <referenceItem role="part"><designator class="centered">PART 5—</designator><label class="centered">UNITED STATES RAILWAY ASSOCIATION</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1147. Organization of USRA.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1148. Functions of USRA.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1149. Access to information.</label></referenceItem> <page identifier="/us/stat/95/644">95 STAT. 644</page> <referenceItem role="section"><designator>Sec.</designator> <label>1150. United States Railway Association reports.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1151. USRA authorization.</label></referenceItem> <referenceItem role="part"><designator class="centered">PART 6—</designator><label class="centered">MISCELLANEOUS PROVISIONS</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1152. Judicial review.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1153. Transfer taxes and fees; recordation.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1154. Satisfaction of claims.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1155. Expedited supplemental transactions.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1156. Abandonments.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1157. Amendment to the Railway Labor Act.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1158. Concerted economic action.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1159. Construction and effect of certain provisions.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1160. Labor authorization.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1161. Light density rail service.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1162. Rehabilitation and improvement financing.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1163. Northeast Corridor cost dispute.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1164. Commission proceedings.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1165. Intercity passenger service employees.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1166. Trackage rights.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1167. Technical amendments.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1168. Applicability of other laws.</label></referenceItem> <referenceItem role="section"><designator>Sec.</designator> <label>1169. Effective date.</label></referenceItem> </toc> </content> </section> <part><num value="1">PART 1—</num><heading>GENERAL PROVISIONS</heading> <section> <heading class="centered smallCaps">findings</heading><num value="1132"><inline class="smallCaps">Sec</inline>. 1132. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s1101">45 USC 1101</ref>.</p></sidenote> <chapeau class="inline">The Congress finds and declares that—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the processes set in motion by the Regional Rail Reorganization <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s701">45 USC 701 note</ref>.</p></sidenote>Act of 1973 have failed to create a self-sustaining railroad system in the Northeast region of the United States and have cost United States taxpayers many billions of dollars over original estimates;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>current arrangements for the provision of rail freight and commuter service in the Northeast and Midwest regions of the United States are inadequate to meet the transportation needs of the public and the needs of national security;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>although the Federal Government has provided billions of dollars in assistance for Conrail and its employees, the Federal interest in ensuring the flow of interstate commerce through rail service in the private sector has not been achieved, and the protection of interstate commerce requires Federal intervention to preserve essential rail service in the private sector;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>the provisions for protection of employees of bankrupt railroads contained in the Regional Rail Reorganization Act of 1973 have resulted in the payment of benefits far in excess of levels anticipated at the time of enactment, have imposed an excessive fiscal burden on the Federal taxpayer, and are now an obstacle to the establishment of improved rail service and continued rail employment in the Northeast region of the United States; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>since holding Conrail liable for employee protection payments would destroy its prospects of becoming a profitable carrier and further injure its employees, an alternative employee protection system must be developed and funded.</content></paragraph> </section> <section> <heading class="centered smallCaps">purpose</heading><num value="1133"><inline class="smallCaps">Sec</inline>. 1133. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s1102">45 USC 1102</ref>.</p></sidenote> <chapeau class="inline">It is therefore declared to be the purpose of the Congress in this subtitle to provide for—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the removal by a date certain of the Federal Government’s obligation to subsidize the freight operations of Conrail;</content></paragraph> <page identifier="/us/stat/95/645">95 STAT. 645</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>transfer of Conrail commuter service responsibilities to one or more entities whose principal purpose is the provision of commuter service; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>an orderly return of Conrail freight service to the private sector.</content></paragraph> </section> <section> <heading class="centered smallCaps">goals</heading><num value="1134"><inline class="smallCaps">Sec</inline>. 1134. </num><chapeau>It is the goal of this subtitle to provide Conrail the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1103">42 USC 1103</ref>.</p></sidenote>opportunity to become profitable through the achievement of the following objectives:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <heading><inline class="smallCaps">Nonagreement personnel</inline>.—</heading><subparagraph class="inline"><num value="A">(A) </num><content>Employees who are not subject to collective bargaining agreements (hereafter in this section referred to as “nonagreement personnel”) should forego wage increases and benefits in an amount proportionately equivalent to the amount foregone by agreement employees pursuant to paragraph (4) of this section, adjusted annually to reflect inflation.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>After May 1, 1981, the number of nonagreement personnel should be reduced proportionately to any reduction in agreement employees (excluding reductions pursuant to the termination program under section 702 of the Regional Rail Reorganization Act of 1973). <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 662.</p></sidenote></content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <heading><inline class="smallCaps">Suppliers</inline>.—</heading><content>To facilitate the orderly movement of goods in interstate commerce, materials and services should continue to be available to Conrail, under normal business practices, including the provision of credit and normal financing arrangements.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <heading><inline class="smallCaps">Shippers</inline>.—</heading><content>Conrail should utilize the revenue opportunities available to it under the Staggers Rail Act of 1980 and subtitle IV <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s10101">49 USC 10101 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s10101">49 USC 10101 <i>et seq</i></ref>.</p></sidenote>of title 49, United States Code.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <heading><inline class="smallCaps">Agreement employees</inline>.—</heading><subparagraph class="inline"><num value="A">(A) </num><content>Conrail should enter into collective bargaining agreements with its employees which would reduce Conrail’s costs in an amount equal to $200,000,000 a year, beginning April 1, 1981, adjusted annually to reflect inflation.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Agreements under this subparagraph may provide for reductions in wage increases and for changes in fringe benefits common to agreement employees, including vacations and holidays.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>The cost reductions required under this subparagraph in the first year of the agreement may be deferred, but the aggregate cost reductions should be no less than an average of $200,000,000 per year for each of the first three one-year periods beginning April 1, 1981.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>The amount of cost reductions provided under this paragraph shall be calculated by subtracting the cost of an agreement entered into under this paragraph from (i) the cost that would otherwise result from the application of the national agreement reached by railroad industry and its employees, or (ii) until such national agreement is reached, the cost which the United States Railway Association estimates would result from the application of such a national agreement.</content></subparagraph> </paragraph> </section> <section> <heading class="centered smallCaps">definitions</heading><num value="1135"><inline class="smallCaps">Sec</inline>. 1135. </num><subsection class="inline"><num value="a">(a) </num><chapeau>As used in this subtitle, unless the context otherwise <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s1104">45 USC 1104</ref>.</p></sidenote>requires, the term:</chapeau> <page identifier="/us/stat/95/646">95 STAT. 646</page> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>“Amtrak” means the National Railroad Passenger Corporation created under title III of the Rail Passenger Service Act (45 U.S.C. 541 et seq.).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>“Commission” means the Interstate Commerce Commission.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>“Commuter authority” means any State, local, or regional authority, corporation, or other entity established for purposes of providing commuter service, and includes the Metropolitan Transportation Authority, the Connecticut Department of Transportation, the Maryland Department of Transportation, the Southeastern Pennsylvania Transportation Authority, the New Jersey Transit Corporation, the Massachusetts Bay Transportation Authority, the Port Authority Trans-Hudson Corporation, any successor agencies, and any entity created by one or more such agencies for the purpose of operating, or contracting for the operation of, commuter service.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>“Commuter service” means short-haul rail passenger service operated in metropolitan and suburban areas, whether within or across the geographical boundaries of a State, usually characterized by reduced fare, multiple-ride, and commutation tickets, and by morning and evening peak period operations.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>“Conrail” means the Consolidated Rail Corporation created under title III of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 741 et seq.).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>“Rail carrier” means a common carrier engaged in interstate or foreign commerce by rail subject to subtitle IV of title 49, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s10101">49 USC 10101 <i>et seq</i></ref>.</p></sidenote>United States Code.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>“Secretary” means the Secretary of Transportation.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>“Special court” means the judicial panel established under section 209 of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 719).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s702">45 USC 702</ref>.</p></sidenote> <chapeau class="inline">Section 102 of the Regional Rail Reorganization Act of 1973 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting after paragraph (2) the following new paragraphs: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>‘Commuter authority’ means any State, local, or regional authority, corporation, or other entity established for purposes of providing commuter service, and includes the Metropolitan Transportation Authority, the Connecticut Department of Transportation, the Maryland Department of Transportation, the Southeastern Pennsylvania Transportation Authority, the New Jersey Transit Corporation, the Massachusetts Bay Transportation Authority, the Port Authority Trans-Hudson Corporation, any successor agencies, and any entity created by one or more such agencies for the purpose of operating, or contracting for the operation of, commuter service;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>‘Commuter service’ means short-haul rail passenger service operated in metropolitan and suburban areas, whether within or across the geographical boundaries of a State, usually characterized by reduced fare, multiple-ride, and commutation tickets, and by morning and evening peak period operations;”; and</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by redesignating paragraphs (3) through (19) as paragraphs (5) through (21), respectively.</content></paragraph> </subsection> </section> </part> <page identifier="/us/stat/95/647">95 STAT. 647</page> <part><num value="2">PART 2—</num><heading>TRANSFER OF RAIL SERVICE RESPONSIBILITIES</heading> <subpart><num value="A">Subpart A—</num><heading>Transfer of Conrail Commuter Services</heading> <section> <heading class="centered smallCaps">end of conrail obligation</heading><num value="1136"><inline class="smallCaps">Sec</inline>. 1136. </num><content>Notwithstanding any other provision of law or contract, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s744a">45 USC 744a</ref>.</p></sidenote>Conrail shall be relieved of any legal obligation to operate commuter service on January 1, 1983.</content> </section> <section> <heading class="centered smallCaps">establishment of amtrak commuter</heading><num value="1137"><inline class="smallCaps">Sec</inline>. 1137. </num><content>The Rail Passenger Service Act (45 U.S.C. 501 et seq.) is amended by inserting immediately after title IV thereof the following new title: <quotedContent> <title><num value="V">“TITLE V—</num><heading>AMTRAK COMMUTER SERVICES</heading> <section><num value="501">“SEC. 501. </num> <heading>ESTABLISHMENT OF AMTRAK COMMUTER.</heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s581">45 USC 581</ref>.</p></sidenote> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><content>There shall be established, no later than November 1, 1981, a wholly-owned subsidiary of the Corporation to be known as the Amtrak Commuter Services Corporation (hereafter in this Act referred to as ‘Amtrak Commuter’).</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Amtrak Commuter shall not be an agency or instrumentality of the Federal Government. Amtrak Commuter shall be subject to the provisions of this Act and, to the extent not inconsistent with this Act, to the District of Columbia Business Corporation Act. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/dcc/29/901">D.C. Code 29–901</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Amtrak Commuter shall be a contract operator of commuter service on behalf of the commuter authorities that contract with Amtrak Commuter for the operation of commuter service under this title. Amtrak Commuter shall have no common carrier obligation to operate either passenger or freight service.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><content>Amtrak Commuter shall not be subject to the jurisdiction of the Commission under chapter 105 of title 49, United States Code, but <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s10501">49 USC 10501 <i>et seq</i></ref>.</p></sidenote>it shall (treated as a separate rail carrier) be subject to the same laws and regulations with respect to safety and with respect to the representation of its employees for purposes of collective bargaining, the handling of disputes between carriers and their employees, employee retirement, annuity, and unemployment systems, and other dealings with its employees as any rail carrier providing transportation subject to the jurisdiction of the Commission under such chapter 105.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Amtrak Commuter shall not be subject to any State or other law relating to the transportation of passengers by railroad insofar as such law relates to rates, routes, or service, including any modification or discontinuance thereof.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Amtrak Commuter shall be exempt from the payment of taxes to the same extent as the Corporation is exempt under section 306(n) of this Act. <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 692.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>The provisions of section 10 of the Clayton Act (15 U.S.C. 20) shall not apply to transactions between Amtrak Commuter and the Corporation.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>The Board of Directors of the Corporation shall be the incorporators of Amtrak Commuter and shall take whatever steps are necessary to establish Amtrak Commuter, including filing articles of incorporation.</content> </subsection> </section> <page identifier="/us/stat/95/648">95 STAT. 648</page> <section><num value="502">“SEC. 502. </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s582">45 USC 582</ref>.</p></sidenote>DIRECTORS AND OFFICERS.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Amtrak Commuter shall have a Board of Directors as follows:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>The President of Amtrak Commuter, ex officio.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>One member of the Board of Directors of the Corporation who was selected as a representative of commuter authorities contracting with Amtrak Commuter for the operation of commuter service.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>Two members selected by the Board of Directors of the Corporation.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><chapeau>Two members from commuter authorities as follows:</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>During the period prior to the commencement of the operation of commuter service by Amtrak Commuter, such members shall be selected by commuter authorities for which the Consolidated Rail Corporation (hereafter in this title referred to as ‘Conrail’) operates commuter service <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s701">45 USC 701 note</ref>.</p></sidenote>under the Regional Rail Reorganization Act of 1973.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>Beginning January 1, 1983, such members shall be selected by commuter authorities for which Amtrak Commuter operates commuter service pursuant to this title, except that if Amtrak Commuter operates commuter service for only one commuter authority, only one member shall be selected under this clause.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>Except as otherwise provided in this section, members of the Board of Directors of Amtrak Commuter shall serve terms of two years, and any vacancy in the membership of the Board shall be filled in the same manner as in the case of the original selection.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>The Board shall elect one of its members annually to serve as Chairman.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>Each member of the Board shall receive compensation and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s543">45 USC 543</ref>.</p></sidenote>reimbursement in accordance with section 303(a)(5) of this Act.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>The provisions of section 303 (b) and (d) of this Act shall apply to Amtrak Commuter, except that references to the Corporation shall be read as though they referred to Amtrak Commuter.</content> </subsection> </section> <section><num value="503">“SEC. 503. </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s583">45 USC 583</ref>.</p></sidenote>GENERAL POWERS OF AMTRAK COMMUTER.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Amtrak Commuter is authorized to own, manage, operate, or contract for the operation of commuter service; to conduct research and development related to its mission; and to acquire by construction, purchase, or gift, or to contract for the use of, physical facilities, equipment, and devices necessary to commuter service operations.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Amtrak Commuter shall, to the extent consistent with this Act and with agreements with commuter authorities, directly operate and control all aspects of its commuter service.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>To carry out its functions and purposes, Amtrak Commuter shall have the usual powers conferred upon a stock corporation by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/dcc/29/901">D.C. Code 29–901</ref>.</p></sidenote>the District of Columbia Business Corporation Act.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Amtrak Commuter is authorized to issue common stock to the Corporation.</content> </subsection> </section> <section><num value="504">“SEC. 504. </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s584">45 USC 584</ref>.</p></sidenote>COMMUTER SERVICE.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><content>Amtrak Commuter is authorized to operate commuter service under an agreement with a commuter authority. Effective January 1, 1983, any commuter service operated by Amtrak Commuter under an agreement with a commuter authority shall be operated solely pursuant to the provisions of this section.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Amtrak Commuter shall operate commuter service which Conrail was obligated to provide on the effective date of this title <page identifier="/us/stat/95/649">95 STAT. 649</page>under section 303(b)(2) or 304(e) of the Regional Rail Reorganization Act of 1973, and may operate any other commuter service, if the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s743/744">45 USC 743, 744</ref>.</p></sidenote>commuter authority for which such service is to be operated offers to provide a commuter service operating payment which is designed to cover the difference between the revenue attributable to the operation of such service and the avoidable costs of operating such service (including the avoidable cost of any capital improvements necessary to operate such service) together with a reasonable return on the value.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Any commuter authority making an offer under this subsection shall demonstrate that such commuter authority has acquired, leased, or otherwise obtained access to all rail properties necessary to provide such additional commuter service.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Any additional manpower requirements shall be satisfied through existing seniority arrangements as agreed to in the implementing agreement negotiated pursuant to section 508 of this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Any offer to provide a commuter service operating payment under subsection (b) of this section shall be made in accordance with regulations issued by the Rail Services Planning Office pursuant to section 205(d)(5)(A) and (6) of the Regional Rail Reorganization Act of 1973. Such Office may revise and update such regulations as may be <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s715">45 USC 715</ref>.</p></sidenote>necessary to carry out the provisions of this section.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Amtrak Commuter may discontinue commuter service provided under this section upon 60 days’ notice if—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>a commuter authority does not offer a commuter service operating payment in accordance with subsection (b) of this section; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>an applicable commuter service operating payment is not paid when it is due.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The necessary contents of the notice required under this subsection shall be determined pursuant to regulations issued by the Rail Services Planning Office.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><content>Notwithstanding any other provision of law, compensation to the Corporation or Amtrak Commuter for right-of-way related costs for service over the Northeast Corridor and other properties owned by the Corporation shall be determined in accordance with the methodology determined by the Commission or agreed upon by the parties pursuant to section 1163 of the Northeast Rail Service Act of 1981. <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 685.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><content>Amtrak Commuter shall not be subject to any lease or agreement with a commuter authority under which financial support was being provided on January 2, 1974, for the continuation of rail passenger service, except that the Corporation and Conrail shall retain appropriate trackage rights (for passenger and freight operations respectively) over any rail properties owned or leased by such commuter agency. Compensation for such trackage rights shall be just and reasonable.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><content>Notwithstanding any other provision of this section, Amtrak Commuter is not obligated to provide commuter service if a commuter authority operates the service itself or contracts for the provision of such service by an operator other than Amtrak Commuter. In any such case, Amtrak Commuter shall, where appropriate, provide the commuter authority or such other operator with access to the rail properties needed to operate such service.</content> </subsection> <subsection class="indent0 fontsize10"><num value="h">“(h) </num><content>Amtrak Commuter and the Corporation shall, to the maximum extent practicable, enter into agreements for purposes of avoiding duplication of employee functions and voluntarily establishing a consolidated work force.</content> </subsection> </section> <page identifier="/us/stat/95/650">95 STAT. 650</page> <section><num value="505">“SEC. 505. </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s585">45 USC 585</ref>.</p></sidenote>NORTHEAST CORRIDOR COORDINATION.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><chapeau>The Board of Directors of Amtrak Commuter shall develop and recommend to the Corporation—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>policies which ensure equitable access to the Northeast Corridor, taking into account the need for equitable access by commuter and intercity service and the requirements of section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s562">45 USC 562</ref>.</p></sidenote>402(e) of this Act; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>equitable policies for the Northeast Corridor with respect to dispatching, public information, maintenance at equipment and facilities, major capital facility investments, and harmonization of equipment acquisitions, fares, tariffs, and schedules.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>The Board of Directors of Amtrak Commuter may recommend to the President and Board of Directors of the Corporation such actions as are necessary to resolve differences of opinions regarding operations (among or between the Corporation, Amtrak Commuter, other railroads, commuter authorities, and other State, local, and regional agencies responsible for the provision of commuter rail, rapid rail, or rail freight service), with respect to all matters except those conferred on the Commission in section 402(a) of this Act.</content> </subsection> </section> <section><num value="506">“SEC. 506. </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8">Notification.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s586">45 USC 586</ref>.</p></sidenote>PROPERTY TRANSFER.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><content>Not later than April 1, 1982, each commuter authority shall notify Amtrak Commuter and Conrail whether it intends to operate its own commuter service or to contract with Amtrak Commuter for the operation of such service.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>A commuter authority may initiate negotiations with Conrail for the transfer of commuter service operated by Conrail.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>Any transfer agreement between such a commuter authority and Conrail shall specify at least—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the service responsibilities to be transferred;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the rail properties to be conveyed; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>a transfer date not later than January 1, 1983.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Any transfer agreement under this subsection shall be entered into not later than September 1, 1982.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Not later than September 1, 1982, Conrail and Amtrak Commuter shall agree on terms and conditions for the transfer to Amtrak Commuter of all of Conrail’s commuter service in the Northeast Corridor, except for commuter service to be transferred directly to a commuter authority under an agreement entered into under subsection (b) of this section, and any rail properties used or useful for the operation of such commuter service. Such service and properties shall be transferred to Amtrak Commuter not later than January 1, 1983.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>If, by September 1, 1982, Conrail and Amtrak Commuter have not signed an agreement pursuant to subsection (c) of this section, the Secretary shall, within 30 days, determine which rail properties shall be transferred to Amtrak Commuter and the terms and conditions under which such rail properties and the Northeast Corridor commuter service of Conrail shall be transferred to Amtrak Commuter. Such transfer shall occur not later than January 1, 1983.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><content>Following the transfer of commuter service and properties to Amtrak Commuter, and upon the request of any commuter authority for which the service is provided by Amtrak Commuter, Amtrak Commuter and such commuter authority shall agree upon terms and conditions for the transfer to the commuter authority of such service and any rail properties used or useful in the operation of such commuter service.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><content>If, within 90 days after a request for the transfer of commuter services is made by a commuter authority under subsection (e), <page identifier="/us/stat/95/651">95 STAT. 651</page>Amtrak Commuter and such commuter authority do not sign an agreement pursuant to subsection (e) of this section, Amtrak Commuter or the commuter authority may appeal to the Secretary. Upon such appeal the Secretary shall determine which rail properties shall be transferred and the terms and conditions of such transfer.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><content>Consideration for inventory, including tools, spare parts, and fuel, transferred under this section shall be based on book value. The transfer of fixed facilities and rolling stock under this section shall be without consideration.</content> </subsection> <subsection class="indent0 fontsize10"><num value="h">“(h) </num><subsection class="inline"><num value="1">(1) </num><content>Notwithstanding any other provision of this Act, if an interest in rail properties is conveyed pursuant to this section, and if such conveyance is in accordance with the requirements of paragraph (2) of this subsection, the conveyance of such properties shall be deemed an assignment. Any such assignment shall relieve Conrail of liability for any breach which occurs after the date of such conveyance, except that Conrail shall remain liable for any breach, event of default, or violation of covenant which occurred (and any charges or obligations which accrued) prior to the date of such conveyance, regardless of whether the assignee thereof assumes such liabilities, charges, or obligations. If any such liabilities, charges, or obligations (accrued prior to the date of such conveyance) are paid by or on behalf of any person or entity other than Conrail, such person or entity shall have a claim to direct reimbursement from Conrail, together with interest on the amount so paid.</content> </subsection> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><chapeau>A conveyance referred to in paragraph (1) of this subsection may be effected only if—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the assignee to whom such conveyance is made assumes all of the obligations under any applicable conditional sale agreement, equipment trust agreement, or lease with respect to such rail properties (including any obligations which accrued prior to the date on which such rail properties are conveyed);</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>such conveyance is made subject to such obligations; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>in the event of a conveyance of property to persons other than Class I or II railroads, such conveyance must be approved by any party who is an owner, lessor, equipment trustee, or conditional sale vendor to Conrail on any debt instrument imposing a lien or encumbrance on or otherwise affecting the title or interest in the rail properties to be conveyed, except that such approval may not be unreasonably withheld and may be withheld only for lack of credit worthiness.</content> </clause> <continuation class="indent0 firstIndent0 fontsize10">As used in this subsection, the term ‘rail properties’ means assets or <sidenote><p class="indent0 firstIndent0 fontsize8">“Rail properties.”</p></sidenote>rights owned, leased, or otherwise controlled by Conrail, other than real property, which are used or useful in rail transportation service. tion service.</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>Subject to the provisions of this subsection, the provisions of this Act shall not affect the title and interests of any lessor, equipment trust trustee, or conditional sale vendor under any conditional sale agreement, equipment trust agreement, or lease under section 1168 of title 11, United States Code. An assignee to whom such a conveyance is made shall assume all liability under such conditional sale agreement, equipment trust agreement, or lease. Such an assignment or conveyance to, and such an assumption of liability by such an assignee, shall not be deemed a breach, an event of default, or a violation of any covenant of any such conditional sale agreement, equipment trust agreement, or lease so assigned or conveyed, notwithstanding any provision of any such agreement or lease.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="i">“(i) </num><content>Conrail shall retain rail properties which are used chiefly in freight service and appropriate trackage rights for freight operations <page identifier="/us/stat/95/652">95 STAT. 652</page>over any rail properties which are transferred under this section. Any dispute regarding such rights may be submitted to the Commission for final and binding determination.</content> </subsection> <subsection class="indent0 fontsize10"><num value="j">“(j) </num><content>Nothing contained in this title shall be construed to affect the rights, duties, or obligations of Conrail or its successor in title and any bi-state commuter authority under any agreement, lease, or contract subject to which property was conveyed to Conrail pursuant to the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s701">45 USC 701 note</ref>.</p></sidenote>Regional Rail Reorganization Act of 1973.</content> </subsection> </section> <section><num value="507">“SEC. 507. </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s587">45 USC 587</ref>.</p></sidenote>REGULATORY APPROVAL.</heading> <content>“Transfers of properties and assumptions of service responsibilities pursuant to agreements negotiated under section 506, or pursuant to a determination made by the Secretary under section 506 (d) or (f), shall not be subject to judicial review or to the provisions of subtitle <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s10101">49 USC 10101 <i>et seq</i></ref>.</p></sidenote>IV of title 49, United States Code.”.</content> </section>
prohibition of cross-subsidizationSec. 1138. Section 601 of the Rail Passenger Service Act (45 U.S.C. 601) is amended by adding at the end thereof the following new subsection: “(c) None of the funds appropriated under this section for the payment of operating and capital expenses of intercity rail passenger service shall be used for the operation of commuter service by Amtrak Commuter.”.
authorization of appropriationsSec. 1139. (a) Section 601 of the Rail Passenger Service Act (45 U.S.C. 601), as amended by section 1138 of this subtitle, is further amended by adding at the end thereof the following new subsection: “(d) There are authorized to be appropriated to the Secretary not to exceed $20,000,000 for the fiscal year ending September 30, 1982, to be allocated for commuter rail purposes to any commuter authority that was providing commuter service, operated by a railroad that entered reorganization after calendar year 1974, as of January 1, 1979.”. (b)

45 USC 744a note.

 There are authorized to be appropriated to the Secretary in the fiscal year ending September 30, 1982, not to exceed $50,000,000, to facilitate the transfer of rail commuter services from Conrail to other operators. The Secretary shall by regulation prescribe standards for the obligation of such funds, and shall ensure that distribution of such funds is equitably made between Amtrak Commuter and the commuter authorities that operate commuter service. In providing for the distribution of such funds, the Secretary shall consider any particular adverse financial impact upon any commuter authority contracting with Amtrak Commuter that results from the termination of any lease or agreement between such commuter authority and Conrail. Amounts appropriated under this section are authorized to remain available until October 1, 1986.
Subpart B—Additional Financing of Conrail
additional financing of conrailSec. 1140. (a) Title II of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 711 et seq.) is amended by adding at the end thereof the following new section: 95 STAT. 653
“additional purchases of series a preferred stock“Sec. 217. (a) Federal Investment.—In addition to the authority

45 USC 727.

45 USC 726.

provided under section 216 of this Act, the Association shall purchase shares of Series A preferred stock and accounts receivable of the Corporation after the effective date of the Northeast Rail Service Act of 1981, in amounts not to exceed a total of $262,000,000. “(b) Accounts Receivable.—(1) In any further purchase under this section or section 216 of this title the Association shall purchase accounts receivable of the Corporation attributable to the dispute over the right-of-way related costs described in section 1163 of the Northeast Rail Service Act of 1981 until the Commission resolves

Post, p. 685.

such dispute under such section, and accounts receivable of the Corporation attributable to delays in reimbursement from commuter authorities. “(2) From funds provided under this section or section 216 of this Act, the Association shall purchase Series A preferred stock of the Corporation, to the extent of losses on commuter service, in an amount not to exceed $15,000,000. “(c) States and Localities.—The Corporation shall be exempt from liability for any State tax, except for any tax imposed by any political subdivision of a State, until the property of the Corporation is transferred by the Secretary under title IV of this Act.

Post, p. 654.

 “(d) Debentures.—The Association shall return debentures to the Corporation in an amount equal to the value of the properties conveyed by the Corporation to Amtrak Commuter and any commuter authority. “(e) Rights Retained.—The Corporation shall retain the right to collect and shall collect any accounts receivable attributable to delays in reimbursement from commuter authorities that are purchased by the Association under this section. No agency or instrumentality of the United States shall be required to collect such accounts. “(f) Authorization of Appropriations.—There are authorized to be appropriated to the Association for purposes of purchasing securities and accounts receivable of the Corporation under this section not to exceed $262,000,000, such sums to remain available until the Secretary transfers the Corporation under title IV of this Act. All sums received on account of the holding or disposition of any such securities or accounts receivable shall be deposited in the general fund of the Treasury.”.
(b) The table of contents of the Regional Rail Reorganization Act of 1973 is amended by inserting immediately after the item relating to section 216 the following new item: “Sec. 217.
organization and structure of conrailSec. 1141. (a) Section 301(d)(2) of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 741(d)(2)) is amended— (1) by striking out “(other than resignations pursuant to this subsection)” in the second sentence; and (2) by striking out the third, fourth, and fifth sentences. (b) Section 301(e)(1) of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 741(e)(1)) is amended by striking out “In order to carry out the final system plan, the” and inserting in lieu thereof “The”. (c) Section 301 of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 741) is amended by striking out subsection (j) and inserting in lieu thereof the following new subsection: 95 STAT. 654 “(j) Signal Systems.—If, within two years after the effective date of this subsection, the Corporation applies for the permission of the Secretary to substitute manual block signal systems for automatic block signal systems on lines on which less than 20,000,000 gross tons of freight are carried annually, the Secretary shall approve or disapprove such application within 90 days of its submission.”.
Subpart C—Transfer of Freight Service Responsibilities
transfer of freight serviceSec. 1142. The Regional Rail Reorganization Act of 1973 is amended by inserting immediately after title III the following new title: <num value="IV">“TITLE IV—</num><heading>TRANSFER OF FREIGHT SERVICE</heading> <section> <heading class="centered smallCaps">“interest of united states</heading><num value="401">“<inline class="smallCaps">Sec</inline>. 401. </num><subsection class="inline"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s761">45 USC 761</ref>.</p></sidenote><inline class="smallCaps">Plan for Sale of Common Stock</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>As soon as practicable after the effective date of the Northeast Rail Service Act <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 643.</p></sidenote>of 1981, the Secretary shall engage the services of an investment banking firm or similar financial institution, which firm or institution shall arrange for the sale of the interest of the United States in the common stock of the Corporation under this section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Plan, submittal to Congress.</p></sidenote> <chapeau class="inline">At any time after the effective date of the Northeast Rail Service Act of 1981 the Secretary may submit to the Congress a plan for the sale, in block or by public offering, of the interest of the United States in the common stock of the Corporation. Such plan shall—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>ensure continued rail service;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>promote competitive bidding for such common stock; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>maximize the return to the United States on its investment.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>Any plan submitted under paragraph (2) shall be deemed approved at the end of the 60-calendar-day period of continuous session of the Congress beginning on the date the plan was submitted, unless during such period both Houses of Congress pass a concurrent resolution the substance of which states that the Congress does not favor such plan. The Secretary shall implement any plan deemed approved under this paragraph. For purposes of this subsection—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>continuity of session of the Congress is broken only by an adjournment sine die; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the days on which either House is not in session because of adjournment of more than 3 days to a day certain are excluded in the computation of the 60-day period.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Cancellation</inline>.—</heading><content>In making any sale under a plan submitted under subsection (a)(2), the Secretary may cancel some shares of the common stock of the Corporation and sell only the remaining shares.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Replacement of Board of Directors</inline>.—</heading><content>When all common stock of the Corporation held by the United States (or any agent or instrumentality thereof) is sold under a plan submitted under subsection (a)(2) or canceled under subsection (b), the Corporation shall elect a new Board of Directors. Only holders of shares of common stock may vote in such election, and each such share shall entitle its holder to one vote.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Railroad Purchasers</inline>.—</heading><content>Any railroad which purchases common stock of the Corporation shall vote such stock in the same proportion as all other common stock of the Corporation is voted <page identifier="/us/stat/95/655">95 STAT. 655</page>unless the Commission determines that such railroad has purchased a controlling interest in the Corporation.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <heading><inline class="smallCaps">Stock Offering</inline>.—</heading><content>In making any sale under a plan submitted under subsection (a)(2), the Secretary shall first offer for sale, to any employees whose wages are reduced pursuant to any agreement entered into in accordance with the goal set forth in section 1134(4) of the Northeast Rail Service Act of 1981, stock in amounts equal to the <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 645.</p></sidenote>extent of such wage reduction.</content> </subsection> </section> <section> <heading class="centered smallCaps">“debt and preferred stock</heading><num value="402">“<inline class="smallCaps">Sec</inline>. 402. </num><subsection class="inline"><num value="a">(a) </num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><content>Prior to any sale of the common stock of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s762">45 USC 762</ref>.</p></sidenote>the Corporation under section 401, the interest of the United States in any debt or preferred stock of the Corporation held by the United States (or any agent or instrumentality thereof, including the Association) shall be limited to any interest which attaches to such debt or preferred stock in the event of bankruptcy, or substantial sale, or liquidation of the assets of the Corporation. The Secretary shall substitute for the evidence of such debt or preferred stock held by the United States (or any such agent or instrumentality) contingency notes conforming to the limited terms set forth in this subsection.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Subsequent Issue</inline>.—</heading><content>If the interest of the United States is limited under subsection (a) the Corporation may issue new debt or preferred stock subsequent to the issuance of the debt or preferred stock described in subsection (a) which shall have higher priority in the event of bankruptcy, liquidation, or abandonment of the assets of the Corporation than the debt or preferred stock described in subsection (a).</content> </subsection> </section> <section> <heading class="centered smallCaps">“profitability determinations</heading><num value="403">“<inline class="smallCaps">Sec</inline>. 403. </num><subsection class="inline"><num value="a">(a) </num> <heading><inline class="smallCaps">First Determination</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>On June 1, 1983, the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s763">45 USC 763</ref>.</p></sidenote>Board of Directors of the Association (hereafter in this title referred to as the ‘USRA Board’) shall make a determination whether the Corporation will be a profitable carrier. For the purpose of making such determination the USRA Board shall assume that the interest of the United States in any debt or preferred stock of the Corporation is limited as required under section 402 of this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>As used in this subsection, ‘profitable carrier’ means a carrier <sidenote><p class="indent0 firstIndent0 fontsize8">“Profitable carrier.”</p></sidenote>that generates sufficient revenues to meet its expenses, including reasonable maintenance of necessary equipment and facilities, and will be able to borrow capital in the private market sufficient to meet all its capital needs.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>If the USRA Board determines under paragraph (1) of this subsection that the Corporation will be a profitable carrier, the Secretary shall continue to attempt to sell the interest of the United States in the common stock of the Corporation under section 401 of this Act.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>If the USRA Board determines under paragraph (1) of this subsection that the Corporation will not be a profitable carrier, the Secretary shall initiate discussions and negotiations under section 405 of this Act for the transfer of the Corporation’s freight rail properties and service responsibilities.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Second Determination</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>As soon after November 1, 1983, as the necessary information is available, if the USRA Board has determined under subsection (a)(2) of this section that the Corporation will be a profitable carrier such Board shall make a determination as to whether the Corporation has been a profitable carrier <page identifier="/us/stat/95/656">95 STAT. 656</page>during the period beginning June 1, 1983, and ending October 31, 1983.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">“Profitable carrier.”</p></sidenote> <content class="inline">As used in this subsection, ‘profitable carrier’ means a carrier that generates sufficient revenues to meet its expenses, including reasonable maintenance of necessary equipment and facilities, and would have been able to borrow capital in the private market sufficient to meet all its capital needs. For the purpose of making such determination the USRA Board shall assume that the interest of the United States in any debt or preferred stock of the Corporation has been limited as required under section 402 of this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>If the USRA Board determines under paragraph (1) of this subsection that the Corporation has been a profitable carrier, the Secretary shall continue to attempt to sell the interest of the United States in the common stock of the Corporation under section 401 of this Act.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>If the USRA Board determines under paragraph (1) of this subsection that the Corporation has not been a profitable carrier, the Secretary shall initiate discussions and negotiations under section 405 of this Act for the transfer of the Corporation’s freight rail properties and service responsibilities.</content></subparagraph> </paragraph> </subsection> </section> <section> <heading class="centered smallCaps">“failure to sell as entity</heading><num value="404">“<inline class="smallCaps">Sec</inline>. 404. </num><subsection class="inline"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s764">45 USC 764</ref>.</p></sidenote><inline class="smallCaps">Notification</inline>.—</heading><content>After June 1, 1984, the Secretary may notify the USRA Board that he has determined that he is unable to sell the interest of the United States in the common stock of the Corporation under section 401 of this Act. The USRA Board shall approve or disapprove such determination within 15 days after the date of such notification.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">USRA Board Approval</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>If the USRA Board approves any determination of the Secretary of which it is notified under subsection (a)(2), the employees of the Corporation may, within 90 days after the date of the Secretary’s determination was submitted to the USRA Board, submit to the Secretary a plan for the purchase of the common stock of the Corporation.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary shall approve any plan submitted under paragraph (1) of this subsection if, taking into account any consideration to be received by the Corporation from any sale of debt instruments or newly issued common stock as part of the purchase transaction, the Corporation’s earnings and earnings prospects are sufficient to meet its operating and capital requirements and permit it adequate access to the private capital markets for any additional capital it may require, so that the Corporation will not require further Federal financial assistance. The Secretary shall consider whether the plan ensures continued rail service and maximizes the return to the United States on its investment.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>If the Secretary does not approve the plan submitted under paragraph (1) of this subsection the Secretary shall initiate discussions and negotiations under section 405 of this Act for the transfer of the Corporation’s freight rail properties and service responsibilities.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">USRA Board Disapproval</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>If the USRA Board disapproves any determination of the Secretary it is notified of under subsection (a), the Secretary shall continue to attempt to sell the interest of the United States in the common stock of the Corporation.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary may notify the USRA Board that he has determined that he is unable to sell the interest of the United States in the common stock of the Corporation each 90 days thereafter, and <page identifier="/us/stat/95/657">95 STAT. 657</page>such determination shall be subject to the approval or disapproval under the provisions of this section.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">“transfer plan</heading><num value="405">“<inline class="smallCaps">Sec</inline>. 405. </num><subsection class="inline"><num value="a">(a) </num> <heading><inline class="smallCaps">Initial Discussions</inline>.—</heading><content>If the Corporation is determined <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s765">45 USC 765</ref>.</p></sidenote>not to be a profitable carrier by the USRA Board under subsection (a) or (b) of section 403, or if any plan for the purchase of the common stock of the Corporation under section 404(b) is not approved by the Secretary, or if at any time the Corporation requires funding from the Federal Government in excess of amounts authorized on or before the effective date of the Northeast Rail Service Act of 1981, the Secretary, in consultation with the Corporation, shall <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 643.</p></sidenote>initiate discussions and negotiations under section 5 of the Department of Transportation Act (49 U.S.C. 1654) with potential purchasers for the transfer of the Corporation’s freight rail properties and service responsibilities, specifically including freight terminal operations in the Northeast Corridor.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Conferences</inline>.—</heading><content>As a part of the process set forth in subsection (a), the Secretary shall consult with railroads, representatives of employees of the Corporation and other railroads that may be affected, appropriate State and local government officials, shippers, consumer representatives, potential purchasers or operators other than railroads, and holders of purchase money equipment obligations. The Secretary shall hold conferences in developing plans for the sale of the Corporation and persons attending or represented at such conferences shall not be liable under the antitrust laws of the United States with respect to any discussion at such conference, or with respect to any agreements reached at such conferences, which are entered into with the approval of the Secretary.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Freight Transfer Agreements</inline>.—</heading><content>Any agreement for the transfer of the Corporation’s rail properties and service responsibilities (hereafter in this title referred to as ‘freight transfer agreements’) shall specify the rail properties and the service responsibilities to be transferred to the acquiring railroad and the price to be paid for rail properties transferred, and shall include such other terms as the Secretary, consulting with the Corporation, and the acquiring railroad consider appropriate.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Terminal Companies</inline>.—</heading><content>Not later than 1 year after the freight transfer agreements are implemented pursuant to section 408 of this title, the Secretary shall arrange for the formation by railroads of one or more terminal companies, to be operated as private corporations without Federal operating subsidy, to provide switching and terminal services in the Northeast Corridor without preference to the traffic of any railroad. Notwithstanding the provisions of the preceding sentence, the Secretary shall not be required to arrange for the formation of such terminal companies if he certifies in writing to the Congress that individual acquiring railroads are capable of assuring adequate freight terminal operations in the Northeast Corridor.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <heading><inline class="smallCaps">Competition</inline>.—</heading><content>Discussion and negotiations for freight transfer agreements shall be conducted, to the maximum extent practicable, to assure the preservation and enhancement of rail competition in the Northeast. In the development of freight transfer agreements, rail lines which have heavy rail freight activity shall receive priority designation for competitive service. In determining such priority, the Secretary shall consider shipper input and other relevant data.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <heading><inline class="smallCaps">Report</inline>.—</heading><content>The Secretary shall submit to the Congress every six months a report regarding his activities under this section. If the Secretary finds that he is unable to sell the interest of the United States in the common stock of the Corporation under section 401 of <page identifier="/us/stat/95/658">95 STAT. 658</page>this Act, he shall concurrently notify the Congress and the USRA Board of such finding.</content> </subsection> </section> <section> <heading class="centered smallCaps">“consolidation of agreements</heading><num value="406">“<inline class="smallCaps">Sec</inline>. 406. </num><subsection class="inline"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s766">45 USC 766</ref>.</p></sidenote><inline class="smallCaps">Goals</inline>.—</heading><content>The Secretary shall ensure that freight transfer agreements entered into under the authority of this title provide for the continuation of the optimum level of self-sustaining rail service consistent with the needs of the service area, the longterm viability of acquiring railroads operating in the private sector, the preservation and enhancement of transportation competition, and the orderly disposition of equipment subject to railroad equipment obligations and of rail properties subject to contractual obligations based on improvements directly financed by States, localities, and shippers.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Transfer Date</inline>.—</heading><content>All freight transfer agreements entered into under this title shall include as a term a common transfer date.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Consolidation</inline>.—</heading><content>The Secretary shall consolidate, for purposes of approval and review, all freight transfer agreements and shall ensure that no less than 75 percent of the total rail service operated by the Corporation on the date of transfer shall be maintained under the aggregate of such agreements. If the Secretary acts to grant preliminary or final approval to the freight transfer agreements, the Secretary shall include in his determination a listing of those rail properties not specified in such agreements for transfer, and the likely disposition of such properties.</content> </subsection> </section> <section> <heading class="centered smallCaps">“public comment and congressional notification</heading><num value="407">“<inline class="smallCaps">Sec</inline>. 407. </num><subsection class="inline"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8">Publication in Federal Register.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s767">45 USC 767</ref>.</p></sidenote><inline class="smallCaps">Attorney General</inline>.—</heading><content>If the Secretary grants preliminary approval to the freight transfer agreements, the Secretary shall publish a summary of the agreements in the Federal Register, requesting public comment. The period for comment shall be not less than 30 days. The Secretary shall, upon the expiration of such 30-day period, transmit the freight transfer agreements with any proposed modifications to the Attorney General. The Attorney General shall, within 10 days of receipt of such transmittal, advise the Secretary as to whether any freight transfer agreement or combination of agreements would create or maintain a situation inconsistent with the antitrust laws of the United States, and the Secretary shall give due consideration to any such advice that may be rendered. The transmittal to the Attorney General shall contain such information as the Attorney General may require in order to advise the Secretary as to whether the freight transfer agreements under consideration would create or maintain a situation inconsistent with such antitrust laws.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Commission</inline>.—</heading><content>The Secretary shall also transmit the freight transfer agreements with any proposed modifications to the Commission on the same date that the Secretary transmits them to the Attorney General. The Commission shall, within 10 days of receipt of such transmittal, advise the Secretary as to the effect of any freight transfer agreement or combination of agreements on the adequacy of public transportation and whether any freight transfer agreement or combination of agreements would have an adverse effect on other railroads or on competition among railroads.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Final Approval</inline>.—</heading><content>After consideration of comments received and any advice rendered by the Attorney General and the Commission, but no later than 90 days after the close of public comment under subsection (a), the Secretary may grant final approval to the <page identifier="/us/stat/95/659">95 STAT. 659</page>freight transfer agreements. With the consent of the acquiring railroad, the Secretary may modify a freight transfer agreement prior to granting such final approval.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Congressional Review</inline>.—</heading><chapeau>If the Secretary grants final approval to the freight transfer agreements, the Secretary shall, within 10 days of such approval, transmit a copy of such agreements to each House of Congress, together with the Secretary’s determination of final approval. The freight transfer agreements shall be deemed approved at the end of 60 calendar days of continuous session of the Congress, unless either the House of Representatives or the Senate or both passes a resolution during such period stating that they do not favor the freight transfer agreements. For purposes of this subsection—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>continuity of session of the Congress is broken only by an adjournment sine die; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the days on which either House is not in session because of adjournment of more than 3 days to a day certain are excluded in the computation of the period described in this subsection.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">“performance under agreements; effect</heading><num value="408">“<inline class="smallCaps">Sec</inline>. 408. </num><subsection class="inline"><num value="a">(a) </num> <heading><inline class="smallCaps">Transfer</inline>.—</heading><content>If neither House of Congress has acted to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s768">45 USC 768</ref>.</p></sidenote>disapprove the freight transfer agreements within 60 days, rail properties shall be conveyed and service responsibilities of the Corporation shall be transferred in accordance with the freight transfer agreements. Such conveyances and transfers shall not be subject to the provisions of subtitle IV of title 49, United States Code, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t49/s10101">49 USC 10101 <i>et seq</i></ref>.</p></sidenote>or, with respect to the issuance and sale of securities to the United States or the Corporation for the purpose of financing such transfers, to the registration and prospectus delivery requirements of the Securities Act of 1933, or to the laws of any State with respect to the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s77a">15 USC 77a</ref>.</p></sidenote>issuance and sale of securities.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Responsibilities</inline>.—</heading><chapeau>On the date the common stock or the rail properties and service responsibilities of the Corporation are transferred under this title—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the acquiring railroad shall be deemed a railroad subject to subtitle IV of title 49, United States Code, and shall be deemed qualified thereunder to provide the service responsibilities assumed; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the Corporation shall discontinue and shall be relieved of any responsibility to operate rail service over any line of railroad conveyed under the freight transfer agreements and all other rail properties of the Corporation.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Review</inline>.—</heading><content>No transfer of the Corporation’s stock or rail properties and freight service responsibilities under this title shall be subject to judicial review or to review by the Commission.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Sale Date</inline>.—</heading><content>Unless the Corporation is found not profitable under section 403(a) or (b) of this title, the Secretary may not sell the rail properties and service responsibilities of the Corporation until June 1, 1984, except that if the Corporation requires further Federal financing before such date, such sale may be made before such date.</content> </subsection> </section> <section> <heading class="centered smallCaps">“assignment</heading><num value="409">“<inline class="smallCaps">Sec</inline>. 409. </num><subsection class="inline"><heading><inline class="smallCaps">Liability</inline>.—</heading><num value="a">(a) </num><content>Notwithstanding any other provision of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s769">45 USC 769</ref>.</p></sidenote>this title, if an interest in rail properties is conveyed pursuant to section 408 of this Act, and if such conveyance is in accordance with the requirements of subsection (b) of this section, the conveyance of <page identifier="/us/stat/95/660">95 STAT. 660</page>such properties shall be deemed an assignment. Any such assignment shall relieve the Corporation of liability for any breach which occurs after the date of such conveyance, except that the Corporation shall remain liable for any breach, event of default, or violation of covenant which occurred (and any charges or obligations which accrued) prior to the date of such conveyance, regardless of whether the assignee thereof assumes such liabilities, charges, or obligations. If any such liabilities, charges, or obligations (accrued prior to the date of such conveyance) are paid by or on behalf of any person or entity other than the Corporation, such person or entity shall have a claim to direct reimbursement from the Corporation, together with interest on the amount so paid.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Conveyance</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><chapeau>A conveyance referred to in subsection (a) of this section may be effected only if—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the assignee to whom such conveyance is made assumes all of the obligations under any applicable conditional sale agreement, equipment trust agreement, or lease with respect to such rail properties (including any obligations which accrued prior to the date on which such rail properties are conveyed),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>such conveyance is made subject to such obligations, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>in the event of a conveyance of property to persons other than Class I or II railroads, such conveyance must be approved by any party who is a owner, lessor, equipment trustee, or conditional sale vendor to the Corporation on any debt instrument imposing a lien or encumbrance on or otherwise affecting the title or interest in the rail properties to be conveyed, provided that such approval may not be unreasonably withheld and may be withheld only for lack of credit worthiness.</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10"><sidenote><p class="indent0 firstIndent0 fontsize8">“Rail properties.”</p></sidenote>As used in this paragraph, the term ‘rail properties’ means assets or rights owned, leased, qr otherwise controlled by the Corporation, other than real property, which are used or useful in rail transportation service.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Subject to the provisions of this subsection, the provisions of this title shall not affect the title and interests of any lessor, equipment trust trustee, or conditional sale vendor under any conditional sale agreement, equipment trust agreement, or lease under section 1168 of title 11, United States Code. An assignee to whom such a conveyance is made shall assume all liability under such conditional sale agreement, equipment trust agreement, or lease. Such an assignment or conveyance to, and such an assumption of liability by such an assignee, shall not be deemed a breach, an event of default, or a violation of any covenant of any such conditional sale agreement, equipment trust agreement, or lease so assigned or conveyed, notwithstanding any provision of any such agreement or lease.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">“subsidiaries</heading><num value="410">“<inline class="smallCaps">Sec</inline>. 410. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s769a">45 USC 769a</ref>.</p></sidenote> <content class="inline">The Corporation, by January 1, 1982, shall identify those of its subsidiaries (other than the Conrail Equity Corporation) which did not operate at a profit during the preceding 12-month period, and shall, not later than 12 months after the date of enactment of this subtitle, seek to sell any subsidiary identified as not profitable unless the Association determines that the benefits of maintaining ownership of such subsidiary outweigh the financial loss resulting from such ownership.”.</content> </section>
95 STAT. 661 PART 3—PROTECTION FOR CONRAIL EMPLOYEES
protection of conrail employeesSec. 1143. (a) The Regional Rail Reorganization Act of 1973 (45 U.S.C. 701 et seq.) is amended by adding at the end thereof the following new title: <num value="VII">“TITLE VII—</num><heading>PROTECTION OF EMPLOYEES</heading> <section> <heading class="centered smallCaps">“employee protection agreement</heading><num value="701">“<inline class="smallCaps">Sec</inline>. 701. </num><subsection class="inline"><num value="a">(a) </num> <heading><inline class="smallCaps">General</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of Labor and the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s797">45 USC 797</ref>.</p></sidenote>representatives of the various classes and crafts of employees of the Corporation shall, not later than 90 days after the effective date of this title, enter into an agreement providing protection for employees of the Corporation who were protected by the compensatory provisions of title V of this Act immediately prior to the effective date of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s771">45 USC 771</ref>.</p><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 643.</p></sidenote>the Northeast Rail Service Act of 1981 and who are, or may be, deprived of employment by actions taken under this Act and the Northeast Rail Service Act of 1981. An employee shall be considered deprived of employment if unable to obtain a position with an acquiring railroad, or to obtain a position with the Corporation, the National Railroad Passenger Corporation, or a commuter authority through the normal exercise of seniority or, in the case of a nonagreement employee, by written application.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>If the parties are unable to reach agreement under paragraph (1) within 90 days, the Secretary of Labor shall, within 30 days after the expiration of such 90-day period, prescribe the benefit schedule.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Use of Funds</inline>.—</heading><chapeau>The agreement entered into under this section may provide for the use of funds made available under section 713 of this Act for the following purposes:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>Allowances to employees deprived of employment.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Moving expenses for employees who must make a change in residence.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Retraining expenses for employees who are seeking employment in new areas.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>Termination allowances for employees.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>Health and welfare insurance premiums.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>Such other purposes as may be agreed upon by the parties.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Applicability</inline>.—</heading><content>Any employee of the Corporation who is eligible for benefits under an agreement entered into under this section and who is transferred to the National Railroad Passenger Corporation, to the Amtrak Commuter Services Corporation, or to a commuter authority pursuant to title V of the Rail Passenger Service Act shall remain eligible for such benefits. <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 647.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The agreement of the parties and the benefit schedule prescribed by the Secretary under this section may not require the expenditure of funds in excess of the amount authorized to be appropriated under section 713 of this Act, or provide benefits for any individual employee in excess of $20,000.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>No individual shall become eligible for benefits under this section after the last day of the eighteen-month period beginning on the date of transfer under section 401 or 404 of this Act. <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, pp. 654, 656.</p></sidenote></content></paragraph> </subsection> </section> <page identifier="/us/stat/95/662">95 STAT. 662</page> <section> <heading class="centered smallCaps">“termination allowance</heading><num value="702">“<inline class="smallCaps">Sec</inline>. 702. </num><subsection class="inline"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s797a">45 USC 797a</ref>.</p></sidenote><inline class="smallCaps">General</inline>.—</heading><content>The Corporation may terminate the employment of certain employees, in accordance with this section, upon the payment of an allowance of $350 for each month of active service with the Corporation or with a railroad in reorganization, but in no event may any such termination allowance exceed $25,000.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Employment Needs</inline>.—</heading><content>Within 90 days after the effective date of this title, the Corporation shall determine, for each location, the number of employees that the Corporation intends to separate under subsection (a) of this section.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Notification and Separation Procedure</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Within 90 days after the effective date of this title, the Corporation shall notify its employees of their rights and responsibilities under this section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Within 90 days after the effective date of this title, the Corporation shall notify each train and engine service employee eligible to be separated under paragraph (3) that such employee may be entitled to receive a separation payment under this section if such employee files a written request to be separated. Such notice may be revised from time to time.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>If the number of employees who request to be separated pursuant to paragraph (2) of this subsection is greater, in engine service at any location, than the number of excess firemen at the location, and in train service at the location than the number of excess second and third brakemen, as determined by the Corporation, the Corporation shall separate the employees described in paragraph (2) of this subsection in order of seniority beginning with the most senior employee, until the excess firemen and second and third brakemen positions at that location, as determined by the Corporation, have been eliminated.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Designated Separations</inline>.—</heading><content>If the number of employees who are separated pursuant to subsection (c)(3) is less at any location than the number of excess firemen in freight and commuter service and second and third brakemen in freight service at such location, as determined by the Corporation, the Corporation may, after 210 days after the effective date of this title, designate for separation employees in engine service or train service respectively in inverse order of seniority, beginning with the most junior employee in active service at such location until the excess firemen in freight and commuter service and second and third brakemen in freight service, at that location have been eliminated. An employee designated under this subsection may choose (1) to furlough himself voluntarily, in which case the next most junior employee protected under the fireman manning or crew consist agreements or any other agreement or law, in the same craft or class at such location may be separated instead and receive the separation allowance, or (2) to exercise his seniority to another location, in which case the Corporation may separate, under the provisions of this subsection, the next most junior protected employee in active service at the location to which seniority ultimately is exercised.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <heading><inline class="smallCaps">Effect on Positions</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Corporation shall refrain from filling one fireman position in freight service, or in commuter service where applicable, for each employee in engine service separated in accordance with this section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Corporation may refrain from filling one brakeman position in excess of one conductor and one brakeman on one crew in freight service for each employee in train service who is separated in accordance with this section.</content></paragraph> <page identifier="/us/stat/95/663">95 STAT. 663</page> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Positions permitted to be not filled under this subsection shall be not filled in different types of freight service actually operated at or from the location in a sequence to be agreed upon between the Corporation and the general chairman representative of classes or crafts of employees having jurisdiction over the positions to be not filled. If no such agreement is reached, the Corporation may designate the position to be not filled.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>Notwithstanding paragraphs (1) and (2) of this subsection, the Corporation shall retain all rights it has under any provision of law or agreement to refrain from filling any position of employment.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <heading><inline class="smallCaps">Procedures</inline>.—</heading><content>The Corporation and representatives of the various classes and crafts of employees to be separated may agree on procedures to implement this section, but the absence of such agreement shall not interfere with implementation of the separations authorized by this section.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num> <heading><inline class="smallCaps">Commuter Employees</inline>.—</heading><content>The provisions of this section shall apply to the separation of firemen in commuter service, except that with respect to such employees the Corporation is required to make the separations authorized by this section.</content> </subsection> </section> <section> <heading class="centered smallCaps">“preferential hiring</heading><num value="703">“<inline class="smallCaps">Sec</inline>. 703. </num><subsection class="inline"><num value="a">(a) </num> <heading><inline class="smallCaps">General</inline>.—</heading><content>Any employee who is deprived of employment <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s797b">45 USC 797b</ref>.</p></sidenote>shall have the first right of hire by any other railroad for a vacancy for which he is qualified in a class or craft (or in the case of a non-agreement employee, for a non-agreement vacancy) in which such employee was employed by the Corporation or a predecessor carrier for not less than one year, except where such a vacancy is covered by (1) an affirmative action plan, or a hiring plan designed to eliminate discrimination, that is required by Federal or State statute, regulation, or Executive order, or by the order of a Federal court or agency, or (2) a permissible voluntary affirmative action plan. For purposes of this section, a railroad shall not be considered to be hiring new employees when it recalls any of its own furloughed employees.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Status</inline>.—</heading><content>The first right of hire afforded to employees under this section shall be coequal to the first right of hire afforded under section 8 of the Milwaukee Railroad Restructuring Act (45 U.S.C. 907) and section 105 of the Rock Island Transition and Employee Assistance Act (45 U.S.C. 1004). <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/400">94 Stat. 400</ref>.</p></sidenote></content> </subsection> </section> <section> <heading class="centered smallCaps">“central register of railroad employment</heading><num value="704">“<inline class="smallCaps">Sec</inline>. 704. </num><subsection class="inline"><num value="a">(a) </num> <heading><inline class="smallCaps">Register</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Railroad Retirement Board (hereafter <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s797c">45 USC 797c</ref>.</p></sidenote>in this section referred to as the ‘Board’) shall prepare and maintain a register of persons separated from railroad employment after at least one year of completed service with a railroad who have declared their current availability for employment in the railroad industry. The register shall be subdivided by class and craft of prior employment and shall be updated periodically to reflect current availability.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Each entry in the register shall include, or provide access to, basic information concerning the individual’s experience and qualifications.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The Board shall place at the top of the register those former railroad employees entitled to priority under applicable provisions of law, including this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Corporation Employers</inline>.—</heading><content>As soon as is practicable after the effective date of this title, the Corporation shall provide to the Board <page identifier="/us/stat/95/664">95 STAT. 664</page>the names of its former employees who elect to appear on the register and who have not been offered employment with acquiring railroads.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Vacancy Notices</inline>.—</heading><content>Each railroad shall timely file with the Board a notice of vacancy with respect to any position for which the railroad intends to accept applications from persons other than current employees of that carrier.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <heading><inline class="smallCaps">Placement</inline>.—</heading><content>The Board shall, through distribution of copies of the central register (or portions thereof) to railroads and representatives of classes or crafts of employees and through publication of employment information derived from vacancy notices filed with the Board, promote the placement of former railroad employees possessing requisite skills and experience in appropriate positions with other railroads.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <heading><inline class="smallCaps">Employment Applications</inline>.—</heading><content>In addition to its responsibilities under subsections (a) through (d) of this section, the Board shall facilitate the filing of employment applications with respect to current vacancies in the industry by former railroad employees entitled to priority under applicable provisions of law, including this Act.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <heading><inline class="smallCaps">Expiration</inline>.—</heading><content>The provisions of this section shall cease to be effective on the expiration of the 3-year period beginning on the effective date of this title.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num> <heading><inline class="smallCaps">Resolution of Disputes</inline>.—</heading><chapeau>Any dispute, grievance, or claim arising under this section or section 703 of this Act shall be subject to resolution in accordance with the following procedures:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>Any employee with such a dispute, grievance, or claim may petition the Board to review and investigate the dispute, grievance, or claim.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Board shall investigate the dispute, grievance, or claim, and if it concludes that the employee’s rights under this section or section 703 of this Act may have been violated, the dispute, grievance, or claim shall be subject to resolution in accordance with the procedures set forth in section 3 of the Railway Labor Act (45 U.S.C. 153).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>In the case of any violation of this section or section 703 of this Act, the Adjustment Board (or any division or delegate thereof) or any other board of adjustment created under section 3 of the Railway Labor Act shall, where appropriate, award such relief, including back pay, as may be necessary to enforce the employee’s rights.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">“election and treatment of benefits</heading><num value="705">“<inline class="smallCaps">Sec</inline>. 705. </num><subsection class="inline"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s797d">45 USC 797d</ref>.</p></sidenote><inline class="smallCaps">Election</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Any employee who accepts any benefits under an agreement entered into under section 701 of this Act or a termination allowance under section 702 of this Act, shall, except as provided in paragraph (2) of this subsection, be deemed to waive any employee protection benefits otherwise available under any other provision of law or any contract or agreement in effect on the effective date of this title, except benefits under sections 703 and 704 of this Act, and shall be deemed to waive any cause of action for any alleged loss of benefits resulting from the provisions of or the <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 643.</p></sidenote>amendments made by the Northeast Rail Service Act of 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Nothing in paragraph (1) of this subsection shall affect the right of any employee described in such paragraph to benefits under <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s231t">45 USC 231t</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s367">45 USC 367</ref>.</p></sidenote>the Railroad Retirement Act of 1974 or the Railroad Unemployment Insurance Act.</content></paragraph> </subsection> <page identifier="/us/stat/95/665">95 STAT. 665</page> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Treatment of Benefits</inline>.—</heading><chapeau>Any benefits received by an employee under an agreement entered into pursuant to section 701 of this Act and any termination allowance received under section 702 of this Act shall be considered compensation solely for purposes of—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>determining the compensation received by such employee in any base year under the Railroad Unemployment Insurance Act (45 U.S.C. 351 et seq.).</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">“assignment of work</heading><num value="706">“<inline class="smallCaps">Sec</inline>. 706. </num><subsection class="inline"><num value="a">(a) </num> <heading><inline class="smallCaps">General</inline>.—</heading><content>With respect to any craft or class of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s797e">45 USC 797e</ref>.</p></sidenote>employees not covered by a collective bargaining agreement that provides for a process substantially equivalent to that provided for in this section, the Corporation shall have the right to assign, allocate, reassign, reallocate, and consolidate work formerly performed on the rail properties acquired pursuant to the provisions of this Act from a railroad in reorganization to any location, facility, or position on its system if it does not remove such work from coverage of a collective bargaining agreement and does not infringe upon the existing classification of work rights of any craft or class of employees at the location or facility to which such work is assigned, allocated, reassigned, reallocated, or consolidated. Prior to the exercise of authority under this subsection, the Corporation shall negotiate an agreement with the representatives of the employees involved permitting such employees the right to follow their work.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Expiration</inline>.—</heading><content>The authority granted by this section shall apply only for as long as benefits are provided under this title with funds made available under section 713 of this Act.</content> </subsection> </section> <section> <heading class="centered smallCaps">“contracting out</heading><num value="707">“<inline class="smallCaps">Sec</inline>. 707. </num><content>All work in connection with the operation or services <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s797f">45 USC 797f</ref>.</p></sidenote>provided by the Corporation on the rail lines, properties, equipment, or facilities acquired pursuant to the provisions of this Act and the maintenance, repair, rehabilitation, or modernization of such lines, properties, equipment, or facilities which has been performed by practice or agreement in accordance with provisions of the existing contracts in effect with the representatives of the employees of the classes or crafts involved shall continue to be performed by the Corporation’s employees, including employees on furlough. Should the Corporation lack a sufficient number of employees, including employees on furlough, and be unable to hire additional employees, to perform the work required, it shall be permitted to subcontract that part of such work which cannot be performed by its employees, including those on furlough, except where agreement by the representatives of the employees of the classes or crafts involved is required by applicable collective-bargaining agreements. The term ‘unable to hire additional employees’ as used in this section contemplates establishment and maintenance by the Corporation of an apprenticeship, training, or recruitment program to provide an adequate number of skilled employees to perform the work.</content> </section> <section> <heading class="centered smallCaps">“new collective-bargaining agreements</heading><num value="708">“<inline class="smallCaps">Sec</inline>. 708. </num><subsection class="inline"><num value="a">(a) </num> <heading><inline class="smallCaps">Agreement</inline>.—</heading><content>Not later than 60 days after the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s797g">45 USC 797g</ref>.</p></sidenote>effective date of any conveyance pursuant to the provisions of this <page identifier="/us/stat/95/666">95 STAT. 666</page>Act, the representatives of the various classes or crafts of employees of a railroad in reorganization involved in a conveyance and representatives of the Corporation shall commence negotiation of a new single collective bargaining agreement for each class and craft of employees covering the rate of pay, rules, and working conditions of employees who are the employees of the Corporation. Such collective bargaining agreement shall include appropriate provisions concerning rates of pay, rules, and working conditions, but shall not, before April 1, 1984, include any provisions for job stabilization which may exceed or conflict with those established herein. Negotiations with respect to such single collective bargaining agreement, and any successor thereto, shall be conducted systemwide.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Procedure</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>Any procedure for finally determining the components of the first single collective bargaining agreement for any class or craft, agreed upon before the effective date of this title, shall be completed no later than 45 days after such effective date. Such agreed upon procedure shall be deemed to satisfy the requirements <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s157/158">45 USC 157, 158</ref>.</p></sidenote>of sections 7 and 8 of the Railway Labor Act. The National Mediation Board shall appoint any person as provided for by such agreements.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Nothing in this section shall be construed to require the parties to enter into a new single collective bargaining agreement if the agreement between the parties in effect immediately prior to the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1956">94 Stat. 1956</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s774">45 USC 774</ref>.</p></sidenote>effective date of this title complied with section 504(d) of this Act as in effect immediately prior to such date.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Railway Labor Act Notices</inline>.—</heading><content>Employees of the Corporation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s156">45 USC 156</ref>.</p></sidenote>may not serve notices under section 6 of the Railway Labor Act for the purpose of negotiating job stabilization or other protective agreements with the Corporation until after April 1, 1984.</content> </subsection> </section> <section> <heading class="centered smallCaps">“employee and personal injury claims</heading><num value="709">“<inline class="smallCaps">Sec</inline>. 709. </num><subsection class="inline"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s797h">45 USC 797h</ref>.</p></sidenote><inline class="smallCaps">Liability for Employee Claims</inline>.—</heading><content>In all cases of claims, prior to April 1, 1976, by employees, arising under the collective bargaining agreements of the railroads in reorganization in the Region, and subject to section 3 of the Railway Labor Act (45 U.S.C. 153), the Corporation, the National Railroad Passenger Corporation, or an acquiring carrier, as the case may be, shall assume responsibility for the processing of any such claims, and payment of those which are sustained or settled on or subsequent to the date of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s743">45 USC 743</ref>.</p></sidenote>conveyance, under section 303(b)(1) of this Act, and shall be entitled to direct reimbursement from the Association pursuant to section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s721">45 USC 721</ref>.</p></sidenote>211(h) of this Act, to the extent that such claims are determined by the Association to be the obligation of a railroad in reorganization in the Region. Any liability of an estate of a railroad in reorganization to its employees which is assumed, processed, and paid pursuant to this subsection by the Corporation, the National Railroad Passenger Corporation, or an acquiring carrier shall remain the preconveyance obligation of the estate of such railroad for purposes of section 211(h)(1) of this Act. The Corporation, the National Railroad Passenger Corporation, an acquiring carrier, or the Association, as the case may be, shall be entitled to a direct claim as a current expense of administration, in accordance with the provisions of section 211(h) of this Act (other than paragraph (4)(A) thereof), for reimbursement (including costs and expenses of processing such claims) from the estate of the railroad in reorganization on whose behalf such obligations are discharged or paid. In those cases in which claims for employees were sustained or settled prior to such date of conveyance, <page identifier="/us/stat/95/667">95 STAT. 667</page>it shall be the obligation of the employees to seek satisfaction against the estate of the railroads in reorganization which were their former employers.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">Assumption of Personal Injury Claims</inline>.—</heading><content>All cases or claims by employees or their personal representatives for personal injuries or death against a railroad in reorganization in the Region arising prior to the date of conveyance of rail properties, pursuant to section 303 of this Act, shall be assumed by the Corporation or an acquiring <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s743">45 USC 743</ref>.</p></sidenote>railroad, as the case may be. The Corporation or the acquiring railroad shall process and pay any such claims that are sustained or settled, and shall be entitled to direct reimbursement from the Association pursuant to section 211(h) of this Act, to the extent that <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s721">45 USC 721</ref>.</p></sidenote>such claims are determined by the Association or its successor authority to be the obligation of such railroad. Any liability of an estate of a railroad in reorganization which is assumed, processed, and paid, pursuant to this subsection, by the Corporation or an acquiring railroad shall remain the preconveyance obligation of the estate of such railroad for purposes of section 211(h)(1) of this Act. The Corporation, an acquiring railroad, or the Association, as the case may be, shall be entitled to a direct claim as a current expense of administration, in accordance with the provisions of section 211(h) of this Act (other than paragraph (4)(A) thereof), for reimbursement (including costs and expenses of processing such claims) from the estate of the railroad in reorganization on whose behalf such obligations were discharged or paid.</content> </subsection> </section> <section> <heading class="centered smallCaps">“limitations on liability</heading><num value="710">“<inline class="smallCaps">Sec</inline>. 710. </num><subsection class="inline"><num value="a">(a) </num> <heading><inline class="smallCaps">Federal Government</inline>.—</heading><content>The liability of the United <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s797i">45 USC 797i</ref>.</p></sidenote>States under an agreement entered into or benefit schedule prescribed under section 701 of this Act or for payment of a termination allowance under section 702 of this Act shall be limited to amounts appropriated under section 713 of this Act.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">The Corporation</inline>.—</heading><paragraph class="inline"><num value="1">(1) </num><content>The Corporation, Amtrak Commuter, and commuter authorities shall incur no liability under an agreement entered into or benefit schedule prescribed under section 701 of this Act or for the payment of a termination allowance under section 702 of this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Notwithstanding any other provision of law, until April 1, 1984, the Corporation shall have no liability for employee protection in the event of a sale of any asset to a purchaser, and such purchaser shall assume the liability for the application of employee protection conditions imposed by the Commission for all employees adversely affected by such sale.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">“preemption</heading><num value="711">“<inline class="smallCaps">Sec</inline>. 711. </num><content>No State may adopt or continue in force any law, rule, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s797j">45 USC 797j</ref>.</p></sidenote>regulation, order, or standard requiring the Corporation, the National Railroad Passenger Corporation, or the Amtrak Commuter Services Corporation to employ any specified number of persons to perform any particular task, function, or operation, or requiring the Corporation to pay protective benefits to employees, and no State in the Region may adopt or continue in force any such law, rule, regulation, order, or standard with respect to any railroad in the Region.</content> </section> <page identifier="/us/stat/95/668">95 STAT. 668</page> <section> <heading class="centered smallCaps">“factfinding panel</heading><num value="712">“<inline class="smallCaps">Sec</inline>. 712. </num><subsection class="inline"><num value="a">(a) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s797k">45 USC 797k</ref>.</p></sidenote><inline class="smallCaps">Purpose</inline>.—</heading><content>The Corporation shall enter into collective bargaining agreements with its employees which provide for the establishment of one or more advisory factfinding panels, chaired by a neutral expert in industrial relations, for purposes of recommending changes in operating practices and procedures which result in greater productivity to the maximum extent practicable.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <heading><inline class="smallCaps">National Mediation Board</inline>.—</heading><content>The National Mediation Board shall appoint public members to any panel established by an agreement entered into under this subparagraph, and shall perform such functions contained in the agreement as are consistent with the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s151">45 USC 151</ref>.</p></sidenote>duties of such Board under the Railway Labor Act.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Other Functions</inline>.—</heading><content>The factfinding panel may, before making its report to the parties, provide mediation, conciliation, and other assistance to the parties.</content> </subsection> </section> <section> <heading class="centered smallCaps">“authorization of appropriations</heading><num value="713">“<inline class="smallCaps">Sec</inline>. 713. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s797l">45 USC 797<i>l</i></ref>.</p></sidenote> <content class="inline">There are authorized to be appropriated to carry out the provisions of this title not to exceed $385,000,000. Of the amounts authorized to be appropriated under this section, not more than $115,000,000 shall be available solely for termination allowances under section 702 of this Act. Any amounts not expended for termination allowances under section 702 shall be available for purposes of section 701 of this Act. In addition to funds authorized under this section, any funds appropriated under section 509(b)(1) of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1945">94 Stat. 1945</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1946">94 Stat. 1946</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s726">45 USC 726</ref>.</p></sidenote>U.S.C. 829(b)(1)) for use under section 216(b)(3) of the Regional Rail Reorganization Act of 1973 shall be available to the Association, and the Association shall make available to the Corporation as a grant such funds to accomplish the purposes of this title. Amounts appropriated under this section are authorized to remain available until expended.</content> </section> <section> <heading class="centered smallCaps">“arbitration</heading><num value="714">“<inline class="smallCaps">Sec</inline>. 714. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s797m">45 USC 797m</ref>.</p></sidenote> <content class="inline">Any dispute or controversy with respect to the interpretation, application, or enforcement of the provisions of this title, except sections 703, 704, 708, and 713, or section 1144 of the Northeast <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 669.</p><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 676.</p></sidenote>Rail Service Act of 1981, and except those matters subject to judicial review under section 1152 of the Northeast Rail Service Act of 1981, which have not been resolved within 90 days, may be submitted by either party to an Adjustment Board for a final and binding decision <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s153">45 USC 153</ref>.</p></sidenote>thereon as provided in section 3 of the Railway Labor Act, in which event the burden of proof on all issues so presented shall be on the Corporation, or the Association, where appropriate.”.</content> </section> (b) The table of contents of the Regional Rail Reorganization Act of 1973 is amended by adding at the end thereof the following new items: “TITLE VII— “Sec. 701. “Sec. 702. “Sec. 703. “Sec. 704. “Sec. 705. “Sec. 706. “Sec. 707. “Sec. 708. “Sec. 709. “Sec. 710. 95 STAT. 669 “Sec. 711. “Sec. 712. “Sec. 713. “Sec. 714.
repealsSec. 1144. (a) (1) Title V of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 771 et seq.), and the items in the table of contents of such Act relating to such title V, are repealed. (2) Notwithstanding the repeal made by paragraph (1) of this

45 USC 771 note.

subsection— (A) benefits accrued as of the effective date of this subsection as a result of events that occurred wholly prior to October 1, 1981, shall be disbursed except as provided in paragraph (3); and (B) any dispute or controversy regarding such benefits shall be determined under the terms of the law in effect on the date the claim arose. (3) Benefits shall not be disbursed under paragraph (2)(A) unless the employee has filed a claim for such benefits within 90 days after the date of repeal; except that, with respect to a claim which is the subject of or is based upon any arbitration decision issued after the date of repeal, such 90-day period shall not commence until such arbitration decision is issued to the employee and the employee’s representative; and no benefits shall be disbursed unless appropriations for such purposes are or become available. (4) The provisions of this subsection shall take effect on the first day

Effective date.

of the first month beginning after the date of enactment of this subtitle. (b) Section 11 of the Milwaukee Railroad Restructuring Act (45 U.S.C. 9101 and section 107 of the Rock Island Transition and Employee Assistance Act (45 U.S.C. 1006) (relating to maintenance of

94 Stat. 402.

certain employee lists) are repealed.
PART 4—TERMS OF LABOR ASSUMPTION Subpart A—Passenger Employees
transfer of passenger service employeesSec. 1145. Title V of the Rail Passenger Service Act, as added by

Ante, p. 647.

this subtitle, is amended by adding at the end thereof the following new sections:
“SEC. 508. TRANSFER OF EMPLOYEES.

45 USC 588.

 “(a) Not later than May 1, 1982, Conrail, commuter authorities that intend to operate commuter service, and representatives of the various crafts or classes of employees of Conrail to be transferred to the commuter authorities shall enter into negotiations for an implementing agreement in accordance with subsection (c) of this section. “(b) Not later than May 1, 1982, Conrail, Amtrak Commuter, and representatives of the various crafts or classes of employees of Conrail to be transferred to Amtrak Commuter shall enter into negotiations for an implementing agreement in accordance with subsection (c) of this section. “(c) Such negotiations shall— “(1) determine the number of employees to be transferred to Amtrak Commuter or a commuter authority; “(2) identify the specific employees of Conrail to whom Amtrak Commuter or a commuter authority offers employment; 95 STAT. 670 “(3) determine the procedure by which such employees may elect to accept employment with Amtrak Commuter or a commuter authority; “(4) determine the procedure for acceptance of such employees into employment with Amtrak Commuter or a commuter authority; “(5) determine the procedure for determining the seniority of such employees in their respective crafts or classes in Amtrak Commuter or with a commuter authority which shall, to the extent possible, preserve their prior seniority rights; “(6) ensure that all such employees are transferred to Amtrak Commuter or a commuter authority no later than January 1, 1983; and “(7) ensure the retention of prior seniority on Conrail of employees transferring to Amtrak Commuter or a commuter authority and determine the extent and manner in which such employees shall be permitted to exercise such seniority in order to (Al provide employees transferred to Amtrak Commuter or a commuter authority at least one opportunity every six-month period to exercise previous freight seniority rights, (B) maximize employment opportunities for employees on furlough, (C) maintain the ability to recall experienced employees, (D) ensure that under no circumstances are seniority rights exercised in any manner which results in any disruption of service or a position being filled which would otherwise not be filled under the terms of any crew consist, fireman manning, or other similar agreement, and (E) ensure that Conrail has the right to furlough one employee in the same craft or class for each employee who returns from Amtrak Commuter or a commuter authority by exercising seniority. “(d) (1) If agreements with respect to the matters being negotiated pursuant to this section are not reached by August 1, 1982, the parties to the negotiations shall, within an additional 5 days, select a neutral referee. If the parties are unable to agree upon the selection of such a referee, the National Mediation Board shall immediately appoint a referee. “(2) The referee shall commence hearings on the matters being negotiated pursuant to this section not later than 5 days after the date he is selected or appointed, and shall render a decision within 20 days after the date of commencement of such hearings. All parties may participate in the hearings, but the referee shall have the only vote. “(3) The referee shall resolve and decide all matters in dispute with respect to the negotiation of the implementing agreement or agreements. The referee’s decision shall be final and binding to the same extent as an award of an adjustment board under section 3 of the

45 USC 153.

Railway Labor Act, and shall constitute the implementing agreement or agreements between the parties. The National Mediation Board shall fix and pay the compensation of such referees. “(e) If Amtrak Commuter transfers commuter service and properties

Ante, p. 650.

to a commuter authority under section 506 of this title, Amtrak Commuter, the commuter authority, and representatives of the various crafts or classes of employees to be transferred to the commuter authority shall enter into an implementing agreement in accordance with subsection (c) of this section. If no agreement is reached by the date service and properties are transferred, the dispute shall be resolved by a neutral referee in accordance with subsection (d) of this section. 95 STAT. 671 “(f) Any employee of Conrail who is not offered employment with Amtrak Commuter or a commuter authority under agreements entered into under this section shall be provided employee protection under section 701 of the Regional Rail Reorganization Act of 1973 to

Ante, p. 661.

the same extent as if such employee had remained in the employ of Conrail.
“SEC. 509. FACTFINDING PANEL.

45 USC 589.

 “(a) Amtrak Commuter or a commuter authority and the representatives of the various classes and crafts of employees to be transferred to Amtrak Commuter or such commuter authority shall, by May 1, 1982, establish a factfinding panel, chaired by a neutral expert in industrial relations, for purposes of recommending changes in operating practices and procedures which would result in greater productivity to the maximum extent practicable. “(b) The National Mediation Board shall appoint public members to the panel established under subsection (a) of this section. “(c) The factfinding panel shall, by July 1, 1982, submit a report to the parties setting forth its recommendations for changes in operating practices and procedures. “(d) The factfinding panel may provide mediation, conciliation, and other assistance to the parties.
“SEC. 510. COLLECTIVE BARGAINING AGREEMENT FOR AMTRAK COMMUTER

45 USC 590.

OR COMMUTER AUTHORITIES. “(a) (1) Not later than September 1, 1982, the commuter authorities that intend to operate commuter service and the representatives of the various classes or crafts of employees to be transferred to such commuter authorities under agreements entered into under section 508 of this Act shall enter into new collective bargaining agreements with respect to rates of pay, rules, and working conditions. “(2) Not later than September 1, 1982, Amtrak Commuter and the representatives of the various classes or crafts of employees to be transferred to Amtrak Commuter under agreements entered into under section 508 of this Act shall enter into new collective bargaining agreements with respect to rates of pay, rules, and working conditions. “(b) If the parties have not reached an agreement by the date specified in subsection (a) of this section, any party to the dispute or the Governor of any State through which the service that is the subject of the dispute is operated may, within 15 days after such date, request the President to establish an emergency board pursuant to subsection (c) of this section. “(c) Within 15 days after the request under subsection (b) of this section, of a party or a Governor, the President shall create an emergency board. Such board shall conduct a public hearing on the dispute at which each party shall appear and provide testimony, and shall, within 30 days after the date of its creation, report on the dispute. “(d) If no settlement in the dispute is reached within 10 days after the report of the emergency board, such board shall require the parties to the dispute to submit, within 5 days, final offers to the board for settlement of the dispute. “(e) Within 15 days after the submission of final offers, the emergency board shall submit a report to the President setting forth its selection of the most reasonable offer. “(f) If the emergency board selects a final offer submitted by a carrier and the employees of such carrier engage in any work 95 STAT. 672stoppage arising out of the dispute, such employees shall not be eligible during the period of such work stoppage for benefits under

45 USC 367.

the Railroad Unemployment Insurance Act. “(g) If the emergency board selects a final offer submitted by the employees and the carrier refuses to accept such offer, the carrier shall not participate in any benefits of any agreement between carriers which is designed to provide benefits to such carriers during a work stoppage. “(h) The provisions set forth in this section shall be the exclusive means for resolving any dispute relating to entering into an initial collective bargaining agreement between Amtrak Commuter or a commuter authority, as the case may be, and representatives of the various classes or crafts of employees to be transferred to Amtrak Commuter or such commuter authority.”.
Subpart B—Freight Employees
labor transferSec. 1146. (a) Title IV of the Regional Rail Reorganization Act of

Ante, p. 654.

1973, as added by this subtitle, is amended by adding at the end thereof the following new sections:
“labor transfer agreements“Sec. 411. (a)

45 USC 769b.

Implementing Agreement.—Within 30 days after the date any freight transfer agreement is entered into under this title, any Class I or Class II railroad purchasing rail properties under such agreement, including any entity that attains such status on the transfer date, and the representatives of the various crafts or classes of employees of the Corporation to be transferred to such railroad or other entity shall commence implementing agreement negotiations. Such negotiations shall— “(1) determine the number of employees to be transferred to such railroad; “(2) identify the specific employees of the Corporation to whom such railroad or other entity offers employment; “(3) determine the procedure by which such employees may elect to accept employment with such railroad or other entity; “(4) determine the procedure for acceptance of such employees into employment with such railroad or other entity; “(5) determine the procedure for determining the seniority of such employees in their respective crafts or classes in the system of such railroad or other entity, which shall, to the extent possible, preserve their prior freight service seniority rights; and “(6) ensure that all such employees are transferred to such railroad or other entity no later than 120 days after the date the transfer agreement is entered into under this title. “(b) Decision of Referee.—(1) If no agreement with respect to the matters being negotiated pursuant to subsection (a) is reached within 30 days after the date such negotiations are commenced, the parties to the negotiations shall, within an additional 10 days, select a neutral referee. If the parties are unable to agree upon the selection of such a referee, the National Mediation Board shall promptly appoint a referee. “(2) The referee shall commence hearings on the matters being negotiated pursuant to subsection (a) within 10 days after the date he is selected or appointed, and shall render a decision within 30 days 95 STAT. 673after the date of commencement of such hearings. All parties may participate in the hearings, but the referee shall have the only vote. “(3) The referee shall resolve and decide all matters in dispute with respect to the negotiation of the implementing agreement or agreements. The referee’s decision shall be final and binding to the same extent as an award of an adjustment board under section 3 of the Railway Labor Act, and shall constitute the implementing agreement

45 USC 153.

or agreements between the parties. The National Mediation Board shall fix and pay the compensation of such referees.
“labor conditions“Sec. 412. (a) New York Dock.—Employees of the Corporation who

45 USC 769c.

are transferred under this title shall be entitled to the labor protection benefits set forth in New York Dock Railway-Control-Brooklyn Eastern Terminal, 360 ICC 60 (1979), except as provided in subsection (b) of this section. “(b) Alternatives.—(1) If the entity to which such employees are transferred was a railroad under the provisions of subtitle IV of title 49, United States Code, prior to the date of transfer, and the parties

49 USC 10101 et seq.

are unable to reach a collective bargaining agreement under procedures referred to in subsection (a), the collective bargaining agreement in effect between such railroad and its employees shall govern. “(2) If the entity to which such employees are transferred was not a railroad under the provisions of subtitle IV of title 49, United States Code, prior to the date of transfer, and the parties are unable to reach a collective bargaining agreement under procedures referred to in subsection (a), the collective bargaining agreement in effect between the Corporation and its employees prior to the date of transfer shall govern. “(c) Class III Exemption.—The provisions of this section shall not apply to any Class III carrier.”.
(b) The table of contents of the Regional Rail Reorganization Act of 1973 is amended by striking out the items relating to title IV and inserting in lieu thereof the following new items: “TITLE IV— “Sec. 401. “Sec. 402. “Sec. 403. “Sec. 404. “Sec. 405. “Sec. 406. “Sec. 407. “Sec. 408. “Sec. 409. “Sec. 410. “Sec. 411. “Sec. 412.
PART 5—UNITED STATES RAILWAY ASSOCIATION
organization of usraSec. 1147. Section 201 of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 711) is amended by striking out subsections (d) through (i), by redesignating subsections (j) and (k) as subsections (g) and (h), respectively, and by inserting after subsection (c) the following new subsections: 95 STAT. 674 “(d) Board of Directors.—(1) The Board of Directors of the Association shall consist of five individuals, as follows: “(A) The Chairman, who shall be the individual serving as Chairman on the effective date of this subsection, until the expiration of his term of office or his resignation, or his replacement, who shall be selected by the outgoing Chairman and the other members of the Board. “(B) The Secretary of Transportation. “(C) The Comptroller General of the United States. “(D) The Chairman of the Commission. “(E) The Chairman of the Board of Directors of the Corporation. “(2) The Chairman may not have any employment or other direct financial relationship with any railroad. The Chairman shall receive $300 per diem when engaged in the actual performance of his duties plus reimbursement for travel, subsistence, and other necessary expenses incurred in the performance of such duties. “(e) Term of Office.—The term of office of the Chairman of the Board of Directors of the Association shall expire on December 31, 1983. The Chairman may be reappointed and the term of the Chairman shall be 3 years. “(f) Quorum.—Three members of the Board of Directors, or their representatives, shall constitute a quorum for the transaction of any function of the Association. “(g) The Board of Directors shall, on the effective date of this subsection, assume the functions previously performed by the Finance Committee. “(h) The members of the Board of Directors may send representatives to meetings of such Board, and such representatives may exercise full powers of the members.”.
functions of usraSec. 1148. (a) Section 202 of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 712) is amended— (1) by striking out subsections (a) and (b) and inserting in lieu thereof the following new subsection: “(a) General.—The Association is authorized to— “(1) monitor the financial performance of the Corporation; “(2) review whether the goals and requirements of this Act are met; “(3) purchase or otherwise acquire or receive, and hold and dispose of securities (whether debt or equity) of the Corporation

45 USC 726.

Ante, p. 653.

under sections 216 and 217 of this Act and exercise all of the rights, privileges, and powers of a holder of any such securities; “(4) purchase accounts receivable of the Corporation in accordance with section 217 of this Act; and “(5) appoint and fix the compensation of such personnel as the Association considers necessary and appropriate.”; and (2) by redesignating subsections (c) through (j) as subsections (b) through (i), respectively. (b) The section heading of section 202 of the Regional Rail Reorganization Act of 1973 is amended by striking out “general powers and duties” and inserting in lieu thereof “functions”. (c) The item relating to section 202 in the table of contents of the Regional Rail Reorganization Act of 1973 is amended to read as follows: “Sec. 202.
95 STAT. 675
access to informationSec. 1149. Section 203 of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 713) is amended to read as follows:
“access to information“Sec. 203. The Corporation shall make available to the Association such information as the Association determines necessary for the Association to carry out its functions under this Act. The Association shall request from other parties which are affected by this Act information which will enable the Association to fulfill its functions under this Act.”.
united states railway association reportsSec. 1150. (a) Title II of the Regional Rail Reorganization Act of 1973, as amended by this subtitle, is amended further by adding at

Ante, p. 652.

the end thereof the following new sections:
“united states railway association reports“Sec. 218. (a) Progress and Evaluation.—(1) The Association

45 USC 728.

shall prepare and submit to Congress periodic reports on the progress of the Secretary in carrying out the provisions of titles II, III, and IV of this Act. “(2) Reports submitted under paragraph (1) of this subsection shall

45 USC 711, 741.

Ante, p. 654.

also include an evaluation of the performance of the Corporation in order to keep the Congress informed as to matters which may affect the quality of rail service in the Northeast and which may affect the security of Federal funds invested in the Corporation. “(b) Transfer Agreements.—(1) The Association shall prepare and submit to Congress a final report on the transfer agreements which the Secretary is required to transmit to Congress under section 407 of the Regional Rail Reorganization Act of 1973. Such report shall

Ante, p. 658.

be submitted on the same date as the Secretary’s transmittal of such agreements to Congress. “(2) The report submitted under paragraph (1) of this subsection shall include an evaluation of the effect of the transfer agreements on rail service in the Northeast, railroad employees, the economy of the Region, other railroads in the Northeast and elsewhere, and an other matter which the Association considers appropriate. Such report shall also include recommendations with respect to approval, disapproval, or modification of the transfer agreements.
“advisory board“Sec. 219. Members of the Board of Directors of the Association

45 USC 729.

serving on the day before the effective date of the Northeast Rail Service Act of 1981, shall serve as an Advisory Board to the Association.

Ante, p. 643.

A member of the Advisory Board who is not otherwise an employee of the Federal Government shall receive reimbursement for travel, subsistence, and other necessary expenses incurred in the performance of such duties. The Chairman of the Association shall serve as Chairman of the Advisory Board. Any vacancy on the Advisory Board shall be filled by the Association with a representative from the group which had a representative in the vacant position.”.
95 STAT. 676 (b) The table of contents of the Regional Rail Reorganization Act of 1973, as amended by section 1140(b) of this subtitle, is amended further by inserting immediately after the item relating to section 217 the following new items: “Sec. 218. “Sec. 219.
usra authorizationSec. 1151. Section 214(c) of the Regional Rail Reorganization Act of

94 Stat. 1965.

1973 (45 U.S.C. 724(c)) is amended to read as follows: “(c) Association.—There are authorized to be appropriated to the Association for purposes of carrying out its administrative expenses under this Act not to exceed $13,000,000 for the fiscal year ending September 30, 1982, and not to exceed $4,000,000 for the fiscal year ending September 30, 1983. Sums appropriated under this subsection are authorized to remain available until expended.”.
PART 6—MISCELLANEOUS PROVISIONS
judicial reviewSec. 1152. (a)

45 USC 1105.

 Notwithstanding any other provision of law, the special court shall have original and exclusive jurisdiction over any civil action— (1) for injunctive, declaratory, or other relief relating to the enforcement, operation, execution, or interpretation of any provision of or amendment made by this subtitle, or administrative action taken thereunder to the extent such action is subject to judicial review; (2) challenging the constitutionality of any provision of or amendment made by this subtitle; (3) to obtain, inspect, copy, or review any document in the possession or control of the Secretary, Conrail, the United States Railway Association, or Amtrak that would be discoverable in litigation under any provision of or amendment made by this subtitle; or (4) seeking judgment upon any claim against the United States founded upon the Constitution and resulting from the operation of any provision of or amendment made by this subtitle. (b) A judgment of the special court in any action referred to in this section shall be reviewable only upon petition for a writ of certiorari to the Supreme Court of the United States, except that any order or judgment enjoining the enforcement, or declaring or determining the unconstitutionality or invalidity, of any provision of this subtitle shall be reviewable by direct appeal to the Supreme Court of the United States. Such review is exclusive and any petition or appeal shall be filed not more than 20 days after entry of such order or judgment. (c) Administrative action under the provisions of or amendments made by this subtitle which is subject to review shall be upheld unless such action is found to be unlawful under standards established for review of informal agency action under paragraphs (2) (A), (B), (C), and (D) of section 706, title 5, United States Code. The requirements of this subtitle shall constitute the exclusive procedures required by law for such administrative action. (d) If the volume of civil actions under subsection (a) of this section so requires, the United States Railway Association shall apply to the 95 STAT. 677judicial panel on multi-district litigation authorized by section 1407 of title 28, United States Code, for the assignment of additional judges to the special court. Within 30 days after the date of such application, the panel shall assign to the special court such additional judges as may be necessary to exercise the jurisdiction described in subsection (a) of this section.
transfer taxes and fees; recordationSec. 1153. (a) (1) All transfers or conveyances of any interest in rail

45 USC 1106.

property (whether real, personal, or mixed) which are made under any provision of or amendment made by this subtitle shall be exempt from any taxes, imposts, or levies now or hereby imposed, by the United States or by any State or any political subdivision of a State, on or in connection with such transfers or conveyances or on the recording of deeds, bills of sale, liens, encumbrances, easements, or other instruments evidencing, effectuating, or incident to any such transfers or conveyances, whether imposed on the transferor or on the transferee. Such transferors and transferees shall be entitled to record any such deeds, bills of sale, liens, encumberances, easements, or other instruments, and to record the release or removal of any preexisting liens or encumbrances of record with respect to properties so transferred or conveyed, upon payment of any appropriate and generally applicable charges to compensate for the cost of the service performed. (2) This section shall not apply to Federal income tax laws. (b) Transfer of designated real property (including any interest in real property) authorized by the amendments made by part 2 of this subtitle shall have the same effect for purposes of rights and priorities with respect to such property as recordation on the transfer date of appropriate deeds, or other appropriate instruments, in offices appointed under State law for such recordation, except that acquiring rail carriers and other entities shall proffer such deeds or other instruments for recordation within 36 months after the transfer date as a condition of preserving such rights and priorities beyond the expiration of that period. Conrail shall cooperate in effecting the timely preparation, execution, and proffering for recordation of such deeds and other instruments.
satisfaction of claimsSec. 1154. No distribution of the assets of Conrail shall be made

45 USC 1107.

with respect to any claims of the United States, including the securities issued pursuant to section 216 of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 726), until all other valid claims, including loss, damage, overcharge claims, and lease claims, against Conrail have been satisfied, or provision has been made for satisfying such claims.
expedited supplemental transactionsSec. 1155. (a) Section 305(f) of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 745(f)) is amended— (1) by striking out paragraph (2) and inserting in lieu thereof the following: “(2) (A) Within 10 days after the effective date of the Northeast Rail Service Act of 1981, the Secretary shall initiate discussions and

Ante, p. 643.

negotiations for the transfer of some or all of the Corporation’s rail 95 STAT. 678properties and freight service obligations in the States of Connecticut and Rhode Island to one or more parties under a plan which provides for continued rail freight service on all lines operated by the Corporation

Ante, p. 643.

on the effective date of the Northeast Rail Service Act of 1981 for at least four years. “(B) Within 120 days after the effective date of the Northeast Rail Service Act of 1981, the Secretary shall petition the special court for an order to transfer all of the Corporation’s rail properties and freight service obligations in the States of Connecticut and Rhode Island to one or more railroads in the Region— “(i) which have under subparagraph (A) of this paragraph completed negotiations and submitted to the Secretary a proposal to assume all of the freight operations and freight service obligations of the Corporation in such States on a financially self-sustaining basis for a period of at least four years; or “(ii) which have developed a proposal to assume all of the freight operations and freight service obligations of the Corporation in such States under an agreement by and between the Corporation and such railroad or railroads; or “(iii) which have, prior to May 1, 1981, submitted a proposal to the Secretary for such a transfer. For the purpose of this section, an order to transfer may include the Corporation if the Corporation agrees to maintain service over lines retained by the Corporation for four years. “(C) To permit efficient and effective rail operations consistent with the public interest, as a part of any transfer under paragraph (2)(B) of this subsection, the Secretary shall promote the transfer of additional non-mainline Corporation properties in adjoining States that connect with properties that are the subject of such transfer. “(D) The special court shall determine a fair and equitable price for the rail properties to be transferred under this subsection, and shall, unless the parties otherwise agree, establish divisions of joint rates for through routes over such properties which are fair and equitable to the parties. The special court shall establish a method to ensure that such divisions are promptly paid. “(E) Notwithstanding any other provision of law or agreement in effect on May 1, 1981, the special court shall require that the railroad or railroads to which properties are to be transferred under this subsection assume all charges payable by the Corporation to Amtrak for the carriage of property by rail over those portions of the Northeast Corridor in Connecticut and Rhode Island. If the Corporation operates any rail freight service over those portions of the Northeast Corridor in Connecticut and Rhode Island after the date of such transfer, the Corporation shall pay Amtrak any compensation that may be separately agreed upon by the Corporation and Amtrak, and the railroad or railroads to which properties are transferred under this subsection shall not be obligated to pay any compensation owed by the Corporation to Amtrak for such post-transfer operations by the Corporation.”; and (2)

45 USC 745.

 by striking out paragraph (4) and inserting in lieu thereof the following new paragraph: “(4) (A) Any employee who was protected by the compensatory

45 USC 771.

provisions of title V of this Act immediately prior to the effective date of the Northeast Rail Service Act of 1981, and who is deprived of employment as a result of the transfer of rail properties under this

Ante, p. 661.

“Employee deprived of employment.”

subsection shall be eligible for benefits under section 701 of this Act. “(B) As used in this paragraph, ‘employee deprived of employment’ means any employee who is unable to secure employment through 95 STAT. 679the normal exercise of seniority rights, but does not include any employee who refuses an offer of employment with a railroad acquiring properties under this subsection”. (b) Section 305(d) of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 745(d)) is amended by striking out paragraph (7). (c) Section 305 of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 745), as amended by this section, is further amended by adding after subsection (f) the following new subsection: “(g) (1) Within 20 days after the effective date of the Northeast Rail Service Act of 1981, the Secretary shall initiate discussions and

Ante, p. 643.

negotiations for the expedited transfer of all properties and freight service obligations of the Corporation with respect to the following lines: Canaan, Connecticut, to Pittsfield, Massachusetts; North Adams Junction, Massachusetts, to North Adams, Massachusetts; Hazardville, Connecticut, to Springfield, Massachusetts; Westfield, Massachusetts, to Easthampton, Massachusetts; Westfield, Massachusetts, to Holyoke, Massachusetts. “(2) Within 120 days after the effective date of the Northeast Rail Service Act of 1981, the Secretary shall transfer, provided a qualified purchaser offers to purchase, the Corporation’s properties and freight service obligations described in paragraph (1) of this subsection to another railroad or railroads in the Region which are determined by the Secretary to be qualified. A qualified purchaser is defined as a railroad financially self-sustaining which guarantees continuous service for at least four years. “(3) The Secretary shall determine a fair and equitable price for the rail properties to be transferred under this subsection, and shall, unless the parties otherwise agree, establish divisions of joint rates for through routes over such properties which are fair and equitable to the parties. “(4) The Secretary shall determine fair and equitable terms for the provision of such trackage rights, on segments of the Corporation’s lines not to exceed 5 miles per line transferred, to acquiring carriers as may be necessary to operate such transferred lines in an efficient manner.”.
abandonmentsSec. 1156. (a) Title III of the Regional Rail Reorganization Act of 1973 is amended by adding at the end thereof the following new section:
“abandonments“Sec. 308. (a) General.—The Corporation may, in accordance with

45 USC 748.

this section, file with the Commission an application for a certificate of abandonment for any line which is part of the system of the Corporation. Any such application shall be governed by this section and shall not, except as specifically provided in this section, be subject to the provisions of chapter 109 of title 49, United States Code. “(b) Applications for Abandonment.—Any application for abandonment that is filed by the Corporation under this section before December 1, 1981, shall be granted by the Commission within 90 days after the date such application is filed unless, within such 90-day period, an offer of financial assistance is made in accordance with subsection (d) of this section with respect to the line to be abandoned. “(c) Notice of Insufficient Revenues.—(1) The Corporation may, prior to November 1, 1983, file with the Commission a notice of insufficient revenues for any line which is part of the system of the Corporation. 95 STAT. 680 “(2) At any time after the 90-day period beginning with the filing of a notice of insufficient revenues for a line, the Corporation may file an application for abandonment for such line. An application for abandonment that is filed by the Corporation under this subsection for a line for which a notice of insufficient revenues was filed under paragraph (1) shall be granted by the Commission within 90 days after the date such application is filed unless, within such 90-day period, an offer of financial assistance is made in accordance with subsection (d) of this section with respect to such line. “(d) Offers of Financial Assistance.—(1) The provisions of section 10905 (d)–(f) of title 49, United States Code (including the timing requirements of subsection (d) thereof), shall apply to any offer of financial assistance under subsection (b) or (c) of this section. “(2) The Corporation shall provide any person that intends to make an offer of financial assistance under subsection (b) or (c) of this section with such information as the Commission may require. “(e)

Publication in Federal Register.

Liquidation.—(1) If any application for abandonment is granted under subsection (b) of this section, the Commission shall, as soon as practicable, appraise the net liquidation value of the line to be abandoned, and shall publish notice of such appraisal in the Federal Register. “(2) Appraisals made under paragraph (1) shall not be appealable. “(3) (A) If, within 120 days after the date on which an appraisal is published in the Federal Register under paragraph (1), the Corporation receives a bona fide offer for the sale, for 75 percent of the amount at which the liquidation value of such line was appraised by the Commission, of the line to be abandoned, the Corporation shall sell such line and the Commission shall, unless the parties otherwise agree, establish an equitable division of joint rates for through routes over such lines. “(B) If the Corporation receives no bona fide offer under subparagraph (A), within such 120-day period, the Corporation may abandon or dispose of the line as it chooses, except that the Corporation may not dismantle bridges, or other structures (not including rail, signals, and other rail facilities) for 120 days thereafter. The Secretary may require that bridges or other structures (not including rail, signals, and other rail facilities), not be dismantled for an additional 8 months if he assumes all liability of any sort related to such property. “(4) If the purchaser under paragraph (3)(A) of this subsection of any line of the Corporation abandons such line within five years after such purchase, the proceeds of any track liquidations shall be paid into the general fund of the Treasury of the United States. “(f) Employee Protection.—The provisions of section 10903(b)(2) of title 49, United States Code, shall not apply to any abandonment granted under this section. Any employee who was protected by the

45 USC 771.

Ante, p. 643.

compensatory provisions of title V of this Act immediately prior to the effective date of the Northeast Rail Service Act of 1981, who is deprived of employment by such an abandonment shall be eligible for employee protection under section 701 of this Act.”.
(b) The table of contents of the Regional Rail Reorganization Act of 1973, as amended by this subtitle, is further amended by inserting immediately after the item relating to section 307 the following new item: “Sec. 308.
95 STAT. 681
amendment to the railway labor actSec. 1157. The Railway Labor Act is amended by inserting immediately after section 9 the following new section:
“special procedure for commuter service“Sec. 9A. (a) Except as provided in section 510(h) of the Rail

45 USC 159a.

Ante, p. 671.

Passenger Service Act, the provisions of this section shall apply to any dispute subject to this Act between a publicly funded and publicly operated carrier providing rail commuter service (including the Amtrak Commuter Services Corporation) and its employees. “(b) If a dispute between the parties described in subsection (a) is not adjusted under the foregoing provisions of this Act and the President does not, under section 10 of this Act, create an emergency

45 USC 160.

board to investigate and report on such dispute, then any party to the dispute or the Governor of any State through which the service that is the subject of the dispute is operated may request the President to establish such an emergency board. “(c) (1) Upon the request of a party or a Governor under subsection (b), the President shall create an emergency board to investigate and report on the dispute in accordance with section 10 of this Act. For purposes of this subsection, the period during which no change, except by agreement, shall be made by the parties in the conditions out of which the dispute arose shall be 120 days from the date of the creation of such emergency board. “(2) If the President, in his discretion, creates a board to investigate and report on a dispute between the parties described in subsection (A), the provisions of this section shall apply to the same extent as if such board had been created pursuant to paragraph (1) of this subsection. “(d) Within 60 days after the creation of an emergency board under this section, if there has been no settlement between the parties, the National Mediation Board shall conduct a public hearing on the dispute at which each party shall appear and provide testimony setting forth the reasons it has not accepted the recommendations of the emergency board for settlement of the dispute. “(e) If no settlement in the dispute is reached at the end of the 120-day period beginning on the date of the creation of the emergency board, any party to the dispute or the Governor of any State through which the service that is the subject of the dispute is operated may request the President to establish another emergency board, in which case the President shall establish such emergency board. “(f) Within 30 days after creation of a board under subsection (e), the parties to the dispute shall submit to the board final offers for settlement of the dispute. “(g) Within 30 days after the submission of final offers under subsection (f), the emergency board shall submit a report to the President setting forth its selection of the most reasonable offer. “(h) From the time a request to establish a board is made under subsection (e) until 60 days after such board makes its report under subsection (g), no change, except by agreement, shall be made by the parties in the conditions out of which the dispute arose. “(i) If the emergency board selects the final offer submitted by the carrier and, after the expiration of the 60-day period described in subsection (h), the employees of such carrier engage in any work stoppage arising out of the dispute, such employees shall not be 95 STAT. 682eligible during the period of such work stoppage for benefits under the Railroad Unemployment Insurance Act. “(j) If the emergency board selects the final offer submitted by the employees and, after the expiration of the 60-day period described in subsection (h), the carrier refuses to accept the final offer submitted by the employees and the employees of such carrier engage in any work stoppage arising out of the dispute, the carrier shall not participate in any benefits of any agreement between carriers which is designed to provide benefits to such carriers during a work stoppage.”.
concerted economic actionSec. 1158. (a)

45 USC 1108.

 Any person engaging in concerted economic action over disputes with Amtrak Commuter or any commuter authority shall not be entitled to engage in any strike against, or otherwise to induce any employee of, Conrail, where an effect thereof is to interfere with rail freight service provided by Conrail. (b) Any person engaging in concerted economic action over disputes arising out of freight operations provided by Conrail shall not be entitled to engage in any strike against, or otherwise to induce any employee of, Amtrak Commuter or any commuter authority, where an effect thereof is to interfere with rail passenger service. (c)

45 USC 151.

 Any concerted action in violation of this section shall be deemed to be a violation of the Railway Labor Act.
construction and effect of certain provisionsSec. 1159.

45 USC 1109.

 Any cost reductions resulting from the provisions of or the amendments made by this subtitle shall not be used to limit the maximum level of any rate charged by Conrail for the provision of rail service, to limit the amount of any increase in any such rate (including rates maintained jointly by Conrail and other rail carriers), or to limit a surcharge or cancellation otherwise lawful under

49 USC 10701 et seq.

chapter 107 of title 49, United States Code.
labor authorizationSec. 1160.

45 USC 771 note.

 There are authorized to be appropriated to the Secretary of Transportation for the fiscal year ending September 30, 1982, not to exceed $25,000,000 for the payment of allowances, expenses, and costs that protected employees are entitled to receive under any

45 USC 771.

provision of title V of the Regional Rail Reorganization Act of 1973 as in effect on the day before the effective date of this subtitle.
light density rail serviceSec. 1161. (a)

45 USC 1110.

 At any time after the effective date of this subsection, the Secretary may enter negotiations for the transfer of— (1) any rail lines of Conrail which are the subject of an abandonment proceeding pending before the Commission other than an abandonment proceeding subject to section 308 of the

Ante, p. 679.

Regional Rail Reorganization Act of 1973; and (2) any rail lines of Conrail which are designated in Category I under Commission regulation. The Secretary may transfer any such lines in accordance with the terms of an agreement entered into by the Secretary under this subsection. (b) (1) All reasonable expenses which are incurred in negotiations for the purchase of rail properties by a railroad which subsequently 95 STAT. 683purchases such properties in accordance with the provisions of this section shall be credited against the total purchase price for such properties if such purchaser entered into such negotiations in good faith within six months after the effective date of this section. (2) Expenses for labor protection, for a maximum of a twelve-month period, incurred by a purchaser of rail properties in accordance with the provisions of this section as a result of protective conditions imposed pursuant to section 412 of the Regional Rail Reorganization Act of 1973 shall be credited against the total purchase price for such

Ante, p. 673.

properties if such purchaser entered into such negotiations in good faith within six months after the effective date of this section. (c) As a part of each transfer negotiation authorized and directed by section 405 of the Regional Rail Reorganization Act of 1973, the

Ante, p. 657.

Secretary shall promote the inclusion of those additional Conrail lines that connect with, and only with, the line or lines that are the subject of particular transfer negotiations (hereinafter in this section referred to as “associated branch lines”), and which are financially viable. (d) In the event that a transfer agreement granted final approval by the Secretary under section 1142 of this subtitle does not provide for the continuation of rail service on an associated branch line, or other Conrail line not designated for transfer, that an affected State, shipper, or connecting railroad (other than a Class I or II railroad) concludes is essential, that State, shipper, or connecting railroad, or any combination of such States, shippers, or railroads, may immediately enter negotiations with the Secretary for the transfer of identified associated branch lines or other Conrail line not designated for transfer without rail-common carrier status under the requirements of subtitle IV of title 49, United States Code, to an entity

49 USC 10101 et seq.

designated by the State, shipper, railroad, or combination thereof, for continued operation free of the common carrier obligations and other requirements, except those provided for in subsection (f), of subtitle IV of title 49, United States Code. Conrail shall convey an associated branch line or other Conrail line not designated for transfer in accordance with the terms of an agreement entered into by the Secretary under this subsection. (e) The Secretary may transfer lines in accordance with the provisions of this section for nominal consideration, if justified by the public benefit associated with continued rail service. (f) The Commission shall establish fair and equitable divisions of revenues on joint rates until a final order is issued.
rehabilitation and improvement financingSec. 1162. (a) Section 505(b)(2) of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 82501)(2)) is amended— (1) in the third sentence, by striking “When making” and all that follows through “available for railroad financing, and” and inserting in lieu thereof the following: “When making such a determination, the Secretary shall evaluate and consider in the following order of priority (A) the availability of funds from other sources at a cost which is reasonable under principles of prudent railroad financial management in light of the railroad’s projected rate of return for the project to be financed and the railroad’s rate of return on total capital (represented by the ratio which such carrier’s net income, including interest on a long-term debt, bore to the sum of average shareholder’s equity, long-term debt, and accumulated deferred income tax for fiscal year 95 STAT. 6841975) as determined in accordance with the uniform system of accounts promulgated by the Commission, (B) the interest of the public in supplementing such other funds as may be available in order to increase the total amount of funds available for railroad financing, and”; and (2) by adding at the end thereof the following: “The Secretary shall assign the highest priorities to those meritorious applications of carriers operating under section 77 of the Bankruptcy Act unable to generate such funds in the private sector and to those meritorious applications for funds to provide for the restructuring of rail freight facilities and systems which handle more than two million rail cars annually, which are located in more than one State, and which are separated by the Mississippi River.”. (b) Section 501(8) of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 821(8)) is amended to read as follows: “(8) ‘restructuring’ means (A) any activity (including a consolidation, coordination, merger or abandonment) which (i) involves rehabilitation, or improvement of a facility or the transfer of a facility, and (ii) improves the long-term profitability of any railroad freight system through the achievement of higher average traffic densities or improved asset utilization; or (B) the transfer from the Corporation to any railroad or financially responsible person (as defined in section 10910(a)(1) of title 49, United States Code) for common carrier rail service of ownership or operating rights on any rail line owned or operated by the Corporation where the Secretary determines that such acquisition will provide needed transportation benefits, and that such line will not require further Federal subsidy;”. (c) Section 505(a)(1) of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 825(a)(1)) is amended by inserting immediately after “railroad” the following: “(or any financially responsible person, as defined in section 10910(a)(1) of title 49, United States Code, who acquires from the Corporation for common carrier rail service any rail line owned by the Corporation on the effective

Ante, p. 643.

date of the Northeast Rail Service Act of 1981)”. (d) Section 505(b)(2) of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 825(b)(2)) is amended by amending clause (C) to read as follows: “(C) the public benefits, including any significant railroad restructuring, to be realized from the project to be financed in relation to the public costs of such financing and whether the proposed project will return public benefits sufficient to justify such public costs or, where the application relates to a rail line owned or operated by the Corporation immediately prior to its acquisition by a railroad or financially responsible person (as defined in section 10910(a)(1) of title 49, United States Code) for common carrier rail service, whether the financial assistance applied for under this section will further the public interest in transferring rail lines from the Corporation to the private sector, and avoid the need for any further Federal subsidy.”. (e) Section 509(b) of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 829(b)) is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following: “(3) Not more than 50 percent of the funds received by the Secretary from amounts appropriated under subsection (a) of this section shall be reserved to provide rehabilitation and improvement 95 STAT. 685assistance for facilities transferred from the Corporation after the effective date of the Northeast Rail Service Act of 1981.”.

Ante, p. 643.

 (f) Section 509(b)(4) of the Railroad Revitalization and Regulatory Reform Act of 1976, as redesignated by subsection (e) of this section, is

45 USC 829.

amended by striking “and (2)” and inserting in lieu thereof “, (2) and (3)”.
northeast corridor cost disputeSec. 1163. (a) (1) Within 120 days after the effective date of this

45 USC 1111.

subtitle, the Commission shall determine an appropriate costing methodology for compensation to Amtrak for the right-of-way related costs for the operation of commuter rail passenger service over the Northeast Corridor and other properties owned by Amtrak, unless Conrail, Amtrak, and affected commuter authorities have otherwise agreed on such a methodology by that date. In making its determination, the Commission shall consider all relevant factors, including the standards of sections 205(d) and 304(c) of the Regional Rail Reorganization Act of 1973, section 701(a)(6) of the Railroad Revitalization and

45 USC 715, 744.

45 USC 851.

45 USC 562.

Regulatory Reform Act of 1976, and section 402(a) of the Rail Passenger Service Act. (2) Within 120 days after the effective date of this subtitle, the Commission shall determine a fair and equitable costing methodology for compensation to Amtrak by Conrail for the right-of-way related costs for the operation of rail freight service over the Northeast Corridor, unless Conrail and Amtrak have otherwise agreed on such a methodology by that date. In making its determination, the Commission shall take into consideration the industry-wide average compensation for freight trackage rights and any additional costs associated with high-speed service provided over the Northeast Corridor. (b) Any determination by the Commission under this section shall be effective on the date of such determination, and any agreement of the parties under this section shall be effective on the date specified in such agreement. Any such determination or agreement shall not apply to any compensation paid to Amtrak prior to the date of such determination or the date so specified, as the case may be, for the right-of-way related costs described in subsection (a) of this section. (c) Nothing in this section shall preclude parties from entering into an agreement, after the determination of the Commission or their initial agreement under this section, with respect to the right-of-way related costs described in subsection (a) of this section. (d) Any determination by the Commission under this section shall be final and shall not be reviewable in any court.
commission proceedingsSec. 1164. (a) Notwithstanding any other provision of subtitle IV of

45 USC 1112.

title 49, United States Code, in any proceeding before the Commission under section 11344 or 11345 of such subtitle involving a railroad in the Region, as defined in section 102 of the Regional Rail Reorganization Act of 1973, which was in a bankruptcy proceeding under section

45 USC 702.

77 of the Bankruptcy Act on November 4, 1979, the Commission shall, with or without a hearing, issue a final decision within a period not to exceed 180 days after receipt of an application under either such section. (b) Notwithstanding any other provision of subtitle IV of title 49, United States Code, in any proceeding before the Commission under

49 USC 10101 et seq.

95 STAT. 686section 11344 or 11345 of such subtitle involving a profitable railroad in the Region, as defined in section 102 of the Regional Rail Reorganization

45 USC 702, 721.

Act of 1973, which received a loan under section 211(a) of such Act, the Commission shall, with or without a hearing, issue a final decision within a period not to exceed 180 days after receipt of an application under either such section. (c) (1) If the Secretary determines under subsection (b) that there is an agreement between a profitable railroad in the Region (as defined in section 102 of the Regional Rail Reorganization Act of 1973) which received a loan under section 211(a) of such Act and a prospective purchaser for the sale of such railroad, the Secretary shall limit the interest of the United States in any debt of such a railroad to an interest which attaches to such debt in the event of bankruptcy, substantial sale, or liquidation of the assets of the railroad. The Secretary shall substitute for the evidence of such debt contingency notes conforming to the limited terms set forth in this subsection. (2) If the interest of the United States is limited under paragraph (1), any new debt issued by such a railroad subsequent to the issuance of the debt described in paragraph (1) shall have higher priority in the event of bankruptcy, liquidation, or abandonment of the assets of Conrail than the debt described in such paragraph.
intercity passenger service employeesSec. 1165.

45 USC 1113.

 After January 1, 1983, Conrail shall be relieved of the responsibility to provide crews for intercity passenger service on the Northeast Corridor. Amtrak, Amtrak Commuter, and Conrail, and the employees with seniority in both freight and passenger service shall commence negotiations not later than 120 days after the date of the enactment for the right of such employees to move from one service to the other once each six-month period. Such agreement shall ensure that Conrail, Amtrak, and Amtrak Commuter have the right to furlough one employee in the same class or craft for each employee who returns through the exercise of seniority rights. If agreement is not reached within 360 days, such matter shall be submitted to binding arbitration.
trackage rightsSec. 1166.

45 USC 1114.

 At any time after the effective date of this subtitle, the Commission may approve, under the provisions of existing law, the grant of trackage rights to any terminal railroad operating primarily in the city of Philadelphia over the individual lines of Conrail located in the city and port of Philadelphia.
technical amendmentsSec. 1167. (a) Section 303(c) of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 743(c)) is amended by striking the following wherever they appear: “securities,”; “securities and”; “at least one share of series B preferred stock and”; “other securities of the Corporation or”; and “securities or”. (b)

45 USC 1115.

 For the purpose of computing the amount for which certificates of value shall be redeemable under section 306 of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 746), the series B preferred stock and the common stock conveyed to the Secretary under section 1154 of this subtitle shall be deemed to be without fair market value unless in a proceeding brought under section 1152(a)(4) of this subtitle 95 STAT. 687the special court shall have determined that such securities had a value and shall have entered a judgment against the United States for that value. In such an event, the securities shall for purposes of section 306 of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 746) be deemed to have that value found by the special court. (c) (1) The clerk of the special court shall convey to the Secretary within 10 days after the effective date of this subtitle the series B preferred stock and the common stock of Conrail which are then on deposit with the special court pursuant to section 303 of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 743). (2) The Secretary is authorized to hold and to exercise all rights that pertain to the Conrail securities conveyed under paragraph (1) of this subsection, and any other securities of Conrail that have been or may be conveyed to the Secretary under any agreement or pursuant to the terms of part 5 of this subtitle or the terms of any other law.

Ante, p. 673.
applicability of other lawsSec. 1168. (a) The provisions of the chapters 5 and 7 of title 5 of the

45 USC 1116.

51 USC 500 et seq., 701 et seq.

5 USC app.

42 USC 4332.

16 USC 470 note.

49 USC 1653.

United States Code (popularly known as the Administrative Procedure Act and including provisions popularly known as the Government in the Sunshine Act), the Federal Advisory Committee Act, section 102(2)(C) of the National Environmental Policy Act of 1969, the National Historic Preservation Act of 1966, and section 4(f) of the Department of Transportation Act of 1966 are inapplicable to actions taken in negotiating, approving, or implementing service transfers under title IV of the Regional Rail Reorganization Act of 1973.

Ante, p. 654.

 (b) The operation of trains by Conrail shall not be subject to the requirement of any State or local law which specifies the minimum number of crew members who must be employed in connection with the operation of such trains.
effective dateSec. 1169. Except as otherwise provided, the provisions of and the

45 USC 1101 note.

amendments made by this subtitle shall take effect on the date of the enactment of this subtitle.
Subtitle F—

Amtrak Improvement Act of 1981.

 Amtrak
short titleSec. 1170. This subtitle may be cited as the “Amtrak Improvement

45 USC 501 note.

Act of 1981”.
findingsSec. 1171. Section 101 of the Rail Passenger Service Act (45 U.S.C. 501) is amended to read as follows: “(a) The Congress finds that the public convenience and necessity require that the National Railroad Passenger Corporation provide, to the extent that the Corporation’s budget allows, modern, cost-efficient, and energy-efficient intercity railroad pasenger service between crowded urban areas and in other parts of the country; that rail passenger service can help in alleviating the overcrowding of airways, airports, and highways; and that to the maximum extent feasible travelers in America should have the freedom to choose the mode of transportation most convenient to their needs. 95 STAT. 688 “(b) The Congress further finds that a greater degree of cooperation is necessary among railroads, the Corporation, State, regional, and local governments and the private sector, labor organizations, and suppliers of services and equipment to the Corporation in order to achieve the level of performance sufficient to justify expenditure of public funds. “(c) The Congress further finds that— “(1) modern, efficient commuter rail passenger service is important to the viability and well-being of major urban areas and to the national goals of energy conservation and self-sufficiency; “(2) Amtrak, as a passenger service entity, should be available to operate commuter service through its subsidiary Amtrak Commuter under contract with commuter agencies which do not choose to operate such service themselves as a part of the governmental functions of the State; “(3) the Northeast Corridor is a valuable national resource used by intercity passenger, commuter passenger, and freight services; and “(4) greater coordination between intercity and commuter passenger services are required.”.
additional goals for amtrakSec. 1172. Section 102 of the Rail Passenger Service Act (45 U.S.C.

45 USC 501a.

501) is amended— (1) by striking out paragraphs (1) and (3) and redesignating paragraphs (2), (4), (5), and (6) as paragraphs (8) through (11), respectively; (2) by inserting immediately before paragraph (8), as so redesignated, the following new paragraphs: “(1) Exercise of the Corporation’s best business judgment in taking actions to minimize Federal subsidies, including increasing fares, increasing revenues from the carriage of mail and express, reducing losses on food service, improving its contracts with operating railroads, reducing management costs, and increasing employee productivity. “(2) Encouragement of State, regional, and local governments and the private sector to share the costs of operating rail passenger service, including the costs of operating stations and other facilities, in order to minimize Federal subsidies. “(3) Improvement of the number of passenger miles generated systemwide per dollar of Federal funding by at least 30 percent within the two-year period beginning on the effective date of the Amtrak Improvement Act of 1981. “(4) Elimination of the deficit associated with food and beverage services by September 30, 1982. “(5) Implementation of strategies to achieve immediately maximum productivity and efficiency consistent with safe and efficient service. “(6) Operation of Amtrak trains, to the maximum extent feasible, to all station stops within 15 minutes of the time established in public timetables for such operation. “(7) Development of service on rail corridors, subsidized by States or private parties, or both.”; (3) in paragraph (8), as redesignated, by striking out “55” and inserting in lieu thereof “60”; and (4) by adding at the end thereof the following new paragraphs: 95 STAT. 689 “(12) Implementation of policies ensuring equitable access to the Northeast Corridor by both intercity and commuter services. “(13) Coordination among the various users of the Northeast Corridor, particularly intercity and commuter passenger services. “(14) Amtrak’s maximization of the use of its resources, including the most cost-effective use of employees, facilities, and real estate. Amtrak is encouraged to enter into agreements with the private sector and undertake initiatives which are consistent with good business judgment and desired to maximize its revenues and minimize Federal subsidies.”.
definitionsSec. 1173. Section 103 of the Rail Passenger Service Act (45 U.S.C. 502) is amended— (1) by redesignating paragraphs (2) through (6) as paragraphs (3) through (7), respectively, and by redesignating paragraphs (7) through (14) as paragraphs (10) through (17), respectively; (2) by inserting immediately after paragraph (1) the following new paragraph: “(2) ‘Amtrak Commuter’ means the Amtrak Commuter Services Corporation created under title V of this Act.”. (3) by inserting immediately after paragraph (7), as redesignated, the following new paragraphs: “(8) ‘Commuter authority’ means any State, local, or regional authority, corporation, or other entity established for purposes of providing commuter service, and includes the Metropolitan Transportation Authority, the Connecticut Department of Transportation, the Maryland Department of Transportation, the Southeastern Pennsylvania Transportation Authority, the New Jersey Transit Corporation, the Massachusetts Bay Transportation Authority, the Port Authority Trans-Hudson Corporation, any successor agencies, and any entity created by one or more such agencies for the purpose of operating, or contracting for the operation of, commuter service. “(9) ‘Commuter service’ means short-haul rail passenger service operated in metropolitan and suburban areas, whether within or across the geographical boundaries of a State, usually characterized by reduced fare, multiple-ride, and commutation tickets and by morning and evening peak period operations.”; and (4) in paragraph (11), as redesignated, by striking out “commuter and other” and all that follows through “operations” and inserting in lieu thereof “commuter service”.
changes in board of directorsSec. 1174. (a) Section 303(a) of the Rail Passenger Service Act (45 U.S.C. 543(a)) is amended— (1) by striking out paragraphs (1) through (4) and inserting in lieu thereof the following new paragraphs: “(1) The Corporation shall have a board of directors consisting of nine individuals who are citizens of the United States, as follows: “(A) The Secretary of Transportation, ex officio. The Secretary of Transportation may be represented at meetings of the Board by his deputy, the Administrator of the Federal Railroad Ad-95 STAT. 690ministration or the General Counsel of the Department of Transportation. “(B) The President of the Corporation. “(C) Three members appointed by the President, by and with the advice and consent of the Senate, on the following basis: “(i) One to be selected from a list of three qualified individuals recommended by the Railway Labor Executives Association. “(ii) One to be selected from among the Governors of States with an interest in rail transportation. Such Governor may select an individual to represent him at meetings of the Board. “(iii) One to be selected as a representative of business with an interest in rail transportation. “(D) Two members selected by commuter authorities, on the following basis: “(i) Until January 1, 1983, the two members under this subparagraph shall be selected by the President from a list of names consisting of one individual nominated by each commuter authority for which the Consolidated Rail Corporation operates commuter service under the Regional Rail

45 USC 701 note.

Reorganization Act of 1973. Such members shall serve until December 31, 1982, or until their successors are appointed pursuant to subparagraph (ii). “(ii) After January 1, 1983, the two members under this subparagraph shall be selected by the President from a list of names consisting of one individual nominated by each commuter authority for which Amtrak Commuter operates

Ante, p. 647.

commuter service under title V of this Act and one individual nominated by each commuter authority in the Region (as defined in section 102 of the Regional Rail Reorganization

45 USC 702.

Act of 1973) which operates its own service or contracts with an operator other than Amtrak Commuter, except that— “(I) if Amtrak Commuter operates commuter service for one or more commuter authorities, at least one of the members selected under this clause shall be an individual nominated by such a commuter authority; and “(II) if Amtrak Commuter does not operate commuter service for any commuter authority, five names shall be submitted to the President by commuter authorities providing service over rail properties owned by Amtrak, and the President shall select two members from such list. “(E) Two members selected annually by the preferred stockholders of the Corporation, which members shall be selected as soon as practicable after the first issuance of preferred stock by the Corporation. “(2) (A) Members appointed by the President under paragraph (1)(C) shall serve for terms of four years or until their successors have been appointed and qualified, except that any member appointed by the President under such subparagraph to fill a vacancy shall be appointed only for the unexpired term of the member he is appointed to succeed. Not more than two of the members appointed under such subparagraph shall be registered as members of the same political party. “(B) Members selected under paragraph (1)(D) shall serve for terms of two years or until their successors have been appointed. 95 STAT. 691 “(3) Except as provided in paragraph (2)(A) of this subsection, any vacancy in the membership of the board shall be filled in the same manner as in the case of the original selection. “(4) The President of the Corporation shall serve as chairman of the board of directors.”; (2) by striking out paragraph (6) and redesignating paragraphs (7) through (9) as paragraphs (6) through (8), respectively; and (3) in paragraph (7), as redesignated by paragraph (2) of this subsection, by striking out “election” and inserting in lieu thereof “selection”; by striking out “four” and inserting in lieu thereof “two” and by striking out “seven” and inserting in lieu thereof “four”. (b) The term of office of any member of the board of directors of the

45 USC 543 note.

National Railroad Passenger Corporation serving on such board immediately before the effective date of this subtitle pursuant to section 303(a)(1)(B), (C), or (D) of the Rail Passenger Service Act shall

45 USC 543.

be deemed to have expired on such effective date, except that— (1) such members shall continue to serve for a period not to exceed 90 days during which time the President shall appoint members of the board in accordance with section 303(a)(1) of such Act, as amended by this section; and (2) if any position on such board remains vacant after the expiration of such 90-day period, the President of Amtrak may designate any citizen of the United States to serve in such position until the President fills such position by appointment in accordance with such section 303(a)(1).
financing of the corporationSec. 1175. Section 304 of the Rail Passenger Service Act (45 U.S.C. 544) is amended— (1) in subsection (a), by striking out “each of which shall carry voting rights and” and inserting in lieu thereof “which shall”; (2) in subsection (a), by striking out the second sentence; (3) by amending subsection (c) to read as follows: “(c) (1) Not later than February 1, 1982, and in consideration of receiving further Federal financial assistance, the Corporation shall issue to the Secretary a sufficient number of shares of preferred stock to equal, to the nearest whole share, the amount of funds appropriated by Congress for capital acquisitions or improvements, or for operating and capital expenses, under the authority of subsections (a)(2), (b)(1)(B), and (b)(1)(C) of section 601 of this Act between October

45 USC 601.

30, 1970, and September 30, 1981. “(2) Commencing on October 1, 1981, and in consideration of receiving further Federal financial assistance, the Corporation shall issue to the Secretary within 30 days after the close of each quarter of the fiscal year of the United States Government additional preferred stock equal, to the nearest whole share, to the amount of funds paid to the Corporation under section 601 of this Act during such quarter.”; and (4) by striking out subsections (d) through (f) and inserting in lieu thereof the following: “(d) The Corporation is authorized to issue, in addition to the stock authorized by subsection (a) of this section, nonvoting securities, bonds, debentures, notes, and other certificates of indebtedness as it may determine, except that no obligation with a liquidation interest superior to any preferred stock issued to the Secretary or secured by a lien on property of the Corporation shall be incurred without the 95 STAT. 692consent of the Secretary so long as any preferred stock issued to the Secretary is outstanding. “(e) (1) The requirement of section 45(b) of the District of Columbia Business Corporation Act (D.C. Code, sec. 29–920(b)) as to the percentage of stock a stockholder is required to hold in order to have the rights of inspection and copying set forth in such section shall not be applicable in the case of holders of the stock of the Corporation, and they may exercise such rights without regard to the percentage of stock they hold. “(2) Preferred stock issued under the authority of this section shall not be subject to the annual fee prescribed under section 29–936(e) of the District of Columbia Code, or to any other form of taxation unless otherwise specifically prescribed by Congress.”.
charge for customs and immigration serviceSec. 1176. Section 305(i) of the Rail Passenger Service Act (45 U.S.C. 545) is amended by adding at the end thereof the following new sentence: “The Corporation shall not be obligated to pay any amount to any agency of the Federal Government for the cost of customs inspection or immigration procedures in connection with the provision of services by the Corporation.”.
food and beverage serviceSec. 1177. (a) Section 305 of the Rail Passenger Service Act (45 U.S.C. 545) is amended by adding at the end thereof the following new subsection: “(n) The Corporation shall implement policies which will eliminate the deficit in its on-board food and beverage operations no later than September 30, 1982. Beginning October 1, 1982, food and beverage services shall be provided on-board Amtrak trains only if the revenues from such service are equal to or greater than the total costs of such services as computed on an annual basis.”. (b) Section 405(e) of the Rail Passenger Service Act (45 U.S.C. 565(e)) is amended— (1) by striking out “The Corporation” and inserting in lieu thereof “(1) Except as provided in paragraph (2) of this subsection, the Corporation”; and (2) by adding at the end thereof the following new paragraph: “(2) The provisions of this subsection shall not apply to food and beverage services provided on-board Amtrak trains.”.
applicabilitySec. 1178. Section 306 of the Rail Passenger Service Act (45 U.S.C. 546) is amended by adding at the end thereof the following new subsection: “(n) The Corporation shall not be required to pay any additional taxes as a consequence of its expenditure of funds to acquire or improve real property, equipment, facilities, or right-of-way materials or structures used directly or indirectly in the provision of rail passenger service. For purposes of this subsection, ‘additional taxes’ means taxes or fees (1) on the acquisition, improvement, or ownership of personal property by the Corporation; and (2) on real property other than taxes or fees on the acquisition of real property or on the value of real property which is not attributable to improvements made by the Corporation.”.
95 STAT. 693
sanctionsSec. 1179. Section 307(a) of the Rail Passenger Service Act (45 U.S.C. 547(a)) is amended by adding at the end thereof the following: “Any discontinuance of routes, trains, or services or reduction in frequency of service, which is made by the Corporation shall not be reviewable in any court except on petition of the Attorney General of the United States.”.
elimination of unnecessary reportsSec. 1180. (a) Section 308(a)(1) of the Rail Passenger Service Act (45 U.S.C. 548(a)(1)) is amended by striking out subparagraph (C). (b) Section 308(c) of the Rail Passenger Service Act (45 U.S.C. 548(c)) is amended— (1) by striking out “and the Commission”; and (2) by striking out “reports (or, in their discretion, a joint report)” and inserting in lieu thereof “a report”.
facility and service agreementsSec. 1181. The first sentence of section 402(a) of the Rail Passenger Service Act is amended by inserting “, which terms shall include a

45 USC 562.

penalty for untimely performance” before the period.
state supported servicesSec. 1182. (a) Section 403 of the Rail Passenger Service Act (45 U.S.C. 563) is amended to read as follows:
“SEC. 403. SERVICE. “(a) Except as otherwise provided in this Act, after the effective date of the Amtrak Improvement Act of 1981, all route additions shall be in accordance with the Route and Service Criteria. “(b) (1) (A) Any State or group of States, any regional or local agency, or any other person may submit an application to the Corporation requesting the institution of rail passenger service or the retention of a route, train, or service, or some portion of such route, train, or service, which the Corporation intends to discontinue under section 407 of this Act. “(B) Each application by a State, agency, or person for rail passenger service under this subsection shall contain— “(i) adequate assurances by such State, agency, or person that it has sufficient resources to meet its share of the cost of such service for the period such service is to be provided; “(ii) a market analysis acceptable to the Corporation to ensure that there is adequate demand to warrant such service; and “(iii) a statement by such State, agency, or person that it agrees to pay in each year of operation of such service at least— “(I) 45 percent in the first year of operation; and “(II) 65 percent in each year of operation thereafter; of the short-term avoidable losses of operating such service and 50 percent of the associated capital costs. “(2) (A) The Corporation shall review each application submitted by a State, agency, or person for the institution or retention of service under this subsection to determine whether— “(i) the application complies with the requirements of paragraph (1)(B) of this subsection; and 95 STAT. 694 “(ii) there is a reasonable probability that the service requested can be provided with the resources available to the Corporation. “(B) Any application submitted by a group of States shall be considered in the same manner as an application submitted by a single State, and not on the basis of whether each State that is a party to such application meets the requirements of paragraph (1)(B) of this subsection. “(3) (A) The Corporation may enter into an agreement with such State, agency, or person for the institution or retention of such service, in accordance with the funding formula set forth in paragraph (1)(B) of this subsection, if the Corporation determines that such service can be provided with resources available to the Corporation. “(B) An agreement entered into pursuant to this subsection may by mutual agreement be renewed for one or more additional terms of not more than 2 years. “(C) If more than one application is made for service and all applications are consistent with the requirements of this subsection, but all the services applied for cannot be provided with the available resources of the Corporation, the board of directors shall decide in its discretion which application or applications best serve the public interest and can be provided with the available resources of the Corporation. “(4) (A) Any funds provided by the Corporation under an agreement with a State, an agency or a person pursuant to this subsection which are allocated for associated capital costs and which are not expended during the fiscal year for which they are provided shall remain available until expended. “(B) The board of directors shall, after consultation with the appropriate officials of each State that contributes to the operation of service under this subsection, establish the basis for determining the short-term avoidable loss and associated capital costs of service operated under this subsection and the total revenues from such service. In addition, the Corporation shall provide appropriate State officials with the basis for determining such loss, costs, and revenues for each route on which service is operated under this subsection. “(5) (A) Prior to instituting any fare increase that applies to service provided under this subsection and that represents an increase of more than 5 percent over a 6-month period, the Corporation shall consult with and obtain the views of the appropriate officials of each State to be affected by such fare increase. The Corporation shall provide the officials of each such State with an explanation of the circumstances warranting the proposed fare increase (such as the unique costs of or demand for the services involved). “(B) A proposed fare increase described in subparagraph (A) shall take effect 90 days after the date the Corporation first consults with the affected States pursuant to such subparagraph. Within thirty days of the initial consultation, the affected State may submit proposals to the Corporation for reducing costs and increasing revenues in connection with service provided under this subsection. Following such thirty-day period, the Corporation, after taking into consideration such proposals as may be submitted by a State, shall decide whether to implement the proposed fare increase in whole or in part. “(C) Notwithstanding the provision of subparagraph (B) of this paragraph, the Corporation may increase fares pursuant to this paragraph during the first month of a fiscal year if the authorization for appropriations or the appropriations for the benefit of the 95 STAT. 695Corporation for such fiscal year are not enacted at least 90 days prior to the beginning of such fiscal year, and the Corporation may increase fares pursuant to this paragraph during the 30 days following enactment of any appropriation for the benefit of the Corporation or rescission thereof. Notice of fare increases pursuant to the preceding sentence shall be given by the Corporation to any affected State as soon as possible following the decision to effect such fare increase. “(6) At least 2 but not more than 5 percent of all revenues generated by each particular route operated under the authority of this subsection shall be dedicated to advertising and promotion of such service on a local level.”.
(b) The amendments made by subsection (a) of this section shall

45 USC 563 note.

apply to any agreement entered into under section 403(b) of the Rail Passenger Service Act after October 1, 1981, and to any renewal after

Ante, p. 693.

October 1, 1983, of any agreement entered into under such section 403(b) prior to October 1, 1981.
operation within available resourcesSec. 1183. (a) Section 404(c)(3) of the Rail Passenger Service Act (45 U.S.C. 564(c)(3)) is amended— (1) by inserting “(A)” immediately after “(3)”; and (2) by adding at the end thereof the following new subparagraph: “(B) Beginning on the effective date of the Amtrak Improvement Act of 1981, if the Corporation determines that an amendment to the

Ante, p. 687.

Route and Service Criteria is necessary or appropriate, it shall submit a draft of such amendment to the Congress. Such amendment shall take effect at the end of the first period of 60 calendar days of continuous session of the Congress after the date of its submission, unless either the Senate or the House of Representatives adopts a resolution during such period stating that it does not approve such amendment.”. (b) Section 404(c)(4) of the Rail Passenger Service Act (45 U.S.C. 564(c)(4)) is amended to read as follows: “(4) (A) The Corporation’s annual total costs shall not exceed the funds, including grants made under section 601 of this Act, contributions

45 USC 601.

provided by States, regional and local agencies and other persons, and revenues, available to the Corporation within the then-current fiscal year. Commencing in fiscal year 1982, the Corporation shall recover an amount sufficient that the ratio of its revenues, including contributions from States, agencies, and other persons, to costs, excluding capital costs, shall be at least 50 percent. “(B) The Corporation shall conduct an annual review of each route

Annual review.

in the basic system to determine if such route is projected to meet the criteria set forth in paragraph (1) or paragraph (2) of subsection (d), whichever is applicable to such route, as adjusted to reflect constant 1979 dollars. If the Corporation determines on the basis of such review that such route will not meet the criteria set forth in the appropriate paragraph, the Corporation shall discontinue, modify, or adjust the operation of rail passenger service over such route so that the criteria will be met. “(C) The annual review conducted by the Corporation under subparagraph (B) shall include an evaluation of the potential market demand for, and the cost of providing service on routes or portions thereof, and the potential market demand for, and cost of providing service on, alternative routings. The Corporation shall transmit the results of the annual review to each House of the Congress and to the Secretary of Transportation. 95 STAT. 696 “(D) (i) No later than 30 days after the beginning of each fiscal year, the Corporation shall evaluate the financial requirements for operating the basic system and its progress in achieving the system-wide performance standards prescribed in this Act during such fiscal year. If the Corporation determines that the funds to be available for such fiscal year are insufficient to meet the projected operating costs, or if the Corporation projects that the system cannot meet the performance standards of this Act, the Corporation shall, in accordance with this subparagraph, take such action as may be necessary to reduce such costs and improve performance. “(ii) Any action taken by the Corporation to reduce costs or improve performance pursuant to this subparagraph shall be designed to continue the maximum level of service practicable, and may include— “(I) changes in frequency of service; “(II) increases in fares; “(III) reductions in the costs of sleeper car service on certain routes; “(IV) reductions in the costs of dining car service on certain routes; “(V) increases in the passenger capacity of cars used on certain routes; and “(VI) restructuring or adjustment of the route system or discontinuance of service over routes, considering short-term avoidable loss and the number of passengers served by trains on such routes. “(E) The Corporation shall, prior to October 1, 1983, reduce its costs of management by not less than 10 percent of the administrative costs incurred during the period of twelve calendar months prior to June 1, 1981. “(F) (i)

Notice.

Ante, p.693.

 Notice of any discontinuance of service pursuant to this paragraph or section 403(b) of this Act shall be posted at least 14 days before such discontinuance in all stations served by the train to be discontinued. “(ii) Notice of any discontinuance of service pursuant to this paragraph or section 403(b) of this Act shall be given in such a manner as the Corporation determines will afford an opportunity for any State or group of States, or any regional or local agency or other person, to agree to share the cost of such route, train, or service, or some portion of such route, train, or service. Such notice shall be given at least 90 days prior to such discontinuance. “(iii) Notwithstanding the provisions of clause (ii), the Corporation may discontinue service pursuant to this paragraph or section 403(b) of this Act during the first month of a fiscal year if the authorization for appropriations or the appropriations for the benefit of the Corporation for such fiscal year are not enacted at least 90 days prior to the beginning of such fiscal year, and the Corporation may discontinue service pursuant to this paragraph or section 403(b) of this Act during the 30 days following enactment of any appropriation for the benefit of the Corporation or rescission thereof. Notice of discontinuance of service pursuant to the preceding sentence shall be given by the Corporation to any affected State or regional or local transportation authority as soon as possible following the decision to effect such discontinuance.”. (c) Section 404(c)(5) of the Rail Passenger Service Act (45 U.S.C. 564(c)(5)) is amended by striking out “and” at the end of subparagraph (A), by striking out the period at the end of subparagraph (B) 95 STAT. 697and inserting in lieu thereof a semicolon, and by adding at the end thereof the following new subparagraph: “(C) modification or adjustment of service under paragraph (4)(B) of this subsection, and discontinuance, modification, or adjustment under paragraph (4)(D) of this subsection.”. (d) Section 404(e) of the Rail Passenger Service Act (45 U.S.C. 564(e)) is repealed. (e) Section 403(d) of the Rail Passenger Service Act (45 U.S.C. 563(d)) is amended to read as follows: “(d) Beginning October 1, 1981, the Corporation shall continue to operate rail passenger service operated under this subsection prior to the effective date of the Amtrak Improvement Act of 1981 if such service meets the criteria set forth in section 404(d)(2)(B) of this Act, after taking into account projected fare increases and any State or local contributions to such service. Any service continued under this subsection shall be funded in accordance with the method of funding in effect on the day prior to the effective date of the Amtrak Improvement Act of 1981.”.

Ante, p. 687.
extension of compensation for pass ridersSec. 1184. The third sentence of section 405(f) of the Rail Passenger Service Act (45 U.S.C. 565) is amended by striking out “, during the 2-year period beginning on the effective date of the Amtrak Reorganization Act of 1979,”.

45 USC 501 note.
authorization of appropriationsSec. 1185. (a) Section 601(b) of the Rail Passenger Service Act (45 U.S.C. 601(b)) is amended— (1) by striking out paragraph (3); and (2) by redesignating paragraph (2) as paragraph (3) and inserting after paragraph (1) the following new paragraph: “(2) There are authorized to be appropriated to the Secretary for the benefit of the Corporation— “(A) not to exceed $735,000,000 for the fiscal year ending September 30, 1982, of which not more than $24,000,000 shall be used for the payment of operating and capital expenses of rail passenger service provided pursuant to section 403(b) of this Act; and “(B) not to exceed $788,000,000 for the fiscal year ending September 30, 1983, of which not more than $26,000,000 shall be used for the payment of operating and capital expenses of rail passenger service provided pursuant to section 403(b) of this Act.”; (3) in paragraph (3), as redesignated, by striking out “(A)” and by striking out “, and (B) guidelines established by the Secretary”; and (4) by adding at the end thereof the following new paragraph: “(4) Of the amounts appropriated under this subsection for fiscal year 1982, the Corporation may not spend for on-board food and beverage services an amount greater than 50 percent of the amount by which the costs of such services in fiscal year 1981 exceeded the revenues from such services in such fiscal year.”. (b) Section 601(b)(1) of the Rail Passenger Service Act (45 U.S.C. 601(b)(1)) is amended by striking out subparagraphs (B) through (E).
95 STAT. 698
loan guaranteesSec. 1186. (a) Section 602(d) of the Rail Passenger Service Act (45 U.S.C. 602(d)) is amended— (1) by striking out “$900,000,000” each place it appears and inserting in lieu thereof “$930,000,000”; and (2) by striking out the last sentence. (b) Section 602 of the Rail Passenger Service Act (45 U.S.C. 602) is amended by adding at the end thereof the following new subsections: “(j) During the period beginning October 1, 1981, and ending September 30, 1983, the interest due to the Federal Financing Bank from the Corporation on debt of the Corporation held by the Federal Government shall be deferred. During such period the interest so deferred shall be added to the principal of the debt owed to the Federal Government. The deferral of payment under this subsection shall not constitute a default under any note or obligation of the Corporation. Notwithstanding the deferral of interest provided for under this subsection, the Secretary shall guarantee loans to the Corporation to meet commitments under previously approved capital programs and to repay existing notes and equipment obligations. “(k)

Recommendations, submittal to Congress.

 Before February 1, 1982, the Department of Transportation, in consultation with the General Accounting Office, the Corporation, and the Department of the Treasury, shall submit to the Congress legislative recommendations for how best to relieve Amtrak of its debt to the Federal Government.”.
rail corridor development and other studiesSec. 1187. (a)

Report to Congress.

45 USC 651 note.

 Not later than June 1, 1982, the National Railroad Passenger Corporation shall transmit to the Congress a report containing its recommendations for the development of rail corridors. Such report shall contain— (1) an identification of those rail corridors which the Corporation would propose to develop, taking into consideration factors such as (A) the projected cost-effectiveness, energy efficiency, and ridership of rail corridors recommended for development, (B) the need to preserve regional balance in rail passenger service, (C) the share of intercity passengers which would be attracted by rail corridor service, and (D) the willingness of private sector interests or State and local governments, or both, to contribute to the development of rail corridors; (2) a timetable for the development of rail corridors, including schedules for (A) the negotiation of agreements with the rail carriers, private interests, and State and local governments, (B) the acquisition of equipment, (C) the improvement of fixed facilities, and (D) the implementation of service; and (3) a financial plan, including recommendations for reductions in the cost of existing service, during the timetable proposed pursuant to paragraph (2) of this subsection. (b)

Study; report to Congress.

 The National Railroad Passenger Corporation, representatives of labor, and the American Association of Railroads shall, within six months after the effective date of this subtitle, conduct a study and submit a joint report to the Congress regarding their efforts to achieve greater efficiencies in management and labor practices. Such report shall include a description of efforts by such corporation toward efficiencies in the management of such corporation, recommendations for further efficiencies, and any other appropriate legislative recommendations. 95 STAT. 699 (c) Within three months after the effective date of this subtitle, the

Report to Congress.

National Railroad Passenger Corporation shall submit to the Congress a report on actual and potential problems for such Corporation in entering into agreements regarding direct employment of rail passenger operating personnel. Such report shall include legislative recommendations, if such corporation determines that such recommendations are appropriate.
technical and conforming amendmentsSec. 1188. (a) Section 301 of the Rail Passenger Service Act (45 U.S.C. 531) is amended by inserting “and commuter” immediately

45 USC 541.

after “intercity” each place it appears. (b) Section 305(a) of the Rail Passenger Service Act (45 U.S.C. 535(a)) is amended by inserting “and commuter” immediately after

45 USC 545.

“intercity” each place it appears. (c) Section 402(e)(1) of the Rail Passenger Service Act (45 U.S.C. 562(e)(1)) is amended by inserting “or commuter” immediately after “intercity”. (d) Section 405 of the Rail Passenger Service Act (45 U.S.C. 565) is amended by adding at the end thereof the following new subsection: “(g) The provisions of subsections (a), (b), and (c) of this section shall not apply to Amtrak commuter.”. (e) Section 702 of the Railroad Revitalization and Regulatory

Repeal.

Reform Act of 1976 (45 U.S.C. 852), and the item relating to such section in the table of contents of such Act, are repealed.
effective dateSec. 1189. Except as otherwise provided, the provisions of and

45 USC 501 note.

amendments made by this subtitle shall take effect on October 1, 1981.
Subtitle G—Miscellaneous CHAPTER 1—LOCAL RAIL ASSISTANCE
authorization of appropriationsSec. 1191. Section 5(p) of the Department of Transportation Act (49 U.S.C. 1654(p)) is amended by striking out “without fiscal year limitation. Of the foregoing sums, not to exceed $5,000,000 shall be made available for planning grants during each of the 3 fiscal years ending June 30, 1976; September 30, 1977; and September 30, 1978” and inserting in lieu thereof the following: “of which $40,000,000 shall be made available for the fiscal year ending September 30, 1982, $44,000,000 shall be made available for the fiscal year ending September 30, 1983 and $48,000,000 shall be made available for the fiscal year ending September 30, 1984.”.
rail freight assistanceSec. 1192. (a) Section 5(f) of the Department of Transportation Act (49 U.S.C. 1654(f)) is amended by striking out paragraph (1) and redesignating paragraphs (2), (3), (4), and (5) as paragraphs (1), (2), (3), and (4), respectively. (b) The first sentence of section 5(g) of the Department of Transportation Act (49 U.S.C. 1654(g)) is amended by striking out “80 per 95 STAT. 700centum, except that” and all that follows in that sentence and inserting in lieu thereof “70 per centum.”. (c) Section 5(h) of the Department of Transportation Act (49 U.S.C. 1654(h)) is amended— (1) in paragraph (1) by striking out “1979” and inserting in lieu thereof “1981”; (2) in paragraph (2) by striking out “October 1, 1979” and inserting in lieu thereof “October 1, 1981”; (3) in paragraph (2)(B) by striking out “(including” and all that follows through “under this section)” both places it appears; and (4) by amending paragraph (3) to read as follows: “(3) (A) The Interstate Commerce Commission shall, no later than July 1 of the year preceding the fiscal year funds are made available under this section, provide the Secretary with the sum of the rail mileage in each State that meets the description set forth in subparagraphs

Notification.

(A) and (B) of paragraph (2). The Secretary shall, no later than the first day of each fiscal year, notify each State of the funds to which such State is entitled under this subsection during such fiscal year. “(B) (i) Entitlement funds shall remain available to a State for the first 6 months after the end of the fiscal year for which funds have been made available for use under this section. “(ii) Any funds which have not been applied for under this section shall be made available to the Secretary for use during the remainder of the current fiscal year for rail service assistance projects meeting

Notification.

the requirements of this section. The Secretary shall, no later than 30 days after the end of the first six months of a fiscal year, notify each State with respect to any funds still available for rail service assistance projects under this section. “(C) In considering applications for rail service assistance to be provided with funds described in subparagraph (B)(ii), the Secretary shall consider the following: “(i) The percentage of lines filed with the Interstate Commerce Commission for abandonment or potential abandonment within a State. “(ii) The likelihood of future abandonments within a State. “(iii) The ratio of benefits to costs (which are included in the State rail plan) for a proposed project. “(iv) The likelihood that the line will continue operating with rail freight assistance. “(v) The impact of rail bankruptcies, rail restructuring, and rail mergers on the State applying for assistance.”. (d) Section 5(i) of the Department of Transportation Act (49 U.S.C. 1654(i)) is amended to read as follows: “(i) On the first day of the fiscal year, each State shall be entitled to $100,000 of the fund available for expenditure under subsection (q) of this section during the fiscal year to meet the cost of establishing, implementing, revising, and updating the State rail plan required by subsection (j) of this section. Each State must apply for such funds on or before the first day of the fiscal year. Any funds which have not been applied for under this subsection shall be made available to the Secretary under subsection (h)(3)(B) of this section.”. (e) Section 5(k) of the Department of Transportation Act (49 U.S.C. 1654(k)) is amended— (1) by striking out paragraph (1) and redesignating paragraphs (2), (3), (4), and (5) as paragraphs (1), (2), (3), and (4), respectively; (2) in paragraph (1), as redesignated, by striking out “paragraph (2)” and inserting in lieu thereof “paragraph (1)”, by 95 STAT. 701striking out “; or” at the end of subparagraph (B) and inserting in lieu thereof a period, and by striking out subparagraph (C); (3) in paragraph (2), as redesignated, by striking out “paragraphs (3) and (5)” and inserting in lieu thereof “paragraphs (2) and (4)”; (4) in paragraph (3), as redesignated, by striking out “paragraph (4)” and inserting in lieu thereof “paragraph (3)”; and (5) by striking out the period at the end of paragraph (2), as redesignated, and at the end of paragraph (3)(B), as redesignated, and inserting in lieu thereof the following: “unless such a project has been receiving assistance under this subsection but did not receive all the funds to which the State was entitled at the beginning of the fiscal year ending September 30, 1981, in which case such project shall continue to be eligible until September 30, 1982.” (f) Section 5(l) of the Department of Transportation Act (49 U.S.C. 1654(l)) is amended by adding at the end thereof the following new sentence: “Upon receipt of an application for rail freight assistance, the Secretary shall consider the application and notify the State submitting such an application as to its approval or disapproval within 45 days. If the Secretary fails to consider and notify the State applying for rail freight assistance under subsection (k) within 45 days, then the project shall be considered approved and the State shall receive the Federal share up to the amount to which it is entitled.”. (g) Section 5(n) of the Department of Transportation Act (49 U.S.C. 1654(n)) is amended to read as follows: “(n) As used in this section, the term ‘State’ means any State in which a rail carrier providing transportation subject to the jurisdiction of the Interstate Commerce Commission under chapter 105 of title 49, United States Code, maintains any line of railroad.”. (h) Section 5(o) of the Department of Transportation Act (49 U.S.C. 1654(o)) is amended by striking out “paragraph (3)” each place it appears and inserting in lieu thereof “paragraph (2)”, and by adding at the end thereof the following new paragraph: “(5) The State, to the maximum extent possible, shall encourage the participation of shippers, railroads, and local communities in providing the State share of rail freight assistance funds.”. (i) Section 5 of the Department of Transportation Act (49 U.S.C. 1654) is amended by redesignating subsection (p) as subsection (q) and by inserting after subsection (o) the following new subsection: “(p) Each State shall retain a contingent interest (redeemable preference shares) for the Federal share of funds in any line receiving rail freight assistance under this section and may exercise the right to collect its share of the funds used for such a line, if an application for abandonment of such line is filed under chapter 109 of title 49, United States Code, or if such line is sold or disposed of in any way

49 USC 10901 et seq.

after it has received Federal assistance.”.
CHAPTER 2—NORTHEAST CORRIDOR
northeast corridorSec. 1193. Section 704(a) of the Railroad Revitalization and Regulatory Reform Act of 1976 is amended—

45 USC 854.

 (1) by inserting before the first sentence thereof the following new sentence: The Secretary shall complete the Northeast 95 STAT. 702Corridor improvement project in accordance with the goals of this Act to the extent of funds authorized under this Act”; and (2) by adding after paragraph (4) the following new sentence: “Of the funds authorized to be appropriated under this section, not more than $200,000,000 is authorized to be appropriated to the Secretary for the fiscal year ending September 30, 1982; and not more than $185,000,000 is authorized to be appropriated to the Secretary for the fiscal year ending September 30, 1983.”.
CHAPTER 3—DEPARTMENT OF TRANSPORTATION
authorization of appropriationsSec. 1194. (a) The Department of Transportation Act is amended by inserting at the end thereof the following new section:
“authorization of appropriations“Sec. 17.

49 USC 1660.

 There are authorized to be appropriated— “(1) (A) for necessary expenses of the Secretary of Transportation, including not to exceed $27,000 for allocation within the Department of official reception and representation expenses as the Secretary may determine, not to exceed $35,193,204 per fiscal year for each of the fiscal years ending September 30, 1982, September 30, 1983, and September 30, 1984; and “(B) for necessary expenses for conducting transportation planning, research, and development activities, including the collection of national transportation statistics to remain available until expended, $10,486,615 per fiscal year for each of the fiscal years ending September 30, 1982, September 30, 1983, and September 30, 1984; “(2) for necessary expenses for railroad research and development, not to exceed $40,000,000 for the fiscal year ending September 30, 1982, to remain available until expended; and “(3) for necessary expenses of the Minority Business Resource Center not otherwise provided for, not to exceed $10,000,000 for each of the fiscal years ending September 30, 1982, September 30, 1983, and September 30, 1984. The Secretary may not utilize any appropriated funds for the Office of the Secretary other than those which are authorized for that purpose by this section.”.
CHAPTER 4—RAILROAD SAFETY
authorization of appropriationsSec. 1195.

94 Stat. 1811.

45 USC 444.

 Section 214(a) of the Federal Railroad Safety Act of 1970 is amended by striking out “$40,000,000” and inserting in lieu thereof “$27,650,000”.
CHAPTER 5—INTERSTATE COMMERCE COMMISSION
interstate commerce commissionSec. 1196.

49 USC 10301 note.

 Notwithstanding any other provision of law, the total amount authorized to be appropriated for necessary expenses of the Interstate Commerce Commission shall not exceed $79,000,000 for the fiscal year ending September 30, 1982; $80,400,000 for the fiscal year 95 STAT. 703ending September 30, 1983; and $80,400,000 for the fiscal year ending September 30, 1984.
CHAPTER 6—TRANSPORTATION RESEARCH
transportation research and special programsSec. 1197. Notwithstanding any other provision of law, the total

49 USC 1653 note.

amount authorized to be appropriated to the Department of Transportation for expenses necessary to discharge the functions of the Research and Special Programs Administration shall not exceed $30,047,000 for the fiscal year ending September 30, 1982; $32,300,000 for the fiscal year ending September 30, 1983; and $33,300,000 for the fiscal year ending September 30, 1984.
statement of managersSec. 1199A. The managers on the part of the Senate and the House of Representatives are authorized to have printed in the Congressional Record at any time prior to midnight on August 4, 1981, a statement in explanation of the provisions of this title relating to matters within the jurisdiction of the Senate Committee on Commerce, Science, and Transportation and the House Committee on Energy and Commerce. Such statement shall be considered to have been filed at the same time and along with the conference report on the Omnibus Budget Reconciliation Act of 1981 (H.R. 3982); and shall be considered for all purposes to constitute the statement on the part of the managers with respect to such provisions.
<num value="XII">TITLE XII—</num><heading>CONSUMER PRODUCT SAFETY AND COMMUNICATIONS</heading> <subtitle><num value="A">Subtitle A—</num><heading>Consumer Product Safety</heading><sidenote><p class="indent0 firstIndent0 fontsize8">Consumer Product Safety Amendments of 1981.</p></sidenote> <section> <heading class="centered smallCaps">short title; reference to act</heading><num value="1201"><inline class="smallCaps">Sec</inline>. 1201. </num><subsection class="inline"><num value="a">(a) </num><content>This subtitle may be cited as the “<shortTitle role="subtitle">Consumer Product <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s2051">15 USC 2051 note</ref>.</p></sidenote>Safety Amendments of 1981</shortTitle>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Except as otherwise specifically provided, whenever in this subtitle an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Consumer Product Safety Act. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s2051">15 USC 2051 note</ref>.</p></sidenote></content> </subsection> </section> <section> <heading class="centered smallCaps">consumer product safety standards</heading><num value="1202"><inline class="smallCaps">Sec</inline>. 1202. </num><content>Section 7 is amended to read as follows: <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s2056">15 USC 2056</ref>.</p></sidenote> <quotedContent> <section> <heading class="centered smallCaps">“consumer product safety standards</heading><num value="7">“<inline class="smallCaps">Sec</inline>. 7. </num><subsection class="inline"><num value="a">(a) </num><chapeau>The Commission may promulgate consumer product safety standards in accordance with the provisions of section 9. A <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 704.</p></sidenote>consumer product safety standard shall consist of one or more of any of the following types of requirements:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>Requirements expressed in terms of performance requirements.</content></paragraph> <page identifier="/us/stat/95/704">95 STAT. 704</page> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Requirements that a consumer product be marked with or accompanied by clear and adequate warnings or instructions, or requirements respecting the form of warnings or instructions.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">Any requirement of such a standard shall be reasonably necessary to prevent or reduce an unreasonable risk of injury associated with such product.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>The Commission shall rely upon voluntary consumer product safety standards rather than promulgate a consumer product safety standard prescribing requirements described in subsection (a) whenever compliance with such voluntary standards would eliminate or adequately reduce the risk of injury addressed and it is likely that there will be substantial compliance with such voluntary standards.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>If any person participates with the Commission in the development of a consumer product safety standard, the Commission may agree to contribute to the person’s cost with respect to such participation, in any case in which the Commission determines that such contribution is likely to result in a more satisfactory standard than would be developed without such contribution, and that the person is financially responsible. Regulations of the Commission shall set forth the items of cost in which it may participate, and shall exclude any contribution to the acquisition of land or buildings. Payments under agreements entered into under this subsection may be made without regard to section 3648 of the Revised Statutes of the United States (31 U.S.C. 529).”.</content> </subsection> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">administrative procedure</heading><num value="1203"><inline class="smallCaps">Sec</inline>. 1203. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s2058">15 USC 2058</ref>.</p></sidenote> <content class="inline">Section 9 is amended to read as follows: <quotedContent> <section> <heading class="centered smallCaps">“procedure for consumer product safety rules</heading><num value="9">“<inline class="smallCaps">Sec</inline>. 9. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Publication in Federal Register.</p></sidenote> <chapeau class="inline">A proceeding for the development of a consumer product safety rule shall be commenced by the publication in the Federal Register of an advance notice of proposed rulemaking which shall—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>identify the product and the nature of the risk of injury associated with the product;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>include a summary of each of the regulatory alternatives under consideration by the Commission (including voluntary consumer product safety standards);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>include information with respect to any existing standard known to the Commission which may be relevant to the proceedings, together with a summary of the reasons why the Commission believes preliminarily that such standard does not eliminate or adequately reduce the risk of injury identified in paragraph (1);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>invite interested persons to submit to the Commission, within such period as the Commission shall specify in the notice (which period shall not be less than 30 days or more than 60 days after the date of publication of the notice), comments with respect to the risk of injury identified by the Commission, the regulatory alternatives being considered, and other possible alternatives for addressing the risk;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>invite any person (other than the Commission) to submit to the Commission, within such period as the Commission shall specify in the notice (which period shall not be less than 30 days after the date of publication of the notice), an existing standard or a portion of a standard as a proposed consumer product safety standard; and</content></paragraph> <page identifier="/us/stat/95/705">95 STAT. 705</page> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>invite any person (other than the Commission) to submit to the Commission, within such period as the Commission shall specify in the notice (which period shall not be less than 30 days after the date of publication of the notice), a statement of intention to modify or develop a voluntary consumer product safety standard to address the risk of injury identified in paragraph (1) together with a description of a plan to modify or develop the standard.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">The Commission shall transmit such notice within 10 calendar days <sidenote><p class="indent0 firstIndent0 fontsize8">Transmittal to congressional committees.</p></sidenote>to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Energy and Commerce of the House of Representatives.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>If the Commission determines that any standard submitted to it in response to an invitation in a notice published under subsection (a)(5) if promulgated (in whole, in part, or in combination with any other standard submitted to the Commission or any part of such a standard) as a consumer product safety standard, would eliminate or adequately reduce the risk of injury identified in the notice under subsection (a)(1), the Commission may publish such standard, in whole, in part, or in such combination and with nonmaterial modifications, as a proposed consumer product safety rule.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>If the Commission determines that—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>compliance with any standard submitted to it in response to an invitation in a notice published under subsection (a)(6) is likely to result in the elimination or adequate reduction of the risk of injury identified in the notice, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>it is likely that there will be substantial compliance with such standard,</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">the Commission shall terminate any proceeding to promulgate a <sidenote><p class="indent0 firstIndent0 fontsize8">Publication in Federal Register.</p></sidenote>consumer product safety rule respecting such risk of injury and shall publish in the Federal Register a notice which includes the determination of the Commission and which notifies the public that the Commission will rely on the voluntary standard to eliminate or reduce the risk of injury.</continuation> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><chapeau>No consumer product safety rule may be proposed by the <sidenote><p class="indent0 firstIndent0 fontsize8">Publication in Federal Register.</p></sidenote>Commission unless, not less than 60 days after publication of the notice required in subsection (a), the Commission publishes in the Federal Register the text of the proposed rule, including any alternatives, which the Commission proposes to promulgate, together with a preliminary regulatory analysis containing—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>a preliminary description of the potential benefits and potential costs of the proposed rule, including any benefits or costs that cannot be quantified in monetary terms, and an identification of those likely to receive the benefits and bear the costs;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>a discussion of the reasons any standard or portion of a standard submitted to the Commission under subsection (a)(5) was not published by the Commission as the proposed rule or part of the proposed rule;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>a discussion of the reasons for the Commission’s preliminary determination that efforts proposed under subsection (a)(6) and assisted by the Commission as required by section 5(a)(3) <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 720.</p></sidenote>would not, within a reasonable period of time, be likely to result in the development of a voluntary consumer product safety standard that would eliminate or adequately reduce the risk of injury addressed by the proposed rule; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>a description of any reasonable alternatives to the proposed rule, together with a summary description of their poten-<page identifier="/us/stat/95/706">95 STAT. 706</page>tial costs and benefits, and a brief explanation of why such alternatives should not be published as a proposed rule.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10"><sidenote><p class="indent0 firstIndent0 fontsize8">Transmittal to congressional committees.</p></sidenote>The Commission shall transmit such notice within 10 calendar days to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Energy and Commerce of the House of Representatives.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Within 60 days after the publication under subsection (c) of a proposed consumer product safety rule respecting a risk of injury associated with a consumer product, the Commission shall—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>promulgate a consumer product safety rule respecting the risk of injury associated with such product, if it makes the findings required under subsection (f), or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>withdraw the applicable notice of proposed rulemaking if it determines that such rule is not (i) reasonably necessary to eliminate or reduce an unreasonable risk of injury associated with the product, or (ii) in the public interest;</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10"><sidenote><p class="indent0 firstIndent0 fontsize8">Publication in Federal Register.</p></sidenote>except that the Commission may extend such 60-day period for good cause shown (if it publishes its reasons therefor in the Federal Register).</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Consumer product safety rules shall be promulgated in accordance with section 553 of title 5, United States Code, except that the Commission shall give interested persons an opportunity for the oral presentation of data, views, or arguments, in addition to an opportunity to make written submissions. A transcript shall be kept of any oral presentation.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><content>A consumer product safety rule shall express in the rule itself the risk of injury which the standard is designed to eliminate or reduce. In promulgating such a rule the Commission shall consider relevant available product data including the results of research, development, testing, and investigation activities conducted generally and pursuant to this Act. In the promulgation of such a rule the Commission shall also consider and take into account the special needs of elderly and handicapped persons to determine the extent to which such persons may be adversely affected by such rule.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Prior to promulgating a consumer product safety rule, the Commission shall consider, and shall make appropriate findings for inclusion in such rule with respect to—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the degree and nature of the risk of injury the rule is designed to eliminate or reduce;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the approximate number of consumer products, or types or classes thereof, subject to such rule;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>the need of the public for the consumer products subject to such rule, and the probable effect of such rule upon the utility, cost, or availability of such products to meet such need; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>any means of achieving the objective of the order while minimizing adverse effects on competition or disruption or dislocation of manufacturing and other commercial practices consistent with the public health and safety.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>The Commission shall not promulgate a consumer product safety rule unless it has prepared, on the basis of the findings of the Commission under paragraph (1) and on other information before the Commission, a final regulatory analysis of the rule containing the following information:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>A description of the potential benefits and potential costs of the rule, including costs and benefits that cannot be quantified in monetary terms, and the identification of those likely to receive the benefits and bear the costs.</content></subparagraph> <page identifier="/us/stat/95/707">95 STAT. 707</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>A description of any alternatives to the final rule which were considered by the Commission, together with a summary description of their potential benefits and costs and a brief explanation of the reasons why these alternatives were not chosen.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>A summary of any significant issues raised by the comments submitted during the public comment period in response to the preliminary regulatory analysis, and a summary of the assessment by the Commission of such issues.</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">The Commission shall publish its final regulatory analysis with the rule.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>The Commission shall not promulgate a consumer product safety rule unless it finds (and includes such finding in the rule)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>that the rule (including its effective date) is reasonably necessary to eliminate or reduce an unreasonable risk of injury associated with such product;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>that the promulgation of the rule is in the public interest;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>in the case of a rule declaring the product a banned hazardous product, that no feasible consumer product safety standard under this Act would adequately protect the public from the unreasonable risk of injury associated with such product;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><chapeau>in the case of a rule which relates to a risk of injury with respect to which persons who would be subject to such rule have adopted and implemented a voluntary consumer product safety standard, that—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>compliance with such voluntary consumer product safety standard is not likely to result in the elimination or adequate reduction of such risk of injury; or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>it is unlikely that there will be substantial compliance with such voluntary consumer product safety standard;</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>that the benefits expected from the rule bear a reasonable relationship to its costs; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num><content>that the rule imposes the least burdensome requirement which prevents or adequately reduces the risk of injury for which the rule is being promulgated.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><subparagraph class="inline"><num value="A">(A) </num><content>Any preliminary or final regulatory analysis prepared under subsection (c) or (f)(2) shall not be subject to independent judicial review, except that when an action for judicial review of a rule is instituted, the contents of any such regulatory analysis shall constitute part of the whole rulemaking record of agency action in connection with such review.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>The provisions of subparagraph (A) shall not be construed to alter the substantive or procedural standards otherwise applicable to judicial review of any action by the Commission.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><paragraph class="inline"><num value="1">(1) </num><content>Each consumer product safety rule shall specify the date such rule is to take effect not exceeding 180 days from the date promulgated, unless the Commission finds, for good cause shown, that a later effective date is in the public interest and publishes its reasons for such finding. The effective date of a consumer product safety standard under this Act shall be set at a date at least 30 days after the date of promulgation unless the Commission for good cause shown determines that an earlier effective date is in the public interest. In no case may the effective date be set at a date which is earlier than the date of promulgation. A consumer product safety standard shall be applicable only to consumer products manufactured after the effective date.</content></paragraph> <page identifier="/us/stat/95/708">95 STAT. 708</page> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Commission may by rule prohibit a manufacturer of a consumer product from stockpiling any product to which a consumer product safety rule applies, so as to prevent such manufacturer from <sidenote><p class="indent0 firstIndent0 fontsize8">“Stockpiling.”</p></sidenote>circumventing the purpose of such consumer product safety rule. For purposes of this paragraph, the term ‘stockpiling’ means manufacturing or importing a product between the date of promulgation of such consumer product safety rule and its effective date at a rate which is significantly greater (as determined under the rule under this paragraph) than the rate at which such product was produced or imported during a base period (prescribed in the rule under this paragraph) ending before the date of promulgation of the consumer product safety rule.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="h">“(h) </num><content>The Commission may by rule amend or revoke any consumer product safety rule. Such amendment or revocation shall specify the date on which it is to take effect which shall not exceed 180 days from the date the amendment or revocation is published unless the Commission finds for good cause shown that a later effective date is in the public interest and publishes its reasons for such finding. Where an amendment involves a material change in a consumer product <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 703.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s2057">15 USC 2057</ref>.</p><p class="indent0 firstIndent0 fontsize8">Publication in Federal Register.</p></sidenote>safety rule, sections 7 and 8, and subsections (a) through (g) of this section shall apply. In order to revoke a consumer product safety rule, the Commission shall publish a proposal to revoke such rule in the Federal Register, and allow oral and written presentations in accordance with subsection (d)(2) of this section. It may revoke such rule only if it determines that the rule is not reasonably necessary to eliminate or reduce an unreasonable risk of injury associated with <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s2060">15 USC 2060</ref>.</p></sidenote>the product. Section 11 shall apply to any amendment of a consumer product safety rule which involves a material change and to any revocation of a consumer product safety rule, in the same manner and to the same extent as such section applies to the Commission’s action in promulgating such a rule.”.</content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 3 of the Federal Hazardous Substances Act (15 U.S.C. 1262) is amended by adding at the end the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Publication in Federal Register.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1261">15 USC 1261</ref>.</p></sidenote> <chapeau class="inline">A proceeding for the promulgation of a regulation under section 2(q)(1) classifying an article or substance as a banned hazardous substance or a regulation under subsection (e) of this section shall be commenced by the publication in the Federal Register of an advance notice of proposed rulemaking which shall—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>identify the article or substance and the nature of the risk of injury associated with the article or substance;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>include a summary of each of the regulatory alternatives under consideration by the Commission (including voluntary standards);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>include information with respect to any existing standard known to the Commission which may be relevant to the proceedings, together with a summary of the reasons why the Commission believes preliminarily that such standard does not eliminate or adequately reduce the risk of injury identified in paragraph (1);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>invite interested persons to submit to the Commission, within such period as the Commission shall specify in the notice (which period shall not be less than 30 days or more than 60 days after the date of publication of the notice), comments with respect to the risk of injury identified by the Commission, the regulatory alternatives being considered, and other possible alternatives for addressing the risk;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>invite any person (other than the Commission) to submit to the Commission, within such period as the Commission shall <page identifier="/us/stat/95/709">95 STAT. 709</page>specify in the notice (which period shall not be less than 30 days after the date of publication of the notice), an existing standard or a portion of a standard as a proposed regulation under section 2(q)(1) or subsection (e) of this section; and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1261">15 USC 1261</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>invite any person (other than the Commission) to submit to the Commission, within such period as the Commission shall specify in the notice (which period shall not be less than 30 days after the date of publication of the notice), a statement of intention to modify or develop a voluntary standard to address the risk of injury identified in paragraph (1) together with a description of a plan to modify or develop the standard.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">The Commission shall transmit such notice within 10 calendar days <sidenote><p class="indent0 firstIndent0 fontsize8">Transmittal to congressional committees.</p></sidenote>to the Committee an Commerce, Science, and Transportation of the Senate and the Committee on Energy and Commerce of the House of Representatives.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><paragraph class="inline"><num value="1">(1) </num><content>If the Commission determines that any standard submitted to it in response to an invitation in a notice published under subsection (f)(5) if promulgated (in whole, in part, or in combination with any other standard submitted to the Commission or any part of such a standard) as a regulation under section 2(q)(1) or subsection (e) of this section, as the case may be, would eliminate or adequately reduce the risk of injury identified in the notice provided under subsection (f)(1), the Commission may publish such standard, in whole, in part, or in such combination and with nonmaterial modifications, as a proposed regulation under such section or subsection.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>if the Commission determines that—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>compliance with any standard submitted to it in response to an invitation in a notice published under subsection (f)(6) is likely to result in the elimination or adequate reduction of the risk of injury identified in the notice, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>it is likely that there will be substantial compliance with such standard,</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">the Commission shall terminate any proceeding to promulgate a <sidenote><p class="indent0 firstIndent0 fontsize8">Publication in Federal Register.</p></sidenote>regulation under section 2(q)(1) or subsection (e) of this section, respecting such risk of injury and shall publish in the Federal Register a notice which includes the determination of the Commission and which notifies the public that the Commission will rely on the voluntary standard to eliminate or reduce the risk of injury.</continuation> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="h">“(h) </num><chapeau>No regulation under section 2(q)(1) classifying an article or <sidenote><p class="indent0 firstIndent0 fontsize8">Publication in Federal Register.</p></sidenote>substance as a banned hazardous substance and no regulation under subsection (e) of this section may be proposed by the Commission unless, not less than 60 days after publication of the notice required in subsection (f), the Commission publishes in the Federal Register the text of the proposed rule, including any alternatives, which the Commission proposes to promulgate, together with a preliminary regulatory analysis containing—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>a preliminary description of the potential benefits and potential costs of the proposed regulation, including any benefits or costs that cannot be quantified in monetary terms, and an identification of those likely to receive the benefits and bear the costs;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>a discussion of the reasons any standard or portion of a standard submitted to the Commission under subsection (f)(5) was not published by the Commission as the proposed regulation or part of the proposed regulation;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>a discussion of the reasons for the Commission’s preliminary determination that efforts proposed under subsection (f)(6) and assisted by the Commission as required by section 5(a)(3) of <page identifier="/us/stat/95/710">95 STAT. 710</page><sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 720.</p></sidenote>the Consumer Product Safety Act would not, within a reasonable period of time, be likely to result in the development of a voluntary standard that would eliminate or adequately reduce the risk of injury identified in the notice provided under subsection (f)(1); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>a description of any reasonable alternatives to the proposed regulation, together with a summary description of their potential costs and benefits, and a brief explanation of why such alternatives should not be published as a proposed regulation.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10"><sidenote><p class="indent0 firstIndent0 fontsize8">Transmittal to congressional committees.</p></sidenote>The Commission shall transmit such notice within 10 calendar days to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Energy and Commerce of the House of Representatives.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="i">“(i) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>The Commission shall not promulgate a regulation under <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1261">15 USC 1261</ref>.</p></sidenote>section 2(q)(1) classifying an article or substance as a banned hazardous substance or a regulation under subsection (e) of this section unless it has prepared a final regulatory analysis of the regulation containing the following information:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>A description of the potential benefits and potential costs of the regulation, including costs and benefits that cannot be quantified in monetary terms, and the identification of those likely to receive the benefits and bear the costs.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>A description of any alternatives to the final regulation which were considered by the Commission, together with a summary description of their potential benefits and costs and a brief explanation of the reasons why these alternatives were not chosen.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>A summary of any significant issues raised by the comments submitted during the public comment period in response to the preliminary regulatory analysis, and a summary of the assessment by the Commission of such issues.</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">The Commission shall publish its final regulatory analysis with the regulation.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>The Commission shall not promulgate a regulation under section 2(q)(1) classifying an article or substance as a banned hazardous substance or a regulation under subsection (e) of this section unless it finds (and includes such finding in the regulation)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><chapeau>in the case of a regulation which relates to a risk of injury with respect to which persons who would be subject to such regulation have adopted and implemented a voluntary standard, that—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>compliance with such voluntary standard is not likely to result in the elimination or adequate reduction of such risk of injury; or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>it is unlikely that there will be substantial compliance with such voluntary standard;</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>that the benefits expected from the regulation bear a reasonable relationship to its costs; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>that the regulation imposes the least burdensome requirement which prevents or adequately reduces the risk of injury for which the regulation is being promulgated.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>Any regulatory analysis prepared under subsection (h) or paragraph (1) shall not be subject to independent judicial review, except that when an action for judicial review of a regulation is instituted, the contents of any such regulatory analysis shall constitute part of the whole rulemaking record of agency action in connection with such review.</content></subparagraph> <page identifier="/us/stat/95/711">95 STAT. 711</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>The provisions of subparagraph (A) shall not be construed to alter the substantive or procedural standards otherwise applicable to judicial review of any action by the Commission.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 4 of the Flammable Fabrics Act (15 U.S.C. 1193) is amended by adding at the end the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><chapeau>A proceeding for the promulgation of a regulation under this <sidenote><p class="indent0 firstIndent0 fontsize8">Publication in Federal Register.</p></sidenote>section for a fabric, related material, or product shall be commenced by the publication in the Federal Register of an advance notice of proposed rulemaking which shall—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>identify the fabric, related material, or product and the nature of the risk of injury associated with the fabric, related material, or product;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>include a summary of each of the regulatory alternatives under consideration by the Commission (including voluntary standards);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>include information with respect to any existing standard known to the Commission which may be relevant to the proceedings, together with a summary of the reasons why the Commission believes preliminarily that such standard does not eliminate or adequately reduce the risk of injury identified in paragraph (1);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>invite interested persons to submit to the Commission, within such period as the Commission shall specify in the notice (which period shall not be less than 30 days or more than 60 days after the date of publication of the notice), comments with respect to the risk of injury identified by the Commission, the regulatory alternatives being considered, and other possible alternatives for addressing the risk;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>invite any person (other than the Commission) to submit to the Commission, within such period as the Commission shall specify in the notice (which period shall not be less than 30 days after the date of publication of the notice), an existing standard or a portion of a standard as a proposed regulation.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>invite any person (other than the Commission) to submit to the Commission, within such period as the Commission shall specify in the notice (which period shall not be less than 30 days after the date of publication of the notice), a statement of intention to modify or develop a voluntary standard to address the risk of injury identified in paragraph (1) together with a description of a plan to modify or develop the standard.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">The Commission shall transmit such notice within 10 calendar days <sidenote><p class="indent0 firstIndent0 fontsize8">Transmittal to congressional committees.</p></sidenote>to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Energy and Commerce of the House of Representatives.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="h">“(h) </num><paragraph class="inline"><num value="1">(1) </num><content>If the Commission determines that any standard submitted to it in response to an invitation in a notice published under subsection (g)(5) if promulgated (in whole, in part, or in combination with any other standard submitted to the Commission or any part of such a standard) as a regulation, would eliminate or adequately reduce the risk of injury identified in the notice provided under subsection (g)(1), the Commission may publish such standard, in whole, in part, or in such combination and with nonmaterial modifications, as a proposed regulation under this section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>If the Commission determines that—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>compliance with any standard submitted to it in response to an invitation in a notice published under subsection (g)(6) is likely to result in the elimination or adequate reduction of the risk of injury identified in the notice, and</content></subparagraph> <page identifier="/us/stat/95/712">95 STAT. 712</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>it is likely that there will be substantial compliance with such standard,</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10"><sidenote><p class="indent0 firstIndent0 fontsize8">Publication in Federal Register.</p></sidenote>the Commission shall terminate any proceeding to promulgate a regulation respecting such risk of injury and shall publish in the Federal Register a notice which includes the determination of the Commission and which notifies the public that the Commission will rely on the voluntary standard to eliminate or reduce the risk of injury.</continuation> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="i">“(i) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Publication in Federal Register.</p></sidenote> <chapeau class="inline">No regulation may be proposed by the Commission under this section unless, not less than 60 days after publication of the notice required in subsection (g), the Commission publishes in the Federal Register the text of the proposed rule, including any alternatives, which the Commission proposes to promulgate, together with a preliminary regulatory analysis containing—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>a preliminary description of the potential benefits and potential costs of the proposed regulation, including any benefits or costs that cannot be quantified in monetary terms, and an identification of those likely to receive the benefits and bear the costs;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>a discussion of the reasons any standard or portion of a standard submitted to the Commission under subsection (g)(5) was not published by the Commission as the proposed regulation or part of the proposed regulation;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>a discussion of the reasons for the Commission’s preliminary determination that efforts proposed under subsection (g)(6) and assisted by the Commission as required by section 5(a)(3) of <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 720.</p></sidenote>the Consumer Product Safety Act would not, within a reasonable period of time, be likely to result in the development of a voluntary standard that would eliminate or adequately reduce the risk of injury identified in the notice provided under subsection (g)(1); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>a description of any reasonable alternatives to the proposed regulation, together with a summary description of their potential costs and benefits, and a brief explanation of why such alternatives should not be published as a proposed regulation.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10"><sidenote><p class="indent0 firstIndent0 fontsize8">Transmittal to congressional committees.</p></sidenote>The Commission shall transmit such notice within 10 calendar days to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Energy and Commerce of the House of Representatives.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="j">“(j) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>The Commission shall not promulgate a regulation under this section unless it has prepared a final regulatory analysis of the regulation containing the following information:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>A description of the potential benefits and potential costs of the regulation, including costs and benefits that cannot be quantified in monetary terms, and the identification of those likely to receive the benefits and bear the costs.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>A description of any alternatives to the final regulation which were considered by the Commission, together with a summary description of their potential benefits and costs and a brief explanation of the reasons why these alternatives were not chosen.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>A summary of any significant issues raised by the comments submitted during the public comment period in response to the preliminary regulatory analysis, and a summary of the assessment by the Commission of such issues.</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">The Commission shall publish its final regulatory analysis with the regulation.</continuation> </paragraph> <page identifier="/us/stat/95/713">95 STAT. 713</page> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>The Commission shall not promulgate a regulation under this section unless it finds (and includes such finding in the regulation)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><chapeau>in the case of a regulation which relates to a risk of injury with respect to which persons who would be subject to such regulation have adopted and implemented a voluntary standard, that—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>compliance with such voluntary standard is not likely to result in the elimination or adequate reduction of such risk of injury; or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>it is unlikely that there will be substantial compliance with such voluntary standard;</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>that the benefits expected from the regulation bear a reasonable relationship to its costs; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>that the regulation imposes the least burdensome requirement which prevents or adequately reduces the risk of injury for which the regulation is being promulgated.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>Any regulatory analysis prepared under subsection (i) or paragraph (1) shall not be subject to independent judicial review, except that when an action for judicial review of a regulation is instituted, the contents of any such regulatory analysis shall constitute part of the whole rulemaking record of agency action in connection with such review.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>The provisions of subparagraph (A) shall not be construed to alter the substantive or procedural standards otherwise applicable to judicial review of any action by the Commission.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 8 (15 U.S.C. 2057) is amended by striking out “<quotedText>propose and</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">public disclosure of information</heading><num value="1204"><inline class="smallCaps">Sec</inline>. 1204. </num><content>Section 6 (15 U.S.C. 2055) is amended to read as follows: <quotedContent> <section> <heading class="centered smallCaps">“public disclosure of information</heading><num value="6">“<inline class="smallCaps">Sec</inline>. 6. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Nothing contained in this Act shall be construed to require the release of any information described by subsection (b) of section 552 of title 5, United States Code, or which is otherwise protected by law from disclosure to the public.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>All information reported to or otherwise obtained by the Commission or its representative under this Act which information contains or relates to a trade secret or other matter referred to in section 1905 of title 18, United States Code, or subject to section 552(b)(4) of title 5, United States Code, shall be considered confidential and shall not be disclosed.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The Commission shall, prior to the disclosure of any information which will permit the public to ascertain readily the identity of a manufacturer or private labeler of a consumer product, offer such manufacturer or private labeler an opportunity to mark such information as confidential and therefore barred from disclosure under paragraph (2).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>All information that a manufacturer or private labeler has marked to be confidential and barred from disclosure under paragraph (2), either at the time of submission or pursuant to paragraph (3), shall not be disclosed, except in accordance with the procedures established in paragraphs (5) and (6).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>If the Commission determines that a document marked as confidential by a manufacturer or private labeler to be barred from disclosure under paragraph (2) may be disclosed because it is not confidential information as provided in paragraph (2), the Commis-<page identifier="/us/stat/95/714">95 STAT. 714</page>sion shall notify such person in writing that the Commission intends to disclose such document at a date not less than 10 days after the date of receipt of notification.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>Any person receiving such notification may, if he believes such disclosure is barred by paragraph (2), before the date set for release of the document, bring an action in the district court of the United States in the district in which the complainant resides, or has his principal place of business, or in which the documents are located, or in the United States District Court for the District of Columbia to restrain disclosure of the document. Any person receiving such notification may file with the appropriate district court or court of appeals of the United States, as appropriate, an application for a stay of disclosure. The documents shall not be disclosed until the court has ruled on the application for a stay.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>Nothing in this Act shall authorize the withholding of information by the Commission or any officer or employee under its control from the duly authorized committees or subcommittees of the Congress, and the provisions of paragraphs (2) through (6) shall not apply to such disclosures, except that the Commission shall immediately notify the manufacturer or private labeler of any such request for information designated as confidential by the manufacturer or private labeler.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><content>The provisions of paragraphs (2) through (6) shall not prohibit the disclosure of information to other officers or employees concerned with carrying out this Act or when relevant in any administrative proceeding under this Act, or in judicial proceedings to which the Commission is a party. Any disclosure of relevant information in Commission administrative proceedings, or in judicial proceedings to which the Commission is a party, shall be governed by the rules of the Commission (including in camera review rules for confidential material) for such proceedings or by court rules or orders, except that the rules of the Commission shall not be amended in a manner inconsistent with the purposes of this section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Except as provided by paragraph (2) of this subsection, not less than 30 days prior to its public disclosure of any information obtained under this Act, or to be disclosed to the public in connection therewith (unless the Commission finds that the public health and safety requires a lesser period of notice and publishes such a finding in the Federal Register), the Commission shall, to the extent practicable, notify and provide a summary of the information to, each manufacturer or private labeler of any consumer product to which such information pertains, if the manner in which such consumer product is to be designated or described in such information will permit the public to ascertain readily the identity of such manufacturer or private labeler, and shall provide such manufacturer or private labeler with a reasonable opportunity to submit comments to the Commission in regard to such information. The Commission shall take reasonable steps to assure, prior to its public disclosure thereof, that information from which the identity of such manufacturer or private labeler may be readily ascertained is accurate, and that such disclosure is fair in the circumstances and reasonably related to effectuating the purposes of this Act. In disclosing any information under this subsection, the Commission may, and upon the request of the manufacturer or private labeler shall, include with the disclosure any comments or other information or a summary thereof submitted by such manufacturer or private labeler to the extent permitted by and subject to the requirements of this section.</content></paragraph> <page identifier="/us/stat/95/715">95 STAT. 715</page> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>If the Commission determines that a document claimed to be inaccurate by a manufacturer or private labeler under paragraph (1) should be disclosed because the Commission believes it has complied with paragraph (1), the Commission shall notify the manufacturer or private labeler that the Commission intends to disclose such document at a date not less than 10 days after the date of the receipt of notification. The Commission may provide a lesser period of notice of intent to disclose if the Commission finds that the public health and safety requires a lesser period of notice and publishes such finding in the Federal Register.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Prior to the date set for release of the document, the manufacturer or private labeler receiving the notice described in paragraph (2) may bring an action in the district court of the United States in the district in which the complainant resides, or has his principal place of business, or in which the documents are located or in the United States District Court for the District of Columbia to enjoin disclosure of the document. The district court may enjoin such disclosure if the Commission has failed to take the reasonable steps prescribed in paragraph (1).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>Paragraphs (1) through (3) of this subsection shall not apply to the public disclosure of (A) information about any consumer product with respect to which product the Commission has filed an action under section 12 (relating to imminently hazardous products), or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s2061">15 USC 2061</ref>.</p></sidenote>which the Commission has reasonable cause to believe is in violation of section 19 (relating to prohibited acts); or (B) information in the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s2068">15 USC 2068</ref>.</p></sidenote>course of or concerning a rulemaking proceeding (which shall commence upon the publication of an advance notice of proposed rulemaking or a notice of proposed rulemaking), an adjudicatory proceeding (which shall commence upon the issuance of a complaint) or other administrative or judicial proceeding under this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><chapeau>In addition to the requirements of paragraph (1), the Commission shall not disclose to the public information submitted pursuant to section 15(b) respecting a consumer product unless— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s2064">15 USC 2064</ref>.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the Commission has issued a complaint under section 15 (c) or (d) alleging that such product presents a substantial product hazard;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>in lieu of proceeding against such product under section 15 (c) or (d), the Commission has accepted in writing a remedial settlement agreement dealing with such product; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>the person who submitted the information under section 15(b) agrees to its public disclosure.</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">The provisions of this paragraph shall not apply to the public disclosure of information with respect to a consumer product which is the subject of an action brought under section 12, or which the Commission has reasonable cause to believe is in violation of section 19(a), or information in the course of or concerning a judicial proceeding.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>Where the Commission initiates the public disclosure of information that reflects on the safety of a consumer product or class of consumer products, whether or not such information would enable the public to ascertain readily the identity of a manufacturer or private labeler, the Commission shall establish procedures designed to ensure that such information is accurate and not misleading.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>If the Commission finds that, in the administration of this Act, it has made public disclosure of inaccurate or misleading information which reflects adversely upon the safety of any consumer product or class of consumer products, or the practices of any manufacturer, private labeler, distributor, or retailer of consumer products, it shall, <page identifier="/us/stat/95/716">95 STAT. 716</page>in a manner equivalent to that in which such disclosure was made, take reasonable steps to publish a retraction of such inaccurate or misleading information.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><content>If, after the commencement of a rulemaking or the initiation of an adjudicatory proceeding, the Commission decides to terminate the proceeding before taking final action, the Commission shall, in a manner equivalent to that in which such commencement or initiation was publicized, take reasonable steps to make known the decision to terminate.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>The Commission shall communicate to each manufacturer of a consumer product, insofar as may he practicable, information as to any significant risk of injury associated with such product.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><content>For purposes of this section, the term ‘Act’ means the Consumer Product Safety Act, the Flammable Fabrics Act, the Poison Prevention Packaging Act, and the Federal Hazardous Substances Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The provisions of this section shall apply whenever information is to be disclosed by the Commission, any member of the Commission, or any employee, agent, or representative of the Commission in an official capacity.”.</content></paragraph> </subsection> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">advisory councils</heading><num value="1205"><inline class="smallCaps">Sec</inline>. 1205. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Repeals.</p></sidenote> <content class="inline">Section 28 (15 U.S.C. 2077) is repealed.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Subsection (d) of section 12 (15 U.S.C. 2061) is repealed and subsections (e) and (f) are redesignated as subsections (d) and (e), respectively.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 17 of the Flammable Fabrics Act (15 U.S.C. 1204) is repealed.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 6 of the Poison Prevention Packaging Act of 1970 (15 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s135">7 USC 135</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s343/352/353/362">21 USC 343, 352, 353, 362</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1261/1475/1476/1471">15 USC 1261, 1475, 1476, 1471 note</ref>.</p></sidenote>U.S.C. 1475) is repealed and sections 7, 8, and 9 of such Act are redesignated as sections 6, 7, and 8, respectively.</content> </subsection> </section> <section> <heading class="centered smallCaps">chronic hazards</heading><num value="1206"><inline class="smallCaps">Sec</inline>. 1206. </num><subsection class="inline"><num value="a">(a) </num><content>The following section is inserted after section 27: <quotedContent> <section> <heading class="centered smallCaps">“chronic hazard advisory panel</heading><num value="28">“<inline class="smallCaps">Sec</inline>. 28. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s2077">15 USC 2077</ref>.</p></sidenote> <content class="inline">The Commission shall appoint Chronic Hazard Advisory Panels (hereinafter referred to as the Panel or Panels) to advise <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 717.</p></sidenote>the Commission in accordance with the provisions of section 31(b) respecting the chronic hazards of cancer, birth defects, and gene mutations associated with consumer products.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>Each Panel shall consist of 7 members appointed by the Commission from a list of nominees who shall be nominated by the President of the National Academy of Sciences from scientists—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>who are not officers or employees of the United States, and who do not receive compensation from or have any substantial financial interest in any manufacturer, distributor, or retailer of a consumer product; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>who have demonstrated the ability to critically assess chronic hazards and risks to human health presented by the exposure of humans to toxic substances or as demonstrated by the exposure of animals to such substances.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">The President of the National Academy of Sciences shall nominate for each Panel a number of individuals equal to three times the number of members to be appointed to the Panel.</continuation> </subsection> <page identifier="/us/stat/95/717">95 STAT. 717</page> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>The Chairman and Vice Chairman of the Panel shall be elected from among the members and shall serve for the duration of the Panel.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>Decisions of the Panel shall be made by a majority of the Panel.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><content>The Commission shall provide each Panel with such administrative support services as it may require to carry out its duties under section 31.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><content>A member of a Panel appointed under subsection (a) shall be paid at a rate not to exceed the daily equivalent of the annual rate of basic pay in effect for grade GS–18 of the General Schedule for each day (including traveltime) during which the member is engaged in the actual performance of the duties of the Panel.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><content>Each Panel shall request information and disclose information to the public, as provided in subsection (h), only through the Commission.</content> </subsection> <subsection class="indent0 fontsize10"><num value="h">“(h) </num><paragraph class="inline"><num value="1">(1) </num><content>Notwithstanding any statutory restriction on the authority of agencies and departments of the Federal Government to share information, such agencies and departments shall provide the Panel with such information and data as each Panel, through the Commission, may request to carry out its duties under section 31. Each Panel may request information, through the Commission, from States, industry and other private sources as it may require to carry out its responsibilities.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Section 6 shall apply to the disclosure of information by the <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 713.</p></sidenote>Panel but shall not apply to the disclosure of information to the Panel.”.</content></paragraph> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 31 (15 U.S.C. 2080) is amended by inserting “<quotedText>(a)</quotedText>” after “<inline class="smallCaps">Sec</inline>. 31.” and by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>The Commission may not issue an advance notice of proposed rulemaking for—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>a consumer product safety rule, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s2076">15 USC 2076</ref>.</p></sidenote></content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>a rule under section 27(e), or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>a regulation under section 2(q)(1) of the Federal Hazardous Substances Act, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1261">15 USC 1261</ref>.</p></sidenote></content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">relating to a risk of cancer, birth defects, or gene mutations from a consumer product unless a Chronic Hazard Advisory Panel, established under section 28, has, in accordance with paragraph (2), <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 716.</p></sidenote>submitted a report to the Commission with respect to whether a substance contained in such product is a carcinogen, mutagen, or teratogen.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><chapeau>Before the Commission issues an advance notice of proposed rulemaking for—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>a consumer product safety rule,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>a rule under section 27(e), or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>a regulation under section 2(q)(1) of the Federal Hazardous Substances Act,</content> </clause> <continuation class="indent0 firstIndent0 fontsize10">relating to a risk of cancer, birth defects, or gene mutations from a consumer product, the Commission shall request the Panel to review the scientific data and other relevant information relating to such risk to determine if any substance in the product is a carcinogen, mutagen, or a teratogen and to report its determination to the Commission.</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>When the Commission appoints a Panel, the Panel shall convene within 30 days after the date the final appointment is made to the Panel. The Panel shall report its determination to the Commission not later than 120 days after the date the Panel is convened or, if the Panel requests additional time, within a time period specified by the Commission. If the determination reported to the Commission <page identifier="/us/stat/95/718">95 STAT. 718</page>states that a substance in a product is a carcinogen, mutagen, or a teratogen, the Panel shall include in its report an estimate, if such an estimate is feasible, of the probable harm to human health that will result from exposure to the substance.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 716.</p></sidenote> <content class="inline">A Panel appointed under section 28 shall terminate when it has submitted its report unless the Commission extends the existence of the Panel.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5">5 USC app.</ref></p></sidenote> <content class="inline">The Federal Advisory Committee Act shall not apply with respect to any Panel established under this section.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Each Panel’s report shall contain a complete statement of the basis for the Panel’s determination. The Commission shall consider the report of the Panel and incorporate such report into the advance notice of proposed rulemaking and final rule.”.</content> </subsection> </quotedContent> </content> </subsection> </section> <section> <heading class="centered smallCaps">congressional veto</heading><num value="1207"><inline class="smallCaps">Sec</inline>. 1207. </num><subsection class="inline"><num value="a">(a) </num><content>The Consumer Product Safety Act is amended by adding at the end the following new section: <quotedContent> <section> <heading class="centered smallCaps">“congressional veto of consumer product safety rules</heading><num value="36">“<inline class="smallCaps">Sec</inline>. 36. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s2083">15 USC 2083</ref>.</p></sidenote> <content class="inline">The Commission shall transmit to the Secretary of the Senate and the Clerk of the House of Representatives a copy of any consumer product safety rule promulgated by the Commission under <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 704.</p></sidenote>section 9.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>Any rule specified in subsection (a) shall not take effect if—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>within the 90 calendar days of continuous session of the Congress which occur after the date of the promulgation of such rule, both Houses of the Congress adopt a concurrent resolution, the matter after the resolving clause of which is as follows (with the blank spaces appropriately filled): ‘That the Congress disapproves the consumer product safety rule which was promulgated by the Consumer Product Safety Commission with respect to <fillIn style="font-family:monospace"> </fillIn> and which was transmitted to the Congress on <fillIn style="font-family:monospace"> </fillIn> and disapproves the rule for the following reasons: <fillIn style="font-family:monospace"> </fillIn>.’; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>within the 60 calendar days of continuous session of the Congress which occur after the date of the promulgation of such rule, one House of the Congress adopts such concurrent resolution and transmits such resolution to the other House and such resolution is not disapproved by such other House within the 30 calendar days of continuous session of the Congress which occur after the date of such transmittal.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Congressional inaction on, or rejection of, a concurrent resolution of disapproval under this section shall not be construed as an expression of approval of the rule involved, and shall not be construed to create any presumption of validity with respect to such rule.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>continuity of session is broken only by an adjournment of the Congress sine die; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the days on which either House is not in session because of an adjournment of more than 3 days to a day certain are excluded in the computation of the periods of continuous session of the Congress specified in subsection (b).”.</content></paragraph> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Subsection (1) of section 27 (15 U.S.C. 2076) is repealed.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The Federal Hazardous Substances Act is amended by adding at the end the following new section: <page identifier="/us/stat/95/719">95 STAT. 719</page> <quotedContent> <section> <heading class="centered smallCaps">“congressional veto of regulations</heading><num value="21">“<inline class="smallCaps">Sec</inline>. 21. </num><subsection class="inline"><num value="a">(a) </num><content>The Consumer Product Safety Commission shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1276">15 USC 1276</ref>.</p></sidenote>transmit to the Secretary of the Senate and the Clerk of the House of Representatives a copy of any regulation promulgated by the Commission under section 2(q)(1) or subsection (e) of section 3. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1261/1262">15 USC 1261, 1262</ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>Any regulation specified in subsection (a) shall not take effect if—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>within the ninety calendar days of continuous session of the Congress which occur after the date of the promulgation of such regulation, both Houses of the Congress adopt a concurrent resolution, the matter after the resolving clause of which is as follows (with the blank spaces appropriately filled): ‘That the Congress disapproves the regulation which was promulgated under the Federal Hazardous Substances Act by the Consumer Product Safety Commission with respect to <fillIn style="font-family:monospace"> </fillIn> and which was transmitted to the Congress on <fillIn style="font-family:monospace"> </fillIn> and disapproves the regulation for the following reasons: <fillIn style="font-family:monospace"> </fillIn>.’; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>within the sixty calendar days of continuous session of the Congress which occur after the date of the promulgation of such regulation, one House of the Congress adopts such concurrent resolution and transmits such resolution to the other House and such resolution is not disapproved by such other House within the thirty calendar days of continuous session of the Congress which occur after the date of such transmittal.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Congressional inaction on, or rejection of, a concurrent resolution of disapproval under this section shall not be construed as an expression of approval of the regulation involved, and shall not be construed to create any presumption of validity with respect to such regulation.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>continuity of session is broken only by an adjournment of the Congress sine die; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the days on which either House is not in session because of an adjournment of more than three days to a day certain are excluded in the computation of the periods of continuous session of the Congress specified in subsection (b).”.</content></paragraph> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>The Flammable Fabrics Act is amended by adding at the end the following new section: <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 716.</p></sidenote> <quotedContent> <section> <heading class="centered smallCaps">“congressional veto of flammability regulations</heading><num value="7">“<inline class="smallCaps">Sec</inline>. 17. </num><subsection class="inline"><num value="a">(a) </num><content>The Consumer Product Safety Commission shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1204">15 USC 1204</ref>.</p></sidenote>transmit to the Secretary of the Senate and the Clerk of the House of Representatives a copy of any flammability regulation promulgated by the Commission under section 4. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1193">15 USC 1193</ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>Any regulation specified in subsection (a) shall not take effect if—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>within the ninety calendar days of continuous session of the Congress which occur after the date of the promulgation of such regulation, both Houses of the Congress adopt a concurrent resolution, the matter after the resolving clause of which is as follows (with the blank spaces appropriately filled): ‘That the Congress disapproves the flammability regulation which was promulgated under the Flammable Fabrics Act by the Consumer Product Safety Commission with respect to <fillIn style="font-family:monospace"> </fillIn> and which was transmitted to the Congress on <fillIn style="font-family:monospace"> </fillIn> and disapproves the regulation for the following reasons: <fillIn style="font-family:monospace"> </fillIn>.’; or</content></paragraph> <page identifier="/us/stat/95/720">95 STAT. 720</page> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>within the sixty calendar days of continuous session of the Congress which occur after the date of the promulgation of such regulation, one House of the Congress adopts such concurrent resolution and transmits such resolution to the other House and such resolution is not disapproved by such other House within the thirty calendar days of continuous session of the Congress which occur after the date of such transmittal.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Congressional inaction on, or rejection of, a concurrent resolution of disapproval under this section shall not be construed as an expression of approval of the regulation involved, and shall not be construed to create any presumption of validity with respect to such regulation.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><chapeau>For purposes of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>continuity of session is broken only by an adjournment of the Congress sine die; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the days on which either House is not in session because of an adjournment of more than three days to a day certain are excluded in the computation of the periods of continuous session of the Congress specified in subsection (b).”.</content></paragraph> </subsection> </section> </quotedContent> </content> </subsection> </section> <section> <heading class="centered smallCaps">reports</heading><num value="1208"><inline class="smallCaps">Sec</inline>. 1208. </num><subsection class="inline"><num value="a">(a) </num><content>Section 27(b)(1) (15 U.S.C. 2076(b)(1)) is amended by inserting “<quotedText>to carry out a specific regulatory or enforcement function of the Commission</quotedText>” after “<quotedText>may prescribe</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 27(b) is amended by adding after and below paragraph (9) the following: “<quotedText>An order issued under paragraph (1) shall contain a complete statement of the reason the Commission requires the report or answers specified in the order to carry out a specific regulatory or enforcement function of the Commission. Such an order shall be designed to place the least burden on the person subject to the order as is practicable taking into account the purpose for which the order was issued.</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">voluntary standards</heading><num value="1209"><inline class="smallCaps">Sec</inline>. 1209. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 5(a) (15 U.S.C. 2054(a)) is amended by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>striking “<quotedText>and</quotedText>” after paragraph (1);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>striking the period after paragraph (2) and inserting in lieu thereof a semicolon; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>adding at the end thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>following publication of an advance notice of proposed rulemaking or a notice of proposed rulemaking for a product safety rule under any rulemaking authority administered by the Commission, assist public and private organizations or groups of manufacturers, administratively and technically, in the development of safety standards addressing the risk of injury identified in such notice; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>to the extent practicable and appropriate (taking into account the resources and priorities of the Commission), assist public and private organizations or groups of manufacturers, administratively and technically, in the development of product safety standards and test methods.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 5(b) (15 U.S.C. 2054(b)) is amended by amending paragraph (3) to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>offer training in product safety investigation and test methods.”.</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>Section 27(j)(15 U.S.C. 2076(j)) is amended—</chapeau> <page identifier="/us/stat/95/721">95 STAT. 721</page> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking “<quotedText>and</quotedText>” at the end of paragraph (9);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by redesignating paragraph (10) as paragraph (11); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by inserting immediately after paragraph (9) the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="10">“(10) </num><chapeau>with respect to voluntary consumer product safety standards for which the Commission has participated in the development through monitoring or offering of assistance and with respect to voluntary consumer product safety standards relating to risks of injury that are the subject of regulatory action by the Commission, a description of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the number of such standards adopted;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the nature and number of the products which are the subject of such standards;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>the effectiveness of such standards in reducing potential harm from consumer products;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>the degree to which staff members of the Commission participate in the development of such standards;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>the amount of resources of the Commission devoted to encouraging development of such standards; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num><content>such other information as the Commission determines appropriate or necessary to inform the Congress on the current status of the voluntary consumer product safety standard program; and”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">petitions to commission</heading><num value="1210"><inline class="smallCaps">Sec</inline>. 1210. </num><content>Section 10 (15 U.S.C. 2059) is repealed. <sidenote><p class="indent0 firstIndent0 fontsize8">Repeal.</p></sidenote></content> </section> <section> <heading class="centered smallCaps">miscellaneous</heading><num value="1211"><inline class="smallCaps">Sec</inline>. 1211. </num><subsection class="inline"><num value="a">(a) </num><content>The first sentence of section 24 (15 U.S.C. 2073) is amended by inserting “<quotedText>(including any individual or nonprofit, business, or other entity)</quotedText>” after “<quotedText>interested person</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 13 (15 U.S.C. 2062) is repealed. <sidenote><p class="indent0 firstIndent0 fontsize8">Repeal.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 20 is amended by—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>redesignating subsections (b) and (c) as subsections (c) and (d), respectively; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by inserting after subsection (a) the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>In determining the amount of any penalty to be sought upon commencing an action seeking to assess a penalty for a violation of section 19(a), the Commission shall consider the nature of the product <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s2068">15 USC 2068</ref>.</p></sidenote>defect, the severity of the risk of injury, the occurrence or absence of injury, the number of defective products distributed, and the appropriateness of such penalty in relation to the size of the business of the person charged.”.</content> </subsection> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The second sentence of section 20(c) (as so redesignated by subsection (a)(1) of this section) (15 U.S.C. 2069) is amended to read as follows: “In determining the amount of such penalty or whether it should be remitted or mitigated and in what amount, the Commission shall consider the appropriateness of such penalty to the size of the business of the person charged, the nature of the product defect, the severity of the risk of injury, the occurrence or absence of injury, and the number of defective products distributed.”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Section 27 (15 U.S.C. 2076) is amended by striking out subsection (m).</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>The last sentence of section 14(a) of the Flammable Fabrics Act (15 U.S.C. 1201(a)) is repealed.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 15 of the Federal Hazardous Substances Act (15 U.S.C. 1274) is amended to read as follows: <page identifier="/us/stat/95/722">95 STAT. 722</page> <quotedContent> <section> <heading class="centered smallCaps">“notice and repair, replacement, or refund</heading><num value="15">“<inline class="smallCaps">Sec</inline>. 15. </num><subsection class="inline"><num value="a">(a) </num><chapeau>If any article or substance sold in commerce is defined as a banned hazardous substance (whether or not it was such at the time of its sale) and the Commission determines (after affording interested persons, including consumers and consumer organizations, an opportunity for a hearing) that notification is required to adequately protect the public from such article or substance, the Commission may order the manufacturer or any distributor or dealer of the article or substance to take any one or more of the following actions:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>To give public notice that the article or substance is a banned hazardous substance.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>To mail such notice to each person who is a manufacturer, distributor, or dealer of such article or substance.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>To mail such notice to every person to whom the person giving the notice knows such article or substance was delivered or sold.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">An order under this subsection shall specify the form and content of any notice required to be given under the order.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>If any article or substance sold in commerce is defined as a banned hazardous substance (whether or not it was such at the time of its sale) and the Commission determines (after affording interested persons, including consumers and consumer organizations, an opportunity for a hearing) that action under this subsection is in the public interest, the Consumer Product Safety Commission may order the manufacturer, distributor, or dealer to take whichever of the following actions the person to whom the order is directed elects:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>If repairs to or changes in the article or substance may be made so that it will not be a banned hazardous substance, to make such repairs or changes.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>To replace such article or substance with a like or equivalent article or substance which is not a banned hazardous substance.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>To refund the purchase price of the article or substance (less a reasonable allowance for use, if the article or substance has been in the possession of the consumer for one year or more—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>at the time of public notice under subsection (a), or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>at the time the consumer receives actual notice that the article or substance is a banned hazardous substance, whichever first occurs).</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">An order under this subsection may also require the person to whom it applies to submit a plan, satisfactory to the Commission, for taking the action which such person has elected to take. The Commission shall specify in the order the persons to whom refunds must be made if the person to whom the order is directed elects to take the action described in paragraph (3). If an order under this subsection is directed to more than one person, the Commission shall specify which person has the election under this subsection. An order under this subsection may prohibit the person to whom it applies from manufacturing for sale, offering for sale, distributing in commerce, or importing into the customs territory of the United States (as defined in <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s1202">19 USC 1202 note</ref>.</p></sidenote>general headnote 2 to the Tariff Schedules of the United States), or from doing any combination of such actions, with respect to the article or substance with respect to which the order was issued.</continuation> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><content>No charge shall be made to any person (other than a manufacturer, distributor, or dealer) who avails himself of any <page identifier="/us/stat/95/723">95 STAT. 723</page>remedy provided under an order issued under subsection (b), and the person subject to the order shall reimburse each person (other than a manufacturer, distributor, or dealer) who is entitled to such a remedy for any reasonable and foreseeable expenses incurred by such person in availing himself of such remedy.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>An order issued under subsection (a) or (b) with respect to an article or substance may require any person who is a manufacturer, distributor, or dealer of the article or substance to reimburse any other person who is a manufacturer; distributor, or dealer of such article or substance for such other person’s expenses in connection with carrying out the order, if the Commission determines such reimbursement to be in the public interest.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>An order under subsection (a) or (b) may be issued only after an opportunity for a hearing in accordance with section 554 of title 5, United States Code, except that, if the Commission determines that any person who wishes to participate in such hearing is a part of a class of participants who share an identity of interest, the Commission may limit such person’s participation in such hearing to participation through a single representative designated by such class (or by the Commission if such class fails to designate such a representative).”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 4 of the Federal Hazardous Substances Act (15 U.S.C. 1263) is amended by adding at the end the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="j">“(j) </num><content>The failure to comply with an order issued under section 15.”. <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 722.</p></sidenote></content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num> <content class="inline"> <p class="inline">The table of contents is amended by striking out the items relating to sections 13 and 28, and inserting in lieu thereof the following:</p> <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 13.</designator> <label>Repealed.”</label></referenceItem> </toc> </quotedContent> <p class="indent0 firstIndent0 fontsize10">and</p> <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 28.</designator> <label>Chronic hazards advisory panel.”,</label></referenceItem> </toc> </quotedContent> <p class="indent0 firstIndent0 fontsize10">respectively.</p> </content> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 11(c) (15 U.S.C. 2060(c)) is amended by striking out “<quotedText>section 9(c)</quotedText>” and inserting in lieu thereof “<quotedText>sections 9(f)(1) and 9(f)(3)</quotedText>”.</content></paragraph><paragraph class="inline"><num value="2">(2) </num><content>Section 11(a) is amended by striking out “<quotedText>9(a)(2)</quotedText>” and inserting in lieu thereof “<quotedText>9(d)(2)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>Section 11 is amended by adding at the end thereof the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><content>For purposes of this section and sections 23(a) and 24, a reasonable attorney’s fee is a fee (1) which is based upon (A) the actual time expended by an attorney in providing advice and other legal services in connection with representing a person in an action brought under this section, and (B) such reasonable expenses as may be incurred by the attorney in the provision of such services, and (2) which is computed at the rate prevailing for the provision of similar services with respect to actions brought in the court which is awarding such fee.”.</content> </subsection> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Section 23(a) (15 U.S.C. 2072(a)) is amended by striking out “<quotedText>10(e)(4)</quotedText>” and inserting in lieu thereof “<quotedText>11(f)</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>Section 24 (15 U.S.C. 2074) is amended by striking out “<quotedText>10(e)(4)</quotedText>” <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s2073">15 USC 2073</ref>.</p></sidenote>and inserting in lieu thereof “<quotedText>11(f)</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Section 15(g)(1) (15 U.S.C. 2064(g)(1)) is amended by inserting “<quotedText>, Science and Transportation</quotedText>” immediately after “<quotedText>on Commerce</quotedText>”, and by striking out “<quotedText>section 12(e)(1)</quotedText>” and inserting in lieu thereof “<quotedText>section 12(c)(1)</quotedText>”.</content></paragraph> </subsection> </section> <page identifier="/us/stat/95/724">95 STAT. 724</page> <section> <heading class="centered smallCaps">lawn mower standard</heading><num value="1212"><inline class="smallCaps">Sec</inline>. 1212. </num><subsection class="inline"><num value="a">(a) </num><content>Not later than 90 days after the date of the enactment of this Act, the Consumer Product Safety Commission shall amend its consumer product safety standard for walk-behind power lawn mowers to provide that a manually started rotary type lawn mower which has a blade control system which meets the requirements of the standard relating to blade controls (16 CFR 1205.5) except that the system stops the engine and requires a manual restart of the engine shall be considered in compliance with such requirements if the engine starting controls for the lawn mower are located within twenty-four inches from the top of the mower’s handles or the mower has a protective foot shield which extends three hundred and sixty degrees around the mower housing. The Consumer Product Safety <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s2051">15 USC 2051 note</ref>.</p></sidenote>Act shall not apply with respect to the promulgation of the amendment prescribed by this subsection.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Study and report.</p></sidenote> <content class="inline">The Commission shall conduct a study of the effect on consumers of the amendment prescribed by subsection (a) and shall report the results of such study two years after the date the standard, as amended in accordance with subsection (a), takes effect. The Commission may not amend the amendment prescribed by subsection (a) before the report is filed under this subsection.</content> </subsection> </section> <section> <heading class="centered smallCaps">amusement parks</heading><num value="1213"><inline class="smallCaps">Sec</inline>. 1213. </num><content>Section 3(a)(1) (15 U.S.C. 2052(a)(1)) is amended by inserting before the sentence following subparagraph (I) the following: “<quotedText>Such term includes any mechanical device which carries or conveys passengers along, around, or over a fixed or restricted route or course or within a defined area for the purpose of giving its passengers amusement, which is customarily controlled or directed by an individual who is employed for that purpose and who is not a consumer with respect to such device, and which is not permanently fixed to a site. Such term does not include such a device which is permanently fixed to a site.</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">extension of act</heading><num value="1214"><inline class="smallCaps">Sec</inline>. 1214. </num><content>Section 32(a) (15 U.S.C. 2081(a)) is amended (1) by striking out “<quotedText>and</quotedText>” at the end of paragraph (6), (2) by striking out the period at the end of paragraph (7) and inserting a semicolon, and (3) by adding at the end the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><content>$33,000,000 for the fiscal year ending September 30, 1982; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">“(9) </num><content>$35,000,000 for the fiscal year ending September 30, 1983.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">For payment of accumulated and accrued leave under section 5551 of title 5, United States Code, severance pay under section 5595 under such title, and any other expense related to a reduction in force in the Commission, there are authorized to be appropriated such sums as may be necessary.”.</continuation> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">effective date</heading><num value="1215"><inline class="smallCaps">Sec</inline>. 1215. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s2052">15 USC 2052 note</ref>.</p></sidenote> <content class="inline">Except as provided in subsection (b), the amendments made by this subtitle shall take effect on the date of the enactment of this Act.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The amendments made by section 1207 shall apply with respect to consumer product safety rules under the Consumer Product Safety <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1261">15 USC 1261 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1191">15 USC 1191 note</ref>.</p></sidenote>Act and regulations under the Federal Hazardous Substances Act and the Flammable Fabrics Act promulgated by the Consumer <page identifier="/us/stat/95/725">95 STAT. 725</page>Product Safety Commission after the date of the enactment of this Act; and the amendments made by sections 1202, 1203, and 1206 of this subtitle shall apply with respect to regulations under the Consumer Product Safety Act, the Federal Hazardous Substances <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s2051">15 USC 2051 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1261">15 USC 1261 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s1191">15 USC 1191 note</ref>.</p></sidenote>Act, and the Flammable Fabrics Act for which notices of proposed rulemaking are issued after August 14, 1981.</content> </subsection> </section> </subtitle> <subtitle><num value="B">Subtitle B—</num><heading>Communications</heading> <chapter><num value="1">CHAPTER 1— </num><sidenote><p class="indent0 firstIndent0 fontsize8">Public Broadcasting Amendments Act of 1981.</p></sidenote> <heading>PUBLIC BROADCASTING</heading> <section> <heading class="centered smallCaps">short title</heading><num value="1221"><inline class="smallCaps">Sec</inline>. 1221. </num><content>This chapter may be cited as the “<shortTitle role="chapter">Public Broadcasting <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s609">47 USC 609 note</ref>.</p></sidenote>Amendments Act of 1981</shortTitle>”.</content> </section> <section> <heading class="centered smallCaps">authorization of appropriations for public telecommunications facilities</heading><num value="1222"><inline class="smallCaps">Sec</inline>. 1222. </num><content>Section 391 of the Communications Act of 1934 (47 U.S.C. 391) is amended by inserting after “<quotedText>1981,</quotedText>” the following: “<quotedText>$20,000,000 for fiscal year 1982, $15,000,000 for fiscal year 1983, and $12,000,000 for fiscal year 1984,</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">grants for construction and planning</heading><num value="1223"><inline class="smallCaps">Sec</inline>. 1223. </num><subsection class="inline"><num value="a">(a) </num><content>Section 392(a)(4) of the Communications Act of 1934 (47 U.S.C. 392(a)(4)) is amended by striking out “<quotedText>only</quotedText>” and inserting in lieu thereof “<quotedText>primarily</quotedText>”, and by inserting before the semicolon at the end thereof the following: “<quotedText>, and that the use of such public telecommunications facilities for purposes other than the provision of public telecommunications services will not interfere with the provision of such public telecommunications services as required in this part</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 392(g)(2) of the Communications Act of 1934 (47 U.S.C. 392(g)(2)) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>only</quotedText>” and inserting in lieu thereof “<quotedText>primarily</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>(unless</quotedText>” and all that follows through “do so)” and inserting in lieu thereof the following: “<quotedText>(or the use of such public telecommunications facilities for purposes other than the provision of public telecommunications services interferes with the provision of such public telecommunications services as required in this part)</quotedText>”.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">declaration of policy regarding corporation</heading><num value="1224"><inline class="smallCaps">Sec</inline>. 1224. </num><content>Section 396(a)(5) of the Communications Act of 1934 (47 U.S.C. 396(a)(5)) is amended by striking out “<quotedText>and</quotedText>”, and by inserting before the semicolon at the end thereof the following: “<quotedText>, and which will constitute a source of alternative telecommunications services for all the citizens of the Nation</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">board of directors of corporation</heading><num value="1225"><inline class="smallCaps">Sec</inline>. 1225. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 396(c) of the Communications Act of 1934 (47 U.S.C. 396(c)) is amended to read as follows: <page identifier="/us/stat/95/726">95 STAT. 726</page> <quotedContent> <heading class="centered">“Board of Directors</heading> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><content>The Corporation for Public Broadcasting shall have a Board of Directors (hereinafter in this section referred to as the ‘Board’), consisting of 10 members appointed by the President, by and with the advice and consent of the Senate, and the President of the Corporation. No more than 6 members of the Board appointed by the President may be members of the same political party. The President of the Corporation shall serve as the Chairman of the Board.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The 10 members of the Board appointed by the President (A) shall be selected from among citizens of the United States (not regular full-time employees of the United States) who are eminent in such fields as education, cultural and civic affairs, or the arts, including radio and television; and (B) shall be selected so as to provide as nearly as practicable a broad representation of various regions of the Nation, various professions and occupations, and various kinds of talent and experience appropriate to the functions and responsibilities of the Corporation.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Of the members of the Board appointed by the President under paragraph (1), one member shall be selected from among individuals who represent the licensees and permittees of public television stations, and one member shall be selected from among individuals who represent the licensees and permittees of public radio stations.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>The members of the initial Board of Directors shall serve as incorporators and shall take whatever actions are necessary to establish the Corporation under the District of Columbia Nonprofit <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/dcc/29/1001">D.C. Code 29–1001</ref>.</p></sidenote>Corporation Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>The term of office of each member of the Board appointed by the President shall be 5 years, except that any member appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term. No member of the Board shall be eligible to serve in excess of 2 consecutive terms of 5 years each.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>Any vacancy in the Board shall not affect its power, but shall be filled in the manner consistent with this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>Members of the Board shall attend not less than 50 percent of all duly convened meetings of the Board in any calendar year. A member who fails to meet the requirement of the preceding sentence shall forfeit membership and the President shall appoint a new member to fill such vacancy not later than 30 days after such vacancy is determined by the Chairman of the Board.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s396">47 USC 396 note</ref>.</p></sidenote> <content class="inline">The amendment made in paragraph (1) shall not affect the continuation in office of any individual serving on the Board of Directors of the Corporation for Public Broadcasting on the date of the enactment of this Act.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>The first 5 vacancies occurring on the Board after October 1, 1983 (other than any vacancy in the office of Chairman) shall not be filled, so as to reduce the membership of the Board to 10 members in addition to the Chairman of the Board.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 396(d) of the Communications Act of 1934 (47 U.S.C. 396(d)) is amended to read as follows: <quotedContent> <heading class="centered">“Election of Vice Chairman; Compensation</heading> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><content>Members of the Board shall annually elect one or more of their members as a Vice Chairman or Vice Chairmen.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The members of the Board shall not, by reason of such membership, be deemed to be officers or employees of the United <page identifier="/us/stat/95/727">95 STAT. 727</page>States. They shall, while attending meetings of the Board or while engaged in duties related to such meetings or other activities of the Board pursuant to this subpart, be entitled to receive compensation at the rate of $150 per day, including traveltime. No Board member shall receive compensation of more than $10,000 in any fiscal year. While away from their homes or regular places of business, Board members shall be allowed travel and actual, reasonable, and necessary expenses.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>Section 396(e)(1) of the Communications Act of 1934 (47 U.S.C. 396(e)(1)) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>the Chairman and any</quotedText>” and inserting in lieu thereof “<quotedText>a</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting “<quotedText>for services rendered</quotedText>” after “<quotedText>Corporation</quotedText>” the sixth time it appears therein.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">report to congress</heading><num value="1226"><inline class="smallCaps">Sec</inline>. 1226. </num><content>Section 396(i)(1) of the Communications Act of 1934 (47 U.S.C. 396(i)(1)) is amended by striking out “<quotedText>February</quotedText>” and inserting in lieu thereof “<quotedText>May</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">financing; community advisory boards</heading><num value="1227"><inline class="smallCaps">Sec</inline>. 1227. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 396(k)(1)(C) of the Communications Act of 1934 (47 U.S.C. 396(k)(1)(C)) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>and</quotedText>” each place it appears therein;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting “<quotedText>1984, 1985, and 1986,</quotedText>” after “<quotedText>1983,</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by inserting before the period at the end thereof the following: “<quotedText>, and $130,000,000 for each of the fiscal years 1984, 1985, and 1986</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 396(k)(2)(B) of the Communications Act of 1934 (47 U.S.C. 396(k)(2)(B)) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>quarterly</quotedText>” and inserting in lieu thereof “<quotedText>fiscal year</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>, in such amounts</quotedText>” and all that follows through “quarter”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 396(k)(3)(A) of the Communications Act of 1934 (47 U.S.C. 396(k)(3)(A)) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><subparagraph class="inline"><num value="A">(A) </num><clause class="inline"><num value="i">(i) </num><chapeau>The Corporation shall establish an annual budget for use in allocating amounts from the Fund. Of the amounts appropriated into the Fund available for allocation for any fiscal year—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>not more than 5 percent of such amounts shall be available for the administrative expenses of the Corporation;</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>not less than 5 percent of such amounts shall be available for other expenses incurred by the Corporation, including research, training, technical assistance, engineering, instructional support, payment of interest on indebtedness, capital costs relating to telecommunications satellites, the payment of programming royalties and other fees, and the costs of interconnection facilities and operations (as provided in clause (iv)(I)), except that the total amount available for obligation for any fiscal year under this subclause and subclause (I) shall not exceed 10 percent of the amounts appropriated into the Fund available for allocation for such fiscal year;</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="III">“(III) </num><content>75 percent of the remainder (after allocations are made under subclause (I) and subclause (II)) shall be allocated in accordance with clause (ii)(I); and</content> </subclause> <page identifier="/us/stat/95/728">95 STAT. 728</page> <subclause class="firstIndent1 fontsize10"><num value="IV">“(IV) </num><content>25 percent of such remainder shall be allocated in accordance with clause (iii).</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><chapeau>Of the amounts allocated under clause (i)(III) for any fiscal year—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>75 percent of such amounts shall be available for distribution among the licensees and permittees of public television stations pursuant to paragraph (6)(B); and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>25 percent of such amounts shall be available for distribution under subparagraph (B)(i) for public television programming.</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><chapeau>Of the amounts allocated under clause (i)(IV) for any fiscal year—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>not less than 50 percent of such amounts (as determined under paragraph (6)(A)) shall be available for distribution among the licensees and permittees of public radio stations pursuant to paragraph (6)(B); and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>not more than 50 percent of such amounts (as determined under paragraph (6)(A)) shall be available for distribution under subparagraph (B)(i) for public radio.</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num> <subclause class="firstIndent1 fontsize10"><num value="I">(I) </num><content>Subject to the provisions of clause (v), the Corporation shall defray an amount equal to 50 percent of the total costs of interconnection facilities and operations to facilitate the availability of public television and radio programs among public broadcast stations.</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>Of the amounts received as the result of any contract, lease agreement, or any other arrangement under which the Corporation directly or indirectly makes available interconnection facilities, 50 percent of such amounts shall be distributed to the licensees and permittees of public television stations and public radio stations. The Corporation shall not have any authority to establish any requirements, guidelines, or limitations with respect to the use of such amounts by such licensees and permittees.</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="v">“(v) </num><chapeau>If the expenses incurred by the Corporation under clause (i)(II) for any fiscal year for—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>capital costs relating to telecommunications satellites;</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>the payment of programming royalties and other fees; and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="III">“(III) </num><content>the costs of interconnection facilities and operations (as provided in clause (iv));</content> </subclause> <continuation class="indent0 firstIndent0 fontsize10">exceed 6 percent of the amounts appropriated into the Fund available for allocation for such fiscal year, then 75 percent of such excess costs shall be defrayed by the licensees and permittees of public television stations from amounts available to such licensees and permittees under clause (ii)(I) and 25 percent of such excess costs shall be defrayed by the licensees and permittees of public radio stations from amounts available to such licensees and permittees under clause (iii)(I).”.</continuation> </clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 396(k)(3)(B)(i) of the Communications Act of 1934 (47 U.S.C. 396(k)(3)(B)(D) is amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><clause class="inline"><num value="i">(i) </num><content>The Corporation shall utilize the funds allocated pursuant to subparagraph (A)(ii)(II) and subparagraph (A)(iii)(II), and a significant portion of such other funds as may be available to the Corporation, to make grants and contracts for production of public television or radio programs by independent producers and production entities and public telecommunications entities, and for acquisition of such programs by public telecommunications entities. Of the funds utilized pursuant to this clause, a substantial amount shall be reserved for distribution to independent producers and production entities for the production of programs.”.</content> </clause> </subparagraph> </quotedContent> </content></paragraph> <page identifier="/us/stat/95/729">95 STAT. 729</page> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>Section 396(k)(3)(B) of the Communications Act of 1934 (47 U.S.C. 396(k)(3)(B)) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>in clause (ii) thereof, by striking out “<quotedText>contained in the annual budget established by the Corporation under clause (i)</quotedText>” and inserting in lieu thereof “<quotedText>available for distribution under clause (1)</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out clause (iii) and clause (iv) thereof.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>The amendments made in this subsection shall apply to fiscal <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s396">47 USC 396 note</ref>.</p></sidenote>years beginning after September 30, 1983.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 396(k)(6)(A) of the Communications Act of 1934 (47 U.S.C. 396(k)(6)(A)) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><subparagraph class="inline"><num value="A">(A) </num><content>The Corporation, in consultation with public radio stations and with National Public Radio (or any successor organization), shall determine the percentage of funds allocated under subclause (I) and subclause (II) of paragraph (3)(A)(iii) for each fiscal year. The Corporation, in consultation with such organizations, also shall conduct an annual review of the criteria and conditions applicable to such allocations.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Section 396(k)(6)(B) of the Communications Act of 1934 (47 U.S.C. 396(k)(6)(B)) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out the first sentence thereof;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>in the second sentence thereof, by inserting “<quotedText>under paragraph (3)(A)(ii)(I)</quotedText>” after “<quotedText>stations</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>in the last sentence thereof, by inserting “<quotedText>under paragraph (3)(A)(iii)(I)</quotedText>” after “<quotedText>radio stations</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The amendments made in this subsection shall apply to fiscal <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s396">47 USC 396 note</ref>.</p></sidenote>years beginning after September 30, 1983.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Section 396(k)(7) of the Communications Act of 1934 (47 U.S.C. 396(k)(7)) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>The funds distributed pursuant to paragraph (3)(A) may be used at the discretion of the recipient for purposes related primarily to the production or acquisition of programming.”.</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>Section 396(k)(8) of the Communications Act of 1934 (47 U.S.C. 396(k)(8)) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="8">“(8) </num><chapeau>Any public telecommunications entity which—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>receives any funds pursuant to this subpart for any fiscal year; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>during such fiscal year has filed or was required to file a return with the Internal Revenue Service declaring unrelated business income related to station operations under sections 501, 511, and 512 of the Internal Revenue Code of 1954; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s501/511/512">26 USC 501, 511, 512</ref>.</p></sidenote></content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">shall refund to the Corporation an amount equal to the amount of unrelated business income tax paid as stated in such filed return.”.</continuation> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 396(k)(9)(A) of the Communications Act of 1934 (47 U.S.C. 396(k)(9)(A)) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>(other than any station which is owned and operated by a State, a political or special purpose subdivision of a State, or a public agency)</quotedText>” after “<quotedText>public broadcast station</quotedText>”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by inserting after “<quotedText>assure that</quotedText>” the following: “<quotedText>(i) its advisory board meets at regular intervals; (ii) the members of its advisory board regularly attend the meetings of the advisory board; and (iii)</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out “<quotedText>reasonably reflects</quotedText>” and inserting in lieu thereof “<quotedText>are reasonably representative of</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 396(k)(9)(D) of the Communications Act of 1934 (47 U.S.C. 396(k)(9)(D)) is amended by inserting “<quotedText>(other than any station which is owned and operated by a State, a political or special purpose <page identifier="/us/stat/95/730">95 STAT. 730</page>subdivision of a State, or a public agency)</quotedText>” after “<quotedText>public broadcast station</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Section 396(k)(9)(E) of the Communications Act of 1.934 (47 U.S.C. 396(k)(9)(E)) is amended by inserting “<quotedText>(other than any station which is owned and operated by a State, a political or special purpose subdivision of a State, or a public agency)</quotedText>” after “<quotedText>public broadcast station</quotedText>”.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">records and audit</heading><num value="1228"><inline class="smallCaps">Sec</inline>. 1228. </num><subsection class="inline"><num value="a">(a) </num><content>Section 396(l)(1)(A) of the Communications Act of 1934 (47 U.S.C. 396(l)(1)(A)) is amended by inserting “<quotedText>, except that such requirement shall not preclude shared auditing arrangements between any public telecommunications entity and its licensee where such licensee is a public or private institution</quotedText>” after “<quotedText>United States</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 396(l)(3)(B) of the Communications Act of 1934 (47 U.S.C. 396(l)(3)(B)) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>in clause (ii) thereof, by striking out “<quotedText>an annual</quotedText>” and inserting in lieu thereof “<quotedText>a biannual</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>in clause (iii) thereof, by striking out “<quotedText>annually</quotedText>” and inserting in lieu thereof “<quotedText>biannually</quotedText>”.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">editorializing and support of political candidates prohibited</heading><num value="1229"><inline class="smallCaps">Sec</inline>. 1229. </num><content>Section 399 of the Communications Act of 1934 (47 U.S.C. 399) is amended to read as follows: <quotedContent> <section> <heading class="centered smallCaps">“editorializing and support of political candidates prohibited</heading><num value="399">“<inline class="smallCaps">Sec</inline>. 399. </num><content>No noncommercial educational broadcasting station <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s396">47 USC 396</ref>.</p></sidenote>which receives a grant from the Corporation under subpart C of this part may engage in editorializing. No noncommercial educational broadcasting station may support or oppose any candidate for political office.”.</content> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">use of business or institutional logograms</heading><num value="1230"><inline class="smallCaps">Sec</inline>. 1230. </num><content>Subpart D of part IV of title III of the Communications Act of 1934 (47 U.S.C. 297) is amended by adding at the end thereof the following new section: <quotedContent> <section> <heading class="centered smallCaps">“use of business or institutional logograms</heading><num value="399A">“<inline class="smallCaps">Sec</inline>. 399A. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">“Business or institutional logogram.”</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s399A">47 USC 399A</ref>.</p></sidenote> <content class="inline">For purposes of this section, the term ‘business or institutional logogram means any aural or visual letters or words, or any symbol or sign, which is used for the exclusive purpose of identifying any corporation, company, or other organization, and which is not used for the purpose of promoting the products, services, or facilities of such corporation, company, or other organization.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>Each public television station and each public radio station shall be authorized to broadcast announcements which include the use of any business or institutional logogram and which include a reference to the location of the corporation, company, or other organization involved, except that such announcements may not interrupt regular programming.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>The provisions of this section shall not be construed to limit the authority of the Commission to prescribe regulations relating to the manner in which logograms may be used to identify corporations, companies, or other organizations.”.</content> </subsection> </section> </quotedContent> </content> </section> <page identifier="/us/stat/95/731">95 STAT. 731</page> <section> <heading class="centered smallCaps">offering of certain services, facilities, or products by public broadcast stations</heading><num value="1231"><inline class="smallCaps">Sec</inline>. 1231. </num><content>Subpart D of part IV of title III of the Communications Act of 1934, as amended in section 1230, is further amended by adding at the end thereof the following new section: <quotedContent> <section> <heading class="centered smallCaps">“offering of certain services, facilities, or products by public broadcast stations</heading><num value="399B">“<inline class="smallCaps">Sec</inline>. 399B. </num><subsection class="inline"><num value="a">(a) </num><chapeau>For purposes of this section, the term ‘advertisement’ <sidenote><p class="indent0 firstIndent0 fontsize8">“Advertisement.”</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s399B">47 USC 399B</ref>.</p></sidenote>means any message or other programming material which is broadcast or otherwise transmitted in exchange for any remuneration, and which is intended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>to promote any service, facility, or product offered by any person who is engaged in such offering for profit;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>to express the views of any person with respect to any matter of public importance or interest; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>to support or oppose any candidate for political office.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Except as provided in paragraph (2), each public broadcast station shall be authorized to engage in the offering of services, facilities, or products in exchange for remuneration.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>No public broadcast station may make its facilities available to any person for the broadcasting of any advertisement.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Any public broadcast station which engages in any offering specified in subsection (b)(1) may not use any funds distributed by the Corporation under section 396(k) to defray any costs associated with <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s396">47 USC 396</ref>.</p></sidenote>such offering. Any such offering by a public broadcast station shall not interfere with the provision of public telecommunications services by such station.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>Each public broadcast station which engages in the activity specified in subsection (b)(1) shall, in consultation with the Corporation, develop an accounting system which is designed to identify any amounts received as remuneration for, or costs related to, such activities under this section, and to account for such amounts separately from any other amounts received by such station from any source.”.</content> </subsection> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">study on alternative financing for public telecommunications</heading><num value="1232"><inline class="smallCaps">Sec</inline>. 1232. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>A study shall be conducted in accordance with the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s396">47 USC 396 note</ref>.</p></sidenote>provisions of this section regarding options which may be available to public telecommunications entities, the Public Broadcasting Service, and National Public Radio with respect to the development of sources of revenue in addition to the sources of revenue available to such entities and organizations on the date of the enactment of this Act. Such study shall be completed not later than July 1, 1982, and a <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote>report shall be submitted to the Congress in accordance with subsection (i).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The study required in paragraph (1) shall seek to identify funding options which also will ensure that public telecommunications as a source of alternative and diverse programming will be maintained and enhanced, and that public telecommunications services will continue to expand and be available to increasing numbers of citizens throughout the Nation.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The study required in paragraph (1), in examining funding alternatives, also shall seek to determine appropriate means for ensuring that the use of such funding alternatives does not interfere <page identifier="/us/stat/95/732">95 STAT. 732</page>with the content and quality of programming appearing on public television and radio.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Temporary Commission on Alternative Financing for Public Telecommunications.</p></sidenote> <content class="inline">The study required in subsection (a)(1) shall be conducted by a commission to be known as the Temporary Commission on Alternative Financing for Public Telecommunications (hereinafter in this section referred to as the “Commission”).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The Commission shall consist of the Chairman of the Federal Communications Commission (or a member of the Commission designated by the Chairman); the Assistant Secretary of Commerce for Communications and Information (or his delegate); the heads of the Corporation for Public Broadcasting, National Public Radio, and the National Association of Public Television Stations (or their delegates); the Chairman and the ranking minority member of the Committee on Commerce, Science, and Transportation of the Senate (or any members of such committee designated by them); and the Chairman and ranking minority member of the Committee on Energy and Commerce of the House of Representatives (or any members of such committee designated by them).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>In addition to the members of the Commission specified in paragraph (2), an officer or employee of a public television station and an officer or employee of a public radio station shall serve as members of the Commission. Such members shall be selected by the members of the Commission specified in paragraph (2). Such selection shall be made at the first meeting conducted by the Commission.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Definitions.</p></sidenote> <content class="inline">For purposes of this subsection, the terms “public television station” and “public radio station” have the same meaning as the term “public broadcast station” in section 397(6) of the Communications Act of 1934 (47 U.S.C. 397(6)).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The members of the Commission shall serve without compensation, but the Federal Communications Commission shall make funds available to reimburse such members for travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in the Federal Government service are allowed expenses under section 5703 of title 5, United States Code.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>The Chairman of the Federal Communications Commission (or the person designated by the Chairman under subsection (b)(2)) shall serve as Chairman of the Commission.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>The Commission shall meet at the call of the Chairman or a majority of the members of the Commission. Six members of the Commission shall constitute a quorum.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><paragraph class="inline"><num value="1">(1) </num><content>Upon request of the Commission, the Federal Communications Commission shall furnish the Commission with such personnel and support services as may be necessary to assist the Commission in carrying out its duties and functions under this section. The Commission shall not be required to pay or reimburse the Federal Communications Commission for such personnel and support services.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The Assistant Secretary of Commerce for Communications and Information, and the heads of the Corporation for Public Broadcasting, the Public Broadcasting Service, National Public Radio, and the National Association of Public Television Stations, each are authorized to furnish the Commission with such personnel and support services as each such organization considers necessary or appropriate to assist the Commission in carrying out its duties and functions under this section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>The Commission shall have authority to hold such hearings, sit and act at such times and places, and take such testimony as the Commission considers advisable. The Commission shall seek to obtain the testimony and advice of business representatives, persons repre-<page identifier="/us/stat/95/733">95 STAT. 733</page>senting public interest groups, and other persons and organizations which have an interest in public broadcasting.</content> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><content>The Commission shall be exempt from section 10(e), section 10(f), and section 14 of the Federal Advisory Committee Act (5 U.S.C. Appendix).</content> </subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num><content>The Commission shall submit a report to the Congress containing <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote>the results of the study required in subsection (a)(1) not later than July 1, 1982. Such report shall include an evaluation of each option with respect to the development of additional sources of revenue, and shall include recommendations for such legislative or other action as the Commission considers necessary or appropriate.</content> </subsection> <subsection class="indent0 fontsize10"><num value="j">(j) </num><paragraph class="inline"><num value="1">(1) </num><content>Except as provided in paragraph (2), the Commission shall <sidenote><p class="indent0 firstIndent0 fontsize8">Termination.</p></sidenote>terminate at the end of the 90-day period following the date of the submission of the report required in subsection (i).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>If the Commission decides to establish the demonstration program specified in section 1233, then the Commission shall reconvene after the termination of the demonstration program conducted under section 1233 for the purpose of carrying out the functions of the Commission specified in section 1233(e). The Commission shall terminate at the end of the 90-day period following the date of the submission of the report required in section 1233(e).</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">demonstration program regarding advertising</heading><num value="1233"><inline class="smallCaps">Sec</inline>. 1233. </num><subsection class="inline"><num value="a">(a) </num><content>The Temporary Commission on Alternative Financing <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s396">47 USC 396 note</ref>.</p></sidenote>for Public Telecommunications established in section 1232 may establish a demonstration program in accordance with this section for the purpose of determining the feasibility of permitting public television station licensees and public radio station licensees to broadcast advertising announcements. If the Commission decides to establish such demonstration program, then the Commission shall establish and carry out such demonstration program in accordance with the provisions of subsection (b) through subsection (f).</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><subparagraph class="inline"><num value="A">(A) </num><content>The Commission shall establish the demonstration program as soon as practicable after the date of the enactment of this Act. The Commission shall permit public broadcast station licensees to begin the broadcasting of qualifying advertising not later than January 1, 1982, except that such licensees may begin such advertising before such date if the Commission completes the establishment of the demonstration program before such date.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Such broadcasting of qualifying advertising shall be carried out <sidenote><p class="indent0 firstIndent0 fontsize8">Termination.</p></sidenote>during the 18-month period beginning January 1, 1982 (or beginning on such earlier date as may be authorized by the Commission under subparagraph (A)), except that such broadcasting of qualifying advertising shall terminate not later than June 30, 1983. The demonstration program shall terminate at the end of such period.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>The Corporation for Public Broadcasting, in consultation with the Commission, shall select not more than 10 public television station licensees and not more than 10 public radio station licensees to participate in the demonstration program.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Such selection shall be made from among licensees which have expressed to the Corporation a desire to participate in the demonstration program, except that any public television station licensee or public radio station licensee which is represented on the Commission under section 1232(b)(3) shall not be eligible to participate in the demonstration program.</content></subparagraph> <page identifier="/us/stat/95/734">95 STAT. 734</page> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>If a licensee elects not to participate in the demonstration program, after receiving notice of its selection from the Corporation, then the Corporation shall select an alternate licensee.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>The exemption from income tax of any public broadcast station <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s501">26 USC 501</ref>.</p></sidenote>licensee under section 501(a) of the Internal Revenue Code of 1954, relating to exemption from taxation, shall not be affected by the participation of such licensee in the demonstration program.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>The Corporation shall make selections under paragraph (2), to the extent practicable, in a manner which ensures that—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>a representative geographical distribution of public broadcast station licensees will be achieved;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>licensees serving audiences and markets of various sizes will participate in the demonstration program;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>licensees with operating budgets of various sizes will participate in the demonstration program;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>different types of licensees will participate in the demonstration program; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>in the case of public radio station licensees, licensees with different types of programming formats will participate in the demonstration program.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Each public television station licensee or public radio station licensee which is selected by the Corporation for Public Broadcasting under subsection (b) shall be authorized to broadcast qualifying advertising in accordance with subsection (d).</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num><subparagraph class="inline"><num value="A">(A) </num><content>Except as provided in subparagraph (B), any qualifying advertising announcement which is broadcast by any public television station licensee or any public radio station licensee may be broadcast only at the beginning or at the end of regular programs, and may not interrupt regular programs.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>In the case of any regular program which is 2 or more hours in duration, any public radio station licensee may broadcast (subject to paragraph (2)) a qualifying advertising announcement during the program, but only (i) during a break in the program scheduled for station identification; or (ii) at other times which will not unduly disrupt the program.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Any qualifying advertising announcements which are broadcast consecutively by any public television station licensee or any public radio station licensee may not exceed 2 minutes in duration. Such licensees may not engage in any such consecutive broadcasts of qualifying advertising announcements more than once during any 30-minute period.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><subparagraph class="inline"><num value="A">(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> <chapeau class="inline">The Commission shall prescribe regulations which specify the types of advertisements which may be broadcast by licensees during the demonstration program. The Commission may authorize licensees participating in the demonstration program to broadcast institutional advertisements and advertisements relating to specific products, services, or facilities. Licensees shall not be authorized or required to broadcast any advertisement which—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>is intended to promote any opinion or point-of-view regarding any matter of public importance or interest, any political issue, or any matter relating to religion; or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>is intended to support or oppose any candidate for political office.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>The Federal Communications Commission shall have authority to determine in disputed cases whether any advertising announcement shall be considered to be qualifying advertising for purposes of this section.</content></subparagraph> </paragraph> <page identifier="/us/stat/95/735">95 STAT. 735</page> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><chapeau>The Commission shall prescribe regulations which establish <sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote>requirements relating to the sale of broadcast time for advertisements during the demonstration program. Such regulations may authorize—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the assignment of broadcast time for advertisements through a system of random selection;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>the sale of broadcast time for advertisements which will be broadcast at the beginning or at the end of particular programs, or during particular portions of the broadcast day; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>any other method for the sale of broadcast time which the Commission considers appropriate.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>The Commission shall have authority to prescribe regulations under paragraph (3) and paragraph (4) which establish different criteria and requirements applicable to the various licensees participating in the demonstration program, to the extent the Commission considers the establishment of such different criteria and requirements to be necessary to assist the Commission in preparing the report, and making the recommendations, required in subsection (e).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>Any issue regarding compliance with the provisions of this subsection shall be resolved by the Federal Communications Commission in accordance with its authority under the Communications Act of 1934 (47 U.S.C. 151 et seq.).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>The Commission, as soon as practicable after the termination <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote>of the demonstration program under subsection (b)(1)(A), shall analyze the results of the demonstration program and shall submit a report to each House of the Congress regarding the demonstration program. Such report shall be submitted not later than October 1, 1983, and shall include—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>an examination of whether qualifying advertising had any influence or effect upon programming broadcast by the public broadcast station licensees involved;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>an analysis of the reaction of audiences to the broadcasting of such qualifying advertising;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>an examination of the extent to which businesses and other organizations engaged in the purchase of broadcast time for the broadcast of qualifying advertising;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>an analysis of whether the broadcasting of qualifying advertising had any impact upon the underwriting of programs; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>any other findings or information which the Commission considers appropriate.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Such report also shall include such recommendations for legislative or other action as the Commission considers appropriate, including a recommendation regarding whether public broadcast stations should be permitted to broadcast qualifying advertising on a permanent basis.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><chapeau>For purposes of this section: <sidenote><p class="indent0 firstIndent0 fontsize8">Definitions.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>The term “Commission” means the Temporary Commission on Alternative Financing for Public Telecommunications established in section 1232.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The term “demonstration program” means the demonstration program which the Commission is authorized to establish in accordance with this section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The terms “public broadcast station”, “public television station”, and “public radio station” have the same meaning as the term “public broadcast station” in section 397(6) of the Communications Act of 1934 (47 U.S.C. 397(6)).</content></paragraph> <page identifier="/us/stat/95/736">95 STAT. 736</page> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>The term “qualifying advertising” means any type of advertising specified by the Commission under subsection (d)(3)(A).</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">technical amendments</heading><num value="1234"><inline class="smallCaps">Sec</inline>. 1234. </num><subsection class="inline"><num value="a">(a) </num><content>Section 396(g) of the Communications Act of 1934 (47 U.S.C. 396(g)) is amended by striking out paragraph (5) thereof, and by redesignating paragraph (6) as paragraph (5).</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 397(15) of the Communications Act of 1934 (47 U.S.C. 397(15)) is amended by striking out “<quotedText>, Education, and Welfare</quotedText>” and inserting in lieu thereof “<quotedText>Human Services</quotedText>”.</content> </subsection> </section> </chapter> <chapter><num value="2">CHAPTER 2—</num><heading>TELEVISION AND RADIO BROADCASTING</heading> <section> <heading class="centered smallCaps">television and radio license terms</heading><num value="1241"><inline class="smallCaps">Sec</inline>. 1241. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 307(d) of the Communications Act of 1934 (47 U.S.C. 307(d)) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>television</quotedText>” after “<quotedText>operation of a</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>three years</quotedText>” each place it appears therein and inserting in lieu thereof “<quotedText>five years</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by inserting “<quotedText>(other than a radio broadcasting station)</quotedText>” after “<quotedText>class of station</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by inserting after the first sentence thereof the following new sentence: “Each license granted for the operation of a radio broadcasting station shall be for a term of not to exceed seven years.”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>by inserting “<quotedText>television</quotedText>” after “in the case of the first place it appears therein;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>by inserting “<quotedText>for a term of not to exceed seven years in the case of radio broadcasting station licenses,</quotedText>” after “<quotedText>licenses,</quotedText>” the first place it appears therein; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>by inserting “<quotedText>for a term of</quotedText>” after “<quotedText>and</quotedText>” the third place it appears therein.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s307">47 USC 307 note</ref>.</p></sidenote> <content class="inline">The amendments made in subsection (a) shall apply to television and radio broadcasting licenses granted or renewed by the Federal Communications Commission after the date of the enactment of this Act.</content> </subsection> </section> <section> <heading class="centered smallCaps">granting of certain initial licenses and permits based on system of random selection</heading><num value="1242"><inline class="smallCaps">Sec</inline>. 1242. </num><subsection class="inline"><num value="a">(a) </num><content>Section 309 of the Communications Act of 1934 (47 U.S.C. 309) is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="i">“(i) </num><paragraph class="inline"><num value="1">(1) </num><content>If there is more than one applicant for any initial license or construction permit which will involve any use of the electromagnetic spectrum, then the Commission, after determining the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s308">47 USC 308</ref>.</p></sidenote>qualifications of each such applicant under section 308(b), shall have authority to grant such license or permit to a qualified applicant through the use of a system of random selection.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The determination of the Commission under paragraph (1) with respect to the qualifications of applicants for an initial license or construction permit shall be made after notice and opportunity for a <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s409">47 USC 409</ref>.</p></sidenote>hearing, except that the provisions of section 409(c)(2) shall not apply in the case of any such determination.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><subparagraph class="inline"><num value="A">(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Rules.</p></sidenote> <content class="inline">The Commission shall establish rules and procedures to ensure that, in the administration of any system of random selection <page identifier="/us/stat/95/737">95 STAT. 737</page>under this subsection, groups or organizations, or members of groups or organizations, which are underrepresented in the ownership of telecommunications facilities or properties will be granted significant preferences.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>The Commission shall have authority to require each qualified applicant seeking a significant preference under subparagraph (A) to submit to the Commission such information as may be necessary to enable the Commission to make a determination regarding whether such applicant shall be granted such preference. Such information shall be submitted in such form, at such times, and in accordance with such procedures, as the Commission may require.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><subparagraph class="inline"><num value="A">(A) </num><content>The Commission, not later than 180 days after the effective <sidenote><p class="indent0 firstIndent0 fontsize8">Rules on random selection.</p></sidenote>date of this subsection, shall, after notice and opportunity for hearing, prescribe rules establishing a system of random selection for use by the Commission under this subsection in any instance in which the Commission, in its discretion, determines that such use is appropriate for the granting of any license or permit in accordance with paragraph (1).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>The Commission shall have authority to amend such rules from time to time to the extent necessary to carry out the provisions of this subsection. Any such amendment shall be made after notice and opportunity for hearing.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>The Commission shall have authority to use the system of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s309">47 USC 309 note</ref>.</p></sidenote>random selection established by the Commission under section 309(i) of the Communications Act of 1934, as added in subsection (a), with respect to any application for an initial license or construction permit which will involve any use of the electromagnetic spectrum and which—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>is filed with the Commission after the date of the enactment of this Act; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>is pending before the Commission on such date of enactment but has not been designated for hearing on or before such date of enactment.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">special requirements relating to broadcasting station license applications</heading><num value="1243"><inline class="smallCaps">Sec</inline>. 1243. </num><content>Section 311 of the Communications Act of 1934 (47 U.S.C. 311) is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><content>If there are pending before the Commission two or more applications for a license granted for the operation of a broadcasting station, only one of which can be granted, it shall be unlawful, without approval of the Commission, for the applicants or any of them to effectuate an agreement whereby one or more of such applicants withdraws his or their application or applications in exchange for the payment of money, or the transfer of assets or any other thing of value by the remaining applicant or applicants.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The request for Commission approval in any such case shall be made in writing jointly by all the parties to the agreement. Such request shall contain or be accompanied by full information with respect to the agreement, set forth in such detail, form, and manner as the Commission shall require.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The Commission shall approve the agreement only if it determines that (A) the agreement is consistent with the public interest, convenience, or necessity; and (B) no party to the agreement filed its license application for the purpose of reaching or carrying out such agreement.</content></paragraph> <page identifier="/us/stat/95/738">95 STAT. 738</page> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>For purposes of this subsection, an application shall be deemed to be pending before the Commission from the time such application is filed with the Commission until an order of the Commission granting or denying it is no longer subject to rehearing by the Commission or to review by any court”.</content></paragraph> </subsection> </quotedContent> </content> </section> </chapter> <chapter><num value="3">CHAPTER 3—</num><heading>REGULATORY AGENCIES</heading> <subchapter><num value="A">Subchapter A—</num><heading>Federal Communications Commission</heading> <section> <heading class="centered smallCaps">authorization of appropriations</heading><num value="1251"><inline class="smallCaps">Sec</inline>. 1251. </num><subsection class="inline"><num value="a">(a) </num><content>The Communications Act of 1934 (47 U.S.C. 151 et seq.) is amended by inserting after section 5 the following new section: <quotedContent> <section> <heading class="centered smallCaps">“authorization of appropriations</heading><num value="6">“<inline class="smallCaps">Sec</inline>. 6. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t47/s156">47 USC 156</ref>.</p></sidenote> <content class="inline">There is authorized to be appropriated for the administration of this Act by the Commission $76,900,000, together with such sums as may be necessary for increases resulting from adjustments in salary, pay, retirement, other employee benefits required by law, and other nondiscretionary costs, for each of the fiscal years 1982 and 1983.”.</content> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 4(g) of the Communications Act of 1934 (47 U.S.C. 154(g)) is amended by striking out “<quotedText>from time to time may be appropriated for by Congress</quotedText>” and inserting in lieu thereof “<quotedText>may be appropriated for by the Congress in accordance with the authorizations of appropriations established in section 6</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">managing director of commission; annual report</heading><num value="1252"><inline class="smallCaps">Sec</inline>. 1252. </num><content>Section 5 of the Communications Act of 1934 (47 U.S.C. 155) is amended by adding at the end thereof the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><content>The Commission shall have a Managing Director who shall be appointed by the Chairman subject to the approval of the Commission. The Managing Director, under the supervision and direction of the Chairman, shall perform such administrative and executive functions as the Chairman shall delegate. The Managing Director shall be paid at a rate equal to the rate then payable for level V of the Executive Schedule.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote> <chapeau class="inline">The Commission shall submit an annual report to the Congress not later than January 31 of each year. Such report shall—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>list the specific goals, objectives, and priorities of the Commission which shall be projected over 12-month, 24-month, and 36-month periods;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>describe in detail the programs which are, or shall be, established to meet or carry out such goals, objectives, and priorities;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>provide an evaluation of actions taken during the preceding year with regard to fulfilling the functions of the Commission; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>contain recommendations for legislative action required to enable the Commission to meet its objectives.”.</content></paragraph> </subsection> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">uniform system of accounts</heading><num value="1253"><inline class="smallCaps">Sec</inline>. 1253. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>The Federal Communications Commission (hereinafter in this section referred to as the “Commission”) shall complete <page identifier="/us/stat/95/739">95 STAT. 739</page>the rulemaking proceeding relating to the revision of the uniform system of accounts used by telephone companies (Common Carrier Docket 78–196; notice of proposed rulemaking adopted June 28, 1978, 43 Federal Register 33560) as soon as practicable after the date of the enactment of this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Such uniform system shall require that each common carrier shall maintain a system of accounting methods, procedures, and techniques (including accounts and supporting records and memoranda) which shall ensure a proper allocation of all costs to and among telecommunications services, facilities, and products (and to and among classes of such services, facilities, and products) which are developed, manufactured, or offered by such common carrier.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The Commission shall submit a report to each House of the <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote>Congress not later than one year after the date of the enactment of this Act. Such report shall include a summary of actions taken by the Commission in connection with the rulemaking proceeding specified in subsection (a), together with such other information as the Commission considers appropriate.</content> </subsection> </section> </subchapter> <subchapter><num value="B">Subchapter B—</num><heading>National Telecommunications and Information Administration</heading> <section> <heading class="centered smallCaps">authorization of appropriations</heading><num value="1255"><inline class="smallCaps">Sec</inline>. 1255. </num><content>There is authorized to be appropriated for the administration of the National Telecommunications and Information Administration $16,483,500, together with such sums as may be necessary for increases resulting from adjustments in salary, pay, retirement, other employee benefits required by law, and other nondiscretionary costs, for fiscal year 1982.</content> </section> </subchapter> </chapter> </subtitle> <subtitle><num value="C">Subtitle C—</num><heading>Department of Commerce</heading> <section> <heading class="centered smallCaps">authorization of appropriations</heading><num value="1261"><inline class="smallCaps">Sec</inline>. 1261. </num><content>There are authorized to be appropriated to the Secretary of Commerce for expenses necessary for the general administration of the Department of Commerce not to exceed $33,472,300 for fiscal year 1982, $33,472,300 for fiscal year 1983, and $33,472,300 for fiscal year 1984.</content> </section> </subtitle> <num value="XIII">TITLE XIII—</num><heading>INTERNATIONAL AFFAIRS</heading> <subtitle><num value="A">Subtitle A—</num><heading>Public Law 480</heading> <section> <heading class="centered smallCaps">appropriation limits</heading><num value="1301"><inline class="smallCaps">Sec</inline>. 1301. </num><content>Notwithstanding any other provision of law, programs <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1733">7 USC 1733 note</ref>.</p></sidenote>shall not be undertaken under title I (including title III) and title II of the Agricultural Trade Development and Assistance Act of 1954 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s1701/1721/1427">7 USC 1701, 1721, 1427</ref>.</p></sidenote>during any calendar year which call for an appropriation of more than $1,304,836,000 for the fiscal year 1982, $1,320,292,000 for the fiscal year 1983, and $1,402,278,000 for the fiscal year 1984.</content> </section> </subtitle> <page identifier="/us/stat/95/740">95 STAT. 740</page> <subtitle><num value="B">Subtitle B—</num><heading>International Development Banks</heading> <part><num value="1">PART 1—</num><heading>INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT</heading> <section> <heading class="centered smallCaps">increase in subscription of stock</heading><num value="1311"><inline class="smallCaps">Sec</inline>. 1311. </num><content>The Bretton Woods Agreements Act (22 U.S.C. 286 et seq.) is amended by adding at the end thereof the following new section: <quotedContent> <section class="firstIndent1 fontsize10"><num value="39">“<inline class="smallCaps">Sec</inline>. 39. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s286e–1h">22 USC 286e–1h</ref>.</p></sidenote> <chapeau class="inline">The United States Governor of the Bank is authorized—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>to vote to increase by three hundred and sixty-five thousand shares the authorized capital stock of the Bank; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>to subscribe on behalf of the United States to not more than seventy-three thousand and ten shares of the capital stock of the Bank: <proviso><i>Provided, however</i>, That not more than seven and one-half percent ($658,305,195) of the price of the shares subscribed may be paid in to the Bank on subscription, with the remainder of that price ($8,149,256,155) being subject to call only when a call on unpaid subscriptions is required to meet obligations of the Bank for funds borrowed or on loans guaranteed by it and not for use by the Bank in its lending activities or for administrative expenses:</proviso> <proviso><i>Provided further</i>, That any subscription to such additional shares shall be effective only to such extent or in such amounts as are provided in advance in appropriations Acts.</proviso></content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote> <content class="inline">In Order to pay for the paid-in portion of the United States subscription to the Bank provided for in this section, there is authorized to be appropriated, without fiscal year limitation, $658,305,195 for payment by the Secretary of the Treasury: <proviso><i>Provided, however</i>, That not more than $109,720,549 of such sum may be made available for each of the fiscal years 1982, 1983, and 1984.”.</proviso></content> </subsection> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">future subscriptions of stock</heading><num value="1312"><inline class="smallCaps">Sec</inline>. 1312. </num><content>Section 27(a)(2) of the Bretton Woods Agreements Act (22 U.S.C. 286e–1f(a)(2)) is amended by striking out “<quotedText>That any subscription to additional shares shall be made only after the amount required for such subscription has been appropriated</quotedText>” and inserting in lieu thereof “<quotedText>That any subscription to additional shares shall be effective only to such extent or in such amounts as are provided in advance in appropriations Acts</quotedText>”.</content> </section> </part> <part><num value="2">PART 2—</num><heading>INTERNATIONAL DEVELOPMENT ASSOCIATION</heading> <section> <heading class="centered smallCaps">sixth replenishment</heading><num value="1321"><inline class="smallCaps">Sec</inline>. 1321. </num><content>The International Development Association Act (22 U.S.C. 284 et seq.) is amended by adding at the end thereof the following new section: <quotedContent> <section class="firstIndent1 fontsize10"><num value="17">“<inline class="smallCaps">Sec</inline>. 17. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s284o">22 USC 284<i>o</i></ref>.</p></sidenote> <content class="inline">The United States Governor is authorized to agree on behalf of the United States to pay to the Association $3,240,000,000 as the United States contribution to the sixth replenishment of the resources of the Association: <proviso><i>Provided, however</i>, That any commitment to make such contributions shall be made subject to obtaining the necessary appropriations.</proviso></content> </subsection> <page identifier="/us/stat/95/741">95 STAT. 741</page> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>In order to pay for the United States contributions provided for <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote>in this section, there is authorized to be appropriated, without fiscal year limitation, $3,240,000,000 for payment by the Secretary of the Treasury: <proviso><i>Provided, however</i>, That not more than $850,000,000 of such sum may be made available for the fiscal year 1982 and not more than $945,000,000 of such sum may be made available for the fiscal year 1983.”.</proviso></content> </subsection> </section> </quotedContent> </content> </section> </part> <part><num value="3">PART 3—</num><heading>AFRICAN DEVELOPMENT BANK <sidenote><p class="indent0 firstIndent0 fontsize8">African Development Bank Act.</p></sidenote></heading> <section> <heading class="centered smallCaps">short title</heading><num value="1331"><inline class="smallCaps">Sec</inline>. 1331. </num><content>This part may be cited as the “<shortTitle role="part">African Development <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s290i">22 USC 290i note</ref>.</p></sidenote>Bank Act</shortTitle>”.</content> </section> <section> <heading class="centered smallCaps">acceptance of membership</heading><num value="1332"><inline class="smallCaps">Sec</inline>. 1332. </num><content>The President is hereby authorized to accept membership <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s290i">22 USC 290i</ref>.</p></sidenote>for the United States in the African Development Bank (hereinafter in this part referred to as the “Bank”) provided for by the agreement establishing the Bank (hereinafter in this part referred to as the “agreement”) deposited in the archives of the United Nations.</content> </section> <section> <heading class="centered smallCaps">governor and alternate governor</heading><num value="1333"><inline class="smallCaps">Sec</inline>. 1333. </num><subsection class="inline"><num value="a">(a) </num><content>The President, by and with the advice and consent of <sidenote><p class="indent0 firstIndent0 fontsize8">Appointment.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s290i–1">22 USC 290i–1</ref>.</p></sidenote>the Senate, shall appoint a Governor and an Alternate Governor of the Bank. The term of office for the Governor and the Alternate Governor shall be five years, subject at any time to termination of appointment or to reappointment. The Governor and Alternate Governor shall remain in office until a successor has been appointed.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>No person shall be entitled to receive any salary or other compensation from the United States for services as a Governor or Alternate Governor, except for reasonable expenses to attend meetings of the Board of Governors.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The Governor, or in the Governor’s absence the Alternate Governor, on the instructions of the President, shall cast the votes of the United States for the Director to represent the United States in the Bank.</content> </subsection> </section> <section> <heading class="centered smallCaps">director or alternate director; allowances</heading><num value="1334"><inline class="smallCaps">Sec</inline>. 1334. </num><content>The Director or Alternate Director representing the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s290i–2">22 USC 290i–2</ref>.</p></sidenote>United States, if citizens of the United States, may, in the discretion of the President, receive such compensation, allowances, and other benefits as, together with those received from the Bank and from the African Development Fund, may not exceed those authorized for a chief of mission under the Foreign Service Act of 1980. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s3901">22 USC 3901 note</ref>.</p></sidenote></content> </section> <section> <heading class="centered smallCaps">applicability of bretton woods agreements act</heading><num value="1335"><inline class="smallCaps">Sec</inline>. 1335. </num><content>The provisions of section 4 of the Bretton Woods <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s290i–3">22 USC 290i–3</ref>.</p></sidenote>Agreements Act (22 U.S.C. 286b) shall apply with respect to the Bank to the same extent as with respect to the International Bank for Reconstruction and Development and the International Monetary Fund. Reports with respect to the Bank under paragraphs (5) and (6) of section 4 of that Act shall be included in the first and subsequent reports made thereunder after the United States accepts membership in the Bank.</content> </section> <page identifier="/us/stat/95/742">95 STAT. 742</page> <section> <heading class="centered smallCaps">restrictions</heading><num value="1336"><inline class="smallCaps">Sec</inline>. 1336. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s290i–4">22 USC 290i–4</ref>.</p></sidenote> <chapeau class="inline">Unless authorized by law, neither the President, nor any person or agency, shall, on behalf of the United States—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>subscribe to additional shares of stock of the Bank;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>vote for or agree to any amendment of the agreement which increases the obligations of the United States, or which changes the purpose or functions of the Bank; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>make a loan or provide other financing to the Bank, except that funds for technical assistance may be provided to the Bank by a United States agency created pursuant to an Act of Congress which is authorized by law to provide funds to international organizations.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">federal reserve banks as depositories</heading><num value="1337"><inline class="smallCaps">Sec</inline>. 1337. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s290i–5">22 USC 290i–5</ref>.</p></sidenote> <content class="inline">Any Federal Reserve bank which is requested to do so by the Bank shall act as its depository or as its fiscal agent, and the Board of Governors of the Federal Reserve System shall supervise and direct the carrying out of these functions by the Federal Reserve banks.</content> </section> <section> <heading class="centered smallCaps">subscription of stock</heading><num value="1338"><inline class="smallCaps">Sec</inline>. 1338. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s290i–6">22 USC 290i–6</ref>.</p></sidenote> <content class="inline">The President is authorized to agree to subscribe on behalf of the United States to twenty-nine thousand eight hundred and twenty shares of the capital stock of the Bank: <proviso><i>Provided, however</i>, That the subscription shall be effective only to such extent or in such amounts as are provided in advance in appropriations Acts.</proviso></content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote> <content class="inline">There is authorized to be appropriated, without fiscal year limitation, for payment by the Secretary of the Treasury of the initial United States subscription to twenty-nine thousand eight hundred and twenty shares of the capital stock of the Bank, $359,733,570: <proviso><i>Provided, however</i>, That not more than $17,986,679 of such sum may be made available for paid in subscriptions to the Bank for each of the fiscal years 1982, 1983, and 1984.</proviso></content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Any payment or distributions of moneys from the Bank to the United States shall be covered into the Treasury as a miscellaneous receipt.</content> </subsection> </section> <section> <heading class="centered smallCaps">jurisdiction of united states courts</heading><num value="1339"><inline class="smallCaps">Sec</inline>. 1339. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s290i–7">22 USC 290i–7</ref>.</p></sidenote> <content class="inline">For the purposes of any civil action which may be brought within the United States, its territories or possessions, or the Commonwealth of Puerto Rico, by or against the Bank in accordance with the agreement, the Bank shall be deemed to be an inhabitant of the Federal judicial district in which its principal office within the United States or its agent appointed for the purpose of accepting service or notice of service is located, and any such action to which the Bank shall be a party shall be deemed to arise under the laws of the United States, and the district courts of the United States, including the courts enumerated in section 460 of title 28, United States Code, shall have original jurisdiction of any such action. When the Bank is defendant in any action in a State court, it may at any time before the trial thereof remove the action into the appropriate district court of the United States by following the procedure for removal provided in section 1446 of title 28, United States Code.</content> </section> <page identifier="/us/stat/95/743">95 STAT. 743</page> <section> <heading class="centered smallCaps">effectiveness of agreement</heading><num value="1340"><inline class="smallCaps">Sec</inline>. 1340. </num><content>Paragraph 5 of article 49, articles 50 through 59, and the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s290i–8">22 USC 290i–8</ref>.</p></sidenote>other provisions of the agreement shall have full force and effect in the United States, its territories and possessions, and the Commonwealth of Puerto Rico, upon acceptance of membership by the United States in the Bank. The President, at the time of deposit of the instrument of acceptance of membership by the United States in the Bank, shall also deposit a declaration as provided in article 64, paragraph 3, of the agreement that the United States retains for itself and its political subdivisions the right to tax salaries and emoluments paid by the Bank to United States citizens or nationals.</content> </section> <section> <heading class="centered smallCaps">securities issued by the bank</heading><num value="1341"><inline class="smallCaps">Sec</inline>. 1341. </num><subsection class="inline"><num value="a">(a) </num><content>Any securities issued by the Bank (including any <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s290i–9">22 USC 290i–9</ref>.</p></sidenote>guarantee by the Bank, whether or not limited in scope) in connection with the raising of funds for inclusion in the Bank’s ordinary capital resources as defined in article 9 of the agreement and any securities guaranteed by the Bank as to both principal and interest to which the commitment in article 7, paragraph 4(a), of the agreement is expressly applicable, shall be deemed to be exempted securities within the meaning of section 3(a)(2) of the Securities Act of 1933 (15 U.S.C. 77c) and section 3(a)(12) of the Securities Exchange Act of 1934 (15 U.S.C. 78c). The Bank shall file with the Securities and Exchange Commission such annual and other reports with regard to such securities as the Commission shall determine to be appropriate in view of the special character of the Bank and its operations as necessary in the public interest or for the protection of investors.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The Securities and Exchange Commission, acting in consultation with such agency or officer as the President shall designate, is authorized to suspend the provisions of subsection (a) at any time as to any or all securities issued or guaranteed by the Bank during the period of such suspension. The Commission shall include in its annual reports to Congress such information as it shall deem advisable with regard to the operations and effect of this section and in connection therewith shall include any views submitted for such purpose by any association of dealers registered with the Commission.</content> </subsection> </section> <section> <heading class="centered smallCaps">technical amendments</heading><num value="1342"><inline class="smallCaps">Sec</inline>. 1342. </num><subsection class="inline"><num value="a">(a) </num><content>The seventh sentence of paragraph 7 of section 5136 of the Revised Statutes of the United States (12 U.S.C. 24) is amended by striking out “<quotedText>or</quotedText>” after “<quotedText>the Inter-American Development Bank</quotedText>” and inserting in lieu thereof a comma, and by inserting “<quotedText>or the African Development Bank</quotedText>” after “<quotedText>the Asian Development Bank</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 701(a) of Public Law 95–118 (22 U.S.C. 262d(a)) is amended by striking out “<quotedText>and</quotedText>” after “<quotedText>the African Development Fund,</quotedText>” and inserting “<quotedText>and the African Development Bank,</quotedText>” after “<quotedText>the Asian Development Bank,</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 801(a) of Public Law 95–118 (22 U.S.C. 262f(a)) is amended by striking out “<quotedText>and</quotedText>” after “<quotedText>the African Development Fund,</quotedText>” and inserting “<quotedText>and the African Development Bank,</quotedText>” after “<quotedText>the Asian Development Bank,</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Section 51 of Public Law 91–599 (22 U.S.C. 276c–2) is amended by striking out “<quotedText>and</quotedText>” after “<quotedText>the Asian Development Bank,</quotedText>” and inserting “<quotedText>and the African Development Bank,</quotedText>” after “<quotedText>the African Development Fund,</quotedText>”.</content> </subsection> </section> </part> <page identifier="/us/stat/95/744">95 STAT. 744</page> <part><num value="4">PART 4—</num><heading>INTER-AMERICAN DEVELOPMENT BANK AND ASIAN DEVELOPMENT BANK</heading> <section> <heading class="centered smallCaps">contributions to the inter-american development bank</heading><num value="1351"><inline class="smallCaps">Sec</inline>. 1351. </num><subsection class="inline"><num value="a">(a) </num><content>The Inter-American Development Bank Act (22 U.S.C. 283 et seq.) is amended by adding at the end thereof the following new section: <quotedContent> <section class="firstIndent1 fontsize10"><num value="30">“<inline class="smallCaps">Sec</inline>. 30. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s283z–2">22 USC 283z–2</ref>.</p></sidenote> <content class="inline">The United States Governor of the Bank is authorized on behalf of the United States to contribute to the Fund for Special Operations $70,000,000: <proviso><i>Provided, however</i>, That any commitment to make such contribution shall be made subject to obtaining the necessary appropriations.</proviso></content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote> <content class="inline">In order to pay for a portion of the increase in the United States subscription to the capital stock of the Bank provided for in section 29(a) and for the United States contribution to the Fund for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s283z–1">22 USC 283z–1</ref>.</p></sidenote>Special Operations provided for in this section, there are authorized to be appropriated, without fiscal year limitation, for payment by the Secretary of the Treasury, (1) $274,920,799 for the United States subscription, and (2) $70,000,000 for the United States contribution to the Fund for Special Operations: <proviso><i>Provided, however</i>, That no funds may be made available for such contribution to the Fund for Special Operations for the fiscal year 1982.”.</proviso> (b) Section 29(b) of the Inter-American Development Bank Act (22 U.S.C. 283z–1(b)) is amended by striking out the period and inserting in lieu thereof the following: “<quotedText>: <proviso><i>Provided, however</i>, That for contributions to the Fund for Special Operations, not more than $175,000,000 may be made available for the fiscal year 1982, and not more than $105,000,000 may be made available for the fiscal year 1983.</proviso></quotedText>”.</content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 26(b) of the Inter-American Development Bank Act (22 U.S.C 283w(b)) is amended by striking out the period and inserting in lieu thereof the following: “<quotedText>: <proviso><i>Provided, however</i>, That not more than $15,677,000 may be made available to the Fund for Special Operations for the fiscal year 1982.</proviso></quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">contributions to the asian development fund</heading><num value="1352"><inline class="smallCaps">Sec</inline>. 1352. </num><subsection class="inline"><num value="a">(a) </num><content>The Asian Development Bank Act (22 U.S.C. 285 et seq.) is amended by adding at the end thereof the following new section: <quotedContent> <section class="firstIndent1 fontsize10"><num value="26">“<inline class="smallCaps">Sec</inline>. 26. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s285w">22 USC 285w</ref>.</p></sidenote> <content class="inline">The United States Governor of the Bank is authorized to contribute on behalf of the United States $66,750,000 to the Asian Development Fund, a special fund of the Bank: <proviso><i>Provided, however</i>, That any commitment to make such contribution shall be made subject to obtaining the necessary appropriations.</proviso></content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote> <content class="inline">In order to pay for the United States contribution to the Asian Development Fund provided for in this section, there is authorized to be appropriated, without fiscal year limitation, $66,750,000 for payment by the Secretary of the Treasury: <proviso><i>Provided, however</i>, That no funds may be made available for such contribution for the fiscal year 1982.”.</proviso></content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 24(b) of the Asian Development Bank Act (22 U.S.C. 285u(b)) is amended by striking out the period and inserting in lieu thereof the following: “<quotedText>: <proviso><i>Provided, however</i>, That not more than $111,250,000 of such sum may be made available for the fiscal year 1982, and not more than $44,500,000 of such sum may be made available for the fiscal year 1983.</proviso></quotedText>”.</content> </subsection> <page identifier="/us/stat/95/745">95 STAT. 745</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 23(b) of the Asian Development Bank Act (22 U.S.C. 285t(b)) is amended by striking out the period and inserting in lieu thereof the following: “<quotedText>: <proviso><i>Provided, however</i>, That not more than $14,116,177 may be made available for such contribution for the fiscal year 1982.</proviso></quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">future subscriptions of stock to the asian development bank</heading><num value="1353"><inline class="smallCaps">Sec</inline>. 1353. </num><content>Section 22(a) of the Asian Development Bank Act (22 U.S.C. 285s(a)) is amended by striking out “<quotedText>That any subscription to additional shares shall be made only after the amount required for such subscription has been appropriated</quotedText>” and inserting in lieu thereof “<quotedText>That any subscription to additional shares shall be effective only to such extent or in such amounts as are provided in advance in appropriations Acts</quotedText>”.</content> </section> </part> <part><num value="5">PART 5—</num><heading>TARGETING ASSISTANCE TO THE NEEDY; CONGRESSIONAL CONSULTATIONS</heading> <section> <heading class="centered smallCaps">amendments to public law 95–118</heading><num value="1361"><inline class="smallCaps">Sec</inline>. 1361. </num><subsection class="inline"><num value="a">(a) </num><content>Public Law 95–118 (22 U.S.C. 262c et seq.) is amended by inserting immediately after the enacting clause the following: <quotedContent> <section> <heading class="centered smallCaps">“short title</heading><num value="1">“<inline class="smallCaps">Section</inline> 1. </num><content>This Act may be cited as the ‘<shortTitle role="act">International Financial <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s262c">22 USC 262c note</ref>.</p></sidenote>Institutions Act</shortTitle>’”.</content> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Public Law 95–118 is further amended by adding at the end thereof the following new titles: <quotedContent> <title><num value="XI">“TITLE XI—</num><heading>TARGETING ASSISTANCE TO THE NEEDY</heading> <section class="firstIndent1 fontsize10"><num value="1101">“<inline class="smallCaps">Sec</inline>. 1101. </num><subsection class="inline"><num value="a">(a) </num><content>The Congress finds that there is a need for concerted <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s262g–1">22 USC 262g–1</ref>.</p></sidenote>international efforts to deal with the problems of malnutrition, low life expectancy, childhood disease, underemployment, and low productivity in developing countries.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>The Congress notes with approval that the Inter-American Development Bank, under the terms of its Fifth Replenishment, has adopted the target that 50 percent of its lending benefit the poorest groups and has developed a usable methodology for determining the proportion of its lending which benefits such groups.</content> </subsection> </section> <section class="firstIndent1 fontsize10"><num value="1102">“<inline class="smallCaps">Sec</inline>. 1102. </num><subsection class="inline"><num value="a">(a) </num><content>The Secretary of the Treasury shall consult with <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s262g–2">22 USC 262g–2</ref>.</p></sidenote>representatives of other member countries of the International Bank for Reconstruction and Development, the International Development Association, the Asian Development Bank, the African Development Fund, and the African Development Bank (if the United States becomes a member of that Bank), for the purpose of establishing guidelines within each of those institutions which specify that, in a manner consistent with the purposes and charters of those institutions, a specified proportion of the annual lending by each institution shall be designed to benefit needy people, primarily by financing sound, efficient, productive, self-sustaining projects designed to benefit needy people in developing countries, thus helping poor people improve their conditions of life.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>The Congress finds that projects to construct basic infrastructure, to expand productive capacity (including private enterprise), and to address social problems can all meet the objectives of this <page identifier="/us/stat/95/746">95 STAT. 746</page><sidenote><p class="indent0 firstIndent0 fontsize8">“Needy people.”</p></sidenote>section if they are designed and implemented properly. For the purposes of this title, ‘needy people’ means those people living in absolute’ or ‘relative’ poverty as determined under the standards employed by the International Bank for Reconstruction and Development and the International Development Association.</content> </subsection> </section> <section class="firstIndent1 fontsize10"><num value="1103">“<inline class="smallCaps">Sec</inline>. 1103. </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s262g–2">22 USC 262g–2 note</ref>.</p></sidenote> <content class="inline">The Secretary of the Treasury shall, not later than May 1 of 1982, 1983, and 1984, report to the Speaker of the House of Representatives and the Chairman of the Committee on Foreign Relations of the Senate on the progress being made toward achieving the goals of section 1102, and shall include in each such report, for each of the institutions referred to in sections 1101 and 1102, as accurate an estimate as is practicable of the proportion of the lending by that institution which benefits needy people in its borrower countries.</content> </section> <num value="XII">“TITLE XII—</num><heading>CONGRESSIONAL CONSULTATIONS</heading> <section class="firstIndent1 fontsize10"><num value="1201">“<inline class="smallCaps">Sec</inline>. 1201. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t22/s262g–3">22 USC 262g–3</ref>.</p></sidenote> <chapeau class="inline">The Secretary of the Treasury or his designee shall consult with the Chairman and the Ranking Minority Member of—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the Committee on Banking, Finance and Urban Affairs of the House of Representatives, the Committee on Appropriations of the House of Representatives, and the appropriate subcommittee of each such committee, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the Committee on Foreign Relations of the Senate, the Committee on Appropriations of the Senate, and the appropriate subcommittee of each such committee,</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">for the purpose of discussing the position of the executive branch and the views of the Congress with respect to any international negotiations being held to consider future replenishments or capital expansions of any multilateral development bank which may involve an increased contribution or subscription by the United States. Such consultation shall be made (A) not later than 30 days before the initiation of such international negotiations, (B) during the period in which such negotiations are being held, in a frequent and timely manner, and (C) before a session of such negotiations is held at which the United States representatives may agree to such a replenishment or capital expansion.”.</continuation> </section> PART 6—MISCELLANEOUS PROVISIONS
elimination of certain reportsSec. 1371. (a) (1)

Repeal.

 Section 31 of the Bretton Woods Agreements Act (22 U.S.C. 286e–10) is repealed. (2) Section 35 of that Act (22 U.S.C. 286u) is amended by striking out “, and shall report” and all that follows through “goal”. (b) (1) Section 801 of Public Law 95–118 (22 U.S.C. 262f) is amended— (A) by striking out “(a)”; and (B) by repealing subsection (b). (2) Section 901 of that Act (22 U.S.C. 262g) is amended— (A) by striking out “(a)”; and (B) by repealing subsection (b).
effective date and availability of fundsSec. 1372.

22 USC 290i note.

 This subtitle shall take effect upon its enactment, except that funds authorized to be appropriated by any provision contained 95 STAT. 747in part 1 or part 4 shall not be available for use or obligation prior to October 1, 1981.
Subtitle C—Foreign Assistance and Foreign Affairs Agencies
authorization ceilingsSec. 1381. The following ceilings are hereby established: (1) American schools and hospitals abroad: The amount

22 USC 2174 note.

22 USC 2174.

authorized to be appropriated for the fiscal year 1982 to carry out section 214 of the Foreign Assistance Act of 1961 shall not exceed $20,000,000. (2) International organizations and programs: The amount

22 USC 2222 note.

22 USC 2222.

authorized to be appropriated for the fiscal year 1982 under section 302(a)(1) of the Foreign Assistance Act of 1961 shall not exceed $255,650,000. (3) International narcotics control: The amount authorized

22 USC 2291a note.

22 USC 2291.

to be appropriated for the fiscal year 1982 to carry out section 481 of the Foreign Assistance Act of 1961 shall not exceed $37,700,000. (4) International disaster assistance: The amount authorized

22 USC 2292a note.

22 USC 2292a.

22 USC 2292.

to be appropriated for the fiscal year 1982 under section 492 of the Foreign Assistance Act of 1961 to carry out section 491 of that Act shall not exceed $27,000,000. (5) Inter-american foundation: The amount authorized to be

22 USC 290f note.

22 USC 290f.

appropriated for the fiscal year 1982 to carry out section 401 of the Foreign Assistance Act of 1969 shall not exceed $12,000,000. (6) Peace corps: The amount authorized to be appropriated for

22 USC 2502 note.

22 USC 2502.

the fiscal year 1982 under section 3(b) of the Peace Corps Act to carry out that Act shall not exceed $105,000,000. (7) International organizations and conferences—assessed contributions: The amount authorized to be appropriated for the fiscal year 1982 for assessed contributions to international organizations under “International Organizations and Conferences” shall not exceed $454,591,000. (8) Board for international broadcasting: The amount

22 USC 2877 note.

authorized to be appropriated for the fiscal year 1982 under section 8(a)(1)(A) of the Board for International Broadcasting Act of 1973 to carry out that Act shall not exceed $98,317,000.

22 USC 2877.

 (9) International communication agency—salaries and

22 USC 1477b note.

expenses: The amount authorized to be appropriated for the fiscal year 1982 for salaries and expenses for the International Communication Agency, excluding amounts authorized by section 704 of the United States Information and Educational Exchange Act of 1948 (relating to nondiscretionary personnel

22 USC 1477b.

costs and currency fluctuations), shall not exceed $452,187,000. (10) Arms control and disarmament agency: The amount

22 USC 2589 note.

22 USC 2589.

authorized to be appropriated for the fiscal year 1982 under section 49(a)(1) of the Arms Control and Disarmament Act to carry out the purposes of that Act (other than the amounts necessary for increases in salary, pay, retirement, other employee benefits authorized by law, and other nondiscretionary costs, and to offset adverse fluctuations in foreign currency exchange rates) shall not exceed $18,268,000.
95 STAT. 748 <num value="XIV">TITLE XIV—</num><heading>DEPARTMENT OF INTERIOR AND RELATED PROGRAMS</heading> <section class="firstIndent1 fontsize10"><num value="1401"><inline class="smallCaps">Sec</inline>. 1401. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation limitations.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t43/s1457a">43 USC 1457a</ref>.</p></sidenote> <content class="inline">Notwithstanding any other provision of law, there shall not be appropriated to the Secretary of the Interior for Department of the Interior programs as defined in subsection (e) in excess of $4,095,404,000 for the fiscal year ending on September 30, 1981; in excess of $3,970,267,000 for the fiscal year ending on September 30, 1982; $4,680,223,000 for the fiscal year ending on September 30, 1983; and $4,797,281,000 for the fiscal year ending on September 30, 1984.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>It is the sense of the Congress that the appropriation targets for such fiscal years should be: not less than $275,000,000 to be appropriated annually pursuant to the provisions of the Land and Water Conservation Fund Act of 1965 (78 Stat. 897; 16 U.S.C. 460z); not less than $30,000,000 to be appropriated annually pursuant to the provisions of the National Historic Preservation Act of 1966 (80 Stat. 915; 16 U.S.C. 470); not less than $10,000,000 to be appropriated annually pursuant to the provisions of the Urban Park and Recreation Recovery Act of 1978 (92 Stat. 3538; 16 U.S.C. 2501, et seq.); not less than $105,000,000 to be appropriated annually to be used for the restoration and rehabilitation of units of the National Park System, as authorized by law; not less than $239,000,000 to be appropriated annually for the Office of Territorial and International Affairs (including amounts for the Trust Territory of the Pacific Islands); not less than $6,200,000 to be appropriated annually to carry out the provisions of title III of the Surface Mining Control and Reclamation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t30/s1221">30 USC 1221</ref>.</p></sidenote>Act of 1977 (91 Stat. 445); and not less than $100,000,000 to be appropriated annually pursuant to the Act of October 20, 1976 (90 Stat. 2662; 31 U.S.C. 1601, et seq.) including not less than $5,000,000 annually to carry out the purposes of section 3 of said Act.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>Notwithstanding the limitation otherwise imposed by subsection (a) of this section—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the authorization for obligation and appropriations for the Department of the Interior may exceed the amount specified in subsection (a) by such amount as permanent and annual indefinite appropriations exceed the estimates for such appropriations as contained in “The Budget of the United States Government, Fiscal Year 1982,” as revised by the March 1981, publication of the Office of Management and Budget entitled “Fiscal Year 1982 Budget Revisions”, when receipts available to be appropriated equal or exceed such appropriations, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>the authorization for obligation and appropriations for the Department of the Interior may exceed the amount specified in subsection (a) by such amounts as may be required for emergency firefighting and for increased pay costs authorized by law.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Noncompetitive oil and gas leases, application filing fees.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t43/s1734">43 USC 1734 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s483a">31 USC 483a</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t43/s1734">43 USC 1734</ref>.</p></sidenote> <content class="inline">Notwithstanding any other provision of law, effective October 1, 1981, all applications for noncompetitive oil and gas leases shall be accompanied by a filing fee of not less than $25 for each such application: <proviso><i>Provided</i>, That any increase in the filing fee above $25 shall be established by regulation and subject to the provisions of the Act of August 31, 1951 (65 Stat. 290), the Act of October 20, 1976 (90 Stat. 2765) but not limited to actual costs. Such fees shall be retained as a service charge even though the application or offer may be rejected or withdrawn in whole or in part.</proviso></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Study.</p><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote> <content class="inline">The Secretary of the Interior is hereby directed to conduct a study and report to Congress within one year of the date of enactment of this Act, regarding the current annual rental charges on all <page identifier="/us/stat/95/749">95 STAT. 749</page>noncompetitive oil and gas leases to investigate the feasibility and effect of raising such rentals.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><chapeau>For the purposes of this section, the term “Department of the <sidenote><p class="indent0 firstIndent0 fontsize8">“Department of the Interior programs.”</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t43/s1457a">43 USC 1457a</ref>.</p></sidenote>Interior programs” means—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Alaska Native Fund amounts included in Bureau of Indian Affairs programs funded from Miscellaneous Trust Funds and Miscellaneous Permanent Appropriations accounts;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Bureau of Land Management programs;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Bureau of Mines programs;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>National Park Service programs other than the John F. Kennedy Center for the Performing Arts (including those programs formerly administered by the Heritage Conservation and Recreation Service as of October 1, 1980);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>Offices of the Solicitor and the Secretary;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>Office of Surface Mining Reclamation and Enforcement programs;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>Office of Territorial Affairs programs;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>United States Geological Survey programs; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">(9) </num><content>Bureau of Reclamation (including those programs formerly administered by the Water and Power Resources Service).</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">advisory council on historic preservation</heading><num value="1402"><inline class="smallCaps">Sec</inline>. 1402. </num><content>Notwithstanding any other provision of law, there shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s470t">16 USC 470t note</ref>.</p></sidenote>not be appropriated for programs of the Advisory Council on Historic Preservation in excess of $1,590,000 for the fiscal year ending September 30, 1981; in excess of $1,865,000 for the fiscal year ending on September 30, 1982; in excess of $1,920,000 for the fiscal year ending on September 30, 1983; and in excess of $2,000,000 for the fiscal year ending on September 30, 1984.</content> </section> <section> <heading class="centered smallCaps">office of federal inspector for the alaska natural gas transportation system</heading><num value="1403"><inline class="smallCaps">Sec</inline>. 1403. </num><content>Notwithstanding any other provision of law, there shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s719e">15 USC 719e note</ref>.</p></sidenote>not be appropriated for programs of the Office of Federal Inspector for the AlasKa Natural Gas Transportation System in excess of $21,038,000 for the fiscal year ending September 30, 1981; $36,568,000 for the fiscal year ending September 30, 1982; in excess of $45,532,000 for the fiscal year ending on September 30, 1983, or $46,908,000 for the fiscal year ending on September 30, 1984.</content> </section> <section> <heading class="centered smallCaps">pennsylvania avenue development corporation</heading><num value="1404"><inline class="smallCaps">Sec</inline>. 1404. </num><content>Notwithstanding any other provision of law, there shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s885">40 USC 885 note</ref>.</p></sidenote>not be appropriated for programs of the Pennsylvania Avenue Development Corporation in excess of $31,612,000 for the fiscal year ending September 30, 1981; in excess of $19,040,000 for the fiscal year ending on September 30, 1982; in excess of $19,500,000 for the fiscal year ending on September 30, 1983; or in excess of $19,300,000 for the fiscal year ending September 30, 1984.</content> </section> <section> <heading class="centered smallCaps">united states holocaust memorial council</heading><num value="1405"><inline class="smallCaps">Sec</inline>. 1405. </num><content>Notwithstanding any other provision of law, there shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t36/s1408">36 USC 1408 note</ref>.</p></sidenote>not be appropriated for programs of the United States Holocaust Memorial Council in excess of $900,000 for the fiscal year ending on September 30, 1982, in excess of $950,000 for the fiscal year ending on <page identifier="/us/stat/95/750">95 STAT. 750</page>September 30, 1983, or in excess of $1,000,000 for the fiscal year ending on September 30, 1984.</content> </section> <section> <heading class="centered smallCaps">corps of engineers</heading><num value="1406"><inline class="smallCaps">Sec</inline>. 1406. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s460l–6a">16 USC 460<i>l</i>–6a note</ref>.</p></sidenote> <content class="inline">Notwithstanding any other provision of law, there shall not be appropriated to the Secretary of Defense for special recreational user fees programs of the corps of Engineers in excess of $5,000,000 for the fiscal year ending September 30, 1981; in excess of $5,200,000 for the fiscal year ending September 30, 1982; in excess of $6,000,000 for the fiscal year ending September 30, 1983; or in excess of $6,000,000 for the fiscal year ending September 30, 1984.</content> </section> <section> <heading class="centered smallCaps">youth conservation corps act of 1970</heading><num value="1407"><inline class="smallCaps">Sec</inline>. 1407. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s1706">16 USC 1706 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s1701">16 USC 1701</ref>.</p></sidenote> <content class="inline">No funds may be appropriated to carry out the Act of August 13, 1970, commonly referred to as the Youth Conservation Corps Act of 1970, for fiscal year 1982, 1983, or 1984.</content> </section> <num value="XV">TITLE XV—</num><heading>DEPARTMENT OF JUSTICE AND RELATED PROVISIONS</heading> <section> <heading class="centered smallCaps">authorization of appropriations for salaries and expenses of patent and trademark office for fiscal year 1982</heading><num value="1501"><inline class="smallCaps">Sec</inline>. 1501. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t35/s3">35 USC 3 note</ref>.</p></sidenote> <content class="inline">Notwithstanding any other provision of law, there are authorized to be appropriated for the payment of salaries and expenses of the Patent and Trademark Office $118,961,000 for the fiscal year ending September 30, 1982, and such additional or supplemental amounts as may be necessary for increases in salary, pay, retirement, or other employee benefits authorized by law.</content> </section> <section> <heading class="centered smallCaps">limitation on appropriations for refugee assistance for fiscal year 1982</heading><num value="1502"><inline class="smallCaps">Sec</inline>. 1502. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1524">8 USC 1524 note</ref>.</p></sidenote> <chapeau class="inline">The total amount of appropriations to carry out—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1521">8 USC 1521</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522</ref>.</p></sidenote> <content class="inline">chapter 2 of title IV of the Immigration and Nationality Act (relating to refugee assistance), other than section 412(b) thereof (relating to initial resettlement assistance), and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote> <content class="inline">sections 313(c) and 401 of the Refugee Act of 1980 (Public Law 96–212),</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">shall not exceed $583,705,000 for fiscal year 1982, and none of the amounts appropriated for fiscal year 1982 to carry out such provisions shall be available to carry out any of the provisions of Public <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p></sidenote>Law 96–422.</continuation> </section> <section> <heading class="centered smallCaps">juvenile justice and delinquency prevention act of 1974</heading><num value="1503"><inline class="smallCaps">Sec</inline>. 1503. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5671">42 USC 5671 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s5611">42 USC 5611</ref>.</p></sidenote> <content class="inline">The total amount of appropriations to carry out title II of the Juvenile Justice and Delinquency Prevention Act of 1974 shall not exceed $77,000,000 for fiscal year 1982; $77,500,000 for fiscal year 1983; and $74,900,000 for fiscal year 1984.</content> </section> 95 STAT. 751 <num value="XVI">TITLE XVI—</num><heading>MARITIME AND RELATED PROGRAMS</heading> <section><num value="1601"><inline class="smallCaps">Sec</inline>. 1601. </num><chapeau>Funds are authorized to be appropriated without fiscal <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote>year limitation as the appropriation Act may provide for the use of the Department of Commerce of fiscal year 1982, as follows:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>for payment of obligations incurred for operating differential subsidy, $417,148,000;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>for research and development, $10,491,000;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>for operations and training, $74,898,000 including—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>$8,005,000 for reserve fleet expenses;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>$33,684,000 for maritime education and training expenses, including $19,205,000 for maritime training at the Merchant Marine Academy at Kings Point, New York, $12,599,000 for financial assistance to State maritime academies and $1,880,000 for expenses necessary for additional training; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>$33,209,000 for other operating and training expenses.</content></subparagraph> </paragraph> </section> <section><num value="1602"><inline class="smallCaps">Sec</inline>. 1602. </num><content>There are authorized to be appropriated for the fiscal <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote>year 1982, in addition to the amounts authorized by section 1601, such supplemental amounts for the activities for which appropriations are authorized under section 1601, as may be necessary for increases in salary, pay, retirement, or other employee benefits authorized by law.</content> </section> <section><num value="1603"><inline class="smallCaps">Sec</inline>. 1603. </num><content>The Merchant Marine Act, 1936, as amended (46 U.S.C. 1101–1294), is further amended by adding a new section 614 to read as follows: <quotedContent> <section class="firstIndent1 fontsize10"><num value="614">“<inline class="smallCaps">Sec</inline>. 614. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Any operator receiving operating differential subsidy <sidenote><p class="indent0 firstIndent0 fontsize8">Operating differential subsidy contract.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t46/s1184">46 USC 1184</ref>.</p></sidenote>funds may elect, for all or a portion of its ships, to suspend its operating differential subsidy contract with all attendant statutory and contractual restrictions, except as to those pertaining to the domestic intercoastal or coastwise service, including any agreement providing for the replacement of vessels, if—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the vessel is less than ten years of age;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the suspension period is not less than twelve months;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>the operator’s financial condition is maintained at a level acceptable to the Secretary of Commerce; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>the owner agrees to pay to the Secretary, upon such terms and conditions as he may prescribe, an amount which bears the same proportion to the construction differential subsidy paid by the Secretary as the portion of the suspension period during which the vessel is operated in any preference trade from which a subsidized vessel would otherwise be excluded by law or contract bears to the entire economic life of the vessel.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>Any operator making an election under this section is entitled to full reinstatement of the suspended contract on request. The Secretary of Commerce may prescribe rules and regulations consistent with the purpose of this section.”.</content> </subsection> </section> </quotedContent> </content> </section> <section><num value="1604"><inline class="smallCaps">Sec</inline>. 1604. </num><content>Section 809(a) of the Merchant Marine Act, 1936 (46 U.S.C. 1213(a)) is amended by inserting after the second sentence the following: “For the purposes of this section and section 211(a), the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t46/s1121">46 USC 1121</ref>.</p></sidenote>Secretary shall establish trade routes, services, or lines that take into account the seasonal closure of the Saint Lawrence Seaway and provide for alternate routing of ships via a different range of ports during that closure so as to maintain continuity of service on a year-round basis. For the purposes of section 605(c), such an alternate <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t46/s1175">46 USC 1175</ref>.</p></sidenote>routing via a different range of ports shall be deemed to be service from Great Lakes ports, provided such alternative routing is based <page identifier="/us/stat/95/752">95 STAT. 752</page>upon receipt or delivery of cargo at Great Lakes-Saint Lawrence Seaway ports under through intermodal bills of lading.</content> </section> <section><num value="1605"><inline class="smallCaps">Sec</inline>. 1605. </num><content>The Merchant Marine Act, 1936 is amended by adding a new section 909 to read as follows: <quotedContent> <section class="firstIndent1 fontsize10"><num value="909">“<inline class="smallCaps">Sec</inline>. 909. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t46/s1248">46 USC 1248</ref>.</p></sidenote> <content class="inline">No vessel may receive construction differential subsidy or operating differential subsidy if it is not offered for enrollment in a sealift readiness program approved by the Secretary of Defense.”.</content> </section> </quotedContent> </content> </section> <section><num value="1606"><inline class="smallCaps">Sec</inline>. 1606. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t46/s1273">46 USC 1273 and note</ref>.</p></sidenote> <content class="inline">Section 203(b) of Public Law 96–320 (94 Stat. 994) is repealed.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Limitation.</p></sidenote> <content class="inline">Section 1103(f) of the Merchant Marine Act, 1936, as amended (46 U.S.C. 1273), is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><content>The aggregate unpaid principal amount of the obligations guaranteed under this section and outstanding at any one time shall not exceed $12,000,000,000, of which $1,650,000,000 shall be limited to obligations pertaining to commerical demonstration ocean thermal energy conversion facilities or plantships guaranteed under section 1110 of this title, and of which $850,000,000 shall be limited to obligations pertaining to guarantees of obligations for fishing vessels and fishery facilities made under this title.”</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>Section 1104(d) of the Merchant Marine Act, 1936, as amended (46 U.S.C. 1274(d)), as amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>in paragraph (1), by striking “<quotedText>Except as provided in paragraph (2), no</quotedText>” an inserting in lieu thereof “<quotedText>No</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking paragraph (2); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by redesignating paragraph (3) as paragraph (2).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><chapeau>Section 1104(g) of the Merchant Marine Act, 1936, as amended (46 U.S.C. 1274(g)) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking “<quotedText>(1)</quotedText>” immediately after “<quotedText>(g)</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking paragraph (2).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>The first sentence of section 1105(d) of the Merchant Marine Act, as amended (46 U.S.C. 1275(d)), is amended by striking “<quotedText>, and shall be paid from the appropriate subfund required to be established under section 1104(g)(2)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>The last sentence of section 1110(c) of the Merchant Marine Act, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t46/s1279c">46 USC 1279c</ref>.</p></sidenote>1936, as amended (46 U.S.C. 1279(c)), is amended by striking “<quotedText>$2,000,000,000</quotedText>” and inserting in lieu thereof “<quotedText>$1,650,000,000</quotedText>”.</content> </subsection> </section> <section><num value="1607"><inline class="smallCaps">Sec</inline>. 1607. </num><content>Section 1303(h)(2)(D) of the Merchant Marine Act, 1936 (46 U.S.C. 1295b(h)(2)(D)), is amended by striking “<quotedText>1 Member</quotedText>” and inserting in lieu thereof “<quotedText>2 Members</quotedText>”.</content> </section> <section><num value="1608"><inline class="smallCaps">Sec</inline>. 1608. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">“Independent ocean freight forwarder.”</p></sidenote> <content class="inline">Section 1 of the Shipping Act, 1916 (39 Stat. 728), as amended (46 U.S.C. 801), is amended by striking at the end thereof the paragraph defining an independent ocean freight forwarder and inserting in lieu thereof the following: “<quotedText>The term ‘independent ocean freight forwarder’ means a person that is carrying on the business of forwarding for a consideration who is not a shipper, consignee, seller, or purchaser of shipments to foreign countries.</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 44 of the Shipping Act, 1916 (75 Stat. 552; 46 U.S.C. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t46/s841b">46 USC 841b</ref>.</p></sidenote>841(b)), is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><content>A forwarder may not receive compensation from a common carrier with respect to any shipment in which the forwarder has a beneficial interest or with respect to any shipment in which any holding company, subsidiary, affiliate, officer, director, agent, or executive of such forwarder has a beneficial interest.”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">“Independent ocean freight forwarder.”</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t46/s801">46 USC 801 and note</ref>.</p></sidenote> <content class="inline">This section shall remain in effect until December 31, 1983, after which time the definition in section 1, Shipping Act, 1916, of ‘independent ocean freight forwarder’ shall read: An ‘independent ocean freight forwarder’ is a person carrying on the business of forwarding <page identifier="/us/stat/95/753">95 STAT. 753</page>for a consideration who is not a shipper or consignee or a seller or purchaser of shipments to foreign countries, nor has any beneficial interest therein, nor directly or indirectly controls or is controlled by such shipper or consignee or by any person having such a beneficial interest.” By June 1, 1983, the Federal Maritime Commission shall <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote>submit a report to Congress evaluating the enforceability of this section and describing any reasons why this section should not be made permanent law.</content> </subsection> </section> <section><num value="1609"><inline class="smallCaps">Sec</inline>. 1609. </num><content>The Secretary of Commerce shall conduct a study <sidenote><p class="indent0 firstIndent0 fontsize8">Study, submittal to Congress.</p></sidenote>comparing the relative costs of repairing and outfitting the training vessel Bay State with the costs of reactivating and converting the steamship Tulare of the United States Naval Reserve Fleet, in order to aid in the determination of the appropriate vessel for use as the training ship of the Massachusetts Maritime Academy. This study shall be completed and submitted to the Congress within ninety days of enactment of this Act.</content> </section> <section><num value="1610"><inline class="smallCaps">Sec</inline>. 1610. </num><content>The Merchant Marine Act, 1936 (46 U.S.C. 1101 et seq.) is amended by adding a new section 615 to read as follows: <quotedContent> <section class="firstIndent1 fontsize10"><num value="615">“<inline class="smallCaps">Sec</inline>. 615. </num><subsection class="inline"><num value="a">(a) </num><content>The Secretary of Commerce may, until September 30, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t46/s1185">46 USC 1185</ref>.</p></sidenote>1983, authorize an operator receiving or applying for operating differential subsidy under this title to construct, reconstruct, or acquire its vessels of over five thousand deadweight tons in a foreign shipyard if the Secretary finds and certifies in writing that such operator’s application for construction differential subsidy cannot be approved due to the unavailability of funds in the construction differential subsidy account. Vessels constructed, reconstructed, or modified pursuant to this section shall be deemed to have been United States built for the purposes of this title, section 901(b) of this Act, and section 5(7) of the Port and Tanker Safety Act of 1978 (46 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t46/s1241">46 USC 1241</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t46/s391a">46 USC 391a</ref>.</p></sidenote>U.S.C. 391(a)(7)): <proviso><i>Provided</i>, That the provisions of section 607 of this Act shall not apply to vessels constructed, reconstructed, modified, or acquired pursuant to this section.</proviso></content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>The provisions of this section shall be effective for fiscal year 1983 only if the President in his annual budget message for that year requests at least $100,000,000 in construction differential subsidy or proposes an alternate program that would create equivalent merchant shipbuilding activity in privately owned United States shipyards and the Secretary reports to Congress on the effect such action will have on the shipyard mobilization base at least thirty days prior to making the certification referred to in subsection (a).”.</content> </subsection> </section> </quotedContent> </content> </section> <num value="XVII">TITLE XVII—</num><heading>CIVIL SERVICE AND POSTAL SERVICE PROGRAMS; GOVERNMENTAL AFFAIRS GENERALLY</heading> <subtitle><num value="A">Subtitle A—</num><heading>Civil Service Programs</heading> <section> <heading class="centered smallCaps">4.8 percent pay cap on federal employees</heading><num value="1701"><inline class="smallCaps">Sec</inline>. 1701. </num><subsection class="inline"><num value="a">(a) </num><content>Notwithstanding any other provision of law, the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s5305">5 USC 5305 note</ref>.</p></sidenote>overall percentage of the adjustment of the rates of pay under the General Schedule or any other statutory pay system under section 5305 of title 5, United States Code, which is to become effective with the first applicable pay period commencing on or after October 1, 1981, shall not exceed 4.8 percent.</content> </subsection> <page identifier="/us/stat/95/754">95 STAT. 754</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s5343">5 USC 5343 note</ref>.</p></sidenote> <chapeau class="inline">Notwithstanding any other provision of law, in the case of a prevailing rate employee described in section 5342(a)(2) of title 5, United States Code, or an employee covered by section 5348 of that title—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>any increase in the rate of pay payable to such employee which would result from the expiration of the limitation contained <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s5343">5 USC 5343 note</ref>.</p></sidenote>in section 114(a)(2) of Public Law 96–369 shall not take effect, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>any adjustment under subchapter IV of chapter 53 of such <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s5341">5 USC 5341</ref>.</p></sidenote>title to any wage schedule or rate applicable to such employee which results from a wage survey and which is to become effective during the fiscal year beginning October 1, 1981, shall not exceed the amount which is 4.8 percent above the schedule or rate payable on September 30, 1981 (determined with regard to the limitation contained in section 114(a)(2) of Public Law 96–369).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Notwithstanding the provisions of section 9(b) of Public Law <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s5343">5 USC 5343 note</ref>.</p></sidenote>92–392 or section 704(b) of the Civil Service Reform Act of 1978, the provisions of paragraph (1) shall apply (in such manner as the Office of Personnel Management shall prescribe) to prevailing rate employees to whom such section 9(b) applies, except that the provisions of paragraph (1) shall not apply to any increase in a wage schedule or rate which is required by the terms of a contract entered into before the date of the enactment of this Act.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">annualization of cost-of-living adjustment for federal employees</heading><num value="1702"><inline class="smallCaps">Sec</inline>. 1702. </num><subsection class="inline"><num value="a">(a) </num><content>Section 8340(b) of title 5, United States Code, is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>Except as provided in subsection (c) of this section, effective March 1 of each year each annuity payable from the Fund having a commencing date not later than such March 1 shall be increased by the percent change in the price index published for December of the preceding year over the price index published for December of the year prior to the preceding year, adjusted to the nearest 1/10 of 1 percent.”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 8340(c)(1) of title 5, United States Code, is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><chapeau>The first increase (if any) made under subsection (b) of this section to an annuity which is payable from the Fund to an employee or Member who retires, to the widow or widower of a deceased employee or Member, or to the widow or widower of a deceased annuitant whose annuity has not been increased under this subsection or subsection (b) of this section, shall be equal to the product (adjusted to the nearest 1/10 of 1 percent) of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>1/12 of the applicable percent change computer under subsection (b) of this section, multiplied by</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>the number of months (counting any portion of a month as a month)—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>for which the annuity was payable from the Fund before the effective date of the increase, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>in the case of a widow or widower of a deceased annuitant whose annuity has not been so increased, since the annuity was first payable to the deceased annuitant.”.</content> </clause> </subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s8340">5 USC 8340 note</ref>.</p></sidenote> <content class="inline">The amendments made by this section shall take effect on the date of the enactment of this Act and shall apply to annuities which commence before, on, or after such date.</content> </subsection> </section> <page identifier="/us/stat/95/755">95 STAT. 755</page> <section> <heading class="centered smallCaps">awards for the disclosure of waste, fraud, and mismanagement</heading><num value="1703"><inline class="smallCaps">Sec</inline>. 1703. </num><subsection class="inline"><num value="a">(a) </num><content>Chapter 45 of title 5, United States Code, is amended by adding at the end thereof the following new subchapter: <quotedContent> <subchapter><num value="II">“SUBCHAPTER II—</num><heading>AWARDS FOR COST SAVINGS DISCLOSURES</heading> <section><num value="4511">“§ 4511. </num> <heading>Definition and general provisions <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s4511">5 USC 4511</ref>.</p></sidenote></heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><content>For purposes of this subchapter, the term ‘agency’ means any <sidenote><p class="indent0 firstIndent0 fontsize8">“Agency.”</p></sidenote>Executive agency.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>A cash award under this subchapter is in addition to the regular pay of the recipient. Acceptance of a cash award under this subchapter constitutes an agreement that the use by the Government of an idea, method, or device for which the award is made does not form the basis of a further claim of any nature against the Government by the employee, his heirs, or assigns.</content> </subsection> </section> <section><num value="4512">“§ 4512. </num> <heading>Agency awards for cost savings disclosures <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s4512">5 USC 4512</ref>.</p></sidenote></heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><chapeau>The Inspector General of an agency, or any other agency employee designated under subsection (b), may pay a cash award any employee of such agency whose disclosure of fraud, waste, mismanagement to the Inspector General of the agency, or to such other designated agency employee, has resulted in cost savings for the agency. The amount of an award under this section may not exceed the lesser of—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>$10,000; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>an amount equal to 1 percent of the agency’s cost savings which the Inspector General, or other employee designated under subsection (b), determines to be the total savings attributable to the employee’s disclosure.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">For purposes of paragraph (2), the Inspector General or other designated employee may take into account agency cost savings projected for subsequent fiscal years which will be attributable such disclosure.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>In the case of an agency for which there is no Inspector General, the head of the agency shall designate an agency employee who shall have the authority to make the determinations and grant the awards permitted under this section.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><content>The Inspector General, or other employee designated under subsection (b), shall submit to the Comptroller General documentation substantiating any award made under this section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Comptroller General shall, from time to time, review awards made under this section and procedures used in making such awards to verify the cost savings for which the awards were made.</content></paragraph> </subsection> </section> <section><num value="4513">“§ 4513. </num> <heading>Presidential awards for cost savings disclosures <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s4513">5 USC 4513</ref>.</p></sidenote></heading> <content>“The President may pay a cash award in the amount of $20,000 any employee whose disclosure of fraud, waste, or mismanagement has resulted in substantial cost savings for the Government. evaluating the significance of a cost savings disclosure made by an employee for purposes of determining whether to make an award such employee under this section, the President may take into account cost savings projected for subsequent fiscal years which will be attributable to the disclosure. During any fiscal year, the President may not make more than 50 awards under this section.</content> </section> <page identifier="/us/stat/95/756">95 STAT. 756</page> <section><num value="4514">“§ 4514. </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s4514">5 USC 4514</ref>.</p></sidenote>Expiration of authority</heading> <content>“No award may be made under this title after September 30, 1984.”.</content> </section> </subchapter> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Chapter 45 of title 5, United States Code, is amended by inserting immediately before section 4501 the following new subchapter heading: <quotedContent> <subchapter><num value="I">“Subchapter I—</num><heading>Awards for Superior Accomplishments”.</heading> </subchapter> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Chapter 45 of title 5, United States Code, is amended in sections 4501, 4502, 4505, and 4506, by striking out “<quotedText>chapter</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>subchapter</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>The analysis for chapter 45 of title 5, United States Code, is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num> <content class="inline"> <p class="inline">by inserting immediately after the chapter heading the following new item:</p> <quotedContent> <toc> <referenceItem role="subchapter"><designator>“Subchapter I—</designator><label>Awards for Superior Accomplishments”;</label></referenceItem> </toc> </quotedContent> <p class="indent0 firstIndent0 fontsize10">and</p> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by inserting after the item relating to section 4507 the following: <quotedContent> <toc> <referenceItem role="subchapter"><designator>“Subchapter II—</designator><label>Awards for Cost Savings Disclosures</label></referenceItem> <referenceItem role="section"><designator>“4511.</designator> <label>Definition and general provisions.</label></referenceItem> <referenceItem role="section"><designator>“4512.</designator> <label>Agency awards for cost savings disclosures.</label></referenceItem> <referenceItem role="section"><designator>“4513.</designator> <label>Presidential awards for cost savings disclosures.</label></referenceItem> <referenceItem role="section"><designator>“4514.</designator> <label>Expiration of authority.”.</label></referenceItem> </toc> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s4501">5 USC 4501 note</ref>.</p></sidenote> <content class="inline">The amendments made by this section shall take effect on October 1, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">reductions in force of career senior executives</heading><num value="1704"><inline class="smallCaps">Sec</inline>. 1704. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Chapter 35 of title 5, United States Code, relating to retention preference, restoration, and reemployment, is amended by redesignating section 3595 as section 3596 and by inserting after section 3594 the following new section: <quotedContent> <section><num value="3595">“§ 3595. </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s3595">5 USC 3595</ref>.</p></sidenote>Reduction in force in the Senior Executive Service</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><content>An agency shall establish competitive procedures for determining who shall be removed from the Senior Executive Service in any reduction in force of career appointees within that agency. The competitive procedures shall be designed to assure that such determinations are primarily on the basis of performance, as determined <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s4311">5 USC 4311</ref>.</p></sidenote>under subchapter II of chapter 43 of this title.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>This subsection applies to any career appointee who has successfully completed the probationary period prescribed under section 3393(d) of this title.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Except as provided in paragraphs (4) and (5), a career appointee may not be removed from the Senior Executive Service due to a reduction in force within an agency.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>A career appointee who, but for this subsection, would be removed from the Senior Executive Service due to a reduction in force within an agency—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>is entitled to be assigned by the head of that agency to a vacant Senior Executive Service position for which the career appointee is qualified; or</content></subparagraph> <page identifier="/us/stat/95/757">95 STAT. 757</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>if the agency head certifies, in writing, to the Office of Personnel Management that no such position is available in the agency, is entitled to be placed by the Office in any agency in any vacant Senior Executive Service position unless the head of that agency determines that the career appointee is not qualified for that position.</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">The Office of Personnel Management shall take all reasonable steps to place a career appointee under subparagraph (B) and may require any agency to take any action which the Office considers necessary to carry out any such placement.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><chapeau>A career appointee who is not assigned under paragraph (3)(A) may be removed from the Senior Executive Service and the civil service due to a reduction in force if—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the career appointee declines a reasonable offer for placement in a Senior Executive Service position under paragraph (3)(B); or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>subject to paragraph (5), the career appointee is not placed in another Senior Executive Service position under paragraph (3)(B) within 120 days after the Office receives certification regarding that appointee under paragraph (3)(B).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><chapeau>An individual who was a career appointee on May 31, 1981, may be removed from the Senior Executive Service and the civil service due to a reduction in force after the 120-day period specified in paragraph (4)(B) only if the Director of the Office of Personnel Management certifies to the Committee on Post Office and Civil Service of the House of Representatives and the Committee on Governmental Affairs of the Senate, no later than 30 days prior to the effective date of such removal, that—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the Office has taken all reasonable steps to place the career appointee in accordance with paragraph (3) of this subsection, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>due to the highly specialized skills and experience of the career appointee, the Office has been unable to place the career appointee.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><chapeau>A career appointee is entitled to appeal to the Merit Systems Protection Board under section 7701 of this title—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>whether the reduction in force complies with the competitive procedures required under subsection (a),</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>any removal under subsection (b)(4)(A), and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>in the event the career appointee is not placed under subsection (b)(3) of this section whether the Office of Personnel Management took all reasonable steps to achieve such placement.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>For purposes of this section, ‘reduction in force’ includes the <sidenote><p class="indent0 firstIndent0 fontsize8">“Reduction in force.”</p></sidenote>elimination or modification of a position due to a reorganization, due to a lack of funds or curtailment of work, or due to any other factor.”.</content> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The table of sections for chapter 35 of title 5, United States Code, is amended by striking out the item relating to section 3595 and inserting in lieu thereof the following: <quotedContent> <toc> <referenceItem role="section"><designator>“3595.</designator> <label>Reduction in force in the Senior Executive Service.</label></referenceItem> <referenceItem role="section"><designator>“3596.</designator> <label>Regulations.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 3593 of title 5, United States Code, is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>A former career appointee shall be reinstated, without regard to section 3393(b) and (c) of this title, to any vacant Senior Executive Service position in an agency for which the appointee is qualified if—</chapeau> <page identifier="/us/stat/95/758">95 STAT. 758</page> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the individual was a career appointee on May 31, 1981;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the appointee was removed from the Senior Executive Service under section 3595 of this title due to a reduction in force in that agency;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>before the removal occurred, the appointee successfully completed the probationary period established under section 3393(d) of this title; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>the appointee applies for that vacant position within one year after the Office receives certification regarding that appointee pursuant to section 3595 (b)(3)(B) of this title.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>A career appointee is entitled to appeal to the Merit Systems Protection Board under section 7701 of this title any determination by the agency that the appointee is not qualified for a position for which the appointee applies under paragraph (1) of this subsection.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 3393 of title 5, United States Code, is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><content>A career appointee may not be removed from the Senior Executive Service or civil service except in accordance with the applicable provisions of sections 1207, 3592, 3595, 7532, or 7543 of this title.”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 7542 of title 5, United States Code, is amended by inserting “<quotedText>or 3595</quotedText>” after “<quotedText>3592</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 7543(a) of title 5, United States Code, is amended by striking out “<quotedText>such cause</quotedText>” and all that follows down through the period and inserting in lieu thereof “<quotedText>misconduct, neglect of duty, or malfeasance.</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s3595">5 USC 3595 note</ref>.</p></sidenote> <content class="inline">Subject to paragraph (2), the amendments made by this section shall be effective as of June 1, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>Except as provided in subparagraph (B), the amendments made by this section shall apply to any career appointee removed from the civil service after May 31, 1981, and before the date of the enactment of this section if, not later than 14 days after such date of enactment, application therefor is made to the Office of Personnel Management and to the head of the agency in which the appointee was employed.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>The provisions of section 3595(a), as added by subsection (a)(1), shall take effect on the date of the enactment of this Act.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The effectiveness of the amendments made by this section shall be subject to section 415(b) of the Civil Service Reform Act of 1978 (5 U.S.C. 3131 note) to the same extent and manner as the amendments <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s2101a">5 USC 2101a</ref>.</p></sidenote>made by title IV of that Act.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">voluntary state income tax withholding for annuitants</heading><num value="1705"><inline class="smallCaps">Sec</inline>. 1705. </num><subsection class="inline"><num value="a">(a) </num><content>Section 8345 of title 5, United States Code, is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="k">“(k) </num><paragraph class="inline"><num value="1">(1) </num><content>The Office shall, in accordance with this subsection, enter into an agreement with any State within 120 days of a request for agreement from the proper State official. The agreement shall provide that the Office shall withhold State income tax in the case of the monthly annuity of any annuitant who voluntarily requests, in writing, such withholding. The amounts withheld during any calendar quarter shall be held in the Fund and disbursed to the States during the month following that calendar quarter.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>An annuitant may have in effect at any time only one request for withholding under this subsection, and an annuitant may not have more than two such requests in effect during any one calendar year.</content></paragraph> <page identifier="/us/stat/95/759">95 STAT. 759</page> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Subject to paragraph (2) of this subsection, an annuitant may change the State designated by that annuitant for purposes of having withholdings made, and may request that the withholdings be remitted in accordance with such change. An annuitant also may revoke any request of that annuitant for withholding. Any change in the State designated or revocation is effective on the first day of the month after the month in which the request or the revocation is processed by the Office, but in no event later than on the first day of the second month beginning after the day on which such request or revocation is received by the Office.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>This subsection does not give the consent of the United States to the application of a statute which imposes more burdensome requirements on the United States than on employers generally, or which subjects the United States or any annuitant to a penalty or liability because of this subsection. The Office may not accept pay from a State for services performed in withholding State income taxes from annuities. Any amount erroneously withheld from an annuity and paid to a State by the Office shall be repaid by the State in accordance with regulations issued by the Office.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>For the purpose of this subsection, ‘State’ means a State, the <sidenote><p class="indent0 firstIndent0 fontsize8">“State.”</p></sidenote>District of Columbia, or any territory or possession of the United States.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The amendment made by subsection (a) shall take effect October <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s8345">5 USC 8345 note</ref>.</p></sidenote>1, 1981.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The Civil Service Retirement and Disability Fund is available <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s8345">5 USC 8345 note</ref>.</p></sidenote>for expenses incurred by the Office of Personnel Management in the initial implementation of the amendments made by this section.</content> </subsection> </section> </subtitle> <subtitle><num value="B">Subtitle B—</num><heading>Savings Under the Postal Service Program</heading> <section> <heading class="centered smallCaps">authorizations for public service appropriations</heading><num value="1721"><inline class="smallCaps">Sec</inline>. 1721. </num><chapeau>Section 2401(b)(1) of title 39, United States Code, is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>in subparagraph (D), by striking out “<quotedText>an amount equal to percent of such sum for fiscal year 1971</quotedText>” and inserting in lieu thereof “<quotedText>$250,000,000</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>in subparagraph (E), by striking out “<quotedText>an amount equal to percent of such sum for fiscal year 1971</quotedText>” and inserting in lieu thereof “<quotedText>$100,000,000</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>in subparagraph (F), by striking out “<quotedText>an amount equal to percent of such sum for fiscal year 1971</quotedText>” and inserting in lieu thereof “<quotedText>no funds are authorized to be appropriated</quotedText>”.</content></paragraph> </section> <section> <heading class="centered smallCaps">continuation of six-day mail delivery</heading><num value="1722"><inline class="smallCaps">Sec</inline>. 1722. </num><content>During fiscal years 1982 through 1984, the Postal Service <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t39/s403">39 USC 403 note</ref>.</p></sidenote>shall take no action to reduce or to plan to reduce the number of days each week for regular mail delivery.</content> </section> <section> <heading class="centered smallCaps">reduction of authorization for revenue foregone</heading><num value="1723"><inline class="smallCaps">Sec</inline>. 1723. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Notwithstanding section 2401(c) of title 39, United <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t39/s2401">39 USC 2401 note</ref>.</p></sidenote>States Code, the amount authorized to be appropriated under such section shall not exceed—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>$696,000,000 for fiscal year 1982;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>$708,000,000 for fiscal year 1983; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>$760,000,000 for fiscal year 1984.</content></paragraph> </subsection> <page identifier="/us/stat/95/760">95 STAT. 760</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>If during any of the fiscal years 1982 through 1984, the amount which would have been authorized to be appropriated under section 2401(c) of title 39, United States Code, if this section were not enacted exceeds the amount authorized to be appropriated by subsection (a) of this section for that fiscal year, the rates for the class of mail under former sections 4452(b) and 4452(c) of such title shall be adjusted (in the same manner as rates are adjusted under section 3627 of such title) so that the increased revenues received from the users of such class of mail will equal the amount of such difference. During such fiscal years, adjustments in rates under such section 3627 as a result of a failure of appropriations (as described by that section) may be made under section 3627 only to the extent permitted under paragraph (2) of this subsection.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>If during any of the fiscal years 1982 through 1984 the Congress fails to appropriate the maximum amount authorized by subsection (a) of this section for purposes of section 2401(c) of title 39, United States Code, then rates for any class of mail sent at a free or reduced rate under section 3217 or section 3626 of such title 39, under the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t50/s1451">50 USC 1451 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1973dd">42 USC 1973dd note</ref>.</p></sidenote>Federal Voting Assistance Act of 1955, or under the Overseas Citizens Voting Rights Act of 1975, may be adjusted during such fiscal year in accordance with section 3627 of title 39, United States Code, in order to provide for additional revenues equal to the difference between (A) the maximum amount authorized to be appropriated for such fiscal year by subsection (a) of this section, and (B) any lesser amount actually appropriated for such fiscal year for purposes of section 2401(c) of title 39, United States Code.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">reduction of transitional appropriations</heading><num value="1724"><inline class="smallCaps">Sec</inline>. 1724. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t39/s2004">39 USC 2004 note</ref>.</p></sidenote> <content class="inline">Notwithstanding the authorization contained in section 2004 of title 39, United States Code, no sums are authorized to be appropriated to the Fund for the purposes of such section during fiscal years 1982 through 1984. During fiscal year 1985, there are authorized to be appropriated to the Fund such amounts as may be necessary to carry out such section during such fiscal year, together with such amounts as would have been available to the Fund for fiscal years 1982 through 1984 were this section not enacted.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>From amounts available to the Postal Service from the Fund, during fiscal years 1982 through 1984 the Postal Service shall meet the transitional expenses referred to under section 2004 of title 39, United States Code, to the same extent as the Postal Service would have met such expenses were subsection (a) of this section not enacted.</content> </subsection> </section> <section> <heading class="centered smallCaps">quarterly payments of appropriations to the postal service fund</heading><num value="1725"><inline class="smallCaps">Sec</inline>. 1725. </num><chapeau>Section 2003(e) of title 39, United States Code, is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(1)</quotedText>” after “<quotedText>(e)</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding at the end thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Funds appropriated to the Postal Service under sections 2401 and 2004 of this title shall be apportioned as provided in this paragraph. From the total amounts appropriated to the Postal Service for any fiscal year under the authorizations contained in sections 2401 and 2004 of this title, the Secretary of the Treasury shall make available to the Postal Service 25 percent of such amount at the beginning of each quarter of such fiscal year.”.</content></paragraph> </quotedContent> </content></paragraph> </section> <page identifier="/us/stat/95/761">95 STAT. 761</page> <section> <heading class="centered smallCaps">prohibition of 9-digit zip code</heading><num value="1726"><inline class="smallCaps">Sec</inline>. 1726. </num><subsection class="inline"><num value="a">(a) </num><content>The Postal Service shall not implement any ZIP code <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t39/s403">39 USC 403 note</ref>.</p></sidenote>system using more than 5 digits before October 1, 1983. This subsection shall not be construed as precluding the Postal Service or the Postal Rate Commission from taking such actions as may be required before October 1, 1983, to prepare for the implementation of such ZIP code system.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>During the period beginning on the date of the enactment of this Act and ending December 31, 1982, no Executive agency shall take any action to conform its mailing procedures to those appropriate for use under any ZIP code system using more than 5 digits. As used in <sidenote><p class="indent0 firstIndent0 fontsize8">“Executive agency.”</p></sidenote>this subsection, the term “Executive agency” has the same meaning given such term by section 105 of title 5, United States Code.</content> </subsection> </section> <section> <heading class="centered smallCaps">effective date</heading><num value="1727"><inline class="smallCaps">Sec</inline>. 1727. </num><content>The provisions of this subtitle (other than section 1726 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t39/s2003">39 USC 2003 note</ref>.</p></sidenote>and this section) shall take effect on October 1, 1981. The provisions of sections 1726 and this section shall take effect on the date of the enactment of this Act.</content> </section> </subtitle> <subtitle><num value="C">Subtitle C—</num><heading>Governmental Affairs Generally</heading> <chapter><num value="1">CHAPTER 1—</num><heading>CONSULTANTS AND TRAVEL</heading> <section> <heading class="centered smallCaps">reduction in expenditures for consultants</heading><num value="1731"><inline class="smallCaps">Sec</inline>. 1731. </num><subsection class="inline"><num value="a">(a) </num><content>The President shall submit with the Budget of the United States Government transmitted by the President under section 201(a) of the Budget and Accounting Act, 1921, in January, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s11">31 USC 11</ref>.</p></sidenote>1982, a rescission bill (as that term is defined in section 1011(3) of the Impoundment Control Act of 1974) to reduce by the amount described <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s1401">31 USC 1401</ref>.</p></sidenote>in subsection (b) the total amount of funds appropriated for the fiscal year 1982 which may be obligated for consultant services, management and professional services, and special studies and analyses for all departments, agencies, and instrumentalities of the executive branch of the Government. Such bill shall be accompanied by a special message specifying the matters required by paragraphs (1) through (5) of section 1012(a) of the Impoundment Control Act of 1974 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s1402">31 USC 1402</ref>.</p></sidenote>with respect to the rescission proposal and shall specifically allocate the reduction in such total amount required by the preceding sentence among the departments, agencies, and instrumentalities of the executive branch.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>The amount of the reduction referred to in subsection (a) shall be $500,000,000 less the difference between—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the amounts which can be identified for the consultant services, management and professional services, and special studies and analyses referred to in subsection (a) in the Budget the United States Government for the fiscal year 1982 which was transmitted by the President on January 15, 1981, under section 201(a) of the Budget and Accounting Act, 1921, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>the amounts appropriated for the fiscal year 1982 for such purposes,</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">to the extent that the amounts described in paragraph (1) exceed the amounts described in paragraph (2). The special message required by subsection (a) shall identify the amounts in appropriations Acts and <page identifier="/us/stat/95/762">95 STAT. 762</page>the amounts in the Budget of the United States Government on the basis of which the reduction described in this subsection is calculated.</continuation> </subsection> </section> <section> <heading class="centered smallCaps">reduction in expenditures for travel by federal employees</heading><num value="1732"><inline class="smallCaps">Sec</inline>. 1732. </num><subsection class="inline"><num value="a">(a) </num><chapeau>The President shall submit with the Budget of the United States Government transmitted by the President under <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s11">31 USC 11</ref>.</p></sidenote>section 201(a) of the Budget and Accounting Act, 1921, in January, 1982, a rescission bill (as that term is defined in section 1011(3) of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s1401">31 USC 1401</ref>.</p></sidenote>Impoundment Control Act of 1974) to reduce by the amount described in subsection (b) the total amount of funds appropriated for the fiscal year 1982 which may be obligated for direct administrative travel for all departments, agencies, and instrumentalities of the executive branch of the Government. Such bill shall be accompanied by a special message specifying the matters required by paragraphs (1) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s1402">31 USC 1402</ref>.</p></sidenote>through (5) of section 1012(a) of the Impoundment Control Act of 1974 with respect to the rescission proposal and shall specifically allocate the reduction in such total amount required by the preceding sentence among the departments, agencies, and instrumentalities of the executive branch. In making such allocation, the President shall not—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>propose the reduction of any amounts to be obligated for debt collection, supervision of loans, necessary and essential law enforcement activities, or emergency national defense activities of the Federal Government; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>propose the reduction of the total amount which may be obligated by any department, agency, or instrumentality for direct administrative travel for officers and employees of such department, agency, or instrumentality by more than 15 percent of the amount proposed thereof in such budget.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>The amount of the reduction referred to in subsection (a) shall be $100,000,000 less the difference between—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the amounts which can be identified for the direct administrative travel referred to in subsection (a) in the Budget of the United States Government for the fiscal year 1982 which was transmitted by the President on January 15, 1981, under section 201(a) of the Budget and Accounting Act, 1921, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>the amounts appropriated for the fiscal year 1982 for such purposes,</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">to the extent that the amounts described in paragraph (1) exceed the amounts described in paragraph (2). The special message required by subsection (a) shall identify the amounts in the appropriations Acts and the amounts in the Budget of the United States Government on the basis of which the reduction described in this subsection is calculated.</continuation> </subsection> </section> </chapter> <chapter><num value="2">CHAPTER 2—</num><heading>BLOCK GRANT FUNDS</heading> <section> <heading class="centered smallCaps">distribution of block grant funds</heading><num value="1741"><inline class="smallCaps">Sec</inline>. 1741. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s1243">31 USC 1243 note</ref>.</p></sidenote> <content class="inline">To help assure that (1) block grant funds are allocated for programs of special importance to meet the needs of local governments, their residents, and other eligible entities, and (2) all eligible urban and rural local governments, their residents, and other eligible entities are treated fairly in the distribution of such funds, each State which receives block grant funds under this Act shall comply with the requirements of this chapter, to the extent that such funds may be used at the discretion of the State, as described in subsection (b)(1)(B).</content> </subsection> <page identifier="/us/stat/95/763">95 STAT. 763</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>For purposes of this chapter—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>block grant funds are funds which are received for a program—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>which provides for the direct allocation of funds to States only, except for the allocation of funds for use by the Federal agency administering the program; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>which provides funds that may be used at the discretion of the State, in whole or in part, for the purpose of continuing to support activities funded, immediately before the date of the enactment of this Act, under programs the authorizations of which are discontinued by this Act and which were funded, immediately before such date of the enactment, by Federal Government allocations to units of local government or other eligible entities, or both; and</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>“State” includes the District of Columbia and any territory <sidenote><p class="indent0 firstIndent0 fontsize8">“State.”</p></sidenote>or possession of the United States.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">reports on proposed use of funds; public hearings</heading><num value="1742"><inline class="smallCaps">Sec</inline>. 1742. </num><subsection class="inline"><num value="a">(a) </num><content>Each State shall prepare a report on the proposed use <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s1243">31 USC 1243 note</ref>.</p></sidenote>of block grant funds received by that State, including (1) a statement of goals and objectives, (2) information on the types of activities to be supported, geographic areas to be served, and categories or characteristics of individuals to be served, and (3) the criteria and method established for the distribution of the funds, including details on how the distribution of funds will be targeted on the basis of need to achieve the purposes of the block grant funds. Beginning in the fiscal year 1983, the report required by this subsection shall include a description of how the State has met the goals, objectives, and needs in the use of funds for the previous fiscal year as identified in the report prepared pursuant to this subsection for that previous fiscal year.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The report prepared by a State pursuant to subsection (a), and any changes in such report, shall be made public within the State on a timely basis and in such manner as to facilitate comments from interested local governments and persons.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>No State may receive block grant funds for any fiscal year until the State has conducted a public hearing, after adequate public notice, on the use and distribution of the funds proposed by the State as set forth in the report prepared pursuant to subsection (a) with respect to that fiscal year.</content> </subsection> </section> <section> <heading class="centered smallCaps">transition provision</heading><num value="1743"><inline class="smallCaps">Sec</inline>. 1743. </num><subsection class="inline"><num value="a">(a) </num><content>In the fiscal year 1982 only, each State shall certify to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s1243">31 USC 1243 note</ref>.</p></sidenote>the responsible Federal agency that it is in compliance with section 1742 and that it is prepared to use all or part of available block grant funds. Such certifications shall be submitted to the responsible Federal agency prior to the beginning of the first quarter of the fiscal year 1982 or at least 30 days before the beginning of any other quarter of that fiscal year. For purposes of this section, the quarters for the fiscal year 1982 shall commence on October 1, January 1, April 1, and July 1 of the fiscal year 1982.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Except as otherwise provided in this Act, until such time as the responsible Federal agency receives a certification from a State pursuant to subsection (a), such agency shall distribute the block grant funds involved for programs to which the funds relate and <page identifier="/us/stat/95/764">95 STAT. 764</page>which are discontinued by this Act as referred to in section 1741(b)(1)(B).</content> </subsection> </section> <section> <heading class="centered smallCaps">access to records by comptroller general</heading><num value="1744"><inline class="smallCaps">Sec</inline>. 1744. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s1243">31 USC 1243 note</ref>.</p></sidenote> <content class="inline">For the purpose of evaluating and reviewing the use of block grant funds, consolidated assistance, or other grant programs established or provided for by this Act, the Comptroller General shall have access to any books, accounts, records, correspondence, or other documents that are related to such funds, assistance, or programs, and that are in the possession, custody, or control of States, political subdivisions thereof, or any of the grantees of such States or political subdivisions.</content> </section> <section> <heading class="centered smallCaps">state auditing requirements</heading><num value="1745"><inline class="smallCaps">Sec</inline>. 1745. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t31/s1243">31 USC 1243 note</ref>.</p></sidenote> <content class="inline">Each State shall conduct financial and compliance audits of any block grant funds which the State receives under this Act and any funds which the State receives under any consolidated assistance program established or provided for by this Act.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Any audit required by subsection (a) shall be conducted with respect to the 2-year period beginning on October 1, 1981, and with respect to each 2-year period thereafter.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Any audit required by subsection (a) shall, insofar as is practicable, be conducted in accordance with standards established by the Comptroller General for the audit of governmental organizations, programs, activities, and functions.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>The audit of funds by a State required by subsection (a) shall be conducted in lieu of any other financial and compliance audit of the same funds which the State is required to conduct under any other provision of this Act, unless such other provision, by explicit reference to this section, otherwise provides.</content> </subsection> </section> </chapter> </subtitle> <num value="XVIII">TITLE XVIII—</num><heading>WATER RESOURCE DEVELOPMENT AND ECONOMIC DEVELOPMENT PROGRAMS</heading> <subtitle><num value="A">Subtitle A—</num><heading>Water Projects</heading> <part><num value="1">PART 1—</num><heading>WATER POLLUTION CONTROL</heading> <section class="firstIndent1 fontsize10"><num value="1801"><inline class="smallCaps">Sec</inline>. 1801. </num><subsection class="inline"><num value="a">(a) </num><content>Section 207 of the Federal Water Pollution Control <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t33/s1287">33 USC 1287</ref>.</p></sidenote>Act is amended by striking out “<quotedText>September 30, 1981, and September 30, 1982, not to exceed $5,000,000,000 per fiscal year.</quotedText>” and inserting in lieu thereof “<quotedText>not to exceed $5,000,000,000; for the fiscal year ending September 30, 1981, not to exceed $2,548,837,000; and for the fiscal year ending September 30, 1982, not to exceed $0, unless there is enacted legislation establishing an allotment formula for fiscal year 1982 construction grant funds and otherwise reforming the municipal sewage treatment construction grant program under this title, in which case the authorization for fiscal year 1982 shall be an amount not to exceed $2,400,000,000.</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t33/s1285">33 USC 1285 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t33/s1285">33 USC 1285</ref>.</p></sidenote> <content class="inline">There is authorized to be appropriated to the Administrator of the Environmental Protection Agency for the fiscal year ending September 30, 1982, not to exceed $40,000,000 to carry out section 205(g) of the Federal Water Pollution Control Act. The Administrator shall make such authorization available to the States in accordance with such section 205(g) in the same manner and to the same extent <page identifier="/us/stat/95/765">95 STAT. 765</page>as would be the case if $2,000,000,000 had been authorized under section 207 of such Act, using the same allotment table as was <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t33/s1287">33 USC 1287</ref>.</p></sidenote>applicable to the fiscal year ending September 30, 1981.</content> </subsection> </section> </part> <part><num value="2">PART 2—</num><heading>RIVER AND HARBOR, FLOOD CONTROL, AND RELATED PROJECTS</heading> <section class="firstIndent1 fontsize10"><num value="1805"><inline class="smallCaps">Sec</inline>. 1805. </num><content>Notwithstanding any other provision of law, the total <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t33/s540">33 USC 540 note</ref>.</p></sidenote>amount authorized to be appropriated to the Secretary of the Army, acting through the Chief of Engineers, for construction of river and harbor, flood control, shore protection, and related authorized projects (other than the project for the Mississippi River and tributaries) and detailed studies, and plans and specifications, of projects authorized or made eligible for selection by law, shall not exceed $1,546,755,000 for the fiscal year ending September 30, 1982; $1,688,948,000 for the fiscal year ending September 30, 1983; and $1,575,750,000 for the fiscal year ending September 30, 1984.</content> </section> <section class="firstIndent1 fontsize10"><num value="1806"><inline class="smallCaps">Sec</inline>. 1806. </num><content>Notwithstanding any other provision of law, there shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t16/s460l–6a">16 USC 460<i>l</i>–6a note</ref>.</p></sidenote>not be appropriated to the Secretary of Defense for special recreational user fees programs of the Corps of Engineers in excess of $5,000,000 for the fiscal year ending September 30, 1981; in excess of $5,200,000 for the fiscal year ending September 30, 1982; in excess of $6,000,000 for the fiscal year ending September 30, 1983; or in excess of $6,000,000 for the fiscal year ending September 30, 1984.</content> </section> <section class="firstIndent1 fontsize10"><num value="1807"><inline class="smallCaps">Sec</inline>. 1807. </num><subsection class="inline"><num value="a">(a) </num><content>Subject to enactment of legislation establishing a National Board on Water Resources Policy, there is hereby authorized to be appropriated to such Board for the purposes of coordination of water resources policy and water resources planning grants to the States the sum of $12,500,000 per fiscal year for each of the fiscal years ending September 30, 1982, September 30, 1983, and September 30, 1984. Upon establishment of a National Board on Water <sidenote><p class="indent0 firstIndent0 fontsize8">Funds, transfer.</p></sidenote>Resources Policy, all unobligated funds of the Water Resources Council, established by the Water Resources Planning Act, are transferred to such National Board.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>No funds are authorized to be appropriated to the Secretary of <sidenote><p class="indent0 firstIndent0 fontsize8">Limitation.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s7874">42 USC 7874 note</ref>.</p></sidenote>the Interior for the purposes of water resources research and development, saline water research, development and demonstration, and associated activities in excess of $23,650,000 per fiscal year for each of the fiscal years ending September 30, 1982, September 30, 1983, and September 30, 1984.</content> </subsection> </section> </part> <part><num value="3">PART 3—</num><heading>TVA PROJECT</heading> <section class="firstIndent1 fontsize10"><num value="1811"><inline class="smallCaps">Sec</inline>. 1811. </num><content>No amount shall be authorized to be appropriated for the <sidenote><p class="indent0 firstIndent0 fontsize8">North Alabama Coal Gasification Project.</p></sidenote>fiscal years ending September 30, 1982, September 30, 1983, and September 30, 1984, to the Tennessee Valley Authority to carry out the North Alabama Coal Gasification Project at Murphy Hill, Alabama. The Tennessee Valley Authority shall provide for the repayment out of its proceeds from the project with interest at the rate established in accordance with section 15d(e) of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831n–4(e)) of all Federal funds invested in the North Alabama Coal Gasification Project at Murphy Hill, Alabama.</content> </section> </part> </subtitle> <page identifier="/us/stat/95/766">95 STAT. 766</page> <subtitle><num value="B">Subtitle B—</num><heading>Economic Development Programs</heading> <part><num value="1">PART 1—</num><heading>PUBLIC WORKS AND ECONOMIC DEVELOPMENT</heading> <section class="firstIndent1 fontsize10"><num value="1821"><inline class="smallCaps">Sec</inline>. 1821. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3135">42 USC 3135</ref>.</p></sidenote> <chapeau class="inline">The Public Works and Economic Development Act of 1965 (43 USC 3121 et seq.) is amended as follows:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Section 105 is amended by striking out “<quotedText>September 30, 1981, and September 30, 1982.</quotedText>” at the end of the first sentence and inserting in lieu thereof “<quotedText>and September 30, 1981, and not to exceed $150,000,000 for the fiscal year ending September 30, 1982</quotedText>.”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3141">42 USC 3141</ref>.</p></sidenote> <content class="inline">Section 201(c) is amended by striking out “<quotedText>September 30, 1981, and September 30, 1982.</quotedText>” at the end thereof and inserting in lieu thereof “<quotedText>and September 30, 1981, and not to exceed $46,500,000 for the fiscal year ending September 30, 1982.</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3144">42 USC 3144</ref>.</p></sidenote> <content class="inline">Section 204(c) is amended by striking out “<quotedText>September 30, 1981, and September 30, 1982.</quotedText>” and inserting in lieu thereof “<quotedText>and September 30, 1981.</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3152">42 USC 3152</ref>.</p></sidenote> <content class="inline">Section 303(a) is amended by striking out “<quotedText>September 30, 1981, and September 30, 1982.</quotedText>” and inserting in lieu thereof “<quotedText>and September 30, 1981, and not to exceed $35,500,000 for the fiscal year ending September 30, 1982.</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3153">42 USC 3153</ref>.</p></sidenote> <content class="inline">The first sentence of section 304(a) is amended by striking out “<quotedText>September 30, 1981, and September 30, 1982,</quotedText>” and inserting in lieu thereof “<quotedText>and September 30, 1981,</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3171">42 USC 3171</ref>.</p></sidenote> <content class="inline">Section 403(g) is amended by striking out “<quotedText>September 30, 1981, and September 30, 1982,</quotedText>” and inserting in lieu thereof “<quotedText>and September 30, 1981,</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3172">42 USC 3172</ref>.</p></sidenote> <content class="inline">Section 404 is amended by striking out “<quotedText>September 30, 1981, and September 30, 1982,</quotedText>” and inserting in lieu thereof “<quotedText>and September 30, 1981,</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3181">42 USC 3181</ref>.</p></sidenote> <content class="inline">Effective September 30, 1981, title V is repealed.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">(9) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3219">42 USC 3219</ref>.</p></sidenote> <content class="inline">Section 709 is amended by inserting “<quotedText>, except that there are hereby authorized to be appropriated to carry out those provisions of the Act for which specific authority for appropriations is not otherwise provided in this Act not to exceed $25,000,000 for the fiscal year ending September 30, 1982</quotedText>” before the period at the end of the first sentence.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">(10) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3236">42 USC 3236</ref>.</p></sidenote> <content class="inline">Title VIII is amended by striking out section 806.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="11">(11) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3245">42 USC 3245</ref>.</p></sidenote> <content class="inline">Section 905 is amended by striking out “<quotedText>September 30, 1981, and September 30, 1982.</quotedText>” and inserting in lieu thereof “<quotedText>and September 30, 1981, and not to exceed $33,000,000 for the fiscal year ending September 30, 1982.</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="12">(12) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3246g">42 USC 3246g</ref>.</p></sidenote> <content class="inline">Section 1007 is amended by striking out “<quotedText>September 30, 1982.</quotedText>” and inserting in lieu thereof “<quotedText>September 30, 1981.</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s3219">42 USC 3219 note</ref>.</p></sidenote> <content class="inline">The total of all authorizations to carry out the Public Works and Economic Development Act of 1965 for the fiscal year 1982 shall not exceed $290,000,000 and in the obligation of such sum the Secretary shall approve projects in accordance with such Act as follows: (1) highest priority to those projects for which applications have been authorized to be filed as of the date of enactment of this section; (2) next priority to those projects for which preapplications or project profiles have been authorized to be filed as of the date of enactment of this section; and (3) thereafter other projects. The Secretary shall ensure that only technically approvable projects under these priorities will be funded, and that no new projects are approved which cannot be completed with funds obligated in fiscal year 1982.</content> </subsection> </section> </part> <page identifier="/us/stat/95/767">95 STAT. 767</page> <part><num value="2">PART 2—</num><heading>APPALACHIAN REGIONAL DEVELOPMENT</heading> <section class="firstIndent1 fontsize10"><num value="1822"><inline class="smallCaps">Sec</inline>. 1822. </num><subsection class="inline"><num value="a">(a) </num><chapeau>The Appalachian Regional Development Act of 1965 is amended as follows:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Section 105(b) is amended by striking out “<quotedText>$3,350,000 for the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s105">40 USC app. 105</ref>.</p></sidenote>fiscal year ending September 30, 1982 (of such amount not to exceed $550,000 shall be available for expenses of the Federal cochairman, his alternate, and his staff).</quotedText>” and inserting in lieu thereof “<quotedText>$2,900,000 for the fiscal year ending September 30, 1982 (of such amount not to exceed $400,000 shall be available for expenses of the Federal cochairman, his alternate, and his staff).</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 201(g) is amended by striking out “<quotedText>and $215,000,000 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s201">40 USC app. 201</ref>.</p></sidenote>for fiscal year 1982</quotedText>” and inserting in lieu thereof “<quotedText>and $165,000,000 for fiscal year 1982</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Section 401 is amended by striking out “<quotedText>$140,000,000 for the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t40/s401">40 USC app. 401</ref>.</p></sidenote>fiscal year ending September 30, 1982.</quotedText>q” and inserting in lieu thereof “<quotedText>$50,000,000 for the fiscal year ending September 30, 1982.</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Section 401 is amended by adding at the end thereof the following: “<quotedText>No part of the sums authorized in this section for the fiscal year ending September 30, 1982, shall be obligated for any project unless such project was undertaken with funds obligated in a previous fiscal year or is a capital project which was originally approved for funding in fiscal year 1981 and can be started and completed with funds authorized for fiscal year 1982.</quotedText>”</content></paragraph> </subsection> </section> </part> </subtitle> <num value="XIX">TITLE XIX—</num><heading>SMALL BUSINESS <sidenote><p class="indent0 firstIndent0 fontsize8">Small Business Budget Reconciliation and Loan Consolidation/Improvement Act of 1981.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s631">15 USC 631 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s636">15 USC 636</ref>.</p></sidenote></heading> <section class="firstIndent1 fontsize10"><num value="1901"><inline class="smallCaps">Sec</inline>. 1901. </num><content>This title may be cited as the “<shortTitle role="title">Small Business Budget Reconciliation and Loan Consolidation/Improvement Act of 1981</shortTitle>”.</content> </section> <section class="firstIndent1 fontsize10"><num value="1902"><inline class="smallCaps">Sec</inline>. 1902. </num><content>Subsection (a) of section 7 of the Small Business Act is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><chapeau>The Administration is empowered to the extent and in such amounts as provided in advance in appropriation Acts to make loans for plant acquisition, construction, conversion, or expansion, including the acquisition of land, material, supplies, equipment, and working capital, and to make loans to any qualified small business concern, including those owned by qualified Indian tribes, for purposes of this Act. Such financings may be made either directly or in cooperation with banks or other financial institutions through agreements to participate on an immediate or deferred (guaranteed) basis. These powers shall be subject, however, to the following restrictions, <sidenote><p class="indent0 firstIndent0 fontsize8">Loan authority limitations.</p></sidenote>limitations, and provisions:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>No financial assistance shall be extended pursuant to this subsection if the applicant can obtain credit elsewhere. No immediate participation may be purchased unless it is shown that a deferred participation is not available; and no direct financing may be made unless it is shown that a participation is not available.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>In agreements to participate in loans on a deferred basis under this subsection, such participation by the Administration, except as provided in paragraph (6), shall be:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>not less than 90 per centum of the balance of the financing outstanding at the time of disbursement if such financing does not exceed $100,000; and</content></subparagraph> <page identifier="/us/stat/95/768">95 STAT. 768</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>subject to the limitation in paragraph (3)—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>not less than 70 per centum nor more than 90 per centum of the financing outstanding at the time of disbursement if such financing exceeds $100,000 but is less than $714,285, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>less than 70 per centum of the financing outstanding at the time of disbursement if such financing exceeds $714,285;</content> </clause> </subparagraph> <continuation class="indent0 firstIndent0 fontsize10"><proviso><i>Provided</i>, That the Administration shall not use the per centum of guarantee requested as a criterion to establish priorities in approving guarantee requests nor shall the Administration reduce the per centum guaranteed to less than 90 per centum pursuant to subparagraph (B) other than by a determination made on each application.</proviso></continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>No loan under this subsection shall be made if the total amount outstanding and committed (by participation or otherwise) to the borrower from the business loan and investment fund established by this Act would exceed $500,000: <proviso><i>Provided</i>, That no such loan made or effected either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate basis shall exceed $350,000.</proviso></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>The rate of interest on financings made on a deferred basis shall be legal and reasonable but shall not exceed a rate prescribed by the Administration, and the rate of interest for the Administration’s share of any direct or immediate participation loan shall not exceed the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans and adjusted to the nearest one-eighth of 1 per centum, and an additional amount as determined by the Administration, but not to exceed 1 per centum per annum: <proviso><i>Provided</i>, That for those loans to assist any public or private organization for the handicapped or to assist any handicapped individual as provided in paragraph (10) of this subsection, the interest rate shall be 3 per centum per annum.</proviso></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>No such loans including renewals and extensions thereof may be made for a period or periods exceeding twenty-five years, except that such portion of a loan made for the purpose of acquiring real property or constructing, converting, or expanding facilities may have a maturity of twenty-five years plus such additional period as is estimated may be required to complete such construction, conversion, or expansion.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><chapeau>All loans made under this subsection shall be of such sound value or so secured as reasonably to assure repayment: <proviso><i>Provided, however</i>, That—</proviso></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>for loans to assist any public or private organization or to assist any handicapped individual as provided in paragraph (10) of this subsection any reasonable doubt shall be resolved in favor of the applicant;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>recognizing that greater risk may be associated with loans for energy measures as provided in paragraph (12) of this subsection, factors in determining ‘sound value’ shall include, but not be limited to, quality of the product or service; technical qualifications of the applicant or his employees; sales projections; and the financial status of the business concern: <proviso><i>Provided further</i>, That such status need <page identifier="/us/stat/95/769">95 STAT. 769</page>not be as sound as that required for general loans under this subsection; and</proviso></content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><chapeau>the Administration shall not decline to participate in a loan on a deferred basis under this subsection solely because such loan will be used to refinance all or any part of the existing indebtedness of a small business concern, unless the Administration determines that—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the holder of such existing indebtedness is in a position likely to sustain a loss if such refinancing is not provided, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>if the Administration provides such refinancing through an agreement to participate on a deferred basis, it will be in a position likely to sustain part or all of any loss which would have otherwise been sustained by the holder of the original indebtedness: <proviso><i>Provided further</i>, That the Administration may decline to approve such refinancing if it determines that the loan will not benefit the small business concern.</proviso></content> </clause> </subparagraph> <continuation class="indent0 firstIndent0 fontsize10">On that portion of the loan used to refinance existing indebtedness held by a bank or other lending institution, the Administration shall limit the amount of deferred participation to 80 per centum of the amount of the loan at the time of disbursement: <proviso><i>Provided further</i>, That any authority conferred by this subparagraph on the Administration shall be exercised solely by the Administration and shall not be delegated to other than Administration personnel.</proviso></continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>The Administration may defer payments on the principal of such loans for a grace period and use such other methods as it deems necessary and appropriate to assure the successful establishment and operation of such concern.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><subparagraph class="inline"><num value="A">(A) </num><content>Any loan made under the authority of this subsection by the Administration in cooperation with a bank or other lending institution through an agreement to participate on a deferred basis, may, upon the concurrence of the Administration, borrower and such bank or institution, have the term of such loan extended or such loan refinanced with an extension of its term: <proviso><i>Provided</i>, That the aggregate term of such extended or refinanced loan does not exceed the term permitted pursuant to paragraph (5):</proviso> <proviso><i>And provided further</i>, That such extended loans, or refinancings shall be repaid in equal installments of principal and interest.</proviso></content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>An additional service fee not exceeding 1 per centum of the outstanding amount of the principal may be paid by the borrower to the lender in consideration for such lender extending the term or refinancing of such borrower’s indebtedness if such extension or refinancing results in the term of such indebtedness exceeding ten years.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>The authority provided in this paragraph shall not be construed to otherwise limit the authority of the Administration to set terms and conditions of the loan.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">“(9) </num><content>The Administration may provide loans under this subsection to finance residential or commerical construction or rehabilitation for sale: <proviso><i>Provided, however</i>, That such loans shall not be used primarily for the acquisition of land.</proviso></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">“(10) </num><content>The Administration may provide loans under this subsection to assist any public or private organization for the handicapped or to assist any handicapped individual in establishing, acquiring, or operating a small business concern.</content></paragraph> <page identifier="/us/stat/95/770">95 STAT. 770</page> <paragraph class="firstIndent1 fontsize10"><num value="11">“(11) </num><content>The Administration may provide loans under this subsection to any small business concern, or to any qualified person seeking to establish such a concern when it determines that such loan will further the policies established in section 2(c) of this <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s631">15 USC 631</ref>.</p></sidenote>Act, with particular emphasis on the preservation or establishment of small business concerns located in urban or rural areas with high proportions of unemployed or low-income individuals or owned by low-income individuals.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="12">“(12) </num><content>The Administration may provide loans under this subsection to assist any small business concern, including start up, to enable such concern to design architecturally or engineer, manufacture, distribute, market, install, or service energy measures: <proviso><i>Provided, however</i>, That such loan proceeds shall not be used primarily for research and development.</proviso></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="13">“(13) </num><content>The Administration may provide financings under this subsection to State and local development companies for the purposes of, and subject to the restrictions in, title V of the Small <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s695">15 USC 695</ref>.</p></sidenote>Business Investment Act of 1958.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="14">“(14) </num><content>The Administration under this subsection may provide extensions and revolving lines of credit for export purposes to enable small business concerns to develop foreign markets and for preexport financing: <proviso><i>Provided, however</i>, That no such extension or revolving line of credit may be made for a period or periods exceeding eighteen months. A bank or participating lending institution may establish the rate of interest on extensions and revolving lines of credit as may be legal and reasonable.</proviso></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="15">“(15) </num><subparagraph class="inline"><num value="A">(A) </num><content>The Administration may guarantee loans under this subsection to qualified employee trusts with respect to a small business concern for the purpose of purchasing stock of the concern under a plan approved by the Administrator which, when carried out, results in the qualified employee trust owning at least 51 per centum of the stock of the concern.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>The plan requiring the Administrator’s approval under subparagraph (A) shall be submitted to the Administration by the trustee of such trust with its application for the guarantee. Such plan shall include an agreement with the Administrator which is binding on such trust and on the small business concern and which provides that—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>not later than the date the loan guaranteed under subparagraph (A) is repaid (or as soon thereafter as is consistent with the requirements of section 401(a) of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s401">26 USC 401</ref>.</p></sidenote>Internal Revenue Code of 1954), at least 51 per centum of the total stock of such concern shall be allocated to the accounts of at least 51 per centum of the employees of such concern who are entitled to share in such allocation,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>there will be periodic reviews of the role in the management of such concern of employees to whose accounts stock is allocated, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>there will be adequate management to assure management expertise and continuity.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>In determining whether to guarantee any loan under this paragraph, the individual business experience or personal assets of employee-owners shall not be used as criteria, except inasmuch as certain employee-owners may assume managerial responsibilities, in which case business experience may be considered.</content></subparagraph> <page identifier="/us/stat/95/771">95 STAT. 771</page> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>For purposes of this paragraph, a corporation which is controlled by any other person shall be treated as a small business concern if such corporation would, after the plan described in subparagraph (B) is carried out, be treated as a small business concern.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>The Administration shall compile a separate list of applications <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote>for assistance under this paragraph, indicating which applications were accepted and which were denied, and shall report periodically to the Congress on the status of employee-owned firms assisted by the Administration.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </section> <section class="firstIndent1 fontsize10"><num value="1903"><inline class="smallCaps">Sec</inline>. 1903. </num><content>Section 3 of the Small Business Act is amended by adding <sidenote><p class="indent0 firstIndent0 fontsize8">Definitions.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s632">15 USC 632</ref>.</p></sidenote>thereto the following subsections: <quotedContent> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>For purposes of section 7 of this Act, the term ‘qualified Indian <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s636">15 USC 636</ref>.</p></sidenote>tribe’ means an Indian tribe as defined in section 4(a) of the Indian Self-Determination and Education Assistance Act, which owns and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t25/s450b">25 USC 450b</ref>.</p></sidenote>controls 100 per centum of a small business concern.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><chapeau>For purposes of section 7 of this Act, the term ‘public or private organization for the handicapped’ means one—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>which is organized under the laws of the United States or of any State, operated in the interest of handicapped individuals, the net income of which does not inure in whole or in part to the benefit of any shareholder or other individual;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>which complies with any applicable occupational health and safety standard prescribed by the Secretary of Labor; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>which, in the production of commodities and in the provision of services during any fiscal year in which it received financial assistance under this subsection, employs handicapped individuals for not less than 75 per centum of the man-hours required for the production or provision of the commodities or services.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><content>For purposes of section 7 of this Act, the term ‘handicapped individual’ means a person who has a physical, mental, or emotional impairment, defect, ailment, disease, or disability of a permanent nature which in any way limits the selection of any type of employment for which the person would otherwise be qualified or qualifiable.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><chapeau>For purposes of section 7 of this Act, the term ‘energy measures’ includes—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>solar thermal energy equipment which is either of the active type based upon mechanically forced energy transfer or of the passive type based on convective, conductive, or radiant energy transfer or some combination of these types;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>photovoltaic cells and related equipment;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>a product or service the primary purpose of which is conservation of energy through devices or techniques which increase the energy efficiency of existing equipment, methods of operation, or systems which use fossil fuels, and which is on the Energy Conservation Measures list of the Secretary of Energy or which the Administrator determines to be consistent with the intent of this subsection;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>equipment the primary purpose of which is production of energy from wood, biological waste, grain, or other biomass source of energy;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>equipment the primary purpose of which is industrial cogeneration of energy, district heating, or production of energy from industrial waste;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>hydroelectric power equipment;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>wind energy conversion equipment; and</content></paragraph> <page identifier="/us/stat/95/772">95 STAT. 772</page> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><content>engineering, architectural, consulting, or other professional services which are necessary or appropriate to aid citizens in using any of the measures described in paragraph (1) through (7).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="h">“(h) </num><content>For purposes of this Act, the term ‘credit elsewhere’ means the availability of credit from non-Federal sources on reasonable terms and conditions taking into consideration the prevailing rates and terms in the community in or near where the concern transacts business, or the homeowner resides, for similar purposes and periods of time.</content> </subsection> <subsection class="indent0 fontsize10"><num value="i">“(i) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s636">15 USC 636</ref>.</p></sidenote> <content class="inline">For purposes of section 7 of this Act, the term ‘homeowners’ includes owners and lessees of residential property and also includes personal property.”.</content> </subsection> </quotedContent> </content> </section> <section class="firstIndent1 fontsize10"><num value="1904"><inline class="smallCaps">Sec</inline>. 1904. </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Report to congressional committees.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s639">15 USC 639</ref>.</p></sidenote> <content class="inline">Section 10(b) of the Small Business Act is amended by striking out “<quotedText>subsection</quotedText>” and all that follows and by inserting in lieu thereof, “<quotedText>this Act. Such report shall provide such information separately on each type of loan made under paragraphs (10) through (15) of section 7(a) and separately for all other loan programs. In addition, the information on loans shall be supplied on a monthly basis to the Committee on Small Business of the Senate and the Committee on Small Business of the House of Representatives.</quotedText>”.</content> </section> <section class="firstIndent1 fontsize10"><num value="1905"><inline class="smallCaps">Sec</inline>. 1905. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s631">15 USC 631 note</ref>.</p></sidenote> <content class="inline">Section 20 of the Small Business Act is amended by striking out all after subsection (j) and inserting the following: <quotedContent> <subsection class="indent0 fontsize10"><num value="k">“(k) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Loan program expenditure levels.</p></sidenote> <chapeau class="inline">The following program levels are authorized for fiscal year 1982:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>For the programs authorized by section 7(a) of this Act, the Administration is authorized to make $195,000,000 in direct and immediate participation loans; and of such sum, the Administration is authorized to make $15,000,000 in loans as provided in paragraph (10), $45,000,000 in loans as provided in paragraph (11), and $10,000,000 in loans as provided in paragraph (12).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>For the programs authorized by 7(a) of this Act, and section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s697">15 USC 697</ref>.</p></sidenote>503 of the Small Business Investment Act of 1958, the Administration is authorized to make $3,140,000,000 in deferred participation loans and guarantees of debentures; and of such sum, the Administration is authorized to make $5,000,000 in loans as provided in paragraph (10), $60,000,000 in loans as provided in paragraph (11), $17,000,000 in loans as provided in paragraph (12), and $250,000,000 in loans as provided in paragraph (13) and guarantees of debentures as provided in section 503.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>For the programs authorized by title III of the Small <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s681">15 USC 681</ref>.</p></sidenote>Business Investment Act of 1958, the Administration is authorized to make $35,000,000 in direct purchase of debentures and preferred securities and to make $160,000,000 in guarantees of debentures.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>For the programs authorized by part B of title IV of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s694a">15 USC 694a</ref>.</p></sidenote>Small Business Investment Act of 1958, the Administration is authorized to enter into guarantees not to exceed $1,400,000,000.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s636">15 USC 636</ref>.</p></sidenote> <content class="inline">For the program authorized by section 7(b)(3) of this Act, the Administration shall not enter into any loans, guarantees, or other obligations or commitments.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>For the programs authorized in sections 404 and 405 of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s694–1/694–2">15 USC 694–1, 694–2</ref>.</p></sidenote>Small Business Investment Act of 1958, the Administration is authorized to enter into guarantees not to exceed $250,000,000.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>There are hereby authorized to be appropriated such sums as may be necessary and appropriate for the carrying out of the provisions and purposes, including administrative expenses, of sections 70(b)(1) and 7 (b)(2) of this Act; and there are authorized to <page identifier="/us/stat/95/773">95 STAT. 773</page>be transferred from the disaster loan revolving funds such sums as may be necessary and appropriate for such administrative expenses.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="l">“(l) </num><chapeau>There are authorized to be appropriated to the Administration <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote>for fiscal year 1982, $623,000,000. Of such sum, $362,000,000 shall be available for the purpose of carrying out the programs referred to in subsection (k), paragraphs (1) through (3); $30,000,000 shall be available for the purpose of carrying out the provisions of section 412 of the Small Business Investment Act of 1958; $4,000,000 shall be available <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s694c">15 USC 694c</ref>.</p></sidenote>for the purpose of carrying out the provisions of section 403 of the Small Business Investment Act of 1958; and $227,000,000 shall be <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s694">15 USC 694</ref>.</p></sidenote>available for salaries and expenses of the Administration of which amount—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>$12,526,000 shall be available for procurement and technical assistance; of which amount not less than $2,318,000 shall be available for technical assistance, and of this amount not less than $903,000 shall be used to pay for the continued development of a procurement automated source system, and not less than $175,000 shall be used to develop and maintain technology assistance centers which shall have direct or indirect access to a minimum of thirty technology data banks to define the technology problems or needs of small businesses by searching technology data banks or other sources to locate, obtain and interpret the appropriate technology for such small business.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>$26,638,000 shall be available for management assistance of which amount not less than $1,214,000 shall be used to sustain the small business export development program and to employ not less than seventeen staff people for the Office of International Trade, ten of whom shall serve as export development specialists with each of the Administration’s regional offices being assigned one such specialist.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>$8,000,000 shall be available for economic research and analysis and advocacy, of which amount not less than $2,420,000 shall be used to employ at least sixty-nine staff people for the office of the Chief Counsel for Advocacy to carry out research and those functions prescribed by Public Law 94–305; not less than <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s634a">15 USC 634a</ref>.</p></sidenote>$1,400,000 shall be used to develop an external small business data bank and small business index; not less than $1,350,000 shall be used for research; and not less than $1,000,000 shall be used to pay for development and maintenance of an indicative small business data base comprised of names and addresses and related information.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>$30,250,000 shall be available for the Office of Minority Small Business and Capital Ownership Development, $13,655,000 of which shall be used to carry out those functions, including administrative expenses, prescribed by section 7(j) of this Act. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s636">15 USC 636</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>$10,546,000 shall be available for program evaluation and data management with priority given to the development of an automated internal Administration management data base, to the enhancement of the Administration’s document tracking system, and to the installation of terminals in Administration field offices.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>There are hereby authorized to be appropriated such sums as may be necessary and appropriate for carrying out the provisions and purposes of the small business development center program in section 21. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s648">15 USC 648</ref>.</p></sidenote></content></paragraph> </subsection> <page identifier="/us/stat/95/774">95 STAT. 774</page> <subsection class="indent0 fontsize10"><num value="m">“(m) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Funds, transfer.</p></sidenote> <content class="inline">The Administrator may transfer no more than 10 per centum of each of the total levels for salaries and expenses authorized in <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 772.</p></sidenote>paragraphs (1) through (5) of section 20(1) of this Act: <proviso><i>Provided, however</i>, That no level authorized in such paragraphs may be increased more than 20 per centum by any such transfers.</proviso></content> </subsection> <subsection class="indent0 fontsize10"><num value="n">“(n) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Program expenditure levels.</p><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 767.</p></sidenote> <chapeau class="inline">The following program levels are authorized for fiscal year 1983:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>For the programs authorized by section 7(a) of this Act, the Administration is authorized to make $195,000,000 in direct and immediate participation loans; and of such sum, the Administration is authorized to make $15,000,000 in loans as provided in paragraph (10), $45,000,000 in loans as provided in paragraph (11), and $10,000,000 in loans as provided in paragraph (12).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>For the programs authorized by section 7(a) of this Act and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s697">15 USC 697</ref>.</p></sidenote>section 503 of the Small Business Investment Act of 1958, the Administration is authorized to make $3,140,000,000 in deferred participation loans and guarantees of debentures; and of such sum, the Administration is authorized to make $5,000,000 in loans as provided in paragraph (10), $60,000,000 in loans as provided in paragraph (11), $17,000,000 in loans as provided in paragraph (12), and $350,000,000 in loans as provided in paragraph (13) and guarantees of debentures as provided in section 503.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>For the programs authorized by title III of the Small <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s681">15 USC 681</ref>.</p></sidenote>Business Investment Act of 1958, the Administration is authorized to make $35,000,000 in direct purchases of debentures and preferred securities and to make $160,000,000 in guarantees of debentures.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>For the programs authorized by part B of title IV of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s694a">15 USC 694a</ref>.</p></sidenote>Small Business Investment Act of 1958, the Administration is authorized to enter into guarantees not to exceed $1,400,000,000.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>For the program authorized by section 7(b)(3) of this Act, the Administration shall not enter into any loans, guarantees, or other obligations or commitments.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>For the programs authorized in sections 404 and 405 of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s694–1/694–2">15 USC 694–1, 694–2</ref>.</p></sidenote>Small Business Investment Act of 1958, the Administration is authorized to enter into guarantees not to exceed $250,000,000.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>There are hereby authorized to be appropriated such sums as may be necessary and appropriate for the carrying out of the provisions and purposes, including administrative expenses, of sections 7(b)(1) and 7(b)(2) of this Act; and there are authorized to be transferred from the disaster loan revolving funds such sums as may be necessary and appropriate for such administrative expenses.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="o">“(o) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote> <chapeau class="inline">There are authorized to be appropriated to the Administration for fiscal year 1983, $675,000,000. Of such sum, $408,000,000 shall be available for the purpose of carrying out the programs referred to in subsection (n), paragraphs (1) through (3); $30,000,000 shall be available for the purpose of carrying out the provisions of section 412 of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s694c">15 USC 694c</ref>.</p></sidenote>Small Business Investment Act of 1958; $4,000,000 shall be available for the purpose of carrying out the provisions of section 403 of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s694">15 USC 694</ref>.</p></sidenote>Small Business Investment Act of 1958; and $233,000,000 shall be available for salaries and expenses of the Administration of which amount—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>$12,526,000 shall be available for procurement and technical assistance; of which amount not less than $2,318,000 shall be available for technical assistance, and of this amount not less than $903,000 shall be used to pay for the continued development <page identifier="/us/stat/95/775">95 STAT. 775</page>of a procurement automated source system, and not less than $175,000 shall be used to develop and maintain technology assistance centers which shall have direct or indirect access to a minimum of thirty technology data banks to define the technology problems or needs of small businesses by searching technology data banks or other sources to locate, obtain and interpret the appropriate technology for such small business.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>$29,638,000 shall be available for management assistance of which amount not less than $1,214,000 shall be used to sustain the small business export development program and to employ not less than seventeen staff people for the Office of International Trade, ten of whom shall serve as export development specialists with each of the Administration’s regional offices being assigned one such specialist.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>$8,000,000 shall be available for economic research and analysis and advocacy, of which amount not less than $2,420,000 shall be used to employ at least sixty-nine staff people for the office of the Chief Counsel for Advocacy to carry out research and those functions prescribed by Public Law 94–305; not less than <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s634a">15 USC 634a</ref>.</p></sidenote>$1,400,000 shall be used to develop an external small business data bank and small business index; not less than $1,350,000 shall be used for research; and not less than $1,000,000 shall be used to pay for development and maintenance of an indicative small business data base comprised of names and addresses and related information.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>$30,250,000 shall be available for the Office of Minority Small Business and Capital Ownership Development, $13,655,000 of which shall be used to carry out those functions, including administrative expenses, prescribed by section 7(j) of this Act. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s636">15 USC 636</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>$10,546,000 shall be available for program evaluation and data management with priority given to the development of an automated internal Administration management data base, to the enhancement of the Administration’s document tracking system, and to the installation of terminals in Administration field offices.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>There are hereby authorized to be appropriated such sums as may be necessary and appropriate for carrying out the provisions and purposes of the Small business development center program in section 21. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s648">15 USC 648</ref>.</p><p class="indent0 firstIndent0 fontsize8">Funds, transfer.</p></sidenote></content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="p">“(p) </num><content>The Administrator may transfer no more than 10 per centum of each of the total levels for salaries and expenses authorized in paragraphs (1) through (5) of section 20(o) of this Act: <proviso><i>Provided, <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 772.</p></sidenote>however</i>, That no level authorized in such paragraphs may be increased more than 20 per centum by any such transfers.</proviso></content> </subsection> <subsection class="indent0 fontsize10"><num value="q">“(q) </num><chapeau>The following program levels are authorized for fiscal year <sidenote><p class="indent0 firstIndent0 fontsize8">Loan program expenditure levels.</p><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 767.</p></sidenote>1984:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>For the programs authorized by section 7(a) of this Act, the Administration is authorized to make $195,000,000 in direct and immediate participation loans; and of such sum, the Administration is authorized to make $15,000,000 in loans as provided in paragraph (10), $45,000,000 in loans as provided in paragraph (11), and $10,000,000 in loans as provided in paragraph (12).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>For the programs authorized by 7(a) of this Act and section 503 of the Small Business Investment Act of 1958, the Administration <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s697">15 USC 697</ref>.</p></sidenote>is authorized to make $3,140,000,000 in deferred participation loans and guarantees of debentures; and of such sum, the Administration is authorized to make $5,000,000 in loans as <page identifier="/us/stat/95/776">95 STAT. 776</page>provided in paragraph (10), $60,000,000 in loans as provided in paragraph (11), $17,000,000 in loans as provided in paragraph (12), and $350,000,000 in loans as provided in paragraph (13) and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s697">15 USC 697</ref>.</p></sidenote>guarantees of debentures as provided in section 503.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>For the programs authorized by title III of the Small <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s681">15 USC 681</ref>.</p></sidenote>Business Investment Act of 1958, the Administration is authorized to make $35,000,000 in direct purchases of debentures and preferred securities and to make $160,000,000 in guarantees of debentures.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>For the programs authorized by part B of title IV of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s694a">15 USC 694a</ref>.</p></sidenote>Small Business Investment Act of 1958, the Administration is authorized to enter into guarantees not to exceed $1,400,000,000.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s636">15 USC 636</ref>.</p></sidenote> <content class="inline">For the program authorized by section 7(b)(3) of this Act, the Administration shall not enter into any loans, guarantees, or other obligations or commitments.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>For the programs authorized in sections 404 and 405 of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s694–1/694–2">15 USC 694–1, 694–2</ref>.</p></sidenote>Small Business Investment Act of 1958, the Administration is authorized to enter into guarantees not to exceed $250,000,000.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>There are hereby authorized to be appropriated such sums as may be necessary and appropriate for the carrying out of the provisions and purposes, including administrative expenses, of sections 7(b)(1) and 7(b)(2) of this Act; and there are authorized to be transferred from the disaster loan revolving funds such sums as may be necessary and appropriate for such administrative expenses.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="r">“(r) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote> <chapeau class="inline">There are authorized to be appropriated to the Administration for fiscal year 1984, $804,000,000. Of such sum, $531,000,000 shall be available for the purpose of carrying out the programs referred to in subsection (q), paragraphs (1) through (3); $30,000,000 shall be available for the purpose of carrying out the provisions of section 412 of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s694c">15 USC 694c</ref>.</p></sidenote>Small Business Investment Act of 1958; $4,000,000 shall be available for the purpose of carrying out the provisions of section 403 of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s694">15 USC 694</ref>.</p></sidenote>Small Business Investment Act of 1958; and $239,000,000 shall be available for salaries and expenses of the Administration of which amount—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>$12,526,000 shall be available for procurement and technical assistance; of which amount not less than $2,318,000 shall be available for technical assistance, and of this amount not less than $903,000 shall be used to pay for the continued development of a procurement automated source system, and not less than $175,000 shall be used to develop and maintain technology assistance centers which shall have direct or indirect access to a minimum of thirty technology data banks to define the technology problems or needs of small businesses by searching technology data banks or other sources to locate, obtain and interpret the appropriate technology for such small business.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>$32,138,000 shall be available for management assistance of which amount not less than $1,214,000 shall be used to sustain the small business export development program and to employ not less than seventeen staff people for the Office of International Trade, ten of whom shall serve as export development specialists with each of the Administration’s regional offices being assigned one such specialist.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>$8,000,000 shall be available for economic research and analysis and advocacy, of which amount not less than $2,420,000 shall be used to employ at least sixty-nine staff people for the office of the Chief Counsel for Advocacy to carry out research and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s634a">15 USC 634a</ref>.</p></sidenote>those functions prescribed by Public Law 94–305; not less than <page identifier="/us/stat/95/777">95 STAT. 777</page>$1,400,000 shall be used to develop an external small business data bank and small business index; not less than $1,350,000 shall be used for research; and not less than $1,000,000 shall be used to pay for development and maintenance of an indicative small business data base comprised of names and addresses and related information.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>$30,250,000 shall be available for the Office of Minority Small Business and Capital Ownership Development, $13,655,000 of which shall be used to carry out those functions, including administrative expenses, prescribed by section 7(j) of this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>$10,546,000 shall be available for program evaluation and data management with priority given to the development of an automated internal Administration management data base, to the enhancement of the Administration’s document tracking system, and to the installation of terminals in Administration field offices.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>There are hereby authorized to be appropriated such sums as may be necessary and appropriate for carrying out the provisions and purposes of the small business development center program in section 21. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s648">15 USC 648</ref>.</p></sidenote></content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="s">“(s) </num><content>The Administrator may transfer no more than 10 per centum of <sidenote><p class="indent0 firstIndent0 fontsize8">Funds, transfer.</p></sidenote>each of the total levels for salaries and expenses authorized in paragraphs (1) through (5) of section 20(r) of this Act: <proviso><i>Provided, <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 772.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s631">15 USC 631 note</ref>.</p></sidenote>however</i>, That no level authorized in such paragraphs may be increased more than 20 per centum by any such transfers.”.</proviso></content> </subsection> </quotedContent> </content> </section> <section class="firstIndent1 fontsize10"><num value="1906"><inline class="smallCaps">Sec</inline>. 1906. </num><content>Section 20(h) of the Small Business Act is hereby <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s631">15 USC 631 note</ref>.</p></sidenote>amended by striking from paragraph (9) the figure “<quotedText>$110,000,000</quotedText>” and by inserting “<quotedText>$180,000,000</quotedText>”.</content> </section> <section class="firstIndent1 fontsize10"><num value="1907"><inline class="smallCaps">Sec</inline>. 1907. </num><chapeau>Not later than February 28, 1984, and February 28, 1985, <sidenote><p class="indent0 firstIndent0 fontsize8">Report to congressional committees.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s636">15 USC 636 note</ref>.</p></sidenote>the Small Business Administration shall submit to the Committee on Small Business of the Senate and the Committee on Small Business of the House of Representatives, a report which shall contain—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>with respect to section 7(a)(5) of the Small Business Act— <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 767.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the aggregate number, dollar value, and default rate of all loans (other than for the acquisition of real property or for construction) having a maturity not in excess of ten years, and the aggregate number, dollar value, and default rate of all loans made for the purpose of acquiring real property or for construction having a maturity of between ten years and twenty years plus such additional period as is estimated may be required to complete such construction; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>the aggregate number, dollar value, and default rate of all loans (other than for the acquisition of real property or for construction) made since the effective date of this section, having a maturity in excess of ten years, and the aggregate number, dollar value, and default rate of all loans made for the purpose of acquiring real property or for construction made since the effective date of this section, having a maturity in excess of twenty years plus such additional period as is estimated may be required to complete such construction;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>with respect to section 7(a)(8)(A) of the Small Business Act—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the aggregate number, dollar value, and default rate of loans extended or refinanced pursuant to such section; and</content></subparagraph> <page identifier="/us/stat/95/778">95 STAT. 778</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>the average term of loans before such extension or refinancing and the average term of such loans after such extension or refinancing; and</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 767.</p></sidenote> <content class="inline">with respect to section 7(a)(6)(C) of the Small Business Act, the aggregate number, dollar value, and default rate of all loans refinanced pursuant to such provision.</content></paragraph> </section> <section class="firstIndent1 fontsize10"><num value="1908"><inline class="smallCaps">Sec</inline>. 1908. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s633">15 USC 633</ref>.</p></sidenote> <content class="inline">Section 4(c)(1)(B) of the Small Business Act is amended by deleting “<quotedText>7(e), 7(h), 7(i), 7(l),</quotedText>”.</content> </section> <section class="firstIndent1 fontsize10"><num value="1909"><inline class="smallCaps">Sec</inline>. 1909. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s696">15 USC 696</ref>.</p></sidenote> <content class="inline">Section 502 of the Small Business Investment Act of 1958 is amended by striking paragraphs (1) and (5) and by renumbering paragraphs (2), (3), and (4) as paragraphs (1), (2), and (3), respectively.</content> </section> <section class="firstIndent1 fontsize10"><num value="1910"><inline class="smallCaps">Sec</inline>. 1910. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 767.</p></sidenote> <content class="inline">Sections 7(a)(6)(C) and 7(a)(8) of the Small Business Act as enacted herein are repealed October 1, 1985.</content> </section> <section class="firstIndent1 fontsize10"><num value="1911"><inline class="smallCaps">Sec</inline>. 1911. </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Disaster loans.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s636">15 USC 636</ref>.</p></sidenote> <content class="inline">Sections 7(b)(1) and 7(b)(2) of the Small Business Act are amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>The Administration also is empowered to the extent and in such amounts as provided in advance in appropriation Acts—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><subparagraph class="inline"><num value="A">(A) </num><content>to make such loans (either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred (guaranteed) basis) as the Administration may determine to be necessary or appropriate to repair, rehabilitate or replace property, real or personal, damaged or destroyed by or as a result of floods, riots or civil disorders, or other catastrophes: <proviso><i>Provided</i>, That such damage or destruction is not compensated for by insurance or otherwise;</proviso></content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>to refinance any mortgage or other lien against a totally destroyed or substantially damaged home or business concern: <proviso><i>Provided</i>, That no loan or guarantee shall be extended unless the Administration finds that (i) the applicant is not able to obtain credit elsewhere; (ii) such property is to be repaired, rehabilitated, or replaced; (iii) the amount refinanced shall not exceed the amount of physical loss sustained; and (iv) such amount shall be reduced to the extent such mortgage or lien is satisfied by insurance or otherwise;</proviso></content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>to make such loans (either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred (guaranteed) basis) as the Administration may determine to be necessary or appropriate to any small business concern located in an area affected by a disaster, if the Administration determines that the concern has suffered a substantial economic injury as a result of such disaster and if such disaster constitutes—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>a major disaster, as determined by the President under the Act entitled “An Act to authorize Federal assistance to States and local governments in major disasters, and for other purposes”, approved September 30, 1950, as amended (42 U.S.C. 1855–1855g); or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>a natural disaster, as determined by the Secretary of Agriculture pursuant to the Consolidated Farmers Home Administration Act of 1961 (7 U.S.C. 1961); or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>a disaster, as determined by the Administrator of the Small Business Administration; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>if no disaster declaration has been issued pursuant to subparagraph (A), (B), or (C), the Governor of a State in which a disaster has occurred may certify to the Small Business Administration that small business concerns (1) have suffered economic injury as a result of such disaster, and (2) are in need of financial assistance which is not <page identifier="/us/stat/95/779">95 STAT. 779</page>available on reasonable terms in the disaster stricken area. Upon receipt of such certification, the Administration may then make such loans as would have been available under this paragraph if a disaster declaration had been issued.</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10"><proviso><i>Provided</i>, That no loan or guarantee shall be extended pursuant to this paragraph (2) unless the Administration finds that the applicant is not able to obtain credit elsewhere.</proviso></continuation> </paragraph> </subsection> </quotedContent> </content> </section> <section class="firstIndent1 fontsize10"><num value="1912"><inline class="smallCaps">Sec</inline>. 1912. </num><content>Section 7(c) of the Small Business Act is amended by <sidenote><p class="indent0 firstIndent0 fontsize8">Interest rates on federal loans.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s636">15 USC 636</ref>.</p></sidenote>adding the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><chapeau>Notwithstanding the provisions of any other law, the interest rate on the Federal share of any loan made under subsection (b) shall be—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>in the case of a homeowner unable to secure credit elsewhere, the rate prescribed by the Administration but not more than one-half the rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans plus an additional charge of not to exceed 1 per centum per annum as determined by the Administrator, and adjusted to the nearest one-eighth of 1 per centum but not to exceed 8 per centum per annum;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>in the case of a homeowner able to secure credit elsewhere, the rate prescribed by the Administration but not more than the rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans plus an additional charge of not to exceed 1 per centum per annum as determined by the Administrator, and adjusted to the nearest one-eighth of 1 per centum;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>in the case of a business concern unable to obtain credit elsewhere, not to exceed 8 per centum per annum;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>in the case of a business concern able to obtain credit elsewhere, the rate prescribed by the Administration but not in excess of the rate prevailing in private market for similar loans and not more than the rate prescribed by the Administration as the maximum interest rate for deferred participation (guaranteed) loans under section 7(a) of this Act. Loans under this subparagraph shall be limited to a maximum term of three years.</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">Such loans, subject to the reductions required by subparagraphs (A) and (B) of paragraph (1), shall be in amounts equal to 100 percent of loss if the applicant is a homeowner and 85 percent of loss if the applicant is a business or otherwise. The interest rates for loans made under paragraphs (1) and (2), as determined pursuant to this paragraph (4), shall be the rate of interest which is in effect on the date the disaster commenced: <proviso><i>Provided</i>, That no loan under paragraphs (1) and (2) shall be made, either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred (guaranteed) basis, if the total amount outstanding and committed to the borrower under this subsection would exceed $500,000 for each disaster unless an applicant constitutes a major source of employment in an area suffering a disaster, in which <page identifier="/us/stat/95/780">95 STAT. 780</page>case the Administration, in its discretion, may waive the $500,000 limitation.”.</proviso></continuation> </paragraph> </quotedContent> </content> </section> <section class="firstIndent1 fontsize10"><num value="1913"><inline class="smallCaps">Sec</inline>. 1913. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Disaster loans.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s636">15 USC 636</ref>.</p></sidenote> <content class="inline">Section 7(b) of the Small Business Act is amended by striking out paragraphs (3) through (9) and inserting in lieu thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>to make such loans (either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred basis) as the Administration may determine to be necessary or appropriate to assist any small business concern in effecting additions to, alterations in, or reestablishment in the same or a new location of its plant, facilities, or methods of operation made necessary by direct action of the Federal Government or as a consequence of Federal Government action or to meet requirements or restrictions imposed on such concern under any Federal law heretofore or hereafter enacted or any State law enacted in conformity therewith, or any regulation or order of a duly authorized Federal, State, regional, or local agency issued in conformity with such Federal law, if the Administration determines that such concern is likely to suffer substantial economic injury or be unable to market a product without assistance under this paragraph: <proviso><i>Provided</i>, That the maximum loan made to any small business concern under this paragraph shall not exceed $500,000 and the amount thereof shall be based solely on a determination made on each application:</proviso> <proviso><i>Provided further</i>, That no loan or guarantee shall be extended unless the Administration finds that the applicant is unable to obtain credit elsewhere.”;</proviso></content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s633">15 USC 633</ref>.</p></sidenote> <content class="inline">Section 4(c)(1) of the Small Business Act is amended by striking all of subparagraph (A) after “<quotedText>7(b)(3),</quotedText>” and by inserting in lieu thereof “<quotedText>and 7(c)(2) of this Act; and</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s636">15 USC 636</ref>.</p></sidenote> <content class="inline">Section 7(g) of the Small Business Act is hereby repealed.</content> </subsection> </section> <section class="firstIndent1 fontsize10"><num value="1914"><inline class="smallCaps">Sec</inline>. 1914. </num><content>Section 7(c)(3) of the Small Business Act is amended by striking “<quotedText>to October 1, 1983</quotedText>” and by inserting “<quotedText>the effective date of this Act</quotedText>”.</content> </section> <section class="firstIndent1 fontsize10"><num value="1915"><inline class="smallCaps">Sec</inline>. 1915. </num><content>Section 4(c)(5)(B)(ii) of the Small Business Act is amended by striking all of the first sentence after “<quotedText>are made</quotedText>” and by inserting “<quotedText>from amounts appropriated for the disaster loan fond after October 1, 1980 or are made from repayments of principal of loans made from funds appropriated to the disaster loan fund, or from amounts appropriated to the business loan and investment fund on or after October 1, 1981 or are made from repayments of principal of loans made from funds appropriated to the business loan and investment fund and received on or after October 1, 1981.</quotedText>”.</content> </section> <section class="firstIndent1 fontsize10"><num value="1916"><inline class="smallCaps">Sec</inline>. 1916. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s636">15 USC 636 note</ref>.</p></sidenote> <content class="inline">Notwithstanding section 5(b)(6) of the Small Business Act, or any other provision of law, any business concern applicant for assistance made pursuant to paragraph (1), (2), or (4) of subsection 7(b) of the Small Business Act whose application was received but not approved by the Small Business Administration on or before March 19, 1981, shall be offered loan assistance by the Small Business Administration as provided in this section.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The Small Business Administration is specifically directed to reconsider and act upon any such application and to make, remake, obligate, reobligate, commit or recommit such financing as provided herein.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>If the applicant was a business concern able to obtain credit elsewhere, the terms and conditions shall be those specified in section 7(b)(3) of the Small Business Act; but if the Administrator determines that imposition of these provisions would impose a <page identifier="/us/stat/95/781">95 STAT. 781</page>substantial hardship on the applicant, he may, in his discretion on a case-by-case basis waive these provisions and provide assistance in accord with rules and regulations in effect for the date the disaster commenced for applicants able to secure credit elsewhere. If the applicant was a business concern unable to obtain credit elsewhere, or was an applicant under sections 7(b)(2) or 7(b)(4) of the Small Business Act, the terms and conditions shall be those in effect for <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 778.</p></sidenote>such applicants on the date such application was first received. As used herein, the term “credit elsewhere” shall have the meaning prescribed by the Small Business Act as amended herein.</content> </subsection> </section> <section class="firstIndent1 fontsize10"><num value="1917"><inline class="smallCaps">Sec</inline>. 1917. </num><content>Section 231 of the Disaster Relief Act is hereby repealed. <sidenote><p class="indent0 firstIndent0 fontsize8">Repeal.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s636a">15 USC 636a</ref>.</p><p class="indent0 firstIndent0 fontsize8">Effective dates.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s631">15 USC 631 note</ref>.</p></sidenote></content> </section> <section class="firstIndent1 fontsize10"><num value="1918"><inline class="smallCaps">Sec</inline>. 1918. </num><content>Sections 1908, 1909, and 1913 of this title shall be effective October 1, 1981, and section 1910 of this title shall be effective as provided therein. All other provisions of this title shall be effective immediately but shall not affect any financing made, obligated, or committed under the Small Business Act or the Small <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t15/s631/661">15 USC 631 note, 661 note</ref>.</p></sidenote>Business Investment Act of 1958 prior to the effective date hereof.</content> </section> <num value="XX">TITLE XX—</num><heading>VETERANS’ PROGRAMS</heading> <section> <heading class="centered smallCaps">burial benefits</heading><num value="2001"><inline class="smallCaps">Sec</inline>. 2001. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 902(a) of title 38, United States Code, is amended by striking out “<quotedText>Where a veteran dies—</quotedText>” and clauses (1) and (2) and inserting in lieu thereof “<quotedText>When a veteran dies who was in receipt of compensation (or but for the receipt of retirement pay would have been entitled to compensation) or in receipt of pension,</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The amendment made by paragraph (1) shall take effect with <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s902">38 USC 902 note</ref>.</p></sidenote>respect to deaths occurring after September 30, 1981.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 903(b) of such title is amended by inserting “<quotedText>who was discharged from the active military, naval, or air service for a disability incurred or aggravated in line of duty, or who is a veteran of any war</quotedText>” after “<quotedText>such subsection,</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">outpatient dental treatment</heading><num value="2002"><inline class="smallCaps">Sec</inline>. 2002. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 612(b) of title 38, United States Code, is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>in clause (2)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>and (B)</quotedText>” after “<quotedText>service</quotedText>” and inserting in lieu thereof a comma and the following: “<quotedText>(B) if the veteran had served not less than 180 days of active military, naval, or air service immediately before such discharge or release, (C)</quotedText>”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>within one year</quotedText>” both places it appears and inserting in lieu thereof “<quotedText>within 90 days</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out the semicolon and inserting in lieu thereof a comma and the following: “<quotedText>and (D) if the veteran’s certificate of discharge or release from active duty does not bear a certification that the veteran was provided, within the 90-day period immediately before the date of such discharge or release, a complete dental examination (including dental X-rays) and all appropriate dental services and treatment indicated by the examination to be needed;</quotedText>”; and</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting before the second sentence the following: <quotedContent> <p class="indent0 firstIndent0 fontsize10">“The Secretary concerned shall at the time a member of the Armed Forces is discharged or released from a period of active military, naval, or air service of not less than 180 days provide to such member <page identifier="/us/stat/95/782">95 STAT. 782</page>a written explanation of the provisions of clause (2) of this subsection and enter in the service records of the member a statement signed by the member acknowledging receipt of such explanation (or, if the member refuses to sign such statement, a certification from an officer designated for such purpose by the Secretary concerned that the member was provided such explanation).”.</p> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s612">38 USC 612 note</ref>.</p></sidenote> <content class="inline">The amendments made by clauses (1)(A), (1)(C), and (2) of subsection (a) shall take effect on October 1, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The amendment made by clause (1)(B) of subsection (a) shall apply only to veterans discharged or released from active military, naval, or air service after September 30, 1981.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">termination of educational assistance for pursuit of flight training</heading><num value="2003"><inline class="smallCaps">Sec</inline>. 2003. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 1631(c) of title 38, United States Code, is amended by striking out “<quotedText>either</quotedText>” and “or a program of flight training”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 1641 of such title is amended to read as follows: <quotedContent> <section><num value="1641">“§ 1641. </num> <heading>Requirements</heading> <content>“The provisions of sections 1663, 1670, 1671, 1673, 1674, 1676, 1683, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s1770">38 USC 1770 <i>et seq</i></ref>.</p></sidenote>and 1691(a)(1) of this title and the provisions of chapter 36 of this title (with the exception of sections 1777, 1780(c), and 1787) shall be applicable to the program.”.</content> </section> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s1662">38 USC 1662</ref>.</p></sidenote> <content class="inline">Section 1662(c) of such title is amended by striking out “<quotedText>or flight training within the provisions of section 1677 of this chapter,</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 1673(b) of such title is amended by striking out “<quotedText>Except as provided in section 1677 of this title, the</quotedText>” and inserting in lieu thereof “<quotedText>The</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>Section 1677 of such title, relating to flight training, is repealed.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>The table of sections at the beginning of chapter 34 of such title is amended by striking out the item relating to section 1677.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><chapeau>Section 1681 of such title is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>in subsection (b), by striking out “<quotedText>or a program of flight training</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out subsection (c) (including the center heading preceding such subsection).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>Section 1682(a)(1) of such title is amended by striking out “<quotedText>1677 or</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 1780(a) of such title is amended by striking out “<quotedText>or a program of flight training</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">reduction in level of educational assistance for correspondence courses</heading><num value="2004"><inline class="smallCaps">Sec</inline>. 2004. </num><subsection class="inline"><num value="a">(a) </num><content>Section 1786(a)(1) of title 38, United States Code, is amended by striking out “<quotedText>70 percent</quotedText>” and inserting in lieu thereof “<quotedText>55 percent</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s1786">38 USC 1786 note</ref>.</p></sidenote> <content class="inline">The amendment made by subsection (a) shall not apply to correspondence lessons completed and submitted to the educational institution concerned before October 1, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">education loan program</heading><num value="2005"><inline class="smallCaps">Sec</inline>. 2005. </num><subsection class="inline"><num value="a">(a) </num><content>Section 1631 of title 38, United States Code, is amended by striking out subsection (d).</content> </subsection> <page identifier="/us/stat/95/783">95 STAT. 783</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 1686 of such title is amended by inserting “<quotedText>to whom <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s1686">38 USC 1686</ref>.</p></sidenote>section 1662(a)(2) of this title is applicable</quotedText>” after “<quotedText>eligible veteran</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 1737 of such title is amended by inserting a comma and “<quotedText>before October 1, 1981,</quotedText>” after “<quotedText>shall be entitled</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><chapeau>Section 1798(a) of such title is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>Each</quotedText>” and inserting in lieu thereof “<quotedText>(1) Subject to paragraph (2) of this subsection, each</quotedText>”; and</content></paragraph> <subsection class="indent0 fontsize10"><num value="2">(2) </num><content>by adding at the end the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Except in the case of a veteran to whom section 1662(a)(2) of this title is applicable, no loan may be made under this subchapter after September 30, 1981.”.</content></paragraph> </quotedContent> </content> </subsection> </subsection> </section> <section> <heading class="centered smallCaps">effective dates with respect to flight training</heading><num value="2006"><inline class="smallCaps">Sec</inline>. 2006. </num><subsection class="inline"><num value="a">(a) </num><content>Except as provided in subsection (b), the amendments <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s1631">38 USC 1631 note</ref>.</p></sidenote>made by sections 2003 and 2005 shall take effect on October 1, 1981.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The amendments made by such sections shall not apply to any person receiving educational assistance under section 1677 of title 38, United States Code, as such section was in effect on August 31, 1981, <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 782.</p></sidenote>for the pursuit of a program of education (as defined in section 1652(b) of such title) in which such person was enrolled on that date, for as long as such person is continuously thereafter so enrolled and meets the requirements of eligibility for such assistance for the pursuit of such program under the provisions of chapters 34 and 36 of such title, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s1651/1770">38 USC 1651 <i>et seq</i>., 1770 <i>et seq</i>.</ref></p></sidenote>as in effect on that date.</content> </subsection> </section> <num value="XXI">TITLE XXI—</num><heading>MEDICARE, MEDICAID, AND MATERNAL AND CHILD HEALTH</heading> <section> <heading class="centered smallCaps">short title of subtitles a, b, and c; table of contents of title</heading><num value="2100"><inline class="smallCaps">Sec</inline>. 2100. </num><content>Subtitles A, B, and C of this title may be cited as the <sidenote><p class="indent0 firstIndent0 fontsize8">Medicare and Medicaid Amendments of 1981.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1305">42 USC 1305 note</ref>.</p></sidenote>“<shortTitle role="title">Medicare and Medicaid Amendments of 1981</shortTitle>”. <toc> <heading class="centered smallCaps">table of contents of title</heading> <referenceItem role="title"><designator class="centered">TITLE II—</designator><label class="centered">MEDICARE, MEDICAID, AND MATERNAL AND CHILD HEALTH</label></referenceItem> <referenceItem role="section"><designator>Sec. 2100.</designator> <label>Short title for subtitles A, B, and C; table of contents of title.</label></referenceItem> <referenceItem role="subtitle"><designator class="centered">Subtitle A—</designator><label class="centered">Provisions Relating to Medicare and Medicaid</label></referenceItem> <referenceItem role="chapter"><designator class="centered">CHAPTER 1—</designator><label class="centered">REIMBURSEMENT CHANGES</label></referenceItem> <referenceItem role="section"><designator>Sec. 2101.</designator> <label>Payments to promote closing and conversion of underutilized hospital facilities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2102.</designator> <label>Adjustment in payment for inappropriate hospital services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2103.</designator> <label>Limitation on medicare and medicaid payments for certain drugs.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2104.</designator> <label>Withholding of payments for certain medicaid providers.</label></referenceItem> <referenceItem role="chapter"><designator class="centered">CHAPTER 2—</designator><label class="centered">OTHER ADMINISTRATIVE CHANGES</label></referenceItem> <referenceItem role="section"><designator>Sec. 2105.</designator> <label>Civil monetary penalties.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2106.</designator> <label>Technical corrections for errors made by the Medicare and Medicaid Amendments of 1980.</label></referenceItem> <referenceItem role="chapter"><designator class="centered">CHAPTER 3—</designator><label class="centered">PROFESSIONAL STANDARDS REVIEW ORGANIZATIONS (PSRO’S)</label></referenceItem> <referenceItem role="section"><designator>Sec. 2111.</designator> <label>Making delegated review optional.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2112.</designator> <label>Assessment of PSRO performance.</label></referenceItem> <page identifier="/us/stat/95/784">95 STAT. 784</page> <referenceItem role="section"><designator>Sec. 2113.</designator> <label>Optional use of PSRO’s under State medicaid plans.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2114.</designator> <label>Secretarial determination in lieu of PSRO certification.</label></referenceItem> <referenceItem role="subtitle"><designator class="centered">Subtitle B—</designator><label class="centered">Provisions Relating to Medicare</label></referenceItem> <referenceItem role="chapter"><designator class="centered">CHAPTER 1—</designator><label class="centered">CHANGES IN SERVICES AND BENEFITS</label></referenceItem> <referenceItem role="section"><designator>Sec. 2121.</designator> <label>Elimination of part. A coverage of alcohol detoxification facility services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2122.</designator> <label>Elimination of occupational therapy as a basis for initial entitlement to home health services.</label></referenceItem> <referenceItem role="chapter"><designator class="centered">CHAPTER 2—</designator><label class="centered">CHANGES IN COINSURANCE, DEDUCTIBLES, AND COPAYMENTS</label></referenceItem> <referenceItem role="section"><designator>Sec. 2131.</designator> <label>Making part A coinsurance current with the year in which services furnished.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2132.</designator> <label>Making part A coinsurance and deductible more current.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2133.</designator> <label>Elimination of carryover from previous year of incurred expenses for meeting the part B deductible.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2134.</designator> <label>Increase in part B deductible.</label></referenceItem> <referenceItem role="chapter"><designator class="centered">CHAPTER 3—</designator><label class="centered">REIMBURSEMENT CHANGES</label></referenceItem> <referenceItem role="section"><designator>Sec. 2141.</designator> <label>Limitation on routine nursing differential.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2142.</designator> <label>Limitation on reasonable cost and reasonable charge for outpatient services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2143.</designator> <label>Limits on reimbursement to hospitals.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2144.</designator> <label>Limits on reimbursement to home health agencies.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2145.</designator> <label>Incentive reimbursement rate for renal dialysis services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2146.</designator> <label>Medicare payments secondary in cases of end stage renal disease services covered under certain group health policies.</label></referenceItem> <referenceItem role="chapter"><designator class="centered">CHAPTER 4—</designator><label class="centered">MISCELLANEOUS CHANGES</label></referenceItem> <referenceItem role="section"><designator>Sec. 2151.</designator> <label>Elimination of unlimited open enrollment.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2152.</designator> <label>Utilization guidelines for provision of home health services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2153.</designator> <label>Repeal of statutory time limitation on agreement with skilled nursing facilities.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2154.</designator> <label>Removal of limitation on number of medicare demonstration projects.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2155.</designator> <label>Repeal of temporary delay in periodic interim payments (PIP).</label></referenceItem> <referenceItem role="section"><designator>Sec. 2156.</designator> <label>Statutory deadlines for implementing AFDC home health aide demonstration projects.</label></referenceItem> <referenceItem role="subtitle"><designator class="centered">Subtitle C—</designator><label class="centered">Provisions Relating to Medicaid</label></referenceItem> <referenceItem role="chapter"><designator class="centered">CHAPTER 1—</designator><label class="centered">CHANGES IN PAYMENTS TO STATES</label></referenceItem> <referenceItem role="section"><designator>Sec. 2161.</designator> <label>Reduction in medicaid payments to States and offset for meeting Federal medicaid expenditure targets.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2162.</designator> <label>Payments to territories.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2163.</designator> <label>Eliminating time period limitation on payment of interest on disputed claims.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2164.</designator> <label>Eliminating Federal matching for certain laboratory tests.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2165.</designator> <label>Study of Federal medical assistance percentage formula and of adjustments of target amounts for Federal medicaid expenditures.</label></referenceItem> <referenceItem role="chapter"><designator class="centered">CHAPTER 2—</designator><label class="centered">INCREASED FLEXIBILITY FOR STATES</label></referenceItem> <referenceItem role="section"><designator>Sec. 2171.</designator> <label>Coverage of, and services for, the medically needy.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2172.</designator> <label>Flexibility in coverage of individuals aged 18–20.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2173.</designator> <label>Reimbursement of hospitals.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2174.</designator> <label>Removal of medicaid reasonable charge limitation.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2175.</designator> <label>Inapplicability and waiver of freedom-of-choice and other State plan requirements.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2176.</designator> <label>Waiver to provide home and community-based services for certain individuals.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2177.</designator> <label>Time limitation for action on requests for plan amendments and waivers.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2178.</designator> <label>Flexibility in HMO and prepaid provider participation in State plans.</label></referenceItem> <page identifier="/us/stat/95/785">95 STAT. 785</page> <referenceItem role="chapter"><designator class="centered">CHAPTER 3—</designator><label class="centered">MISCELLANEOUS CHANGES</label></referenceItem> <referenceItem role="section"><designator>Sec. 2181.</designator> <label>Repeal of EPSDT penalty.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2182.</designator> <label>Flexibility in requiring collection of third-party payments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2183.</designator> <label>Permitting physician assistants and nurse practitioners to provide certain re-certifications.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2184.</designator> <label>Repeal of obsolete authority for medical assistance.</label></referenceItem> <referenceItem role="subtitle"><designator class="centered">Subtitle D—</designator><label class="centered">Maternal and Child Health Services Block Grant</label></referenceItem> <referenceItem role="section"><designator>Sec. 2191.</designator> <label>Short title of subtitle.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2192.</designator> <label>Maternal and child health services block grant.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2193.</designator> <label>Repeats and conforming amendments.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2194.</designator> <label>Effective date; transition.</label></referenceItem> </toc> </content> </section> <subtitle><num value="A">Subtitle A—</num><heading>Provisions Relating to Medicare and Medicaid</heading> <chapter><num value="1">CHAPTER 1—</num><heading>REIMBURSEMENT CHANGES</heading> <section> <heading class="centered smallCaps">payments to promote closing and conversion of underutilized hospital facilities</heading><num value="2101"><inline class="smallCaps">Sec</inline>. 2101. </num><subsection class="inline"><num value="a">(a) </num><content>Part C of title XVIII of the Social Security Act is amended by adding at the end the following new section: <quotedContent> <section> <heading class="centered smallCaps">“payments to promote closing and conversion of underutilized hospital facilities</heading><num value="1884">“<inline class="smallCaps">Sec</inline>. 1884. </num><subsection class="inline"><num value="a">(a) </num><content>Any hospital may file an application with the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395uu">42 USC 1395uu</ref>.</p></sidenote>Secretary (in such form and including such data and information as the Secretary may require) for establishment of a transitional allowance under this title with respect to the closing or conversion of an underutilized hospital facility. The Secretary also may establish procedures, consistent with this section, by which a hospital, before undergoing an actual closure or conversion of a hospital facility, can have a determination made as to whether or not it will be eligible for a transitional allowance under this section with respect to such closure or conversion.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>If the Secretary finds, after consideration of an application under subsection (a), that—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><chapeau>the hospital’s closure or conversion—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>is formally initiated after September 30, 1981,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>is expected to benefit the program under this title by (i) eliminating excess bed capacity, (ii) discontinuing an underutilized service for which there are adequate alternative sources, or (iii) substituting for the underutilized service some other service which is needed in the area, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>is consistent with the findings of an appropriate health planning agency and with any applicable State gram for reduction in the number of hospital beds in the State, and</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>in the case of a complete closure of a hospital—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the hospital is a private nonprofit hospital or a local governmental hospital, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the closure is not for replacement of the hospital,</content></subparagraph> </paragraph> <continuation class="indent0 firstIndent0 fontsize10">the Secretary may include as an allowable cost in the hospital’s reasonable cost (for the purpose of making payments to the hospital under this title) an amount (in this section referred to as a ‘transitional allowance’), as provided in subsection (c).</continuation> </subsection> <page identifier="/us/stat/95/786">95 STAT. 786</page> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Each transitional allowance established shall be reasonably related to the prior or prospective use of the facility involved under this title and shall recognize—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><chapeau>in the case of a facility conversion or closure (other than a complete closure of a hospital)—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>in the case of a private nonprofit or local governmental hospital, that portion of the hospital’s costs attributable to capital assets of the facility which have been taken into account in determining reasonable cost for purposes of determining the amount of payment to the hospital under this title, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>in the case of any hospital, transitional operating cost increases related to the conversion or closure to the extent that such operating costs exceed amounts ordinarily reimbursable under this title; and</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>in the case of complete closure of a hospital, the outstanding portion of actual debt obligations previously recognized as reasonable for purposes of reimbursement under this title, less any salvage value of the hospital.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>A transitional allowance shall be for a period (not to exceed 20 years) specified by the Secretary, except that, in the case of a complete closure described in paragraph (1)(B), the Secretary may provide for a lump-sum allowance where the Secretary determines that such a one-time allowance is more efficient and economical.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>A transitional allowance shall take effect on a date established by the Secretary, but not earlier than the date of completion of the closure or conversion concerned.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>A transitional allowance shall not be considered in applying the limits to costs recognized as reasonable pursuant to the third sentence of subparagraph (A) and subparagraph (L)(i) of section 1861(v)(1) of this Act, or in determining whether the reasonable cost exceeds the customary charges for a service for purposes of determining the amount to be paid to a provider pursuant to sections 1814(b) and 1833(a)(2) of this Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>A hospital dissatisfied with a determination of the Secretary on its application under this section may obtain an informal or formal hearing, at the discretion of the Secretary, by filing (in such form and within such time period as the Secretary establishes) a request for such a hearing. The Secretary shall make a final determination on such application within 30 days after the last day of such hearing.”.</content> </subsection> </section> </quotedContent> </content> </subsection> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396b">42 USC 1396b</ref>.</p></sidenote> <content class="inline">Section 1903 of such Act is amended by inserting after subsection (d) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><content>A State plan approved under this title may include, as a cost with respect to hospital services under the plan under this title, periodic expenditures made to reflect transitional allowances established with respect to a hospital closure or conversion under section <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 785.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395uu">42 USC 1395uu note</ref>.</p></sidenote>1884.”.</content> </subsection> </quotedContent> </content></paragraph> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Notwithstanding section 1884(a) of the Social Security Act, the Secretary of Health and Human Services may not establish under such section transitional allowances with respect to more than 50 hospitals prior to January 1, 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote> <content class="inline">The Secretary of Health and Human Services shall evaluate the effectiveness of the program of transitional allowances established under section 1884 of the Social Security Act and shall, not later than January 1, 1983, report to the Congress on such evaluation and include in such report such recommendations for such legislative changes as he deems appropriate.</content></paragraph> </subsection> <page identifier="/us/stat/95/787">95 STAT. 787</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The amendment made by subsection (a) shall apply only to <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395uu">42 USC 1395uu note</ref>.</p></sidenote>services furnished by a hospital during any accounting year beginning on or after October 1, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">adjustment in payment for inappropriate hospital services</heading><num value="2102"><inline class="smallCaps">Sec</inline>. 2102. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 1861(v)(1)(G)(i) of the Social Security Act is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x</ref>.</p></sidenote>amended by striking out “<quotedText>the hospital had (during the immediately preceding calendar year) an average daily occupancy rate of 80 percent or more</quotedText>” and inserting in lieu thereof “<quotedText>there is not an excess of hospital beds in such hospital and (subject to clause (iv)) there is not an excess of hospital beds in the area of such hospital</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Clause (iv) of section 1861(v)(1)(G) of such Act is amended to read as follows: <quotedContent> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>In determining under clause (i), in the case of a public hospital, whether or not there is an excess of hospital beds in the area of such hospital, such determination shall be made on the basis of only the public hospitals (including the hospital) which are in the area of the hospital and which are under common ownership with that hospital.”.</content> </clause> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>The amendments made by subsection (a) shall apply to <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote>services provided on or after the first day of the first month beginning after the date of the enactment of this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>For amendments respecting reimbursement for inappropriate hospital services under medicaid, see section 2173 of this subtitle.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">limitation on medicare and medicaid payments for certain drugs</heading><num value="2103"><inline class="smallCaps">Sec</inline>. 2103. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 1862 of the Social Security Act is amended <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395y">42 USC 1395y</ref>.</p></sidenote>by inserting after subsection (b) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><chapeau>No payment may be made under part B for any expenses incurred for—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><chapeau>a drug product—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>which is described in section 107(c)(3) of the Drug Amendments of 1962, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s321">21 USC 321 note</ref>.</p></sidenote></content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>which may be dispensed only upon prescription,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>for which the Secretary has issued a notice of an opportunity for a hearing under subsection (e) of section 505 of the Federal Food, Drug, and Cosmetic Act on a proposed <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t21/s355">21 USC 355</ref>.</p></sidenote>order of the Secretary to withdraw approval of an application for such drug product under such section because the Secretary has determined that the drug is less than effective for all conditions of use prescribed, recommended, or suggested in its labeling, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>for which the Secretary has not determined there is a compelling justification for its medical need; and</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>any other drug product—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>which is identical, related, or similar (as determined in accordance with section 310.6 of title 21 of the Code of Federal Regulations) to a drug product described in paragraph (1), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>for which the Secretary has not determined there is a compelling justification for its medical need,</content></subparagraph> </paragraph> <continuation class="indent0 firstIndent0 fontsize10">until such time as the Secretary withdraws such proposed order.”.</continuation> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The amendment made by paragraph (1) shall apply with respect <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395y">42 USC 1395y note</ref>.</p></sidenote>to expenses incurred on or after October 1, 1981.</content></paragraph> </subsection> <page identifier="/us/stat/95/788">95 STAT. 788</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396b">42 USC 1396b</ref>.</p></sidenote> <content class="inline">Section 1903(i) of such Act is amended by striking out the period at the end of paragraph (4) and inserting in lieu thereof “<quotedText>; or</quotedText>” and by adding after such paragraph the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>with respect to any amount expended for any drug product for which payment may not be made under part B of title XVIII <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 787.</p><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396b">42 USC 1396b note</ref>.</p></sidenote>because of section 1862(c).”.</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The amendment made by paragraph (1) shall apply to amounts expended on or after October 1, 1981.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">withholding of payments for certain medicaid providers</heading><num value="2104"><inline class="smallCaps">Sec</inline>. 2104. </num><content>Part C of title XVIII of the Social Security Act is amended by adding after section 1884 (added by section 2101 of this subtitle) the following new section: <quotedContent> <section> <heading class="centered smallCaps">“withholding of payments for certain medicaid providers</heading><num value="1885">“<inline class="smallCaps">Sec</inline>. 1885. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395vv">42 USC 1395vv</ref>.</p></sidenote> <chapeau class="inline">The Secretary may adjust, in accordance with this section, payments under parts A and B to any institution which has in effect an agreement with the Secretary under section 1866, and any person who has accepted payment on the basis of an assignment <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395u">42 USC 1395u</ref>.</p></sidenote>under section 1842(b)(3)(B)(ii), where such institution or person—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>has (or previously had) in effect an agreement with a State agency to furnish medical care and services under a State plan <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396">42 USC 1396</ref>.</p></sidenote>approved under title XIX, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>from which (or from whom) such State agency (A) has been unable to recover overpayments made under the State plan, or (B) has been unable to collect the information necessary to enable it to determine the amount (if any) of the overpayments made to such institution or person under the State plan.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>The Secretary shall by regulation provide procedures for implementation of this section, which procedures shall—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>assure that the authority under this section is exercised only on behalf of a State agency which demonstrates to the Secretary’s satisfaction that it has provided adequate notice of a determination or of a need for information, and an opportunity to appeal such determination or to provide such information,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>determine the amount of the payment to which the institution or person would otherwise be entitled under this title which shall be treated as a setoff against overpayments under title XIX, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>assure the restoration to the institution or person of amounts withheld under this section which are ultimately determined to be in excess of overpayments under title XIX and to which the institution or person would otherwise be entitled under this title.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Notwithstanding any other provision of this Act, from the trust <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395i/1395t">42 USC 1395i, 1395t</ref>.</p></sidenote>funds established under sections 1817 and 1841, as appropriate, the Secretary shall pay to the appropriate State agency amounts recovered under this section to offset the State agency’s overpayment under title XIX. Such payments shall be accounted for by the State agency as recoveries of overpayments under the State plan.”.</content> </subsection> </section> </quotedContent> </content> </section> </chapter> <page identifier="/us/stat/95/789">95 STAT. 789</page> <chapter><num value="2">CHAPTER 2—</num><heading>OTHER ADMINISTRATIVE CHANGES</heading> <section> <heading class="centered smallCaps">civil monetary penalties</heading><num value="2105"><inline class="smallCaps">Sec</inline>. 2105. </num><subsection class="inline"><num value="a">(a) </num><content>Part A of title XI of the Social Security Act is amended by inserting after section 1128 the following new section: <quotedContent> <section> <heading class="centered smallCaps">“civil monetary penalties</heading><num value="1128A">“<inline class="smallCaps">Sec</inline>. 1128A. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Any person (including an organization, agency, or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320a–7a">42 USC 1320a–7a</ref>.</p></sidenote>other entity) that presents or causes to be presented to an officer, employee, or agent of the United States, or of any department or agency thereof, or of any State agency (as defined in subsection (h)(1)), a claim (as defined in subsection (h)(2)) that the Secretary determines—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><chapeau>is for a medical or other item or service—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>that the person knows or has reason to know was not provided as claimed, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>payment for which may not be made under the program under which such claim was made, pursuant to a determination by the Secretary under section 1128, 1160(b), 1862(d), or 1866(b)(2), or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2619">94 Stat. 2619</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320a–7/1320c–9/1395y/1395cc">42 USC 1320a–7, 1320c–9, 1395y, 1395cc</ref>.</p></sidenote></content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>is submitted in violation of an agreement between the person and the United States or a State agency,</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">shall be subject, in addition to any other penalties that may be prescribed by law, to a civil money penalty of not more than $2,000 for each item or service. In addition, such a person shall be subject to an assessment of not more than twice the amount claimed for each such item or service in lieu of damages sustained by the United States or a State agency because of such claim.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary may initiate a proceeding to determine whether to impose a civil money penalty or assessment under subsection (a) only as authorized by the Attorney General pursuant to procedures agreed upon by them.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary shall not make a determination adverse to any <sidenote><p class="indent0 firstIndent0 fontsize8">Notice and hearing.</p></sidenote>person under subsection (a) until the person has been given written notice and an opportunity for the determination to be made on the record after a hearing at which the person is entitled to be represented by counsel, to present witnesses, and to cross-examine witnesses against the person.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><chapeau>In determining the amount or scope of any penalty or assessment imposed pursuant to subsection (a), the Secretary shall take into account—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the nature of claims and the circumstances under which they were presented,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the degree of culpability, history of prior offenses, and financial condition of the person presenting the claims, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>such other matters as justice may require.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>Any person adversely affected by a determination of the Secretary under this section may obtain a review of such determination in the United States Court of Appeals for the circuit in which the person resides, or in which the claim was presented, by filing in such court (within sixty days following the date the person is notified of the Secretary’s determination) a written petition requesting that the determination be modified or set aside. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Secretary, and thereupon the Secretary shall file in the Court the record in the proceeding as provided in section 2112 of title 28, United States Code. <page identifier="/us/stat/95/790">95 STAT. 790</page>Upon such filing, the court shall have jurisdiction of the proceeding and of the question determined therein, and shall have the power to make and enter upon the pleadings, testimony, and proceedings set forth in such record a decree affirming, modifying, remanding for further consideration, or setting aside, in whole or in part, the determination of the Secretary and enforcing the same to the extent that such order is affirmed or modified. No objection that has not been urged before the Secretary shall be considered by the court, unless the failure or neglect to urge such objection shall be excused because of extraordinary circumstances. The findings of the Secretary with respect to questions of fact, if supported by substantial evidence on the record considered as a whole, shall be conclusive. If any party shall apply to the court for leave to adduce additional evidence and shall show to the satisfaction of the court that such additional evidence is material and that there were reasonable grounds for the failure to adduce such evidence in the hearing before the Secretary, the court may order such additional evidence to be taken before the Secretary and to be made a part of the record. The Secretary may modify his findings as to the facts, or make new findings, by reason of additional evidence so taken and filed, and he shall file with the court such modified or new findings, which findings with respect to questions of fact, if supported by substantial evidence on the record considered as a whole, shall be conclusive, and his recommendations, if any, for the modification or setting aside of his original order. Upon the filing of the record with it, the jurisdiction of the court shall be exclusive and its judgment and decree shall be final, except that the same shall be subject to review by the Supreme Court of the United States, as provided in section 1254 of title 28, United States Code.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><chapeau>Civil money penalties and assessments imposed under this section may be compromised by the Secretary and may be recovered in a civil action in the name of the United States brought in United States district court for the district where the claim was presented, or where the claimant resides, as determined by the Secretary. Amounts recovered under this section shall be paid to the Secretary and disposed of as follows:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><subparagraph class="inline"><num value="A">(A) </num><content>In the case of amounts recovered arising out of a claim <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396">42 USC 1396</ref>.</p></sidenote>under title XIX, there shall be paid to the State agency an amount equal to the State’s share of the amount paid by the State agency for such claim.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>In the case of amounts recovered arising out of a claim <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s701">42 USC 701</ref>.</p></sidenote>under an allotment to a State under title V, there shall be paid to the State agency an amount equal to three-sevenths of the amount recovered.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Such portion of the amounts recovered as is determined to have been paid out of the trust funds under sections 1817 and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395i/1395t">42 USC 1395i, 1395t</ref>.</p></sidenote>1841 shall be repaid to such trust funds.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The remainder of the amounts recovered shall be deposited as miscellaneous receipts of the Treasury of the United States.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">The amount of such penalty or assessment, when finally determined, or the amount agreed upon in compromise, may be deducted from any sum then or later owing by the United States or a State agency to the person against whom the penalty or assessment has been assessed.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><content>A determination by the Secretary to impose a penalty or assessment under subsection (a) shall be final upon the expiration of the sixty-day period referred to in subsection (d). Matters that were raised or that could have been raised in a hearing before the Secretary or in an appeal pursuant to subsection (d) may not be raised <page identifier="/us/stat/95/791">95 STAT. 791</page>as a defense to a civil action by the United States to collect a penalty or assessment assessed under this section.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><content>Whenever the Secretary’s determination to impose a penalty or assessment under subsection (a) becomes final, he shall notify the appropriate State or local medical or professional organization, and the appropriate Professional Standards Review Organization, and the appropriate State or local licensing agency or organization (including the agency specified in section 1864(a) and 1902(a)(33)) that <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395aa/1396a">42 USC 1395aa, 1396a</ref>.</p></sidenote>such a penalty or assessment has become final and the reasons therefor.</content> </subsection> <subsection class="indent0 fontsize10"><num value="h">“(h) </num><chapeau>For the purposes of this subsection: <sidenote><p class="indent0 firstIndent0 fontsize8">Definitions.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>The term ‘State agency’ means the agency established or designated to administer or supervise the administration of the State plan under title XIX of this Act or designated to administer <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396">42 USC 1396</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s701">42 USC 701</ref>.</p></sidenote>the State’s program under title V of this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>The term ‘claim’ means an application submitted by—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>a provider of services or other person, agency, or organization that furnishes an item or service under title XVIII of this Act, or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395">42 USC 1395</ref>.</p></sidenote></content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>a person, agency, or organization that furnishes an item or service for which medical assistance is provided under title XIX of this Act, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>a person, agency, or organization that provides an item or service for which payment is made under title V of this Act or from an allotment to a State under such title,</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">to the United States or a State agency, or agent thereof, for payment for health care services under title XVIII or XIX of this Act or for any item or service under title V of this Act.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The term ‘item or service’ includes (A) any particular item, device, medical supply, or service claimed to have been provided to a patient and listed in an itemized claim for payment, and (B) in the case of a claim based on costs, any entry in the cost report, books of account or other documents supporting such claim.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>The term ‘agency of the United States’ includes any contractor acting as a fiscal intermediary, carrier, or fiscal agent or any other claims processing agent for a health insurance or medical services program under title XVIII or XIX of this Act.”.</content></paragraph> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 1128 of such Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2619">94 Stat. 2619</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320a–7">42 USC 1320a–7</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>, for such period as he may deem appropriate,</quotedText>” in subsection (a)(1),</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>subsection (a)</quotedText>” in subsection (c) and inserting in lieu thereof “<quotedText>subsection (a) or (b)</quotedText>”,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by redesignating subsections (b) and (c) as subsections (c) and (d), respectively, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by inserting after subsection (a) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>Whenever the Secretary makes a final determination to impose a civil money penalty or assessment against a person (including an organization, agency, or other entity) under section 1128A relating to a claim under title XVIII or XIX, the Secretary—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>may bar the person from participation in the program under title XVIII, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>shall promptly notify each appropriate State agency administering or supervising the administration of a State plan approved under title XIX of the fact and circumstances of such determination, and (except as provided in subparagraph (B)) may require each such agency to bar the person from participation in the program established by such plan for such period as he shall <page identifier="/us/stat/95/792">95 STAT. 792</page>specify, which in the case of an individual shall be the period established pursuant to paragraph (1), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>may waive the requirement of subparagraph (A) to bar a person from participation in such program where he receives and approves a request for such waiver with respect to that person from the State agency referred to in that subparagraph.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a</ref>.</p></sidenote> <content class="inline">Section 1902(a)(39) of such Act is amended by striking out “<quotedText>individual</quotedText>” and inserting in lieu thereof “<quotedText>person</quotedText>” each place it appears.</content> </subsection> </section> <section> <heading class="centered smallCaps">technical corrections for errors made by the medicare and medicaid amendments of 1980</heading><num value="2106"><inline class="smallCaps">Sec</inline>. 2106. </num><subsection class="inline"><num value="a">(a) </num><content>Section 1833(a)(2) of the Social Security Act (as amended by section 942 of the Medicare and Medicaid Amendments <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2641">94 Stat. 2641</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395<i>l</i></ref>.</p></sidenote>of 1980, P.L. 96–499) is amended by amending subparagraphs (A) and (B) to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><chapeau>with respect to home health services and to items and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x</ref>.</p></sidenote>services described in section 1861(s)(10), the lesser of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the reasonable cost of such services, as determined under section 1861(v), or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the customary charges with respect to such services,</content> </clause> <continuation class="indent0 firstIndent0 fontsize10">or, if such services are furnished by a public provider of services free of charge or at nominal charges to the public, the amount <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395f">42 USC 1395f</ref>.</p></sidenote>determined in accordance with section 1814(b)(2);</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>with respect to other services (except those described in subparagraph (C) of this paragraph)—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><chapeau>the lesser of—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>the reasonable cost of such services, as determined under section 1861(v), or</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>the customary charges with respect to such services,</content> </subclause> <continuation class="indent0 firstIndent0 fontsize10">less the amount a provider may charge as described in clause <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395cc">42 USC 1395cc</ref>.</p></sidenote>(ii) of section 1866(a)(2)(A), but in no case may the payment for such other services exceed 80 percent of such reasonable cost, or</continuation> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>if such services are furnished by a public provider of services free of charge or at nominal charges to the public, 80 percent of the amount determined in accordance with section 1814(b)(2), or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>if (and for so long as) the conditions described in section 1814(b)(3) are met, the amounts determined under the reimbursement system described in such section; and”.</content> </clause> </subparagraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395n">42 USC 1395n</ref>.</p></sidenote> <chapeau class="inline">Section 1835(a)(2) of such Act is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by adding “<quotedText>and</quotedText>” at the end of subparagraph (D), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>; and</quotedText>” at the end of subparagraph (E) and inserting in lieu thereof a period.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395q">42 USC 1395q</ref>.</p></sidenote> <content class="inline">The paragraph after section 1838(b) of such Act is amended by striking out “<quotedText>and such notice shall not be considered a disenrollment <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395p">42 USC 1395p</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396b">42 USC 1396b</ref>.</p></sidenote>for the purposes of section 1837(b)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Section 1903(n) of such Act is amended by striking out “<quotedText>of this section</quotedText>” after “<quotedText>section 1866</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395<i>l</i> note</ref>.</p></sidenote> <content class="inline">The amendment made by subsection (a) is effective as of December 5, 1980, and the amendment made by subsection (b)(2) is effective as of April 1, 1981.</content> </subsection> </section> </chapter> <page identifier="/us/stat/95/793">95 STAT. 793</page> <chapter><num value="3">CHAPTER 3—</num><heading>PROFESSIONAL STANDARDS REVIEW ORGANIZATIONS (PSRO’S)</heading> <section> <heading class="centered smallCaps">making delegated review optional</heading><num value="2111"><inline class="smallCaps">Sec</inline>. 2111. </num><content>Section 1155(e) of the Social Security Act is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–4">42 USC 1320c–4</ref>.</p></sidenote>striking out “<quotedText>shall utilize</quotedText>” and inserting in lieu thereof “<quotedText>may utilize</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">assessment of psro performance</heading><num value="2112"><inline class="smallCaps">Sec</inline>. 2112. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 1154 of the Social Security Act is amended <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–3">42 USC 1320c–3</ref>.</p></sidenote>by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall, not later than September 30, 1981, identify and specify those requirements imposed by the Secretary with respect to the performance of Professional Standards Review Organizations which the Secretary will use for the assessment of the performance of such Organizations under this subsection. Such requirements shall include requirements relating to the effectiveness of such Organizations in (A) monitoring the quality of patient care, (B) reducing unnecessary utilization, and (C) managing its activities efficiently.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Based on such requirements, the Secretary shall assess and determine the relative performance of each of such Organizations designated, conditionally or otherwise, as of September 30, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>If the Secretary determines that such an Organization has a relatively ineffective or inefficient performance, the Secretary may refuse to renew an agreement with the Organization under this part, except that, in exercising the Secretary’s authority under this paragraph in fiscal year 1982, the sum of the number of Organizations with respect to which agreements are not renewed under this paragraph and under any other provision of this Act in the fiscal year may not exceed 30 percent of the number of such Organizations with agreements under this part on May 1, 1981.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num><chapeau>Section 1152(d) of such Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–1">42 USC 1320c–1</ref>.</p></sidenote></chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by striking out “<quotedText>for a term of 12 months</quotedText>” and inserting in lieu thereof “<quotedText>for a term of not longer than 12 months</quotedText>”;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by striking out “<quotedText>at such time and upon such reasonable notice to the organization as may be prescribed in regulations</quotedText>” and inserting in lieu thereof “<quotedText>upon 90 days notice to the organization</quotedText>”; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>by striking out “<quotedText>(after providing such organization with an opportunity for a formal hearing on the matter)</quotedText>”.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Sections 1152(d) and 1154(d) of such Act are each amended by adding at the end the following sentence: “A termination of an agreement by the Secretary under this subsection shall not be subject to judicial review.”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>The amendment made by subparagraph (A)(iii) shall apply to <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–1">42 USC 1320c–1 note</ref>.</p></sidenote>agreements entered into on or after the date of the enactment of this Act.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>The Secretary of Health and Human Services shall, not later <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–3">42 USC 1320c–3 note</ref>.</p></sidenote>than September 30, 1982, report to the Congress on his assessment (under section 1154(g) of the Social Security Act) of the relative performance of Professional Standards Review Organizations and on any determinations made not to renew agreements with such Organizations on the basis of such performance.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>The first sentence of subsection (b) of section 1154 of such Act <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–3">42 USC 1320c–3</ref>.</p></sidenote>is amended—</chapeau> <page identifier="/us/stat/95/794">95 STAT. 794</page> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>(other than ancillary, ambulatory care, and long-term care services)</quotedText>” and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>under subsection (f)(2) or subsection (f)(4)</quotedText>” and inserting in lieu thereof “<quotedText>under subsection (f)</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Subsection (f) of such section is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out the parenthetical phrase in paragraph (1);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out paragraphs (2) and (3);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by redesignating paragraph (4) as paragraph (2) and amending it to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Where the Secretary finds that the review of particular health care services is cost-effective or yields other significant benefits, the Secretary may require Professional Standards Review Organizations (either generally or under such conditions and circumstances as the Secretary may specify) to review such services under this part.”; and</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>by striking out the parenthetical phrase in paragraph (5) and redesignating such paragraph as paragraph (3).</content></subparagraph> </paragraph> </subsection> </section> <section> <heading class="centered smallCaps">optional use of psro’s under state medicaid plans</heading><num value="2113"><inline class="smallCaps">Sec</inline>. 2113. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c">42 USC 1320c</ref>.</p></sidenote> <chapeau class="inline">Section 1151 of the Social Security Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>under this Act</quotedText>” and inserting in lieu thereof “<quotedText>under title XVIII of this Act</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>the Social Security Act</quotedText>” and inserting in lieu thereof “<quotedText>title XVIII of this Act</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–1">42 USC 1320c–1</ref>.</p></sidenote> <content class="inline">Section 1152(e) of such Act is amended by inserting “<quotedText>title XVIII of</quotedText>” before “<quotedText>this Act</quotedText>” each place it appears.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 1152 of such Act is amended by striking out subsection <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–3">42 USC 1320c–3</ref>.</p></sidenote>(h), and section 1154 of such Act is amended by striking out subsection (e).</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–4">42 USC 1320c–4</ref>.</p></sidenote> <content class="inline">Section 1155(a) of such Act is amended by inserting “<quotedText>title XVIII of</quotedText>” before “<quotedText>this Act</quotedText>” each place it appears in paragraphs (1) and (2).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 1155(a)(1) of such Act is amended by adding after and below subparagraph (C) the following new sentence: <quotedContent> <p class="indent0 firstIndent0 fontsize10">“Each agreement with an Organization under this part shall require the Organization, if requested by a State with a plan approved under title XIX, to enter into a contract with the State, for the performance of review functions in the case of health care services and items provided under such State plan under terms and conditions similar to those contained in the agreement between the Organization and the Secretary under this part.”.</p> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Section 1155(a) of such Act is amended by striking out paragraph (7).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Section 1155(e)(1) of such Act is amended by striking out “<quotedText>, or intermediate care facility, as defined in section 1905(c)</quotedText>” and “or intermediate care facility”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–7">42 USC 1320c–7</ref>.</p></sidenote> <content class="inline">Section 1158(a) of such Act is amended by striking out “<quotedText>under any title of this Act (other than title V)</quotedText>” and inserting in lieu thereof “<quotedText>under title XVIII</quotedText>” and by striking out “<quotedText>or any program established pursuant thereto</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Section 1158(c) of such Act is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>(subject to sections 1159, 1171(a)(1), and 1171(d)(3)) for purposes of payment under this Act</quotedText>” and inserting in lieu thereof “<quotedText>(subject to section 1159) for purposes of payment under title XVIII</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>, or single State agencies</quotedText>” and all that follows through “under title XIX”.</content></subparagraph> </paragraph> <page identifier="/us/stat/95/795">95 STAT. 795</page> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Section 1158(d) of such Act is amended by striking out “<quotedText>or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–7">42 USC 1320c–7</ref>.</p></sidenote>section 1902(h)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>Section 1159(a) of such Act is amended by striking out “<quotedText>under <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–8">42 USC 1320c–8</ref>.</p></sidenote>this Act (other than title V)</quotedText>” and inserting in lieu thereof “<quotedText>under title XVIII</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 1160(a)(1) of such Act is amended by striking out <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–9">42 USC 1320c–9</ref>.</p></sidenote>“<quotedText>under this Act</quotedText>” the first place it appears and inserting in lieu thereof “<quotedText>under title XVIII (or under a State plan approved under title XIX, where the services furnished by the person are subject to review under a contract between the State and an Organization under section 1155(a))</quotedText>”, and by striking out “<quotedText>under this Act</quotedText>” the second place it appears and inserting in lieu thereof “<quotedText>under such title (or such State plan)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 1160(b)(1) of such Act is amended by striking out “<quotedText>under this Act</quotedText>” and inserting in lieu thereof “<quotedText>under title XVIII</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><content>Section 1162(e)(1) of such Act is amended by striking out “<quotedText>any <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–11">42 USC 1320c–11</ref>.</p></sidenote>program established by or pursuant to this Act</quotedText>” and inserting in lieu thereof “<quotedText>title XVIII</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num><content>Section 1164 of such Act is repealed. <sidenote><p class="indent0 firstIndent0 fontsize8">Repeal.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–13">42 USC 1320c–13</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–17">42 USC 1320c–17</ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="j">(j) </num><chapeau>Section 1168 of such Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>and</quotedText>” at the end of paragraph (a);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>and</quotedText>” at the end of paragraph (b);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out paragraph (c) and redesignating paragraphs (a) and (b) as paragraphs (1) and (2), respectively;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by striking out “<quotedText>subsections (a), (b), and (c)</quotedText>” and inserting in lieu thereof “<quotedText>paragraphs (1) and (2)</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>by amending the second sentence to read as follows: “The Secretary shall make such transfers of moneys between such funds as may be appropriate to settle accounts between them.”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>by striking out the second parenthetical phrase in the third sentence.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="k">(k) </num><content>Section 1171 of such Act is repealed. <sidenote><p class="indent0 firstIndent0 fontsize8">Repeal.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–20">42 USC 1320c–20</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–21">42 USC 1320c–21</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a</ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="l">(l) </num><content>Section 1172(4) of such Act is amended by striking out “<quotedText>V, XI, XVIII, and XIX</quotedText>” and inserting in lieu thereof “<quotedText>XI and XVIII</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="m">(m) </num><content>Section 1902 of such Act is amended by inserting after subsection (c) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>If a State contracts with a Professional Standards Review Organization designated, conditionally or otherwise, under part B of title XI for the performance of medical or utilization review functions <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c">42 USC 1320c</ref>.</p></sidenote>required under this title of a State plan with respect to specific services or providers (or services or providers in a geographic area of the State), such requirements shall be deemed to be met for those services or providers (or services or providers in that area) by delegation to such Organization (or Organizations) under the contract of the State’s authority to conduct such review activities if the contract provides for the performance of activities not inconsistent with part B of title XI and provides for such assurances of satisfactory performance by such Organization (or Organizations) as the Secretary may prescribe.”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="n">(n) </num><chapeau>Section 1903(a)(3) of such Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396b">42 USC 1396b</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>plus</quotedText>” at the end of subparagraph (B) and inserting in lieu thereof “<quotedText>and</quotedText>”, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding after subparagraph (B) the following new subparagraph: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>75 per centum of the sums expended with respect to costs incurred during such quarter (as found necessary by the Secretary for the proper and efficient administration of <page identifier="/us/stat/95/796">95 STAT. 796</page>the State plan) as are attributable to the performance of medical and utilization review by a Professional Standards Review Organization under a contract entered into under <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 795.</p><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c">42 USC 1320c note</ref>.</p></sidenote>section 1902(d); plus”</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="o">(o) </num><content>The amendments made by this section apply to agreements with Professional Standards Review Organizations entered into on or after October 1, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">secretarial determination in lieu of psro certification</heading><num value="2114"><inline class="smallCaps">Sec</inline>. 2114. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x</ref>.</p></sidenote> <content class="inline">Section 1861(v)(1)(G)(i) of the Social Security Act is amended by striking out “<quotedText>an organization or agency with review responsibility as is otherwise provided for under part A of title XI</quotedText>” and inserting in lieu thereof “<quotedText>the Secretary or such agent as the Secretary may designate</quotedText>”.</content> </section> </chapter> </subtitle> <subtitle><num value="B">Subtitle B—</num><heading>Provisions Relating to Medicare</heading> <chapter><num value="1">CHAPTER 1—</num><heading>CHANGES IN SERVICES AND BENEFITS</heading> <section> <heading class="centered smallCaps">elimination of part a coverage of alcohol detoxification facility services</heading><num value="2121"><inline class="smallCaps">Sec</inline>. 2121. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395d">42 USC 1395d</ref>.</p></sidenote> <chapeau class="inline">Section 1812(a) of the Social Security Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>and</quotedText>” at the end of paragraph (2),</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>; and</quotedText>” at the end of paragraph (3) and inserting in lieu thereof a period, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out paragraph (4).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395f">42 USC 1395f</ref>.</p></sidenote> <chapeau class="inline">Section 1814(a)(2) of such Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>or</quotedText>” at the end of subparagraph (D),</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>or</quotedText>” at the end of subparagraph (E), and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out subparagraph (F).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x</ref>.</p></sidenote> <content class="inline">Section 1861(u) of such Act is amended by striking out “<quotedText>detoxification facility,</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Subsection (bb) of section 1861 of such Act is repealed.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–3">42 USC 1320c–3</ref>.</p></sidenote> <content class="inline">The first sentence of section 1154(b) of such Act is amended striking out “<quotedText>and to review of alcohol detoxification facility services</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–4">42 USC 1320c–4</ref>.</p></sidenote> <content class="inline">Section 1155 of such Act is amended by striking out subsection (i).</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–7">42 USC 1320c–7</ref>.</p></sidenote> <chapeau class="inline">Section 1158 of such Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>subsections (d) and (e)</quotedText>” in subsection (a) and inserting in lieu thereof “<quotedText>subsection (d)</quotedText>”, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out subsection (e).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><content>Section 931 of the Medicare and Medicaid Amendments of 1980 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395ll">42 USC 1395<i>ll</i> note</ref>.</p></sidenote>(P.L. 96–499; 94 Stat. 2634) is amended by striking out subsection (f) (relating to a study of medicare coverage of certain additional detoxification-related services).</content> </subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320c–3">42 USC 1320c–3 note</ref>.</p></sidenote> <content class="inline">The amendments made by this section (other than by subsection (h)) shall apply to services furnished in detoxification facilities for inpatient stays beginning on or after the tenth day after the date of the enactment of this Act.</content> </subsection> </section> <section> <heading class="centered smallCaps">elimination of occupational therapy as a basis for initial entitlement to home health services</heading><num value="2122"><inline class="smallCaps">Sec</inline>. 2122. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395f/1395n">42 USC 1395f, 1395n</ref>.</p></sidenote> <content class="inline">Sections 1814(a)(2)(D) and 1835(a)(2)(A) of the Social Security Act are each amended by striking out “<quotedText>needed skilled <page identifier="/us/stat/95/797">95 STAT. 797</page>nursing care on an intermittent basis, or physical, occupational, or speech therapy</quotedText>” and inserting in lieu thereof “<quotedText>needs or needed skilled nursing care on an intermittent basis or physical or speech therapy or, in the case of an individual who has been furnished home health services based on such a need and who no longer has such a need for such care or therapy, continues or continued to need occupational therapy</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The amendments made by this section shall apply to services <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395f">42 USC 1395f note</ref>.</p></sidenote>furnished pursuant to plans of treatment implemented after the third month beginning after the date of the enactment of this Act.</content> </subsection> </section> </chapter> <chapter><num value="2">CHAPTER 2—</num><heading>CHANGES IN COINSURANCE, DEDUCTIBLES, AND COPAYMENTS</heading> <section> <heading class="centered smallCaps">making part a coinsurance current with the year in which services furnished</heading><num value="2131"><inline class="smallCaps">Sec</inline>. 2131. </num><subsection class="inline"><num value="a">(a) </num><content>The first sentence of section 1813(b)(2) of the Social Security Act is amended by striking out “<quotedText>any spell of illness beginning</quotedText>” <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395e">42 USC 1395e</ref>.</p></sidenote>and inserting in lieu thereof “<quotedText>any inpatient hospital services or post-hospital extended care services furnished</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The amendment made by subsection (a) is effective for inpatient <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395e">42 USC 1395e note</ref>.</p></sidenote>hospital services or post-hospital extended care services furnished on or after January 1, 1982. note.</content> </subsection> </section> <section> <heading class="centered smallCaps">making part a coinsurance and deductible more current</heading><num value="2132"><inline class="smallCaps">Sec</inline>. 2132. </num><subsection class="inline"><num value="a">(a) </num><content>Section 1813(b)(2) of the Social Security Act is amended by striking out “<quotedText>$40</quotedText>” and inserting in lieu thereof “<quotedText>$45</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The amendment made by subsection (a) shall apply to inpatient <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395e">42 USC 1395e note</ref>.</p></sidenote>hospital services and post-hospital extended care services furnished in calendar years beginning with calendar year 1982.</content> </subsection> </section> <section> <heading class="centered smallCaps">elimination of carryover from previous year of incurred expenses for meeting the part b deductible</heading><num value="2133"><inline class="smallCaps">Sec</inline>. 2133. </num><subsection class="inline"><num value="a">(a) </num><content>The first sentence of section 1833(b) of the Social Security Act is amended by striking out “<quotedText>the amount of the deductible <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395<i>l</i></ref>.</p></sidenote>for such calendar year</quotedText>” and all that follows through “<quotedText>(2)</quotedText>”, and by redesignating clauses (3) and (4) as clauses (2) and (3), respectively.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The amendments made by subsection (a) first apply to the <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395<i>l</i> note</ref>.</p></sidenote>deductible for calendar year 1982 with respect to expenses incurred on or after October 1, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">increase in part b deductible</heading><num value="2134"><inline class="smallCaps">Sec</inline>. 2134. </num><subsection class="inline"><num value="a">(a) </num><content>Section 1833(b) of the Social Security Act is amended by striking out “<quotedText>$60</quotedText>” and inserting in lieu thereof “<quotedText>$75</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The amendment made by subsection (a) shall take effect on <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395l">42 USC 1395<i>l</i> note</ref>.</p></sidenote>January 1, 1982, and shall apply to the deductible for calendar years beginning with 1982.</content> </subsection> </section> </chapter> <chapter><num value="3">CHAPTER 3—</num><heading>REIMBURSEMENT CHANGES</heading> <section> <heading class="centered smallCaps">limitation on routine nursing differential</heading><num value="2141"><inline class="smallCaps">Sec</inline>. 2141. </num><subsection class="inline"><num value="a">(a) </num><content>Section 1861(v)(1) of the Social Security Act is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x</ref>.</p></sidenote>amended by adding at the end thereof the following new subparagraph: <page identifier="/us/stat/95/798">95 STAT. 798</page> <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="J">“(J) </num><content>Such regulations shall provide that an inpatient routine nursing salary cost differential shall be allowable as a reimbursable cost of hospitals, at a rate not to exceed 5 percent, to be applied under the same methodology used for the nursing salary cost differential for the month of April 1981.”.</content></subparagraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Study.</p></sidenote> <content class="inline">The Comptroller General shall conduct a study to determine the extent (if any) to which the average cost of efficiently providing routine inpatient nursing care to individuals entitled to benefits <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395">42 USC 1395</ref>.</p></sidenote>under title XVIII of the Social Security Act exceeds the average cost of providing such care to other patients. The Comptroller General shall submit a final report with respect to the results of such study to the Congress within six months after the date of the enactment of this Act.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote> <content class="inline">Subject to paragraph (2), the amendment made by subsection (a) shall apply to cost reporting periods ending after September 30, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>In the case of a cost reporting period beginning before October 1, 1981, any reduction in payments resulting from the amendment made by subsection (a) shall be imposed only in proportion to the part of the period that occurs after September 30, 1981.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">limitation on reasonable cost and reasonable charge for outpatient services</heading><num value="2142"><inline class="smallCaps">Sec</inline>. 2142. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x</ref>.</p></sidenote> <content class="inline">Section 1861(v)(1) of the Social Security Act is further amended by adding after subparagraph (J) (added by section 2141 of this subtitle) the following new subparagraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="K">“(K) </num><content>The Secretary shall issue regulations that provide, to the extent feasible, for the establishment of limitations on the amount of any costs or charges that shall be considered reasonable with respect to services provided on an outpatient basis by hospitals (other than bona fide emergency services provided in an emergency room) or clinics (other than rural health clinics), which are reimbursed on a cost basis or on the basis of cost related charges, and by physicians utilizing such outpatient facilities. Such limitations shall be reasonably related to the charges in the same area for similar services provided in physicians’ offices. Such regulations shall provide for exceptions to such limitations in cases where similar services are not generally available in physicians’ offices in the area to individuals entitled to benefits under this title.”.</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395u">42 USC 1395u</ref>.</p></sidenote> <content class="inline">Section 1842(b)(3) of such Act is amended by adding at the end thereof the following new sentence: “The amount of any charges for outpatient services which shall be considered reasonable shall be subject to the limitations established by regulations issued by the Secretary pursuant to section 1861(v)(1)(K).”.</content> </subsection> </section> <section> <heading class="centered smallCaps">limits on reimbursement to hospitals</heading><num value="2143"><inline class="smallCaps">Sec</inline>. 2143. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Supra</i>.</p></sidenote> <content class="inline">Section 1861(v)(1) of the Social Security Act is further amended by adding after subparagraph (K) (added by section 2142 of this subtitle) the following new subparagraph: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="L">“(L) </num><content>The Secretary, in determining the amount of the payments that may be made under this title with respect to routine operating costs for the provision of general inpatient hospital services, may not recognize as reasonable (in the efficient delivery of health services) routine operating costs for the provision of general inpatient hospital services by a hospital to the extent these costs exceed 108 percent of the mean of such routine operating costs per diem for hospitals, or, in <page identifier="/us/stat/95/799">95 STAT. 799</page>the judgment of the Secretary, such lower percentage or such comparable or lower limit as the Secretary may determine. The Secretary may provide for such exemptions and exceptions to such limitation as he deems appropriate.”.</content></subparagraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Subject to paragraph (2), the amendment made by subsection <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote>(a) shall apply to costs reporting periods ending after September 30, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>In the case of a cost reporting period beginning before October 1, 1981, any reduction in payments resulting from the amendment made by subsection (a) shall be imposed only in proportion to the part of the period that occurs after September 30, 1981.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">limits on reimbursement to home health agencies</heading><num value="2144"><inline class="smallCaps">Sec</inline>. 2144. </num><subsection class="inline"><num value="a">(a) </num><content>Subparagraph (L) of section 1861(v)(1) of the Social <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x</ref>.</p></sidenote>Security Act (added by section 2143 of this subtitle) is amended by inserting “<quotedText>(i)</quotedText>” after “<quotedText>(L)</quotedText>” and by adding at the end the following new clause: <quotedContent> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>The Secretary, in determining the amount of the payments that may be made under this title with respect to services furnished by home health agencies, may not recognize as reasonable (in the efficient delivery of such services) costs for the provision of such services by an agency to the extent these costs exceed (on the aggregate for the agency) the 75th percentile of such costs per visit for home health agencies, or, in the judgment of the Secretary, such lower percentile or such comparable or lower limit (based on or related to the mean of the costs of such agencies or otherwise) as the Secretary may determine. The Secretary may provide for such exemptions and exceptions to such limitation as he deems appropriate.”.</content> </clause> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Subject to paragraph (2), the amendment made by subsection <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x note</ref>.</p></sidenote>(a) shall apply to cost reporting periods ending after September 30, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>In the case of a cost reporting period beginning before October 1, 1981, any reduction in payments resulting from the amendment made by subsection (a) shall be imposed only in proportion to the part of the period that occurs after September 30, 1981.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">incentive reimbursement rate for renal dialysis services</heading><num value="2145"><inline class="smallCaps">Sec</inline>. 2145. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 1881(b) of the Social Security Act is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395rr">42 USC 1395rr</ref>.</p></sidenote>amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>and consistent with any regulations promulgated under paragraph (7)</quotedText>” in paragraph (2)(B) after “<quotedText>section 1861(v))</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out the second sentence of paragraph (2)(B);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by inserting “<quotedText>(which effectively encourages the efficient delivery of dialysis services and provides incentives for the increased use of home dialysis)</quotedText>” in paragraph (3)(B) after “<quotedText>or other basis</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by inserting “<quotedText>or on the basis of a method established under paragraph (7)</quotedText>” before the period at the end of paragraph (4);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>by inserting “<quotedText>(except as may be provided in regulations under paragraph (7))</quotedText>” in the second sentence of paragraph (6) after “<quotedText>in no event</quotedText>” and by striking out “<quotedText>70 percent</quotedText>” in such sentence and inserting in lieu thereof “<quotedText>75 percent</quotedText>”;</content></paragraph> <page identifier="/us/stat/95/800">95 STAT. 800</page> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>by inserting “<quotedText>(including methods established under paragraph (7))</quotedText>” in the fifth sentence of paragraph (6) after “<quotedText>any other procedure</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>by redesignating paragraphs (7) through (9) as paragraphs (8) through (10), respectively; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>by inserting after paragraph (6) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>The Secretary shall provide by regulation for a method (or methods) for determining prospectively the amounts of payments to be made for dialysis services furnished by providers of services and renal dialysis facilities to individuals in a facility and to such individuals at home. Such method (or methods) shall provide for the prospective determination of a rate (or rates) for each mode of care based on a single composite weighted formula (which takes into account the mix of patients who receive dialysis services at a facility or at home and the relative costs of providing such services in such settings) for hospital-based facilities and such a single composite weighted formula for other renal dialysis facilities, or based on such other method or combination of methods which differentiate between hospital-based facilities and other renal dialysis facilities and which the Secretary determines, after detailed analysis, will more effectively encourage the more efficient delivery of dialysis services and will provide greater incentives for increased use of home dialysis than through the single composite weighted formulas. The Secretary shall provide for such exceptions to such Methods as may be warranted by unusual circumstances (including the special circumstances of sole facilities located in isolated, rural areas). The Secretary may provide that such method will serve in lieu of any target reimbursement rate that would otherwise be established under paragraph (6).”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395rr">42 USC 1395rr note</ref>.</p></sidenote> <content class="inline">The amendments made by subsection (a) apply to services furnished on or after October 1, 1981, and the Secretary of Health and Human Services shall first promulgate regulations to carry out <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Supra</i>.</p></sidenote>section 1881(b)(7) of the Social Security Act not later than October 1, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">medicare payments secondary in cases of end stage renal disease services covered under certain group health policies</heading><num value="2146"><inline class="smallCaps">Sec</inline>. 2146. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395y">42 USC 1395y</ref>.</p></sidenote> <content class="inline">Section 1862(b) of the Social Security Act is amended by inserting “<quotedText>(1)</quotedText>” after “<quotedText>(b)</quotedText>” and by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>In the case of an individual who is entitled to benefits under part A or is eligible to enroll under part B solely by reason of section 226A, payment under this title may not be made, except as provided in subparagraph (B), with respect to any item or service furnished during the period described in subparagraph (C) to the extent that payment with respect to expenses for such item or service (i) has been made under any group health plan (as defined in section 162(h)(2) of <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 801.</p></sidenote>the Internal Revenue Code of 1954) or (ii) the Secretary determines will be made under such a plan as promptly as would otherwise be the case if payment were made by the Secretary under this title.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>Any payment under this title with respect to any item or service to an individual described in subparagraph (A) during the period described in subparagraph (C) shall be conditioned on reimbursement to the appropriate Trust Fund established by this title when notice or other information is received that payment for such item or service has been made under a plan described in subparagraph (A). The Secretary may waive the provisions of this subpara-<page identifier="/us/stat/95/801">95 STAT. 801</page>graph in the case of an individual claim if he determines that the probability of recovery or amount involved in such claim does not warrant the pursuing of the claim.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><chapeau>The provisions of subparagraphs (A) and (B) shall apply to an individual only during the 12-month period which begins with the earlier of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the month in which a regular course of renal dialysis is initiated, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>in the case of an individual who receives a kidney transplant, the first month in which he would be eligible for benefits under this title (if he had filed an application for such benefits) under the provisions of section 226A(b)(1)(B).</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><chapeau>Where payment for an item or service under such plan is less than the amount of the charge for such item or service, payment may be made under this title (without regard to deductibles and coinsurance under this title) for the remainder of such charge, but—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>such payment under this title may not exceed an amount which would be payable under this title for such item or service in the absence of such group health plan; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>such payment under this title, when combined with the amount payable under such plan, may not exceed the combined amount which would have been payable under this title and such plan if this paragraph were not in effect.”.</content> </clause> </subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 162 of the Internal Revenue Code of 1954 (relating to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s162">26 USC 162</ref>.</p></sidenote>trade or business expenses) is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="h">“(h) </num> <heading><inline class="smallCaps">Group Health Plans</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">General rule</inline>.—</heading><content>The expenses paid or incurred by an employer for a group health plan shall not be allowed as a deduction under this section if the plan differentiates in the benefits it provides between individuals having end stage renal disease and other individuals covered by such plan on the basis of the existence of end stage renal disease, the need for renal dialysis, or in any other manner.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Group health plan</inline>.—</heading><content>For purposes of this subsection the term ‘group health plan’ means any plan of, or contributed to by, an employer to provide medical care (as defined in section 213(e)) to his employees, former employees, or the families of such employees or former employees, directly or through insurance, reimbursement, or otherwise.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><content>The amendments made by subsection (a) shall become effective <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395y">42 USC 1395y note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s162">26 USC 162 note</ref>.</p></sidenote>on October 1, 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The amendments made by subsection (b) shall be effective with respect to taxable years beginning on or after January 1, 1982.</content></paragraph> </subsection> </section> </chapter> <chapter><num value="4">CHAPTER 4—</num><heading>MISCELLANEOUS CHANGES</heading> <section> <heading class="centered smallCaps">elimination of unlimited open enrollment</heading><num value="2151"><inline class="smallCaps">Sec</inline>. 2151. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 1837(e) of the Social Security Act is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395p">42 USC 1395p</ref>.</p></sidenote>amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><content>There shall be a general enrollment period during the period beginning on January 1 and ending on March 31 of each year.”.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 1837(g)(3) of such Act is amended by striking out “<quotedText>the month in which the individual files an application establishing such entitlement</quotedText>” and inserting in lieu thereof “<quotedText>the earlier of the then <page identifier="/us/stat/95/802">95 STAT. 802</page>current or immediately succeeding general enrollment period (as defined in subsection (e) of this section)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395q">42 USC 1395q</ref>.</p></sidenote> <content class="inline">Section 1838(a)(2)(E) of such Act is amended by striking out “<quotedText>the first day of the third month</quotedText>” and inserting in lieu thereof “<quotedText>the July 1</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395r">42 USC 1395r</ref>.</p></sidenote> <content class="inline">The second sentence of section 1839(d) of such Act is amended by striking out “<quotedText>the month after the month in which he reenrolled</quotedText>” and inserting in lieu thereof “<quotedText>the close of the enrollment period in which he reenrolled</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395p">42 USC 1395p note</ref>.</p></sidenote> <content class="inline">The amendments made by this section shall not apply to enrollments pursuant to written requests for enrollment filed before October 1, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">utilization guidelines for provision of home health services</heading><num value="2152"><inline class="smallCaps">Sec</inline>. 2152. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395y">42 USC 1395y</ref>.</p></sidenote> <content class="inline">Section 1862 of the Social Security Act is amended by adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><content>The Secretary shall establish utilization guidelines for the determination of whether or not payment may be made, consistent with paragraph (1) of subsection (a), under part A or part B for expenses incurred with respect to the provision of home health services, and shall provide for the implementation of such guidelines through a process of selective postpayment coverage review by intermediaries or otherwise.”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395y">42 USC 1395y note</ref>.</p></sidenote> <content class="inline">The Secretary of Health and Human Services shall establish, and provide for the implementation of, the guidelines described in section 1862(f) of the Social Security Act not later than October 1, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">repeal of statutory time limitation on agreement with skilled nursing facilities</heading><num value="2153"><inline class="smallCaps">Sec</inline>. 2153. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395cc">42 USC 1395cc</ref>.</p></sidenote> <content class="inline">Section 1866(a)(1) of the Social Security Act is amended by striking out the second sentence.</content> </section> <section> <heading class="centered smallCaps">removal of limitation on number of medicare demonstration projects</heading><num value="2154"><inline class="smallCaps">Sec</inline>. 2154. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395b–1">42 USC 1395b–1 note</ref>.</p></sidenote> <content class="inline">Section 903 of the Medicare and Medicaid Amendments of 1980 (P.L. 96–499; 94 Stat. 2615) is amended by striking out subsection (c).</content> </section> <section> <heading class="centered smallCaps">repeal of temporary delay 1n periodic interim payments (pip)</heading><num value="2155"><inline class="smallCaps">Sec</inline>. 2155. </num><content>Section 959 of the Medicare and Medicaid Amendments <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395g">42 USC 1395g note</ref>.</p></sidenote>of 1980 (P.L. 96–499; 94 Stat. 2650) is repealed.</content> </section> <section> <heading class="centered smallCaps">statutory deadlines for implementing afdc home health aide demonstration projects</heading><num value="2156"><inline class="smallCaps">Sec</inline>. 2156. </num><chapeau>Section 966 of the Medicare and Medicaid Amendments <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s632a">42 USC 632a</ref>.</p></sidenote>of 1980 (P.L. 96–499; 94 Stat. 2652) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by adding at the end of subsection (c)(2) the following new sentence: “The Secretary shall, not later than October 1, 1981, establish such guidelines and establish such regulations as may be necessary to assure that agreements are entered into under this section by not later than January 1, 1982.”, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>The Secretary</quotedText>” in subsection (h) and inserting in lieu thereof “<quotedText>The Secretary shall, during January <page identifier="/us/stat/95/803">95 STAT. 803</page>1982, submit to the Congress a report on steps taken by January 1, 1982, to enter into agreements under this section, including a general description of each of such agreements entered into by such date and the timetable under which he anticipates other such agreements will be entered into. Thereafter, the Secretary</quotedText>”.</content></paragraph> </section> </chapter> </subtitle> <subtitle><num value="C">Subtitle C—</num><heading>Provisions Relating to Medicaid</heading> <chapter><num value="1">CHAPTER 1—</num><heading>CHANGES IN PAYMENTS TO STATES</heading> <section> <heading class="centered smallCaps">reduction in medicaid payments to states and offset for meeting federal medicaid expenditure targets</heading><num value="2161"><inline class="smallCaps">Sec</inline>. 2161. </num><subsection class="inline"><num value="a">(a) </num><content>Section 1903 of the Social Security Act is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396b">42 USC 1396b</ref>.</p></sidenote>adding at the end the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="s">“(s) </num><paragraph class="inline"><num value="1">(1) </num><subparagraph class="inline"><num value="A">(A) </num><chapeau>Notwithstanding any other provision of this section (except as otherwise provided in this subsection), the amount of payments which a State is otherwise entitled to receive under this title for any quarter in—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>fiscal year 1982, shall be reduced by 3 percent,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>fiscal year 1983, shall be reduced by 4 percent, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>fiscal year 1984, shall be reduced by 4.5 percent,</content> </clause> <continuation class="indent0 firstIndent0 fontsize10">of the amount to which the State is otherwise entitled (without regard to payments under subsection (t) and without regard to payments for claims relating to expenditures made before fiscal year 1981).</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>No reduction may be made under subparagraph (A) for a quarter unless, as of the first day of the quarter, the Secretary has promulgated and has in effect final regulations (on an interim or other basis) implementing paragraphs (10)(C) and (13)(A) of section 1902(a) (as amended by the Medicare and Medicaid Amendments of 1981).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>For purposes of this paragraph, the term ‘State’ only includes the fifty States and the District of Columbia and does not include any State which did not have a plan approved under this title as of July 1, 1981.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>The percentage reduction imposed by paragraph (1) for a State for a quarter shall be reduced—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>by one percentage point if the State has a qualified hospital cost review program (described in paragraph (3)) for the quarter,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>by one percentage point if the State has a high unemployment rate (as determined under paragraph (4)) for the quarter, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>by one percentage point if the total amount of the State’s third party and fraud and abuse recoveries (as defined in paragraph (5)(A)) for the previous quarter is equal to or exceeds one percent of the amount of Federal payments that the Secretary estimates are due the State under this title for that previous quarter (without regard to payments under subsection (t)).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>For purposes of paragraph (2)(A), a State has a qualified hospital cost review program for a calendar quarter if such program meets the following requirements:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>The program must have been established by statute and in effect on July 1, 1981, and at the beginning of the quarter.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>The program must be operated directly by the State and must apply (i) to substantially all nonfederal acute care hospitals (as defined by the Secretary) in the State and (ii) to review of <page identifier="/us/stat/95/804">95 STAT. 804</page>either all revenues or expenses for inpatient hospital services <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395">42 USC 1395</ref>.</p></sidenote>(other than revenues under title XVIII of this Act, unless approved by the Secretary) or at least 75 percent of all revenues or expenses for inpatient hospital services (including revenues under title XVIII of this Act).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>The State must provide the Secretary with satisfactory assurances as to the equitable treatment under the program of all entities (including Federal and State programs) that pay hospitals for inpatient hospital services, of hospital employees, and of hospital patients.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>The Secretary determines that the annual rate of increase in aggregate hospital inpatient costs per capita or per admission (as defined by the Secretary) in the State during the most recent calendar year ending at least nine months before such quarter (or, at the State’s option, during the 2 or 3 calendar-year period ending with that calendar year) is at least two percentage points less than the annual rate of increase during that calendar year (or that period, as the case may be) in such costs per capita or per admission for hospitals located in the United States (excluding from such computation, with respect to any calendar year in any period, any State which had in existence a qualified hospital cost review program (or, in the case of periods before January 1, 1982, had a hospital cost review program which the Secretary determines met for such periods the provisions of subparagraphs (A), (B), and (C) of this paragraph) during that entire calendar year).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><subparagraph class="inline"><num value="A">(A) </num><content>For purposes of paragraph (2)(B), a State has a high unemployment rate with respect to a quarter if the average of the monthly unemployment rates (as determined by the Bureau of Labor Statistics) for the State for the three months immediately before such quarter is equal to or greater than 150 percent of the average of such rates for the United States for such months.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">“United States.”</p></sidenote> <content class="inline">For purposes of subparagraph (A), the term ‘United States’ only includes the fifty States and the District of Columbia.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><subparagraph class="inline"><num value="A">(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Definition.</p></sidenote> <chapeau class="inline">For purposes of paragraph (2)(C), the term ‘third party and fraud and abuse recoveries’ means, for a State for a previous quarter—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the total amount that State demonstrates to the Secretary that it has recovered or diverted in the quarter on the basis of (I) third-party payments (described in section 1902(a)(25)), (II) the operation of its State medicaid fraud control unit (defined in subsection (q)), and (III) other fraud or abuse control activities, plus</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>any amount carried forward from the previous quarter under subparagraph (B).</content> </clause> <continuation class="indent0 firstIndent0 fontsize10">Subclause (I) of clause (i) shall only apply to quarters during fiscal year 1982.</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>If the total amount of the State’s third party and fraud and abuse recoveries (defined in subparagraph (A)) for a quarter (beginning on or after October 1, 1981) exceeds one percent of the amount of Federal payments that the Secretary estimates are due the State under this title for that quarter (without regard to subsection (t)), the amount of such excess shall be carried forward to the following quarter for purposes of clause (ii) of subparagraph (A).”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396b">42 USC 1396b</ref>.</p></sidenote> <content class="inline">Section 1902 of such Act is further amended by adding after subsection (s) (added by subsection (a) of this section) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="t">“(t) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>The Secretary shall determine for each State (as defined in subsection (s)(1)(C)) for each of fiscal years 1982, 1983, and 1984, a <page identifier="/us/stat/95/805">95 STAT. 805</page>target amount of Federal medicaid expenditures. Such target amount for a State for fiscal year—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>1982, is equal to 109 percent of the estimate (based upon the last such estimate for such State received by the Secretary before April 1, 1981) of the Federal share of expenditures under this title (other than interest paid under subsection (d)(5), without taking into account reductions in payment under subsection (s) or additional payments under this subsection, and without regard to payments for claims relating to expenditures made prior to October 1, 1980) in fiscal year 1981 for such State;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>1983, is equal to the target amount determined under subparagraph (A) for the State increased or decreased by a percentage equal to the percentage increase or decrease (as the case may be) in the index of the medical care expenditure category of the consumer price index for all urban consumers (published by the Bureau of Labor Statistics) between September 1982 and September 1983; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>1984, is equal to the target amount determined under subparagraph (A) for the State increased or decreased by a percentage equal to the percentage increase or decrease (as the case may be) in the index of the medical care expenditure category of the consumer price index for all urban consumers (published by the Bureau of Labor Statistics) between September 1982 and September 1984.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>Notwithstanding any other provision of this section (except as otherwise provided in this subsection), the amount of payments which a State (with a State plan approved under this title) is otherwise entitled to receive for the first quarter of any fiscal year (beginning with fiscal year 1983 and ending with fiscal year 1985) shall be supplemented by an amount equal to the lesser of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the amount by which the Secretary determines or estimates (subject to appropriate subsequent adjustments) the Federal share of expenditures under this title (other than interest paid under subsection (f)5), without taking into account reductions in payment under subsection (s) or payments under this subsection, without regard to payments for claims relating to expenditures made prior to October 1, 1980, and subject to paragraph (3) of this subsection) under the State’s plan for the previous fiscal year was less than the target amount of Federal medicaid expenditures for that State for that fiscal year determined under paragraph (1), or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the amount of the reductions imposed with respect to the State under subsection (s) for the quarters in the previous fiscal year.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Only for the purpose of computing under this subsection the Federal share of expenditures for a State for fiscal year 1984 (in the case of the payment which may be made for the first quarter of fiscal year 1985), the Federal medical assistance percentage for fiscal year 1984 shall be the Federal medical assistance percentage for States in effect for fiscal year 1983, disregarding any change in such percentage between fiscal year 1983 and fiscal year 1984.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><content>Effective for calendar quarters beginning on or after October 1, 1984, subsection (s) of section 1902 of the Social Security Act <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 803.</p></sidenote>(added by subsection (a) of this section) is repealed.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Effective after payments for the first quarter of fiscal year 1985, subsection (t) of section 1902 of the Social Security Act (added by <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 804.</p></sidenote>subsection (b) of this section) is repealed.</content></paragraph> </subsection> </section> <page identifier="/us/stat/95/806">95 STAT. 806</page> <section> <heading class="centered smallCaps">payments to territories</heading><num value="2162"><inline class="smallCaps">Sec</inline>. 2162. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1301">42 USC 1301</ref>.</p></sidenote> <content class="inline">Section 1101(a)(1) of the Social Security Act is amended (1) by striking out “<quotedText>American Samoa and</quotedText>” in the third sentence and inserting in lieu thereof “<quotedText>American Samoa, the Northern Mariana Islands, and</quotedText>”, and (2) by inserting after the third sentence the following new sentence: “Such term when used in title XIX also includes the Northern Mariana Islands.”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396d">42 USC 1396d</ref>.</p></sidenote> <content class="inline">Clause (2) of section 1905(b) of such Act is amended by striking out “<quotedText>and Guam</quotedText>” and inserting in lieu thereof “<quotedText>Guam, and the Northern Mariana Islands</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1308">42 USC 1308</ref>.</p></sidenote> <content class="inline">Subsection (c) of section 1108 of such Act is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396">42 USC 1396</ref>.</p></sidenote> <chapeau class="inline">The total amount certified by the Secretary under title XIX with respect to a fiscal year for payment to—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>Puerto Rico shall not exceed $45,000,000,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the Virgin Islands shall not exceed $1,500,000,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Guam shall not exceed $1,400,000, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>the Northern Mariana Islands shall not exceed $350,000.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1308">42 USC 1308 note</ref>.</p></sidenote> <content class="inline">The amendment made by paragraph (1) shall apply to fiscal years beginning with fiscal year 1982.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">eliminating time period limitation on payment of interest on disputed claims</heading><num value="2163"><inline class="smallCaps">Sec</inline>. 2163. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396b">42 USC 1396b</ref>.</p></sidenote> <content class="inline">Section 1903(d)(5) of the Social Security Act is amended by striking out “<quotedText>(but not to exceed a period of twelve months</quotedText>” and all that follows through “disallowances made thereafter)”.</content> </section> <section> <heading class="centered smallCaps">eliminating federal matching for certain laboratory tests</heading><num value="2164"><inline class="smallCaps">Sec</inline>. 2164. </num><subsection class="inline"><num value="a">(a) </num><content>Section 1903(i) of the Social Security Act, as amended by section 2103 of this subtitle, is further amended by striking out the period at the end of paragraph (5) and inserting in lieu thereof “<quotedText>; or</quotedText>” and by adding at the end the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>with respect to any amount expended for inpatient hospital tests (other than in emergency situations) not specifically ordered by the attending physician or other responsible practitioner.”.</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396b">42 USC 1396b note</ref>.</p></sidenote> <content class="inline">The amendments made by subsection (a) shall apply to tests occurring on or after October 1, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">study of federal medical assistance percentage formula and of adjustments of target amounts for federal medicaid expenditures</heading><num value="2165"><inline class="smallCaps">Sec</inline>. 2165. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396d">42 USC 1396d note</ref>.</p></sidenote> <chapeau class="inline">The Comptroller General, in consultation with the Advisory Committee for Intergovermental Relations, shall conduct a study of—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the formula, under section 1905(b) of the Social Security <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396d">42 USC 1396d</ref>.</p></sidenote>Act, defining the Federal medical assistance percentage, as it applies to distribution of Federal funds to States (as defined for purposes of title XIX of such Act) under that Act, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>the validity and equity of any adjustment to the target amount of Federal medical expenditures (under section 1903(t) of <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 804.</p></sidenote>the Social Security Act, added by section 2161 of this subtitle) for all States or any particular State which ought to be made for fiscal year 1983 or fiscal year 1984 (including methodology for calculating and implementing such adjustments) to reflect eco-<page identifier="/us/stat/95/807">95 STAT. 807</page>nomic and demographic factors affecting such State which are out of the ordinary sphere of control of such State.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">Specifically, pursuant to paragraph (1) the Comptroller General shall examine the feasibility and consequences of revising the medicaid matching formula so as to take into account the relative economic positions and needs of the different States, the different amounts of support and income payments made by different States under the Social Security Act, the relative cost of living and the unemployment <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1305">42 USC 1305</ref>.</p></sidenote>rates in the different States, the relative taxable wealth and amount of taxes raised per capita by the different States, and other relevant factors bearing on an equitable distribution of Federal funds to States under that Act.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The Comptroller General shall report to the Congress on the study required under this section not later than October 1, 1982.</content> </subsection> </section> </chapter> <chapter><num value="2">CHAPTER 2—</num><heading>INCREASED FLEXIBILITY FOR STATES</heading> <section> <heading class="centered smallCaps">coverage of, and services for, the medically needy</heading><num value="2171"><inline class="smallCaps">Sec</inline>. 2171. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 1902(a)(10) of the Social Security Act is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a</ref>.</p></sidenote>amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by amending subparagraph (A) to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>for making medical assistance available, including at least the care and services listed in paragraphs (1) through (5) and (17) of section 1905(a), to all individuals receiving aid or assistance <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s396d">42 USC 396d</ref>.</p></sidenote>under any plan of the State approved under title I, X, XIV, or XVI, or part A or part E of title IV (including pregnant women <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s301/1201/1351/1381/601">42 USC 301, 1201, 1351, 1381, 601</ref>; <ref href="/us/stat/94/501">94 Stat. 501</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s670">42 USC 670</ref>.</p></sidenote>deemed by the State to be receiving such aid as authorized in section 406(g) and individuals considered by the State to be receiving such aid as authorized under section 414(g)), or with respect to whom supplemental security income benefits are being paid under title XVI;”;</content></subparagraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>clause</quotedText>” each place it appears in subparagraph (B) and inserting in lieu thereof “<quotedText>subparagraph</quotedText>” and by striking out “<quotedText>and</quotedText>” at the end of subparagraph (B); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out paragraph (C) and by inserting in lieu thereof the following: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><chapeau>that if medical assistance is included for any group of individuals described in section 1905(a) who are not described in subparagraph (A), then—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the plan must include a description of (I) the criteria for determining eligibility of individuals in the group for such medical assistance and (H) the amount, duration, and scope of medical assistance made available to individuals in the group;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><chapeau>the plan must make available medical assistance—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>to individuals described in section 1905(a)(i), and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>to pregnant women, during the course of their pregnancy, who (but for income and resources) would be eligible for medical assistance as an individual described in subparagraph (A);</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>such medical assistance must include (I) with respect to children under 18 and individuals entitled to institutional services, ambulatory services, and (II) with respect to pregnant women, prenatal care and delivery services; and</content> </clause> <page identifier="/us/stat/95/808">95 STAT. 808</page> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>if such medical assistance includes services in institutions for mental diseases or intermediate care facility services for the mentally retarded (or both) for any such group, it also must include for all groups covered at least the care and services listed in paragraphs (1) through (5) and (17) of section 1905(a) or the care and services listed in any 7 of the paragraphs numbered (1) through (17) of such section; and</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>for the inclusion of home health services for any individual who, under the State plan, is entitled to skilled nursing facility services;”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a</ref>.</p></sidenote> <content class="inline">Section 1902(a)(13) of such Act is amended by striking out subparagraphs (A), (B), and (C).</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p></sidenote> <content class="inline">The amendments made by this section shall become effective on the date of the enactment of this Act.</content> </subsection> </section> <section> <heading class="centered smallCaps">flexibility in coverage of individuals aged 18–20</heading><num value="2172"><inline class="smallCaps">Sec</inline>. 2172. </num><subsection class="inline"><num value="a">(a) </num><content>Paragraph (2) of section 1902(b) of the Social Security Act is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>any age requirement which excludes any individual who has not attained the age of 19 and is a dependent child under part A of title IV;”.</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396d">42 USC 1396d</ref>.</p></sidenote> <content class="inline">Clause (i) of section 1905(a) of such Act is amended to read as follows: <quotedContent> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>under the age of 21, or, at the option of the State, under the age of 20, 19, or 18 as the State may choose, or any reasonable category of such individuals,”.</content> </clause> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 1905(a)(ii) of such Act is amended by striking out “<quotedText>, except for section 406(a)(2),</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p></sidenote> <content class="inline">The amendments made by this section shall become effective on the date of the enactment of this Act.</content> </subsection> </section> <section> <heading class="centered smallCaps">reimbursement of hospitals</heading><num value="2173"><inline class="smallCaps">Sec</inline>. 2173. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a</ref>.</p></sidenote> <chapeau class="inline">Section 1902(a)(13) of the Social Security Act is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out subparagraph (D);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><chapeau>in subparagraph (E)—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>by striking out “<quotedText>skilled nursing facility and intermediate care facility</quotedText>” and inserting in lieu thereof “<quotedText>hospital, skilled nursing facility, and intermediate care facility</quotedText>”;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>by inserting “<quotedText>and which, in the case of hospitals, take into account the situation of hospitals which serve a disproportionate number of low income patients with special needs and provide, in the case of hospital patients receiving services at an inappropriate level of care (under conditions <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x</ref>.</p></sidenote>similar to those described in section 1861(v)(1)(G)), for lower reimbursement rates reflecting the level of care actually received (in a manner consistent with section 1861(v)(1)(G))</quotedText>” after “<quotedText>determined in accordance with methods and standards developed by the State</quotedText>”;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>by inserting before the first semicolon the following: “<quotedText>and to assure that individuals eligible for medical assistance have reasonable access (taking into account geographic location and reasonable travel time) to inpatient hospital services of adequate quality</quotedText>”; and</content> </clause> <page identifier="/us/stat/95/809">95 STAT. 809</page> <clause class="firstIndent1 fontsize10"><num value="iv">(iv) </num><content>by striking out “<quotedText>each skilled nursing or intermediate care facility</quotedText>” and inserting in lieu thereof “<quotedText>each hospital, skilled nursing facility, and intermediate care facility</quotedText>”; and</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by redesignating subparagraphs (E) and (F) as subparagraphs (A) and (B), respectively.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Section 1902(a)(20) of such Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a</ref>.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>and</quotedText>” at the end of subparagraph (B);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>and</quotedText>” at the end of subparagraph (C); and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out subparagraph (D).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Subsection (h) of section 1902 of such Act is repealed.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The amendment made by paragraph (1) shall not apply with <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p></sidenote>respect to services furnished before the date the Secretary of Health and Human Services first promulgates and has in effect final regulations (on an interim or other basis) to carry out section 1902(a)(13)(A) of the Social Security Act (as amended by this subtitle).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Part A of title XI of such Act is amended by adding after section 1134 the following new section: <quotedContent> <section> <heading class="centered smallCaps">“development of model prospective rate methodology</heading><num value="1135">“<inline class="smallCaps">Sec</inline>. 1135. </num><subsection class="inline"><num value="a">(a) </num><content>The Secretary shall develop a model system or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1320b–5">42 USC 1320b–5</ref>.</p></sidenote>systems for the payment of hospitals for inpatient hospital services on a prospective basis which may be applied for reimbursement of hospitals under title XVIII or under a State plan approved under title XIX. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395/1396">42 USC 1395, 1396</ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>The Secretary shall report to the Congress on the development of such system or systems not later than July 31, 1982.”.</content> </subsection> </section> </quotedContent> </content> </subsection> </section> <section> <heading class="centered smallCaps">removal of medicaid reasonable charge limitation</heading><num value="2174"><inline class="smallCaps">Sec</inline>. 2174. </num><subsection class="inline"><num value="a">(a) </num><content>Section 1902(a)(30) of the Social Security Act is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a</ref>.</p></sidenote>amended by striking out “<quotedText>(including payments</quotedText>” and all that follows through “reasonable charges” and inserting in lieu thereof “<quotedText>are</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 1903(i) of such Act is amended by striking out paragraph <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396b">42 USC 1396b</ref>.</p></sidenote>(1).</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The amendments made by this section shall apply to services <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p></sidenote>furnished an or after October 1, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">inapplicability and waiver of freedom-of-choice and other state plan requirements</heading><num value="2175"><inline class="smallCaps">Sec</inline>. 2175. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Paragraph (23) of section 1902(a) of the Social Security Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>except as provided in section 1915 and</quotedText>” after “<quotedText>(23)</quotedText>”, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out all that follows the first semicolon.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Title XIX of the Social Security Act is amended by adding at the end the following new section: <quotedContent> <section> <heading class="centered smallCaps">“provisions respecting inapplicability and waiver of certain requirements of this title</heading><num value="1915">“<inline class="smallCaps">Sec</inline>. 1915. </num><subsection class="inline"><num value="a">(a) </num><chapeau>A State shall not be deemed to be out of compliance <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396n">42 USC 1396n</ref>.</p></sidenote>with the requirements of paragraphs (1), (10), or (23) of section 1902(a) solely by reason of the fact that the State (or any political subdivision thereof)—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><chapeau>has entered into—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>a contract with an organization which has agreed to provide care and services in addition to those offered under <page identifier="/us/stat/95/810">95 STAT. 810</page>the State plan to individuals eligible for medical assistance who reside in the geographic area served by such organization and who elect to obtain such care and services from such organization, or by reason of the fact that the plan provides for payment for rural health clinic services only if those services are provided by a rural health clinic; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>arrangements through a competitive bidding process or otherwise for the purchase of laboratory services referred <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396d">42 USC 1396d</ref>.</p></sidenote>to in section 1905(a)(3) or medical devices if the Secretary has found that—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>adequate services or devices will be available under such arrangements, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><chapeau>any such laboratory services will be provided only through laboratories—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>which meet the applicable requirements of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x</ref>.</p></sidenote>section 1861(e)(9) or paragraphs (11) and (12) of section 1861(s), and such additional requirements as the Secretary may require, and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>no more than 75 percent of whose charges for such services are for services provided to individuals who are entitled to benefits under this title or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395c/1895j">42 USC 1395c, 1895j</ref>.</p></sidenote>under part A or part B of title XVIII; or</content> </subclause> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>restricts—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>for a reasonable period of time the provider or providers from which an individual (eligible for medical assistance for items or services under the State plan) can receive such items or services, if the State has found, after notice and opportunity for a hearing (in accordance with procedures established by the State), that the individual has utilized such items or services at a frequency or amount not medically necessary (as determined in accordance with utilization guidelines established by the State), or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>(through suspension or otherwise) for a reasonable period of time the participation of a provider of items or services under the State plan, if the State has found, after notice and opportunity for a hearing (in accordance with procedures established by the State), that the provider has (in a significant number or proportion of cases) provided such items or services either (i) at a frequency or amount not medically necessary (as determined in accordance with utilization guidelines established by the State), or (ii) of a quality which does not meet professionally recognized standards of health care,</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">if, under such restriction, individuals eligible for medical assistance for such services have reasonable access (taking into account geographic location and reasonable travel time) to such services of adequate quality.</continuation> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>The Secretary, to the extent he finds it to be cost-effective and efficient and not inconsistent with the purposes of this title, may <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a/1396b">42 USC 1396a, 1396b</ref>.</p></sidenote>waive such requirements of section 1902 and section 1903(m) as may be necessary for a State—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>to implement a case-management system or a specialty physician services arrangement which restricts the provider from (or through) whom an individual (eligible for medical assistance under this title) can obtain primary care services (other than in emergency circumstances), if such restriction does not substantially impair access to such services of adequate quality where medically necessary,</content></paragraph> <page identifier="/us/stat/95/811">95 STAT. 811</page> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>to allow a locality to act as a central broker in assisting individuals (eligible for medical assistance under this title) in selecting among competing health care plans, if such restriction does not substantially impair access to services of adequate quality where medically necessary,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>to share (through provision of additional services) with recipients of medical assistance under the State plan cost savings resulting from use by the recipient of more cost-effective medical care, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>to restrict the provider from (or through) whom an individual (eligible for medical assistance under this title) can obtain services (other than in emergency circumstances) to providers or practitioners who undertake to provide such services and who meet, accept, and comply with the reimbursement, quality, and utilization standards under the State plan, which standards are consistent with access, quality, and efficient and economic provision of covered care and services, if such restriction does not discriminate among classes of providers on grounds unrelated to their demonstrated effectiveness and efficiency in providing those services.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>No waiver under this section may extend over a period of longer than two years unless the State requests continuation of such waiver, and such request shall be deemed granted unless the Secretary denies such request in writing within 90 days after the date of its submission to the Secretary.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall monitor the implementation of waivers granted under this section to assure that the requirements for such waiver are being met and shall, after notice and opportunity for a hearing, terminate any such waiver where he finds noncompliance has occurred.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary shall report, not later than September 30, 1984, <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote>to Congress on waivers granted under this section.”.</content></paragraph> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 1902(a)(9) of such Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a</ref>.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>and</quotedText>” at the end of subparagraph (A),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out the semicolon at the end of subparagraph (B) and inserting in lieu thereof “<quotedText>, and</quotedText>”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by adding after subparagraph (B) the following new subparagraph: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>that any laboratory services paid for under such plan must be provided by a laboratory which meets the applicable requirements of section 1861(e)(9) or paragraphs (11) and (12) of section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395x">42 USC 1395x</ref>.</p></sidenote>1861(s), or, in the case of a laboratory which is in a rural health clinic, of section 1861(aa)(2)(G);”.</content></subparagraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>The amendments made by paragraph (1) shall (except as <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396">42 USC 1396</ref>.</p></sidenote>provided under subparagraph (B)) be effective with respect to payments under title XIX of the Social Security Act for calendar quarters beginning on or after October 1, 1981.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>In the case of a State plan for medical assistance under title XIX of the Social Security Act which the Secretary of Health and Human Services determines requires State legislation in order for the plan to meet the additional requirement imposed by the amendment made by paragraph (1)(C), the State plan shall not be regarded as failing to comply with the requirements of such title solely on the basis of its failure to meet this additional requirement before the first day of the first calendar year beginning after the close of the first regular session of the State legislature that begins after the date of the enactment of this Act.</content></subparagraph> </paragraph> </subsection> </section> <page identifier="/us/stat/95/812">95 STAT. 812</page> <section> <heading class="centered smallCaps">waiver to provide home and community-based services for certain individuals</heading><num value="2176"><inline class="smallCaps">Sec</inline>. 2176. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 809.</p></sidenote> <chapeau class="inline">Section 1915 of the Social Security Act (added by section 2175 of this subtitle) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>(other than a waiver under subsection (c))</quotedText>” in subsection (c) after “<quotedText>No waiver under this section</quotedText>”, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by redesignating subsections (c) and (d) as subsections (d) and (e), respectively, and by inserting after subsection (b) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary may by waiver provide that a State plan approved under this part may include as ‘medical assistance’ under such plan home or community-based services (other than room and board) approved by the Secretary which are provided pursuant to a written plan of care to individuals with respect to whom there has been a determination that but for the provision of such services the individuals would require the level of care provided in a skilled nursing facility or intermediate care facility the cost of which could be reimbursed under the State plan.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>A waiver shall not be granted under this subsection unless the State provides assurances satisfactory to the Secretary that—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>necessary safeguards (including adequate standards for provider participation) have been taken to protect the health and welfare of individuals provided services under the waiver and to assure financial accountability for funds expended with respect to such services;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the State will provide, with respect to individuals who are entitled to medical assistance for skilled nursing facility or intermediate care facility services under the State plan and who may require such services, for an evaluation of the need for such services;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>such individuals who are determined to be likely to require the level of care provided in a skilled nursing facility or intermediate care facility are informed of the feasible alternatives, if available under the waiver, at the choice of such individuals, to the provision of skilled nursing facility or intermediate care facility services;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>under such waiver the average per capita expenditure estimated by the State in any fiscal year for medical assistance provided with respect to such individuals does not exceed the average per capita expenditure that the State reasonably estimates would have been made in that fiscal year for expenditures under the State plan for such individuals if the waiver had not been granted; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>the State will provide to the Secretary annually, consistent with a data collection plan designed by the Secretary, information on the impact of the waiver granted under this subsection on the type and amount of medical assistance provided under the State plan and on the health and welfare of recipients.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>A waiver granted under this subsection may include a waiver of the requirements of subsection (a)(1) (relating to statewideness) and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a</ref>.</p></sidenote>subsection (a)(10) of section 1902. A waiver under this subsection shall be for an initial term of three years and, upon the request of a State, shall be extended for additional three-year periods unless the Secretary determines that for the previous three-year period the assurances provided under paragraph (2) have not been met.</content></paragraph> <page identifier="/us/stat/95/813">95 STAT. 813</page> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><chapeau>A waiver granted under this section may, consistent with paragraph (2)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>limit the individuals provided benefits under such waiver to individuals with respect to whom the State has determined that there is a reasonable expectation that the amount of medical assistance provided with respect to the individual under such waiver will not exceed the amount of such medical assistance provided for such individual if the waiver did not apply, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>provide medical assistance to individuals (to the extent consistent with written plans of care, which are subject to the approval of the State) for case management services, homemaker/home health aide services and personal care services, adult day health services, habilitation services, respite care, and such other services requested by the State as the Secretary may approve.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> </section> <section> <heading class="centered smallCaps">time limitation for action an requests for plan amendments and waivers</heading><num value="2177"><inline class="smallCaps">Sec</inline>. 2177. </num><subsection class="inline"><num value="a">(a) </num><content>Section 1915 of the Social Security Act (added by <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 812.</p></sidenote>section 2175 of this subtitle) is further amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><content>A request to the Secretary from a State for a proposed State plan or plan amendment or a waiver of a requirement of this title submitted by the State pursuant to a provision of this title shall be deemed granted unless the Secretary, within 90 days after the date of its submission to the Secretary, either denies such request in writing or informs the State agency in writing with respect to any additional information which is needed in order to make a final determination with respect to the request. After the date the Secretary receives such additional information, the request shall be deemed granted unless the Secretary, within 90 days of such date, denies such request.”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The amendment made by this section shall become effective 90 <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396n">42 USC 1396n note</ref>.</p></sidenote>days after the date of the enactment of this Act.</content> </subsection> </section> <section> <heading class="centered smallCaps">flexibility in hmo and prepaid provider participation in state plans</heading><num value="2178"><inline class="smallCaps">Sec</inline>. 2178. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Paragraph (1)(A) of section 1903(m) of the Social Security Act is amended by striking out “<quotedText>means</quotedText>” and all that follows <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396b">42 USC 1396b</ref>.</p></sidenote>through the end thereof and inserting in lieu thereof the following: “means a public or private organization, organized under the laws of any State, which is a qualified health maintenance organization (as defined in section 1310(d) of the Public Health Service Act) or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300e–9">42 USC 300e–9</ref>.</p></sidenote>which—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>makes services it provides to individuals eligible for benefits under this title accessible to such individuals, within the area served by the organization, to the same extent as such services are made accessible to individuals (eligible for medical assistance under the State plan) not enrolled with the organization, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>has made adequate provision against the risk of insolvency, which provision is satisfactory to the State and which assures that individuals eligible for benefits under this title are in no case held liable for debts of the organization in case of the organization’s insolvency.”.</content> </clause> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Paragraph (2)(A) of section 1903(m) of such Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396b">42 USC 1396b</ref>.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>and</quotedText>” at the end of clause (i),</content></subparagraph> <page identifier="/us/stat/95/814">95 STAT. 814</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>one-half of the membership of the entity</quotedText>” in clause (ii) and inserting in lieu thereof “<quotedText>75 percent of the membership of the entity which is enrolled on a prepaid basis</quotedText>”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out the period at the end of clause (ii) and inserting in lieu thereof a semicolon, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>by adding at the end the following new clauses: <quotedContent> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>such services are provided for the benefit of individuals eligible for benefits under this title in accordance with a contract between the State and the entity under which prepaid payments to the entity are made on an actuarially sound basis;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>such contract provides that the Secretary and the State (or any person or organization designated by either) shall have the right to audit and inspect any books and records of the entity (and of any subcontractor) that pertain (I) to the ability of the entity to bear the risk of potential financial losses, and (II) to services performed or determinations of amounts payable under the contract;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="v">“(v) </num><content>such contract provides that in the entity’s enrollment, reenrollment, or disenrollment of individuals who are eligible for benefits under this title and eligible to enroll, reenroll, or disenroll with the entity pursuant to the contract, the entity will not discriminate among such individuals on the basis of their health status or requirements for health care services;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="vi">“(vi) </num><content>such contract (I) permits individuals who have elected under the plan to enroll with the entity for provision of such benefits to terminate such enrollment without cause as of the beginning of the first calendar month following a full calendar month after the request is made for such termination, and (II) provides for notification of each such individual, at the time of the individual’s enrollment, of such right to terminate such enrollment; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="vii">“(vii) </num><content>such contract provides that, in the case of medically necessary services which were provided (I) to an individual enrolled with the entity under the contract and entitled to benefits with respect to such services under the State’s plan and (II) other than through the organization because the services were immediately required due to an unforseen illness, injury, or condition, either the entity or the State provides for reimbursement with respect to those services.”.</content> </clause> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Paragraph (2) of such section is further amended by adding after subparagraph (C) the following new subparagraph: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>In the case of a health maintenance organization that is a public entity, the Secretary may modify or waive the requirement described in subparagraph (A)(ii) but only if the Secretary determines that (i) special circumstances warrant such modification or waiver, and (ii) the organization has taken and is taking reasonable efforts to enroll individuals who are not entitled to benefits under the State <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395">42 USC 1395</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a</ref>.</p></sidenote>plan approved under this title or under title XVIII.”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 1902(e) of such Act is amended by inserting “<quotedText>(1)</quotedText>” after “<quotedText>(e)</quotedText>” and by adding at the end the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>In the case of an individual who is enrolled with a qualified health maintenance organization (as defined in title XIII of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s300e">42 USC 300e</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396b">42 USC 1396b</ref>.</p></sidenote>Public Health Service Act) under a contract described in section 1903(m)(2)(A) and who would (but for this paragraph) lose eligibility for benefits under this title before the end of the minimum enrollment period (defined in subparagraph (B)), the State plan may provide, notwithstanding any other provision of this title, that the individual shall be deemed to continue to be eligible for such benefits <page identifier="/us/stat/95/815">95 STAT. 815</page>until the end of such minimum period, but only with respect to such benefits provided to the individual as an enrollee of such organization.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>For purposes of subparagraph (A), the term ‘minimum enrollement <sidenote><p class="indent0 firstIndent0 fontsize8">“Minimum enrollment period.”</p></sidenote>period’ means, with respect to an individual’s enrollment with a health maintenance organization under a State plan, a period, established by the State, of not more than six months beginning on the date the individual’s enrollment with the organization becomes effective.”.</content></subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The amendments made by this section shall apply with respect <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396">42 USC 1396</ref>.</p></sidenote>to services furnished, under a State plan approved under title XIX of the Social Security Act, on or after October 1, 1981; except that such amendments shall not apply with respect to services furnished by a health maintenance organization under a contract with a State entered into under such title before October 1, 1981 unless the organization requests that such amendments apply and the Secretary of Health and Human Services and the single State agency (administering or supervising the administration of the State plan under such title) agree to such request.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>The Secretary of Health and Human Services shall conduct a <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a note</ref>.</p></sidenote>study evaluating the extent of, and reasons for, the termination by medicaid beneficiaries of their memberships in health maintenance organizations. In conducting such study, the Secretary shall place special emphasis on the quantity and quality of medical care provided in health maintenance organizations and the quality of such care when provided on a fee-for-service basis. The Secretary shall submit <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote>an interim report to the Congress, within two years after the date of the enactment of this Act, and a final report within five years from such date containing, respectively, the interim and final findings and conclusions made as a result of such study.</content> </subsection> </section> </chapter> <chapter><num value="3">CHAPTER 3—</num><heading>MISCELLANEOUS CHANGES</heading> <section> <heading class="centered smallCaps">repeal of epsdt penalty</heading><num value="2181"><inline class="smallCaps">Sec</inline>. 2181. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Subsection (g) of section 403 of the Social Security Act is repealed. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s603">42 USC 603</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Section 1902(a) of such Act is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>and</quotedText>” at the end of paragraph (42), <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a</ref>.</p></sidenote></content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out the period at the end of paragraph (43) and inserting in lieu thereof “<quotedText>; and</quotedText>”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by inserting after paragraph (43) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="44">“(44) </num><chapeau>provide for—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>informing all persons in the State who are under the age of 21 and who have been determined to be eligible for medical assistance including services described in section 1905(a)(4)(B), of the availability of early and periodic screening, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396d">42 USC 1396d</ref>.</p></sidenote>diagnostic, and treatment services as described in section 1905(a)(4)(B),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>providing or arranging for the provision of such screening services in all cases where they are requested, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>arranging for (directly or through referral to appropriate agencies, organizations, or individuals) corrective treatment the need for which is disclosed by such child health screening services.”.</content></subparagraph> </paragraph> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The amendment made by subsection (a)(1) shall apply to reductions <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s603">42 USC 603 note</ref>.</p></sidenote>for calendar quarters beginning on or after June 30, 1974, and <page identifier="/us/stat/95/816">95 STAT. 816</page>the amendments made by subsection (a)(2) shall take effect on October 1, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">flexibility in requiring collection of third-party payments</heading><num value="2182"><inline class="smallCaps">Sec</inline>. 2182. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396a">42 USC 1396a</ref>.</p></sidenote> <content class="inline">Section 1902(a)(25)(C) of the Social Security Act is amended by inserting “<quotedText>and where the amount of reimbursement the State can reasonably expect to recover exceeds the costs of such recovery</quotedText>” after “<quotedText>of the individual</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">permitting physician assistants and nurse practitioners to provide certain recertifications</heading><num value="2183"><inline class="smallCaps">Sec</inline>. 2183. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396b">42 USC 1396b</ref>.</p></sidenote> <chapeau class="inline">Section 1903(g)(1)(A) of the Social Security Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>(and recertifies</quotedText>” and inserting in lieu thereof “<quotedText>(and the physician, or a physician assistant or nurse practitioner under the supervision of a physician, recertifies</quotedText>”, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting “<quotedText>(or, in the case of services that are intermediate care facility services described in section 1905(d), every year)</quotedText>” after “<quotedText>every 60 days</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396b">42 USC 1396b note</ref>.</p></sidenote> <content class="inline">The amendments made by subsection (a) shall apply to payments made to States for calendar quarters beginning on or after October 1, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">repeal of obsolete authority for medical assistance</heading><num value="2184"><inline class="smallCaps">Sec</inline>. 2184. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>The heading of title I of the Social Security Act is amended by striking out “<quotedText>AND MEDICAL ASSISTANCE</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s301">42 USC 301</ref>.</p></sidenote> <chapeau class="inline">Section 1 of such Act is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>(a)</quotedText>” the first place it appears in the first sentence,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>, (b) of enabling</quotedText>” and all that follows through “for self-care” in the first sentence, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out “<quotedText>, or for medical assistance for the aged, or for old-age assistance and medical assistance for the aged</quotedText>” in the second sentence.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s302">42 USC 302</ref>.</p></sidenote> <chapeau class="inline">Section 2 of such Act is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText><inline class="smallCaps">and medical assistance</inline></quotedText>” in the heading;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>, or for medical assistance for the aged, or for old-age assistance and medical assistance for the aged</quotedText>” in subsection (a) before paragraph (1);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out “<quotedText>; and</quotedText>” at the end of subsection (a)(10) and inserting in lieu thereof a period; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>by striking out paragraphs (11), (12), and (13) of subsection (a).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s303">42 USC 303</ref>.</p></sidenote> <chapeau class="inline">Section 3 of such Act is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out paragraphs (1) and (3) of subsection (a);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by amending paragraph (2) of subsection (a) to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>in the case of Puerto Rico, the Virgin Islands, and Guam, an amount equal to one-half of the total of the sums expended during such quarter as old-age assistance under the State plan, not counting so much of any expenditure with respect to any month as exceeds $37.50 multiplied by the total number of recipients of old-age assistance for such month; plus”; and</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out subsection (d).</content></subparagraph> </paragraph> <page identifier="/us/stat/95/817">95 STAT. 817</page> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>Section 6 of such Act is amended by striking out subsections (b) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s306">42 USC 306</ref>.</p></sidenote>and (c).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 403 of such Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s603">42 USC 603</ref>.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>(including expenditures for premiums</quotedText>” and all that follows through “the cost thereof)” in subsection (a)(1) in the matter before subparagraph (A);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>plus (ii)</quotedText>” and all that follows through “clause (i) or (ii)” in subsection (a)(1)(A) and inserting in lieu thereof “<quotedText>plus (ii) the number of individuals, not counted under clause (1)</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out “<quotedText>(including expenditures</quotedText>” and all that follows through “the cost thereof)” in subsection (a)(2).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Section 406 of such Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s606">42 USC 606</ref>.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>, or (if provided</quotedText>” and all that follows through “under State law in behalf of,” and “or medical care or any type of remedial care recognized under State law” in subsection (b) in the matter preceding subparagraph (A), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by inserting “<quotedText>(for which such individual is not entitled to medical assistance under the State plan under title XIX)</quotedText>” in subsection (e)(1)(A) after “<quotedText>recognized under State law</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><content>Sections 1001 and 1401 of such Act are each amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1201/1351">42 USC 1201, 1351</ref>.</p></sidenote>striking out “<quotedText>and of encouraging each State</quotedText>” and all that follows through “self-care”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Sections 1003(a) and 1403(a) of such Act are each amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1203/1353">42 USC 1203, 1353</ref>.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out paragraph (1), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>(including expenditures for</quotedText>” and all that follows through “the cost thereof)” in paragraph (2).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Sections 1006 and 1405 of such Act are each amended by striking <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1206/1355">42 USC 1206, 1355</ref>.</p></sidenote>out “<quotedText>, or (if provided</quotedText>” and all that follows through “under State law in behalf of,” in the matter before paragraph (1).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num><content>The amendments made by this subsection are to the title XVI of the Social Security Act which only applies in the case of Puerto <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1381">42 USC 1381</ref>.</p></sidenote>Rico, Guam, and the Virgin Islands under section 303(b) of the Social Security Amendments of 1972 (Public Law 92–603). <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s301">42 USC 301 note</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The heading of such title is amended by striking out “<quotedText>AND MEDICAL ASSISTANCE</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>Section 1601 of such title is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1381">42 USC 1381 note</ref>.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>(a)</quotedText>” the first place it appears in the first sentence,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>, (b) of enabling</quotedText>” and all that follows through “or self-care” in the first sentence, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out “<quotedText>, or for aid to the aged, blind, or disabled and medical assistance for the aged</quotedText>” in the second sentence.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><chapeau>Section 1602 of such title is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382">42 USC 1382 note</ref>.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText><inline class="smallCaps">, or for such aid and medical assistance for the aged</inline></quotedText>” in the heading;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>, or for aid to the aged, blind, or disabled and medical assistance for the aged</quotedText>” in subsection (a) in the matter before paragraph (1);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by inserting “<quotedText>and</quotedText>” at the end of paragraph (13) of subsection (a);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>by striking out the semicolon at the end of paragraph (14) of subsection (a) and inserting in lieu thereof a period;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>by striking out paragraphs (15), (16), and (17) of subsection (a);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">(F) </num><content>by striking out “<quotedText>(or for aid to the aged, blind, or disabled and medical assistance for the aged)</quotedText>” in the second sentence of subsection (a);</content></subparagraph> <page identifier="/us/stat/95/818">95 STAT. 818</page> <subparagraph class="firstIndent1 fontsize10"><num value="G">(G) </num><content>by striking out “<quotedText>(A) in the case of applicants for aid to the aged, blind, or disabled</quotedText>” in subsection (b)(2);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="H">(H) </num><content>by striking out “<quotedText>and (B)</quotedText>” and all that follows through “who resides in the State” in subsection (b)(2); and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="I">(I) </num><content>by striking out “<quotedText>(or for aid to the aged, blind, or disabled and medical assistance for the aged)</quotedText>” each place it appears in the third sentence of subsection (b).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1383">42 USC 1383 note</ref>.</p></sidenote> <chapeau class="inline">Section 1603 of such title is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out paragraphs (1) and (3) of subsection (a);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>(including expenditures for premiums)</quotedText>” and all that follows through “cost thereof)” in paragraph (2)(A);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out “<quotedText>the larger of the following amounts: (i)</quotedText>”, “<quotedText>(I)</quotedText>”, and “<quotedText>, or (II)</quotedText>” and all that follows before the semicolon, in paragraph (2)(B); and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>by striking out subsection (d).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1385">42 USC 1385 note</ref>.</p></sidenote> <chapeau class="inline">Section 1605 of such title is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>, or (if provided</quotedText>” and all that follows through “under State law in behalf of,” in subsection (a) in the matter before paragraph (1), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out subsection (b).</content></subparagraph> </paragraph> </subsection> </section> </chapter> </subtitle> <subtitle><num value="D">Subtitle D— </num><sidenote><p class="indent0 firstIndent0 fontsize8">Maternal and Child Health Services Block Grant Act.</p></sidenote> <heading>Maternal and Child Health Services Block Grant</heading> <section> <heading class="centered smallCaps">short title of subtitle</heading><num value="2191"><inline class="smallCaps">Sec</inline>. 2191. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1305">42 USC 1305 note</ref>.</p></sidenote> <content class="inline">This subtitle may be cited as the “<shortTitle role="subtitle">Maternal and Child Health Services Block Grant Act</shortTitle>”.</content> </section> <section> <heading class="centered smallCaps">maternal and child health services block grant</heading><num value="2192"><inline class="smallCaps">Sec</inline>. 2192. </num><subsection class="inline"><num value="a">(a) </num><content>Title V of the Social Security Act is amended to read as follows: <quotedContent> <title><num value="V">“TITLE V—</num><heading>MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT</heading> <section> <heading class="centered smallCaps">“authorization of appropriations</heading><num value="501">“<inline class="smallCaps">Sec</inline>. 501. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s701">42 USC 701</ref>.</p></sidenote> <chapeau class="inline">For the purpose of enabling each State—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>to assure mothers and children (in particular those with low income or with limited availability of health services) access to quality maternal and child health services,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>to reduce infant mortality and the incidence of preventable diseases and handicapping conditions among children, to reduce the need for inpatient and long-term care services, to increase the number of children (especially preschool children) appropriately immunized against disease and the number of low income children receiving health assessments and follow-up diagnostic and treatment services, and otherwise to promote the health of mothers and children (especially by providing preventive and primary care services for low income children, and prenatal, delivery, and postpartum care for low income mothers),</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>to provide rehabilitation services for blind and disabled individuals under the age of 16 receiving benefits under title XVI <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1381">42 USC 1381</ref>.</p></sidenote>of this Act, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>to provide services for locating, and for medical, surgical, corrective, and other services, and care for, and facilities for <page identifier="/us/stat/95/819">95 STAT. 819</page>diagnosis, hospitalization, and aftercare far, children who are crippled or who are suffering from conditions leading to crippling;</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">and for the purpose of enabling the Secretary to provide for special projects of regional and national significance, research, and training with respect to maternal and child health and crippled children, for genetic disease testing, counseling, and information development and dissemination programs, and for grants relating to hemophilia (without regard to age), there are authorized to be appropriated $373,000,000 for fiscal year 1982 and for each fiscal year thereafter.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>For purposes of this title:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><chapeau>The term ‘consolidated health programs’ means the programs administered under the provisions of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>this title (relating to maternal and child health and crippled children’s services),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>section 1615(c) of this Act (relating to supplemental <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382d">42 USC 1382d</ref>.</p></sidenote>security income for disabled children),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>sections 316 (relating to lead-based paint poisoning <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s247a/1301/1320a/1320b–1">42 USC 247a, 1301, 1320a, 1320b–1</ref>.</p></sidenote>prevention programs), 1101 (relating to genetic disease programs), 1121 (relating to sudden infant death syndrome programs) and 1131 (relating to hemophilia treatment centers) of the Public Health Service Act, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>title IV of the Health Services and Centers Amendments of 1978 (Public Law 95–626; relating to adolescent <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s247b–1">42 USC 247b–1</ref>.</p></sidenote>pregnancy grants),</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">as such provisions were in effect before the date of the enactment of the Maternal and Child Health Services Block Grant Act.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The term ‘low income’ means, with respect to an individual <sidenote><p class="indent0 firstIndent0 fontsize8">“Low income.”</p></sidenote>or family, such an individual or family with an income determined to be below the nonfarm income official poverty line defined by the Office of Management and Budget and revised annually in accordance with section 624 of the Economic Opportunity Act of 1964. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2971d">42 USC 2971d</ref>.</p></sidenote></content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">“allotments to states and federal set-aside</heading><num value="502">“<inline class="smallCaps">Sec</inline>. 502. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Of the amount appropriated under section 501(a), <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s702">42 USC 702</ref>.</p></sidenote>the Secretary shall retain an amount equal to 15 percent thereof in the case of fiscal year 1982, and an amount equal to not less than 10, nor more than 15, percent thereof in the case of each fiscal year thereafter, for the purpose of carrying out (through grants, contracts, or otherwise) special projects of regional and national significance, training, and research and for the funding of genetic disease testing, counseling, and information development and dissemination programs and of comprehensive hemophilia diagnostic and treatment centers. The authority of the Secretary to enter into any contracts under this title is effective for any fiscal year only to such extent or in such amounts as are provided in appropriations Acts.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>For purposes of paragraph (1)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>amounts retained by the Secretary for training shall be used to make grants to public or nonprofit private institutions of higher learning for training personnel for health care and related services for mothers and children; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>amounts retained by the Secretary for research shall be used to make grants to, contracts with, or jointly financed cooperative agreements with, public or nonprofit institutions of higher learning and public or nonprofit private agencies and organizations engaged in research or in maternal and child <page identifier="/us/stat/95/820">95 STAT. 820</page>health or crippled children’s programs for research projects relating to maternal and child health services or crippled children’s services which show promise of substantial contribution to the advancement thereof.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>No funds may be made available by the Secretary under this subsection unless an application therefor has been submitted to, and approved by, the Secretary. Such application shall be in such form, be submitted in such manner, and contain and be accompanied by such information as the Secretary may specify. No such application may be approved unless it contains assurances that the applicant will use the funds provided only for the purposes specified in the approved application and will establish such fiscal control and fund accounting procedures as may be necessary to assure proper disbursement and accounting of Federal funds paid to the applicant under this title.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>From the remaining amounts appropriated under section 501(a) for any fiscal year, the Secretary shall allot to each State which has transmitted a description of intended activities and statement of assurances for the fiscal year under section 505, an amount determined as follows:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><chapeau>The Secretary shall determine, for each State—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><clause class="inline"><num value="i">(i) </num><content>the amount provided or allotted by the Secretary to the State and to entities in the State under the provisions of the consolidated health programs (as defined in section 501(b)(1)), other than for any of the projects or programs described in subsection (a), from appropriations for fiscal year 1981,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the proportion that such amount for that State bears to the total of such amounts for all the States, and</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><clause class="inline"><num value="i">(i) </num><content>the number of low income children in the State, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the proportion that such number of children for that State bears to the total of such numbers of children for all the States.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>For each of fiscal years 1982 and 1983, each such State shall be allotted for that fiscal year an amount equal to the State’s proportion (determined under paragraph (1)(A)(ii)) of the amounts available for allotment to all the States under this subsection for that fiscal year.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>For fiscal years beginning with fiscal year 1984, if the amount available for allotment under this subsection for that fiscal year—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>does not exceed the amount available under this subsection for allotment for fiscal year 1983, each such State shall be allotted for that fiscal year an amount equal to the State’s proportion (determined under paragraph (1)(A)(ii)) of the amounts available for allotment to all the States under this subsection for that fiscal year, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><chapeau>exceeds the amounts available under this subsection for allotment for fiscal year 1983, each such State shall be allotted for that fiscal year an amount equal to the sum of—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>the amount of the allotment to the State under this subsection in fiscal year 1983 (without regard to paragraph (3) of this subsection), and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>the State’s proportion (determined under paragraph (1)(B)(ii)) of the amount by which the allotment available under this subsection for all the States for that fiscal year exceeds the amount that was available under this subsection for allotment for all the States for fiscal year 1983.</content> </subclause> </clause> </subparagraph> </paragraph> <page identifier="/us/stat/95/821">95 STAT. 821</page> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>To the extent that all the funds appropriated under this title for a fiscal year are not otherwise allotted to States either because all the States have not qualified for such allotments under section 505 for the fiscal year or because some States have indicated in their descriptions of activities under section 505 that they do not intend to use the full amount of such allotments, such excess shall be allotted among the remaining States in proportion to the amount otherwise allotted to such States for the fiscal year without regard to this subparagraph.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>To the extent that all the funds appropriated under this title for a fiscal year are not otherwise allotted to States because some State allotments are offset under section 506(b)(2), such excess shall be allotted among the remaining States in proportion to the amount otherwise allotted to such States for the fiscal year without regard to this subparagraph.</content></subparagraph> </paragraph> </subsection> </section> <section> <heading class="centered smallCaps">“payments to states</heading><num value="503">“<inline class="smallCaps">Sec</inline>. 503. </num><subsection class="inline"><num value="a">(a) </num><content>From the sums appropriated therefor and the allotments <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s703">42 USC 703</ref>.</p></sidenote>available under section 502(b), the Secretary shall make payments as provided by section 203 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4213) to each State provided such an allotment under section 502(b), for each quarter, of an amount equal to four-sevenths of the total of the sums expended by the State during such quarter in carrying out the provisions of this title.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>Any amount payable to a State under this title from allotments for a fiscal year which remains unobligated at the end of such year shall remain available to such State for obligation during the next fiscal year. No payment may be made to a State under this title from allotments for a fiscal year for expenditures made after the following fiscal year.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><chapeau>The Secretary, at the request of a State, may reduce the amount of payments under subsection (a) by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the fair market value of any supplies or equipment furnished the State, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the amount of the pay, allowances, and travel expenses of any officer or employee of the Government when detailed to the State and the amount of any other costs incurred in connection with the detail of such officer or employee,</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">when the furnishing of supplies or equipment or the detail of an officer or employee is for the convenience of and at the request of the State and for the purpose of conducting activities described in section 505 on a temporary basis. The amount by which any payment is so reduced shall be available for payment by the Secretary of the costs incurred in furnishing the supplies or equipment or in detailing the personnel, on which the reduction of the payment is based, and the amount shall be deemed to be part of the payment and shall be deemed to have been paid to the State.</continuation> </subsection> </section> <section> <heading class="centered smallCaps">“use of allotment funds</heading><num value="504">“<inline class="smallCaps">Sec</inline>. 504. </num><subsection class="inline"><num value="a">(a) </num><content>Except as otherwise provided under this section, a <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s704">42 USC 704</ref>.</p></sidenote>State may use amounts paid to it under section 503 for the provision of health services and related activities (including planning, administration, education, and evaluation) consistent with its description of intended expenditures and statement of assurances transmitted under section 505.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>Amounts described in subsection (a) may not be used for—</chapeau> <page identifier="/us/stat/95/822">95 STAT. 822</page> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>inpatient services, other than inpatient services provided to crippled children or to high-risk pregnant women and infants and such other inpatient services as the Secretary may approve;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>cash payments to intended recipients of health services;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>the purchase or improvement of land, the purchase, construction, or permanent improvement (other than minor remodeling) of any building or other facility, or the purchase of major medical equipment;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>satisfying any requirement for the expenditure of non-Federal funds as a condition for the receipt of Federal funds; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>providing funds for research or training to any entity other than a public or nonprofit private entity.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">The Secretary may waive the limitation contained in paragraph (3) upon the request of a State if the Secretary finds that there are extraordinary circumstances to justify the waiver and that granting the waiver will assist in carrying out this title.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>A State may use a portion of the amounts described in subsection (a) for the purpose of purchasing technical assistance from public or private entities if the State determines that such assistance is required in developing, implementing, and administering programs funded under this title.</content> </subsection> </section> <section> <heading class="centered smallCaps">“description of intended expenditures and statement of assurances</heading><num value="505">“<inline class="smallCaps">Sec</inline>. 505. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s705">42 USC 705</ref>.</p></sidenote> <chapeau class="inline">In order to be entitled to payments for allotments under section 502 for a fiscal year, a State must prepare and transmit to the Secretary—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>a report describing the intended use of payments the State is to receive under this title for the fiscal year, including (A) a description of those populations, areas, and localities in the State which the State has identified as needing maternal and child health services, (B) a statement of goals and objectives for meeting those needs, (C) information on the types of services to be provided and the categories or characteristics of individuals to be served, and (D) data the State intends to collect respecting activities conducted with such payments; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>a statement of assurances that represents to the Secretary that—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the State will provide a fair method (as determined by the State) for allocating funds allotted to the State under this title among such individuals, areas, and localities identified under paragraph (1)(A) as needing maternal and child health services, and the State will identify and apply guidelines for the appropriate frequency and content of, and appropriate referral and followup with respect to, health care assessments and services financially assisted by the State under this title and methods for assuring quality assessments and services;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>funds allotted to the State under this title will only be used, consistent with section 508, to carry out the purposes of this title or to continue activities previously conducted under the consolidated health programs (described in section 502(b)(1));</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><chapeau>the State will use—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>a substantial proportion of the sums expended by the State for carrying out this title for the provision of health services to mothers and children, with special <page identifier="/us/stat/95/823">95 STAT. 823</page>consideration given (where appropriate) to the continuation of the funding of special projects in the State previously funded under this title (as in effect before the date of the enactment of the Maternal and Child Health Services Block Grant Act), and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>a reasonable proportion (based upon the State’s previous use of funds under this title) of such sums to carry out the purposes described in paragraphs (1) through (3) of section 501(a);</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>if the State imposes any charges for the provision of health services assisted by the State under this title, such charges (i) will be pursuant to a public schedule of charges, (ii) will not be imposed with respect to services provided to low income mothers or children, and (iii) will be adjusted to reflect the income, resources, and family size of the individual provided the services; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><chapeau>the State agency (or agencies) administering the State’s program under this title will participate—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>in the coordination of activities between such program and the early and periodic screening, diagnosis, and treatment program under title XIX, to ensure that such programs are carried out without duplication of effort,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>in the arrangement and carrying out of coordination agreements described in section 1902(a)(11) (relating to coordination of care and services available under this title and title XIX), and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>in the coordination of activities within the State with programs carried out under this title and related Federal grant programs (including supplemental food programs for mothers, infants, and children, related education programs, and other health, developmental disability, and family planning programs).</content> </clause> </subparagraph> <continuation class="indent0 firstIndent0 fontsize10">The description and statement shall be made public within the State in such manner as to facilitate comment from any person (including any Federal or other public agency) during development of the description and statement and after its transmittal. The description and statement shall be revised (consistent with this section) throughout the year as may be necessary to reflect substantial changes in any element of such description or statement, and any revision shall be subject to the requirements of the preceding sentence.</continuation> </paragraph> </section> <section> <heading class="centered smallCaps">“reports and audits</heading><num value="506">“<inline class="smallCaps">Sec</inline>. 506. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Each State shall prepare and submit to the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s706">42 USC 706</ref>.</p></sidenote>Secretary annual reports on its activities under this title. In order properly to evaluate and to compare the performance of different States assisted under this title and to assure the proper expenditure of funds under this title, such reports shall be in such form and contain such information as the Secretary determines (after consultation with the States and the Comptroller General) to be necessary (A) to secure an accurate description of those activities, (B) to secure a complete record of the purposes for which funds were spent, of the recipients of such funds, and of the progress made toward achieving the purposes of this title, and (C) to determine the extent to which funds were expended consistent with the State’s description and statement transmitted under section 505. Copies of the report shall be <page identifier="/us/stat/95/824">95 STAT. 824</page>provided, upon request, to any interested public agency, and each such agency may provide its views on these reports to the Congress.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary shall annually report to the Congress on activities funded under section 502(a) and shall provide for transmittal of a copy of such report to each State.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Each State shall, not less often than once every two years, audit its expenditures from amounts received under this title. Such State audits shall be conducted by an entity independent of the State agency administering a program funded under this title in accordance with the Comptroller General’s standards for auditing governmental organizations, programs, activities, and functions and generally accepted auditing standards. Within 30 days following the completion of each audit report, the State shall submit a copy of that audit report to the Secretary.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Each State shall repay to the United States amounts found by the Secretary, after notice and opportunity for a hearing to the State, not to have been expended in accordance with this title and, if such repayment is not made, the Secretary may offset such amounts against the amount of any allotment to which the State is or may become entitled under this title or may otherwise recover such amounts.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The Secretary may, after notice and opportunity for a hearing, withhold payment of funds to any State which is not using its allotment under this title in accordance with this title. The Secretary may withhold such funds until the Secretary finds that the reason for the withholding has been removed and there is reasonable assurance that it will not recur.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>The State shall make copies of the reports and audits required by this section available for public inspection within the State.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><content>For the purpose of evaluating and reviewing the block grant established under this title, the Secretary and the Comptroller General shall have access to any books, accounts, records, correspondence, or other documents that are related to such block grant, and that are in the possession, custody, or control of States, political subdivisions thereof, or any of their grantees.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>In conjunction with an evaluation or review under paragraph (1), no State or political subdivision thereof (or grantee of either) shall be required to create or prepare new records to comply with paragraph (1).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>For other provisions relating to deposit, accounting, reports, and auditing with respect to Federal grants to States, see section 202 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4212).</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">“criminal penalty for false statements</heading><num value="507">“<inline class="smallCaps">Sec</inline>. 507. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s707">42 USC 707</ref>.</p></sidenote> <chapeau class="inline">Whoever—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>knowingly and willfully makes or causes to be made any false statement or representation of a material fact in connection with the furnishing of items or services for which payment may be made by a State from funds allotted to the State under this title, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>having knowledge of the occurrence of any event affecting his initial or continued right to any such payment conceals or fails to disclose such event with an intent fraudulently to secure such payment either in a greater amount than is due or when no such payment is authorized,</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">shall be fined not more than $25,000 or imprisoned for not more than five years, or both.</continuation> </subsection> <page identifier="/us/stat/95/825">95 STAT. 825</page> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>For civil monetary penalties for certain submissions of false claims, see section 1128A of this Act. <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 789.</p></sidenote></content> </subsection> </section> <section> <heading class="centered smallCaps">“nondiscrimination</heading><num value="508">“<inline class="smallCaps">Sec</inline>. 508. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>For the purpose of applying the prohibitions <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s708">42 USC 708</ref>.</p></sidenote>against discrimination on the basis of age under the Age Discrimination Act of 1975, on the basis of handicap under section 504 of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s6101">42 USC 6101 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s794">29 USC 794</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1681">20 USC 1681</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2000d">42 USC 2000d</ref>.</p></sidenote>Rehabilitation Act of 1973, on the basis of sex under title IX of the Education Amendments of 1972, or on the basis of race, color, or national origin under title VI of the Civil Rights Act of 1964, programs and activities funded in whole or in part with funds made available under this title are considered to be programs and activities receiving Federal financial assistance.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>No person shall on the ground of sex or religion be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity funded in whole or in part with funds made available under this title.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>Whenever the Secretary finds that a State, or an entity that has received a payment from an allotment to a State under section 502(b), has failed to comply with a provision of law referred to in subsection (a)(1), with subsection (a)(2), or with an applicable regulation (including one prescribed to carry out subsection (a)(2)), he shall notify the chief executive officer of the State and shall request him to secure compliance. If within a reasonable period of time, not to exceed sixty days, the chief executive officer fails or refuses to secure compliance, the Secretary may—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>refer the matter to the Attorney General with a recommendation that an appropriate civil action be instituted,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>exercise the powers and functions provided by title VI of the Civil Rights Act of 1964, the Age Discrimination Act of 1975, or section 504 of the Rehabilitation Act of 1973, as may be applicable, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>take such other action as may be provided by law.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>When a matter is referred to the Attorney General pursuant to subsection (b)(1), or whenever he has reason to believe that the entity is engaged in a pattern or practice in violation of a provision of law referred to in subsection (a)(1) or in violation of subsection (a)(2), the Attorney General may bring a civil action in any appropriate district court of the United States for such relief as may be appropriate, including injunctive relief.</content> </subsection> </section> <section> <heading class="centered smallCaps">“administration of title and state programs</heading><num value="509">“<inline class="smallCaps">Sec</inline>. 509. </num><subsection class="inline"><num value="a">(a) </num><chapeau>The Secretary shall designate an identifiable administrative <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s709">42 USC 709</ref>.</p></sidenote>unit with expertise in maternal and child health within the Department of Health and Human Services, which unit shall be responsible for—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the Federal program described in section 502(a);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>promoting coordination at the Federal level of the activities authorized under this title and under title XIX of this Act, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396">42 USC 1396</ref>.</p></sidenote>especially early and periodic screening, diagnosis and treatment, related activities funded by the Departments of Agriculture and Education, and under health block grants and categorical health programs, such as immunizations, administered by the Secretary;</content></paragraph> <page identifier="/us/stat/95/826">95 STAT. 826</page> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>disseminating information to the States in such areas as preventive health services and advances in the care and treatment of mothers and children;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>providing technical assistance, upon request, to the States in such areas as program planning, establishment of goals and objectives, standards of care, and evaluation;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>in cooperation with the National Center for Health Statistics and in a manner that avoids duplication of data collection, collection, maintenance, and dissemination of information relating to the health status and health service needs of mothers and children in the United States; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>assisting in the preparation of reports to the Congress on the activities funded and accomplishments achieved under this title from the information required to be reported by the States under sections 505 and 506.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>The State health agency of each State shall be responsible for the administration (or supervision of the administration) of programs carried out with allotments made to the State under this title, except that, in the case of a State which on July 1, 1967, provided for administration (or supervision thereon of the State plan under this title (as in effect on such date) by a State agency other than the State health agency, that State shall be considered to comply the requirement of this subsection if it would otherwise comply but for the fact that such other State agency administers (or supervises the administration of) any such program providing services for crippled children.”.</content> </subsection> </section> (b) (1)

42 USC 706 note.

 The Secretary of Health and Human Services shall, no later than October 1, 1984, report to the Congress on the activities of States receiving allotments under title V of the Social Security Act (as amended by this section) and include in such report any recommendations for appropriate changes in legislation. (2) The Secretary of Health and Human Services, in consultation with the Comptroller General, shall examine alternative formulas, for the allotment of funds to States under section 502(b) of the Social Security Act (as amended by this section) which might be used as a substitute for the method of allotting funds described in such section, which provide for the equitable distribution of such funds to States (as defined for purposes of such section), and which take into account— (A) the populations of the States, (B) the number of live births in the States, (C) the number of crippled children in the States, (D) the number of low income mothers and children in the States, (E) the financial resources of the various States, and (F) such other factors as the Secretary deems appropriate, and shall report to the Congress thereon not later than June 30, 1982.
repeals and conforming amendmentsSec. 2193. (a) (1) (A)

42 USC 247a.

 Section 316(g) of the Public Health Service Act is amended by inserting “, and, subject to section 2194(b)(3) of the Maternal and Child Health Services Block Grant Act, $8,300,000 for the fiscal year ending September 30, 1982” before the period. (B)

42 USC 300b.

 Section 1101(b) of such Act is amended by inserting “and, subject to section 2194(b)(3) of the Maternal and Child Health

Post, p. 828.

Services Block Grant Act, $9,680,000 for the fiscal year ending September 30, 1982” before the period. 95 STAT. 827 (C) Section 1121(d)(1) of such Act is amended by inserting “; and,

42 USC 300c–11.

subject to section 2194(b)(3) of the Maternal and Child Health Services Block Grant Act, $2,075,000 for fiscal year 1982” before the

Post, p. 828.

period. (D) Section 1131(f) of such Act is amended by inserting “, and,

42 USC 300c–21.

subject to section 2194(b)(3) of the Maternal and Child Health Services Block Grant Act, $2,765,000 for the fiscal year ending September 30, 1982” before the period. (2) Section 607 of the Health Services and Centers Amendments of 1978 (Public Law 95–626) is amended by inserting “, and, subject to

42 USC 300a–27.

section 2194(b)(3) of the Maternal and Child Health Services Block Grant Act, $8,530,000 for the fiscal year ending September 30, 1982” before the period. (3) Section 501 of the Social Security Act (as in effect before the date the amendment made by section 2192(a) becomes effective) is

42 USC 701.

amended by striking out “for each fiscal year thereafter” and inserting in lieu thereof “and for each of the next three fiscal years, and, subject to section 2194(b)(3) of the Maternal and Child Health Services Block Grant Act, $317,580,000 for the fiscal year ending September 30, 1982”. (4) (A) Section 1615(e)(1) of the Social Security Act is amended by

42 USC 1382d.

inserting “and subject to section 2194(b)(3) of the Maternal and Child Health Services Block Grant Act” after “paragraphs (2) and (3)”. (B) Effective for fiscal year 1982, section 1615(e)(3) of such Act is amended by striking out “$30,000,000” and inserting in lieu thereof “$24,070,000”. (b) (1) Sections 316, 1101, 1121 and 1131 of the Public Health Service Act are repealed.

42 USC 247a, 300b, 300c–11, 300c–21.

42 USC 300b–3.

 (2) Section 1104(a) of such Act is amended by inserting “and” at the end of paragraph (3), by striking out paragraph (4), and by redesignating paragraph (5) as paragraph (4). (3) Section 1104 of such Act is further amended (A) by striking out subsections (b) and (d), (B) by striking out “or under section 1101” in subsection (c), and (C) by redesignating subsection (c) as subsection (b). (4) Sections 1106 and 227 of such Act are repealed.

42 USC 300b–5, 236.

42 USC 300b–6.

 (5) Section 1107 of such Act is amended by striking out “appropriated under section 1101(b)” and inserting in lieu thereof “allotted for use under section 502(a) of the Social Security Act”. (c) (1) Section 1108(d) of the Social Security Act is amended by

42 USC 1308.

striking out “section 502(a)” and all that follows through “1967” and inserting in lieu thereof “section 421”. (2) Section 1101(a)(9)(D) of such Act is amended by striking out “V,

42 USC 1301.

XVIII, and XIX” and inserting in lieu thereof “XVIII and XIX”. (3) Section 1122 of such Act is amended—

42 USC 1320a–1.

 (A) by striking out “V, XVIII, and XIX” and inserting in lieu thereof “XVIII and XIX” each place it appears, and (B) by striking out “V, XVIII, or X” in subsection (d)(2) and inserting in lieu thereof “XVIII or XIX”. (4) Section 1129 of such Act is amended—

42 USC 1320a–8.

 (A) by striking out “V or” each place it appears in subsection (a), and (B) by striking out “V, XVIII, or” in subsection (b)(2) and inserting in lieu thereof “XVIII or”. (5) Section 1132(a)(1) of such Act is amended by striking out “V,”.

42 USC 1320b–2.

42 USC 1320b–4.

 (6) Section 1134 of such Act is amended by striking out “V, XVIII,” and inserting in lieu thereof “XVIII”. (7) Section 1172(4) of such Act is amended by striking out “V,”.

42 USC 1320c–21.

 95 STAT. 828 (8) (A)

42 USC 1382d.

 Subsection (a) of section 1615 of such Act is amended by striking out “appropriate State agency administering the State plan under subsection (b) of this section, and (except in such cases” and inserting in lieu thereof “State agency administering the State

Ante, p. 818.

program under title V, and (except for individuals who have not attained age 16 and except in such other cases”. (B) Subsections (b) and (e) of such section are repealed. (9)

42 USC 1395x.

42 USC 1396a.

 Section 1861(w)(2) of such Act is amended by striking out “V or”. (9) Section 1902(a)(11)(B) of such Act is amended— (A) by striking out “for part or all of the cost of plans or projects under” and inserting in lieu thereof “under (or through an allotment under)”, and (B) by striking out “such plan or project under title V” and inserting in lieu thereof “such title or allotment”. (d) (1) The second sentence of section 402(a)(1) of the Social Security

42 USC 1395b–1.

Amendments of 1967 (P.L. 90–248) is amended— (A) by striking out “title XVIII of such Act,” and inserting in lieu thereof “title XVIII of such Act and”, and (B) by striking out the “, and a program established by a plan of a State approved under title V of such Act”. (2) Section 402(a)(2) of such Act is amended by striking out “titles V and XIX” and inserting in lieu thereof “title XIX” both places it occurs. (3) Section 402(b) of such Act is amended by striking out “, XIX, and V” and inserting in lieu thereof “and XIX”. (e) (1)

42 USC 1395b–1 note.

 Section 222(a)(1) of the Social Security Amendments of 1972 (P.L. 92–603) is amended by striking out “titles XIX and V” and inserting in lieu thereof “title XIX”. (2) The first sentence of section 222(a)(3) of such Act is amended by striking out “, XIX, and V” and inserting in lieu thereof “and XIX”. (3) Section 222(a)(4) of such Act is amended by striking out “titles V and XIX” and inserting in lieu thereof “title XIX” both places it appears. (f)

42 USC 300a–21, 300a–41.

42 USC 1320a–8 note.

 Titles VI and VII of the Health Services and Centers Amendments of 1978 (P.L. 95–626) are repealed. (g) Section 914(d) of the Omnibus Reconciliation Act of 1980 (P.L. 96–499; 94 Stat. 2622) is amended by striking out “V, XVIII,” and inserting in lieu thereof “XVIII”.
effective date; transitionSec. 2194. (a)

42 USC 701 note.

 Except as otherwise provided in this section, the amendments made by sections 2192 and 2193 of this subtitle do not apply to any grant made, or contract entered into, or amounts payable to States under State plans before the earlier of— (1) October 1, 1982, or (2) (A) in the case of such grants, contracts, or payments under consolidated State programs (as defined in subsection (c)(2)(C)) to a State (or entities in the State), the date the State is first entitled to an allotment under title V of the Social Security Act (as amended by this subtitle), or (B) in the case of grants and contracts under consolidated Federal programs (as defined in subsection (c)(2)(B)), October 1, 1981, or such later date (before October 1, 1982) as the Secretary determines to be appropriate. (b) (1) The Secretary of Health and Human Services (hereinafter in this section referred to as the “Secretary”) may not provide for any allotment to a State under title V of the Social Security Act (as 95 STAT. 829amended by this subtitle) for a calendar quarter in fiscal year 1982 unless the State has notified the Secretary, at least 30 days (or 15 days in the case of the first calendar quarter of the fiscal year) before the beginning of the calendar quarter, that the State requests an allotment for that calendar quarter (and subsequent calendar quarters). (2) (A) Any grants or contracts entered into under the authorities of the consolidated State programs (as defined in subsection (c)(2)(C)) after the date of the enactment of this subtitle shall permit the termination of such grant or contract upon three months notice by the State in which the grantee or contractor is located. (B) The Secretary shall not make or renew any grants or contracts under the provisions of the consolidated State programs (as defined in subsection (c)(2)(C)) to a State (or an entity in the State) after the date the State becomes entitled to an allotment of funds under title V of the Social Security Act (as amended by this subtitle). (3) (A) In the case of funds appropriated for fiscal year 1982 for consolidated health programs (as defined in subsection (c)(2)(A)), such funds shall (notwithstanding any other provision of law) be available for use under title V of the Social Security Act (as amended by this subtitle), subject to subparagraphs (B) and (C). (B) Notwithstanding any other provision of law— (i) the amount that may be made available for expenditures for the consolidated Federal programs for fiscal year 1982 and for projects and programs under section 502(a) of the Social Security Act (as amended by this subtitle) may not exceed the amount provided for projects and programs under such section 502(a) for that fiscal year, and (ii) the amount that may be made available to a State (or entities in the State) for carrying out the consolidated State programs for fiscal year 1982 and for allotments to the State under section 502(b) of the Social Security Act (as amended by this subtitle) may not exceed the amount which is allotted to the State for that fiscal year under such section (without regard to paragraphs (3) and (4) thereof). (C) For fiscal year 1982, the Secretary shall reduce the amount which would otherwise be available— (i) for expenditures by the Secretary under section 502(a) of the Social Security Act (as amended by this subtitle) by the amounts which the Secretary determines or estimates are payable for consolidated Federal programs (as defined in subsection (c)(2)(B)) from funds for fiscal year 1982, and (ii) for allotment to each of the States under section 502(b) of such Act (as so amended) by the amounts which the Secretary determines or estimates are payable to that State (or entities in the State) under the consolidated State programs (as defined in subsection (c)(2)(C)) from funds for fiscal year 1982. (c) For purposes of this section:

Definitions.

 (1) The term “State” has the meaning given such term for purposes of title V of the Social Security Act. (2) (A) The term “consolidated health programs” has the meaning given such term in section 501(b) of the Social Security Act (as amended by this subtitle). (B) The term “consolidated Federal programs” means the consolidated health programs— (i) of special projects grants under sections 503 and 504, and training grants under section 511, of the Social Security Act, 95 STAT. 830 (ii) of grants and contracts for genetic disease projects and programs under section 1101 of the Public Health Service

42 USC 300b.

Act, and (iii) of grants or contracts for comprehensive hemophilia diagnostic and treatment centers under section 1131 of the

42 USC 300c–21.

Public Health Service Act, as such sections are in effect before the date of the enactment of this subtitle. (C) The term “consolidated State programs” means the consolidated health programs, other than the consolidated Federal programs. (d)

Ante, p. 762.

 The provisions of chapter 2 of subtitle C of title XVII of this Act shall not apply to this subtitle (or the programs under the amendments

Ante, p. 764.

made by this title) and, specifically, section 1745 of this Act shall not apply to financial and compliance audits conducted under

42 USC 706.

section 506(b) of the Social Security Act (as amended by this subtitle).
<num value="XXII">TITLE XXII—</num><heading>FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE PROGRAM</heading> <toc> <heading class="centered smallCaps">Table of Contents of Title.</heading> <referenceItem role="section"><designator>Sec. 2201.</designator> <label>Repeal of minimum benefit provisions.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2202.</designator> <label>Restrictions on the lump-sum death payment.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2203.</designator> <label>Payment of certain benefits only for months after month in which entitlement conditions are fulfilled.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2204.</designator> <label>Temporary extension of earnings limitation to include all persons aged less than seventy-two.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2205.</designator> <label>Termination of mother’s and father’s benefits when child attains age sixteen.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2206.</designator> <label>Rounding of benefits.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2207.</designator> <label>Requests for information; cost reimbursement.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2208.</designator> <label>Reduction in disability benefits on account of other related payments; extension of offset to disabled worker beneficiaries aged 62 through 64 and their families; change in month in which payments are offset.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2209.</designator> <label>Reimbursement of States for successful rehabilitation services.</label></referenceItem> <referenceItem role="section"><designator>Sec. 2210.</designator> <label>Elimination of child’s insurance benefits in the case of children aged 18 through 22 who attend postsecondary schools.</label></referenceItem> </toc> <section> <heading class="centered smallCaps">repeal of minimum benefit provisions</heading><num value="2201"><inline class="smallCaps">Sec</inline>. 2201. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s415">42 USC 415</ref>.</p></sidenote> <content class="inline">Section 215(a)(1)(C)(i) of the Social Security Act is amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><clause class="inline"><num value="i">(i) </num><content>No primary insurance amount computed under subparagraph (A) may be less than an amount equal to $11.50 multiplied by the individual’s years of coverage in excess of 10, or the increased amount determined for purposes of this clause under subsection (i).”.</content> </clause> </subparagraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 215(a)(1)(C)(ii) of such Act is amended by striking out “<quotedText>For purposes of clause (i)(II)</quotedText>” and inserting in lieu thereof “<quotedText>For purposes of clause (i)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 215(a)(3)(A) of such Act is amended by striking out “<quotedText>subparagraph (C)(i)(II)</quotedText>” and inserting in lieu thereof “<quotedText>subparagraph (C)(i)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>Section 215(a)(4) of such Act is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>subparagraph (C)(i)(II)</quotedText>” and inserting in lieu thereof “<quotedText>subparagraph (C)(i)</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>in subclause (I) thereof, by striking out “<quotedText>but without regard to clauses (iv) and (v) thereof</quotedText>”.</content></subparagraph> </paragraph> <page identifier="/us/stat/95/831">95 STAT. 831</page> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Section 215(f)(8) of such Act is amended by striking out “<quotedText>subsection <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s415">42 USC 415</ref>.</p></sidenote>(a)(1)(C)(i)(II)</quotedText>” and inserting in lieu thereof “<quotedText>subsection (a)(1)(C)(i)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>Section 215(i)(2)(A)(ii)(II) of such Act is amended by striking out “<quotedText>(including a primary insurance amount determined under subsection (a)(1)(C)(i)(I), but subject to the provisions of such subsection (a)(1)(C)(i) and clauses (iv) and (v) of this subparagraph)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>Section 215(i)(2)(A)(ii) of such Act is amended in the matter following subclause (III) by striking out “<quotedText>subparagraph (C)(i)(II)</quotedText>” and inserting in lieu thereof “<quotedText>subparagraph (C)(i)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>Section 215(i)(2)(A)(iii) of such Act is amended by striking out “<quotedText>and, with respect to a primary insurance amount determined under subsection (a)(1)(C)(i)(I), subject to the provisions of subsection (a)(1)(C)(i) and clauses (iv) and (v) of this subparagraph</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>Section 215(i)(2)(A) of such Act is amended by striking out clauses (iv) and (v) thereof.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">(9) </num><content>Section 215(i)(2)(D) of such Act is amended by striking out “<quotedText>subparagraph (C)(i)(II)</quotedText>” each place it appears and inserting in lieu thereof in each instance “<quotedText>subparagraph (C)(i)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">(10) </num><content>Section 202(m) of such Act is repealed. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="11">(11) </num><content>Paragraphs (1) and (5) of section 202(w) of such Act are each amended by striking out “<quotedText>section 215(a)(1)(C)(i)(II)</quotedText>” and inserting in lieu thereof in each instance “<quotedText>section 215(a)(1)(C)(i)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="12">(12) </num><content>Section 233(c)(2) of such Act is amended to read as follows: <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s433">42 USC 433</ref>.</p></sidenote> <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Any such agreement may provide that an individual who is entitled to cash benefits under this title shall, notwithstanding the provisions of section 202(t), receive such benefits while he resides in a foreign country which is a party to such agreement.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 215(a) of such Act is amended by adding at the end <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s415">42 USC 415</ref>.</p></sidenote>thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><subparagraph class="inline"><num value="A">(A) </num><content>The table of benefits in effect in December 1978 under this section, referred to in paragraph (4) in the matter following subparagraph (B) and in paragraph (5), revised as provided by subsection (i), as applicable, shall be extended for average monthly wages of less than $76.00 and primary insurance benefits (as determined under subsection (d)) of less than $16.20.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>The Secretary shall determine and promulgate in regulations the methodology for extending the table under subparagraph (A).”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 215(a)(4) of such Act is amended, in the matter following subparagraph (B), by inserting “<quotedText>, as modified by paragraph (6),</quotedText>” after “<quotedText>table of benefits in effect in December 1978</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>Section 215(a)(5) of such Act is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by inserting before the period at the end of the first sentence the following: “<quotedText>, and the table for determining primary insurance amounts and maximum family benefits contained in this section in December 1978 shall be modified as specified in paragraph (6)</quotedText>”; and</content></subparagraph> <paragraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>in the last sentence by inserting “<quotedText>, modified by the application of paragraph (6),</quotedText>” after “<quotedText>December 1978</quotedText>”.</content></paragraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Section 215(f)(7) of such Act is amended by adding at the end thereof the following new sentence: “The recomputation shall be modified by the application of section 215(a)(6), where applicable.”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>Section 215(i)(4) of such Act is amended by inserting “<quotedText>, modified by the application of subsection (a)(6),</quotedText>” after “<quotedText>December 1978</quotedText>” each place it appears.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>Section 203(a)(8) of such Act is amended by inserting “<quotedText>, modified <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s403">42 USC 403</ref>.</p></sidenote>by the application of section 215(a)(6)</quotedText>” before “<quotedText>, except that</quotedText>”.</content></paragraph> <page identifier="/us/stat/95/832">95 STAT. 832</page> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s417">42 USC 417</ref>.</p></sidenote> <content class="inline">Section 217(b)(1) of such Act is amended by inserting before the period at the end of the first sentence the following: “<quotedText>, and as modified by the application of section 215(a)(6)</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402</ref>.</p></sidenote> <content class="inline">Section 202(q)(4) of such Act is amended by striking out “<quotedText>increased</quotedText>” and “increase” each place they appear and inserting in lieu thereof “<quotedText>changed</quotedText>” and “change”, respectively.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 202(q)(10) of such Act is amended in the matter preceding subparagraph (A) by striking out “<quotedText>increased</quotedText>”, “<quotedText>increase</quotedText>”, and “<quotedText>increases</quotedText>” each place they appear and inserting in lieu thereof “<quotedText>changed</quotedText>”, “<quotedText>change</quotedText>”, and “<quotedText>changes</quotedText>”, respectively.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Primary insurance amounts, recalculation.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s415">42 USC 415 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s415">42 USC 415</ref>.</p></sidenote> <chapeau class="inline">The Secretary of Health and Human Services shall recalculate the primary insurance amounts applicable to—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>beneficiaries whose benefits are based on a primary insurance amount that was computed under section 215(a)(1)(C)(i)(I) of the Social Security Act, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>beneficiaries with average monthly wages of less than $76.00 and primary insurance benefits of less than $16.20 whose benefits are based on primary insurance amounts computed under section 215(a)(4) or section 215(a)(5) of such Act.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>In the case of individuals to whom sections 215(a)(1) and 215(a)(4) of such Act as in effect after December 1978 do not apply, the Secretary shall recalculate the primary insurance amount computed under section 215 as in effect in December 1978 as though the individual had first become entitled in December 1978; except that—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the table in, or deemed to be in, the law as the result of the amendments made by subsection (c)(1) of this section shall be used in lieu of the table in effect in December 1978;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>in the case of individuals who were born after January 1, 1913, the first sentence of section 215(b)(3) of the law as so in effect shall be deemed to read: “For purposes of paragraph (2), the number of an individual’s elapsed years is the number of calendar years after 1950 (or, if later, after the year of attainment of age 21) and before 1961 or, if later, the earlier of the year in which such individual died or attained age 62.”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>in the case of individuals who were born prior to January 2, 1913, the first sentence of section 215(b)(3) of the law as so in effect shall be deemed to read: “For purposes of paragraph (2), the number of an individual’s elapsed years is the number of calendar years after 1950 and before 1961 or, if later, the earlier of the year in which such individual died or attained, in the case of a man (except as provided by section 104(j) of Public Law <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s414">42 USC 414 note</ref>.</p></sidenote>92–603) age 65, or in the case of a woman, age 62.”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>section 215(b)(4) of the law as so in effect shall be disregarded;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>section 215(d)(2)(C) of the law as so in effect shall be disregarded;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">(F) </num><content>section 215(d)(4) of the law as so in effect shall be deemed, for purposes of such recalculation, to read: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>The provisions of this subsection as in effect in December 1977 (but without regard to paragraph (2)(C)) shall be applicable to individuals who became eligible for old-age or disability insurance benefits or died prior to 1978.”;</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="G">(G) </num><content>in the case of individuals who became disabled, died, or attained age 65 prior to 1951, the Secretary shall by regulations provide an alternative computation in lieu of the computation provided by the law as so in effect (and modified by this paragraph); and</content></subparagraph> <page identifier="/us/stat/95/833">95 STAT. 833</page> <subparagraph class="firstIndent1 fontsize10"><num value="H">(H) </num><content>in no event may the recalculated primary insurance amount exceed the primary insurance amount that is based on an average monthly wage of $76.00 or the primary insurance amount that is based on a primary insurance benefit of $16.20.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>In the case of individuals to whom either section 215(a) (1) or (4) of such Act apply, the primary insurance amount shall be recalculated <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s415">42 USC 415</ref>.</p></sidenote>under section 215 as in effect after December 1978; except that the table in or deemed to be in the law as a result of the amendments made by subsection (c)(1) of this section shall be used (where appropriate) in lieu of the table in effect in December 1978.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>The first sentence of section 202(i) of such Act is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 834.</p></sidenote>inserting after “<quotedText>primary insurance amount</quotedText>” the following: “<quotedText>(as determined without regard to the amendments made by section 2201 of the Omnibus Budget Reconciliation Act of 1981, relating to the <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 830.</p></sidenote>repeal of the minimum benefit provisions)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>Part A of title XVI of the Social Security Act is amended by adding at the end thereof the following new section: <quotedContent> <section> <heading class="centered smallCaps">“benefits for individuals formerly receiving minimum benefits under title ii</heading><num value="1622">“<inline class="smallCaps">Sec</inline>. 1622. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Any individual who— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382k">42 USC 1382k</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>is 60 years of age or older but has not attained the age of 65;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>would be an eligible individual or eligible spouse under section 1611 if such individual were 65 years of age; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382">42 USC 1382</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>is not otherwise eligible for a benefit under section 1611;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>for the month of February 1982 was entitled to a monthly benefit under title II of this Act for which he made application <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s401">42 USC 401</ref>.</p></sidenote>prior to March 1, 1982, as determined without regard to any deductions on account of work required by section 203, which <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s403">42 USC 403</ref>.</p></sidenote>entitlement amount (as so determined) was reduced for any month by reason of the amendments made by section 2201 of the Omnibus Budget Reconciliation Act of 1981 (relating to the repeal of the minimum benefit provisions); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>is not entitled under title II to a monthly benefit, as determined without regard to any deductions on account of work required by section 203, in an amount equal to or greater than such entitlement amount (as so determined) for February 1982;</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">shall be eligible for a benefit for each month in which he meets the requirements of this subsection in an amount determined under subsection (b) or (c).</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>The amount of the monthly benefit payable under subsection (a) shall be the amount of the monthly benefit which would otherwise be payable to such individual under this title if he were 65 years of age; except that—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><chapeau>the amount of such monthly benefit shall not exceed—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>in the case of an individual described in subsection (a) who does not have an eligible spouse, an amount equal to the amount by which such individual’s monthly benefit entitlement under title II for such month as determined without regard to any deductions on account of work required by section 203, is less than the amount of such individuals monthly benefit entitlement under title II for February 1982 (as so determined); or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>in the case of an individual and his spouse, both of whom are individuals described in subsection (a), an amount equal to the amount by which the combined amount of their monthly benefit entitlements under title II for such month <page identifier="/us/stat/95/834">95 STAT. 834</page>(as so determined), is less than the combined amount of their <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s401">42 USC 401</ref>.</p></sidenote>monthly benefit entitlements under title 11 for February 1982 (as so determined);</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the benefit amount shall be determined on the basis of the dollar amounts applicable under this title for February 1982 (without regard to cost-of-living adjustments made after February <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382f">42 USC 1382f</ref>.</p></sidenote>1982 under section 1617) in the case of any individuals described in paragraph (1); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>in the case of an individual described in subsection (a) who has a spouse eligible for benefits under this title, other than by reason of this section, the amount of such monthly benefit for such individual (described in subsection (a)) shall be determined under subsection (c), and the amount of the monthly benefit for such spouse shall be determined in the same manner as for an individual who does not have an eligible spouse.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><chapeau>The amount of the monthly benefit for an individual described in subsection (b)(3) shall be an amount equal to the amount by which—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the monthly benefit amount for which such individual and his spouse would be eligible for such month under this title if both he and his spouse were 65 years of age, determined on the basis of the dollar amounts applicable under this title for February 1982 (without regard to cost-of-living adjustments made after February 1982 under section 1617); exceeds</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the monthly benefit amount under this title for which his spouse is eligible for such month;</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">except that the amount of such monthly benefit shall not exceed the amount by which such individual’s monthly benefit entitlement under title II for such month, as determined without regard to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s403">42 USC 403</ref>.</p></sidenote>deductions on account of work under section 203, is less than his monthly benefit entitlement under title 11 (as so determined) for February 1982.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>An individual who is entitled to a benefit under this section shall not be considered to be an individual receiving supplemental security income benefits under this title for purposes of section 1616 <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382e">42 USC 1382e</ref>.</p></sidenote>of this title or of any provision of law other than this title.”.</content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective dates.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382k">42 USC 1382k note</ref>.</p></sidenote> <chapeau class="inline">This section and the amendments made thereby shall be effective with respect to—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>benefits payable for months after October 1981 in the case of individuals who initially become eligible for benefits under <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s401">42 USC 401</ref>.</p></sidenote>title II of the Social Security Act after October 1981; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>benefits payable for months after February 1982 in the case of all other individuals.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>For purposes of this subsection, eligibility shall be determined in accordance with paragraphs (2)(A) and (3)(B) of section 215(a) of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s415">42 USC 415</ref>.</p></sidenote>Social Security Act.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">restrictions on the lump-sum death payment</heading><num value="2202"><inline class="smallCaps">Sec</inline>. 2202. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402</ref>.</p></sidenote> <chapeau>Section 202(i) of the Social Security Act is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>in the second sentence, by striking out paragraphs (1), (2), (3), and (4) and inserting in lieu thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s416">42 USC 416</ref>.</p></sidenote> <content class="inline">to a widow (as defined in section 216(c)) or widower (as defined in section 216(g)) who is entitled (or would have been so entitled had a timely application been filed), on the basis of the wages and self-employment income of such insured individual, to <page identifier="/us/stat/95/835">95 STAT. 835</page>benefits under subsection (e), (f), or (g) of this section for the month in which occurred such individual’s death; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>if no person qualifies for payment under paragraph (1), or if such person dies before receiving payment, in equal shares to each person who is entitled (or would have been so entitled had a timely application been filed), on the basis of the wages and self-employment income of such insured individual, to benefits under subsection (d) of this section for the month in which occurred such individual’s death.”; and</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>in the third sentence, by striking out “<quotedText>(except a payment as authorized pursuant to clause (1)(A) of the preceding sentence)</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>Section 216(c) of such Act is amended by inserting “<quotedText>the first <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s416">42 USC 416</ref>.</p></sidenote>sentence of</quotedText>” before “<quotedText>section 202(i)</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Section 216(g) of such Act is amended by inserting “<quotedText>the first sentence of</quotedText>” before “<quotedText>section 202(i)</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The amendments made by subsection (a) shall apply only with <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402 note</ref>.</p></sidenote>respect to deaths occurring after August 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">payment of certain benefits only for months after month in which entitlement conditions are fulfilled</heading><num value="2203"><inline class="smallCaps">Sec</inline>. 2203. </num><subsection class="inline"><num value="a">(a) </num><content>Section 202(a) of the Social Security Act is amended <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402</ref>.</p></sidenote>by striking out so much of the first sentence as follows paragraph (3) and inserting in lieu thereof the following: <quotedContent> <p class="indent0 firstIndent0 fontsize10">“shall be entitled to an old-age insurance benefit for each month, beginning with—</p> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>in the case of an individual who has attained age 65, the first month in which such individual meets the criteria specified in paragraphs (1), (2), and (3), or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>in the case of an individual who has attained age 62, but has not attained age 65, the first month throughout which such individual meets the criteria specified in paragraphs (1) and (2) (if in that month he meets the criterion specified in paragraph (3)),</content></subparagraph> <p class="indent0 firstIndent0 fontsize10">and ending with the month preceding the month in which he dies.”.</p> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 202(b)(1) of such Act is amended by striking out the matter that follows subparagraph (D) and precedes subparagraph (E) and inserting in lieu thereof the following: <quotedContent> <p class="indent0 firstIndent0 fontsize10">“shall (subject to subsection (s)) be entitled to a wife’s insurance benefit for each month, beginning with—</p> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>in the case of a wife or divorced wife (as so defined) of an individual entitled to old-age benefits, if such wife or divorced wife has attained age 65, the first month in which she meets the criteria specified in subparagraphs (A), (B), (C), and (D), or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><chapeau>in the case of a wife or divorced wife (as so defined) of—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>an individual entitled to old-age insurance benefits, if such wife or divorced wife has not attained age 65, or</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>an individual entitled to disability insurance benefits,</content> </subclause> <continuation class="indent0 firstIndent0 fontsize10">the first month throughout which she is such a wife or divorced wife and meets the criteria specified in subparagraphs (B), (C), and (D) (if in such month she meets the criterion specified in subparagraph (A)),</continuation> </clause> <p class="indent0 firstIndent0 fontsize10">whichever is earlier, and ending with the month preceding the month in which any of the following occurs—”.</p> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 216(b) of such Act is amended by adding at the end <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s416">42 USC 416</ref>.</p></sidenote>thereof the following new sentences: “For purposes of clause (2), a wife shall be deemed to have been married to an individual for a period of one year throughout the month in which occurs the first anniversary of her marriage to such individual. For purposes of <page identifier="/us/stat/95/836">95 STAT. 836</page><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402</ref>.</p></sidenote>subparagraph (C) of section 202(b)(1), a divorced wife shall be deemed not to be married throughout the month in which she becomes divorced.”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 202(c)(1) of such Act is amended by striking out the matter that follows subparagraph (C) and precedes the colon and inserting in lieu thereof the following: <quotedContent> <p class="indent0 firstIndent0 fontsize10">“shall be entitled to a husband’s insurance benefit for each month, beginning with—</p> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>in the case of a husband (as so defined) of an individual who is entitled to an old-age insurance benefit, if such husband has attained age 65, the first month in which he meets the criteria specified in subparagraphs (A), (B), and (C), or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><chapeau>in the case of a husband (as so defined) of—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>an individual entitled to old-age insurance benefits, if such husband has not attained age 65, or</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>an individual entitled to disability benefits,</content> </subclause> <continuation class="indent0 firstIndent0 fontsize10">the first month throughout which he is such a husband and meets the criteria specified in subparagraphs (B) and (C) (if in such month he meets the criterion specified in subparagraph (A)),</continuation> </clause> <p class="indent0 firstIndent0 fontsize10">whichever is earlier, and ending with the month preceding the month in which any of the following occurs”.</p> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s416">42 USC 416</ref>.</p></sidenote> <content class="inline">Section 216(f) of such Act is amended by adding at the end thereof the following new sentence: “For purposes of clause (2), a husband shall be deemed to have been married to an individual for a period of one year throughout the month in which occurs the first anniversary of his marriage to her.”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402</ref>.</p></sidenote> <content>Section 202(d)(1) of such Act is amended by striking out so much of the first sentence as follows subparagraph (C) and precedes subparagraph (D) and inserting in lieu thereof the following: <quotedContent> <p class="indent0 firstIndent0 fontsize10">“shall be entitled to a child’s insurance benefit for each month, beginning with—</p> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>in the case of a child (as so defined) of such an individual who has died, the first month in which such child meets the criteria specified in subparagraphs (A), (B), and (C), or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>in the case of a child (as so defined) of an individual entitled to an old-age insurance benefit or to a disability insurance benefit, the first month throughout which such child is a child (as so defined) and meets the criteria specified in paragraphs (B) and (C) (if in such month he meets the criterion specified in paragraph (A)),</content> </clause> <p class="indent0 firstIndent0 fontsize10">whichever is earlier, and ending with the month preceding whichever of the following first occurs—”.</p> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 202(d)(7) of such Act is amended by adding at the end of subparagraph (A) the following new sentence: “An individual who is determined to be a full-time elementary or secondary school student shall be deemed to be such a student throughout the month with respect to which such determination is made.”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s416">42 USC 416</ref>.</p></sidenote> <content class="inline">Section 216(e) of such Act is amended by adding at the end thereof the following new sentences: “For purposes of clause (2), a child shall be deemed to have been the stepchild of an individual for a period of one year throughout the month in which occurs the expiration of such one year. For purposes of clause (3), a person shall be deemed to have no natural or adoptive parent living (other than a parent who was under a disability) throughout the most recent month in which a natural or adoptive parent (not under a disability) dies.”.</content></paragraph> <page identifier="/us/stat/95/837">95 STAT. 837</page> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Section 216(h) of such Act is amended by adding at the end of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s416">42 USC 416</ref>.</p></sidenote>paragraph (3) the following new sentence: “For purposes of subparagraph (A)(i), an acknowledgement, court decree, or court order shall be deemed to have occurred on the first day of the month in which it actually occurred.”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><chapeau>Section 226(a)(2) of such Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2263">94 Stat. 2263</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s426">42 USC 426</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>or</quotedText>” after “<quotedText>section 202,</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting, immediately after “<quotedText>therefor)</quotedText>” the following: “<quotedText>, or would be entitled to such benefits but for the failure of another individual, who meets all the criteria of entitlement to monthly insurance benefits, to meet such criteria throughout a month,</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><paragraph class="inline"><num value="1">(1) </num><content>The amendments made by subsections (a), (b), and (c) of this <sidenote><p class="indent0 firstIndent0 fontsize8">Effective dates.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402 note</ref>.</p></sidenote>section shall apply only to monthly insurance benefits payable to individuals who attain age 62 after August 1981.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The amendments made by subsection (d) of this section shall apply to monthly insurance benefits for months after August 1981, and only in the case of individuals who were not entitled to such insurance benefits for August 1981 or any preceding month.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The amendments made by subsection (e) of this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s426">42 USC 426 note</ref>.</p></sidenote>apply only to individuals aged 65 and over whose insured spouse attains age 62 after August 1982.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">temporary extension of earnings limitation to include all persons aged less than seventy-two</heading><num value="2204"><inline class="smallCaps">Sec</inline>. 2204. </num><subsection class="inline"><num value="a">(a) </num><content>Notwithstanding subsection (e) of section 302 of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s403">42 USC 403 note</ref>.</p></sidenote>Social Security Amendments of 1977 (91 Stat. 1531; Public Law 95–216), the amendments made to section 203 of the Social Security <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s403">42 USC 403 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s403">42 USC 403</ref>.</p></sidenote>Act by subsections (a) through (d) of such section 302 shall, except as provided in subsection (b) of this section, apply only with respect to monthly insurance benefits payable under title II of the Social Security Act for months after December 1982. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s401">42 USC 401</ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>In the case of any individual whose first taxable year (as in effect on the date of the enactment of this Act) ending after December 31, 1981, begins before January 1, 1982, the amendments made by section 302 of the Social Security Amendments of 1977 shall apply with respect to taxable years beginning with such taxable year.</content> </subsection> </section> <section> <heading class="centered smallCaps">termination of mother’s and father’s benefits when child attains age sixteen</heading><num value="2205"><inline class="smallCaps">Sec</inline>. 2205. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 202(s)(1) of the Social Security Act is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402</ref>.</p></sidenote>amended by striking out “<quotedText>the age of 18</quotedText>” and inserting in lieu thereof “<quotedText>the age of 16</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The heading of section 202(s) of such Act is amended by striking out “<quotedText>Child Aged 18 or Over Attending School</quotedText>” and inserting in lieu thereof “<quotedText>Child Over Specified Age to be Disregarded for Certain Benefit Purposes Unless Disabled</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The amendments made by subsection (a) shall apply with <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402 note</ref>.</p></sidenote>respect to wife’s and mother’s insurance benefits for months after the month in which this Act is enacted; except that, in the case of an individual who is entitled to such a benefit (on the basis of having a child in her care) for the month in which this Act is enacted, such amendments shall not take effect until the first day of the first month which begins 2 years or more after the date of the enactment of this Act.</content> </subsection> </section> <page identifier="/us/stat/95/838">95 STAT. 838</page> <section> <heading class="centered smallCaps">rounding of benefits</heading><num value="2206"><inline class="smallCaps">Sec</inline>. 2206. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s415">42 USC 415</ref>.</p></sidenote> <content class="inline">The text of section 215(g) of the Social Security Act is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><content>The amount of any monthly benefit computed under section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402/423/403/424a">42 USC 402, 423, 403, 424a</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395s">42 USC 1395s</ref>.</p></sidenote>202 or 223 which (after any reduction under sections 203(a) and 224 and any deduction under section 203(b), and after any deduction under section 1840(a)(1)) is not a multiple of $1 shall be rounded to the next lower multiple of $1.”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402</ref>.</p></sidenote> <chapeau class="inline">Section 202(q)(8) of such Act is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>in the first sentence, by striking out “<quotedText>after application of section 215(g)</quotedText>” and inserting in lieu thereof “<quotedText>before application of section 215(g)</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>in the last sentence, by striking out “<quotedText>reduced to the next lower</quotedText>” and inserting in lieu thereof “<quotedText>increased to the next higher</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s403">42 USC 403</ref>.</p></sidenote> <content class="inline">Section 203(a)(1) of such Act is amended in the last sentence by striking out “<quotedText>increased to the next higher</quotedText>” and inserting in lieu thereof “<quotedText>decreased to the next lower</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Section 203(a)(3)(B)(iii) of such Act is amended in the parenthetical phrase immediately preceding the semicolon at the end thereof by striking out “<quotedText>higher</quotedText>” and inserting in lieu thereof “<quotedText>lower</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Section 203(a)(8) of such Act is amended by inserting at the end the following new sentence: “For purposes of the preceding sentence, the phrase ‘rounded to the next higher multiple of $0.10’, as it appeared in subsection (a)(2)(C) of this section as in effect in December 1978, shall be deemed to read ‘rounded to the next lower multiple of $0.10’”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s415">42 USC 415</ref>.</p></sidenote> <content class="inline">Section 215(a)(1)(A) of such Act is amended by striking out “<quotedText>rounded in accordance with subsection (g),</quotedText>” and inserting in lieu thereof “<quotedText>rounded, if not a multiple of $0.10, to the next lower multiple of $0.10,</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>Section 215(i)(2)(A)(ii) of such Act is amended in the sentence immediately following subclause (III) by striking out “<quotedText>increased to the next higher</quotedText>” and inserting in lieu thereof “<quotedText>decreased to the next lower</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>Section 215(i)(4) of such Act is amended by inserting before the period at the end of the first sentence the following: “<quotedText>, except that for this purpose, in applying paragraphs (2)(A)(ii), (2)(D)(iv), and (2)(D)(v) of this subsection as in effect in December 1978, the phrase ‘increased to the next higher multiple of $0.10’ shall be deemed to read ‘decreased to the next lower multiple of $0.10’</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402 note</ref>.</p></sidenote> <content class="inline">The amendments made by this section shall apply only with respect to initial calculations and adjustments of primary insurance amounts and benefit amounts which are attributable to periods after August 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">requests for information; cost reimbursement</heading><num value="2207"><inline class="smallCaps">Sec</inline>. 2207. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1306">42 USC 1306</ref>.</p></sidenote> <chapeau class="inline">Section 1106 of the Social Security Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>as provided in part D of title IV of this Act</quotedText>” in the first sentence of subsection (a) and inserting in lieu thereof “<quotedText>as otherwise provided by Federal law</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting after subsection (b) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Notwithstanding sections 552 and 552a of title 5, United States Code, or any other provision of’ law, whenever the Secretary determines that a request for information is made in order to assist a party <page identifier="/us/stat/95/839">95 STAT. 839</page>in interest (as defined in section 3 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002)) with respect to the administration of an employee benefit plan (as so defined), or is made for any other purpose not directly related to the administration of the program or programs under this Act to which such information relates, the Secretary may require the requester to pay the full cost, as determined by the Secretary, of providing such information.”.</content> </subsection> </quotedContent> </content></paragraph> </section> <section> <heading class="centered smallCaps">reduction in disability benefits on account of other related payments; extension of offset to disabled worker beneficiaries aged 62 through 64 and their families; change in month in which payments are offset</heading><num value="2208"><inline class="smallCaps">Sec</inline>. 2208. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 224 of the Social Security Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s424a">42 USC 424a</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>in the caption, by striking out “<quotedText><inline class="smallCaps">on account of receipt of workmen’s compensation</inline></quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>in subsection (a), in the matter preceding paragraph (1), by striking out “<quotedText>age of 62</quotedText>” and inserting in lieu thereof “<quotedText>age of 65</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by amending subsection (a)(2) to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>such individual is entitled for such month to periodic benefits on account of such individual’s total or partial disability (whether or not permanent) under—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>a workmen’s compensation law or plan of the United States or a State, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>any other law or plan of the United States, a State, a political subdivision (as that term is used in section 218(b)(2)), <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s418">42 USC 418</ref>.</p></sidenote>or an instrumentality of two or more States (as that term is used in section 218(k)),</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">other than benefits payable under title 38, United States Code, benefits payable under a program of assistance which is based on need, benefits based on service all, or substantially all, of which was included under an agreement entered into by a State and the Secretary under section 218, and benefits under a law or plan of the United States based on service all or part of which is employment as defined in section 210,”; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s410">42 USC 410</ref>.</p></sidenote></continuation> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>in subsection (a)(4), by striking out “<quotedText>the workmen’s compensation law or plan</quotedText>” and inserting in lieu thereof “<quotedText>such laws or plans</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>in subsection (b), by striking out “<quotedText>under a workmen’s compensation law or plan</quotedText>” and inserting in lieu thereof “<quotedText>for a total or partial disability under a law or plan described in subsection (a)(2)</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><chapeau>in subsection (d), by—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>striking out “<quotedText>workmen’s compensation law or plan</quotedText>” and inserting in lieu thereof “<quotedText>law or plan described in subsection (a)(2)</quotedText>”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>inserting before the period at the end thereof the following: “<quotedText>, and such law or plan so provided on February 18, 1981</quotedText>”;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>in subsection (e), by striking out “<quotedText>workmen’s compensation</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="h">“(h) </num><paragraph class="inline"><num value="1">(1) </num><content>Notwithstanding any other provision of law, the head of any Federal agency shall provide such information within its possession as the Secretary may require for purposes of making a timely determination of the amount of the reduction, if any, required by this section in benefits payable under this title, or verifying other information necessary in carrying out the provisions of this section.</content></paragraph> <page identifier="/us/stat/95/840">95 STAT. 840</page> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary is authorized to enter into agreements with States, political subdivisions, and other organizations that administer a law or plan subject to the provisions of this section, in order to obtain such information as he may require to carry out the provisions of this section.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s424a">42 USC 424a note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s423">42 USC 423</ref>.</p></sidenote> <content class="inline">The amendments made by subsection (a) shall be effective with respect to individuals who first become entitled to benefits under section 223(a) of the Social Security Act for months beginning after the month in which this Act is enacted, but only in the case of an individual who became disabled within the meaning of section 223(d) of such Act after the sixth month preceding the month in which this Act is enacted.</content> </subsection> </section> <section> <heading class="centered smallCaps">reimbursement of states for successful rehabilitation services</heading><num value="2209"><inline class="smallCaps">Sec</inline>. 2209. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s422">42 USC 422</ref>.</p></sidenote> <content class="inline">Section 222(d) of the Social Security Act is amended to read as follows: <quotedContent> <heading class="centered">“Costs of Rehabilitation Services From Trust Funds</heading> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>For purposes of making vocational rehabilitation services more readily available to disabled individuals who are—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>entitled to disability insurance benefits under section 223,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402</ref>.</p></sidenote> <content class="inline">entitled to child’s insurance benefits under section 202(d) after having attained age 18 (and are under a disability),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>entitled to widow’s insurance benefits under section 202(e) prior to attaining age 60, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>entitled to widower’s insurance benefits under section 202(f) prior to attaining age 60,</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">to the end that savings will accrue to the Trust Funds as a result of rehabilitating such individuals into substantial gainful activity, there are authorized to be transferred from the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund each fiscal year such sums as may be necessary to enable the Secretary to reimburse the State for the reasonable and necessary costs of vocational rehabilitation services furnished such individuals (including services during their waiting periods), under a State plan for vocational rehabilitation services approved under title I of the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), which result in their performance of substantial gainful activity which lasts for a continuous period of nine months. The determination that the vocational rehabilitation services contributed to the successful return of such individuals to substantial gainful activity and the determination of the amount of costs to be reimbursed under this subsection shall be made by the Commissioner of Social Security in accordance with criteria formulated by him.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>In the case of any State which is unwilling to participate or does not have a plan which meets the requirements of paragraph (1), the Commissioner of Social Security may provide such services in such State by agreement or contract with other public or private agencies, organizations, institutions, or individuals. The provision of such services shall be subject to the same conditions as otherwise apply under paragraph (1).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Payments.</p></sidenote> <content class="inline">Payments under this subsection shall be made in advance or by way of reimbursement, with necessary adjustments for overpayments and underpayments.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><chapeau>Money paid from the Trust Funds under this subsection for the reimbursement of the costs of providing services to individuals who <page identifier="/us/stat/95/841">95 STAT. 841</page>are entitled to benefits under section 223 (including services during <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s423">42 USC 423</ref>.</p></sidenote>their waiting periods), or who are entitled to benefits under section 202(d) on the basis of the wages and self-employment income of such <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402</ref>.</p></sidenote>individuals, shall be charged to the Federal Disability Insurance Trust Fund, and all other money paid from the Trust Funds under this subsection shall be charged to the Federal Old-Age and Survivors Insurance Trust Fund. The Secretary shall determine according to such methods and procedures as he may deem appropriate—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the total amount to be reimbursed for the cost of services under this subsection, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>subject to the provisions of the preceding sentence, the amount which should be charged to each of the Trust Funds.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>For purposes of this subsection the term ‘vocational rehabilitation <sidenote><p class="indent0 firstIndent0 fontsize8">“Vocational rehabilitation services.”</p></sidenote>services’ shall have the meaning assigned to it in title I of the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), except that such services may be limited in type, scope, or amount in accordance with regulations of the Secretary designed to achieve the purpose of this subsection.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The amendment made by subsection (a) shall apply with respect <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s422">42 USC 422 note</ref>.</p></sidenote>to services rendered on or after October 1, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">elimination of child’s insurance benefits in the case of children age is through 22 who attend postsecondary schools</heading><num value="2210"><inline class="smallCaps">Sec</inline>. 2210. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 202(d) of the Social Security Act is amended <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402</ref>.</p></sidenote>in paragraphs (1)(B), (1)(E)(ii), (1)(F)(i), (1)(G)(III), (6)(D)(i), (6)(E)(i), (7)(A) (three places), (7)(B), and (7)(D), by striking out “<quotedText>full-time student</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>full-time elementary or secondary school student</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>Section 202(d) of such Act is further amended in paragraphs (7)(A) (two places), (7)(B) (three places), and (7)(D), by striking out “<quotedText>educational institution</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>elementary or secondary school</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Section 202(d)(7)(A) of such Act is further amended by striking out “<quotedText>institutions involved</quotedText>” and inserting in lieu thereof “<quotedText>schools involved</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Subparagraph (C) of section 202(d)(7) of such Act is amended to <sidenote><p class="indent0 firstIndent0 fontsize8">Definitions.</p></sidenote>read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><clause class="inline"><num value="i">(i) </num><content>An ‘elementary or secondary school’ is a school which provides elementary or secondary education, respectively, as determined under the law of the State or other jurisdiction in which it is located.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>For the purpose of determining whether a child is a ‘full-time elementary or secondary school student’ or ‘intends to continue to be in full-time attendance at an elementary or secondary school’, within the meaning of this subsection, there shall be disregarded any education provided, or to be provided, beyond grade 12.”.</content> </clause> </subparagraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Section 202(d)(7)(D) of such Act is further amended by striking out “<quotedText>degree from a four-year college or university</quotedText>” and inserting in lieu thereof “<quotedText>diploma or equivalent certificate from a secondary school (as defined in subparagraph (C)(i))</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><subparagraph class="inline"><num value="A">(A) </num><content>Section 202(d) of such Act is further amended in paragraphs (1)(B)(i), (1)(F)(ii), (I)(G)(IV), (6)(D)(ii), (6)(E)(ii), and (7)(D) by striking out “<quotedText>22</quotedText>” each place it appears in each of those paragraphs and inserting in lieu thereof “<quotedText>19</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Section 202(d)(6)(A) of such Act is amended to read as follows: <page identifier="/us/stat/95/842">95 STAT. 842</page> <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><clause class="inline"><num value="i">(i) </num><content>is a full-time elementary or secondary school student and has not attained the age of 19, or (ii) is under a disability (as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s423">42 USC 423</ref>.</p><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s402">42 USC 402 note</ref>.</p></sidenote>defined in section 223(d)) and has not attained the age of 22, or”.</content> </clause> </subparagraph> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Except as provided in subsection (c), the amendments made by subsection (a) shall apply to child’s insurance benefits under section 202(d) of the Social Security Act for months after July 1982.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Notwithstanding the provisions of section 202(d) of the Social Security Act (as in effect prior to or after the amendments made by subsection (a)), any individual who—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>has attained the age of 18;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>is not under a disability (as defined in section 223(d) of such Act);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>is entitled to a child’s insurance benefit under such section 202(d) for August 1981; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>is a full-time student at a postsecondary school, college, or university that is an educational institution (as such terms are defined in section 202(d)(7) (A) and (C) of such Act as in effect prior to the amendments made by subsection (a)) for any month prior to May 1982;</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">shall be entitled to a child’s benefit under section 202(d) of such Act in accordance with the provisions of such section as in effect prior to the amendments made by subsection (a) for any month after July 1981 and prior to August 1985 if such individual would be entitled to such child’s benefit for such month under such section 202(d) if subsections (a) and (b) of this section had not been enacted, but such benefits shall be subject to the limitations set forth in this subsection.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>No benefit described in paragraph (1) shall be paid to an individual to whom paragraph (1) applies for the months of May, June, July, and August, beginning with benefits otherwise payable for May 1982.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>The amount of the monthly benefit payable under paragraph (1) to an individual to whom paragraph (1) applies for any month after July 1982 (prior to deductions on account of work required by section 203 of such Act) shall not exceed the amount of the benefit to which such individual was entitled for August 1981 (prior to deductions on <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s403">42 USC 403</ref>.</p></sidenote>account of work required by section 203 of such Act), less an amount—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>during the months after July 1982 and before August 1983, equal to 25 percent of such benefit for August 1981;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>during the months after July 1983 and before August 1984, equal to 50 percent of such benefit for August 1981; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>during the months after July 1984 and before August 1985, equal to 75 percent of such benefit for August 1981.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Any individual to whom the provisions of paragraph (1) apply and whose entitlement to benefits under paragraph (1) ends after July 1982 shall not subsequently become entitled, or reentitled, to benefits under paragraph (1) or under section 202(d) of the Social Security Act as in effect after the amendments made by subsection (a) unless he meets the requirements of section 202(d)(1)(B)(ii) of that Act as so in effect.</content></paragraph> </subsection> </section> 95 STAT. 843 <num value="XXIII">TITLE XXIII—</num><heading>PUBLIC ASSISTANCE PROGRAMS</heading> <subtitle><num value="A">Subtitle A—</num><heading>Aid to Families With Dependent Children; Child Support Enforcement</heading> <chapter><num value="1">CHAPTER 1—</num><heading>AID TO FAMILIES WITH DEPENDENT CHILDREN</heading> <section> <heading class="centered smallCaps">disregards from earned income for afdc</heading><num value="2301"><inline class="smallCaps">Sec</inline>. 2301. </num><content>Section 402(a)(8) of the Social Security Act is amended to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s602">42 USC 602</ref>.</p></sidenote>read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><subparagraph class="inline"><num value="A">(A) </num><chapeau>provide that, with respect to any month, in making the determination under paragraph (7), the State agency— <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 844.</p></sidenote></chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>shall disregard all of the earned income of each dependent child receiving aid to families with dependent children who is (as determined by the State in accordance with standards prescribed by the Secretary) a full-time student or a part-time student who is not a full-time employee attending a school, college, or university, or a course of vocational or technical training designed to fit him for gainful employment;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>shall disregard from the earned income of any child or relative applying for or receiving aid to families with dependent children, or of any other individual (living in the same home as such relative and child) whose needs are taken into account in making such determination, the first $75 of the total of such earned income for such month (or such lesser amount as the Secretary may prescribe in the case of an individual not engaged in full-time employment or not employed throughout the month);</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>shall disregard from the earned income of any child, relative, or other individual specified in clause (ii), an amount equal to expenditures for care in such month for a dependent child, or an incapacitated individual living in the same home as the dependent child, receiving aid to families with dependent children and requiring such care for such month, to the extent that such amount (for each such dependent child or incapacitated individual) does not exceed $160 (or such lesser amount as the Secretary may prescribe in the case of an individual not engaged in full-time employment or not employed throughout the month); and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>shall disregard from the earned income of any child or relative receiving aid to families with dependent children, or of any other individual (living in the same home as such relative and child) whose needs are taken into account in making such determination, an amount equal to the first $30 of the total of such earned income not already disregarded under the preceding provisions of this paragraph plus one-third of the remainder thereof (but excluding, for purposes of this subparagraph, earned income derived from participation on a project maintained under the programs established by section 432(b)(2) and (3)); and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s632">42 USC 632</ref>.</p></sidenote></content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>provide that (with respect to any month) the State agency—</chapeau> <page identifier="/us/stat/95/844">95 STAT. 844</page> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><chapeau>shall not disregard, under clause (ii), (iii), or (iv) of subparagraph (A), any earned income of any one of the persons specified in subparagraph (A)(ii) if such person—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>terminated his employment or reduced his earned income without good cause within such period (of not less than thirty days) preceding such month as may be prescribed by the Secretary;</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>refused without good cause, within such period preceding such month as may be prescribed by the Secretary, to accept employment in which he is able to engage which is offered through the public employment offices of the State, or is otherwise offered by an employer if the offer of such employer is determined by the State or local agency administering the State plan, after notification by the employer, to be a bona fide offer of employment; or</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="III">“(III) </num><content>failed without good cause to make a timely report (as prescribed by the State plan pursuant to paragraph (14)) to the State agency of earned income received in such month; and</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><subclause class="inline"><num value="I">(I) </num><content>shall not disregard, under subparagraph (A)(iv), any earned income of any of the persons specified in subparagraph (A)(ii), if, with respect to such month, the income of the persons so specified was in excess of their need, as determined by the State agency pursuant to paragraph (7) (without regard to subparagraph (A)(iv) of this paragraph), unless the persons received aid under the plan in one or more of the four months preceding such month and subparagraph (A)(iv) has not already been applied to their income for four consecutive months while they were receiving aid under the plan; and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>in the case of the earned income of a person with respect to whom subparagraph (A)(iv) has been applied for four consecutive months, shall not apply the provisions of subparagraph (A)(iv) for so long as he continues to receive aid under the plan and shall not apply such provisions to any month thereafter until the expiration of an additional period of twelve consecutive months during which he is not a recipient of such aid;”.</content> </subclause> </clause> </subparagraph> </paragraph> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">determination of income and resources for afdc</heading><num value="2302"><inline class="smallCaps">Sec</inline>. 2302. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s602">42 USC 602</ref>.</p></sidenote> <chapeau class="inline">Section 402(a)(7) of the Social Security Act is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><chapeau>except as may be otherwise provided in paragraph (8) or (31), provide that the State agency—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>shall, in determining need, take into consideration any other income and resources of any child or relative claiming aid to families with dependent children, or of any other individual (living in the same home as such child and relative) whose needs the State determines should be considered in determining the need of the child or relative claiming such aid;</content></subparagraph> <subclause class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>shall determine ineligible for aid any family the combined value of whose resources (reduced by any obligations or debts with respect to such resources) exceeds $1,000 or such lower amount as the State may determine, but not including as a resource for purposes of this subparagraph a <page identifier="/us/stat/95/845">95 STAT. 845</page>home owned and occupied by such child, relative, or other individual and so much of the family member’s ownership interest in one automobile as does not exceed such amount as the Secretary may prescribe; and</content> </subclause> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><chapeau>may, in the case of a family claiming or receiving aid under this part for any month, take into consideration as income (to the extent the State determines appropriate, as specified in such plan, and notwithstanding any other provision of law)—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>an amount not to exceed the value of the family’s monthly allotment of food stamp coupons, to the extent such value duplicates the amount for food included in the maximum amount that would be payable under the State plan to a family of the same composition with no other income; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>an amount not to exceed the value of any rent or housing subsidy provided to such family, to the extent such value duplicates the amount for housing included in the maximum amount that would be payable under the State plan to a family of the same composition with no other income;”.</content> </clause> </subparagraph> </paragraph> </quotedContent> </chapeau> </section> <section> <heading class="centered smallCaps">income limit for afdc eligibility</heading><num value="2303"><inline class="smallCaps">Sec</inline>. 2303. </num><content>Section 402(a) of the Social Security Act is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s602">42 USC 602</ref>.</p></sidenote>inserting before paragraph (19) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="18">“(18) </num><content>provide that no family shall be eligible for aid under the plan for any month if, for that month, the total income of the family (other than payments under the plan), without application of paragraph (8), exceeds 150 percent of the State’s standard <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 843.</p></sidenote>of need for a family of the same composition;”.</content></paragraph> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">treatment of income in excess of the standard of need; lump sum payments</heading><num value="2304"><inline class="smallCaps">Sec</inline>. 2304. </num><content>Section 402(a) of the Social Security Act is amended by inserting after paragraph (16) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="17">“(17) </num><chapeau>provide that if a person specified in paragraph (8)(A) (i) or (ii) receives in any month an amount of income which, together with all other income for that month not excluded under paragraph (8), exceeds the State’s standard of need applicable to the family of which he is a member—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>such amount of income shall be considered income to such individual in the month received, and the family of which such person is a member shall be ineligible for aid under the plan for the whole number of months that equals (i) the sum of such amount and all other income received in such month, not excluded under paragraph (8), divided by (ii) the standard of need applicable to such family, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>any income remaining (which amount is less than the applicable monthly standard) shall be treated as income received in the first month following the period of ineligibility specified in subparagraph (A);”.</content></subparagraph> </paragraph> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">treatment of earned income advance amount under afdc</heading><num value="2305"><inline class="smallCaps">Sec</inline>. 2305. </num><content>Section 402(d)(1) of the Social Security Act is amended to read as follows: <page identifier="/us/stat/95/846">95 STAT. 846</page> <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>For purposes of this part, an individual’s ‘income’ shall also include, to the extent and under the circumstances prescribed by the Secretary, an amount (which shall be treated as earned income for purposes of this part) equal to the earned income advance amount <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3507">26 USC 3507</ref>.</p></sidenote>(under section 3507(a) of the Internal Revenue Code of 1954) that is (or, upon the filing of an earned income eligibility certificate, would be) payable to such individual.”.</content></paragraph> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">income of stepparents living with dependent child</heading><num value="2306"><inline class="smallCaps">Sec</inline>. 2306. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s602">42 USC 602</ref>.</p></sidenote> <chapeau class="inline">Section 402(a) of the Social Security Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>and</quotedText>” at the end of paragraph (29);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out the period at the end of paragraph (30) and inserting in lieu thereof “<quotedText>; and</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by adding after paragraph (30) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="31">“(31) </num><content>provide that, in making the determination for any month <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 844.</p></sidenote>under paragraph (7), the State agency shall take into consideration so much of the income of the dependent child’s stepparent living in the same home as such child as exceeds the sum of (A) the first $75 of the total of such stepparent’s earned income for such month (or such lesser amount as the Secretary may prescribe in the case of an individual not engaged in fulltime employment or not employed throughout the month), (B) the State’s standard of need under such plan for a family of the same composition as the stepparent and those other individuals living in the same household as the dependent child and claimed by such stepparent as dependents for purposes of determining his Federal personal income tax liability but whose needs are not taken into account in making the determination under paragraph (7), (C) amounts paid by the stepparent to individuals not living in such household and claimed by him as dependents for purposes of determining his Federal personal income tax liability, and (D) payments by such stepparent of alimony or child support with respect to individuals not living in such household.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s612">42 USC 612</ref>.</p></sidenote> <content class="inline">Section 412(b) of the Social Security Act is amended by striking out “<quotedText>does not include any such relative</quotedText>” and inserting in lieu thereof “<quotedText>does not include a stepparent whose income is taken into consideration <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Supra</i>.</p></sidenote>under section 402(a)(31) (regardless of whether such income exceeds the sum specified in such section) or any other such relative</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">community work experience programs</heading><num value="2307"><inline class="smallCaps">Sec</inline>. 2307. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s609">42 USC 609</ref>.</p></sidenote> <content class="inline">Section 409 of the Social Security Act is amended to read as follows: <quotedContent> <section> <heading class="centered smallCaps">“community work experience programs</heading><num value="409">“<inline class="smallCaps">Sec</inline>. 409. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Any State which chooses to do so may establish a community work experience program in accordance with this section. The purpose of the community work experience program is to provide experience and training for individuals not otherwise able to obtain employment, in order to assist them to move into regular employment. Community work experience programs shall be designed to improve the employability of participants through actual work experience and training and to enable individuals employed under community work experience programs to move promptly into regular <page identifier="/us/stat/95/847">95 STAT. 847</page>public or private employment. The facilities of the State public employment offices may be utilized to find employment opportunities for recipients under this program. Community work experience programs shall be limited to projects which serve a useful public purpose in fields such as health, social service, environmental protection, education, urban and rural development and redevelopment, welfare, recreation, public facilities, public safety, and day care. To the extent possible, the prior training, experience, and skills of a recipient shall be utilized in making appropriate work experience assignments. A community work experience program established under this section shall provide—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>appropriate standards for health, safety, and other conditions applicable to the performance of work;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>that the program does not result in displacement of persons currently employed, or the filling of established unfilled position vacanies;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>reasonable conditions of work, taking into account the geographic region, the residence of the participants, and the proficiency of the participants;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>that participants will not be required, without their consent, to travel an unreasonable distance from their homes or remain away from their homes overnight;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>that the maximum number of hours in any month that a participant may be required to work is that number which equals the amount of aid payable with respect to the family of which such individual is a member under the State plan approved under this part, divided by the greater of the Federal or the applicable State minimum wage; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num><content>that provision will be made for transportation and other costs, not in excess of an amount established by the Secretary, reasonably necessary and directly related to participation in the program.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Nothing contained in this section shall be construed as authorizing the payment of aid under this part as compensation for work performed, nor shall a participant be entitled to a salary or to any other work or training expense provided under any other provision of law by reason of his participation in a program under this section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Nothing in this part or part C, or in any State plan approved <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s630">42 USC 630</ref>.</p></sidenote>under this part, shall be construed to prevent a State from operating (on such terms and conditions and in such cases as the State may find to be necessary or appropriate, whether or not such terms, conditions, and cases are consistent with section 402(a)(19) or part (C)) a community <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s602">42 USC 602</ref>.</p></sidenote>work experience program in accordance with this section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Each recipient of aid under the plan who is registered under <sidenote><p class="indent0 firstIndent0 fontsize8">Aid recipients.</p></sidenote>section 402(a)(19) shall participate, upon referral by the State agency, in a community work experience program unless such recipient is currently employed for no fewer than 80 hours a month and is earning an amount not less than the applicable minimum wage for such employment.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>In addition to an individual described in paragraph (1), the State agency may also refer, for participation in programs under this section, an individual who would be required to register under section 402(a)(19)(A) but for the exception contained in clause (v) of such <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 854.</p></sidenote>section (but only if the child for whom the parent or relative is caring is not under the age of three and child care is available for such child), or in clause (iii) of such section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The chief executive officer of the State shall provide coordination between a community work experience program operated pursu-<page identifier="/us/stat/95/848">95 STAT. 848</page>ant to this section and the work incentive program operated pursuant <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s630">42 USC 630</ref>.</p></sidenote>to part C so as to insure that job placement will have priority over participation in the community work experience program, and that individuals eligible to participate in both such programs are not denied aid under the State plan on the grounds of failure to participate in one such program if they are actively and satisfactorily participating in the other. The chief executive officer of the State may provide that part-time participation in both such programs may be required where appropriate.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 854.</p></sidenote> <content class="inline">The provisions of section 402(a)(19)(F) shall apply to any individual referred to a community work experience program who fails to participate in such program in the same manner as they apply to an individual to whom section 402(a)(19) applies.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>In the case of any State which makes expenditures in the form described in subsection (a) under its State plan approved under section 402, expenditures for the proper and efficient administration of the State plan, for purposes of section 403(a)(3), may not include the cost of making or acquiring materials or equipment in connection with the work performed under a program referred to in subsection (a) or the cost of supervision of work under such program, and may include only such other costs attributable to such programs as are permitted by the Secretary.”.</content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s603">42 USC 603</ref>.</p></sidenote> <content class="inline">Section 403(a)(3) of such Act is amended by inserting before the semicolon at the end thereof the following: “, or which is a service provided in connection with a community work experience program <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 846, <i>infra</i>.</p><p class="indent0 firstIndent0 fontsize8">Repeal.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s609">42 USC 609 note</ref>.</p></sidenote>or work supplementation program under section 409 or 414”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 204(c)(2) of the Social Security Amendments of 1967 (Public Law 90–248) is repealed.</content> </subsection> </section> <section> <heading class="centered smallCaps">providing jobs as alternative to afdc</heading><num value="2308"><inline class="smallCaps">Sec</inline>. 2308. </num><content>Part A of title IV of the Social Security Act is amended by adding at the end thereof the following new section: <quotedContent> <section> <heading class="centered smallCaps">“work supplementation program</heading><num value="414">“<inline class="smallCaps">Sec</inline>. 414. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s614">42 USC 614</ref>.</p></sidenote> <content class="inline">It is the purpose of this section to allow a State to institute a work supplementation program under which such State, to the extent such State determines to be appropriate, may make jobs available, on a voluntary basis, as an alternative to aid otherwise provided under the State plan approved under this part.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s606">42 USC 606</ref>.</p></sidenote> <content class="inline">Notwithstanding the provisions of section 406 or any other provision of law, Federal funds may be paid to a State under this part, subject to the provisions of this section, with respect to expenditures incurred in operating a work supplementation program under this section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s630">42 USC 630</ref>.</p></sidenote> <content class="inline">Nothing in this part or part C, or in any State plan approved under this part, shall be construed to prevent a State from operating (on such terms and conditions and in such cases as the State may find to be necessary or appropriate, whether or not such terms, conditions, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s602">42 USC 602</ref>.</p></sidenote>and cases are consistent with section 402(a)(19) or part C) a work supplementation program in accordance with this section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Notwithstanding section 402(a)(23) or any other provision of law, a State may adjust the levels of the standards of need under the State plan as the State determines to be necessary and appropriate for carrying out a work supplementation program under this section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>Notwithstanding section 402(a)(1) or any other provision of law, a State operating a work supplementation program under this <page identifier="/us/stat/95/849">95 STAT. 849</page>section may provide that the needs standards in effect in those areas of the State in which such program is in operation may be different from the needs standards in effect in the areas in which such program is not in operation, and such State may provide that the needs standards for categories of recipients of aid may vary among such categories as the State determines to be appropriate on the basis of ability to participate in the work supplementation program.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>Notwithstanding any other provision of law, a State may make further adjustments in the amounts of aid paid under the plan to different categories of receipients (as determined under paragraph (4)) in order to offset increases in benefits from needs related programs (other than the State plan approved under this part) as the State determines to be necessary and appropriate to further the purposes of the work supplementation program.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>Notwithstanding section 402(a)(8) or any other provision of law, <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 843.</p></sidenote>a State operating a work supplementation program under this section may reduce or eliminate the amount of earned income to be disregarded under the State plan as the State determines to be necessary and appropriate to further the purposes of the work supplementation program.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><content>A work supplementation program operated by a State under <sidenote><p class="indent0 firstIndent0 fontsize8">Work supplementation program.</p></sidenote>this section shall provide that any individual who is an eligible individual (as determined under paragraph (2)) may choose to take a supplemented job (as defined in paragraph (3)) to the extent supplemented jobs are available under the program. Payments by the State to individuals or to employers under the program shall be expenditures incurred by the State for aid to families with dependent children, except as limited by subsection (d).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>For purposes of this section, an eligible individual is an individual who is in a category which the State determines shall be eligible to participate in the work supplementation program, and who would, at the time of his placement in such job, be eligible for assistance under the State plan if such State did not have a work supplementation program in effect and had not altered its State plan accordingly, as such State plan was in effect in May 1981, or as modified thereafter as required by Federal law.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>For purposes of this section, a supplemented job is—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>a job position provided to an eligible individual by the State or local agency administering the State plan under this part;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>a job position provided to an eligible individual by a public or nonprofit entity for which all or part of the wages are paid by such State or local agency; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>a job position provided to an eligible individual by a proprietary entity involving the provision of child day care services for which all or part of the wages are paid by such State or local agency, but only if such entity does not claim a credit for any part of the wages paid to such eligible individual under section 40 of the Internal Revenue Code of 1954 (relating to credit <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s40">26 USC 40</ref>.</p></sidenote>for expenses of the work incentive program) or section 44B of such Code (relating to credit for employment of certain new <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s44B">26 USC 44B</ref>.</p></sidenote>employees).</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">A State may provide or subsidize any job position under the program as such State determines to be appropriate, but acceptance of any such position shall be voluntary.</continuation> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><chapeau>The amount of the Federal payment to a State under section 403 for any quarter for expenditures incurred in operating a work <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s603">42 USC 603</ref>.</p></sidenote><page identifier="/us/stat/95/850">95 STAT. 850</page>supplementation program shall not exceed an amount equal to the difference between—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s603">42 USC 603</ref>.</p></sidenote> <content class="inline">the amount which would have been paid under section 403 to such State for such quarter under the State plan if it did not have a work supplementation program in effect and had not altered its State plan accordingly, as such State plan was in effect in May 1981, or as modified thereafter as required by Federal law; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the amount paid to such State under section 403 for such quarter exclusive of the amount so paid for such quarter for the work supplementation program.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><paragraph class="inline"><num value="1">(1) </num><content>Nothing in this section shall be construed as requiring a State or local agency administering the State plan to provide employee status to any eligible individual to whom it provides a job position under the work supplementation program, or with respect to whom it provides all or part of the wages paid to such individual by another entity under such program.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Nothing in this section shall be construed as requiring such State or local agency to provide that eligible individuals filling job positions provided by other entities under such program be provided employee status by such entity during the first 13 weeks during which they fill such position.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Wages paid under a work supplementation program shall be considered to be earned income for purposes of any provision of law.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><chapeau>Any work supplementation program operated by a State shall be administered by—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the agency designated to administer or supervise the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s602">42 USC 602</ref>.</p></sidenote>administration of the State plan under section 402(a)(3); or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the agency (if any) designated to administer the community <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 846.</p></sidenote>work experience program under section 409.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><content>Any State which chooses to operate a work supplementation program under this section may choose to provide that any individual who participates in such program, and any child or relative of such individual (or other individual living in the same household as such individual) who would be eligible for aid under the State plan approved under this part if such State did not have a work supplementation program, shall be considered individuals receiving aid under the State plan approved under this part for purposes of eligibility for medical assistance under the State plan approved <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396">42 USC 1396</ref>.</p></sidenote>under title XIX.</content> </subsection> <subsection class="indent0 fontsize10"><num value="h">“(h) </num><content>No individual receiving a grant under the State plan shall be excused, by reason of the fact that such State has a work supplementation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s630">42 USC 630</ref>.</p></sidenote>program, from any requirement of this part or part C relating to work requirements.”.</content> </subsection> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">work incentive demonstration program</heading><num value="2309"><inline class="smallCaps">Sec</inline>. 2309. </num><content>Part C of title IV of the Social Security Act is amended by adding at the end thereof the following new section: <quotedContent> <section> <heading class="centered smallCaps">“work incentive demonstration program</heading><num value="445">“<inline class="smallCaps">Sec</inline>. 445. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s645">42 USC 645</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s601">42 USC 601</ref>.</p></sidenote> <content class="inline">Notwithstanding any other provision of this part and part A of this title, any State may elect as an alternative to the work incentive program otherwise provided in this part, and subject to the provisions of this section, to operate a work incentive demonstration program for the purpose of demonstrating single agency administra-<page identifier="/us/stat/95/851">95 STAT. 851</page>tion of the work-related objectives of this Act, and to receive payments under the provisions of this section.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Not later than sixty days following the date of the enactment of this section, the Governor of a State which desires to operate a work incentive demonstration program under this section shall submit to the Secretary of Health and Human Services a letter of application stating such intent. Accompanying the letter of application <sidenote><p class="indent0 firstIndent0 fontsize8">State program plan.</p></sidenote>shall be a State program plan which must—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>provide that the agency conducting the demonstration program within the State shall be the single State agency which administers or supervises the administration of the State plan under part A of this title;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>provide that all persons eligible for or receiving assistance under the aid to families with dependent children program shall be eligible to participate in, and shall be required to participate in, the work incentive demonstration program, subject to the same criteria for participation in such demonstration program as are in effect under this part and part A during the month before <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s601">42 USC 601</ref>.</p></sidenote>the month in which the demonstration program commences;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>provide that the criteria for participation in the work incentive demonstration program shall be uniform throughout the State;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>provide a statement of the objectives which the State expects to meet through operation of a work incentive demonstration program, with emphasis on how the State expects to maximize client placement in nonsubsidized private sector employment;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>describe the techniques to be used to achieve the objectives of the work incentive demonstration program, which may include but shall not be limited to: maximum periods of participation, job training, job find clubs, grant diversion to either public or private sector employers, services contracts with State employment services, prime sponsors under the Comprehensive Employment and Training Act of 1973, or private placement <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s801">29 USC 801 note</ref>.</p></sidenote>agencies, targeted jobs tax credit outreach campaigns, and performance-based placement incentives; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">“(F) </num><content>set forth the format and frequency of reporting of information regarding operation of the work incentive demonstration program.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>A State’s application to participate in the work incentive <sidenote><p class="indent0 firstIndent0 fontsize8">Disapproval notification.</p></sidenote>demonstration program shall be deemed approved unless the Secretary of Health and Human Services notifies the State in writing of disapproval within forty-five days of the date of application. The Secretary of Health and Human Services shall set forth the reasons for disapproval and provide an opportunity for resubmission of the plan within forty-five days of the receipt of the notice of disapproval. An application shall not be finally disapproved unless the Secretary of Health and Human Services determines that the State’s program plan would be less effective than the requirements set forth in this title, other than this section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The Secretary of Health and Human Services shall furnish <sidenote><p class="indent0 firstIndent0 fontsize8">Copies to Labor Secretary.</p></sidenote>copies of approved plans, statistical reports, and evaluation reports to the Secretary of Labor.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Subject to the statement of objectives and description of techniques to be used in implementing its work incentive demonstration program, as set forth in its program plan, a State shall be free to design a program which best addresses its individual needs, makes best use of its available resources, and recognizes its labor market <page identifier="/us/stat/95/852">95 STAT. 852</page>conditions. Other than criteria for participation in the State’s work incentive demonstration project, which shall be uniform throughout the State, the components of the program may vary by geographic area or by political subdivision.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Program duration.</p></sidenote> <content class="inline">A State’s work incentive demonstration program, if initially approved, shall be in force for a three-year period. During this period, the State may elect to use up to six months for planning purposes. During such planning period, all requirements of part A and this part <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s601/630">42 USC 601, 630</ref>.</p></sidenote>C shall remain in full force and effect.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Evaluations by HHS Secretary.</p></sidenote> <content class="inline">The Secretary of Health and Human Services shall conduct two evaluations of a State’s work incentive demonstration program. The first evaluation shall be conducted at the conclusion of the first twelve months of operation of the demonstration program. The second evaluation shall be conducted at the conclusion of the demonstration program. Both evaluations shall compare placement rates during the demonstration program with placement rates achieved during a number of previous years, to be determined by the Secretary of Health and Human Services.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Funding.</p></sidenote> <content class="inline">For each year of its demonstration program, a State which is operating such program shall be funded in an amount equal to its initial annual 1981 allocation under the work incentive program set forth in this part, plus any other Federal funds which the State may properly receive under any statute for establishing work programs for recipients of aid to families with dependent children.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Such funds shall only be used by the State for administering and operating its work incentive demonstration program. These funds shall not be used for direct grants of assistance under the aid to families with dependent children program.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><content>Earnings derived from participation in a State’s work incentive demonstration program shall not result in a determination of financial ineligibility for assistance under the aid to families with dependent children program.”.</content> </subsection> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">effect of participation in a strike on eligibility for afdc</heading><num value="2310"><inline class="smallCaps">Sec</inline>. 2310. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s602">42 USC 602</ref>.</p></sidenote> <content class="inline">Section 402(a) of the Social Security Act is amended by inserting after paragraph (20) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="21">“(21) </num><chapeau>provide—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>that, for purposes of this part, participation in a strike shall not constitute good cause to leave, or to refuse to seek or accept employment; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><clause class="inline"><num value="i">(i) </num><content>that aid to families with dependent children is not payable to a family for any month in which any caretaker relative with whom the child is living is, on the last day of such month, participating in a strike, and (ii) that no individual’s needs shall be included in determining the amount of aid payable for any month to a family under the plan if, on the last day of such month, such individual is participating in a strike;”.</content> </clause> </subparagraph> </paragraph> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">age limit of dependent child</heading><num value="2311"><inline class="smallCaps">Sec</inline>. 2311. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s606">42 USC 606</ref>.</p></sidenote> <content class="inline">Section 406(a)(2) of the Social Security Act is amended to read as follows: “<quotedText>(2) who is (A) under the age of eighteen, or (B) at the option of the State, under the age of nineteen and a full-time student in a secondary school (or in the equivalent level of vocational or technical training), if, before he attains age nineteen, he may reason-<page identifier="/us/stat/95/853">95 STAT. 853</page>ably be expected to complete the program of such secondary school (or such training);</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">limitation on afdc to pregnant women</heading><num value="2312"><inline class="smallCaps">Sec</inline>. 2312. </num><subsection class="inline"><num value="a">(a) </num><content>Section 406(b) of the Social Security Act is amended <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s606">42 USC 606</ref>.</p></sidenote>by striking out “<quotedText>dependent children</quotedText>” the second place it appears in the matter that precedes clause (1) and inserting in lieu thereof “<quotedText>dependent children, or, at the option of the State, a pregnant woman but only if it has been medically verified that the child is expected to be born in the month such payments are made or within the three-month period following such month of payment, and who, if such child had been born and was living with her in the month of payment, would be eligible for aid to families with dependent children</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 406 of such Act is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Notwithstanding the provisions of subsection (b), the term <sidenote><p class="indent0 firstIndent0 fontsize8">“Aid to families with dependent children.”</p></sidenote>‘aid to families with dependent children’ does not mean any—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>amount paid to meet the needs of an unborn child; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>amount paid (or by which a payment is increased) to meet the needs of a woman occasioned by or resulting from her pregnancy, unless, as has been medically verified, the woman’s child is expected to be born in the month such payments are made (or increased) or within the three-month period following such month of payment.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Notwithstanding paragraph (1), a State may provide that for purposes of title XIX a pregnant woman shall be deemed to be a <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396">42 USC 1396</ref>.</p></sidenote>recipient of aid to families with dependent children under this part if she would be eligible for such aid if such child had been born and was living with her in the month of payment, and such pregnancy has been medically verified.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> </section> <section> <heading class="centered smallCaps">aid to families with dependent children by reason of unemployment of a parent</heading><num value="2313"><inline class="smallCaps">Sec</inline>. 2313. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 407 of the Social Security Act is amended as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s607">42 USC 607</ref>.</p></sidenote>follows:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the heading is amended to read “<inline class="smallCaps">dependent children of unemployed parents</inline>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>subsection (a) is amended by striking out “<quotedText>his father</quotedText>” and inserting in lieu thereof “<quotedText>the parent who is the principal earner</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>subsection (b)(1) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>such child’s father</quotedText>” in subparagraph (A) and inserting in lieu thereof “<quotedText>whichever of such child’s parents is the principal earner</quotedText>”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>father</quotedText>” in subparagraph (B) and inserting in lieu thereof “<quotedText>parent</quotedText>”;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><chapeau>subsection (b)(2) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>fathers</quotedText>” in subparagraph (A) and inserting in lieu thereof “<quotedText>unemployed parents</quotedText>”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>father</quotedText>” in subparagraph (C) (i) and (ii) and in subparagraph (D) and inserting in lieu thereof “<quotedText>parent described in paragraph (1)(A)</quotedText>”;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>subsection (c) is amended by striking out “<quotedText>father</quotedText>” both times it appears and inserting in lieu thereof “<quotedText>parent</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><chapeau>subsection (d) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>and</quotedText>” at the end of paragraph (2);</content></subparagraph> <page identifier="/us/stat/95/854">95 STAT. 854</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out the period at the end of paragraph (3) and inserting in lieu thereof “<quotedText>; and</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Definition.</p></sidenote> <content class="inline">the phrase ‘whichever of such child’s parents is the principal earner’, in the case of any child, means whichever parent, in a home in which both parents of such child are living, earned the greater amount of income in the 24-month period the last month of which immediately precedes the month in which an application is filed for aid under this part on the basis of the unemployment of a parent, for each consecutive month for which the family receives such aid on that basis.”; and</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>subsection (e) is amended by striking out “<quotedText>fathers</quotedText>” and inserting in lieu thereof “<quotedText>parents</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/460">94 Stat. 460</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s602">42 USC 602</ref>.</p></sidenote> <chapeau class="inline">Section 402(a)(19)(A) of such Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>mother</quotedText>” in clause (v) and inserting in lieu thereof “<quotedText>parent</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>mother or other female caretaker of a child, if the father or another adult male relative</quotedText>” in clause (vi) and inserting in lieu thereof “<quotedText>parent or other caretaker of a child who is deprived of parental support or care by reason of the death, continued absence from the home, or physical or mental incapacity of a parent, if another adult relative</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>by striking out “<quotedText>or</quotedText>” at the end of clause (vi);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out the semicolon at the end of clause (vii) and inserting in lieu thereof “<quotedText>; or</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by adding at the end thereof the following new clause: <quotedContent> <clause class="firstIndent1 fontsize10"><num value="viii">“(viii) </num><content>the parent of a child who is deprived of parental support or care by reason of the unemployment of a parent, if the other parent (who is the principal earner, as defined in <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s607">42 USC 607</ref>.</p></sidenote>section 407(d)) is not excluded by the preceding clauses of this subparagraph;”; and</content> </clause> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><chapeau>in the matter following the numbered clauses—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>her option</quotedText>” and inserting in lieu thereof “<quotedText>his or her option</quotedText>”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>if she so desires</quotedText>” and inserting in lieu thereof “<quotedText>if he or she so desires</quotedText>”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out “<quotedText>to her</quotedText>” and inserting in lieu thereof “<quotedText>to him or her</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>by striking out “<quotedText>she should decide</quotedText>” and inserting in lieu thereof “<quotedText>he or she should decide</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/461">94 Stat. 461</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s602">42 USC 602</ref>.</p></sidenote> <content class="inline">Section 402(a)(19)(F) of such Act is amended by redesignating clauses (ii) through (iv) as clauses (iii) through (v), respectively, and by inserting after clause (1) the following new clause: <quotedContent> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>if the parent who has been designated as the principal earner, for purposes of section 407, makes such refusal, aid will be denied to all members of the family;”.</content> </clause> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="d">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s607">42 USC 607</ref>.</p></sidenote> <content class="inline">Section 407(b)(2)(C)(i) of such Act is amended by striking out “<quotedText>not registered</quotedText>” and inserting in lieu thereof “<quotedText>not currently registered</quotedText>”.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">work requirements for afdc recipients</heading><num value="2314"><inline class="smallCaps">Sec</inline>. 2314. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s602">42 USC 602</ref>.</p></sidenote> <content class="inline">Section 402(a)(19)(A)(i) of the Social Security Act is amended to read as follows: <quotedContent> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>a child who is under age 16 or attending, full-time, an elementary, secondary, or vocational (or technical) school;”.</content> </clause> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 402(a)(19)(A)(v) of such Act (as amended by section 2313(b)(1) of this Act) is amended to read as follows: <page identifier="/us/stat/95/855">95 STAT. 855</page> <quotedContent> <clause class="firstIndent1 fontsize10"><num value="v">“(v) </num><content>the parent or other relative of a child under the age of six who is personally providing care for the child with only very brief and infrequent absences from the child;”.</content> </clause> </quotedContent> </content> </subsection> </section> <section> <heading class="centered smallCaps">retrospective budgeting and monthly reporting</heading><num value="2315"><inline class="smallCaps">Sec</inline>. 2315. </num><subsection class="inline"><num value="a">(a) </num><content>Section 402(a) of the Social Security Act is amended <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s602">42 USC 602</ref>.</p></sidenote>by inserting after paragraph (12) the following new paragraphs: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="13">“(13) </num><chapeau>provide that—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>except as provided in subparagraph (B), the State agency (i) will determine a family s eligibility for aid for a month on the basis of the family’s income, composition, resources, and other similar relevant circumstances during such month, and (ii) will determine the amount of such aid on the basis of the income and other relevant circumstances in the first or, at the option of the State but only where the Secretary determines it to be appropriate, second month preceding such month; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>in the case of the first month, or at the option of the State but only where the Secretary determines it to be appropriate, the first and second months, in a period of consecutive months for which aid is payable, the State agency will determine the amount of aid on the basis of the family’s income and other relevant circumstances in such first or second month;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="14">“(14) </num><subparagraph class="inline"><num value="A">(A) </num><chapeau>provide that the State agency will require each family to which it furnishes aid to families with dependent children (or to which it would provide such aid but for paragraph (22) or (32)) to report, as a condition to the continued receipt of such aid (or to continuing to be deemed to be a recipient of such aid), each month to the State agency on—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the income received, family composition, and other relevant circumstances during the prior month; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the income and resources it expects to receive, or any changes in circumstances affecting continued eligibility or benefit amount, that it expects to occur, in that month (or in future months);</content> </clause> <continuation class="indent0 firstIndent0 fontsize10">except that with the prior approval of the Secretary the State may select categories of recipients who may report at specified less frequent intervals upon the State’s showing to the satisfaction of the Secretary that to require individuals in such categories to report monthly would result in unwarranted expenditures for administration of this paragraph; and</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>that, in addition to whatever action may be appropriate based on other reports or information received by the State agency, the State agency will take prompt action to adjust the amount of assistance payable, as may be appropriate, on the basis of the information contained in the report (or upon the failure of the family to furnish a timely report), and will give an appropriate explanatory notice, concurrent with its action, to the family”.</content></subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 403(a) of such Act is amended by adding at the end <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s603">42 USC 603</ref>.</p></sidenote>thereof the following sentence: “No payment shall be made under this subsection with respect to amounts paid to supplement or otherwise increase the amount of aid to families with dependent children found payable in accordance with section 402(a)(13) if such <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Supra</i>.</p></sidenote>amount is determined to have been paid by the State in recognition of <page identifier="/us/stat/95/856">95 STAT. 856</page>the current or anticipated needs of a family (other than with respect to the first or first and second months of eligibility).”.</content> </subsection> </section> <section> <heading class="centered smallCaps">prohibition against payment of aid in amounts below ten dollars</heading><num value="2316"><inline class="smallCaps">Sec</inline>. 2316. </num><chapeau>Section 402(a) of the Social Security Act (as amended by section 2306 of this Act) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>and</quotedText>” at the end of paragraph (30);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out the period at the end of paragraph (31) and inserting in lieu thereof “<quotedText>; and</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by adding after paragraph (31) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="32">“(32) </num><content>provide that no payment of aid shall be made under the plan for any month if the amount of such payment, as determined in accordance with the applicable provisions of the plan and of this part, would be less than $10, but an individual with respect to whom a payment of aid under the plan is denied solely by reason of this paragraph is deemed to be a recipient of aid but shall not be eligible to participate in a community work experience program.”.</content></paragraph> </quotedContent> </content></paragraph> </section> <section> <heading class="centered smallCaps">removal of limit on restricted payments in a state’s afdc program</heading><num value="2317"><inline class="smallCaps">Sec</inline>. 2317. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s603">42 USC 603</ref>.</p></sidenote> <content class="inline">Section 403(a) of the Social Security Act is amended by striking out the first unnumbered paragraph following paragraph (5).</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s606">42 USC 606</ref>.</p></sidenote> <content class="inline">Section 406(b) of such Act is amended by adding at the end thereof the following new sentence: “Payments of the type described in clause (2) shall not be subject to the requirements of clauses (A) through (E) of such clause (2), when they are made in the manner described in clause (2) at the request of the family member to whom payment would otherwise be made in an unrestricted manner.”.</content> </subsection> </section> <section> <heading class="centered smallCaps">adjustment for incorrect payments</heading><num value="2318"><inline class="smallCaps">Sec</inline>. 2318. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s602">42 USC 602</ref>.</p><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 852.</p></sidenote> <content class="inline">Section 402(a) of the Social Security Act is amended by inserting after paragraph (21) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="22">“(22) </num><chapeau>provide that the State agency will promptly take all necessary steps to correct any overpayment or underpayment of aid under the State plan, and, in the case of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>an overpayment to an individual who is a current recipient of such aid, recovery will be made by repayment by the individual or by reducing the amount of any future aid payable to the family of which he is a member, except that such recovery shall not result in the reduction of aid payable for any month, such that the aid, when added to such family’s liquid resources and to its income (without application of paragraph (8)), is less than 90 percent of the amount payable under the State plan to a family of the same composition with no other income (and, in the case of an individual to whom no payment is made for a month solely by reason of recovery of an overpayment, such individual shall be deemed to be a recipient of aid for such month);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>an overpayment to any individual who is no longer receiving aid under the plan, recovery shall be made by <page identifier="/us/stat/95/857">95 STAT. 857</page>appropriate action under State law against the income or resources of the individual or the family; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>an underpayment, the corrective payment shall be disregarded in determining the income of the family, and shall be disregarded in determining its resources in the month the corrective payment is made and in the following month;”.</content></subparagraph> </paragraph> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">reduced federal matching of state and local afdc training costs</heading><num value="2319"><inline class="smallCaps">Sec</inline>. 2319. </num><subsection class="inline"><num value="a">(a) </num><content>Section 403(a)(3)(A) of the Social Security Act, as in <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s603">42 USC 603</ref>.</p></sidenote>effect in the fifty States and the District of Columbia, is repealed.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 403(a)(3)(A)(iii) of such Act, as in effect in Puerto Rico, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s603">42 USC 603 note</ref>.</p></sidenote>Guam, and the Virgin Islands, is repealed.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The first sentence of section 403(d)(1) of such Act is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/462">94 Stat. 462</ref>.</p></sidenote>striking out all that precedes “<quotedText>with respect to</quotedText>” and inserting in lieu thereof “<quotedText>Notwithstanding any provision of subsection (a)(3), the applicable rate under such subsection shall be 90 per centum</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>The repeals made by this section shall apply to expenditures <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s603">42 USC 603 note</ref>.</p></sidenote>made after September 30, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">eligibility of aliens for afdc</heading><num value="2320"><inline class="smallCaps">Sec</inline>. 2320. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 402(a) of the Social Security Act (as amended by section 2316 of this Act) is further amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>and</quotedText>” at the end of paragraph (31);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out the period at the end of paragraph (32) and inserting in lieu thereof “<quotedText>; and</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by adding immediately after paragraph (32) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="33">“(33) </num><content>provide that in order for any individual to be considered a dependent child, a caretaker relative whose needs are to be taken into account in making the determination under paragraph (7), or any other person whose needs should be taken into account in making such a determination with respect to the child or relative, such individual must be either (A) a citizen, or (B) an alien lawfully admitted for permanent residence or otherwise permanently residing in the United States under color of law (including any alien who is lawfully present in the United States as a result of the application of the provisions of section 207(c) of the Immigration and Nationality Act (or of section 203(a)(7) of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/103">94 Stat. 103</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1157">8 USC 1157</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/105/107">94 Stat 105, 107</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1158/1182">8 USC 1158, 1182</ref>.</p></sidenote>such Act prior to April 1, 1980), or as a result of the application of the provisions of section 208 or 212(d)(5) of such Act).”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 402(a)(7) of such Act (as amended by section 2302 of this Act) is further amended by inserting “<quotedText>and section 415</quotedText>” after “<quotedText>paragraph (31)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Part A of title IV of such Act (as amended by section 2308 of this Act) is further amended by adding at the end thereof the following new section: <quotedContent> <section> <heading class="centered smallCaps">“attribution of sponsor’s income and resources to alien</heading><num value="415">“<inline class="smallCaps">Sec</inline>. 415. </num><subsection class="inline"><num value="a">(a) </num><content>For purposes of determining eligibility for and the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s615">42 USC 615</ref>.</p></sidenote>amount of benefits under a State plan approved under this part for an individual who is an alien described in clause (B) of section 402(a)(33), <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Supra</i>.</p></sidenote>the income and resources of any person who (as a sponsor of such individual’s entry into the United States) executed an affidavit of <page identifier="/us/stat/95/858">95 STAT. 858</page>support or similar agreement with respect to such individual, and the income and resources of the sponsor’s spouse, shall be deemed to be the unearned income and resources of such individual (in accordance with subsections (b) and (c)) for a period of three years after the individual’s entry into the United States, except that this section is not applicable if such individual is a dependent child and such sponsor (or such sponsor’s spouse) is the parent of such child.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>The amount of income of a sponsor (and his spouse) which shall be deemed to be the unearned income of an alien for any month shall be determined as follows:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the total amount of earned and unearned income of such sponsor and such sponsor’s spouse (if such spouse is living with the sponsor) shall be determined for such month;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>the amount determined under subparagraph (A) shall be reduced by an amount equal to the sum of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the lesser of (I) 20 percent of the total of any amounts received by the sponsor and his spouse in such month as wages or salary or as net earnings from self-employment, plus the full amount of any costs incurred by them in producing self-employment income in such month, or (II) $175;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the cash needs standard established by the State under its plan for a family of the same size and composition as the sponsor and those other individuals living in the same household as the sponsor who are claimed by him as dependents for purposes of determining his Federal personal income tax liability but whose needs are not taken into account in <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 844.</p></sidenote>making a determination under section 402(a)(7);</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>any amounts paid by the sponsor (or his spouse) to individuals not living in such household who are claimed by him as dependents for purposes of determining his Federal personal income tax liability; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>any payments of alimony or child support with respect to individuals not living in such household.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>The amount of resources of a sponsor (and his spouse) which shall be deemed to be the resources of an alien for any month shall be determined as follows:</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the total amount of the resources (determined as if the sponsor were applying for aid under the State plan approved under this part) of such sponsor and such sponsor’s spouse (if such spouse is living with the sponsor) shall be determined; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the amount determined under subparagraph (A) shall be reduced by $1,500.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Sponsor information and documentation.</p></sidenote> <content class="inline">Any individual who is an alien shall, during the period of three years after entry into the United States, in order to be eligible for aid under a State plan approved under this part, be required to provide to the State agency administering such plan such information and documentation with respect to his sponsor as may be necessary in order for the State agency to make any determination required under this section, and to obtain any cooperation from such sponsor necessary for any such determination. Such alien shall also be required to provide to the State agency such information and documentation as it may request and which such alien or his sponsor provided in support of such alien’s immigration application.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary shall enter into agreements with the Secretary of State and the Attorney General whereby any information available to them and required in order to make any determination under this section will be provided by them to the Secretary (who may, in <page identifier="/us/stat/95/859">95 STAT. 859</page>turn, make such information available, upon request, to a concerned State agency), and whereby the Secretary of State and Attorney General will inform any sponsor of an alien, at the time such sponsor executes an affidavit of support or similar agreement, of the requirements imposed by this section.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>Any sponsor of an alien, and such alien, shall be jointly and <sidenote><p class="indent0 firstIndent0 fontsize8">Overpayment liability.</p></sidenote>severally liable for an amount equal to any overpayment of aid under the State plan made to such alien during the period of three years after such alien’s entry into the United States, on account of such sponsor’s failure to provide correct information under the provisions of this section, except where such sponsor was without fault, or where good cause of such failure existed. Any such overpayment which is not repaid to the State or recovered in accordance with the procedures generally applicable under the State plan to the recoupment of overpayments shall be withheld from any subsequent payment to which such alien or such sponsor is entitled under any provision of this Act.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><paragraph class="inline"><num value="1">(1) </num><content>In any case where a person is the sponsor of two or more alien individuals who are living in the same home, the income and resources of such sponsor (and his spouse), to the extent they would be deemed the income and resources of any one of such individuals under the preceding provisions of this section, shall be divided into two or more equal shares (the number of shares being the same as the number of such alien individuals) and the income and resources of each such individual shall be deemed to include one such share.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Income and resources of a sponsor (and his spouse) which are deemed under this section to be the income and resources of any alien individual in a family shall not be considered in determining the need of other family members except to the extent such income or resources are actually available to such other members.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><chapeau>The provisions of this section shall not apply with respect to any alien who is—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>admitted to the United States as a result of the application, prior to April 1, 1980, of the provisions of section 203(a)(7) of the Immigration and Nationality Act; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1153">8 USC 1153</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>admitted to the United States as a result of the application, after March 31, 1980, of the provisions of section 207(c) of such Act; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/103">94 Stat. 103</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1157">8 USC 1157</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>paroled into the United States as a refugee under section 212(d)(5) of such Act; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/107">94 Stat. 107</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1182">8 USC 1182</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>granted political asylum by the Attorney General under section 208 of such Act; or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/105">94 Stat. 105</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1158">8 USC 1158</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>a Cuban and Haitian entrant, as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96–422).”. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1809">94 Stat. 1809</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t8/s1522">8 USC 1522 note</ref>.</p><p class="indent0 firstIndent0 fontsize8">Effective dates.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s615">42 USC 615 note</ref>.</p></sidenote></content></paragraph> </subsection> </section> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The amendments made by subsection (a) shall be effective on the date of the enactment of this Act. The amendments made by subsection (b) shall be effective with respect to individuals applying for aid to families with dependent children under any approved State plan for the first time after September 30, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">effective date</heading><num value="2321"><inline class="smallCaps">Sec</inline>. 2321. </num><subsection class="inline"><num value="a">(a) </num><content>Except as otherwise specifically provided in the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s602">42 USC 602 note</ref>.</p></sidenote>preceding sections of this chapter or in subsection (b), the provisions of this chapter and the amendments and repeals made by this chapter shall become effective on October 1, 1981.</content> </subsection> <page identifier="/us/stat/95/860">95 STAT. 860</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>If a State agency administering a plan approved under part A of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s601">42 USC 601</ref>.</p></sidenote>title IV of the Social Security Act demonstrates, to the satisfaction of the Secretary of Health and Human Services, that it cannot, by reason of State law, comply with the requirements of an amendment made by this chapter to which the effective date specified in subsection (a) applies, the Secretary may prescribe that, in the case of such State, the amendment will become effective beginning with the first month beginning after the close of the first session of such State’s <sidenote><p class="indent0 firstIndent0 fontsize8">“Session of a State’s legislature.”</p></sidenote>legislature ending on or after October 1, 1981. For purposes of the preceding sentence, the term “session of a State’s legislature” includes any regular, special, budget, or other session of a State legislature.</content> </subsection> </section> </chapter> <chapter><num value="2">CHAPTER 2—</num><heading>CHILD SUPPORT ENFORCEMENT</heading> <section> <heading class="centered smallCaps">collection of past-due child and spousal support from federal tax refunds</heading><num value="2331"><inline class="smallCaps">Sec</inline>. 2331. </num><subsection class="inline"><num value="a">(a) </num><content>Part D of title IV of the Social Security Act is amended by adding at the end thereof the following new section: <quotedContent> <section> <heading class="centered smallCaps">“collection of past-due support from federal tax refunds</heading><num value="464">“<inline class="smallCaps">Sec</inline>. 464. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s664">42 USC 664</ref>.</p></sidenote> <content class="inline">Upon receiving notice from a State agency administering a plan approved under this part that a named individual owes past-due support which has been assigned to such State pursuant to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s602">42 USC 602</ref>.</p></sidenote>section 402(a)(26), the Secretary of the Treasury shall determine whether any amounts, as refunds of Federal taxes paid, are payable to such individual (regardless of whether such individual filed a tax return as a married or unmarried individual). If the Secretary of the Treasury finds that any such amount is payable, he shall withhold from such refunds an amount equal to the past-due support, and pay such amount to the State agency (together with notice of the individual’s home address) for distribution in accordance with section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s657">42 USC 657</ref>.</p></sidenote>457(b)(3).</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Regulations.</p></sidenote> <content class="inline">The Secretary of the Treasury shall issue regulations, approved by the Secretary of Health and Human Services, prescribing the time or times at which States must submit notices of past-due support, the manner in which such notices must be submitted, and the necessary information that must be contained in or accompany the notices. The regulations shall specify the minimum amount of past-due support to which the offset procedure established by subsection (a) may be applied, and the fee that a State must pay to reimburse the Secretary of the Treasury for the full cost of applying the offset procedure, and provide that the Secretary of the Treasury will advise the Secretary of Health and Human Services, not less frequently than annually, of the States which have furnished notices of past-due support under subsection (a), the number of cases in each State with respect to which such notices have been furnished, the amount of support sought to be collected under this subsection by each State, and the amount of such collections actually made in the case of each State.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">“Past-due support.”</p></sidenote> <content class="inline">As used in this part the term ‘past-due support’ means the amount of a delinquency, determined under a court order, or an order of an administrative process established under State law, for support and maintenance of a child, or of a child and the parent with whom the child is living.”.</content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s654">42 USC 654</ref>.</p></sidenote> <chapeau class="inline">Section 454 of such Act is amended—</chapeau> <page identifier="/us/stat/95/861">95 STAT. 861</page> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>and</quotedText>” at the end of paragraph (16);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out the period at the end of paragraph (17) and inserting in lieu thereof “<quotedText>; and</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="18">“(18) </num><content>provide that the State has in effect procedures necessary to obtain payment of past-due support from overpayments made to the Secretary of the Treasury as set forth in section 464, and <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 860.</p></sidenote>take all steps necessary to implement and utilize such procedures.”</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>Section 6402 of the Internal Revenue Code of 1954 is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6402">26 USC 6402</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out in subsection (a) thereof “<quotedText>shall refund</quotedText>” and inserting in lieu thereof “<quotedText>shall, subject to subsection (c), refund</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <heading><inline class="smallCaps">Offset of Past-Due Support Against Overpayments</inline>.—</heading><content>The amount of any overpayment to be refunded to the person making the overpayment shall be reduced by the amount of any past-due support (as defined in section 464(c) of the Social Security Act) owed by that person of which the Secretary has been notified by a State in accordance with section 464 of the Social Security Act. The Secretary shall remit the amount by which the overpayment is so reduced to the State to which such support has been assigned and notify the person making the overpayment that so much of the overpayment as was necessary to satisfy his obligation for past-due support has been paid to the State. This subsection shall be applied to an overpayment prior to its being credited to a person’s future liability for an internal revenue tax.”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">collection of support for certain adults</heading><num value="2332"><inline class="smallCaps">Sec</inline>. 2332. </num><subsection class="inline"><num value="a">(a) </num><content>Section 451 of the Social Security Act is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s651">42 USC 651</ref>.</p></sidenote>striking out “<quotedText>children</quotedText>” and inserting in lieu thereof “<quotedText>children and the spouse (or former spouse) with whom such children are living</quotedText>” and by striking out “<quotedText>child support</quotedText>” and inserting in lieu thereof “<quotedText>child and spousal support</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 452(a) of such Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s652">42 USC 652</ref>.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>in paragraph (1), by inserting “<quotedText>and support for the spouse (or former spouse) with whom the absent parent’s child is living</quotedText>” after “<quotedText>child support</quotedText>”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>in paragraph (7), by inserting “<quotedText>and spousal</quotedText>” after “<quotedText>child</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>in paragraph (10)(C), by inserting “<quotedText>(with separate identification of the number in which collection of spousal support was involved)</quotedText>” after “<quotedText>child support cases</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Section 452(b) of such Act is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>, including any support obligation with respect to the parent who is living with the child and receiving aid under the State plan approved under part A,</quotedText>” after “assigned <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s601">42 USC 601</ref>.</p></sidenote>to the State” in the first sentence;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>court order</quotedText>” in the second sentence and inserting in lieu thereof “<quotedText>court or administrative order</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out “<quotedText>United States</quotedText>” in the second sentence and inserting in lieu thereof “<quotedText>Secretary of the Treasury</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>by inserting immediately after the second sentence the following new sentence: “<quotedText>All reimbursements shall be credited to the appropriation accounts which bore all or part of the costs involved in making the collections.</quotedText>”.</content></subparagraph> </paragraph> </subsection> <page identifier="/us/stat/95/862">95 STAT. 862</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s653">42 USC 653</ref>.</p></sidenote> <content class="inline">Section 453(c)(1) of such Act is amended by striking out “<quotedText>child support</quotedText>” and inserting in lieu thereof “<quotedText>child and spousal support</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s654">42 USC 654</ref>.</p></sidenote> <chapeau class="inline">Section 454 of such Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText><inline class="smallCaps">child support</inline></quotedText>” in the heading and inserting in lieu thereof “<quotedText><inline class="smallCaps">child and spousal support</inline></quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>child support</quotedText>” in the matter preceding paragraph (1) and inserting in lieu thereof “<quotedText>child and spousal support</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>in paragraph (4)(B), by striking out the comma immediately following the first parenthetical phrase and inserting in lieu thereof “<quotedText>and, at the option of the State, from such parent for his spouse (or former spouse) receiving aid to families with dependent children (but only if a support obligation has been established with respect to such spouse),</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>in paragraph (5), by striking out “<quotedText>child support payments</quotedText>” and inserting in lieu thereof “<quotedText>support payments</quotedText>” and by striking out “<quotedText>collected for a child</quotedText>” and inserting in lieu thereof “<quotedText>collected for an individual</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>in paragraph (9)(C), by striking out “<quotedText>of a child or children</quotedText>” and inserting in lieu thereof “<quotedText>of the child or children or the parent of such child or children</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>in paragraph (11), by striking out “<quotedText>child</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>in paragraph (16), by striking out “<quotedText>child</quotedText>” each place it appears.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s657">42 USC 657</ref>.</p></sidenote> <chapeau class="inline">Section 457 of such Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>child</quotedText>” in the portion of subsection (b) that precedes paragraph (1); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>child</quotedText>” each place it appears in subsection (c).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s660">42 USC 660</ref>.</p></sidenote> <content class="inline">The heading of section 460 of such Act is amended by striking out “<quotedText><inline class="smallCaps">child</inline></quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s6305">26 USC 6305</ref>.</p></sidenote> <content class="inline">Section 6305(a)(4) of the Internal Revenue Code of 1954, (relating to collection of certain liability) is amended by striking out “<quotedText>court order</quotedText>” and inserting in lieu thereof “<quotedText>court or administrative order</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">cost of collection and other services for non-afdc families</heading><num value="2333"><inline class="smallCaps">Sec</inline>. 2333. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s654">42 USC 654</ref>.</p></sidenote> <chapeau class="inline">Section 454(6) of the Social Security Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>such services</quotedText>” in clause (B) and inserting in lieu thereof “<quotedText>services under the State plan (other than collection of support)</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by amending clause (C) to read as follows: “<quotedText>(C) the State will retain, but only if it is the State which makes the collection, the fee imposed under State law as required under paragraph (19);</quotedText>”.</content> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 454 of such Act (as amended by section 2331(b) of this Act) is further amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>and</quotedText>” at the end of paragraph (17);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out the period at the end of paragraph (18) and inserting in lieu thereof “<quotedText>; and</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="19">“(19) </num><content>provide that a fee shall be imposed on the individual who owes a child or spousal support obligation, in accordance with State law, with respect to all such child and spousal support obligations for which collection is made by the State agency under this part on behalf of an individual not otherwise eligible for collection services (as determined for purposes of paragraph (6)) in an amount equal to 10 percent of the amount so owed (and for purposes of this part, no part of the amount collected shall be <page identifier="/us/stat/95/863">95 STAT. 863</page>considered to be a fee collected except amounts which exceed the actual amount of support owed).”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 453(a) of such Act is amended by adding at the end <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s653">42 USC 653</ref>.</p></sidenote>thereof the following new sentence: “In determining the total amounts expended by any State during a quarter, for purposes of this subsection, there shall be excluded an amount equal to the total of any fees collected or other income resulting from services provided under the plan approved under this part”.</content> </subsection> </section> <section> <heading class="centered smallCaps">child support obligations not discharged by bankruptcy</heading><num value="2334"><inline class="smallCaps">Sec</inline>. 2334. </num><subsection class="inline"><num value="a">(a) </num><content>Section 456 of the Social Security Act is amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s656">42 USC 656</ref>.</p></sidenote>adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>A debt which is a child support obligation assigned to a State under section 402(a)(26) is not released by a discharge in bankruptcy <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s602">42 USC 602</ref>.</p></sidenote>under title 11, United States Code.”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 523(a)(5)(A) of title 11, United States Code, is amended by inserting before the semicolon the following: “<quotedText>(other than debts assigned pursuant to section 402(a)(26) of the Social Security Act)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The amendments made by this section shall become effective on <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s656">42 USC 656 note</ref>.</p></sidenote>the date of the enactment of this Act.</content> </subsection> </section> <section> <heading class="centered smallCaps">child support intercept of unemployment benefits</heading><num value="2335"><inline class="smallCaps">Sec</inline>. 2335. </num><subsection class="inline"><num value="a">(a) </num><content>Section 454 of the Social Security Act (as amended by section 2333(b) of this Act) is amended by striking out “<quotedText>and</quotedText>” at the end of paragraph (18), by striking out the period at the end of paragraph (19) and inserting in lieu thereof “<quotedText>; and</quotedText>”, and by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="20">“(20) </num><chapeau>provide that the agency administering the plan—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>shall determine on a periodic basis, from information supplied pursuant to section 508 of the Unemployment Compensation Amendments of 1976, whether any individuals <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s49b">29 USC 49b</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s603a">42 USC 603a</ref>.</p></sidenote>receiving compensation under the State’s unemployment compensation law (including amounts payable pursuant to any agreement under any Federal unemployment compensation law) owe child support obligations which are being enforced by such agency, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>shall enforce any such child support obligations which are owed by such an individual but are not being met—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>through an agreement with such individual to have specified amounts withheld from compensation otherwise payable to such individual and by submitting a copy of any such agreement to the State agency administering the unemployment compensation law, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>in the absence of such an agreement, by bringing legal process (as defined in section 462(e) of this Act) to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s662">42 USC 662</ref>.</p></sidenote>require the withholding of amounts from such compensation.”.</content> </clause> </subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Subsection (e) of section 303 of the Social Security Act is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s503">42 USC 503</ref>.</p></sidenote>amended by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively, and by inserting after paragraph (1) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><chapeau>The State agency charged with the administration of the State law—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>shall require each new applicant for unemployment compensation to disclose whether or not such applicant owes child <page identifier="/us/stat/95/864">95 STAT. 864</page>support obligatons (as defined in the last sentence of this subsection),</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>shall notify the State or local child support enforcement agency enforcing such obligations, if any applicant discloses under clause (i) that he owes child support obligations and he is determined to be eligible for unemployment compensation, that such applicant has been so determined to be eligible,</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><chapeau>shall deduct and withhold from any unemployment compensation otherwise payable to an individual—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">“(I) </num><content>the amount specified by the individual to the State agency to be deducted and withheld under this clause,</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">“(II) </num><content>the amount (if any) determined pursuant to an agreement submitted to the State agency under section <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 863.</p></sidenote>454(20)(B)(i) of this Act, or</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="III">“(III) </num><content>any amount otherwise required to be so deducted and withheld from such unemployment compensation through <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s662">42 USC 662</ref>.</p></sidenote>legal process (as defined in section 462(e)), and</content> </subclause> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>shall pay any amount deducted and withheld under clause (iii) to the appropriate State or local child support enforcement agency.</content> </clause> <continuation class="indent0 firstIndent0 fontsize10">Any amount deducted and withheld under clause (iii) shall for all purposes be treated as if it were paid to the individual as unemployment compensation and paid by such individual to the State or local child support enforcement agency in satisfaction of his child support obligations.</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">“Unemployment compensation.”</p></sidenote> <content class="inline">For purposes of this paragraph, the term ‘unemployment compensation’ means any compensation payable under the State law (including amounts payable pursuant to agreements under any Federal unemployment compensation law).</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>Each State or local child support enforcement agency shall reimburse the State agency charged with the administration of the State unemployment compensation law for the administrative costs incurred by such State agency under this paragraph which are attributable to child support obligations being enforced by the State or local child support enforcement agency.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Paragraph (3) of section 303(e) of such Act (as redesignated by paragraph (1)) is amended by striking out “<quotedText>paragraph (1)</quotedText>” and inserting in lieu thereof “<quotedText>paragraph (1) or (2)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 863.</p></sidenote> <content class="inline">The last sentence of paragraph (1) of such section 303(e) is amended by striking out “<quotedText>the preceding sentence</quotedText>” and inserting in lieu thereof “<quotedText>this subsection</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s503">42 USC 503 note</ref>.</p></sidenote> <content class="inline">The amendments made by this section shall take effect on the date of the enactment of this Act, except that such amendments shall not be requirements under section 454 or 303 of the Social Security Act before October 1, 1982.</content> </subsection> </section> <section> <heading class="centered smallCaps">effective date</heading><num value="2336"><inline class="smallCaps">Sec</inline>. 2336. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s651">42 USC 651 note</ref>.</p></sidenote> <content class="inline">Except as otherwise specifically provided in the preceding sections of this chapter or in subsection (b), the provisions of this chapter and the amendments and repeals made by this chapter shall become effective on October 1, 1981.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>If a State agency administering a plan approved under part D of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s651">42 USC 651</ref>.</p></sidenote>title IV of the Social Security Act demonstrates, to the satisfaction of the Secretary of Health and Human Services, that it cannot, by reason of State law, comply with the requirements of an amendment made by this chapter to which the effective date specified in subsection (a) applies, the Secretary may prescribe that, in the case of such <page identifier="/us/stat/95/865">95 STAT. 865</page>State, the amendment will become effective beginning with the first month beginning after the close of the first session of such State’s legislature ending on or after October 1, 1981. For purposes of the preceding sentence, the term “session of a State’s legislature” includes any regular, special, budget, or other session of a State legislature.</content> </subsection> </section> </chapter> </subtitle> <subtitle><num value="B">Subtitle B—</num><heading>Supplemental Security Income Benefits</heading> <section> <heading class="centered smallCaps">retrospective accounting</heading><num value="2341"><inline class="smallCaps">Sec</inline>. 2341. </num><subsection class="inline"><num value="a">(a) </num><content>Section 1611(c) of the Social Security Act is amended <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382">42 USC 1382</ref>.</p></sidenote>to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><content>An individual’s eligibility for a benefit under this title for a month shall be determined on the basis of the individual’s (and eligible spouse’s, if any) income, resources, and other relevant characteristics in such month, and, except as provided in paragraph (2), the amount of such benefit shall be determined for such month on the basis of income and other characteristics in the first or, if the Secretary so determines, second month preceding such month. Eligibility for and the amount of such benefits shall be redetermined at such time or times as may be provided by the Secretary.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The amount of such benefit for the month in which application for such benefits is filed or, if the Secretary so determines, for such month and the following month, and for any month following a month of ineligibility for such benefits (or, if the Secretary so determines, such month and the following month) shall be determined on the basis of the individual’s (and eligible spouse’s, if any) income and other relevant circumstances in such month.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>For purposes of this subsection, an application shall be effective as of the first day of the month in which it is filed.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>The Secretary may waive the limitations specified in subparagraphs <sidenote><p class="indent0 firstIndent0 fontsize8">Limitations waiver.</p></sidenote>(A) and (B) of subsection (e)(1) on an individual’s eligibility and benefit amount for a month (to the extent either such limitation is applicable by reason of such individual’s presence throughout such month in a hospital, extended care facility, nursing home, or intermediate care facility) if such waiver would promote the individual’s removal from such institution or facility. Upon waiver of such limitations, the Secretary shall apply, to the month preceding the month of removal, or, if the Secretary so determines, the two months preceding the month of removal, the benefit rate that is appropriate to such individual’s living arrangement subsequent to his removal from such institution or facility.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 1612(b)(3) of such Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382a">42 USC 1382a</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>calendar quarter</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>month</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>such quarter</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>such month</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out “<quotedText>$60</quotedText>” and inserting in lieu thereof “<quotedText>$20</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by striking out “<quotedText>$30</quotedText>” and inserting in lieu thereof “<quotedText>$10</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><subsection class="inline"><num value="1">(1) </num><content>The amendments made by this section shall be effective with <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382">42 USC 1382 note</ref>.</p></sidenote>respect to months after the first calendar quarter which ends more than five months after the month in which this Act is enacted.</content> </subsection> <subsection class="indent0 fontsize10"><num value="2">(2) </num><content>The Secretary of Health and Human Services may, under <sidenote><p class="indent0 firstIndent0 fontsize8">Transitional payments.</p></sidenote>conditions determined by him to be necessary and appropriate, make a transitional payment or payments during the first two months for which the amendments made by this section are effective. A transi-<page identifier="/us/stat/95/866">95 STAT. 866</page>tional payment made under this section shall be deemed to be a payment of supplemental security income benefits.</content> </subsection> </subsection> </section> <section> <heading class="centered smallCaps">eligibility of ssi recipients for food stamps</heading><num value="2342"><inline class="smallCaps">Sec</inline>. 2342. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382e">42 USC 1382e note</ref>.</p></sidenote> <content class="inline">Section 8(d) of Public Law 93–233 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><chapeau>Upon the request of a State, the Secretary shall find, for purposes of the provisions specified in subsection (c), that the level of such State’s supplementary payments of the type described in section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382e">42 USC 1382e</ref>.</p></sidenote>1616(a) of the Social Security Act has been specifically increased for any month so as to include the bonus value of food stamps (and that such State meets the applicable requirements of subsection (c)(1)) if—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the Secretary has found (under this subsection or subsection (c), as in effect in December 1980) that such State’s supplementary payments in December 1980 were increased to include the bonus value of food stamps; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>such State continues without interruption to meet the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382g">42 USC 1382g</ref>.</p></sidenote>requirements of section 1618 of such Act for each month after the month referred to in paragraph (1) and up to and including the month for which the Secretary is making the determination.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382e">42 USC 1382e note</ref>.</p></sidenote> <content class="inline">The amendment made by subsection (a) shall become effective July 1, 1981.</content> </subsection> </section> <section> <heading class="centered smallCaps">payment to states with respect to certain unnegotiated checks</heading><num value="2343"><inline class="smallCaps">Sec</inline>. 2343. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1383">42 USC 1383</ref>.</p></sidenote> <content class="inline">Section 1631 of the Social Security Act is amended by adding at the end thereof the following new subsection: <quotedContent> <heading class="centered">“Payment to States With Respect to Certain Unnegotiated Checks</heading> <subsection class="indent0 fontsize10"><num value="i">“(i) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary of the Treasury shall, on a monthly basis, notify the Secretary of all benefit checks issued under this title which include amounts representing State supplementary payments as described in paragraph (2) and which have not been presented for payment within one hundred and eighty days after the day on which they were issued.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The Secretary shall from time to time determine the amount representing the total of the State supplementary payments made <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382e">42 USC 1382e</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/87/155">87 Stat. 155</ref>.</p></sidenote>pursuant to agreements under section 1616(a) of this Act and under section 212(b) of Public Law 93–66 which is included in all checks payable to individuals entitled to benefits under this title but not presented for payment within one hundred and eighty days after the day on which they were issued, and shall pay each State (or credit each State with) an amount equal to that State’s share of all such amount. Amounts not paid to the States shall be returned to the appropriation from which they were originally paid.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The Secretary, upon notice from the Secretary of the Treasury under paragraph (1), shall notify any State having an agreement described in paragraph (2) of all such benefit checks issued under that State’s agreement which were not presented for payment within one hundred and eighty days after the day on which they were issued.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Investigation.</p></sidenote> <content class="inline">The Secretary shall, to the maximum extent feasible, investigate the whereabouts and eligibility of the individuals whose benefit checks were not presented for payment within one hundred and eighty days after the day on which they were issued.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1383">42 USC 1383 note</ref>.</p></sidenote> <content class="inline">The amendment made by subsection (a) shall become effective October 1, 1982.</content> </subsection> </section> <page identifier="/us/stat/95/867">95 STAT. 867</page> <section> <heading class="centered smallCaps">funding of rehabilitation services for ssi recipients</heading><num value="2344"><inline class="smallCaps">Sec</inline>. 2344. </num><chapeau>Effective October 1, 1981, section 1615(d) of the Social <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382d">42 USC 1382d</ref>.</p></sidenote>Security Act is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>is authorized to pay to</quotedText>” and inserting in lieu thereof “<quotedText>is authorized to reimburse</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting “<quotedText>for</quotedText>” before “<quotedText>the costs incurred</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out “<quotedText>individuals referred for such services pursuant to subsection (a)</quotedText>” and inserting in lieu thereof “<quotedText>individuals who are referred for such services pursuant to subsection (a) if such services result in their performance of substantial gainful activity which lasts for a continuous period of nine months. The determination of the amount of costs to be reimbursed under this subsection shall be made by the Commissioner of Social Security in accordance with criteria determined by him in the same manner as under section 222(d)(1)</quotedText>”. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s422">42 USC 422</ref>.</p></sidenote></content></paragraph> </section> </subtitle> <subtitle><num value="C">Subtitle C— </num><sidenote><p class="indent0 firstIndent0 fontsize8">Social Services Block Grant Act.</p></sidenote> <heading>Block Grants for Social Services</heading> <section> <heading class="centered smallCaps">short title</heading><num value="2351"><inline class="smallCaps">Sec</inline>. 2351. </num><content>This subtitle may be cited as the “<shortTitle role="subtitle">Social Services Block <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1305">42 USC 1305 note</ref>.</p></sidenote>Grant Act</shortTitle>”.</content> </section> <section> <heading class="centered smallCaps">title xx block grants</heading><num value="2352"><inline class="smallCaps">Sec</inline>. 2352. </num><subsection class="inline"><num value="a">(a) </num><content>Title XX of the Social Security Act is amended to read as follows: <quotedContent> <title><num value="XX">“TITLE XX—</num><heading>BLOCK GRANTS TO STATES FOR SOCIAL SERVICES</heading> <section> <heading class="centered smallCaps">“purposes of title; authorization of appropriations</heading><num value="2001">“<inline class="smallCaps">Sec</inline>. 2001. </num><chapeau>For the purposes of consolidating Federal assistance to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397">42 USC 1397</ref>.</p></sidenote>States for social services into a single grant, increasing State flexibility in using social service grants, and encouraging each State, as far as practicable under the conditions in that State, to furnish services directed at the goals of—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>achieving or maintaining economic self-support to prevent, reduce, or eliminate dependency;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>achieving or maintaining self-sufficiency, including reduction or prevention of dependency;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>preventing or remedying neglect, abuse, or exploitation of children and adults unable to protect their own interests, or preserving, rehabilitating or reuniting families;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>preventing or reducing inappropriate institutional care by providing for community-based care, home-based care, or other forms of less intensive care; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>securing referral or admission for institutional care when other forms of care are not appropriate, or providing services to individuals in institutions,</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">there are authorized to be appropriated for each fiscal year such sums as may be necessary to carry out the purposes of this title.</continuation> </section> <section> <heading class="centered smallCaps">“payments to states</heading><num value="2002">“<inline class="smallCaps">Sec</inline>. 2002. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Each State shall be entitled to payment under this <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397a">42 USC 1397a</ref>.</p></sidenote>title for each fiscal year in an amount equal to its allotment for such <page identifier="/us/stat/95/868">95 STAT. 868</page>fiscal year, to be used by such State for services directed at the goals set forth in section 2001, subject to the requirements of this title.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>For purposes of paragraph (1)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Services.</p></sidenote> <content class="inline">services which are directed at the goals set forth in section 2001 include, but are not limited to, child care services, protective services for children and adults, services for children and adults in foster care, services related to the management and maintenance of the home, day care services for adults, transportation services, family planning services, training and related services, employment services, information, referral, and counseling services, the preparation and delivery of meals, health support services and appropriate combinations of services designed to meet the special needs of children, the aged, the mentally retarded, the blind, the emotionally disturbed, the physically handicapped, and alcoholics and drug addicts; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Expenditures.</p></sidenote> <chapeau class="inline">expenditures for such services may include expenditures for—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>administration (including planning and evaluation);</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>personnel training and retraining directly related to the provision of those services (including both short- and long-term training at educational institutions through grants to such institutions or by direct financial assistance to students enrolled in such institutions); and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>conferences or workshops, and training or retraining through grants to nonprofit organizations within the meaning <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s501">26 USC 501</ref>.</p></sidenote>of section 501(c)(3) of the Internal Revenue Code of 1954 or to individuals with social services expertise, or through financial assistance to individuals participating in such conferences, workshops, and training or retraining (and this clause shall apply with respect to all persons involved in the delivery of such services).</content> </clause> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>The Secretary shall make payments in accordance with section 203 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4213) to each State from its allotment for use under this title.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Payments to a State from its allotment for any fiscal year must be expended by the State in such fiscal year or in the succeeding fiscal year.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>A State may transfer up to 10 percent of its allotment under section 2003 for any fiscal year for its use for that year under other provisions of Federal law providing block grants for support of health services, health promotion and disease prevention activities, or low-income home energy assistance (or any combination of those activities). Amounts allotted to a State under any provisions of Federal law referred to in the preceding sentence and transferred by a State for use in carrying out the purposes of this title shall be treated as if they were paid to the State under this title but shall not affect the computation of the State’s allotment under this title. The State shall inform the Secretary of any such transfer of funds.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Technical assistance.</p></sidenote> <content class="inline">A State may use a portion of the amounts described in subsection (a) for the purpose of purchasing technical assistance from public or private entities if the State determines that such assistance is required in developing, implementing, or administering programs funded under this title.</content> </subsection> </section> <section> <heading class="centered smallCaps">“allotments</heading><num value="2003">“<inline class="smallCaps">Sec</inline>. 2003. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397b">42 USC 1397b</ref>.</p></sidenote> <content class="inline">The allotment for any fiscal year to each of the jurisdictions of Puerto Rico, Guam, the Virgin Islands, and the Northern Mariana Islands shall be an amount which bears the same <page identifier="/us/stat/95/869">95 STAT. 869</page>ratio to the amount specified in subsection (c) as the amount which was specified for allocation to the particular jurisdiction involved for the fiscal year 1981 under section 2002(a)(2)(C) of this Act (as in effect <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/525">94 Stat. 525</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397a">42 USC 1397a</ref>.</p></sidenote>prior to the enactment of this section) bore to $2,900,000,000.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>The allotment for any fiscal year for each State other than the jurisdictions of Puerto Rico, Guam, the Virgin Islands, and the Northern Mariana Islands shall be an amount which bears the same ratio to—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the amount specified in subsection (c), reduced by</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the total amount allotted to those jurisdictions for that fiscal year under subsection (a),</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">as the population of that State bears to the population of all the States as determined by the Secretary (on the basis of the most recent data available from the Department of Commerce) and promulgated (subject to subsection (d)) prior to the first day of the third month of the preceding fiscal year.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><chapeau>The amount specified for purposes of subsections (a) and (b) shall be—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>$2,400,000,000 for the fiscal year 1982;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>$2,450,000,000 for the fiscal year 1983;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>$2,500,000,000 for the fiscal year 1984;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>$2,600,000,000 for the fiscal year 1985; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>$2,700,000,000 for the fiscal year 1986 or any succeeding fiscal year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>The determination and promulgation required by subsection (b) with respect to the fiscal year 1982 shall be made as soon as possible after the enactment of the Omnibus Budget Reconciliation Act of 1981. <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 357.</p></sidenote></content> </subsection> </section> <section> <heading class="centered smallCaps">“state administration</heading><num value="2004">“<inline class="smallCaps">Sec</inline>. 2004. </num><content>Prior to expenditure by a State of payments made to it <sidenote><p class="indent0 firstIndent0 fontsize8">Public report.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397c">42 USC 1397c</ref>.</p></sidenote>under section 2002 for any fiscal year, the State shall report on the intended use of the payments the State is to receive under this title, including information on the types of activities to be supported and the categories or characteristics of individuals to be served. The report shall be transmitted to the Secretary and made public within the State in such manner as to facilitate comment by any person (including any Federal or other public agency) during development of the report and after its completion. The report shall be revised throughout the year as may be necessary to reflect substantial changes in the activities assisted under this title, and any revision shall be subject to the requirements of the previous sentence.</content> </section> <section> <heading class="centered smallCaps">“limitations on use of grants</heading><num value="2005">“<inline class="smallCaps">Sec</inline>. 2005. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Except as provided in subsection (b), grants made <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397d">42 USC 1397d</ref>.</p></sidenote>under this title may not be used by the State, or by any other person with which the State makes arrangements to carry out the purposes of this title—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>for the purchase or improvement of land, or the purchase, construction, or permanent improvement (other than minor remodeling) of any building or other facility;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>for the provision of cash payments for costs of subsistence or for the provision of room and board (other than costs of subsistence during rehabilitation, room and board provided for a short term as an integral but subordinate part of a social service, or temporary emergency shelter provided as a protective service);</content></paragraph> <page identifier="/us/stat/95/870">95 STAT. 870</page> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>for payment of the wages of any individual as a social service (other than payment of the wages of welfare recipients employed in the provision of child day care services);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>for the provision of medical care (other than family planning services, rehabilitation services, or initial detoxification of an alcoholic or drug dependent individual) unless it is an integral but subordinate part of a social service for which grants may be used under this title;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>for social services (except services to an alcoholic or drug dependent individual or rehabilitation services) provided in and by employees of any hospital, skilled nursing facility, intermediate care facility, or prison, to any individual living in such institution;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><content>for the provision of any educational service which the State makes generally available to its residents without cost and without regard to their income;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>for any child day care services unless such services meet applicable standards of State and local law; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">“(8) </num><content>for the provision of cash payments as a service (except as otherwise provided in this section).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Waiver.</p></sidenote> <content class="inline">The Secretary may waive the limitation contained in subsection (a) (1) and (4) upon the State’s request for such a waiver if he finds that the request describes extraordinary circumstances to justify the waiver and that permitting the waiver will contribute to the State’s ability to carry out the purposes of this title.</content> </subsection> </section> <section> <heading class="centered smallCaps">“reports and audits</heading><num value="2006">“<inline class="smallCaps">Sec</inline>. 2006. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397e">42 USC 1397e</ref>.</p></sidenote> <content class="inline">Each State shall prepare reports on its activities carried out with funds made available (or transferred for use) under this title. Reports shall be in such form, contain such information, and be of such frequency (but not less often than every two years) as the State finds necessary to provide an accurate description of such activities, to secure a complete record of the purposes for which funds were spent, and to determine the extent to which funds were spent in a manner consistent with the reports required by section 2004. The State shall make copies of the reports required by this section available for public inspection within the State and shall transmit a <sidenote><p class="indent0 firstIndent0 fontsize8">Copies.</p></sidenote>copy to the Secretary. Copies shall also be provided, upon request, to any interested public agency, and each such agency may provide its views on these reports to the Congress.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>Each State shall, not less often than every two years, audit its expenditures from amounts received (or transferred for use) under this title. Such State audits shall be conducted by an entity independent of any agency administering activities funded under this title, in accordance with generally accepted auditing principles. Within 30 days following the completion of each audit, the State shall submit a copy of that audit to the legislature of the State and to the Secretary. <sidenote><p class="indent0 firstIndent0 fontsize8">Unexpended funds.</p></sidenote>Each State shall repay to the United States amounts ultimately found not to have been expended in accordance with this title, or the Secretary may offset such amounts against any other amount to which the State is or may become entitled under this title.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>For other provisions requiring States to account for Federal grants, see section 202 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4212).</content> </subsection> </section> <page identifier="/us/stat/95/871">95 STAT. 871</page> <section> <heading class="centered smallCaps">“child day care services</heading><num value="2007">“<inline class="smallCaps">Sec</inline>. 2007. </num><subsection class="inline"><num value="a">(a) </num><content>Subject to subsection (b), sums granted by a State to <sidenote><p class="indent0 firstIndent0 fontsize8">Grants to qualified provider.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397f">42 USC 1397f</ref>.</p></sidenote>a qualified provider of child day care services (as defined in subsection (c)) to assist such provider in meeting its work incentive program expenses (as defined in subsection (c)) with respect to individuals employed in jobs related to the provision of child day care services in one or more child day care facilities of such provider, shall be deemed for purposes of section 2002 to constitute expenditures made by the State in accordance with the provisions of this title for the provision of child day care services. <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>The provisions of subsection (a) shall not be applicable with respect to any grant made to a particular qualified provider of child day care services to the extent that (as determined by the Secretary) such grant is or will be used to pay wages to any employee at an annual rate in excess of $6,000, in the case of a public or nonprofit private provider, or at an annual rate in excess of $5,000, or to pay more than 80 percent of the wages of any employee, in the case of any other provider.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><chapeau>For purposes of this subsection— <sidenote><p class="indent0 firstIndent0 fontsize8">Definitions.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the term ‘qualified provider of child day care services’, when used in reference to a recipient of a grant by a State, includes a provider of such services only if, of the total number of children receiving such services from such provider in the facility with respect to which the grant is made, at least 20 percent thereof have some or all of the costs for the child day care services so furnished to them by such provider paid for under a program conducted pursuant to this title; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the term ‘work incentive program expenses’ means expenses of a qualified provider of child day care services which constitute work incentive program expenses as defined in section 50B(a)(1) of the Internal Revenue Code of 1954, or which would <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s50B">26 USC 50B</ref>.</p></sidenote>constitute work incentive program expenses as so defined if the provider were a taxpayer entitled to a credit (with respect to the wages involved) under section 40 of such Code.”. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s40">26 USC 40</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1301">42 USC 1301</ref>.</p><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 867.</p></sidenote></content></paragraph> </subsection> </quotedContent> </content> </subsection> </section> (b) Section 1101(a)(1) of such Act is amended by adding at the end thereof the following new sentence: “Such term when used in title XX also includes the Virgin Islands, American Samoa, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands.”.
conforming amendments to the social security actSec. 2353. (a) (1) Section 3(a) of the Social Security Act is amended—

42 USC 303.

 (A) by amending paragraph (4) to read as follows: “(4) in the case of any State, an amount equal to the sum of the following proportions of the total amounts expended during such quarter as found necessary by the Secretary of Health and Human Services for the proper and efficient administration of the State plan— “(A) 75 per centum of so much of such expenditures as are for the training (including both short- and long-term training at educational institutions through grants to such institutions or by direct financial assistance to students enrolled in such institutions) of personnel employed or preparing for employment by the State agency or by the local agency administering the plan in the political subdivision; plus “(B) one-half of the remainder of such expenditures.”; and (B) by striking out paragraph (5). 95 STAT. 872 (2)

42 USC 303.

 Section 3(c) of such Act is repealed. (b) (1)

42 USC 602 note.

 Sections 402(a)(5), 402(a)(13), 402(a)(14), 402(a)(15) 403(a)(3), 403(e), and 406(d) of such Act as in effect with respect to Puerto Rico, Guam, and the Virgin Islands are repealed. (2)

42 USC 602 note.

 Sections 402(a)(5), 402(a)(15), and 403(a)(3) of such Act as they apply to the fifty States and the District of Columbia shall be applicable to Puerto Rico, Guam, and the Virgin Islands. (3)

42 USC 603 note.

 Section 248(b) of the Social Security Amendments of 1967 (Public Law 90–248) is repealed. (c)

42 USC 602.

 Section 402(a)(15) of such Act is amended— (1) by striking out “as part of the program of the State for the provision of services under title XX”; and (2) by striking out “or clause (14)”. (d)

42 USC 603.

 Section 403(a)(3) of such Act is amended by striking out “service described in section 2002(a)(1)” and inserting in lieu thereof “service described in section 2002(a)”. (e) (1)

42 USC 1203.

 Section 1003(a) of such Act is amended— (A) by amending paragraph (3) to read as follows: “(3) in the case of any State, an amount equal to the sum of the following proportions of the total amounts expended during such quarter as found necessary by the Secretary of Health and Human Services for the proper and efficient administration of the State plan— “(A) 75 per centum of so much of such expenditures as are for the training (including both short- and long-term training at educational institutions through grants to such institutions or by direct financial assistance to students enrolled in such institutions) of personnel employed or preparing for employment by the State agency or by the local agency administering the plan in the political subdivision; plus “(B) one-half of the remainder of such expenditures.”; and (B) by striking out paragraph (4). (2) Section 1003(c) of such Act is repealed. (f)

42 USC 1308.

 Section 1108(a) of such Act is amended in the matter preceding paragraph (1) to read as follows: “(a) The total amount certified by the Secretary of Health and Human Services under titles I, X, XIV, and XVI, and under parts A

42 USC 301, 1201, 1351, 1381, 601, 670.

94 Stat. 501.

42 USC 1315.

and E of title IV (exclusive of any amounts on account of services and items to which subsection (b) applies)—”. (g) Section 1115(a) of such Act is amended— (1) in the matter preceding paragraph (1), by striking out “XIX, or XX” and inserting in lieu thereof “or XIX”; (2) in paragraph (1), by striking out “1902, 2002, 2003, or 2004” and inserting in lieu thereof “or 1902”; and (3) in paragraph (2)— (A) by striking out “1903, or 2002” and inserting in lieu thereof “or 1903”, and (B) by striking out “or expenditures with respect to which payment shall be made under section 2002,”. (h)

42 USC 1316.

 Section 1116 of such Act is amended— (1) in subsections (a)(1) and (b), by striking out “XIX, or XX” and inserting in lieu thereof “or XIX”; (2) in subsection (a)(3), by striking out “1904, or 2003” and inserting in lieu thereof “or 1904”; and (3) in subsection (d), by striking out “XIX, XX” and inserting in lieu thereof “or XIX”. (i)

42 USC 1320a–3.

 Section 1124(a) of such Act is amended— 95 STAT. 873 (1) in paragraph (1), by striking out “XIX and XX” each place it appears and inserting in lieu thereof “and XIX”; and (2) in paragraph (2)— (A) by inserting “or” after the semicolon at the end of subparagraph (B); (B) by striking out “; or” at the end of subparagraph (C) and inserting in lieu thereof a period; and (C) by striking out subparagraph (D). (j) Section 1126(a) of such Act is amended by striking out “XIX, and

42 USC 1320a–5.

XX” and inserting in lieu thereof “and XIX”. (k) Section 1128(a) of such Act is amended—

94 Stat. 2619.

42 USC 1320a–7.

 (1) in paragraph (2)(A), by striking out “or title XX,”; and (2) in paragraph (2)(B), by striking out “or title XX”. (l) (1) Section 1403(a) of such Act is amended—

42 USC 1353.

 (A) by amending paragraph (3) to read as follows: “(3) in the case of any State, an amount equal to the sum of the following proportions of the total amounts expended during such quarter as found necessary by the Secretary of Health and Human Services for the proper and official administration of the State plan— “(A) 75 per centum of so much of such expenditures as are for the training (including both short- and long-term training at educational institutions through grants to such institutions or by direct financial assistance to students enrolled in such institutions) of personnel employed or preparing for employment by the State agency or by the local agency administering the plan in the political subdivision; plus “(B) one-half of the remainder of such expenditures.”; and (B) by striking out paragraph (4). (2) Section 1403(c) of such Act is repealed. (m) (1) Section 1601 of such Act is amended—

42 USC 1381 note.

 (A) by inserting “and” before “(b)” the first time it appears; and (B) by striking out “and (c)” and all that follows through “self-care,”. (2) Section 1603(a) of such Act is amended—

42 USC 1383 note.

 (A) by inserting “and” after the semicolon at the end of paragraph (2)(B); (B) by amending paragraph (4) to read as follows: “(4) in the case of any State, an amount equal to the sum of the following proportions of the total amounts expended during such quarter as found necessary by the Secretary of Health and Human Services for the proper and efficient administration of the State plan— “(A) 75 per centum of so much of such expenditures as are for the training (including both short- and long-term training at educational institutions through grants to such institutions or by direct financial assistance to students enrolled in such institutions) of personnel employed or preparing for employment by the State agency or by the local agency administering the plan in the political subdivision; plus “(B) one-half of the remainder of such expenditures.”; and (C) by striking out paragraph (5). (3) Section 1603(c) of such Act is repealed. (n) Section 1616(e)(2) of such Act is amended by striking out “, as a

42 USC 1382e.

part of the services program planning procedures established pursuant to section 2004 of this Act,”. (o) Section 1619 of such Act is amended—

94 Stat. 445.

42 USC 1382h.

 95 STAT. 874 (1) by striking out “titles XIX and XX” each place it appears and inserting in lieu thereof “title XIX”, and (2) by striking out “title XIX or XX” and inserting in lieu thereof “title XIX”. (p)

94 Stat. 446.

42 USC 13821.

 Section 1620(c) of such Act is amended by striking out the matter following the end of paragraph (7). (q)

42 USC 607.

Ante, p. 846.

 Section 407(d)(1) of such Act is amended by striking out “a community work and training program under section 409 or any other work and training program subject to the limitations in section 409, or” and inserting in lieu thereof “a community work experience program under section 409, or”. (r)

42 USC 671.

 Section 471(a)(10) of such Act is amended by striking out “standards referred to in section 2003(d)(1)(F)” and inserting in lieu thereof “standards in effect in the State with respect to child day care services under title XX”. (s)

42 USC 1397a note.

 Section 3(f) of the Social Security Amendments of 1974 (Public Law 93–647) is repealed.
effective dateSec. 2354.

42 USC 1397 note.

 Except as otherwise explicitly provided, the provisions of this subtitle, and the repeals and amendments made by this subtitle, shall become effective on October 1, 1981.
study of state social service programsSec. 2355.

42 USC 1397 note.

 The Secretary of Health and Human Services shall conduct a study to identify criteria and mechanisms which may be useful for the States in assessing the effectiveness and efficiency of the State social service programs carried out with funds made

Ante, p. 867.

available under title XX of the Social Security Act. The study shall include consideration of Federal incentive payments as an option in rewarding States having high performance social service programs.

Report to Congress.

The Secretary shall report the results of such study to the Congress within one year after the date of the enactment of this Act.
<num value="XXIV">TITLE XXIV—</num><heading>UNEMPLOYMENT COMPENSATION ELIMINATION OF NATIONAL TRIGGER</heading> <section class="firstIndent1 fontsize10"><num value="2401"><inline class="smallCaps">Sec</inline>. 2401. </num><subsection class="inline"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Paragraphs (1) and (2) of section 203(a) of the Federal-State Extended Unemployment Compensation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3304">26 USC 3304 note</ref>.</p></sidenote>Act of 1970 are amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>shall begin with the third week after the first week for which there is a State ‘on’ indicator; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>shall end with the third week after the first week for which there is a State ‘off’ indicator.”.</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Technical Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Section 203 of such Act is amended by striking out subsection (d) and by redesignating subsections (e) and (f) as subsections (d) and (e), respectively.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Subparagraph (B) of section 203(b)(1) of such Act is amended by striking out “<quotedText>by reason of a State ‘on’ indicator</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Paragraph (2) of section 203(b) of such Act is amended by striking out “<quotedText>(or all the States)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><chapeau>Subsection (e) of section 203 of such Act (as redesignated by paragraph (D) is amended—</chapeau> <page identifier="/us/stat/95/875">95 STAT. 875</page> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>subsections (d) and (e)</quotedText>” in paragraph (1) and inserting in lieu thereof “<quotedText>subsection (d)</quotedText>”,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>all State agencies (or, in the case of subsection (e), by the State agency)</quotedText>” in paragraph (1)(A) and inserting in lieu thereof “<quotedText>the State agency</quotedText>”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out paragraphs (2) and (3) and inserting in lieu thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Determinations under subsection (d) shall be made by the State agency in accordance with regulations prescribed by the Secretary.”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><chapeau>Subsection (a) of section 204 of such Act is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3304">26 USC 3304 note</ref>.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out paragraph (3), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by redesignating paragraph (4) as paragraph (3).</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><inline class="smallCaps">Effective Dates</inline>.—</heading><content>The amendments made by this section shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3304">26 USC 3304 note</ref>.</p></sidenote>apply to weeks beginning after the date of the enactment of this Act.</content> </subsection> </section> <section> <heading class="centered smallCaps">claims for extended or additional compensation not included in determining rate of insured unemployment</heading><num value="2402"><inline class="smallCaps">Sec</inline>. 2402. </num><subsection class="inline"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Subparagraph (A) of section 203(e)(1) of the Federal-State Extended Unemployment Compensation Act of 1970 (as redesignated by section 2401(b)(1) of this Act) is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3304">26 USC 3304 note</ref>.</p></sidenote>amended by striking out “<quotedText>individuals filing claims</quotedText>” and inserting in lieu thereof “<quotedText>individuals filing claims for regular compensation</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3304">26 USC 3304 note</ref>.</p></sidenote>apply for purposes of determining whether there are State “on” or “off” indicators for weeks beginning after the date of the enactment of this Act. For purposes of making such determinations for such weeks, such amendment shall be deemed to be in effect for all weeks whether beginning before, on, or after such date of enactment.</content> </subsection> </section> <section> <heading class="centered smallCaps">change in state trigger for extended compensation</heading><num value="2403"><inline class="smallCaps">Sec</inline>. 2403. </num><subsection class="inline"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><chapeau>Subsection (d) of section 203 of the Federal-State Extended Unemployment Compensation Act of 1970 (as redesignated by section 2401(b)(1) of this Act) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>in paragraph (1)(B), by striking out “<quotedText>4</quotedText>” and inserting in lieu thereof “<quotedText>5</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>in the matter following paragraph (2), by striking out “<quotedText>the figure ‘4’ contained in subparagraph (B) thereof were ‘5’</quotedText>” and inserting in lieu thereof “<quotedText>the figure ‘5’ contained in subparagraph (B) thereof were ‘6’</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by subsection (a) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3304">26 USC 3304 note</ref>.</p></sidenote>shall apply to weeks beginning after September 25, 1982.</content> </subsection> </section> <section> <heading class="centered smallCaps">qualifying requirement for extended compensation</heading><num value="2404"><inline class="smallCaps">Sec</inline>. 2404. </num><subsection class="inline"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Subsection (a) of section 202 of the Federal-State Extended Unemployment Compensation Act of 1970 is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3304">26 USC 3304 note</ref>.</p></sidenote>amended by redesignating paragraph (5) as paragraph (6) and inserting after paragraph (4) the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>Notwithstanding the provisions of paragraph (2), an individual shall not be eligible for extended compensation unless, in the base period with respect to which the individual exhausted all rights to regular compensation under the State law, the individual had 20 weeks of full-time insured employment, or the equivalent in insured wages. For purposes of this paragraph, the equivalent in insured wages shall be earnings covered by the State law for compensation purposes which exceed 40 times the <page identifier="/us/stat/95/876">95 STAT. 876</page>individual’s most recent weekly benefit amount or 1 ½ times the individual’s insured wages in that calendar quarter of the base period in which the individual’s insured wages were the highest (or one such quarter if his wages were the same for more than one such quarter). The State shall by law provide which one of the foregoing methods of measuring employment and earnings shall be used in that State.”.</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3304">26 USC 3304 note</ref>.</p></sidenote><inline class="smallCaps">Conforming Amendment</inline>.—</heading><chapeau>Section 202(a)(6) of such Act (as redesignated by subsection (a)) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>paragraphs (3) and (4)</quotedText>” and inserting in lieu thereof “<quotedText>paragraphs (3), (4), and (5)</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting “<quotedText>extended compensation or</quotedText>” before “<quotedText>sharable regular compensation</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3304">26 USC 3304 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendments made by this section shall apply with respect to extended compensation and sharable regular compensation payable for weeks which begin after September 25, 1982.</content> </subsection> </section> <section> <heading class="centered smallCaps">eligibility requirements for ex-servicemembers</heading><num value="2405"><inline class="smallCaps">Sec</inline>. 2405. </num><subsection class="inline"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Section 8521(a)(1)(B) of title 5, United States Code, is amended to read as follows: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><chapeau>with respect to that service, the individual—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>was discharged or released under honorable conditions;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>did not resign or voluntarily leave the service; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>was not released or discharged for cause as defined by the Department of Defense;”.</content> </clause> </subparagraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s8521">5 USC 8521 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply with respect to terminations of service on or after July 1, 1981, but only in the case of weeks of unemployment beginning after the date of the enactment of this Act.</content> </subsection> </section> <section> <heading class="centered smallCaps">adjustments to provisions which increase federal unemployment tax in states with outstanding loans</heading><num value="2406"><inline class="smallCaps">Sec</inline>. 2406. </num><subsection class="inline"><num value="a">(a) </num> <heading><inline class="smallCaps">Limitations on Credit Reduction in Certain <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3302">26 USC 3302</ref>.</p></sidenote>Cases</inline>.—</heading><content>Section 3302 of the Internal Revenue Code of 1954 (relating credits against unemployment tax) is amended by adding at the end thereof the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <heading><inline class="smallCaps">Limitation on Credit Reduction</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num> <heading><inline class="smallCaps">Limitation</inline>.—</heading><chapeau>In the case of any State which meets the requirements of paragraph (2) with respect to any taxable year beginning before January 1, 1988, the reduction under subsection (c)(2) in credits otherwise applicable to taxpayers subject to the unemployment compensation law of such State shall not exceed the greater of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the reduction which was in effect with respect to such State under subsection (c)(2) for the preceding taxable year, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>0.6 percent of the wages paid by the taxpayer during such taxable year which are attributable to such State.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <heading><inline class="smallCaps">Requirements</inline>.—</heading><chapeau>The requirements of this paragraph are met by any State with respect to any taxable year if the Secretary of Labor determines (on or before November 10 of such taxable year) that—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>no State action was taken during the 12-month period ending on September 30 of such taxable year (excluding any action required under State law as in effect prior to the date <page identifier="/us/stat/95/877">95 STAT. 877</page>of the enactment of this subsection) which has resulted or will result in a reduction in such State’s unemployment tax effort (as defined by the Secretary of Labor in regulations),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>no State action was taken during the 12-month period ending on September 30 of such taxable year (excluding any action required under State law as in effect prior to the date of the enactment of this subsection) which has resulted or will result in a net decrease in the solvency of the State unemployment compensation system (as defined by the Secretary of Labor in regulations),</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>the State unemployment tax rate for the taxable year equals or exceeds the average benefit cost ratio for calendar years in the 5-calendar year period ending with the last calendar year before the taxable year, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>the outstanding balance for such State of advances under title XII of the Social Security Act on September 30 of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1321">42 USC 1321</ref>.</p></sidenote>such taxable year was not greater than the outstanding balance for such State of such advances on September 30 of the third preceding taxable year (or, for purposes of applying this subparagraph to taxable year 1983, September 30, 1981).</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">The requirements of subparagraphs (C) and (D) shall not apply to taxable years 1981 and 1982.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <heading><inline class="smallCaps">Credit reductions for subsequent years</inline>.—</heading><content>If the credit reduction under subsection (c)(2) is limited by reason of paragraph (1) of this subsection for any taxable year, for purposes of applying subsection (c)(2) to subsequent taxable years (including years after 1987), the taxable year for which the credit reduction was so limited (and January 1 thereof) shall not be taken into account.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num> <heading><inline class="smallCaps">State unemployment tax rate</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The State unemployment tax rate for any taxable year is the percentage obtained by dividing—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the total amount of contributions paid into the State unemployment fund with respect to such taxable year, by</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the total amount of the remuneration subject to contributions under the State unemployment compensation law with respect to such taxable year (determined without regard to any limitation on the amount of wages subject to contribution under the State law).</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Treatment of additional tax under this chapter</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">Taxable year 1983</inline>.—</heading><content>In the case of taxable year 1983, any additional tax imposed under this chapter with respect to any State by reason of subsection (c)(2) shall be treated as contributions paid into the State unemployment fund with respect to such taxable year.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Taxable year 1984</inline>.—</heading><content>In the case of taxable year 1984, any additional tax imposed under this chapter with respect to any State by reason of subsection (c)(2) shall (to the extent such additional tax is attributable to a credit reduction in excess of 0.6 of wages attributable to such State) be treated as contributions paid into the State unemployment fund with respect to such taxable year.</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num> <heading><inline class="smallCaps">Benefit cost ratio</inline>.—</heading><chapeau>For purposes of this subsection—</chapeau> <page identifier="/us/stat/95/878">95 STAT. 878</page> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num> <heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The benefit cost ratio for any calendar year is the percentage determined by dividing—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the sum of the total of the compensation paid under the State unemployment compensation law during such calendar year and any interest paid during such calendar year on advances made to the State under <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1321">42 USC 1321</ref>.</p></sidenote>title XII of the Social Security Act, by</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the total amount of the remuneration subject to contributions under the State unemployment compensation law with respect to such calendar year (determined without regard to any limitation on the amount of remuneration subject to contribution under the State law).</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <heading><inline class="smallCaps">Reimbursable benefits not taken into account</inline>.—</heading><chapeau>For purposes of subparagraph (A), compensation shall not be taken into account to the extent—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the State is entitled to reimbursement for such compensation under the provisions of any Federal law, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>such compensation is attributable to services performed for a reimbursing employer.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num> <heading><inline class="smallCaps">Reimbursing employer</inline>.—</heading><content>The term ‘reimbursing employer’ means any governmental entity or other organization (or group of governmental entities or any other organizations) which makes reimbursements in lieu of contributions to the State unemployment fund.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <heading><inline class="smallCaps">Special rules for years before 1985</inline>.—</heading> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num> <heading><inline class="smallCaps">Taxable year 1983</inline>.—</heading><content>For purposes of determining whether a State meets the requirements of paragraph (2)(C) for taxable year 1983, only regular compensation (as defined in section 205 of the Federal-State Extended <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3304">26 USC 3304 note</ref>.</p></sidenote>Unemployment Compensation Act of 1970) shall be taken into account for purposes of determining the benefit ratio for any preceding calendar year before 1982.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num> <heading><inline class="smallCaps">Taxable year 1984</inline>.—</heading><content>For purposes of determining whether a State meets the requirements of paragraph (2)(C) for taxable year 1984, only regular compensation (as so defined) shall be taken into account for purposes of determining the benefit ratio for any preceding calendar year before 1981.</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num> <heading><inline class="smallCaps">Rounding</inline>.—</heading><content>If any percentage determined under subparagraph (A) is not a multiple of .1 percent, such percentage shall be reduced to the nearest multiple of .1 percent.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num> <heading><inline class="smallCaps">Reports</inline>.—</heading><content>The Secretary of Labor may, by regulations, require a State to furnish such information at such time and in such manner as may be necessary for purposes of this subsection.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num> <heading><inline class="smallCaps">Definitions and special rules</inline>.—</heading><content>The definitions and special rules set forth in subsection (d) shall apply to this subsection in the same manner as they apply to subsection (c).”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3302">26 USC 3302 note</ref>.</p></sidenote><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1980.</content> </subsection> </section> <page identifier="/us/stat/95/879">95 STAT. 879</page> <section> <heading class="centered smallCaps">interest on loans made to state unemployment funds</heading><num value="2407"><inline class="smallCaps">Sec</inline>. 2407. </num><subsection class="inline"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Section 1202 of the Social Security Act is amended by adding at the end thereof the following new <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1322">42 USC 1322</ref>.</p></sidenote>subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Except as otherwise provided in this subsection, each State shall pay interest on any advance made to such State under section 1201. Interest so payable with respect to periods during any calendar <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1321">42 USC 1321</ref>.</p></sidenote>year shall be at the rate determined under paragraph (4) for such calendar year.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>No interest shall be required to be paid under paragraph (1) with respect to any advance made during any calendar year if—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>such advance is repaid in full before the close or September 30 of the calendar year in which the advance was made, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>no other advance was made to such State under section 1201 during such calendar year and after the date on which the repayment of the advance was completed.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><subparagraph class="inline"><num value="A">(A) </num><content>Interest payable under paragraph (1) which was attributable to periods during any fiscal year shall be paid by the State to the Secretary of the Treasury not later than the first day of the following fiscal year. If interest is payable under paragraph (1) on any advance (hereinafter in this subparagraph referred to as the ‘first advance’) by reason of another advance made to such State after September 30 of the calendar year in which the first advance was made, interest on such first advance attributable to periods before such September 30 shall be paid not later than the day after the date on which the other advance was made.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>Notwithstanding subparagraph (A), in the case of any advance made during the last 5 months of any fiscal year, interest on such advance attributable to periods during such fiscal year shall not be required to be paid before the last day of the succeeding taxable year. Any interest the time for payment of which is deferred by the preceding sentence shall bear interest in the same manner as if it were an advance made on the day on which it would have been required to be paid but for this subparagraph.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><chapeau>The interest rate determined under this paragraph with respect to any calendar year is a percentage (but not in excess of 10 percent) determined by dividing—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the aggregate amount credited under section 904(e) to <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1104">42 USC 1104</ref>.</p></sidenote>State accounts on the last day of the last calendar quarter of the immediately preceding calendar year, by</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the aggregate of the average daily balances of the State accounts for such quarter as determined under section 904(e).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>Interest required to be paid under paragraph (1) shall not be paid (directly or indirectly) by a State from amounts in its unemployment fund. If the Secretary of Labor determines that any State action results in the paying of such interest directly or indirectly (by an equivalent reduction in State unemployment taxes or otherwise) from such unemployment fund, the Secretary of Labor shall not certify such State’s unemployment compensation law under section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3304">26 USC 3304</ref>.</p></sidenote>3304 of the Internal Revenue Code of 1954. Such noncertification shall be made in accordance with section 3304(c) of such Code.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">“(6) </num><subparagraph class="inline"><num value="A">(A) </num><content>For purposes of paragraph (2), any voluntary repayment shall be applied against advances made under section 1201 on the last made first repaid basis. Any other repayment of such an advance shall be applied against advances on a first made first repaid basis.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>For purposes of this paragraph, the term ‘voluntary repayment’ <sidenote><p class="indent0 firstIndent0 fontsize8">“Voluntary repayment.”</p></sidenote>means any repayment made under subsection (a).</content></subparagraph> </paragraph> <page identifier="/us/stat/95/880">95 STAT. 880</page> <paragraph class="firstIndent1 fontsize10"><num value="7">“(7) </num><content>This subsection shall only apply to advances made on or after April 1, 1982, and before January 1, 1988.”</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><inline class="smallCaps">Technical Amendments</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1321">42 USC 1321</ref>.</p></sidenote> <content class="inline">Paragraph (1) of section 1201 of the Social Security Act is amended by striking out “<quotedText>without interest</quotedText>” and inserting in lieu thereof “<quotedText>with interest to the extent provided in section 1202(b)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1322">42 USC 1322</ref>.</p></sidenote> <content class="inline">Section 1202 of such Act is amended by striking out “<quotedText><inline class="smallCaps">Sec</inline>. 1202.</quotedText>” and inserting in lieu thereof “<quotedText><inline class="smallCaps">Sec</inline>. 1202. (a)</quotedText>”.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">certification of state unemployment laws; effective dates</heading><num value="2408"><inline class="smallCaps">Sec</inline>. 2408. </num><subsection class="inline"><num value="a">(a) </num> <heading><inline class="smallCaps">General Rule</inline>.—</heading><content>Section 3304(c) of the Internal <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3304">26 USC 3304</ref>.</p></sidenote>Revenue Code of 1954 is amended by striking out the last two sentences and inserting in lieu thereof the following: “<quotedText>On October 31 of any taxable year, the Secretary of Labor shall not certify any State which, after reasonable notice and opportunity for hearing to the State agency, the Secretary of Labor finds has failed to amend its law so that it contains each of the provisions required by law to be included therein (including provisions relating to the Federal-State <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3304">26 USC 3304 note</ref>.</p></sidenote>Extended Unemployment Compensation Act of 1970 (or any amendments thereto) as required under subsection (a)(11)), or has, with respect to the twelve-month period ending on such October 31, failed to comply substantially with any such provision.</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <heading><sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3304">26 USC 3304 note</ref>.</p></sidenote><inline class="smallCaps">Transitional Rules</inline>.—</heading> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>Except as otherwise provided in paragraph (2)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>The amendments made by sections 2401 and 2402 shall be required to be included in State unemployment compensation laws for purposes of certifications under section 3304(c) of the Internal Revenue Code of 1954 on October 31 of any taxable year after 1980; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>the amendments made by sections 2403 and 2404 shall be required to be included in such laws for purposes of such certifications on October 31 of any taxable year after 1981.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num><chapeau>In the case of any State the legislature of which—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>does not meet in a session which begins after the date of the enactment of this Act and prior to September 1, 1981, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>if in session on the date of the enactment of this Act, does not remain in session for a period of at least 25 calendar days,</content> </clause> <continuation class="indent0 firstIndent0 fontsize10">the date “1980” in paragraph (1)(A) shall be deemed to be “1981”.</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><chapeau>In the case of any State the legislature of which—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>does not meet in a session which begins after the date of the enactment of this Act and prior to September 1, 1982, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>if in session on the date of the enactment of this Act, does not remain in session for a period of at least 25 calendar days,</content> </clause> <continuation class="indent0 firstIndent0 fontsize10">the date “1981” in paragraph (1)(B) shall be deemed to be “1982”.</continuation> </subparagraph> </paragraph> </subsection> </section> 95 STAT. 881 <num value="XXV">TITLE XXV—</num><heading>TRADE ADJUSTMENT ASSISTANCE</heading> <subtitle><num value="A">Subtitle A—</num><heading>Adjustment Assistance for Workers</heading> <section> <heading class="centered smallCaps">group eligibility requirements for adjustment assistance</heading><num value="2501"><inline class="smallCaps">Sec</inline>. 2501. </num><chapeau>Section 222 of the Trade Act of 1974 (19 U.S.C. 2272) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by amending paragraph (3) by striking out “<quotedText>contributed importantly to</quotedText>” and inserting in lieu thereof “<quotedText>were a substantial cause of</quotedText>”, and by striking out “<quotedText>to such decline</quotedText>” and inserting in lieu thereof “<quotedText>of such decline</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by amending the last sentence to read as follows: <quotedContent> <p class="indent0 firstIndent0 fontsize10">“For purposes of paragraph (3), the term ‘substantial cause’ means a cause which is important and not less than any other cause.”.</p> </quotedContent> </content></paragraph> </section> <section> <heading class="centered smallCaps">benefit information to workers</heading><num value="2502"><inline class="smallCaps">Sec</inline>. 2502. </num><content>Subchapter A of chapter 2 of title II of the Trade Act of 1974 is amended by adding at the end thereof the following new section: <quotedContent> <section><num value="225">“SEC. 225. </num> <heading>BENEFIT INFORMATION TO WORKERS. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2275">19 USC 2275</ref>.</p></sidenote></heading> <content>“The Secretary shall provide full information to workers about the benefit allowances, training, and other employment services available under this chapter and about the petition and application procedures, and the appropriate filing dates, for such allowances, training and services. The Secretary shall provide whatever assistance is necessary to enable groups of workers to prepare petitions or applications for program benefits. The Secretary shall make every effort to insure that cooperating State agencies fully comply with the agreements entered into under section 239(a) and shall periodically <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2311">19 USC 2311</ref>.</p></sidenote>review such compliance. The Secretary shall inform the State Board for Vocational Education or equivalent agency and other public or private agencies, institutions, and employers, as appropriate, of each certification issued under section 223 and of projections, if available, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2273">19 USC 2273</ref>.</p><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 885.</p></sidenote>of the needs for training under section 236 as a result of such certification.”.</content> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">qualifying requirements for workers</heading><num value="2503"><inline class="smallCaps">Sec</inline>. 2503. </num><content>Section 231 of the Trade Act of 1974 (19 U.S.C. 2291) is amended to read as follows: <quotedContent> <section><num value="231">“SEC. 231. </num> <heading>QUALIFYING REQUIREMENTS FOR WORKERS.</heading> <subsection class="indent0 fontsize10"><num value="A">“(a) </num><chapeau>Payment of a trade readjustment allowance shall be made to an adversely affected worker covered by a certification under subchapter A who files an application for such allowance for any week of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2271">19 USC 2271</ref>.</p></sidenote>unemployment which begins more than 60 days after the date on which the petition that resulted in such certification was filed under section 221, if the following conditions are met:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><chapeau>Such worker’s total or partial separation before his application under this chapter occurred—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>on or after the date, as specified in the certification under which he is covered, on which total or partial separation began or threatened to begin in the adversely affected employment,</content></subparagraph> <page identifier="/us/stat/95/882">95 STAT. 882</page> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>before the expiration of the 2-year period beginning <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2273">19 USC 2273</ref>.</p></sidenote>on the date on which the determination under section 223 was made, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>before the termination date (if any) determined pursuant to section 223(d).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>Such worker had, in the 52-week period ending with the week in which such total or partial separation occurred, at least 26 weeks of employment at wages of $30 or more a week in adversely affected employment with a single firm or subdivision of a firm, or, if data with respect to weeks of employment with a firm are not available, equivalent amounts of employment computed under regulations prescribed by the Secretary. For the purposes of this paragraph, any week in which such worker—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>is on employer-authorized leave for purposes of vacation, sickness, injury, maternity, or inactive duty or active duty military service for training,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>does not work because of a disability that is compensable under a workmen’s compensation law or plan of a State or the United States, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><chapeau>had his employment interrupted in order to serve as a full-time representative of a labor organization in such firm or subdivision, shall be treated as a week of employment at wages of $30 or more, but not more than the following number of weeks may be treated as such weeks of employment under this sentence:</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>3 weeks if no weeks described in subparagraph (B) occurred during the 52-week period concerned.</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>7 weeks if all are weeks described in subparagraph (B).</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>7 weeks in the case of weeks described in subparagraphs (B) and (A) or (C), or both, except that not more than 3 of such weeks may be other than weeks described in subparagraph (B).</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>Such worker—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>was entitled to (or would be entitled to if he applied therefor) unemployment insurance for a week within the benefit period (i) in which such total or partial separation took place, or (ii) which began (or would have begun) by reason of the filing of a claim for unemployment insurance by such worker after such total or partial separation;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>has exhausted all rights to any unemployment insurance to which he was entitled (or would be entitled if he applied therefor); and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>does not have an unexpired waiting period applicable to him for any such unemployment insurance.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>Such worker, with respect to such week of unemployment, would not be disqualified for extended compensation payable under the Federal-State Extended Unemployment Compensation <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3304">26 USC 3304 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2658">94 Stat. 2658</ref>.</p></sidenote>Act of 1970 by reason of the work acceptance and job search requirements in section 202(a)(3) of such Act.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>If the Secretary determines with respect to any labor market area that—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>a high level of unemployment exists,</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>suitable employment opportunities are not available, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>there are facilities available for the provision of training <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 885.</p></sidenote>under section 236 in new or related job classifications, the Secretary may, in accordance with such regulations as he shall prescribe, require all adversely affected workers who were totally or <page identifier="/us/stat/95/883">95 STAT. 883</page>partially separated in such area and for whom such training is approved under section 236— <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 885.</p></sidenote></chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>to accept such training, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>to search actively for work outside such area,</content></subparagraph> </paragraph> <continuation class="indent0 firstIndent0 fontsize10">whichever the worker may choose; except that no worker may be required (i) to accept training or undertake a job search under this subsection until after the first 8 weeks of his eligibility for trade readjustment allowances has expired, or (ii) to accept, or to participate in, such training for a period longer than the remaining period to which he is entitled to such allowances. For purposes of this <sidenote><p class="indent0 firstIndent0 fontsize8">“Labor market area.”</p></sidenote>subsection, the term ‘labor market area’ has the same meaning as is given such term in the Introduction to the Directory of Important Labor Areas, 1980 edition, published by the Department of Labor; except that for any portion of any State which is not included within that term in such Introduction, the county or counties in which that portion is located shall be treated as the applicable labor market area.”.</continuation> </subsection> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">amount of trade readjustment allowances</heading><num value="2504"><inline class="smallCaps">Sec</inline>. 2504. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 232 of the Trade Act of 1974 (19 U.S.C. 2292) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by amending subsection (a) to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><chapeau>Subject to subsections (b) and (c), the trade readjustment allowance payable to an adversely affected worker for a week of total unemployment shall be an amount equal to the most recent weekly benefit amount of the unemployment insurance payable to the worker for a week of total unemployment preceding the worker’s first exhaustion of unemployment insurance (as determined for purposes of section 231(a)(3)(B)) reduced (but not below zero) by— <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 881.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>any training allowance deductible under subsection (c); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>income that is deductible from unemployment insurance under the disqualifying income provisions of the applicable State law or Federal unemployment insurance law.”;</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out subsections (c), (e) and (f);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by redesignating subsection (d) as subsection (c); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><chapeau>by amending subsection (c) (as redesignated by paragraph (3))—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>unemployment insurance, or</quotedText>” and “<quotedText>subsection (c) or (e) or to</quotedText>” in the first sentence thereof, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>the unemployment insurance, or</quotedText>” in the second sentence thereof.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Any reference in any law to subsection (d) of section 232 of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2292">19 USC 2292 note</ref>.</p></sidenote>Trade Act of 1974 shall be considered a reference to subsection (c) thereof.</content> </subsection> </section> <section> <heading class="centered smallCaps">time limitations on trade readjustment allowances</heading><num value="2505"><inline class="smallCaps">Sec</inline>. 2505. </num><subsection class="inline"><num value="a">(a) </num><content>Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is amended to read as follows: <quotedContent> <section><num value="233">“SEC. 233. </num> <heading>LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><paragraph class="inline"><num value="1">(1) </num><content>The maximum amount of trade readjustment allowances payable with respect to the period covered by any certification to an adversely affected worker shall be the amount which is the product of 52 multiplied by the trade readjustment allowance payable to the worker for a week of total unemployment (as determined under <page identifier="/us/stat/95/884">95 STAT. 884</page><sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 883.</p></sidenote>section 232(a)), but such product shall be reduced by the total sum of the unemployment insurance to which the worker was entitled (or would have been entitled if he had applied therefor) in the worker’s <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 881.</p></sidenote>first benefit period described in section 231(a)(3)(A).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>A trade readjustment allowance shall not be paid for any week after the 52-week period beginning with the first week following the first week in the period covered by the certification with respect to which the worker has exhausted (as determined for purposes of section 231(a)(3)(B)) all rights to that part of his unemployment insurance that is regular compensation.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Notwithstanding paragraph (1), in accordance with regulations prescribed by the Secretary, payments may be made as trade readjustment allowances for up to 26 additional weeks in the 26-week period following the last week of entitlement to trade readjustment allowances otherwise payable under this chapter in order to assist the adversely affected worker to complete training approved for the <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 885.</p></sidenote>worker under section 236. Payments for such additional weeks may be made only for weeks in such 26-week period during which the individual is engaged in such training and has not been determined under section 236(c) to be failing to make satisfactory progress in the training.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>A trade readjustment allowance may not be paid for an additional week specified in subsection (a)(3) if the adversely affected worker who would receive such allowance did not make a bona fide application to a training program approved by the Secretary under section 236 within 210 days after the date of the worker’s first certification of eligibility to apply for adjustment assistance issued by the Secretary, or, if later, within 210 days after the date of the worker’s total or partial separation referred to in section 231(a)(1).</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Amounts payable to an adversely affected worker under this part shall be subject to such adjustment on a week-to-week basis as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2292">19 USC 2292</ref>.</p></sidenote>may be required by section 232(b).</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>Notwithstanding any other provision of this Act or other Federal law, if the benefit year of a worker ends within an extended benefit period, the number of weeks of extended benefits that such worker would, but for this subsection, be entitled to in that extended benefit period shall be reduced (but not below zero) by the number of weeks for which the worker was entitled, during such benefit year, to trade readjustment allowances under this part. For purposes of this paragraph, the terms ‘benefit year’ and ‘extended benefit period’ shall have the same respective meanings given to them in the Federal-State Extended Unemployment Compensation Act of 1970.”.</content> </subsection> </section> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 204(a)(2) of the Federal-State Extended Unemployment <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/2656">94 Stat. 2656</ref>.</p></sidenote>Compensation Act of 1970 (26 U.S.C. 3304 note) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>or</quotedText>” at the end of clause (A); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting before the period at the end thereof the following: “<quotedText>, or (C) paid for any week with respect to which such benefits are not payable by reason of section 233(d) of the Trade Act of 1974</quotedText>”.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">training and other employment services</heading><num value="2506"><inline class="smallCaps">Sec</inline>. 2506. </num><chapeau>Subchapter B of chapter 2 of title II of the Trade Act of 1974 is further amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by amending the center heading for part II of such subchapter to read as follows: <page identifier="/us/stat/95/885">95 STAT. 885</page> <quotedContent> <part><num value="II">“<inline class="smallCaps">Part II</inline>—</num><heading><inline class="smallCaps">Training, Other Employment Services, and Allowances</inline>”;</heading> </part> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by amending subsections (a) and (b) of section 236 to read as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2296">19 USC 2296</ref>.</p></sidenote>follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>If the Secretary determines that—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>there is no suitable employment (which may include technical and professional employment) available for a worker,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the worker would benefit from appropriate training,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>there is a reasonable expectation of employment following completion of such training,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>training approved by the Secretary is available to the worker from either governmental agencies or private sources (which may include area vocational education schools, as defined in section 195(2) of the Vocational Education Act of 1963, and <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s2461">20 USC 2461</ref>.</p></sidenote>employers), and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>the worker is qualified to undertake and complete such training,</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">the Secretary may approve such training for the worker. Upon such approval, the worker shall be entitled to have payment of the costs of such training paid on his behalf by the Secretary. Insofar as possible, the Secretary shall provide or assure the provision of such training on the job, which shall include related education necessary for the acquisition of skills needed for a position within a particular occupation.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>A worker may not be determined to be ineligible or disqualified for unemployment insurance or program benefits under this subchapter because the individual is in training approved under paragraph (1), because of leaving work which is not suitable employment to enter such training, or because of the application to any such week in training of provisions of State law or Federal unemployment insurance law relating to availability for work, active search for work, or refusal to accept work. The Secretary shall submit to the <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote>Congress a quarterly report regarding the amount of funds expended during the quarter concerned to provide training under paragraph (1) and the anticipated demand for such funds for any remaining quarters in the fiscal year concerned.</content></paragraph> <subparagraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>For purposes of this subsection the term ‘suitable employment’ <sidenote><p class="indent0 firstIndent0 fontsize8">“Suitable employment.”</p></sidenote>means, with respect to a worker, work of a substantially equal or higher skill level than the worker’s past adversely affected employment, and wages for such work at not less than 80 percent of the worker’s average weekly wage.</content></subparagraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>The Secretary may, where appropriate, authorize supplemental assistance necessary to defray reasonable transportation and subsistence expenses for separate maintenance when training is provided in facilities which are not within commuting distance of a worker’s regular place of residence. The Secretary may not authorize—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>payments for subsistence that exceed whichever is the lesser of (A) the actual per diem expenses for subsistence, or (B) payments at 50 percent of the prevailing per diem allowance rate authorized under the Federal travel regulations, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>payments for travel expenses exceeding the prevailing mileage rate authorized under the Federal travel regulations.”; and</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out the following: <page identifier="/us/stat/95/886">95 STAT. 886</page> <quotedContent> <part><num value="III">“<inline class="smallCaps">Part III</inline>—</num><heading><inline class="smallCaps">Job Search and Relocation Allowances</inline>”.</heading> </part> </quotedContent> </content></paragraph> </section> <section> <heading class="centered smallCaps">increased job search allowances</heading><num value="2507"><inline class="smallCaps">Sec</inline>. 2507. </num><chapeau>Section 237 of the Trade Act of 1974 (19 U.S.C. 2297) is amended as follows:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>Subsection (a) thereof is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><chapeau>Any adversely affected worker covered by a certification under <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2271">19 USC 2271</ref>.</p></sidenote>subchapter A of this chapter may file an application with the Secretary for a job search allowance. Such allowance, if granted, shall provide reimbursement to the worker of 90 percent of the cost of necessary job search expenses as prescribed by regulations of the Secretary; except that—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>such reimbursement may not exceed $600 for any worker, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>reimbursement may not be made for subsistence and transportation expenses at levels exceeding those allowable <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 885.</p></sidenote>under section 236(b)(1) and (2).”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(2) </num><chapeau>Subsection (b) thereof is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by amending paragraph (1) to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>to assist an adversely affected worker who has been totally separated in securing a job within the United States;”; and</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by amending paragraph (3) to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><chapeau>where the worker has filed an application for such allowance with the Secretary before—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><chapeau>the later of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the 365th day after the date of the certification under which the worker is eligible, or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>the 365th day after the date of the worker’s last total separation; or</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the 182d day after the concluding date of any training received by the worker, if the worker was referred to such training by the Secretary.”.</content></subparagraph> </paragraph> </quotedContent> </content></subparagraph> </paragraph> </section> <section> <heading class="centered smallCaps">increased relocation allowances</heading><num value="2508"><inline class="smallCaps">Sec</inline>. 2508. </num><chapeau>Section 238 of the Trade Act of 1974 (19 U.S.C. 2298) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>by amending subsection (a)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>who has been totally separated</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out the period and inserting in lieu thereof the following: “, if such worker files such application before— <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><chapeau>the later of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the 425th day after the date of the certification, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the 425th day after the date of the worker’s last total separation; or</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>the 182d day after the concluding date of any training received by such worker, if the worker was referred to such training by the Secretary.”;</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by amending subsection (b) by striking out the period at the end of paragraph (2) and inserting in lieu thereof “<quotedText>, and</quotedText>”, and by adding at the end thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>is totally separated from employment at the time relocation commences.”;</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by amending subsection (c) to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>A relocation allowance shall not be granted to such worker unless his relocation occurs within 182 days after the filing of the <page identifier="/us/stat/95/887">95 STAT. 887</page>application therefor or (in the case of a worker who has been referred to training by the Secretary) within 182 days after the conclusion of such training.”; and</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><chapeau>by amending subsection (d)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by amending paragraph (1) to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>90 percent of the reasonable and necessary expenses (including, but not limited to, subsistence and transportation expenses at levels not exceeding those allowable under section 236(b) (1) and (2)) specified in regulations prescribed by the <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 885.</p></sidenote>Secretary, incurred in transporting a worker and his family, if any, and household effects, and”, and</content></paragraph> </quotedContent> </content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>$500</quotedText>” in paragraph (2) and inserting in lieu thereof “<quotedText>$600</quotedText>”.</content></subparagraph> </paragraph> </section> <section> <heading class="centered smallCaps">fraud and recovery of overpayments</heading><num value="2509"><inline class="smallCaps">Sec</inline>. 2509. </num><content>Section 243 of the Trade Act of 1974 (19 U.S.C. 2315) is amended to read as follows: <quotedContent> <section><num value="243">“SEC. 243. </num> <heading>FRAUD AND RECOVERY OF OVERPAYMENTS.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>If a cooperating State agency, the Secretary, or a court of competent jurisdiction determines that any person has received any payment under this chapter to which the person was not entitled, including a payment referred to in subsection (b), such person shall be liable to repay such amount to the State agency or the Secretary, as the case may be, except that the State agency or the Secretary may waive such repayment if such agency or the Secretary determines, in accordance with guidelines prescribed by the Secretary, that—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the payment was made without fault on the part of such individual, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>requiring such repayment would be contrary to equity and good conscience.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Unless an overpayment is otherwise recovered, or waived under paragraph (1), the State agency or the Secretary shall recover the overpayment by deductions from any sums payable to such person under this chapter, under any Federal unemployment compensation law administered by the State agency or the Secretary, or under any other Federal law administered by the State agency or the Secretary which provides for the payment of assistance or an allowance with respect to unemployment, and, notwithstanding any other provision of State law or Federal law to the contrary, the Secretary may require the State agency to recover any overpayment under this chapter by deduction from any unemployment insurance payable to such person under the State law, except that no single deduction under this paragraph shall exceed 50 percent of the amount otherwise payable.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>If a cooperating State agency, the Secretary, or a court of competent jurisdiction determines that an individual—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>knowingly has made, or caused another to make, a false statement or representation of a material fact, or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>knowingly has failed, or caused another to fail, to disclose a material fact,</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">and as a result of such false statement or representation, or of such nondisclosure, such individual has received any payment under this chapter to which the individual was not entitled, such individual shall, in addition to any other penalty provided by law, be ineligible for any further payments under this chapter.</continuation> </subsection> <page identifier="/us/stat/95/888">95 STAT. 888</page> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Except for overpayments determined by a court of competent jurisdiction, no repayment may be required, and no deduction may be made, under this section until a determination under subsection (a)(1) by the State agency or the Secretary, as the case may be, has been made, notice of the determination and an opportunity for a fair hearing thereon has been given to the individual concerned, and the determination has become final.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>Any amount recovered under this section shall be returned to the Treasury of the United States.”.</content> </subsection> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">authorization of appropriations</heading><num value="2510"><inline class="smallCaps">Sec</inline>. 2510. </num><content>Section 245 of the Trade Act of 1974 (19 U.S.C. 2317) is amended to read as follows: <quotedContent> <section><num value="245">“SEC. 245. </num> <heading>AUTHORIZATION OF APPROPRIATIONS.</heading> <content>“There are authorized to be appropriated to the Department of Labor, for each of fiscal years 1982 and 1983, such sums as may be necessary to carry out the purposes of this chapter.”.</content> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">definitions</heading><num value="2511"><inline class="smallCaps">Sec</inline>. 2511. </num><chapeau>Section 247 of the Trade Act of 1974 (19 U.S.C. 2319) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by repealing paragraphs (3) and (7);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by amending paragraph (12) to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="12">“(12) </num><content>The term ‘unemployment insurance’ means the unemployment compensation payable to an individual under any State law or Federal unemployment compensation law, including <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s8501">5 USC 8501 <i>et seq</i></ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t45/s367">45 USC 367</ref>.</p></sidenote>chapter 85 of title 5, United States Code, and the Railroad Unemployment Insurance Act. The terms ‘regular compensation’, ‘additional compensation’, and ‘extended compensation’ have the same respective meanings that are given them in section 205 (2), (3), and (4) of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).”;</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by amending paragraph (14) to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="14">“(14) </num><content>The term ‘week of unemployment’ means a week of total, part-total, or partial unemployment as determined under the applicable State law or Federal unemployment insurance law.”; and</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by adding at the end thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="15">“(15) </num><chapeau>The term ‘benefit period’ means, with respect to an individual—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the benefit year and any ensuing period, as determined under applicable State law, during which the individual is eligible for regular compensation, additional compensation, or extended compensation, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the equivalent to such a benefit year or ensuing period provided for under the applicable Federal unemployment insurance law.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </section> <section> <heading class="centered smallCaps">extension of adjustment assistance</heading><num value="2512"><inline class="smallCaps">Sec</inline>. 2512. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1746">94 Stat. 1746</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2271">19 USC note prec. 2271</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2271/2341">19 USC 2271, 2341</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2371">19 USC 2371</ref>.</p></sidenote> <content class="inline">Section 285 of the Trade Act of 1974 (19 U.S.C. 2395) is amended by striking out “<quotedText>shall terminate on September 30, 1982.</quotedText>” and inserting in lieu thereof “<quotedText>chapters 2 and 3 shall terminate on September 30, 1983. Chapter 4 shall terminate on September 30, 1982.</quotedText>”.</content> </section> <page identifier="/us/stat/95/889">95 STAT. 889</page> <section> <heading class="centered smallCaps">conforming amendments</heading><num value="2513"><inline class="smallCaps">Sec</inline>. 2513. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Subsection (c) of section 224 of the Trade Act of 1974 (19 U.S.C. 2274(c)) is repealed.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The section heading for such section 224 is amended by striking out “<quotedText>; <inline class="smallCaps">action where there is affirmative finding</inline></quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 241 of such Act of 1974 (19 U.S.C. 2313) is amended by striking out the last sentence in subsection (a), and by striking out “<quotedText>and credited to Adjustment Assistance Trust Fund</quotedText>” in subsection (b).</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 246 of such Act of 1974 (19 U.S.C. 2318) is repealed. <sidenote><p class="indent0 firstIndent0 fontsize8">Repeal.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><chapeau>The table of contents to such Act of 1974 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>; action where there is affirmative finding</quotedText>” in the reference to section 224;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting after the reference to section 224 the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 225.</designator> <label>Benefit information to workers.”;</label></referenceItem> </toc> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out “<quotedText>Time limitations</quotedText>” in the reference to section 233 and inserting in lieu thereof “<quotedText>Limitations</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by amending the center heading to part II of subchapter B of title II to read as follows: <quotedContent> <part><num value="II">“<inline class="smallCaps">Part II</inline>—</num><heading><inline class="smallCaps">Training, Other Employment Services and Allowances</inline>”;</heading> </part> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>by repealing the following: <quotedContent> <part><num value="III">“<inline class="smallCaps">Part III</inline>—</num><heading><inline class="smallCaps">Job Search and Relocation Allowances</inline>”;</heading> </part> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>by amending section 239 by striking out “<quotedText>who apply for <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2311">19 USC 2311</ref>.</p></sidenote>payments under this chapter</quotedText>” in subsection (a);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>by striking out “<quotedText>Recovery</quotedText>” in the reference to section 243 and inserting in lieu thereof “<quotedText>Fraud and recovery</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num> <content class="inline"> <p class="inline">by amending the reference to section 245 to read as follows:</p> <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 245.</designator> <label>Authorization of appropriations.”;</label></referenceItem> </toc> </quotedContent> <p class="indent0 firstIndent0 fontsize10">and</p> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">(9) </num><content>by striking out the reference to section 246.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">effective dates and transitional provisions</heading><num value="2514"><inline class="smallCaps">Sec</inline>. 2514. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Except as provided in paragraph (2), this subtitle shall take effect on the date of the enactment of this Act.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>The amendments made by section 2501 shall apply with <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2291">19 USC 2291 note</ref>.</p></sidenote>respect to all petitions for certification filed under section 221 of the Trade Act of 1974 on or after the 180th day after the date of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2271">19 USC 2271</ref>.</p></sidenote>enactment of this Act.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>The amendments made by sections 2503, 2504, 2505, and 2511 shall apply with respect to trade readjustment allowances payable for weeks of unemployment which begin after September 30, 1981.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>The amendments made by sections 2506, 2507, and 2508 shall take effect with respect to determinations regarding training and applications for allowances under sections 236, 237, and 238 of the Trade Act of 1974 that are made or filed after September 30, 1981.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><clause class="inline"><num value="i">(i) </num><content>Except as otherwise provided in clause (ii), the provisions of sections 233(d) and 236(a)(2) of the Trade Act of 1974 (as amended by <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, pp. 883, 885.</p><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 884.</p></sidenote>this Act), and the provisions of section 204(a)(2)(C) of the Federal-State Extended Unemployment Compensation Act of 1970 (as added by this Act) shall apply to State unemployment compensation laws for purposes of certifications under section 3304(c) of the Internal Revenue Code of 1954 on October 31, of any taxable year after 1981. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s3304">26 USC 3304</ref>.</p></sidenote></content> </clause> <page identifier="/us/stat/95/890">95 STAT. 890</page> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><chapeau>In the case of any State the legislature of which—</chapeau> <subclause class="firstIndent1 fontsize10"><num value="I">(I) </num><content>does not meet in a session which begins after the date of the enactment of this Act and prior to September 1, 1982, and</content> </subclause> <subclause class="firstIndent1 fontsize10"><num value="II">(II) </num><content>if in session on the date of the enactment of this Act, does not remain in session for a period of at least 25 calendar days,</content> </subclause> </clause> <continuation class="indent0 firstIndent0 fontsize10">the date “1981” in clause (1) shall be deemed to be “1982”.</continuation> </subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2291">19 USC 2291 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2271">19 USC 2271</ref>.</p></sidenote> <chapeau class="inline">An adversely affected worker who is receiving or is entitled to receive payments of trade readjustment allowances under chapter 2 of the Trade Act of 1974 for weeks of unemployment beginning before October 1, 1981, shall be entitled to receive—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>with respect to weeks of unemployment beginning before October 1, 1981, payments of trade readjustment allowances determined under such chapter 2 without regard to the amendments made by this subtitle; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>with respect to weeks of unemployment beginning after September 30, 1981, payments of trade readjustment allowances as determined under such chapter 2 as amended by this subtitle, except that the maximum amount of trade readjustment allowances payable to such an individual for such weeks of unemployment shall be an amount equal to the product of the trade readjustment allowance payable to the individual for a <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 883.</p></sidenote>week of total unemployment (as determined under section 232(a) as so amended) multiplied by a factor determined by subtracting from fifty-two the sum of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the number of weeks preceding the first week which begins after September 30, 1981, and which are within the period covered by the same certification under such chapter 2 as such week of unemployment, for which the individual was entitled to a trade readjustment allowance or unemployment insurance, or would have been entitled to such allowance or unemployment insurance if he had applied therefor, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>the number of weeks preceding such first week that are <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2292">19 USC 2292</ref>.</p></sidenote>deductible under section 232(d) (as in effect before the amendments made by section 2504);</content></subparagraph> </paragraph> <continuation class="indent0 firstIndent0 fontsize10">except that the amount of trade readjustment allowances payable to an adversely affected worker under this paragraph shall be subject to adjustment on a week-to-week basis as may be required by section 232(b).</continuation> </subsection> </section> </subtitle> <subtitle><num value="B">Subtitle B—</num><heading>Adjustment Assistance for Firms</heading> <section> <heading class="centered smallCaps">technical assistance</heading><num value="2521"><inline class="smallCaps">Sec</inline>. 2521. </num><content>Section 253 of the Trade Act of 1974 (19 U.S.C. 2343) is amended to read as follows: <quotedContent> <section><num value="253">“SEC. 253. </num> <heading>TECHNICAL ASSISTANCE.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><chapeau>The Secretary may provide a firm, on terms and conditions as the Secretary determines to be appropriate, with such technical assistance as in his judgment will carry out the purposes of this chapter with respect to the firm. The technical assistance furnished under this chapter may consist of one or more of the following:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>Assistance to a firm in preparing its petition for certification <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2341">19 USC 2341</ref>.</p></sidenote>of eligibility under section 251 of this chapter.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>Assistance to a certified firm in developing a proposal for its economic adjustment.</content></paragraph> <page identifier="/us/stat/95/891">95 STAT. 891</page> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Assistance to a certified firm in the implementation of such a proposal.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall furnish technical assistance under this chapter through existing agencies and through private individuals, firms, or institutions (including private consulting services), or by grants to intermediary organizations (including Trade Adjustment Assistance Centers).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>In the case of assistance furnished through private individuals, firms, or institutions (including private consulting services), the Secretary may share the cost thereof (but not more than 75 percent of such cost may be borne by the United States).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The Secretary may make grants to intermediary organizations in order to defray up to 100 percent of administrative expenses incurred in providing such technical assistance to a firm.”.</content></paragraph> </subsection> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">limitation on provision of direct loans</heading><num value="2522"><inline class="smallCaps">Sec</inline>. 2522. </num><content>Section 254(c) of the Trade Act of 1974 (19 U.S.C. 2344(c)) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>No direct loan may be provided to a firm under this chapter if the firm can obtain loan funds from private sources (with or without a guarantee) at a rate no higher than the maximum interest per annum that a participating financial institution may establish on guaranteed loans made pursuant to section 7(a) of the Small Business Act.”. <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 767.</p></sidenote></content> </subsection> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">conditions for financial assistance</heading><num value="2523"><inline class="smallCaps">Sec</inline>. 2523. </num><chapeau>Section 255 of the Trade Act of 1974 (19 U.S.C. 2345) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by amending subsection (b) to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>The rate of interest on direct loans made under this chapter shall be—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>a rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods of maturity that are comparable to the average maturities of such loans, adjusted to the nearest one-eighth of 1 percent, plus</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>an amount adequate in the judgment of the Secretary of Commerce to cover administrative costs and probable losses under the program.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>The Secretary may not guarantee any loan under this chapter if—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>the rate of interest on either the portion to be guaranteed, or the portion not to be guaranteed, is determined by the Secretary to be excessive when compared with other loans bearing Federal guarantees and subject to similar terms and conditions, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>the interest on the loan is exempt from Federal income taxation under section 103 of the Internal Revenue Code of 1954.”; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t26/s103">26 USC 103</ref>.</p></sidenote></content></subparagraph> </paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>by amending subsection (c)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by amending the first sentence to read as follows: “<quotedText>The Secretary shall make no loan or guarantee of a loan under section 254(b)(1) having a maturity in excess of 25 years or the useful life of the fixed assets (whichever period is shorter), including renewals and extensions; and shall make no loan or guarantee of a loan under section 254(b)(2) having <page identifier="/us/stat/95/892">95 STAT. 892</page>a maturity in excess of 10 years, including extensions and renewals.</quotedText>”,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by amending the second sentence by striking out “<quotedText>limitation</quotedText>” and inserting in lieu thereof “<quotedText>limitations</quotedText>”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by amending paragraph (2) by inserting “<quotedText>or servicing</quotedText>” immediately after “<quotedText>liquidation</quotedText>”;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>by amending subsection (d)—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by inserting “<quotedText>(1)</quotedText>” immediately after “<quotedText>(d)</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by adding at the end thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>For any direct loan made, or any loan guaranteed, under the authority of this chapter, the Secretary may enter into arrangements for the servicing, including foreclosure, of such loans or evidences of indebtedness on terms which are reasonable and which protect the financial interests of the United States.”; and</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by amending subsection (e) to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><chapeau>The following conditions apply with respect to any loan guaranteed under this chapter:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>No guarantee may be made for an amount which exceeds 90 percent of the outstanding balance of the unpaid principal and interest on the loan.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The loan may be evidenced by multiple obligations for the guaranteed and nonguaranteed portions of the loan.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The guarantee agreement shall be conclusive evidence of the eligibility of any obligation guaranteed thereunder for such guarantee, and the validity of any guarantee agreement shall be incontestable, except for fraud or misrepresentation by the holder.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> </section> <section> <heading class="centered smallCaps">authorization of appropriations</heading><num value="2524"><inline class="smallCaps">Sec</inline>. 2524. </num><chapeau>Section 256(b) of the Trade Act of 1974 (19 U.S.C. 2346(b)) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>firms,</quotedText>” and inserting in lieu thereof “<quotedText>firms (including, but not limited to, the payment of principal, interest, and reasonable costs incident to default on loans guaranteed by the Secretary under the authority of this chapter),</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding at the end thereof the following new sentence: “Direct loans and commitments to guarantee loans may be made under this chapter during any fiscal year only to such extent and in such amounts as are provided in advance in appropriation Acts.”.</content></paragraph> </section> <section> <heading class="centered smallCaps">administration of financial assistance</heading><num value="2525"><inline class="smallCaps">Sec</inline>. 2525. </num><content>Section 257 of the Trade Act of 1974 (19 U.S.C. 2347) is amended by adding at the end thereof the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>To the extent the Secretary deems it appropriate, and consistent with the provisions of section 552(b)(4) and section 552b(c)(4) of title 5, United States Code, that portion of any record, material or data received by the Secretary in connection with any application for financial assistance under this chapter which contains trade secrets or commercial or financial information regarding the operation or competitive position of any business shall be deemed to be privileged or confidential within the meaning of those provisions.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><content>Direct loans made, or loans guaranteed, under this chapter for the acquisition or development of real property or other capital assets shall ordinarily be secured by a first lien on the assets to be financed and shall be fully amortized. To the extent that the Secretary finds that exceptions to these standards are necessary to achieve the <page identifier="/us/stat/95/893">95 STAT. 893</page>objectives of this chapter, he shall develop appropriate criteria for the protection of the interests of the United States.”.</content> </subsection> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">repeal of transitional provisions</heading><num value="2526"><inline class="smallCaps">Sec</inline>. 2526. </num><content>Section 263 of the Trade Act of 1974 (19 U.S.C. 2353) is repealed.</content> </section> <section> <heading class="centered smallCaps">assistance to industries</heading><num value="2527"><inline class="smallCaps">Sec</inline>. 2527. </num><content>Chapter 3 of title II of the Trade Act of 1974 is amended <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2355">19 USC 2355</ref>.</p></sidenote>by adding at the end thereof the following: <quotedContent> <section><num value="265">“SEC. 265. </num> <heading>ASSISTANCE TO INDUSTRIES.</heading> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><content>The Secretary may provide technical assistance, on such terms and conditions as the Secretary deems appropriate, for the establishment of industrywide programs for new product development, new process development, export development, or other uses consistent with the purposes of this chapter. Such technical assistance may be provided through existing agencies, private individuals, firms, universities and institutions, and by grants, contracts, or cooperative agreements to associations, unions, or other nonprofit industry organizations in which a substantial number of firms have been certified as eligible to apply for adjustment assistance under section 251. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2341">19 USC 2341</ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>Expenditures for technical assistance under this section may be up to $2,000,000 annually per industry and shall be made under such terms and conditions as the Secretary deems appropriate.”.</content> </subsection> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">conforming amendments</heading><num value="2528"><inline class="smallCaps">Sec</inline>. 2528. </num><chapeau>The table of contents of the Trade Act of 1974 is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out the reference to section 263; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting after the reference to section 264 the following: <quotedContent> <toc> <referenceItem role="section"><designator>“Sec. 265.</designator> <label>Assistance to industries.”.</label></referenceItem> </toc> </quotedContent> </content></paragraph> </section> <section> <heading class="centered smallCaps">effective date</heading><num value="2529"><inline class="smallCaps">Sec</inline>. 2529. </num><subsection class="inline"><num value="a">(a) </num><content>subject to subsection (b), the amendments made by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t19/s2343">19 usc 2343 note</ref>.</p></sidenote>this subtitle shall take effect on the date of the enactment of this act.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>applications for adjustment assistance under chapter 3 of title ii of the trade act of 1974 which the secretary of commerce accepted for processing before the date of the enactment of this act shall continue to be processed in accordance with the requirements of such chapter as in effect before such date of enactment.</content> </subsection> </section> </subtitle> <num value="XXVI">TITLE XXVI—</num><heading>LOW-INCOME HOME <sidenote><p class="indent0 firstIndent0 fontsize8">Low-Income Home Energy Assistance Act of 1981.</p></sidenote>ENERGY ASSISTANCE</heading> <section> <heading class="centered smallCaps">short title</heading><num value="2601"><inline class="smallCaps">Sec</inline>. 2601. </num><content>This title may be cited as the “<shortTitle role="title">Low-Income Home Energy <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8621">42 USC 8621 note</ref>.</p></sidenote>Assistance Act of 1981</shortTitle>”.</content> </section> <section> <heading class="centered smallCaps">home energy grants authorized</heading><num value="2602"><inline class="smallCaps">Sec</inline>. 2602. </num><subsection class="inline"><num value="a">(a) </num><content>The Secretary of Health and Human Services is <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8621">42 USC 8621</ref>.</p></sidenote>authorized to make grants, in accordance with the provisions of this <page identifier="/us/stat/95/894">95 STAT. 894</page>title, to States to assist eligible households to meet the costs of home energy.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote> <content class="inline">There is authorized to be appropriated to carry out the purposes of this title $1,875,000,000 for each of the fiscal years 1982, 1983, and 1984.</content> </subsection> </section> <section> <heading class="centered smallCaps">definitions</heading><num value="2603"><inline class="smallCaps">Sec</inline>. 2603. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8622">42 USC 8622</ref>.</p></sidenote> <chapeau class="inline">As used in this title:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>The term “energy crisis intervention” means weather-related and supply shortage emergencies.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>The term “household” means all individuals who occupy a housing unit.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>For purposes of subparagraph (A), 1 or more rooms shall be treated as a housing unit when occupied as a separate living quarters.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The term “home energy” means a source of heating or cooling in residential dwellings.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>The term “poverty level” means, with respect to a household in any State, the income poverty guidelines for the nonfarm population of the United States as prescribed by the Office of Management and Budget (and as adjusted annually pursuant to <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 511.</p></sidenote>section 673(2) of this Act) as applicable to such State.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>The term “Secretary” means the Secretary of Health and Human Services.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>The term “State” means each of the several States and the District of Columbia.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>The term “State median income” means the State median income promulgated by the Secretary in accordance with procedures established under section 2002(a)(6) of the Social Security Act (as such procedures were in effect on the day before the date of the enactment of this Act) and adjusted, in accordance with regulations prescribed by the Secretary, to take into account the number of individuals in the household.</content></paragraph> </section> <section> <heading class="centered smallCaps">state allotments</heading><num value="2604"><inline class="smallCaps">Sec</inline>. 2604. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><subparagraph class="inline"><num value="A">(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8623">42 USC 8623</ref>.</p></sidenote> <content class="inline">Except as provided in subparagraph (B), the Secretary shall, from that percentage of the amount appropriated under section 2602(b) for each fiscal year which is remaining after the amount of allotments for such fiscal year under subsection (b)(1) is determined by the Secretary, allot to each State an amount equal to such remaining percentage multiplied by the State’s allotment percentage.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>From the sums appropriated therefor, if for any period a State has a plan which is described in section 2605(c)(1), the Secretary shall pay to such State an amount equal to 100 percent of the expenditures of such State made during such period in carrying out such plan, including administrative costs (subject to the provisions of section 2605(b)(9)(B)), with respect to households described in section 2605(b)(2).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Allotment percentage.</p></sidenote> <content class="inline">For purposes of paragraph (1), a State’s allotment percentage is the percentage which the amount the State was eligible to receive for fiscal year 1981 under the allotment formulas of the Home Energy <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Post</i>, p. 902.</p></sidenote>Assistance Act of 1980 bears to the total amount available for allotment under such formulas.</content></subparagraph> <paragraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>For purposes of subparagraph (A), the allotment formulas of the Home Energy Assistance Act of 1980 shall be treated as including the rules provided by, and the rules referred to in, section 101(j) of the <page identifier="/us/stat/95/895">95 STAT. 895</page>joint resolution entitled “Joint resolution making further continuing appropriations for the fiscal year 1981, and for other purposes”, approved December 16, 1980 (Public Law 96–536; 94 Stat. 3168), except that such allotment formulas shall not include the reallotment procedures established in section 260.108 of title 45, Code of Federal Regulations (relating to reallotment of funds under the low-income energy assistance program).</content></paragraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>If the sums appropriated for any fiscal year for making grants under this title are not sufficient to pay in full the total amount allocated to a State under paragraph (1) for such fiscal year, the amount which all States will receive under this title for such fiscal year shall be ratably reduced.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall apportion not less than one-tenth of 1 <sidenote><p class="indent0 firstIndent0 fontsize8">Apportionment percentages.</p></sidenote>percent, and not more than one-half of 1 percent, of the amounts appropriated for each fiscal year to carry out this title on the basis of need among the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. The Secretary shall determine the total amount to be apportioned under this paragraph for any fiscal year (which shall not exceed one-half of 1 percent) after evaluating the extent to which each jurisdiction specified in the preceding sentence requires assistance under this paragraph for the fiscal year involved.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Each jurisdiction to which paragraph (1) applies may receive <sidenote><p class="indent0 firstIndent0 fontsize8">Grants.</p></sidenote>grants under this title upon an application submitted to the Secretary containing provisions which describe the programs for which assistance is sought under this title, and which are consistent with the requirements of section 2605.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Of the funds available to each State under subsection (a), a <sidenote><p class="indent0 firstIndent0 fontsize8">Energy crisis intervention, reserved funds.</p></sidenote>reasonable amount based on data from prior years shall be reserved by each State for energy crisis intervention.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>If, with respect to any State, the Secretary—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>receives a request from the governing organization of an Indian tribe within the State that assistance under this title be made directly to such organization; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>determines that the members of such tribe would be better served by means of grants made directly to provide benefits under this title;</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">the Secretary shall reserve from amounts which would otherwise be paid to such State from amounts allotted to it under this title for the fiscal year involved the amount determined under paragraph (2).</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The amount determined under this paragraph for a fiscal year is the amount which bears the same ratio to the amount which would (but for this subsection) be allotted to such State under this title for such fiscal year (other than by reason of section 2607(b)(2)) as the number of Indian households described in subparagraphs (A) and (B) of section 2605(b)(2) in such State with respect to which a determination under this subsection is made bears to the number of all households described in subparagraphs (A) and (B) of section 2605(b)(2) in such State.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>The sums reserved by the Secretary on the basis of a determination under this subsection shall be granted to—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the tribal organization serving the individuals for whom such a determination has been made; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>in any case where there is no tribal organization serving an individual for whom such a determination has been made, such other entity as the Secretary determines has the capacity to provide assistance pursuant to this title.</content></subparagraph> </paragraph> <page identifier="/us/stat/95/896">95 STAT. 896</page> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Plan, submittal to Secretary.</p></sidenote> <content class="inline">In order for a tribal organization or other entity to be eligible for an amount under this subsection for a fiscal year, it shall submit to the Secretary a plan (in lieu of being under the State’s plan) for such fiscal year which meets such criteria as the Secretary may by regulations prescribe.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>At the option of a State, any portion of such State’s allotment under this title may be reserved by the Secretary for the purpose of making direct payments to households described in section 2605(b)(2)(A)(ii) (taking into account the application of section 2605(i)), for low-income energy assistance in accordance with guidelines issued by the Secretary.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Transfer of allotment.</p></sidenote> <chapeau class="inline">A State may transfer up to 10 percent of its allotment under this section for any fiscal year for its use for such fiscal year under other provisions of Federal law providing block grants for—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>support of activities under subtitle B of title VI (relating to community services block grant program);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>support of activities under title XX of the Social Security <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397">42 USC 1397</ref>.</p></sidenote>Act; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>support of preventive health services, alcohol, drug, and mental health services, and primary care under title XIX of the <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 535.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s701">42 USC 701</ref>.</p></sidenote>Public Health Service Act, and maternal and child health services under title V of the Social Security Act;</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">or any combination of the activities described in paragraphs (1), (2), and (3). Amounts allotted to a State under any provisions of Federal law referred to in the preceding sentence and transferred by a State for use in carrying out the purposes of this title shall be treated as if they were paid to the State under this title but shall not affect the computation of the State’s allotment under this title. The State shall inform the Secretary of any such transfer of funds.</continuation> </subsection> </section> <section> <heading class="centered smallCaps">applications and requirements</heading><num value="2605"><inline class="smallCaps">Sec</inline>. 2605. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8624">42 USC 8624</ref>.</p></sidenote> <content class="inline">Each State desiring to receive an allotment for any fiscal year under this title shall submit an application to the Secretary. Each such application shall be in such form as the Secretary shall require. Each such application shall contain assurances by the chief executive officer of the State that the State will meet the conditions enumerated in subsection (b).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Hearings.</p></sidenote> <content class="inline">After the expiration of the first fiscal year for which a State receives funds under this title, no funds shall be allotted to such State for any fiscal year under this title unless such State conducts public hearings with respect to the proposed use and distribution of funds to be provided under this title for such fiscal year.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">State agreements.</p></sidenote> <chapeau class="inline">As part of the annual application required by subsection (a), the chief executive officer of each State shall certify that the State agrees to—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>use the funds available under this title for the purposes described in section 2602(a) and otherwise in accordance with the requirements of this title, and agrees not to use such funds for any payments other than payments specified in this subsection;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>make payments under this title only with respect to—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><chapeau>households in which 1 or more individuals are receiving—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>aid to families with dependent children under the State’s plan approved under part A of title IV of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s601">42 USC 601</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s608">42 USC 608</ref>.</p></sidenote>Social Security Act (other than such aid in the form of foster care in accordance with section 408 of such Act);</content> </clause> <page identifier="/us/stat/95/897">95 STAT. 897</page> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>supplemental security income payments under title XVI of the Social Security Act; <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1381">42 USC 1381</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t7/s2011">7 USC 2011 note</ref>.</p></sidenote></content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">(iii) </num><content>food stamps under the Food Stamp Act of 1977; or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">(iv) </num><content>payments under section 415, 521, 541, or 542 of title 38, United States Code, or under section 306 of the Veterans’ and Survivors’ Pension Improvement Act of 1978; or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t38/s521">38 USC 521 note</ref>.</p></sidenote></content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><chapeau>households with incomes which do not exceed the greater of—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>an amount equal to 150 percent of the poverty level for such State; or</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>an amount equal to 60 percent of the State median income;</content> </clause> </subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>conduct outreach activities designed to assure that eligible households, especially households with elderly individuals or handicapped individuals, or both, are made aware of the assistance available under this title, and any similar energy-related assistance available under subtitle B of title VI (relating to <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 511.</p></sidenote>community services block grant program) or under any other provision of law which carries out programs which were administered under the Economic Opportunity Act of 1964 before the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2701">42 USC 2701 note</ref>.</p></sidenote>date of the enactment of this Act;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>coordinate its activities under this title with similar and related programs administered by the Federal Government and such State, particularly low-income energy-related programs under subtitle B of title VI (relating to community services block grant program), under the supplemental security income program, under part A of title IV of the Social Security Act, under <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s601">42 USC 601</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397">42 USC 1397</ref>.</p></sidenote>title XX of the Social Security Act, under the low-income weatherization assistance program under title IV of the Energy Conservation and Production Act, or under any other provision of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s6851">42 USC 6851</ref>.</p></sidenote>law which carries out programs which were administered under the Economic Opportunity Act of 1964 before the date of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2701">42 USC 2701 note</ref>.</p></sidenote>enactment of this Act;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>provide, in a manner consistent with the efficient and timely payment of benefits, that the highest level of assistance will be furnished to those households which have the lowest incomes and the highest energy costs in relation to income, taking into account family size;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><chapeau>to the extent it is necessary to designate local administrative agencies in order to carry out the purposes of this title, give special consideration, in the designation of such agencies, to any local public or private nonprofit agency which was receiving Federal funds under any low-income energy assistance program or weatherization program under the Economic Opportunity Act of 1964 or any other provision of law on the day before the date of the enactment of this Act, except that—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the State shall, before giving such special consideration, determine that the agency involved meets program and fiscal requirements established by the State; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>if there is no such agency because of any change in the assistance furnished to programs for economically disadvantaged persons, then the State shall give special consideration in the designation of local administrative agencies to any successor agency which is operated in substantially the same manner as the predecessor agency which did receive funds for the fiscal year preceding the fiscal year for which the determination is made;</content></subparagraph> </paragraph> <page identifier="/us/stat/95/898">95 STAT. 898</page> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><chapeau>if the State chooses to pay home energy suppliers directly, establish procedures to—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>notify each participating household of the amount of assistance paid on its behalf;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>assure that the home energy supplier will charge the eligible household, in the normal billing process, the difference between the actual cost of the home energy and the amount of the payment made by the State under this title;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>assure that the home energy supplier will provide assurances that any agreement entered into with a home energy supplier under this paragraph will contain provisions to assure that no household receiving assistance under this title will be treated any differently because of such assistance under applicable provisions of State law or public regulatory requirements; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>assure that any home energy supplier receiving direct payments agrees not to discriminate, either in the cost of the goods supplied or the services provided, against the eligible household on whose behalf payments are made;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>provide assurances that the State will treat owners and renters equitably under the program assisted under this title;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">(9) </num><chapeau>provide that—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>in each fiscal year, the State may use for planning and administering the use of funds available under this title an amount not to exceed 10 percent of its allotment under this title for such fiscal year; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>the State will pay from non-Federal sources the remaining costs of planning and administering the program assisted under this title and will not use Federal funds for such remaining costs;</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">(10) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Audit.</p></sidenote> <content class="inline">provide that such fiscal control and fund accounting procedures will be established as may be necessary to assure the proper disbursal of and accounting for Federal funds paid to the State under this title, including procedures for monitoring the assistance provided under this title, and provide that at least every year the State shall prepare an audit of its expenditures of amounts received under this title and amounts transferred to carry out the purposes of this title;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="11">(11) </num><content>permit and cooperate with Federal investigations undertaken in accordance with section 2608;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="12">(12) </num><content>provide for public participation in the development of the plan described in subsection (c); and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="13">(13) </num><content>provide an opportunity for a fair administrative hearing to individuals whose claims for assistance under the plan described in subsection (c) are denied or are not acted upon with reasonable promptness.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">The Secretary may not prescribe the manner in which the States will comply with the provisions of this subsection.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><content>As part of the annual application required in subsection (a), the chief executive officer of each State shall prepare and furnish to the Secretary a plan which contains provisions describing how the State will carry out the assurances contained in subsection (b). The chief executive officer may revise any plan prepared under this paragraph and shall furnish the revised plan to the Secretary.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Public inspection.</p></sidenote> <content class="inline">Each plan prepared under paragraph (1) shall be made available for public inspection within the State involved in such a manner as will facilitate review of, and comment upon, such plan.</content></paragraph> </subsection> <page identifier="/us/stat/95/899">95 STAT. 899</page> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Whenever the Secretary determines that a waiver of any <sidenote><p class="indent0 firstIndent0 fontsize8">Waiver</p></sidenote>requirement in subsection (b) is necessary to assist in promoting the objectives of this title, the Secretary may waive such requirement to the extent and for the period the Secretary finds necessary to enable the State involved to carry out the program under the plan.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Each audit required by subsection (b)(10) shall be conducted by an entity independent of any agency administering activities or services carried out under this title and shall be conducted in accordance with generally accepted accounting principles. Within 30 days after the completion of each audit, the chief executive officer of the State shall submit a copy of such audit to the legislature of the State and to the Secretary.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>Notwithstanding any other provision of law, the amount of any home energy assistance payments or allowances provided to an eligible household under this title shall not be considered income or resources of such household (or any member thereof) for any purpose under any Federal or State law, including any law relating to taxation, food stamps, public assistance, or welfare programs.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>The State shall repay to the United States amounts found not to <sidenote><p class="indent0 firstIndent0 fontsize8">Repayment to U.S.</p></sidenote>have been expended in accordance with this title or the Secretary may offset such amounts against any other amount to which the State is or may become entitled under this title.</content> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num><content>The Comptroller General of the United States shall, from time <sidenote><p class="indent0 firstIndent0 fontsize8">Grant expenditures, evaluation.</p></sidenote>to time, evaluate the expenditures by States of grants under this title in order to assure that expenditures are consistent with the provisions of this title and to determine the effectiveness of the State in accomplishing the purposes of this title.</content> </subsection> <subsection class="indent0 fontsize10"><num value="i">(i) </num><chapeau>A household which is described in subsection (b)(2)(A) solely by reason of clause (ii) thereof shall not be treated as a household described in subsection (b)(2) if the eligibility of the household is dependent upon—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>an individual whose annual supplemental security income benefit rate is reduced pursuant to section 1611(e)(1) of the Social Security Act by reason of being in an institution receiving <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382">42 USC 1382</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396">42 USC 1396</ref>.</p></sidenote>payments under title XIX of the Social Security Act with respect to such individual;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>an individual to whom the reduction specified in section 1612(a)(2)(A)(i) of the Social Security Act applies; or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382a">42 USC 1382a</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>a child described in section 1614(f)(2) of the Social Security Act who is living together with a parent, or the spouse of a <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1382c">42 USC 1382c</ref>.</p></sidenote>parent, of the child.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="j">(j) </num><content>In verifying income eligibility for purposes of subsection (b)(2)(B), the State may apply procedures and policies consistent with procedures and policies used by the State agency administering programs under part A of title IV of the Social Security Act, under title XX of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s601">42 USC 601</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1397">42 USC 1397</ref>.</p></sidenote>the Social Security Act, under subtitle B of title VI of this Act (relating to community services block grant program), under any other provision of law which carries out programs which were administered under the Economic Opportunity Act of 1964 before the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2701">42 USC 2701 note</ref>.</p></sidenote>date of the enactment of this Act, or under other income assistance or service programs (as determined by the State).</content> </subsection> <subsection class="indent0 fontsize10"><num value="k">(k) </num><chapeau>Not more than 15 percent of the greater of—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>the funds allotted to a State under this title for any fiscal year; or</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>the funds available to such State under this title for such fiscal year;</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10">may be used by the State for low-cost residential weatherization or other energy-related home repair for low-income households.</continuation> </subsection> <page identifier="/us/stat/95/900">95 STAT. 900</page> <subsection class="indent0 fontsize10"><num value="l">(l) </num><paragraph class="inline"><num value="1">(1) </num><content>Any State may use amounts provided under this title for the purpose of providing credits against State tax to energy suppliers who supply home energy at reduced rates to low-income households.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Any such credit provided by a State shall not exceed the amount of the loss of revenue to such supplier on account of such reduced rate.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Any certification for such tax credits shall be made by the State, but such State may use Federal data available to such State with respect to recipients of supplemental security income benefits if timely delivery of benefits to households described in subsection (b) and suppliers will not be impeded by the use of such data.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">nondiscrimination provisions</heading><num value="2606"><inline class="smallCaps">Sec</inline>. 2606. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8625">42 USC 8625</ref>.</p></sidenote> <content class="inline">No person shall on the ground of race, color, national origin, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity funded in whole or in part with funds made available under this title. Any prohibition against discrimination on the basis of age under the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s6101">42 USC 6101 note</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t29/s794">29 USC 794</ref>.</p></sidenote>Age Discrimination Act of 1975 or with respect to an otherwise qualified handicapped individual as provided in section 504 of the Rehabilitation Act of 1973 also shall apply to any such program or activity.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Noncompliance.</p></sidenote> <content class="inline">Whenever the Secretary determines that a State that has received a payment under this title has failed to comply with subsection (a) or an applicable regulation, he shall notify the chief executive officer of the State and shall request him to secure compliance. If within a reasonable period of time, not to exceed 60 days, the chief executive officer fails or refuses to secure compliance, the Secretary is authorized to (1) refer the matter to the Attorney General with a recommendation that an appropriate civil action be instituted; (2) exercise the powers and functions provided by title VI <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s2000d">42 USC 2000d</ref>.</p></sidenote>of the Civil Rights Act of 1964, the Age Discrimination Act of 1975, or section 504 of the Rehabilitation Act of 1973, as may be applicable; or (3) take such other action as may be provided by law.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Civil action.</p></sidenote> <content class="inline">When a matter is referred to the Attorney General pursuant to subsection (b), or whenever he has reason to believe that the State is engaged in a pattern or practice in violation of the provisions of this section, the Attorney General may bring a civil action in any appropriate United States district court for such relief as may be appropriate, including injunctive relief.</content> </subsection> </section> <section> <heading class="centered smallCaps">payments to states</heading><num value="2607"><inline class="smallCaps">Sec</inline>. 2607. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8626">42 USC 8626</ref>.</p></sidenote> <content class="inline">From its allotment under section 2604, the Secretary shall make payments to each State in accordance with section 203 of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s4213">42 USC 4213</ref>.</p></sidenote>the Intergovernmental Cooperation Act of 1968, for use under this title.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Conditions.</p></sidenote> <chapeau class="inline">If—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the Secretary determines that, as of September 1 of any fiscal year, an amount allotted to a State under section 2604 for any fiscal year will not be used by such State during such fiscal year;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><chapeau>the Secretary—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">(i) </num><content>notifies the chief executive officer of such State; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">(ii) </num><content>publishes a timely notice in the Federal Register; <page identifier="/us/stat/95/901">95 STAT. 901</page>that, after the 30-day period beginning on the date of the notice to such chief executive officer, such amount may be reallotted; and</content> </clause> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>the State does not request, under paragraph (2), that such amount be held available for such State for the following fiscal year;</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">then such amount shall be treated by the Secretary for purposes of this title as an amount appropriated for the following fiscal year to be allotted under section 2604 for such following fiscal year.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>Any State may request that an amount allotted to such State for a fiscal year be held available for such State for the following fiscal year. Any amount so held available for the following fiscal year shall not be taken into account in computing the allotment of such State for such fiscal year under this title.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>No amount may be held available under this paragraph for a State from a prior fiscal year to the extent such amount exceeds 25 percent of the amount allotted to such State for such prior fiscal year. For purposes of the preceding sentence, the amount allotted to a State for a fiscal year shall be determined without regard to any amount held available under this paragraph for such State for such fiscal year from the prior fiscal year.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>During the 30-day period described in paragraph (1)(B), comments may be submitted to the Secretary. After considering such <sidenote><p class="indent0 firstIndent0 fontsize8">Publication in Federal Register.</p></sidenote>comments, the Secretary shall notify the chief executive officer of the State of any decision to reallot funds, and shall publish such decision in the Federal Register.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">withholding</heading><num value="2608"><inline class="smallCaps">Sec</inline>. 2608. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall, after adequate notice and an <sidenote><p class="indent0 firstIndent0 fontsize8">Notice and hearing.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8627">42 USC 8627</ref>.</p></sidenote>opportunity for a hearing conducted within the affected State, withhold funds from any State which does not utilize its allotment substantially in accordance with the provisions of this title and the assurances such State provided under section 2605.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The Secretary shall respond in an expeditious and speedy manner to complaints of a substantial or serious nature that a State has failed to use funds in accordance with the provisions of this title or the assurances provided by the State under section 2605. For purposes of this paragraph, a violation of any one of the assurances contained in section 2605(b) that constitutes a disregard of such assurance shall be considered a serious complaint.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall conduct in several States in each fiscal year investigations of the use of funds received by the States under this title in order to evaluate compliance with the provisions of this title.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Whenever the Secretary determines that there is a pattern of complaints from any State in any fiscal year, he shall conduct an investigation of the use of funds received under this title by such State in order to ensure compliance with the provisions of this title.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>The Comptroller General of the United States may conduct an investigation of the use of funds received under this title by a State in order to ensure compliance with the provisions of this title.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Pursuant to an investigation conducted under subsection (b), a <sidenote><p class="indent0 firstIndent0 fontsize8">Records, availability.</p></sidenote>State shall make appropriate books, documents, papers, and records available to the Secretary or the Comptroller General of the United States, or any of their duly authorized representatives, for examination, copying, or mechanical reproduction on or off the premises of the appropriate entity upon a reasonable request therefor.</content> </subsection> <page identifier="/us/stat/95/902">95 STAT. 902</page> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>In conducting any investigation under subsection (b), the Secretary may not request any information not readily available to such State or require that any information be compiled, collected, or transmitted in any new form not already available.</content> </subsection> </section> <section> <heading class="centered smallCaps">limitation on use of grants for construction</heading><num value="2609"><inline class="smallCaps">Sec</inline>. 2609. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8628">42 USC 8628</ref>.</p></sidenote> <content class="inline">Grants made under this title may not be used by the State, or by any other person with which the State makes arrangements to carry out the purposes of this title, for the purchase or improvement of land, or the purchase, construction, or permanent improvement (other than low-cost residential weatherization or other energy-related home repairs) of any building or other facility.</content> </section> <section> <heading class="centered smallCaps">studies</heading><num value="2610"><inline class="smallCaps">Sec</inline>. 2610. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Data.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8629">42 USC 8629</ref>.</p></sidenote> <chapeau class="inline">The Secretary, after consultation with the Secretary of Energy, shall provide for the collection of data, including—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>information concerning home energy consumption;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>the cost and type of fuels used;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>the type of fuel used by various income groups;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>the number and income levels of households assisted by this title; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>any other information which the Secretary determines to be reasonably necessary to carry out the provisions of this title.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote> <content class="inline">The Secretary shall submit an annual report to the Congress containing a summary of data collected under subsection (a).</content> </subsection> </section> <section> <heading class="centered smallCaps">repealer</heading><num value="2611"><inline class="smallCaps">Sec</inline>. 2611. </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s8601">42 USC 8601 note</ref>.</p></sidenote> <content class="inline">Effective October 1, 1981, the Home Energy Assistance Act of 1980 is repealed.</content> </section> <num value="XXVII">TITLE XXVII—</num><heading>NATIONAL HEALTH SERVICE CORPS; HEALTH PROFESSIONS EDUCATION; NURSE TRAINING</heading> <section> <heading class="centered smallCaps">reference</heading><num value="2700"><inline class="smallCaps">Sec</inline>. 2700. </num><content>Except as otherwise specifically provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or a repeal of, a section or other provision, the reference shall be considered to be made to a section or other <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s201">42 USC 201 note</ref>.</p></sidenote>provision of the Public Health Service Act.</content> </section> <chapter><num value="1">CHAPTER 1—</num><heading>NATIONAL HEALTH SERVICE CORPS</heading> <section> <heading class="centered smallCaps">revision and extension of national health service corps</heading><num value="2701"><inline class="smallCaps">Sec</inline>. 2701. </num><subsection class="inline"><num value="a">(a) </num><content>Section 331(a)(1) (42 U.S.C. 254d(a)(1)) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><chapeau>shall consist of—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>such officers of the Regular and Reserve Corps of the Service as the Secretary may designate,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>such civilian employees of the United States as the Secretary may appoint, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>such other individuals who are not employees of the United States, <page identifier="/us/stat/95/903">95 STAT. 903</page>(such officers, employees, and individuals hereinafter in this subpart referred to as ‘Corps members’), and”.</content></subparagraph> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 331(b) is amended by striking out “<quotedText>shall</quotedText>” and inserting <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254d">42 USC 254d</ref>.</p></sidenote>in lieu thereof “<quotedText>may</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The first sentence of section 331(c) is amended by inserting “<quotedText>(including individuals considering entering into a written agreement pursuant to section 338C)</quotedText>” after “<quotedText>positions in the Corps</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 331(d)(1) is amended by inserting after “<quotedText>each member of the Corps</quotedText>” the following: “<quotedText>(other than a member described in subsection (a)(1)(C))</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 331(d)(1)(A) is amended by striking out “<quotedText>shall</quotedText>” and inserting in lieu thereof “<quotedText>may</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Section 331(d)(1)(B) is amended by striking out “<quotedText>shall</quotedText>” and inserting in lieu thereof “<quotedText>may</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Section 331(d) is further amended by adding at the end the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>A member of the Corps described in subparagraph (C) of subsection (a)(1) shall when assigned to an entity under section 333 be subject to the personnel system of such entity, except that such member shall receive during the period of assignment the income that the member would receive if the member was a member of the Corps described in subparagraph (B) of such subsection.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Section 331(g) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall, by rule, prescribe conversion provisions applicable to any individual who, within a year after completion of service as a member of the Corps described in subsection (a)(1)(C), becomes a commissioned officer in the Regular or Reserve Corps of the Service.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The rules prescribed under paragraph (1) shall provide that in applying the appropriate provisions of this Act which relate to retirement, any individual who becomes such an officer shall be entitled to have credit for any period of service as a member of the Corps described in subsection (a)(1)(C).”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 331(h)(1) is amended by striking out “<quotedText>Health, Education, and Welfare</quotedText>” and inserting in lieu thereof “<quotedText>Health and Human Services</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 331(h)(2) is amended by striking out “<quotedText>section 751</quotedText>” and inserting in lieu thereof “<quotedText>section 338A</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Section 331(h)(3) is amended by inserting “<quotedText>Commonwealth of the</quotedText>” before “<quotedText>Northern Mariana Islands</quotedText>”.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">designation of health manpower shortage areas</heading><num value="2702"><inline class="smallCaps">Sec</inline>. 2702. </num><subsection class="inline"><num value="a">(a) </num><content>Section 332(a)(1)(A) (42 U.S.C. 254e(a)(1)) is amended by inserting before the comma at the end thereof “<quotedText>and which is not reasonably accessible to an adequately served area</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 332(h) is amended by striking out “<quotedText>shall</quotedText>” and inserting in lieu thereof “<quotedText>may</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>Effective October 1, 1981, the Secretary of Health and Human <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254e">42 USC 254e note</ref>.</p></sidenote>Services shall—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>evaluate the criteria used under section 332(b) of the Public <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/tCriteri/sevaluation">Criteria, evaluation</ref>.</p></sidenote>Health Service Act to determine if the use of the criteria has resulted in areas which do not have a shortage of health professions personnel being designated as health manpower shortage areas; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>consider different criteria (including the actual use of health professions personnel in an area by the residents of an area taking into account their health status and indicators of an <page identifier="/us/stat/95/904">95 STAT. 904</page>unmet demand and the likelihood that such demand would not be met in two years) which may be used to designate health manpower shortage areas.</content></paragraph> <continuation class="indent0 firstIndent0 fontsize10"><sidenote><p class="indent0 firstIndent0 fontsize8">Report to Congress.</p></sidenote>Not later than November 30, 1982, the Secretary shall report to the Congress the results of the activities undertaken under this subsection.</continuation> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254e">42 USC 254e</ref>.</p></sidenote> <content class="inline">Section 332(e) is amended by inserting “<quotedText>(1)</quotedText>” before “<quotedText>Prior</quotedText>” and by adding at the end thereof the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Notice.</p></sidenote> <content class="inline">Prior to the designation of a health manpower shortage area under this section, the Secretary shall, to the extent practicable, give written notice of the proposed designation of such area to appropriate public or private nonprofit entities which are located or have a demonstrated interest in such area and request comments from such entities with respect to the proposed designation of such area.”.</content></paragraph> </quotedContent> </content> </subsection> </section> <section> <heading class="centered smallCaps">assignment of corps personnel</heading><num value="2703"><inline class="smallCaps">Sec</inline>. 2703. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 333(a)(1)(D) (42 U.S.C. 254f(a)(1)(D)) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out beginning with “<quotedText>in the case of</quotedText>” through “which has expired,”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>continued need</quotedText>” in clause (i) and inserting in lieu thereof “<quotedText>need and demand</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by inserting “<quotedText>intended</quotedText>” before “<quotedText>use of Corps members</quotedText>” in clause (i);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by striking out “<quotedText>previously</quotedText>” before “<quotedText>assigned to the area</quotedText>” in clause (i) and inserting in lieu thereof “<quotedText>to be</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>by striking out “<quotedText>fiscal management by the entity with respect to Corps members previously assigned</quotedText>” in clause (i) and inserting in lieu thereof “<quotedText>the fiscal management capability of the entity to which Corps members would be assigned</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>by striking out “<quotedText>continued need</quotedText>” in clause (ii)(I) and inserting in lieu thereof “<quotedText>need and demand</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>by striking out “<quotedText>has been</quotedText>” in clause (ii)(II) and inserting in lieu thereof “<quotedText>will be</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>by striking out “<quotedText>previously</quotedText>” in clause (ii)(II);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">(9) </num><content>by striking out “<quotedText>continued</quotedText>” in clause (ii)(IV) and inserting in lieu thereof “<quotedText>unsuccessful</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">(10) </num><content>by striking out “<quotedText>has been</quotedText>” in clause (ii)(V) and inserting in lieu thereof “<quotedText>is a reasonable prospect of</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="11">(11) </num><content>by striking out “<quotedText>previously</quotedText>” in clause (ii)(V).</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Health manpower shortage area, assignment.</p></sidenote> <content class="inline">Paragraph (1) of subsection (a) of section 333 is amended by adding after and below subparagraph (D) the following: “<quotedText>An application for assignment of a Corps member to a health manpower shortage area shall include a demonstration by the applicant that the area or population group to be served by the applicant has a shortage of personal health services and that the Corps member will be located so that the member will provide services to the greatest number of persons residing in such area or included in such population group. Such a demonstration shall be made on the basis of the criteria prescribed by the Secretary under section 332(b) and on additional criteria which the Secretary shall prescribe to determine if the area or population group to be served by the applicant has a shortage of personal health services.</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Subsection (a) of section 333 is amended by adding at the end the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>In approving applications for assignment of members of the Corps the Secretary shall not discriminate against applications from <page identifier="/us/stat/95/905">95 STAT. 905</page>entities which are not receiving Federal financial assistance under this Act.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 333(c) is amended by striking out paragraph (2) and by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254f">42 USC 254f</ref>.</p></sidenote>redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Effective October 1, 1981, section 333 is amended by redesignating subsections (d) through (h) as subsections (e) through (i), respectively, and by adding after subsection (c) the following new subsection: <quotedContent> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary may not approve an application for the <sidenote><p class="indent0 firstIndent0 fontsize8">Assignment approval.</p><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 902.</p></sidenote>assignment of a member of the Corps described in subparagraph (C) of section 331(a)(1) to an entity unless the application of the entity contains assurances satisfactory to the Secretary that the entity (A) has sufficient financial resources to provide the member of the Corps with an income of not less than the income to which the member would be entitled if the member was a member described in subparagraph (B) of section 331(a)(1), or (B) would have such financial resources if a grant was made to the entity under paragraph (2).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><subparagraph class="inline"><num value="A">(A) </num><content>If in approving an application of an entity for the assignment <sidenote><p class="indent0 firstIndent0 fontsize8">Grants.</p></sidenote>of a member of the Corps described in subparagraph (C) of section 331(a)(1) the Secretary determines that the entity does not have sufficient financial resources to provide the member of the Corps with an income of not less than the income to which the member would be entitled if the member was a member described in subparagraph (B) of section 331(a)(1), the Secretary may make a grant to the entity to assure that the member of the Corps assigned to it will receive during the period of assignment to the entity such an income.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>The amount of any grant under subparagraph (A) shall be <sidenote><p class="indent0 firstIndent0 fontsize8">Amount.</p></sidenote>determined by the Secretary. Payments under such a grant may be made in advance or by way of reimbursement, and at such intervals and on such conditions, as the Secretary finds necessary. No grant may be made unless an application therefor is submitted to and approved by the Secretary. Such an application shall be in such form, submitted in such manner, and contain such information, as the Secretary shall by regulation prescribe.”.</content></subparagraph> </paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Section 333(g)(1) (as redesignated by subsection (d) of this section) is amended</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>shall</quotedText>” and inserting in lieu thereof “<quotedText>may</quotedText>”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>or have a demonstrated interest</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by adding at the end thereof the following: “<quotedText>Assistance provided under this paragraph may include assistance to an entity in (A) analyzing the potential use of health professions personnel in defined health services delivery areas by the residents of such areas, (B) determining the need for such personnel in such areas, (C) determining the extent to which such areas will have a financial base to support the practice of such personnel and the extent to which additional financial resources are needed to adequately support the practice, and (D) determining the types of inpatient and other health services that should be provided by such personnel in such areas.</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 333(g)(2) (as redesignated by subsection (d) of this section) is amended by striking out “<quotedText>shall</quotedText>” and inserting in lieu thereof “<quotedText>may</quotedText>” and by striking out “<quotedText>or have a demonstrated interest</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Section 333(g)(3) (as redesignated by subsection (d) of this section) is amended by striking out “<quotedText>shall</quotedText>” and inserting in lieu thereof “<quotedText>may</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Section 333(g) (as redesignated by subsection (d) of this section) is further amended by adding at the end the following: <page identifier="/us/stat/95/906">95 STAT. 906</page> <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><subparagraph class="inline"><num value="A">(A) </num><chapeau>The Secretary shall undertake to demonstrate the improvements that can be made in the assignment of members of the Corps to health manpower shortage areas and in the delivery of health care by Corps members in such areas through coordination with States, political subdivisions of States, agencies of States and political subdivisions, and other public and nonprofit private entities which have expertise in the planning, development, and operation of centers <sidenote><p class="indent0 firstIndent0 fontsize8">Agreements with qualified entities.</p></sidenote>for the delivery of primary health care. In carrying out this subparagraph, the Secretary shall enter into agreements with qualified entities which provide that if—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>the entity places in effect a program for the planning, development, and operation of centers for the delivery of primary health care in health manpower shortage areas which reasonably addresses the need for such care in such areas, and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>under the program the entity will perform the functions described in subparagraph (B),</content> </clause> <continuation class="indent0 firstIndent0 fontsize10">the Secretary will assign under this section members of the Corps in accordance with the program.</continuation> </subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">“Qualified entity.”</p></sidenote> <chapeau class="inline">For purposes of subparagraph (A), the term ‘qualified entity’ means a State, political subdivision of a State, an agency of a State or political subdivision, or other public or nonprofit private entity operating solely within one State, which the Secretary determines is able—</chapeau> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>to analyze the potential use of health professions personnel in defined health services delivery areas by the residents of such areas;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>to determine the need for such personnel in such areas and to recruit, select, and retain health professions personnel (including members of the National Health Service Corps) to meet such need;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iii">“(iii) </num><content>to determine the extent to which such areas will have a financial base to support the practice of such personnel and the extent to which additional financial resources are needed to adequately support the practice;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="iv">“(iv) </num><content>to determine the types of inpatient and other health services that should be provided by such personnel in such areas;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="v">“(v) </num><content>to assist such personnel in the development of their clinical practice and fee schedules and in the management of their practice;</content> </clause> <clause class="firstIndent1 fontsize10"><num value="vi">“(vi) </num><content>to assist in the planning and development of facilities for the delivery of primary health care; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="vii">“(vii) </num><content>to assist in establishing the governing bodies of centers for the delivery of such care and to assist such bodies in defining and carrying out their responsibilities.”.</content> </clause> </subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254f">42 USC 254f</ref>.</p></sidenote> <content class="inline">Section 333(h) (as redesignated by subsection (d) of this section) is amended by striking out “<quotedText>shall</quotedText>” and inserting in lieu thereof “<quotedText>may</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><content>Section 333(i) (as redesignated by subsection (d) of this section) is amended by striking out “<quotedText>or dentistry</quotedText>” and inserting in lieu thereof “<quotedText>dentistry, or any other health profession</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">cost sharing</heading><num value="2704"><inline class="smallCaps">Sec</inline>. 2704. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 334(a) (42 U.S.C. 254g(a)) is amended by inserting “<quotedText>for the assignment of a member of the Corps</quotedText>” after “<quotedText>section 333</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Subparagraphs (A) and (B) of section 334(a)(3) are amended to read as follows:</chapeau> <page identifier="/us/stat/95/907">95 STAT. 907</page> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>an amount calculated by the Secretary to reflect the <sidenote><p class="indent0 firstIndent0 fontsize8">Average salary and allowances.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254d">42 USC 254d</ref>.</p></sidenote>average salary (including amounts paid in accordance with section 331(d)) and allowances of comparable Corps members for a calendar quarter (or other period);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>that portion of an amount calculated by the Secretary to reflect the average amount paid under the Scholarship Program to or on behalf of comparable Corps members that bears the same ratio to the calculated amount as the number of days of service provided by the member during that quarter (or other period) bears to the number of days in his period of obligated service under the Program and”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Section 334(a)(3)(C) is amended (A) by inserting “<quotedText>or a grant <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254g">42 USC 254g</ref>.</p></sidenote>under section 333(d)(2)</quotedText>” after “<quotedText>section 335(c)</quotedText>”, and (B) by inserting “<quotedText>or grant</quotedText>” after “<quotedText>such loan</quotedText>” each time it occurs.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Section 334(b) is amended by adding at the end the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>In determining whether to grant a waiver under paragraph (1) or (2), the Secretary shall not discriminate against a public entity.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 334(e) is amended by striking out “<quotedText>this subpart</quotedText>” and inserting in lieu thereof “<quotedText>sections 331 through 335 and section 337</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">provision of health services by corps members</heading><num value="2705"><inline class="smallCaps">Sec</inline>. 2705. </num><subsection class="inline"><num value="a">(a) </num><content>Clause (2) of section 335(a) (42 U.S.C. 254h(a)) is amended to read as follows: “<quotedText>(2) in a manner which is cooperative with other health care providers serving such health manpower shortage area</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>The first sentence of section 335(c) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>and</quotedText>” before “<quotedText>(3)</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>; and (4) establishing appropriate continuing education programs</quotedText>”.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">preparation for practice</heading><num value="2706"><inline class="smallCaps">Sec</inline>. 2706. </num><subsection class="inline"><num value="a">(a) </num><content>Section 336 (42 U.S.C. 254i) is redesignated as section 336A.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Subpart II of part D of title III is amended by inserting after section 335 (42 U.S.C. 254h) the following new section: <quotedContent> <section> <heading class="centered smallCaps">“preparation for practice</heading><num value="336">“<inline class="smallCaps">Sec</inline>. 336. </num><subsection class="inline"><num value="a">(a) </num><content>The Secretary may make grants to and enter into <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254h–1">42 USC 254h–1</ref>.</p></sidenote>contracts with public and private nonprofit entities for the conduct of programs which are designed to prepare individuals subject to a service obligation under the National Health Service Corps scholarship program to effectively provide health services in the health manpower shortage area to which they are assigned.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>No grant may be made or contract entered into under subsection (a) unless an application therefor is submitted to and approved by the Secretary. Such an application shall be in such form, submitted in such manner, and contain such information, as the Secretary shall by regulation prescribe.”.</content> </subsection> </section> </quotedContent> </content> </subsection> </section> <section> <heading class="centered smallCaps">national advisory council</heading><num value="2707"><inline class="smallCaps">Sec</inline>. 2707. </num><subsection class="inline"><num value="a">(a) </num><content>Section 337(a) (42 U.S.C. 254j) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><content>There is established a council to be known as the National <sidenote><p class="indent0 firstIndent0 fontsize8">Establishment.</p></sidenote>Advisory Council on the National Health Service Corps (hereinafter in this section referred to as the ‘Council’). The Council shall be <sidenote><p class="indent0 firstIndent0 fontsize8">Membership.</p></sidenote><page identifier="/us/stat/95/908">95 STAT. 908</page>composed of not more than 15 members appointed by the Secretary. <sidenote><p class="indent0 firstIndent0 fontsize8">Consultation with Secretary.</p></sidenote>The Council shall consult with, advise, and make recommendations to, the Secretary with respect to his responsibilities in carrying out this subpart, and shall review and comment upon regulations promulgated by the Secretary under this subpart.”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254j">42 USC 254j</ref>.</p></sidenote> <content class="inline">The last sentence of section 337(b)(1) is amended by inserting “<quotedText>not</quotedText>” before “<quotedText>be reappointed</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">authorization of appropriations</heading><num value="2708"><inline class="smallCaps">Sec</inline>. 2708. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 338(a) (42 U.S.C. 254k) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>and</quotedText>” after “<quotedText>1979;</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting before the period a semicolon and the following: “<quotedText>$110,000,000 for the fiscal year ending September 30, 1982; $120,000,000 for the fiscal year ending September 30, 1983; and $130,000,000 for the fiscal year ending September 30, 1984</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 338(b) is amended by striking out “<quotedText>this subpart</quotedText>” and inserting in lieu thereof “<quotedText>sections 331 through 335, section 336A, and section 337</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">national health service corps scholarship program</heading><num value="2709"><inline class="smallCaps">Sec</inline>. 2709. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254l–254r">42 USC 254<i>l</i>–254r</ref>.</p></sidenote> <content class="inline">Sections 751, 752, 753, 754, 755, 756, and 757 (42 U.S.C. 294t–294y–1) are redesignated as sections 338A, 338B, 338C, 338D, 338E, 338F, and 338G, respectively.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254l">42 USC 254<i>l</i></ref>.</p></sidenote> <content class="inline">Section 338A(a) (as redesignated by subsection (a) of this section) is amended by inserting “<quotedText>clinical psychologists,</quotedText>” after “<quotedText>pharmacists,</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 338A(c)(1) (as redesignated by subsection (a) of this section) is amended by striking out “<quotedText>section 754</quotedText>” and inserting in lieu thereof “<quotedText>section 338D</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Section 338A(c)(2) (as redesignated by subsection (a) of this subsection) is amended by inserting “<quotedText>information respecting meeting a service obligation through private practice under an agreement under section 338C and</quotedText>” after “<quotedText>(2)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Section 338A(f)(1)(A)(ii) (as redesignated by subsection (a) of this section) is amended by striking out “<quotedText>subpart II of part D of title III</quotedText>” and inserting in lieu thereof “<quotedText>sections 331 through 335 and section 337</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>Section 338A(f)(2) (as redesignated by subsection (a) of this section) is amended by striking out “<quotedText>subpart II of part D of title III</quotedText>” and inserting in lieu thereof “<quotedText>sections 331 through 335 and sections 337 and 338</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>Section 338A(f)(3) (as redesignated by subsection (a) of this section) is amended by striking out “<quotedText>section 754</quotedText>” and inserting in lieu thereof “<quotedText>section 338D</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>Subsection (j) of section 338A (as redesignated by subsection (a) of this section) is repealed.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254m">42 USC 254m</ref>.</p></sidenote> <chapeau class="inline">Section 338B(a) (as redesignated by subsection (a) of this section) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>section 753</quotedText>” and inserting in lieu thereof “<quotedText>section 338C</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>section 751</quotedText>” and inserting in lieu thereof “<quotedText>section 338A</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Paragraphs (1) through (4) of section 338B(b) (as redesignated by subsection (a) of this section) are amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>If an individual is required under subsection (a) to provide service as specified in section 338A(f)(1)(B)(iv) (hereinafter in this <page identifier="/us/stat/95/909">95 STAT. 909</page>subsection referred to as ‘obligated service’), the Secretary shall, not later than ninety days before the date described in paragraph (5), determine if the individual shall provide such service—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>as a member of the Corps who is a commissioned officer in the Regular or Reserve Corps of the Service or who is a civilian employee of the United States, or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>as a member of the Corps who is not such an officer or employee,</content></subparagraph> <continuation class="indent0 firstIndent0 fontsize10">and shall notify such individual of such determination.</continuation> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>If the Secretary determines that an individual shall provide <sidenote><p class="indent0 firstIndent0 fontsize8">Obligated service, eligibility.</p></sidenote>obligated service as a member of the Corps who is a commissioned officer in the Service or a civilian employee of the United States, the Secretary shall, not later than sixty days before the date described in paragraph (5), provide such individual with sufficient information regarding the advantages and disadvantages of service as such a commissioned officer or civilian employee to enable the individual to make a decision on an informed basis. To be eligible to provide obligated service as a commissioned officer in the Service, an individual shall notify the Secretary, not later than thirty days before the date described in paragraph (5), of the individual’s desire to provide such service as such an officer. If an individual qualifies for an appointment as such an officer, the Secretary shall, as soon as possible after the date described in paragraph (5), appoint the individual as a commissioned officer of the Regular or Reserve Corps of the Service and shall designate the individual as a member of the Corps.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>If an individual provided notice by the Secretary under <sidenote><p class="indent0 firstIndent0 fontsize8">Civilian employee, designation.</p></sidenote>paragraph (2) does not qualify for appointment as a commissioned officer in the Service, the Secretary shall, as soon as possible after the date described in paragraph (5), appoint such individual as a civilian employee of the United States and designate the individual as a member of the Corps.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>If the Secretary determines that an individual shall provide obligated service as a member of the Corps who is not an employee of the United States, the Secretary shall, as soon as possible after the date described in paragraph (5), designate such individual as a member of the Corps to provide such service.”.</content></paragraph> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Section 338B(c)(1) (as redesignated by subsection (a) of this <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254m">42 USC 254m</ref>.</p></sidenote>section) is amended by striking out “<quotedText>or as a member of the Corps</quotedText>” and inserting in lieu thereof “<quotedText>or is designated as a member of the Corps under subsection (b)(3) or (b)(4)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Section 33813(c)(2) (as redesignated by subsection (a) of this section) is amended 1 striking out “<quotedText>section 753</quotedText>” and inserting in lieu thereof “<quotedText>section 338C</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><subparagraph class="inline"><num value="A">(A) </num><content>The first sentence of section 338B(d) (as redesignated by subsection (a) of this section) is amended by striking out “<quotedText>subpart II of part D of title III</quotedText>” and inserting in lieu thereof “<quotedText>sections 331 through 335 and sections 337 and 338</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>The second sentence of such section is amended by inserting after “<quotedText>written contract</quotedText>” the following: “<quotedText>and if such individual is an officer in the Service or a civilian employee of the United States</quotedText>”.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>Section 338B(e) (as redesignated by subsection (a) of this section) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><content>Notwithstanding any other provision of this title, service of an individual under a National Research Service Award awarded under subparagraph (A) or (B) of section 472(a)(1) shall be counted against <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s289l–1">42 USC 289<i>l</i>–1</ref>.</p></sidenote>the period of obligated service which the individual is required to perform under the Scholarship Program.”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <page identifier="/us/stat/95/910">95 STAT. 910</page> <subsection class="indent0 fontsize10"><num value="d">(d) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254n">42 USC 254n</ref>.</p></sidenote> <chapeau class="inline">Section 338C(a) (as redesignated by subsection (a) of this section) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by inserting a comma and “<quotedText>to the extent permitted by, and consistent with, the requirements of applicable State law,</quotedText>” after “<quotedText>shall</quotedText>”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>section 752(a)</quotedText>” and inserting in lieu thereof “section 338B(a) or under section 225 (as in effect on September 30, 1977); and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out “<quotedText>which has a priority for the assignment of Corps members under section 333(c)</quotedText>” in paragraph (2).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 338C(b)(1)(B) (as redesignated by subsection (a) of this subsection) is amended (A) by inserting “<quotedText>(i)</quotedText>” before “<quotedText>shall not</quotedText>”, and (B) by inserting before the semicolon a comma and the following: “<quotedText>and (ii) shall agree to accept an assignment under section <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395n">42 USC 1395n</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1395j">42 USC 1395j</ref>.</p></sidenote>1842(b)(3)(B)(ii) of such Act for all services for which payment may be made under part B of title XVIII of such Act and enter into an appropriate agreement with the State agency which administers the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s1396">42 USC 1396</ref>.</p></sidenote>State plan for medical assistance under title XIX of such Act to provide services to individuals entitled to medical assistance under the plan</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Section 338C (as redesignated by subsection (a) of this section) is further amended by adding at the end thereof the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Breach of contract.</p></sidenote> <content class="inline">If an individual breaches the contract entered into under section 338A by failing (for any reason) to begin his service obligation in accordance with an agreement entered into under subsection (a) or to complete such service obligation, the Secretary may permit such individual to perform such service obligation as a member of the Corps.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>The Secretary may pay an individual who has entered into an agreement with the Secretary under subsection (a) an amount to cover all or part of the individual’s expenses reasonably incurred in transporting himself, his family, and his possessions to the location of his private clinical practice.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary may make such arrangements as he determines are necessary for the individual for the use of equipment and supplies and for the lease or acquisition of other equipment and supplies.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">U.S. equipment and other property, sale.</p></sidenote> <content class="inline">Upon the expiration of the written agreement under subsection (a), the Secretary may (notwithstanding any other provision of law) sell to the individual who has entered into an agreement with the Secretary under subsection (a), equipment and other property of the United States utilized by such individual in providing health services. Sales made under this subsection shall be made at the fair market value (as determined by the Secretary) of the equipment or such other property, except that the Secretary may make such sales for a lesser value to the individual if he determines that the individual is financially unable to pay the full market value.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><chapeau>The Secretary may, out of appropriations authorized under section 338, pay to individuals participating in private practice under this section the cost of such individual’s malpractice insurance and the lesser of—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><subparagraph class="inline"><num value="A">(A) </num><content>$10,000 in the first year of obligated service;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>$7,500 in the second year of obligated service;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>$5,000 in the third year of obligated service; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>$2,500 in the fourth year of obligated service; or</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>an amount determined by subtracting such individual’s net income before taxes from the income the individual would <page identifier="/us/stat/95/911">95 STAT. 911</page>have received as a member of the Corps for each such year of obligated service.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><content>The Secretary shall, upon request, provide to each individual <sidenote><p class="indent0 firstIndent0 fontsize8">Technical assistance.</p></sidenote>released from service obligation under this section technical assistance to assist such individual in fulfilling his or her agreement under this section.”.</content> </subsection> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 338D las redesignated by subsection (a) of this section) <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254o">42 USC 254<i>o</i></ref>.</p></sidenote>is amended by striking out subsection (a) and redesignating subsections (b), (c), and (d) as subsections (a), (b), and (c), respectively.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Section 338D(a) (as redesignated by subsection (a) of this section and paragraph (1) of this subsection) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>section 751</quotedText>” and inserting in lieu thereof “<quotedText>section 338A</quotedText>”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>or</quotedText>” at the end of paragraph (2);</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by inserting “<quotedText>or</quotedText>” at the end of paragraph (3); and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>by inserting after paragraph (3) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>fails to accept payment, or instructs the educational institution in which he is enrolled not to accept payment, in whole or in part, of a scholarship under such contract”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><chapeau>Section 338D(b) (as redesignated by subsection (a) of this section and paragraph (1) of this subsection) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by striking out “<quotedText>(c) if</quotedText>” in the first sentence and inserting in lieu thereof “<quotedText>(b)(1) Except as provided in paragraph (2), if</quotedText>”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by striking out “<quotedText>(for any reason)</quotedText>” in the first sentence and inserting in lieu thereof “<quotedText>(for any reason not specified in subsection (a) or section 338F(b))</quotedText>”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out “<quotedText>section 752 or 753</quotedText>” in the first sentence and inserting in lieu thereof “<quotedText>section 338B or 338C</quotedText>”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>by striking out “<quotedText>section 752</quotedText>” in the first sentence and inserting in lieu thereof “<quotedText>section 338B</quotedText>”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="E">(E) </num><content>by striking out “<quotedText>section 753</quotedText>” in the first sentence and inserting in lieu thereof “<quotedText>section 338C</quotedText>”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="F">(F) </num><content>by inserting in the second sentence “<quotedText>(or such longer period beginning on such date as specified by the Secretary for good cause shown)</quotedText>” after “<quotedText>written contract</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="G">(G) </num><content>by adding at the end the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>If an individual is released under section 753 from a service <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 908.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s234">42 USC 234</ref>.</p></sidenote>obligation under section 225 (as in effect on September 30, 1977) and if the individual does not meet the service obligation incurred under section 753, subsection (0 of such section 225 shall apply to such individual in lieu of paragraph (1) of this subsection.”.</content></paragraph> </quotedContent> </content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><subparagraph class="inline"><num value="A">(A) </num><content>Section 338D(c)(2) (as redesignated by subsection (a) of this section and paragraph (1) of this subsection) is amended by inserting “<quotedText>partial or total</quotedText>” before “<quotedText>waiver</quotedText>”.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>Section 735(c)(1) (42 U.S.C. 294h(c)(1)) is amended— <quotedContent> <clause class="firstIndent1 fontsize10"><num value="i">“(i) </num><content>by striking out “<quotedText>clauses (A) and (B) of</quotedText>”; and</content> </clause> <clause class="firstIndent1 fontsize10"><num value="ii">“(ii) </num><content>by striking out “<quotedText>section 753</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>section 338C</quotedText>”.</content> </clause> </quotedContent> </content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><paragraph class="inline"><num value="1">(1) </num><content>The section heading for section 338E (as redesignated by <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254p">42 USC 254p</ref>.</p></sidenote>subsection (a) of this section) is amended by striking out “<quotedText>grants</quotedText>” and inserting in lieu thereof “<quotedText>loans</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>Section 338E(a) (as redesignated by subsection (a) of this section) is amended—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>by inserting a comma and “<quotedText>out of appropriations authorized under section 338,</quotedText>” after “<quotedText>The Secretary may</quotedText>”;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>by inserting “<quotedText>or one loan</quotedText>” after “<quotedText>grant</quotedText>”;</content></subparagraph> <page identifier="/us/stat/95/912">95 STAT. 912</page> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>by striking out “<quotedText>(other than an individual who has entered into an agreement under section 338C)</quotedText>”; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>by inserting “<quotedText>at least two years of</quotedText>” after “<quotedText>completed</quotedText>” in paragraph (1).</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254p">42 USC 254p</ref>.</p></sidenote> <content class="inline">Section 338E(a)(2)(A) (as redesignated by subsection (a) of this section) is amended by striking out “<quotedText>and described in paragraphs (1) and (2) of section 338C(a)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>Section 338E(a)(2)(B) (as redesignated by subsection (a) of this section) is amended by striking out “<quotedText>section 753(b)(1)</quotedText>” and inserting in lieu thereof “<quotedText>section 338C(b)(1)</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>Section 338E(b) (as redesignated by subsection (a) of this section) is amended by inserting “<quotedText>or loan</quotedText>” after “<quotedText>grant</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>Section 338E(c) (as redesignated by subsection (a) of this section) is amended by inserting “<quotedText>or loan</quotedText>” after “<quotedText>grant</quotedText>” and by adding at the end thereof the following new sentence: “The Secretary shall, by regulation, set interest rates and repayment terms for loans under this section.”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>The second sentence of section 338E(d) (as redesignated by subsection (a) of this section) is amended to read as follows: “If within 60 days after the date of giving such notice, such individual is not practicing his profession in accordance with the agreement under such subsection and has not provided assurances satisfactory to the Secretary that he will not knowingly violate such agreement again, the United States shall be entitled to recover from such individual— <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>in the case of an individual who has received a grant under <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 908.</p></sidenote>this section, an amount determined under section 338D(c), except that in applying the formula contained in such section “ϕ” shall be the sum of the amount of the grant made under subsection (a) to such individual and the interest on such amount which would be payable if at the time it was paid it was a loan bearing interest at the maximum legal prevailing rate, “t” shall be the number of months that such individual agreed to practice his profession under such agreement, and “s” shall be the number of months that such individual practices his profession in accordance with such agreement; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>in the case of an individual who has received a loan under this section, the full amount of the principal and interest owed by such individual under this section.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="g">(g) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254q">42 USC 254q</ref>.</p></sidenote> <content class="inline">Section 338F(a) (as redesignated by subsection (a) of this section) is amended by inserting before the last sentence the following <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote>new sentence: “For the fiscal year ending September 30, 1982, and each of the two succeeding fiscal years, there are authorized to be appropriated such sums as may be necessary to make 550 new <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 908.</p></sidenote>scholarship awards in accordance with section 338A(d) in each such fiscal year and to continue to make scholarship awards to students who have entered into written contracts under the Scholarship Program before October 1, 1984.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>The last sentence of such section is amended by—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>striking out “<quotedText>1981</quotedText>” and inserting in lieu thereof “<quotedText>1985</quotedText>”, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>striking out “<quotedText>1980</quotedText>” and inserting in lieu thereof “<quotedText>1984</quotedText>”.</content></subparagraph> </paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="h">(h) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254m">42 USC 254m note</ref>.</p></sidenote> <content class="inline">The amendments made by paragraphs (2), (3), and (5)(B) of subsection (c) shall apply with respect to contracts entered into under the National Health Service Corps scholarship program under subpart <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s294r">42 USC 294r</ref>.</p></sidenote>III of part C of title VII of the Public Health Service Act after the date of the enactment of this Act. An individual who before such date has entered into such a contract and who has not begun the period of obligated service required under such contract shall be given the <page identifier="/us/stat/95/913">95 STAT. 913</page>opportunity to revise such contract to permit the individual to serve such period as a member of the National Health Service Corps who is not an employee of the United States.</content> </subsection> </section> </chapter> <chapter><num value="2">CHAPTER 2—</num><heading>HEALTH PROFESSIONS EDUCATION</heading> <section> <heading class="centered smallCaps">limitation of use of appropriations</heading><num value="2715"><inline class="smallCaps">Sec</inline>. 2715. </num><content>Section 700 (42 U.S.C. 292) is repealed. <sidenote><p class="indent0 firstIndent0 fontsize8">Repeal.</p></sidenote></content> </section> <section> <heading class="centered smallCaps">definitions</heading><num value="2716"><inline class="smallCaps">Sec</inline>. 2716. </num><subsection class="inline"><num value="a">(a) </num><content>Section 701(2) (42 U.S.C. 292a(2)) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The term ‘nonprofit’ refers to the status of an entity owned and operated by one or more corporations or associations no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.”.</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 701(4) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>a school which</quotedText>” and inserting in lieu thereof “<quotedText>an accredited public or nonprofit private school in a State that</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding at the end thereof the following: “<quotedText>The term ‘graduate program in health administration’ means an accredited graduate program in a public or nonprofit private institution in a State that provides training leading to a graduate degree in health administration or an equivalent degree.</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>Section 701 is further amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by redesignating paragraphs (5), (6), (7), (8), (9), and (10) as paragraphs (6), (7), (8), (9), (11), and (12), respectively;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting after paragraph (4) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="5">“(5) </num><content>The term ‘accredited’, when applied to a school of medicine, osteopathy, dentistry, veterinary medicine, optometry, podiatry, pharmacy, or public health, or a graduate program in health administration, means a school or program that is accredited by a recognized body or bodies approved for such purpose by the Secretary of Education, except that a new school or program that, by reason of an insufficient period of operation, is not, at the time of application for a grant or contract under this title, eligible for accreditation by such a recognized body or bodies, shall be deemed accredited for purposes of this title, if the Secretary of Education finds, after consultation with the appropriate accreditation body or bodies, that there is reasonable assurance that the school or program will meet the accreditation standards of such body or bodies prior to the beginning of the academic year following the normal graduation date of the first entering class in such school or program.”; and</content></paragraph> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by inserting after paragraph (9) the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="10">“(10) </num><chapeau>The term ‘school of allied health’ means a public or nonprofit private junior college, college, or university—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>which provides, or can provide, programs of education in a discipline of allied health leading to a baccalaureate or associate degree (or an equivalent degree of either) or to a more advanced degree;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>which provides training for not less than a total of twenty persons in the allied health curricula;</content></subparagraph> <page identifier="/us/stat/95/914">95 STAT. 914</page> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>which includes or is affiliated with a teaching hospital; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num><content>which is accredited by a recognized body or bodies approved for such purposes by the Secretary of Education, or which provides to the Secretary satisfactory assurance by such accrediting body or bodies that reasonable progress is being made toward accreditation.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s292a">42 USC 292a</ref>.</p></sidenote> <content class="inline">Section 701(11) (as redesignated by subsection (c)(1) of this section) is amended by inserting “<quotedText>the Commonwealth of</quotedText>” before “<quotedText>the Northern Mariana Islands,</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Section 701(12) (as redesignated by subsection (c)(1) of this section) is amended by striking out “<quotedText>Department of Health, Education, and Welfare</quotedText>” and inserting in lieu thereof “<quotedText>Department of Health and Human Services</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">advance funding</heading><num value="2717"><inline class="smallCaps">Sec</inline>. 2717. </num><chapeau>Section 703 (42 U.S.C. 292c) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>(a)</quotedText>”, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out subsection (b).</content></paragraph> </section> <section> <heading class="centered smallCaps">records and audits</heading><num value="2718"><inline class="smallCaps">Sec</inline>. 2718. </num><content>The second sentence of section 705(a)(42 U.S.C. 292e(a)) is repealed.</content> </section> <section> <heading class="centered smallCaps">health professions data</heading><num value="2719"><inline class="smallCaps">Sec</inline>. 2719. </num><subsection class="inline"><num value="a">(a) </num><content>Section 708(a) (42 U.S.C. 292h(a)) is amended by inserting “<quotedText>chiropractors, clinical psychologists,</quotedText>” after “<quotedText>medical technologists,</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Subsections (c) and (d) of section 708 are amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Report.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s296">42 USC 296</ref>.</p></sidenote> <content class="inline">Any school, program, or training center receiving funds under this title or title VIII shall submit an annual report to the Secretary. Such report shall contain such information as is necessary to assist the Secretary in carrying out this section and evaluating the efficacy of these programs in addressing national health priorities. The Secretary shall not require the collection or transmittal of any information under this subsection that is not readily available to such school, program, or training center. Information provided pursuant to this subsection shall be collected or transmitted only to the extent permitted under subsection (e).</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Reports to Congress.</p></sidenote> <chapeau class="inline">The Secretary shall submit to Congress on October 1, 1983, and biennially thereafter, the following reports:</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>A comprehensive report regarding the status of health personnel according to profession, including a report regarding the analytic and descriptive studies conducted under this section.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>A comprehensive report regarding applicants to, and students enrolled in, programs and institutions for the training of health personnel, including descriptions and analyses of student indebtedness, student need for financial assistance, financial resources to meet the needs of students, student career choices such as practice specialty and geographic location and the relationship, if any, between student indebtedness and career choices.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> </section> <page identifier="/us/stat/95/915">95 STAT. 915</page> <section> <heading class="centered smallCaps">shared scheduled residency training positions</heading><num value="2720"><inline class="smallCaps">Sec</inline>. 2720. </num><subsection class="inline"><num value="a">(a) </num><content>Section 709 (42 U.S.C. 292i) is repealed. <sidenote><p class="indent0 firstIndent0 fontsize8">Repeal.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Sections 710 (42 U.S.C. 292j) and 711 (42 U.S.C. 292k) are redesignated as sections 709 and 710, respectively.</content> </subsection> </section> <section> <heading class="centered smallCaps">payment under grants</heading><num value="2721"><inline class="smallCaps">Sec</inline>. 2721. </num><content>Section 709 (as redesignated by section 2720(b) of this <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s292j">42 USC 292j</ref>.</p></sidenote>Act) is amended to read as follows: <quotedContent> <section> <heading class="centered smallCaps">“applications, payments, and assurances under grants</heading><num value="709">“<inline class="smallCaps">Sec</inline>. 709. </num><subsection class="inline"><num value="a">(a) </num><content>Grants made under this title may be paid (1) in advance or by way of reimbursement, (2) at such intervals and on such conditions as the Secretary may find necessary, and (3) with appropriate adjustments on account of overpayments or underpayments previously made.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>No grant may be made or contract entered into under this title unless an application therefor has been submitted to and approved by the Secretary. Such application shall be in such form, submitted in such manner, and contain such information, as the Secretary shall by regulation prescribe.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>Whenever in this title an applicant is required to provide assurances to the Secretary, or an application is required to contain assurances or be supported by assurances, the Secretary shall determine before approving the application that the assurances provided are made in good faith.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><content>The Secretary may provide technical assistance for the purpose of carrying out any program or purpose under this title.”.</content> </subsection> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">tuition and other educational costs</heading><num value="2722"><inline class="smallCaps">Sec</inline>. 2722. </num><content>Section 710 (as redesignated by section 2720(b) of this <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s292k">42 USC 292k</ref>.</p></sidenote>Act) is amended to read as follows: <quotedContent> <section> <heading class="centered smallCaps">“differential tuition and fees</heading><num value="710">“<inline class="smallCaps">Sec</inline>. 710. </num><content>The Secretary may not enter into a contract with, or make a grant, loan guarantee, or interest subsidy payment under this title or title VIII, to or for the benefit of, any school, program, or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s296">42 USC 296</ref>.</p></sidenote>training center if the tuition levels or educational fees at such school, program, or training center are higher for certain students solely on the basis that such students are the recipients of traineeships, loans, loan guarantees, service scholarships, or interest subsidies from the Federal Government.”.</content> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">construction assistance for conversions</heading><num value="2723"><inline class="smallCaps">Sec</inline>. 2723. </num><subsection class="inline"><num value="a">(a) </num><content>Section 720(a) (42 U.S.C. 293(a)) is amended by adding at the end the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The Secretary may make grants to schools providing the first 2 <sidenote><p class="indent0 firstIndent0 fontsize8">Grants to schools.</p></sidenote>years of education leading to the degree of doctor of medicine to assist in the construction of the teaching facilities which the schools require to become schools of medicine.”.</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Subsection (b) of such section is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>For the purpose of grants under subsection (a)(3), there are <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote>authorized to be appropriated $5,000,000 for the fiscal year ending September 30, 1983, to remain available until expended.”.</content> </subsection> </quotedContent> </content> </subsection> <page identifier="/us/stat/95/916">95 STAT. 916</page> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 721(b)(1) (42 U.S.C. 293a(b)) is amended (1) by inserting after “<quotedText>(1)</quotedText>” the following: “To be eligible to apply for a grant under <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 915.</p></sidenote>section 720(a)(3) the applicant must be a public or nonprofit school providing the first 2 years of education leading to the degree of doctor of medicine and be accredited by a recognized body or bodies approved for such purpose by the Secretary of Education.”, and (2) by striking out “<quotedText>under this part</quotedText>” and inserting in lieu thereof “<quotedText>under paragraph (1) or (2) of section 720(a)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Subsection 721(g)(1) is amended by striking out “<quotedText>section 720(a)(2)</quotedText>” and inserting in lieu thereof “<quotedText>paragraph (2) or (3) of section 720(a)</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Subsection (a) of section 722 (42 U.S.C. 293b(a)) is amended by adding at the end the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The amount of any grant under section 720(a)(3) shall be such amount as the Secretary determines to be appropriate after obtaining advice from the Council, except that no grant for any project may exceed 80 percent of the necessary costs of construction, as determined by the Secretary.”.</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num><content>Section 723(a) (42 U.S.C. 293c(a)) is amended by striking out “<quotedText>section 720(a)(1)</quotedText>” and inserting in lieu thereof “<quotedText>paragraph (1) or (3) of section 720(a)</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">repeal of enrollment increase requirement</heading><num value="2724"><inline class="smallCaps">Sec</inline>. 2724. </num><subsection class="inline"><num value="a">(a) </num><content>Paragraph (2) of section 721(c) (42 U.S.C. 293a(c)(2)) is amended (1) by inserting “<quotedText>and</quotedText>” after “<quotedText>the facility,</quotedText>”, and (2) by striking out “<quotedText>, and (D)</quotedText>” and all that follows in that paragraph and inserting in lieu thereof a semicolon.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s293a">42 USC 293a note</ref>.</p></sidenote> <content class="inline">The Secretary of Health and Human Services shall unilaterally release all recipients of grants, loan guarantees, and interest subsidies <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s293/293f">42 USC 293, 293f</ref>.</p></sidenote>under sections 720(a) and 726 (as such sections were in effect prior to October 1, 1981) from any contractual obligation to fulfill enrollment increases incurred pursuant to such sections or under regulations published to implement such sections.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s293a">42 USC 293a note</ref>.</p></sidenote> <content class="inline">The amendment made by subsection (a) shall apply with respect to any entity which received a grant, loan guarantee, or interest subsidy under section 720 or section 726 irrespective of the date of the grant, loan guarantee, or interest subsidy.</content> </subsection> </section> <section> <heading class="centered smallCaps">loan guarantees and interest subsidies</heading><num value="2725"><inline class="smallCaps">Sec</inline>. 2725. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s298f">42 USC 298f</ref>.</p></sidenote> <content class="inline">Section 726(b) (42 U.S.C. 293i(b)) is amended (1) by inserting “<quotedText>before October 1, 1981,</quotedText>” after “<quotedText>loan has been made</quotedText>”, and (2) by striking out “<quotedText>, during the period beginning July 1, 1971, and ending with the close of September 30, 1980,</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>The second sentence of section 726(e) is amended by striking out “<quotedText>and</quotedText>” after “<quotedText>1979,</quotedText>” and by inserting before the period a comma and “<quotedText>and $4,300,000 for the fiscal year ending September 30, 1982, and each of the next 2 fiscal years</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Repeal.</p></sidenote> <content class="inline">Section 726(g) is repealed.</content> </subsection> </section> <section> <heading class="centered smallCaps">scope and duration of federal loan insurance program</heading><num value="2726"><inline class="smallCaps">Sec</inline>. 2726. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>The first sentence of section 728(a) (42 U.S.C. 294a(a)) is amended by striking out “<quotedText>and</quotedText>” after “<quotedText>1979;</quotedText>” and by inserting before the period a semicolon and “<quotedText>and $200,000,000 for the fiscal year ending September 30, 1982; $225,000,000 for the fiscal year <page identifier="/us/stat/95/917">95 STAT. 917</page>ending September 30, 1983; and $250,000,000 for the fiscal year ending September 30, 1984</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The last sentence of such subsection is amended by striking out “<quotedText>1982</quotedText>” and inserting in lieu thereof “<quotedText>1987</quotedText>”. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s294a">42 USC 294a</ref>.</p></sidenote></content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 728(c) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><chapeau>Subject to paragraph (2), the Student Loan Marketing Association, established under part B of title IV of the Higher Education Act of 1965, is authorized to make advances on the security <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1071">20 USC 1071</ref>.</p></sidenote>of, purchase, service, sell, consolidate, or otherwise deal in loans which are insured by the Secretary under this subpart, except that if any loan made under this subpart is included in a consolidated loan pursuant to the authority of the Association under part B of title IV of the Higher Education Act of 1965, the interest rate on such consolidated loan shall be set at the weighted average interest rate of all loans offered for consolidation and the resultant per centum shall be rounded downward to the nearest one-eighth of 1 per centum, except that the interest rate shall be no less than the applicable interest rate of the guaranteed student loan program established under part B of title IV of the Higher Education Act of 1965. In the case of such a consolidated loan, the borrower shall be responsible for any interest which accrues prior to the beginning of the repayment period of the loan, or which accrues during a period in which principal need not be paid (whether or not such principal is in fact paid) by reason of any provision of the Higher Education Act of 1965. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1001">20 USC 1001 note</ref>.</p></sidenote>Special allowances payable with respect to consolidated loans made by the Association pursuant to the terms of this subsection—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>shall be computed in accordance with section 438(b)(2)(A) of the Higher Education Act of 1965, and <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 454.</p></sidenote></content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>shall be reduced (i) by subtracting 7 percent from the weighted average interest rate of a loan computed according to this subsection, and (ii) by subtracting the resultant remainder from such special allowance.</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>No loan insured by the Secretary under this subpart may be included in a consolidated loan pursuant to the authority of the Student Loan Marketing Association under part B of title IV of the Higher Education Act of 1965 if as a result of such inclusion the Federal Government becomes liable for any greater payment of principal or interest under the provisions of section 439(o) of the Higher Education Act of 1965 than the Federal Government would <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1430">94 Stat. 1430</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1087–2">20 USC 1087–2</ref>.</p></sidenote>have been liable for had no consolidation occurred.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> </section> <section> <heading class="centered smallCaps">limitations</heading><num value="2727"><inline class="smallCaps">Sec</inline>. 2727. </num><content>Section 729(a) (42 U.S.C. 294b(a)) is amended to read as follows: <quotedContent> <section> <heading class="centered smallCaps">“limitations on individual federally insured loans and on federal loan insurance</heading><num value="729">“<inline class="smallCaps">Sec</inline>. 729. </num><subsection class="inline"><num value="a">(a) </num><content>The total of the loans made to a student in any academic year or its equivalent (as determined by the Secretary) which may be covered by Federal loan insurance under this subpart may not exceed $20,000 in the case of a student enrolled in a school of medicine, osteopathy, dentistry, veterinary medicine, optometry, or podiatry, and $12,500 in the case of a student enrolled in a school of pharmacy, public health, or chiropractic, or a graduate program in health administration or clinical psychology. The aggregate insured unpaid principal amount for all such insured loans made to any <page identifier="/us/stat/95/918">95 STAT. 918</page>borrower shall not at any time exceed $80,000 in the case of a borrower who is or was a student enrolled in a school of medicine, osteopathy, dentistry, veterinary medicine, optometry, or podiatry, and $50,000 in the case of a borrower who is or was a student enrolled in a school of pharmacy, public health, or chiropractic, or a graduate program in health administration or clinical psychology. The annual insurable limit per student shall not be exceeded by a line of credit under which actual payments by the lender to the borrower will not be made in any year in excess of the annual limit.”.</content> </subsection> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">eligibility of student borrowers and terms of federally insured loans</heading><num value="2728"><inline class="smallCaps">Sec</inline>. 2728. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3192">94 Stat. 3192</ref>.</p></sidenote> <content class="inline">Section 731(a)(1)(A) (42 U.S.C. 294d(a)(1)(A)) is amended by striking out clause (iii) and redesignating clauses (iv) and (v) as clauses (iii) and (iv), respectively.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Clause (iii) of such section (as redesignated by paragraph (1) of this subsection) is amended by striking out “<quotedText>and</quotedText>” before “<quotedText>other reasonable educational expenses</quotedText>” and by inserting “<quotedText>and reasonable living expenses,</quotedText>” after “<quotedText>and laboratory expenses,</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 731(a)(2) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>15 years</quotedText>” in subparagraph (B) and inserting in lieu thereof “<quotedText>25 years</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>23 years</quotedText>” in such subparagraph and inserting in lieu thereof “<quotedText>33 years</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out “<quotedText>installments of principal need not be paid, but interest shall accrue and be paid</quotedText>” in subparagraph (C) and inserting in lieu thereof “<quotedText>installments of principal and interest need not be paid, but interest shall accrue</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by striking out “<quotedText>three years</quotedText>” in subparagraph (C)(ii) and inserting in lieu thereof “<quotedText>four years</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>by striking out “<quotedText>the 15-year period or the 23-year period</quotedText>” in subparagraph (C) and inserting in lieu thereof “<quotedText>the 25-year period or the 33-year period</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="6">(6) </num><content>by inserting “<quotedText>except as provided in subparagraph (C)</quotedText>” after “<quotedText>period of the loan</quotedText>” in subparagraph (D);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="7">(7) </num><content>by striking out “<quotedText>otherwise payable (i) before the beginning of the repayment period, (ii) during any period described in subparagraph (C), or (iii) during any other period of forbearance of payment of principal,</quotedText>” in subparagraph (D);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="8">(8) </num><content>by inserting “<quotedText>for the purposes of calculating a repayment schedule</quotedText>” before the semicolon in subparagraph (D);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="9">(9) </num><content>by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G), respectively; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="10">(10) </num><content>by inserting after subparagraph (D) the following: <quotedContent> <subparagraph class="firstIndent1 fontsize10"><num value="E">“(E) </num><content>offers, in accordance with criteria prescribed by regulation by the Secretary, a schedule for repayment of principal and interest under which payment of a portion of the principal and interest otherwise payable at the beginning of the repayment period (as defined in such regulations) is deferred until a later time in the period;”.</content></subparagraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 731(c) is amended by inserting before the period a comma and “<quotedText>except as provided in section 731(a)(2)(C)</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">certificate of federal loan insurance</heading><num value="2729"><inline class="smallCaps">Sec</inline>. 2729. </num><content>Section 732 (42 U.S.C. 294e) is amended by adding at the end thereof the following new subsection: <page identifier="/us/stat/95/919">95 STAT. 919</page> <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><content>Nothing in this section shall be construed to preclude the lender and the borrower, by mutual agreement, from consolidating all of the borrower’s debts into a single instrument, except that the portion of such debt that is insured under this subpart shall not be consolidated on terms less favorable to the borrower than if no consolidation had occurred and no loan under this subpart may be consolidated with any other loan if, as a result of such consolidation, the Federal Government becomes liable for any payment of principal or interest under the provisions of section 439(o) of the Higher Education Act of 1965.”. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1430">94 Stat. 1430</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s1087–2">20 USC 1087–2</ref>.</p></sidenote></content> </subsection> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">defaults</heading><num value="2730"><inline class="smallCaps">Sec</inline>. 2730. </num><content>Section 733(g) (42 U.S.C. 294f(g)) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><chapeau>A debt which is a loan insured under the authority of this subpart may be released by a discharge in bankruptcy under title 11, United States Code, only if such discharge is granted—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>after the expiration of the 5-year period beginning on the first date, as specified in subparagraphs (B) and (C) of section 731(a)(2), when repayment of such loan is required; <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 918.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>upon a finding by the Bankruptcy Court that the nondischarge of such debt would be unconscionable; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>upon the condition that the Secretary shall not have waived the Secretary’s rights to apply subsection (f) to the borrower and the discharged debt.”.</content></paragraph> </subsection> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">definitions; student assistance</heading><num value="2731"><inline class="smallCaps">Sec</inline>. 2731. </num><subsection class="inline"><num value="a">(a) </num><content>Section 737(1) (42 U.S.C. 294j(1)) is amended to read as follows: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>The term ‘eligible institution’ means, with respect to a fiscal year, a school of medicine, osteopathy, dentistry, veterinary medicine, optometry, podiatry, pharmacy, public health or chiropractic, or a graduate program in health administration or clinical psychology.”.</content></paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 737 is further amended by striking out paragraph (2), by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively, and by inserting after paragraph (1) (as amended by subsection (a) of this section) the following new paragraphs: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The term ‘school of chiropractic’ means a school which provides training leading to a degree of doctor of chiropractic or an equivalent degree and which is accredited in the manner described in section 701(5). <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 913.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>The term ‘graduate program in clinical psychology’ means a graduate program in a public or nonprofit private institution in a State which provides training leading to a doctoral degree in clinical psychology or an equivalent degree and which is accredited in the manner described in section 701(5).”.</content></paragraph> </quotedContent> </content> </subsection> </section> <section> <heading class="centered smallCaps">eligible students</heading><num value="2732"><inline class="smallCaps">Sec</inline>. 2732. </num><content>Subpart I of part C of title VII is amended by inserting after section 737 the following new section: <quotedContent> <section> <heading class="centered smallCaps">“determination of eligible students</heading><num value="737A">“<inline class="smallCaps">Sec</inline>. 737A. </num><content>For purposes of determining eligible students under <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s294j–i">42 USC 294j–i</ref>.</p></sidenote>this part, in the case of a public school in a State that offers an accelerated, integrated program of study combining undergraduate <page identifier="/us/stat/95/920">95 STAT. 920</page>premedical education and medical education leading to advanced entry, by contractual agreement, into an accredited four-year school of medicine which provides the remaining training leading to a degree of doctor of medicine, whenever in this part a provision refers to a student at a school of medicine, such reference shall include only a student enrolled in any of the last four years of such accelerated, integrated program of study.”.</content> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">eligibility of institutions</heading><num value="2733"><inline class="smallCaps">Sec</inline>. 2733. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s294l">42 USC 294<i>l</i></ref>.</p></sidenote> <chapeau class="inline">Section 739(a) (42 U.S.C. 294k(a)) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>and</quotedText>” at the end of paragraph (2);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>whether</quotedText>” in paragraph (3) and inserting in lieu thereof “<quotedText>whenever</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out the period at the end of paragraph (3) and inserting in lieu thereof a semicolon and “<quotedText>and</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by adding at the end thereof the following new paragraph: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>the collection of information from the borrower, lender, or eligible institution to assure compliance with the provisions of <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s294d">42 USC 294d</ref>.</p></sidenote>section 731.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 739(b) is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Records.</p></sidenote> <content class="inline">The Secretary shall require an eligible institution to record, and make available to the lender and to the Secretary upon request, the name, address, postgraduate destination, and other reasonable identifying information for each student of such institution who has a loan insured under this subpart.”.</content> </subsection> </quotedContent> </content> </subsection> </section> <section> <heading class="centered smallCaps">authorizations</heading><num value="2734"><inline class="smallCaps">Sec</inline>. 2734. </num><subsection class="inline"><num value="a">(a) </num><content>The first sentence of section 742(a) (42 U.S.C. 2940(a)) is amended by striking out “<quotedText>and</quotedText>” after “<quotedText>1979,</quotedText>” and by inserting before the period a comma and $12,000,000 for the fiscal year ending September 30, 1982, $13,000,000 for the fiscal year ending September 30, 1983, and $14,000,000 for the fiscal year ending September 30, 1984”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Repeal.</p></sidenote> <content class="inline">The second sentence of section 742(a) is repealed.</content> </subsection> </section> <section> <heading class="centered smallCaps">interest rate</heading><num value="2735"><inline class="smallCaps">Sec</inline>. 2735. </num><content>Section 741(e) (42 U.S.C. 294n(e)) is amended by striking out “<quotedText>7</quotedText>” and inserting in lieu thereof “<quotedText>9</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">distribution of assets from loan funds</heading><num value="2736"><inline class="smallCaps">Sec</inline>. 2736. </num><content>Section 743 (42 U.S.C. 294p) is amended by striking out “<quotedText>1983</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>1987</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">extension of scholarships for students of exceptional financial need</heading><num value="2737"><inline class="smallCaps">Sec</inline>. 2737. </num><subsection class="inline"><num value="a">(a) </num><content>Section 758(d) (42 U.S.C. 294z(d)) is amended (1) by striking out “<quotedText>and</quotedText>” after “<quotedText>1979,</quotedText>”, and (2) by inserting before the period a comma and the following: “<quotedText>$6,000,000 for the fiscal year ending September 30, 1982, $6,500,000 for the fiscal year ending September 30, 1983, and $7,000,000 for the fiscal year ending September 30, 1984</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 758(c) is amended (1) by striking out “<quotedText>distribute grants under this section among all schools of the health professions, but <page identifier="/us/stat/95/921">95 STAT. 921</page>shall</quotedText>”, and (2) by striking out “<quotedText>such grants</quotedText>” and inserting in lieu thereof “<quotedText>grants under subsection (a)</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">departments of family medicine</heading><num value="2738"><inline class="smallCaps">Sec</inline>. 2738. </num><subsection class="inline"><num value="a">(a) </num><content>Section 780(a) (42 U.S.C. 295g(a)) is amended by striking out “<quotedText>and maintain</quotedText>” and by inserting in lieu thereof a comma and “<quotedText>maintain, or improve</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 780(b)(1)(D) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>have control over</quotedText>” and inserting in lieu thereof “<quotedText>have control over (or in the case of a school of osteopathy, have control over or be closely affiliated with)</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>twelve</quotedText>” and inserting in lieu thereof “<quotedText>nine</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 780(c) is amended (1) by striking out “<quotedText>and</quotedText>” after “<quotedText>1979,</quotedText>”, and (2) by inserting after “<quotedText>1980</quotedText>” a comma and the following: “<quotedText>$10,000,000 for the fiscal year ending September 30, 1982, $10,500,000 for the fiscal year ending September 30, 1983, and $11,000,000 for the fiscal year ending September 30, 1984</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">area health education centers</heading><num value="2739"><inline class="smallCaps">Sec</inline>. 2739. </num><subsection class="inline"><num value="a">(a) </num><content>Section 781(c)(2) (42 U.S.C. 295g–1(c)(2)) is amended by adding a new sentence after the sentence at the end thereof to read as follows: “The Secretary may waive, for good cause shown, all or part of the requirement of paragraph (2) as it applies to a medical or osteopathic school participating in an area health education center program if another such school participating in the same program meets the requirement of that paragraph.”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 781(d)(2)(C) is amended by inserting “<quotedText>a rotating osteopathic internship or</quotedText>” after “<quotedText>conduct</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 781(d)(2)(E) is amended by striking out “<quotedText>support services</quotedText>” and inserting in lieu thereof “<quotedText>educational support services</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Section 781(g) is amended (1) by striking out “<quotedText>and</quotedText>” after “<quotedText>1979,</quotedText>”, and (2) by inserting a comma before the period and the following: “<quotedText>$21,000,000 for the fiscal year ending September 30, 1982, $22,500,000 for the fiscal year ending September 30, 1983, and $24,000,000 for the fiscal year ending September 30, 1984,</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><paragraph class="inline"><num value="1">(1) </num><content>Effective October 1, 1981, subsection (a) of section 781 is amended to read as follows: <quotedContent> <section class="firstIndent1 fontsize10"><num value="781">“<inline class="smallCaps">Sec</inline>. 781. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall enter into contracts with schools of medicine and osteopathy for the planning, development, and operation of area health education center programs.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>The Secretary shall enter into contracts with schools of medicine and osteopathy, which have previously received Federal financial assistance for an area health education center program under section 802 of the Health Professions Educational Assistance Act of 1976 in fiscal year 1979, or under this section to carry out under <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s295g–1">42 USC 295g–1 note</ref>.</p></sidenote>area health education center programs—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>projects to improve the distribution, supply, quality, utilization, and efficiency of health personnel in the health services delivery system;</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>projects to encourage the regionalization of educational responsibilities of the health professions schools; and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>projects designed to prepare, through preceptorships and other programs, individuals subject to a service obligation under the National Health Service Corps scholarship program to effec-<page identifier="/us/stat/95/922">95 STAT. 922</page>tively provide health services in health manpower shortage areas.”.</content></subparagraph> </paragraph> </subsection> </section> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Repeal.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s295g–1">42 USC 295g–1</ref>.</p></sidenote> <content class="inline">The first sentence of subsection (e) is repealed.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>Subsection (e) is amended by adding after paragraph (3) the following: “The Secretary may vest in entities which have received contracts under section 802 of the Health Professions Educational <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s295g–1/295f–4">42 USC 295g–1 note, 295f–4</ref>.</p></sidenote>Assistance Act of 1976, section 774 as in effect before October 1, 1977, or under subsection (a) of this section for area health education centers programs title to any property acquired on behalf of the United States by that entity (or furnished to that entity by the United States) under that contract.”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>The first sentence of subsection (f) is amended to read as follows: <sidenote><p class="indent0 firstIndent0 fontsize8">“Area health education center program.”</p></sidenote>“For purposes of this section, the term ‘area health education center program’ means a program which is organized as provided in subsection (b) and under which the participating medical and osteopathic schools and the area health education centers meet the requirements of subsections (c) and (d).”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="5">(5) </num><content>Subsection (g) of such section is amended by adding at the end the following: “<quotedText>The Secretary may obligate not more than 10 percent of the amount appropriated under this subsection for any fiscal year for contracts under subsection (a)(2).</quotedText>”.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">physician assistants</heading><num value="2740"><inline class="smallCaps">Sec</inline>. 2740. </num><subsection class="inline"><num value="a">(a) </num><content>Section 783(e) (42 U.S.C. 2958–3(e)) is amended (1) by striking out “<quotedText>and</quotedText>” after “<quotedText>1979,</quotedText>”, and (2) by inserting after “<quotedText>1980</quotedText>” a comma and the following: “<quotedText>$5,000,000 for the fiscal year ending September 30, 1982, $5,500,000 for the fiscal year ending September 30, 1983, and $6,000,000 for the fiscal year ending September 30, 1984</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 783(c) is amended by striking out “<quotedText>830</quotedText>” and inserting in lieu thereof “<quotedText>822</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><content>Subsection (a) of section 783 is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><content>The Secretary may make grants to and enter into contracts with public or nonprofit private schools of medicine and osteopathy and other public or nonprofit private entities to meet the costs of projects to plan, develop, and operate or maintain programs for the <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 913.</p></sidenote>training of physician assistants (as defined in section 701(7)).”.</content> </subsection> </quotedContent> </content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The heading for section 783 is amended to read as follows: <quotedContent> <heading class="centered smallCaps">“programs for physician assistants”.</heading> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Section 783 is amended by striking out subsection (d) and by redesignating subsection (e) as subsection (d).</content> </subsection> </section> <section> <heading class="centered smallCaps">general internal medicine and general pediatrics</heading><num value="2741"><inline class="smallCaps">Sec</inline>. 2741. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 784(a) (42 U.S.C. 295g–4(a)) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>, public or private nonprofit hospital, or any other public or private nonprofit entity</quotedText>” after “<quotedText>osteopathy</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>and</quotedText>” after the semicolon in paragraph (1);</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out the period at the end of paragraph (2) and inserting in lieu thereof a semicolon and “<quotedText>and</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by adding at the end thereof the following new paragraphs: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>to plan, develop, and operate a program for the training of physicians who plan to teach in a general internal medicine or general pediatrics training program; and</content></paragraph> <page identifier="/us/stat/95/923">95 STAT. 923</page> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>which provide financial assistance (in the form of traineeships and fellowships) to physicians who are participants in any such program and who plan to teach in a general internal medicine or general pediatrics training program.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 784(b) (42 U.S.C. 295g–4(b)) is amended (1) by striking out “<quotedText>and</quotedText>” after “<quotedText>1979,</quotedText>”, and (2) by inserting after “<quotedText>1980</quotedText>” a comma and the following: “<quotedText>$17,000,000 for the fiscal year ending September 30, 1982, $18,000,000 for the fiscal year ending September 30, 1983, and $20,000,000 for the fiscal year ending September 30, 1984</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">family medicine and general practice of dentistry</heading><num value="2742"><inline class="smallCaps">Sec</inline>. 2742. </num><subsection class="inline"><num value="a">(a) </num><chapeau>Section 786(d) (42 U.S.C. 295g–6(d)) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>and</quotedText>” after “<quotedText>1979,</quotedText>”;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by inserting after “<quotedText>1980</quotedText>” a comma and the following: “<quotedText>$32,000,000 for the fiscal year ending September 30, 1982, $34,000,000 for the fiscal year ending September 30, 1983, and $36,000,000 for the fiscal year ending September 30, 1984</quotedText>”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by adding at the end thereof the following new sentence: “In making grants and entering into contracts under this section with amounts appropriated under this subsection for the fiscal years ending September 30, 1982, September 30, 1983, and September 30, 1984, the Secretary shall give priority to grants and contracts for residency or internship programs under paragraphs (1) and (2) of subsection (a).”</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 786(a)(1) is amended by striking out “<quotedText>a continuing education program or</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 786 is amended by striking out subsection (c) and by redesignating subsection (d) as subsection (c).</content> </subsection> </section> <section> <heading class="centered smallCaps">assistance to individuals from disadvantaged backgrounds</heading><num value="2743"><inline class="smallCaps">Sec</inline>. 2743. </num><chapeau>Effective with respect to fiscal years beginning after September 30, 1981, section 787 (42 U.S.C. 295g–7) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>allied health,</quotedText>” after “<quotedText>pharmacy,</quotedText>” in subsection (a)(1), and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by amending subsection (b) to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><content>There are authorized to be appropriated for grants and <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote>contracts under subsection (a)(1), $20,000,000 for the fiscal year ending September 30, 1982, $21,500,000 for the fiscal year ending September 30, 1983, and $23,000,000 for the fiscal year ending September 30, 1984. Not less than 80 percent of the funds appropriated in any fiscal year shall be obligated for grants or contracts to institutions of higher education and not more than 5 percent of such funds may be obligated for grants and contracts having the primary purpose of informing individuals about the existence and general nature of health careers.”</content> </subsection> </quotedContent> </content></paragraph> </section> <section> <heading class="centered smallCaps">conversion and curriculum grants</heading><num value="2744"><inline class="smallCaps">Sec</inline>. 2744. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Subsections (a) and (b) of section 788 (42 U.S.C. 295g–8) are repealed.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Notwithstanding the amendment made by paragraph (1), a school which received a grant under section 788(a) of the Public Health Service Act for the fiscal year ending September 30, 1981, may <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s295g–8">42 USC 295g–8 note</ref>.</p></sidenote>continue to receive grants under such section (as in effect on the day before the date of the enactment of this Act) for each year such school is a new school as determined under such section. For purposes of <page identifier="/us/stat/95/924">95 STAT. 924</page>making such grants, there are authorized to be appropriated such sums as may be necessary.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Subsection (c) of such section is redesignated as subsection (a) and effective with respect to fiscal years beginning after September 30, 1981, is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="a">“(a) </num><paragraph class="inline"><num value="1">(1) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Grants.</p></sidenote> <content class="inline">The Secretary may make grants to schools which provide the first two years of education leading to the degree of doctor of medicine to assist the schools in accelerating the date they will become schools of medicine.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>The amount of a grant under paragraph (1) to a school shall be equal to the product of $25,000 and the number of full-time, third-year students which the Secretary estimates will enroll in the school in the school year beginning in the fiscal year in which such grant is made. Estimates by the Secretary under this paragraph of the number of full-time, third-year students to be enrolled in the school may be made on assurances provided by the school.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Eligibility requirements.</p></sidenote> <content class="inline">To be eligible to apply for a grant under paragraph (1), the applicant must be a public or nonprofit school providing the first two years of education leading to the degree of doctor of medicine and be accredited by a recognized body or bodies approved for such purpose by the Secretary of Education.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><chapeau>Subsection (d) of such section is redesignated as subsection (b) and is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by inserting “<quotedText>dentistry,</quotedText>” before “<quotedText>optometry</quotedText>” in paragraph (6),</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by striking out “<quotedText>and</quotedText>” at the end of paragraph (20),</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">(3) </num><content>by striking out the period at the end of paragraph (21) and inserting in lieu thereof a semicolon, and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">(4) </num><content>by adding at the end the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="22">“(22) </num><content>training of health professionals in the diagnosis, treatment, and prevention of diabetes and other severe chronic diseases and their complications;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="23">“(23) </num><content>dental education, the training of expanded function dental auxiliaries, and dental team practice; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="24">“(24) </num><content>training of allied health personnel.”.</content></paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Subsections (f) and (g) of such section are repealed.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Subsection (e) of such section is redesignated as subsection (f) and effective with respect to fiscal years beginning after September 30, 1981, is amended to read as follows: <quotedContent> <subsection class="indent0 fontsize10"><num value="f">“(f) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote> <content class="inline">For purposes of this section, there are authorized to be appropriated $6,000,000 for the fiscal year ending September 30, 1982; $6,500,000 for the fiscal year ending September 30, 1983; and $7,000,000 for the fiscal year ending September 30, 1984.”.</content> </subsection> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s295g–8">42 USC 295g–8</ref>.</p></sidenote> <content class="inline">Section 788 is amended by inserting after subsection (b) (as redesignated by subsection (c) of this section) the following new subsections: <quotedContent> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary may make grants to and enter into contracts with schools of medicine, osteopathy, dentistry, veterinary medicine, optometry, podiatry, pharmacy, or other appropriate public or nonprofit private entities to assist in meeting the costs of planning, establishing, and operating projects to provide support services to health professionals practicing in health manpower shortage areas <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254e">42 USC 254e</ref>.</p></sidenote>designated under section 332. Such support services may include continuing education, relief services, specialist referral services, and placement of students in a preceptorial relationship with the practitioner.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><chapeau>No grant may be made to or contract entered into with an entity under paragraph (1)—</chapeau> <page identifier="/us/stat/95/925">95 STAT. 925</page> <paragraph class="firstIndent1 fontsize10"><num value="A">“(A) </num><content>unless the entity agrees to provide support services to any physician, dentist, veterinarian, optometrist, podiatrist, or pharmacist (as appropriate to the category of health professionals proposed to be served by the grant or contract) who requests such services within the health manpower shortage area proposed to be served, including any member of the National Health Service Corps;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>to carry out activities required to be carried out under section 781; or <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s295g–1">42 USC 295g–1</ref>.</p></sidenote></content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>unless the amount of the award under this section is matched by a no less than equal amount from non-Federal sources.</content></paragraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>Not more than 15 percent of funds available to carry out this subsection may be used by the Secretary to fund eligible recipients to carry out research relating to the support needs of practitioners in health manpower shortage areas, nor shall more than 30 percent of such funds be used to provide continuing education.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><chapeau>The Secretary may make grants to and enter into contracts with schools of medicine or osteopathy or other appropriate public or nonprofit private entities to assist in meeting the costs of such schools or entities of providing projects to—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>plan, develop, and establish courses, or expand or strengthen instruction in geriatric medicine; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>establish new affiliations with nursing homes, chronic and acute disease hospitals, ambulatory care centers, and senior centers in order to provide students with clinical training in geriatric medicine.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><chapeau>The Secretary may make grants to and enter into contracts with schools of podiatry to assist in meeting the costs to such schools of providing projects to—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>recruit students who reside in areas having shortages of podiatric manpower, as determined by the Secretary; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>to operate clinical training programs at public or nonprofit entities located in such areas.”.</content></paragraph> </subsection> </quotedContent> </content> </subsection> </section> <section> <heading class="centered smallCaps">financial distress; advanced financial distress</heading><num value="2745"><inline class="smallCaps">Sec</inline>. 2745. </num><content>Title VI is amended by inserting after section 788 the following new sections: <quotedContent> <section> <heading class="centered smallCaps">“financial distress grants</heading><num value="788A">“<inline class="smallCaps">Sec</inline>. 788A. </num><subsection class="inline"><num value="a">(a) </num><chapeau>The Secretary may make grants to, and enter into <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s295g–8a">42 USC 295g–8a</ref>.</p></sidenote>contracts with, a school of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, podiatry, or public health that is in serious financial distress for the purposes of assisting such school to—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><subparagraph class="inline"><num value="A">(A) </num><content>meet the costs of operation if such school’s financial status threatens its continued operation; or</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>meet applicable accreditation requirements if such school has a special need to be assisted in meeting such requirements; and</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>carry out appropriate operational, managerial, and financial reforms.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>Any grant or contract under this section may be made upon such terms and conditions as the Secretary determines to be reasonable and necessary, including requirements that the school agree to—</chapeau> <page identifier="/us/stat/95/926">95 STAT. 926</page> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>disclose any financial information or data necessary to determine the sources or causes of such school’s financial distress;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>conduct a comprehensive cost analysis study in cooperation with the Secretary; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>carry out appropriate operational, managerial, and financial reforms including the securing of increased financial support from non-Federal sources.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>No school may receive a grant under this section if such school has previously received support for three or more years under this <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 923.</p></sidenote>section or under section 788(b) (as such section was in effect prior to October 1, 1981).”.</content> </subsection> </section> <section> <heading class="centered smallCaps">“advanced financial distress assistance</heading><num value="788B">“<inline class="smallCaps">Sec</inline>. 788B. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s295g–8b">42 USC 295g–8b</ref>.</p></sidenote> <content class="inline">The Secretary may enter into a multiyear contract with a school of medicine, osteopathy, dentistry, veterinary medicine, optometry, podiatry, or pharmacy to provide financial assistance to such school to meet incurred or prospective costs of operation if the Secretary determines that payment of such costs is essential to remove the school from serious and long-standing financial instability. To be eligible for a contract under this section, a school must have <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 925.</p><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 923.</p></sidenote>previously received financial support under section 788A or under section 788(b) (as such section was in effect prior to October 1, 1981) for a period of not less than three years.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><chapeau>No school may enter into a contract under this section unless—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>the school has submitted to the Secretary a plan providing for the school to achieve financial solvency within five years and has agreed to carry out such plan;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>such plan includes securing increased financial support from non-Federal sources;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>such plan has been reviewed by a panel selected by the Secretary and consisting of three experts in the field of financial management who are not directly affiliated with the school or the Federal Government; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><content>the Secretary determines, after consultation with such panel, that such plan has a reasonable likelihood of achieving success.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num><content>The panel described in subsection (b)(3) shall be appointed by the Secretary within thirty days after the date of receipt of the school’s plan and shall be dissolved no later than forty-five days after the panel’s recommendation has been transmitted to the Secretary. Members of the panel shall be entitled to receive the daily equivalent of the annual rate of basic pay in effect for grade GS–18 of the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t5/s5332">5 USC 5332 note</ref>.</p></sidenote>General Schedule for each day (including traveltime) during which they perform duties.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">“(d) </num><chapeau>Any contract under this section may be entered into upon such terms and conditions as the Secretary determines to be reasonable and necessary, including requirements that the school agree to—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>disclose any financial information or data necessary to determine the sources or causes of such school’s financial distress;</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>conduct a comprehensive cost analysis study in cooperation with the Secretary; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="3">“(3) </num><content>carry out appropriate operational, managerial, and financial reforms including the securing of increased financial support from non-Federal sources.</content></paragraph> </subsection> <page identifier="/us/stat/95/927">95 STAT. 927</page> <subsection class="indent0 fontsize10"><num value="e">“(e) </num><content>Pursuant to the approved plan in subsection (b), funds received under this section may be used to pay short-term or long-term debts of such school, meet accreditation requirements, or meet other costs, payment of which is essential to the continued operation of the institution or to permit such institution to achieve financial solvency within the period of the contract.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">“(f) </num><content>No school may receive support under this section for more than five years. No contract may be entered into under this section, or continued, in a fiscal year in which the school receives support under section 788A. <sidenote><p class="indent0 firstIndent0 fontsize8"><i>Ante</i>, p. 925.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="g">“(g) </num><content>An application for a contract under this section shall contain or be supported by assurances that the applicant will, in carrying out its function as a school of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, or podiatry, as the case may be, expend during the fiscal year for which such contract is sought, an amount of funds from non-Federal sources (other than funds for construction and any contract under this section) at least as great as the average annual amount of funds from non-Federal sources expended by such applicant in the preceding two years.</content> </subsection> <subsection class="indent0 fontsize10"><num value="h">“(h) </num><content>For the purpose of entering into contracts to carry out this section and section 788A, there are authorized to be appropriated $10,000,000 for the fiscal year ending September 30, 1982, and each of the succeeding two fiscal years. Of the amounts appropriated under the preceding sentence, not more than $2,000,000 shall be available under section 788A. Funds provided under this section shall remain available until expended without regard to any fiscal year limitation.”.</content> </subsection> </section> </quotedContent> </content> </section> <section> <heading class="centered smallCaps">public health and health administration</heading><num value="2746"><inline class="smallCaps">Sec</inline>. 2746. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 770(e)(4) (42 U.S.C. 295f(e)(4)) is amended by striking out “<quotedText>and</quotedText>” after “<quotedText>1979,</quotedText>” and by inserting after “<quotedText>1980,</quotedText>” the following: “<quotedText>$6,500,000 for the fiscal year ending September 30, 1982, $7,000,000 for the fiscal year ending September 30, 1983, and $7,500,000 for the fiscal year ending September 30, 1984,</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 771(e) (42 U.S.C. 295g(e)) is amended by striking out “<quotedText>, in <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s295f–1">42 USC 295f–1</ref>.</p></sidenote>addition to the requirements of subsection (a),</quotedText>” and by adding at the end thereof the following sentence: “The requirements of subsection (a)(1) shall not apply to schools of public health.”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 791(d) (42 U.S.C. 295h(d)) is amended by striking out “<quotedText>and</quotedText>” after “<quotedText>1979,</quotedText>” and by inserting before the period the following: “<quotedText>, $1,500,000 for the fiscal year ending September 30, 1982, $1,750,000 for the fiscal year ending September 30, 1983, and $2,000,000 for the fiscal year ending September 30, 1984</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 749 (42 U.S.C. 249s) is inserted after section 791, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s294s/295h–1a">42 USC 294s, 295h–1a</ref>.</p></sidenote>redesignated as section 791A, and amended in subsection (c) (A) by striking out “<quotedText>and</quotedText>” after “<quotedText>1979;</quotedText>”, and (B) by inserting before the period a semicolon and the following: “<quotedText>and $500,000 for the fiscal year ending September 30, 1982, and the next two fiscal years</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 792 (42 U.S.C. 295h–1) is repealed. <sidenote><p class="indent0 firstIndent0 fontsize8">Repeal.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s295h–1">42 USC 295h–1</ref>.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s294r/295h–1b">42 USC 294r, 295h–1b</ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Section 748 (42 U.S.C. 294r) is inserted after section 791A, redesignated as section 792, and amended (1) by striking out “<quotedText>749</quotedText>” in subsection (a)(2) and inserting in lieu thereof “<quotedText>791A</quotedText>”, (2) by striking out “<quotedText>postbaccalaureate</quotedText>” in subsection (b)(3)(A)(i) and inserting in lieu thereof “<quotedText>baccalaureate</quotedText>”, (3) by striking out “<quotedText>and</quotedText>” after “<quotedText>1979;</quotedText>” in subsection (c), and (4) by inserting before the period in such subsection a semicolon and the following: “$3,000,000 for the fiscal year ending September 30, 1982; $3,500,000 for the fiscal year ending <page identifier="/us/stat/95/928">95 STAT. 928</page>September 30, 1983; and $4,000,000 for the fiscal year ending September 30, 1984”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="e">(e) </num><content>Part C of title VII is amended by striking out “<quotedText>Subpart III—Traineeships for Students in Schools, Public Health and Other Graduate Programs</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="f">(f) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s295h–2">42 USC 295h–2</ref>.</p></sidenote> <content class="inline">Section 793 (42 U.S.C. 295h–3) entitled “statistics and annual report” is redesignated as section 794 and the following new section is inserted after section 792: <quotedContent> <section> <heading class="centered smallCaps">“training in preventive medicine</heading><num value="793">“<inline class="smallCaps">Sec</inline>. 793. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Grants.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s295h–1c">42 USC 295h–1c</ref>.</p></sidenote> <chapeau class="inline">The Secretary may make grants to and enter into contracts with schools of medicine, osteopathy, and public health to meet the costs of projects—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">“(1) </num><content>to plan and develop new residency training programs and to maintain or improve existing residency training programs in preventive medicine; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num><content>to provide financial assistance to residency trainees enrolled in such programs.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">“(b) </num><paragraph class="inline"><num value="1">(1) </num><content>The amount of any grant under subsection (a) shall be determined by the Secretary. No grant may be made under subsection (a) unless an application therefor is submitted to and approved by the Secretary. Such an application shall be in such form, submitted in such manner, and contain such information, as the Secretary shall by regulation prescribe.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">“(2) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Eligibility.</p></sidenote> <content class="inline">To be eligible for a grant under subsection (a), the applicant must demonstrate to the Secretary that it has or will have available full-time faculty members with training and experience in the fields of preventive medicine and support from other faculty members trained in public health and other relevant specialties and disciplines.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">“(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Appropriation authorization.</p></sidenote> <content class="inline">For the purpose of grants under subsection (a), there are authorized to be appropriated $1,000,000 for the fiscal year ending September 30, 1982, and $1,500,000 for the fiscal year ending September 30, 1983, and $2,000,000 for the fiscal year ending September 30, 1984.”.</content> </subsection> </section> </quotedContent> </content> </subsection> </section> <section> <heading class="centered smallCaps">physician study</heading><num value="2747"><inline class="smallCaps">Sec</inline>. 2747. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s292h">42 USC 292h note</ref>.</p></sidenote> <chapeau class="inline">The Secretary of Health and Human Services shall arrange, in accordance with subsection (c), for a study to determine—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><chapeau>the implications of the increase in the supply of physicians and the projected distribution of the increased number of physicians in the various medical specialties for—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the cost of health care,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>the distribution of all physicians by geographic area, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>the quality of health care; and</content></subparagraph> </paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><chapeau>the implications of the patterns of payments of physicians by Federal and other public and private third-party payers (including differences in the levels of payments to physicians in various medical specialties and geographic areas and differences in the amount of payments which support post-graduate training programs in such specialties) for—</chapeau> <subparagraph class="firstIndent1 fontsize10"><num value="A">(A) </num><content>the distribution of physicians in the various medical specialties,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">(B) </num><content>the cost of health care,</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">(C) </num><content>the distribution of physicians by geographic area, and</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">(D) </num><content>the quality of health care.</content></subparagraph> </paragraph> </subsection> <page identifier="/us/stat/95/929">95 STAT. 929</page> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>An interim report on such study shall be completed not later <sidenote><p class="indent0 firstIndent0 fontsize8">Report.</p></sidenote>than March 30, 1983. Such interim report shall include an analysis of the most effective means of providing financial assistance to graduate medical education in the United States in general internal medicine, general pediatrics, and family medicine, with particular attention to identifying ways of reducing or eliminating the need for special Federal financial assistance for such programs. A final report of such study shall be completed not later than September 30, 1984. Both reports shall be submitted to the Secretary, the Committee on Labor <sidenote><p class="indent0 firstIndent0 fontsize8">Reports; submittal to congressional committee.</p></sidenote>and Human Resources of the Senate, and the Committee on Energy and Commerce of the House of Representatives.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><paragraph class="inline"><num value="1">(1) </num><content>The Secretary shall enter into a contract with the Institute of Medicine of the National Academy of Sciences to conduct the study described in subsection (a). If the Institute of Medicine is unwilling to <sidenote><p class="indent0 firstIndent0 fontsize8">Study alternate, report.</p></sidenote>enter into a contract to conduct such study, then the Secretary shall enter into a contract with another appropriate nonprofit private entity to conduct such study and prepare and submit the reports thereon as provided in subsection (b).</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The authority of the Secretary to enter into a contract under paragraph (1) shall be effective for any fiscal year only to such extent or in such amounts as are provided in advance by appropriation Acts.</content></paragraph> </subsection> </section> </chapter> <chapter><num value="3">CHAPTER 3—</num><heading>NURSE TRAINING</heading> <section> <heading class="centered smallCaps">repeal of enrollment increase requirement</heading><num value="2751"><inline class="smallCaps">Sec</inline>. 2751. </num><content>The Secretary may waive the enforcement of assurances <sidenote><p class="indent0 firstIndent0 fontsize8">Waiver.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s296a">42 USC 296a note</ref>.</p></sidenote>given by any school under section 802(b)(2)(D) (42 U.S.C. 296a(b)(2)(D)).</content> </section> <section> <heading class="centered smallCaps">financial distress grants</heading><num value="2752"><inline class="smallCaps">Sec</inline>. 2752. </num><content>Section 815(c) (42 U.S.C. 296j(c)) is amended by striking out “<quotedText>and</quotedText>” after “<quotedText>1977,</quotedText>” and by inserting before the period a comma and “<quotedText>$3,000,000 for the fiscal year ending September 30, 1982, $2,000,000 for the fiscal year ending September 30, 1983, and $1,000,000 for the fiscal year ending September 30, 1984</quotedText>”.</content> </section> <section> <heading class="centered smallCaps">special projects</heading><num value="2753"><inline class="smallCaps">Sec</inline>. 2753. </num><subsection class="inline"><num value="a">(a) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 820(a) (42 U.S.C. 296k(a)) is amended (A) by striking out paragraphs (1), (2), and (8), (B) by inserting “<quotedText>or</quotedText>” at the end of paragraph (6), (C) by striking out the semicolon and “<quotedText>or</quotedText>” at the end of paragraph (7) and inserting in lieu thereof a period, and (D) by redesignating paragraphs (3), (4), (5), (6), and (7) as paragraphs (1), (2), (3), (4), and (5), respectively.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Notwithstanding the amendment made by paragraph (1) of this <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s296k">42 USC 296k note</ref>.</p></sidenote>subsection and paragraph (2) of subsection (b), an entity which received a grant or contract under section 820(a) of the Public Health Service Act for the fiscal year ending September 30, 1981, for a project described in paragraph (1), (2), or (8) of such section (as in effect when it received the grant or contract) may receive one additional grant or contract under such section for such project.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><chapeau>Section 820(d) is amended— <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s296k">42 USC 296k</ref>.</p></sidenote></chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>and</quotedText>” after “<quotedText>1978,</quotedText>”, and by inserting after “<quotedText>1980</quotedText>” a comma and the following: “<quotedText>$10,000,000 for the fiscal year ending September 30, 1982, $10,500,000 for the fiscal year ending September 30, 1983, and $11,000,000 for the fiscal year ending September 30, 1984</quotedText>”; and</content></paragraph> <page identifier="/us/stat/95/930">95 STAT. 930</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by amending the last sentence to read as follows: “Of the funds appropriated under this subsection for any fiscal year beginning after September 30, 1981, not less than 20 percent of the funds shall be obligated for payments under grants and contracts for special projects described in subsection (a)(1), not less than 20 percent of the funds shall be obligated for payments under grants and contracts for special projects described in subsection (a)(4), and not less than 10 percent of the funds shall be obligated for payments under grants and contracts for special projects described in subsection (a)(5).”.</content></paragraph> </subsection> </section> <section> <heading class="centered smallCaps">advanced nurse training</heading><num value="2754"><inline class="smallCaps">Sec</inline>. 2754. </num><subsection class="inline"><num value="a">(a) </num> <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s296l">42 USC 296<i>l</i></ref>.</p></sidenote> <content class="inline">Section 821(a)(1) (42 U.S.C. 2961(a)(1)) is amended by striking out “<quotedText>to each</quotedText>” and inserting in lieu thereof “<quotedText>to teach</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 821(b) is amended (1) by striking out “<quotedText>and</quotedText>” after “<quotedText>1978,</quotedText>”, and (2) by inserting after “<quotedText>1980</quotedText>” a comma and the following: “<quotedText>$14,000,000 for the fiscal year ending September 30, 1982, $15,000,000 for the fiscal year ending September 30, 1983, and $16,000,000 for the fiscal year ending September 30, 1984</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 821(a) is amended (1) by striking out “<quotedText>(1)</quotedText>” after “<quotedText>(a)</quotedText>”, and (2) by redesignating subparagraphs (A), (B), and (C) as paragraphs (1), (2), and (3), respectively.</content> </subsection> </section> <section> <heading class="centered smallCaps">nurse practitioner programs</heading><num value="2755"><inline class="smallCaps">Sec</inline>. 2755. </num><subsection class="inline"><num value="a">(a) </num><content>Section 822(b)(1) (42 U.S.C. 296m(b)(1)) is amended by striking out “<quotedText>who are residents of a health manpower shortage area <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s254e">42 USC 254e</ref>.</p></sidenote>(designated under section 332)</quotedText>” and inserting in lieu thereof a period and the following: “<quotedText>In considering applications for a grant or contract under this subsection, the Secretary shall give special consideration to applications for traineeships to train individuals who are residents of health manpower shortage areas designated under section 332.</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 822(b)(3) is amended by inserting before the period the following: “<quotedText>for a period equal to one month for each month for which the recipient receives such a traineeship</quotedText>”.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 822(b) is amended by adding after paragraph (3) the following: <quotedContent> <paragraph class="firstIndent1 fontsize10"><num value="4">“(4) </num><subparagraph class="inline"><num value="A">(A) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Repayments.</p></sidenote> <content class="inline">If, for any reason, an individual who received a traineeship under paragraph (1) fails to complete a service obligation under paragraph (3), such individual shall be liable for the payment of an amount equal to the cost of tuition and other education expenses and other payments paid under the traineeship, plus interest at the maximum legal prevailing rate.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="B">“(B) </num><content>When an individual who received a traineeship is academically dismissed or voluntarily terminates academic training, such individual shall be liable for repayment to the Government for an amount equal to the cost of tuition and other educational expenses paid to or for such individual from Federal funds plus any other payments which were received under the traineeship.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="C">“(C) </num><content>Any amount which the United States is entitled to recover under subparagraph (A) or (B) shall, within the three-year period beginning on the date the United States becomes entitled to recover such amount, be paid to the United States.</content></subparagraph> <subparagraph class="firstIndent1 fontsize10"><num value="D">“(D) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Waiver or suspension.</p></sidenote> <content class="inline">The Secretary shall by regulation provide for the waiver or suspension of any obligation under subparagraph (A) or (B) applicable to any individual whenever compliance by such individual is impossible or would involve extreme hardship to such individual and if <page identifier="/us/stat/95/931">95 STAT. 931</page>enforcement of such obligation with respect to any individual would be against equity and good conscience.”.</content></subparagraph> </paragraph> </quotedContent> </content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 822(e) is amended (1) by striking out “<quotedText>and</quotedText>” after “<quotedText>1978,</quotedText>”, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s296m">42 USC 296m</ref>.</p></sidenote>and (2) by inserting after “<quotedText>1980</quotedText>” a comma and the following: “<quotedText>$12,000,000 for the fiscal year ending September 30, 1982, $13,000,000 for the fiscal year ending September 30, 1983, and $14,000,000 for the fiscal year ending September 30, 1984</quotedText>”.</content> </subsection> </section> <section> <heading class="centered smallCaps">traineeships</heading><num value="2756"><inline class="smallCaps">Sec</inline>. 2756. </num><chapeau>Section 830(b) (42 U.S.C. 297(b)) is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"><num value="1">(1) </num><content>by striking out “<quotedText>and</quotedText>” after “<quotedText>1978,</quotedText>”, and by inserting after “<quotedText>1980</quotedText>” a comma and the following. “$10,000,000 for the fiscal year ending September 30, 1982, $10,500,000 for the fiscal year ending September 30, 1983, and $11,000,000 for the fiscal year ending September 30, 1984”; and</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>by adding at the end the following: “<quotedText>Not less than 25 percent of the funds appropriated under this subsection for any fiscal year shall be obligated for traineeships described in subsection (a)(1)(A), except that if the obligation of that amount of the funds appropriated under this subsection will prevent the continuation of a traineeship to an individual who received a traineeship under subsection (a) for the fiscal year ending September 30, 1981, the Secretary shall reduce the amount to be obligated for traineeships described in subsection (a)(1)(A) by such amount as may be necessary for the continuation of traineeships first awarded in such fiscal year. Priority in the award of traineeships under subsection (a)(1)(C) shall go to nurse midwife trainees.</quotedText>”.</content></paragraph> </section> <section> <heading class="centered smallCaps">student loans</heading><num value="2757"><inline class="smallCaps">Sec</inline>. 2757. </num><subsection class="inline"><num value="a">(a) </num><content>Section 835(b)(4) (42 U.S.C. 297a(b)(4)) is amended by striking out “<quotedText>, and that while the agreement remains in effect no such student who has attended such school before October 1, 1980, shall receive a loan from a loan fund established under section 204 of the National Defense Education Act of 1958</quotedText>”. <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t20/s424">20 USC 424</ref>.</p></sidenote></content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 836(b)(5) (42 U.S.C. 297b(b)(5)) is amended by striking out “<quotedText>3</quotedText>” and inserting in lieu thereof “<quotedText>6</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 837 (42 U.S.C. 297c) is amended (1) by striking out “<quotedText>and</quotedText>” after “<quotedText>1978,</quotedText>”, (2) by inserting after “<quotedText>September 30, 1980</quotedText>” a comma and the following: 114,000,000 for the fiscal year ending September 30, 1982, $16,000,000 for the fiscal year ending September 30, 1983, and $18,000,000 for the fiscal year ending September 30, 1984”, (3) by striking out “<quotedText>1981</quotedText>” in the second sentence and inserting in lieu thereof “<quotedText>1985</quotedText>”, (4) by striking out “<quotedText>October 1, 1980</quotedText>” and inserting in lieu thereof “<quotedText>October 1, 1984</quotedText>”, and (5) by adding at the end the following: “<quotedText>Of the amount appropriated under the first sentence for the fiscal year ending September 30, 1982, and the two succeeding fiscal years, not less than $1,000,000 shall be obligated in each such fiscal year for loans from student loan funds established under section 835 to individuals who are qualified to receive such loans and who, on the date they receive the loan, have not been employed on a full-time basis or been enrolled in any educational institution on a full-time basis for at least seven years. A loan to such an individual may not exceed $500 for any academic year.</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="d">(d) </num><content>Section 839 (42 U.S.C. 297e) is amended by striking out “<quotedText>1983</quotedText>” each place it occurs and inserting in lieu thereof “<quotedText>1987</quotedText>”.</content> </subsection> </section> <page identifier="/us/stat/95/932">95 STAT. 932</page> <section> <heading class="centered smallCaps">scholarships</heading><num value="2758"><inline class="smallCaps">Sec</inline>. 2758. </num><subsection class="inline"><num value="a">(a) </num><content>Section 845(b) (42 U.S.C. 297j(b)) is amended by striking out “<quotedText>and for each of the two succeeding fiscal years</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><content>Section 845(c)(1)(B) is amended by striking out “<quotedText>, and for each of the two succeeding fiscal years</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Repeal.</p></sidenote> <content class="inline">Section 846 (42 U.S.C. 297k) is repealed.</content> </subsection> </section> <section> <heading class="centered smallCaps">general provisions</heading><num value="2759"><inline class="smallCaps">Sec</inline>. 2759. </num><subsection class="inline"><num value="a">(a) </num><content>Section 851(a) (42 U.S.C. 298(a)) is amended by striking out “<quotedText>and the Commissioner of Education, both of whom shall be ex officio members</quotedText>” and inserting in lieu thereof “<quotedText>and an ex officio member</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 853(2) (42 U.S.C. 298b(2)) is amended by inserting “<quotedText>in a State</quotedText>” before the period.</content></paragraph> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>Section 853(6) is amended by striking out “<quotedText>Commissioner</quotedText>” each place it appears and inserting in lieu thereof “<quotedText>Secretary</quotedText>”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>Section 856 (42 U.S.C. 298b–3) is amended by striking out “<quotedText>Health, Education, and Welfare</quotedText>” and inserting in lieu thereof “<quotedText>Health and Human Services</quotedText>”.</content> </subsection> </section> </chapter> <chapter><num value="4">CHAPTER 4—</num><heading>SURGEON GENERAL</heading> <section> <heading class="centered smallCaps">surgeon general</heading><num value="2765"><inline class="smallCaps">Sec</inline>. 2765. </num><subsection class="inline"><num value="a">(a) </num><content>The first sentence of section 211(a)(1) of the Public Health Service Act (42 U.S.C. 212(a)(1)) is amended (1) by striking out “<quotedText>shall be retired on</quotedText>” and inserting in lieu thereof “<quotedText>shall, if he applies for retirement, be retired on or after</quotedText>” and (2) by amending the last sentence to read as follows: “This paragraph does not permit or require the involuntary retirement of any individual because of the age of the individual.”.</content> </subsection> <subsection class="indent0 fontsize10"><num value="b">(b) </num><paragraph class="inline"><num value="1">(1) </num><content>Section 204 of the Public Health Service Act (42 U.S.C. 205) is amended by striking out the second sentence and inserting in lieu <sidenote><p class="indent0 firstIndent0 fontsize8">Appointment.</p></sidenote>thereof the following: “<quotedText>The Surgeon General shall be appointed from individuals who (1) are members of the Regular Corps, and (2) have specialized training or significant experience in public health programs.</quotedText>”.</content></paragraph> <page identifier="/us/stat/95/933">95 STAT. 933</page> <paragraph class="firstIndent1 fontsize10"><num value="2">(2) </num><content>The third sentence of such section 204 is amended to read as <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t42/s205">42 USC 205</ref>.</p></sidenote>follows: “Upon the expiration of such term, the Surgeon General, unless reappointed, shall revert to the grade and number in the Regular or Reserve Corps that he would have occupied had he not served as Surgeon General.”.</content></paragraph> </subsection> <subsection class="indent0 fontsize10"><num value="c">(c) </num><content>The first sentence of section 207(b)(1) of the Public Health Service Act (42 U.S.C. 209(b)(1)) is amended by inserting “<quotedText>(other than an appointment under section 204)</quotedText>” after “<quotedText>no such appointment</quotedText>”.</content> </subsection> </section> </chapter> Approved August 13, 1981.
LEGISLATIVE HISTORY—H.R. 3982 (S. 1377): HOUSE REPORTS: No. 97–158, vols. I–III (Comm. on the Budget) and No. 97–208, bks. 1, 2 (Comm. of Conference). SENATE REPORT No. 97–139 accompanying S. 1377 (Comm. on the Budget). CONGRESSIONAL RECORD, Vol. 127 (1981):

June 22–25, S. 1377 considered and passed Senate.

June 25, 26, considered and passed House.

July 13, considered and passed Senate, amended, in lieu of S. 1377.

July 31, House and Senate agreed to conference report.

 Public Law 97–36: Authorizing and requesting the President to issue a proclamation designating the period from October 4, 1981, through October 10, 1981, as “National Schoolbus Safety Week”. Public Law 36 Public Law 97–36 95 Stat. 934 1981-08-14 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 934 Public Law 97–36 97th Congress
Joint Resolution Authorizing and requesting the President to issue a proclamation designating the period from October 4, 1981, through October 10, 1981, as “National Schoolbus Safety Week”.

Aug. 14, 1981

[H.J. Res. 141]

 Whereas twenty-two million students are transported by schoolbus to and from school each day; Whereas the safety of these students deserves the highest priority; and Whereas a national program is underway to call public attention to the importance of schoolbus safety during the week of October 4, 1981, through October 10, 1981: Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,

National Schoolbus Safety Week.

Designation authorization.
That the President is authorized and requested to issue a proclamation designating the period from October 4, 1981, through October 10, 1981, as “National Schoolbus Safety Week” and calling upon the people of the United States and interested groups and organizations to observe such week with appropriate ceremonies and activities.
Approved August 14, 1981.
LEGISLATIVE HISTORY—H.J. Res. 141: CONGRESSIONAL RECORD, Vol. 127 (1981):

July 15, considered and passed House.

July 31, considered and passed Senate.

 Public Law 97–37: To amend title 38, United States Code, to improve certain benefit programs of the Veterans’ Administration for veterans who are former prisoners of war, and for other purposes. Public Law 37 Public Law 97–37 95 Stat. 935 1981-08-14 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 935 Public Law 97–37 97th Congress
An Act To amend title 38, United States Code, to improve certain benefit programs of the Veterans’ Administration for veterans who are former prisoners of war, and for other purposes.

Aug. 14, 1981

[H.R. 1100]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That (a) this Act

Former Prisoner of War Benefits Act of 1981.

38 USC 101 note.

 may be cited as the “Former Prisoner of War Benefits Act of 1981”. (b) Whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of title 38, United States Code.
Sec. 2. (a) Chapter 3 is amended by inserting after section 220 the following new section:
Ҥ 221. Advisory Committee on Former Prisoners of War

38 USC 221.

 “(a)(1) The Administrator shall establish an advisory committee to

Establishment.

 be known as the Advisory Committee on Former Prisoners of War (hereinafter in this section referred to as the ‘Committee’). “(2) The members of the Committee shall be appointed by the

Membership.

 Administrator from the general public and shall include— “(A) appropriate representatives of veterans who are former prisoners of war; “(B) individuals who are recognized authorities in fields pertinent to disabilities prevalent among former prisoners of war, including authorities in epidemiology, mental health, nutrition, geriatrics, and internal medicine; and “(C) appropriate representatives of disabled veterans. The Committee shall also include, as ex officio members, the Chief Medical Director and the Chief Benefits Director, or their designees. “(3) The Administrator shall determine the number, terms of service, and pay and allowances of members of the Committee appointed by the Administrator, except that the term of service of any such member may not exceed three years. “(b) The Administrator shall, on a regular basis, consult with and seek the advice of the Committee with respect to the administration of benefits under this title for veterans who are former prisoners of war and the needs of such veterans with respect to compensation, health care, and rehabilitation. “(c) Not later than July 1, 1983, and not later than July 1 of each

Report.

 second year thereafter, the Committee shall submit to the Administrator a report on the programs and activities of the Veterans’ Administration that pertain to veterans who are former prisoners of war. The Committee shall include in each such report an assessment of the needs of such veterans with respect to compensation, health care, and rehabilitation, a review of the programs and activities of the Veterans’ Administration designed to meet such needs, and such recommendations (including recommendations for administrative and legislative action) as the Committee considers to be appropriate. The Administrator shall immediately submit such report to the

Report to Congress.

 95 STAT. 936Congress with any comments concerning the report that the Administrator considers appropriate. The Committee may also submit to the Administrator such other reports and recommendations as the Committee

Report summary.

considers appropriate. The Administrator shall submit with each annual report submitted to the Congress pursuant to section 214

38 USC 214.

of this title a summary of all reports and recommendations of the Committee submitted to the Administrator since the previous annual report of the Administrator submitted to the Congress pursuant to such section.”.
(b) The table of sections at the beginning of such chapter isamended by inserting after the item relating to section 220 thefollowing new item: “221.
Sec. 3. (a)

38 USC 101.

 Section 101 is amended by adding at the end the following new paragraph: “(32)

“Former prisoner of war.”

 The term ‘former prisoner of war’ means a person who, while serving in the active military, naval or air service, was forcibly detained or interned in line of duty— “(A) by an enemy government or its agents, or a hostile force, during a period of war; or “(B) by a foreign government or its agents, or a hostile force, during a period other than a period of war in which such person was held under circumstances which the Administrator finds to have been comparable to the circumstances under which persons have generally been forcibly detained or interned by enemy governments during periods of war.”. (b)

38 USC 612.

 Clause (7) of section 612(b) is amended to read as follows: “(7) from which a veteran who is a former prisoner of war and who was detained or interned for a period of not less than six months is suffering; or”.
Sec. 4. (a)

38 USC 312.

 Section 312 is amended— (1) by striking out subsection (b); and (2) by redesignating subsection (c) as subsection (b) and amending such subsection to read as follows: “(b) For the purposes of section 310 of this title and subject to the provisions of section 313 of this title, in the case of a veteran who is a former prisoner of war and who was detained or interned for not less than thirty days, the disease of— “(1) avitaminosis, “(2) beriberi (including beriberi heart disease), “(3) chronic dysentery, “(4) helminthiasis, “(5) malnutrition (including optic atrophy associated with malnutrition), “(6) pellagra, “(7) any other nutritional deficiency, “(8) psychosis, or “(9) any of the anxiety states, which became manifest to a degree of 10 per centum or more after active military, naval, or air service shall be considered to have been incurred in or aggravated by such service, notwithstanding that there is no record of such disease during the period of service.”. (b)

Effective date.

38 USC 312 note.

38 USC 610.

 The amendments made by subsection (a) shall take effect on October 1, 1981.
Sec. 5. (a) Section 610(a) is amended— (1) by striking out "and" at the end of clause (3); (2) by redesignating clause (4) as clause (5); and (3) by inserting after clause (3) the following new clause:95 STAT. 937 “(4) a veteran who is a former prisoner of war; and”. (b) Section 612(f) is amended—

38 USC 612.

 (1) by striking out “and” at the end of clause (1); (2) by striking out the period at the end of clause (2) and inserting in lieu thereof a semicolon and “and”; and (3) by inserting after clause (2) the following new clause: “(3) to any veteran who is a former prisoner of war.”. (c) Section 612(i) is amended— (1) by redesignating clause (4) as clause (5); and (2) by inserting after clause (3) the following new clause: “(4) To any veteran who is a former prisoner of war.”. (d) The amendments made by this section shall take effect on

Effective date.

38 USC 610 note.

 October 1, 1981.
Sec. 6. (a) Not later than ninety days after the date of the

Information to former war prisoners.

38 USC 301 note.

 enactment of this Act and at appropriate times thereafter, the Administrator shall, to the maximum extent feasible and in order to carry out the requirements of the veterans outreach services program under subchapter IV of chapter 3 of title 38, United States Code, seek

38 USC 240.

 out former prisoners of war and provide them with information regarding applicable changes in law, regulations, policies, guidelines, or other directives affecting the benefits and services to which former prisoners of war are entitled under such title by virtue of the amendments made by this Act. (b)(1) The Administrator shall, for not less than the three-year

Centralized record.

 period beginning ninety days after the date of the enactment of this Act, maintain a centralized record showing all claims for benefits under chapter 11 of such title that are submitted by former prisoners

38 USC 301 et seq.

 of war and the disposition of such claims. (2) Not later than ninety days after the end of the three-year period

Report to congressional committees.

 described in paragraph (1), the Administrator shall, after consulting with and receiving the views of the Advisory Committee on Former Prisoners of War required to be established pursuant to section 221 of such title, submit a report on the results of the disposition of claims described in such paragraph, together with any comments or recommendations that the Administrator may have, to the appropriate committees of Congress. The Administrator may also submit to such committees interim reports on such results. (c) For the purposes of this section, the term “former prisoner of war” has the meaning given such term in paragraph (32) of section 101 of title 38, United States Code (as added by section 3(a) of this Act).
Approved August 14, 1981.
LEGISLATIVE HISTORY—H.R. 1100 (S. 468): HOUSE REPORT No. 97–28 (Comm. on Veterans’ Affairs). SENATE REPORT No. 97–88 accompanying S. 468 (Comm. on Veterans’ Affairs). CONGRESSIONAL RECORD, Vol. 127 (1981):

June 1, 2, considered and passed House.

June 4, considered and passed Senate, amended, in lieu of S. 468.

July 30, House agreed to Senate amendments with amendments; Senate concurred in House amendments.

 Public Law 97–38: To enable the Secretary of the Interior to erect permanent improvements on land acquired for the Confederated Tribes of Siletz Indians of Oregon. Public Law 38 Public Law 97–38 95 Stat. 938 1981-08-14 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 938 Public Law 97–38 97th Congress
An Act To enable the Secretary of the Interior to erect permanent improvements on land acquired for the Confederated Tribes of Siletz Indians of Oregon.

Aug. 14, 1981

[S. 547]

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

Confederated Tribes of Siletz Indians of Oregon.

Permanent land improvements.

25 USC 711e note.
That, notwithstanding any other provision of law or regulation, the Attorney General shall approve any deed or other instrument which— (1) conveys to the United States the land described in section 2 of the Act entitled “An Act to establish a reservation for the Confederated Tribes of Siletz Indians of Oregon”, approved September 4, 1980 (94 Stat. 1073), and (2) incorporates by reference the terms of the agreement entered into on September 18, 1980, by the city of Siletz, Oregon, the Confederated Tribes of Siletz Indians of Oregon, and the United States of America. The Secretary of the Interior or the Confederated Tribes of Siletz Indians of Oregon may erect permanent improvements, improvements of a substantial value, or any other improvements authorized by law on such land after such land is conveyed to the United States.
Approved August 14, 1981.
LEGISLATIVE HISTORY—S. 547 (H.R. 2015): HOUSE REPORT No. 97–191 accompanying H.R. 2015 (Comm. on Interior and Insular Affairs). SENATE REPORT No. 97–108 (Comm. on Indian Affairs). CONGRESSIONAL RECORD, Vol. 127 (1981):

May 21, considered and passed Senate.

Aug. 4, H.R. 2015 considered and passed House; proceedings vacated, S. 547 passed in lieu.

 Public Law 97–39: To authorize supplemental appropriations for fiscal year 1981 for the Armed Forces for procurement of aircraft, missiles, naval vessels, and tracked combat vehicles and for research, development, test, and evaluation, to increase the authorized personnel end strengths for military and civilian personnel of the Department of Defense for such fiscal year, to authorize supplemental appropriations for such fiscal year for construction at certain military installations, and for other purposes. Public Law 39 Public Law 97–39 95 Stat. 939 1981-08-14 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 939 Public Law 97–39 97th Congress
An Act To authorize supplemental appropriations for fiscal year 1981 for the Armed Forces for procurement of aircraft, missiles, naval vessels, and tracked combat vehicles and for research, development, test, and evaluation, to increase the authorized personnel end strengths for military and civilian personnel of the Department of Defense for such fiscal year, to authorize supplemental appropriations for such fiscal year for construction at certain military installations, and for other purposes.

Aug. 14, 1981

[S. 694]

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

Department of Defense Supplemental Authorization Act, 1981.

cited as the “Department of Defense Supplemented Authorization Act, 1981”.
<num value="I">TITLE I—</num><heading>PROCUREMENT</heading> <level> <heading class="centered smallCaps">authorization of supplemental appropriations</heading> <section class="firstIndent1 fontsize10"> <num value="101"><inline class="smallCaps">Sec</inline>. 101. </num> <chapeau>In addition to the funds authorized to be appropriated under title I of the Department of Defense Authorization Act, 1981 (Public Law 96–342; 94 Stat. 1077), funds are hereby authorized to be appropriated for fiscal year 1981 for the use of the Armed Forces for procurement of aircraft, missiles, naval vessels, and tracked combat vehicles, as authorized by law, in amounts as follows:</chapeau> <appropriations level="small"> <heading>aircraft</heading> <content>For aircraft: for the Army, $128,000,000; for the Navy and Marine Corps, $143,600,000; for the Air Force, $716,625,000.</content> </appropriations> <appropriations level="small"> <heading>missiles</heading> <content>For missiles: for the Army, $27,000,000; for the Air Force, $205,869,000; for the Marine Corps, $10,700,000.</content> </appropriations> <appropriations level="small"> <heading>naval vessels</heading> <content>For naval vessels: for the Navy, $149,900,000.</content> </appropriations> <appropriations level="small"> <heading>tracked combat vehicles</heading> <content>For tracked combat vehicles: for the Army, $796,000,000; for the Marine Corps, $11,300,000.</content> </appropriations> </section> </level> <num value="II">TITLE II—</num><heading>RESEARCH, DEVELOPMENT, TEST, AND EVALUATION</heading> <level> <heading class="centered smallCaps">authorization of supplemental appropriations</heading> <section class="firstIndent1 fontsize10"> <num value="201"><inline class="smallCaps">Sec</inline>. 201. </num> <content>In addition to the funds authorized to be appropriated under title II of the Department of Defense Authorization Act, 1981 <page identifier="/us/stat/95/940">95 STAT. 940</page>(94 Stat. 1079), funds are hereby authorized to be appropriated for fiscal year 1981 for the use of the Armed Forces for research, development, test, and evaluation, as authorized by law, in amounts as follows:<list> <listItem> <listContent class="indent1 fontsize10 depth0">For the Army, $83,463,000.</listContent> </listItem> <listItem> <listContent class="indent1 fontsize10 depth0">For the Navy (including the Marine Corps, $138,067,000.</listContent> </listItem> <listItem> <listContent class="indent1 fontsize10 depth0">For the Air Force, $242,462,000.</listContent> </listItem> <listItem> <listContent class="indent1 fontsize10 depth0">For the Defense Agencies, $16,936,000.</listContent> </listItem> </list> </content> </section> </level> <num value="III">TITLE III—</num><heading>ACTIVE FORCES</heading> <level> <heading class="centered smallCaps">increase in fiscal year 1981 active duty end strengths</heading> <section class="firstIndent1 fontsize10"> <num value="301"><inline class="smallCaps">Sec</inline>. 301. </num> <content>Section 301 of the Department of Defense Authorization Act, 1981 (94 Stat. 1082), is amended by striking out “<quotedText>775,300</quotedText>”, “<quotedText>537,456</quotedText>”, “<quotedText>188,100</quotedText>”, and “<quotedText>564,500</quotedText>” and inserting in lieu thereof “<quotedText>780,000</quotedText>”, “<quotedText>540,456</quotedText>”, “<quotedText>190,600</quotedText>”, and “<quotedText>569,000</quotedText>”, respectively.</content> </section> </level> <num value="IV">TITLE IV—</num><heading>RESERVE FORCES</heading> <level> <heading class="centered smallCaps">increase in number of marine corps reservists authorized to be on full-time active duty on september 30, 1981, in support of the marine corps reserve</heading> <section class="firstIndent1 fontsize10"> <num value="401"><inline class="smallCaps">Sec</inline>. 401. </num> <content>Section 401(b)(4) of the Department of Defense Authorization Act, 1981 (94 Stat. 1084), is amended by striking out “<quotedText>67</quotedText>” and inserting in lieu thereof “<quotedText>133</quotedText>”.</content> </section> </level> <num value="V">TITLE V—</num><heading>CIVILIAN PERSONNEL</heading> <level> <heading class="centered smallCaps">increase in number of civilian personnel authorized for the department of defense as of september 30, 1981</heading> <section class="firstIndent1 fontsize10"> <num value="501"><inline class="smallCaps">Sec</inline>. 501. </num> <content>Section 501(a) of the Department of Defense Authorization Act, 1981 (94 Stat. 1085), is amended by striking out “<quotedText>986,000</quotedText>” and inserting in lieu thereof “<quotedText>1,012,250</quotedText>”.</content> </section> </level> <num value="VI">TITLE VI—</num><heading>MILITARY CONSTRUCTION</heading> <level> <heading class="centered smallCaps">authorized army construction projects</heading> <section class="firstIndent1 fontsize10"> <num value="601"><inline class="smallCaps">Sec</inline>. 601. </num><subsection class="inline"><num value="a">(a) </num> <chapeau class="inline">In addition to the amounts authorized for acquisition and construction by title I of the Military Construction Authorization Act, 1981 (Public Law 96–418; 94 Stat. 1749), the following amount is authorized for the location specified:</chapeau> <appropriations level="small"> <heading>united states army, europe</heading> <content>Various Locations, $1,800,000.</content> </appropriations> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <content>There is authorized to be appropriated for fiscal year 1981 for the purpose of subsection (a) the sum of $1,800,000.</content> </subsection> </section> </level> <level> <heading class="centered smallCaps">authorized navy construction projects</heading> <section class="firstIndent1 fontsize10"> <num value="602"><inline class="smallCaps">Sec</inline>. 602. </num><subsection class="inline"><num value="a">(a) </num> <chapeau>In addition to the amounts authorized for acquisition and construction by title II of the Military Construction Authorization Act, 1981 (94 Stat. 1752), the following amount is authorized for the location specified:</chapeau> <page identifier="/us/stat/95/941">95 STAT. 941</page> <appropriations level="small"> <heading>united states marine corps</heading> <content>Marine Corps Air Station, El Toro, California, $2,000,000.</content> </appropriations> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <content>There is authorized to be appropriated for fiscal year 1981 for the purpose of subsection (a) the sum of $2,000,000.</content> </subsection> </section> </level> <level> <heading class="centered smallCaps">authorized air force construction projects</heading> <section class="firstIndent1 fontsize10"> <num value="603"><inline class="smallCaps">Sec</inline>. 603. </num><subsection class="inline"><num value="a">(a) </num> <chapeau class="inline">In addition to the amounts authorized for acquisition and construction by title III of the Military Construction Authorization Act, 1981 (94 Stat. 1756), the following amounts are authorized for the locations specified:</chapeau> <appropriations level="small"> <heading>air training command</heading> <content>Laughlin Air Force Base, Texas, $4,700,000.</content> </appropriations> <appropriations level="small"> <heading>strategic air command</heading> <content>K. I. Sawyer Air Force Base, Michigan, $540,000.</content> </appropriations> <appropriations level="small"> <heading>special project</heading> <content>Various Locations, Special Project, $50,000,000.</content> </appropriations> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <content>There is authorized to be appropriated for fiscal year 1981 for the purpose of subsection (a) the sum of $55,240,000.</content> </subsection> </section> </level> <level> <heading class="centered smallCaps">authorized construction projects for the defense agencies</heading> <section class="firstIndent1 fontsize10"> <num value="604"><inline class="smallCaps">Sec</inline>. 604. </num><subsection class="inline"><num value="a">(a) </num> <content class="inline">In addition to the amount specified for minor construction projects by section 403 of the Military Construction Authorization Act, 1981 (94 Stat. 1761), the Secretary of Defense is authorized to accomplish minor construction projects under section 2674 of title 10, United States Code, in the amount of $900,000.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <content>There is authorized to be appropriated for fiscal year 1981 for the purpose of subsection (a) the sum of $900,000.</content> </subsection> </section> </level> <level> <heading class="centered smallCaps">military family housing</heading> <section class="firstIndent1 fontsize10"> <num value="605"><inline class="smallCaps">Sec</inline>. 605. </num> <chapeau>Section 510(a) of the Military Construction Authorization Act, 1981 (94 Stat. 1767), is amended—</chapeau> <paragraph class="firstIndent1 fontsize10"> <num value="1">(1) </num> <content>by striking out “<quotedText>$276,100,000</quotedText>” in clause (1) and inserting in lieu thereof “<quotedText>$260,078,000</quotedText>”; and</content> </paragraph> <paragraph class="firstIndent1 fontsize10"> <num value="2">(2) </num> <content>by striking out “<quotedText>$1,880,760,000</quotedText>” in clause (2) and inserting in lieu thereof “<quotedText>1,896,782,000</quotedText>”.</content> </paragraph> </section> </level> <level> <heading class="centered smallCaps">air national guard of the united states</heading> <section class="firstIndent1 fontsize10"> <num value="606"><inline class="smallCaps">Sec</inline>. 606. </num> <content>In addition to the amount specified in section 701(3)(A) of the Military Construction Authorization Act, 1981 (94 Stat. 1774), the Secretary of Defense may establish or develop facilities for the Air National Guard of the united States in an amount not to exceed $6,500,000.</content> </section> </level> <level> <heading class="centered smallCaps">limitations applicable to use of funds</heading> <section class="firstIndent1 fontsize10"> <num value="607"><inline class="smallCaps">Sec</inline>. 607. </num><subsection class="inline"><num value="a">(a) </num> <content class="inline">Authorizations contained in this title shall be subject to the authorizations and limitations of the Military Construction Authorization Act, 1981 (94 Stat. 1749), in the same manner as if such authorizations had been included in the Act.</content> </subsection> <page identifier="/us/stat/95/942">95 STAT. 942</page> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <content>For the purposes of the limitations set forth in section 603 of the Military Construction Authorization Act, 1981 (94 Stat. 1768), the <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1749–1763">94 Stat 1749–1763</ref>.</p></sidenote>amounts authorized to be appropriated for titles I through V of that Act shall be deemed to be increased, respectively, by the amounts <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/1768–1770">94 Stat. 1768–1770</ref>.</p></sidenote>authorized to be appropriated by sections 601 through 605.</content> </subsection> </section> </level> <level> <heading class="centered smallCaps">modification of prior year authorization for family housing units at tinker air force base, oklahoma</heading> <section class="firstIndent1 fontsize10"> <num value="608"><inline class="smallCaps">Sec</inline>. 608. </num><subsection class="inline"><num value="a">(a) </num> <content class="inline">Section 501(c) of the Militant Construction Authorization Act, 1980 (Public Law 96–125; 93 Stat. 940), is amended by striking out “<quotedText>three hundred thirty-two units</quotedText>” in the item relating to Tinker Air Force Base and inserting in lieu thereof “<quotedText>two hundred units</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <content>The authorization for construction of, or acquisition of sole interest in, family housing units at Tinker Air Force Base, Oklahoma, contained in section 501 of the Military Construction Authorization Act, 1980, as amended by subsection (a), is hereby modified to authorize construction of such family housing units on base at Tinker Air Force Base.</content> </subsection> </section> </level> <num value="VII">TITLE VII—</num><heading>COMPENSATION PROVISIONS</heading> <level> <heading class="centered smallCaps">submarine duty incentive pay</heading> <section class="firstIndent1 fontsize10"> <num value="701"><inline class="smallCaps">Sec</inline>. 701. </num><subsection class="inline"><num value="a">(a) </num> <content>Paragraphs (1) and (2) of section 301c(a) of title 37, <sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/stat/94/3360">94 Stat. 3360</ref>.</p></sidenote>United States Code, are amended to read as follows:<quotedContent> <paragraph class="firstIndent1 fontsize10"> <num value="1">“(1) </num> <content>Subject to regulations prescribed by the President, a member of the Navy who is entitled to basic pay, and (A) holds (or is in training leading to) a submarine duty designator, (B) is in and remains in the submarine service on a career basis, and (C) meets the requirements of paragraph (3) of this subsection, is entitled to continuous monthly submarine duty incentive pay in the amount set forth in subsection (b) of this section.</content> </paragraph> <paragraph class="firstIndent1 fontsize10"> <num value="1">“(1) </num> <content>Subject to regulations prescribed by the President, a member of the Navy who is entitled to basic pay but is not entitled to continuous monthly submarine duty incentive pay under paragraph (1) of this subsection is entitled to submarine duty incentive pay in the amount set forth in subsection (b) of this section for any period during which such member performs frequent and regular operational submarine duty (as defined in paragraph (5) of this subsection) required by orders.”.</content> </paragraph> </quotedContent> </content> </subsection> <subsection class="indent0 fontsize10"> <num value="b">(b) </num> <content>Paragraph (5)(A)(i) of such section is amended by inserting “<quotedText>while serving as an operator or crew member of an operational submersible (including an undersea exploration or research vehicle),</quotedText>” after “<quotedText>to a submarine,</quotedText>”.</content> </subsection> <subsection class="indent0 fontsize10"> <num value="c">(c) </num> <sidenote><p class="indent0 firstIndent0 fontsize8">Effective date.</p><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t37/s301c">37 USC 301c note</ref>.</p></sidenote> <content class="inline">The amendments made by this section shall take effect as of January 1, 1981.</content> </subsection> </section> </level> <page identifier="/us/stat/95/943">95 STAT. 943</page> <level> <heading class="centered smallCaps">effective date of accumulated leave amendment</heading> <section class="firstIndent1 fontsize10"> <num value="702"><inline class="smallCaps">Sec</inline>. 702. </num> <content>The amendment made by section 10 of the Military Pay<sidenote><p class="indent0 firstIndent0 fontsize8"><ref href="/us/usc/t10/s701">10 USC 701 note</ref>.</p></sidenote> and Allowances Benefits Act of 1980 (Public Law 96–579; 94 Stat 8368) shall apply with respect to the accumulation of leave by members of the Armed Forces who after September 30, 1979, are assigned (1) to a deployable ship or mobile unit, or (2) to other duly designated after the date of the enactment of this Act as duty Qualifying for the purpose of section 701(f) of title 10, United States Code, as amended by that amendment.</content> </section> </level> Approved August 14, 1981.
LEGISLATIVE HISTORY—S. 694 (H.R. 2614): HOUSE REPORTS: No. 97–20 accompanying H.R. 2614 (Comm. on Armed Services) and 97–204 (Comm. of Conference). SENATE REPORT No. 97–35 (Comm. on Armed Services). CONGRESSIONAL RECORD, Vol. 127 (1981):

Apr. 7, considered and passed Senate.

June 11, 15, 23, H.R. 2614 considered and passed House; proceedings vacated and S. 694, amended, passed in lieu.

July 30, Senate agreed to conference report.

Aug. 4, House agreed to conference report.

 Public Law 97–40: To amend the District of Columbia Self-Government and Governmental Reorganization Act to extend the authority of the Mayor to accept certain interim loans from the United States and to extend the authority of the Secretary of the Treasury to make such loans. Public Law 40 Public Law 97–40 95 Stat. 944 1981-08-14 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 944 Public Law 97–40 97th Congress
An Act To amend the District of Columbia Self-Government and Governmental Reorganization Act to extend the authority of the Mayor to accept certain interim loans from the United States and to extend the authority of the Secretary of the Treasury to make such loans.

Aug. 14, 1981

[S. 640]

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

District of Columbia Self-Government and Governmental Reorganization Act, amendment.
That section 723(a) of the District of Columbia Self-Government and Governmental Reorganization Act (D.C. Code, sec. 47–241 note) is amended by striking out “October 1, 1980, or upon enactment of the fiscal year 1981 appropriation Act for the District of Columbia government, whichever is later” in the first sentence and inserting in lieu thereof “October 1, 1982, or the date of the enactment of the appropriation Act for the fiscal year ending September 30, 1983, for the government of the District of Columbia, whichever is later”.
Approved August 14, 1981.
LEGISLATIVE HISTORY—S. 640 (H.R. 2818): HOUSE REPORT No. 97–43 accompanying H.R. 2818 (Comm. on the District of Columbia). SENATE REPORT No. 97–79 (Comm. on Governmental Affairs). CONGRESSIONAL RECORD, Vol. 127 (1981):

June 3, considered and passed Senate.

July 27, H.R. 2818 considered and passed House; proceedings vacated and S. 640, amended, passed in lieu.

Aug. 3, Senate concurred in House amendments.

 Public Law 97–41: To authorize the generation of electrical power at Palo Verde Irrigation District Diversion Dam, California. Public Law 41 Public Law 97–41 95 Stat. 945 1981-08-14 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 945 Public Law 97–41 97th Congress
An Act To authorize the generation of electrical power at Palo Verde Irrigation District Diversion Dam, California.

Aug. 14, 1981

[S. 875]

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

Palo Verde Irrigation District Diversion Dam, Calif.

Electrical power generation.

15 USC 714b.

 August 31, 1954 (68 Stat. 1045) is amended by striking subsection 2(c) and inserting in lieu thereof the following: “(c) to accept title to said dam, appurtenant works, lands, and interests in land upon payment by the district (which payment shall be made over a period of not more than fifty years) of the sum of $1,175,000, and upon repayment of any loan made pursuant to section 4, clause (c), of this Act; “(d) notwithstanding any provision of the Federal Power Act (16 U.S.C. 792 et seq.), to the contrary, the Palo Verde Irrigation District, California, shall have the exclusive right to utilize said dam, appurtenant works, lands, and interests in land for the development, generation, transmission, and disposal of electric power and energy pursuant to a license from the Federal Energy Regulatory Commission under part I of the Federal Power Act: Provided, That if the Palo Verae Irrigation District, California, after the date of enactment of this subsection shall notify the Secretary of the Interior that it relinquishes the right granted in this subsection there shall be and is hereby reserved to the United States or there shall be made available to it, as the case may require, the exclusive right to utilize, without cost to it, said dam, appurtenant works, lands, and interests in land for such development, generation, and transmission of electric power and energy as may hereafter be authorized by law: Provided further. That in the event it becomes practicable for the United States to develop hydroelectric energy at this site, the division of such energy between the United States and the district shall be a matter of negotiation prior to construction of any powerplant.”.
Approved August 14, 1981.
LEGISLATIVE HISTORY—S. 875: HOUSE REPORT No. 97–209 (Comm. on Interior and Insular Affairs). SENATE REPORT No. 97–60 (Comm. on Energy and Natural Resources). CONGRESSIONAL RECORD, Vol. 127 (1981):

May 14, considered and passed Senate.

Aug. 4, considered and passed House.

 Public Law 97–42: Entitled the “Saccharin Study and Labeling Act Amendment of 1981”. Public Law 42 Public Law 97–42 95 Stat. 946 1981-08-14 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 946 Public Law 97–42 97th Congress
An Act Entitled the “Saccharin Study and Labeling Act Amendment of 1981”.

Aug. 14, 1981

[S. 1278]

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

Saccharin Study and Labeling Act Amendment of 1981.

21 USC 301 note.

94 Stat. 536.

21 USC 348 note.
That this Act may be cited as the “Saccharin Study and Labeling Act Amendment of 1981”.
Sec. 2. The Saccharin Study and Labeling Act is amended by striking from section 3 “June 30, 1981” and inserting in lieu thereof “twenty-four months after the date of enactment of the Saccharin Study and Labeling Act Amendment of 1981”.
Approved August 14, 1981.
LEGISLATIVE HISTORY—S. 1278: SENATE REPORT No. 97–140 (Comm. on Labor and Human Resources). CONGRESSIONAL RECORD, Vol. 127 (1981):

June 25, considered and passed Senate.

July 31, considered and passed House.

 Public Law 97–43: To authorize and request the President to designate September 13, 1981, as “Commodore John Barry Day”. Public Law 43 Public Law 97–43 95 Stat. 947 1981-08-20 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 947 Public Law 97–43 97th Congress
Joint Resolution To authorize and request the President to designate September 13, 1981, as “Commodore John Barry Day”.

Aug. 20, 1981

[S.J. Res. 87]

 Whereas Commodore John Barry, hero of the American Revolution and holder of the first Commission in the United States Navy, was born on September 13, 1745, in County Wexford, Ireland; Whereas Commodore Barry was commissioned to command the brig Lexington, the first ship bought and equipped for the Revolution, and became a national hero with the first capture of an enemy warship in actual battle; Whereas following the Revolution, when the sovereignty of this new Nation was threatened by pirates. Commodore Barry was placed in command of the first ships authorized under the new Constitution and was named senior captain of the United States Navy in 1794; Whereas Commodore Barry is considered as the father of the United States Navy; and Whereas Commodore Barry was honored by the United States Congress in 1906, when a statue was commissioned and later placed in Lafayette Park, Washington, District of Columbia, and honored again some fifty years later when the Congress authorized a statue to be presented in his name to the people of County Wexford, Ireland: Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That the President

Commodore John Barry Day.

Designation authorization.

 is authorized and requested to designate September 13, 1981, as “Commodore John Barry Day”, as a tribute to the father of the United States Navy, and to call upon Federal, State, and local government agencies and the people of the United States to observe such day with appropriate ceremonies and activities.
Approved August 20, 1981.
LEGISLATIVE HISTORY—S.J. Res. 87: CONGRESSIONAL RECORD, Vol. 127 (1981):

July 31, considered and passed Senate.

Aug. 4, considered and passed House.

 WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 17, No. 34 (1981):

Aug. 20, Presidential statement.

 Public Law 97–44: To authorize and request the President to designate the week of September 20 through 26, 1981, as “National Cystic Fibrosis Week”. Public Law 44 Public Law 97–44 95 Stat. 948 1981-09-17 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 948 Public Law 97–44 97th Congress
Joint Resolution To authorize and request the President to designate the week of September 20 through 26, 1981, as “National Cystic Fibrosis Week”.

Sept. 17, 1981

[S.J. Res. 62]

 Whereas cystic fibrosis is the number one genetic killer of children in America, and between one thousand five hundred and two thousand five hundred are born each year in this country with the disease; and Whereas public understanding of cystic fibrosis is essential to enhance early detection and treatment of the disease and reduce the misunderstanding and confusion concerning the symptoms of cystic fibrosis; and Whereas a national awareness of the cystic fibrosis problem will stimulate interest and concern leading to increased research and eventually a cure for cystic fibrosis: Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,

National Cystic Fibrosis Week.

Designation.
That the week of September 20 through 26, 1981, is designated as “National Cystic Fibrosis Week”, and the President is authorized and requested to issue a proclamation calling upon the people of the United States to observe that week with appropriate ceremonies and activities.
Approved September 17, 1981.
LEGISLATIVE HISTORY—S.J. Res. 62: CONGRESSIONAL RECORD, Vol. 127 (1981):

July 31, considered and passed Senate.

Sept. 15, considered and passed House.

 Public Law 97–45: To facilitate the ability of product sellers to establish product liability risk retention groups, to facilitate the ability of such sellers to purchase product liability insurance on a group basis, and for other purposes. Public Law 45 Public Law 97–45 95 Stat. 949 1981-09-25 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 949 Public Law 97–45 97th Congress
An Act To facilitate the ability of product sellers to establish product liability risk retention groups, to facilitate the ability of such sellers to purchase product liability insurance on a group basis, and for other purposes.

Sept. 25, 1981

[H.R. 2120]

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

Product Liability Risk Retention Act of 1981.

15 USC 3901 note.

 short title
Section 1. This Act may be cited as the “Product Liability Risk Retention Act of 1981”.
definitions
Sec. 2. (a) As used in this Act—

15 USC 3901.

 (1) “completed operations liability” means liability arising out of the installation, maintenance, or repair of any product at a site which is not owned or controlled by— (A) any person who performs that work; or (B) any person who hires an independent contractor to perform that work; but shall include liability for activities which are completed or abandoned before the date of the occurrence giving rise to the liability; (2) “insurance” means primary insurance, excess insurance, reinsurance, surplus lines insurance, and any other arrangement for shifting and distributing risk which is determined to be insurance under applicable State or Federal law; (3) “product liability” means liability for damages because of any personal injury, death, emotional harm, consequential economic damage, or property damage (including damages resulting from the loss of use of property) arising out of the manufacture, design, importation, distribution, packaging, labeling, lease, or sale of a product, but does not include the liability of any person for those damages if the product involved was in the possession of such a person when the incident giving rise to the claim occurred; (4) “risk retention group” means any corporation or other limited liability association taxable as a corporation, or as an insurance company, formed under the laws of any State, Bermuda, or the Cayman Islands— (A) whose primary activity consists of assuming and spreading all, or any portion, of the product liability or completed operations liability risk exposure of its group members; (B) which is organized for the primary purpose of conducting the activity described under subparagraph (A); (C) which is chartered or licensed as an insurance company and authorized to engage in the business of insurance under the laws of any State, or which is so chartered or 95 STAT. 950licensed and authorized before January 1, 1985, under the laws of Bermuda or the Cayman Islands, except that any group so chartered or licensed and authorized under the laws of Bermuda or the Cayman Islands shall be considered to be a risk retention group only after it has certified to the insurance commissioner of at least one State that it satisfies the capitalization requirements of such State; (D) which does not exclude any person from membership in the group solely to provide for members of such a group a competitive advantage over such a person; and (E) which is composed of members each of whose principal activity consists of the manufacture, design, importation, distribution, packaging, labeling, lease, or sale of a product or products; (5) “purchasing group” means any group of persons which has as one of its purposes the purchase of product liability or completed operations liability insurance on a group basis; and (6) “State” means any State of the United States or the District of Columbia. (b) The definition of “product liability” in paragraph (4) of subsection (a) of this section shall not be construed to affect either the tort law or the law governing the interpretation of insurance contracts of any State.
risk retention groups
Sec. 3. (a)

State regulation, exemptions.

15 USC 3902.

 Except as provided in this section, a risk retention group is exempt from any State law, rule, regulation, or order to the extent that such law, rule, regulation, or order would— (1) make unlawful, or regulate, directly or indirectly, the operation of a risk retention group except that the jurisdiction in which it is chartered may regulate the formation and operation of such a group and any State may require such a group to— (A) comply with the unfair claim settlement practices law of the State; (B) pay, on a nondiscriminatory basis, applicable premium and other taxes which are levied on admitted insurers and surplus lines Insurers, brokers, or policyholders under the laws of the State; (C) participate, on a nondiscriminatory basis, in any mechanism established or authorized under the law of the State for the equitable apportionment among insurers of product liability or completed operations liability insurance losses and expenses incurred on policies written through such mechanism; (D) submit to the appropriate authority reports and other information required of licensed insurers under the laws of a State relating solely to product liability or completed operations liability insurance losses and expenses; (E) register with and designate the State insurance commissioner as its agent solely for the purpose of receiving service of legal documents or process, and, upon request, furnish such commissioner a copy of any financial report submitted by the risk retention group to the commissioner of the chartering or licensing jurisdiction; (F) submit to an examination by the State insurance commissioner in any State in which the group is doing business to determine the group’s financial condition, if— 95 STAT. 951 (i) the commissioner has reason to believe the risk retention group is in a financially impaired condition; and (ii) the commissioner of the jurisdiction in which the group is chartered has not begun or has refused to initiate an examination of the group; and (G) comply with a lawful order issued in a delinquency proceeding commenced by the State insurance commissioner if the commissioner of the jurisdiction in which the group is chartered has failed to initiate such a proceeding after notice of a finding of financial impairment under subparagraph (F) of this paragraph; (2) require or permit a risk retention group to participate in any insurance insolvency guaranty association to which an insurer licensed in the State is required to belong; (3) require any insurance policy issued to a risk retention group or any member of the group to be countersigned by an insurance agent or broker residing in that State; or (4) otherwise discriminate against a risk retention group or any of its members, except that nothing in this section shall be construed to affect the applicability of State laws generally applicable to persons or corporations. (b) The exemptions specified in subsection (a) apply to— (1) product liability or completed operations liability insurance coverage provided by a risk retention group for— (A) such group; or (B) any person who is a member of such group; (2) the sale of product liability or completed operations liability insurance coverage for a risk retention group; and (3) the provision of insurance related services or management services for a risk retention group or any member of such group. (c) A State may require that a person acting, or offering to act, as an

State license requirement.

 agent or broker for a risk retention group obtain a license from that State, except that a State may not impose any qualification or requirement which discriminates against a nonresident agent or broker.
purchasing groups
Sec. 4. (a) Except as provided in this section, a purchasing group is exempt from any State law, rule, regulation, or order to the extent that such law, rule, regulation, or order would— (1) prohibit the establishment of a purchasing group; (2) make it unlawful for an insurer to provide or offer to provide insurance on a basis providing, to a purchasing group or its members, advantages, based on their loss and expense experience, not afforded to other persons with respect to rates, policy forms, coverages, or other matters; (3) prohibit a purchasing group or its members from purchasing insurance on the group basis described in paragraph (2) of this subsection; (4) prohibit a purchasing group from obtaining insurance on a group basis because the group has not been in existence for a minimum period of time or because any member has not belonged to the group for a minimum period of time; (5) require that a purchasing group must have a minimum number of members, common ownership or affiliation, or a certain legal form; 95 STAT. 952 (6) require that a certain percentage of a purchasing group must obtain insurance on a group basis; (7) require that any insurance policy issued to a purchasing group or any members of the group be countersigned by an insurance agent or broker residing in that State; or (8) otherwise discriminate against a purchasing group or any of its members. (b) The exemptions specified in subsection (a) apply to— (1) product liability or completed operations liability insurance, and comprehensive general liability insurance which includes either of these coverages, provided to— (A) a purchasing group; or (B) any person who is a member of a purchasing group; and (2) the provision of— (A) product liability or completed operations insurance, and comprehensive general liability coverage; (B) insurance related services; or (C) management services; to a purchasing group or member of the group. (c)

State license requirement.

 A State may require that a person acting, or offering to act, as an agent or broker for a purchasing group obtain a license from that State, except that a State may not impose any (qualification or requirement which discriminates against a nonresident agent or broker.
applicability of securities laws
Sec. 5. (a)

Ownership interests.

15 USC 3904.

 The ownership interests of members in a risk retention group shall be— (1) considered to be exempted securities for purposes of section

15 USC 77e.

15 USC 78l.

5 of the Securities Act of 1933 and for purposes of section 12 of the Securities Exchange Act of 1934; and (2) considered to be securities for purposes of the provisions of

15 USC 77q.

15 USC 78j.

section 17 of the Securities Act of 1933 and the provisions of section 10 of the Securities Exchange Act of 1934. (b) A risk retention group shall not be considered to be an investment company for purposes of the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.). (c) The ownership interests of members in a risk retention group shall not be considered securities for purposes of any State blue sky law.
Approved September 25, 1981.
LEGISLATIVE HISTORY—H.R. 2120 (S. 1096): HOUSE REPORT No. 97–190 (Comm. on Energy and Commerce). SENATE REPORT No. 97–172 accompanying S. 1096 (Comm. on Commerce, Science, and Transportation). CONGRESSIONAL RECORD, Vol. 127 (1981):

July 28, considered and passed House.

Sept. 11, considered and passed Senate in lieu of S. 1096.

 WEEKLY COMPILATION OF PRESIDENTIAL DOOUMENTS, Vol. 17, No. 39 (1981):

Sept. 25, Presidential statement.

 Public Law 97–46: To enable the Secretary of Agriculture to assist, on an emergency basis, in the eradication of plant pests and contagious or infectious animal and poultry diseases. Public Law 46 Public Law 97–46 95 Stat. 953 1981-09-25 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 953 Public Law 97–46 97th Congress
An Act To enable the Secretary of Agriculture to assist, on an emergency basis, in the eradication of plant pests and contagious or infectious animal and poultry diseases.

Sept. 25, 1981

[H.R. 4416]

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

Plant pests and animal and poultry diseases, eradication.

7 USC 147b.

 of Agriculture may, in connection with emergencies which threaten any segment of the agricultural production industry of this country, transfer from other appropriations or funds available to the agencies, or corporations of the Department of Agriculture such sums as the Secretary may deem necessary, to be available only in such emergencies for the arrest and eradication of plant pests or contagious or infectious diseases of animals or poultry, and for expenses in accordance with section 102 of the Act of September 21, 1944, as amended (7 U.S.C. 147a), and the Act of February 28, 1947, as amended (21 U.S.C. 114b).
Sec. 2. The provisions of this Act shall become effective upon

Effective date.

7 USC 147b note.

 enactment.
Approved September 25, 1981.
LEGISLATIVE HISTORY—H.R. 4416: CONGRESSIONAL RECORD, Vol. 127 (1981):

Sept. 9, considered and passed House.

Sept. 11, considered and passed Senate.

 Public Law 97–47: To extend by one year the expiration date of the Defense Production Act of 1950. Public Law 47 Public Law 97–47 95 Stat. 954 1981-09-30 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 954 Public Law 97–47 97th Congress
An Act To extend by one year the expiration date of the Defense Production Act of 1950.

Sept. 30, 1981

[H.R. 2903]

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

Defense Production Act of 1950, extension.

94 Stat. 633.
That the first sentence of section 717(a) of the Defense Production Act of 1950 (50 U.S.C. App. 2166(a)) is amended by striking out “September 30, 1981” and inserting in lieu thereof “September 30, 1982”.
gold commission extension
Sec. 2.

94 Stat. 1555.

 Section 10(b) of Public Law 96–389 (31 U.S.C. 822a note) is amended by striking out “one year after the date of enactment of this Act” and inserting in lieu thereof “March 31, 1982”.
Approved September 30, 1981.
LEGISLATIVE HISTORY—H.R. 2903 (S. 1135): HOUSE REPORT No. 97–48 (Comm. on Banking, Finance, and Urban Affairs). SENATE REPORT No. 97–93 accompanying S. 1135 (Comm. on Banking, Housing, and Urban Affairs). CONGRESSIONAL RECORD, Vol. 127 (1981):

July 13, considered and passed House.

Sept. 22, considered and passed Senate, amended, in lieu of S. 1135.

Sept. 24, House concurred in Senate amendment.

 Public Law 97–48: To provide for a temporary increase in the public debt limit. Public Law 48 Public Law 97–48 95 Stat. 955 1981-09-30 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 955 Public Law 97–48 97th Congress
Joint Resolution To provide for a temporary increase in the public debt limit.

Sept. 30, 1981

[H.J. Res. 266]

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

Public debt limit.

Temporary increase.

31 USC 757b note.

 beginning on the date of the enactment of this Act and ending on September 30, 1981, the public debt limit set forth in the first sentence of section 21 of the Second Liberty Bond Act (31 U.S.C. 757b) shall be temporarily increased by $599,800,000,000.
Approved September 30, 1981.
LEGISLATIVE HISTORY—H.J. Res. 266: CONGRESSIONAL RECORD, Vol. 127 (1981):

May 21, considered and passed House.

Sept. 29, considered and passed Senate.

 Public Law 97–49: To provide for a temporary increase in the public debt limit. Public Law 49 Public Law 97–49 95 Stat. 956 1981-09-30 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 956 Public Law 97–49 97th Congress
Joint Resolution To provide for a temporary increase in the public debt limit.

Sept. 30, 1981

[H.J. Res. 265]

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

Public debt limit.

Temporary increase.

31 USC 757b note.
That during the period beginning on October 1, 1981, and ending on September 30, 1982, the public debt limit set forth in the first sentence of section 21 of the Second Liberty Bond Act (31 U.S.C. 757b) shall be temporarily increased by $679,800,000,000.
Approved September 30, 1981.
LEGISLATIVE HISTORY—H.J. Res. 265: CONGRESSIONAL RECORD, Vol. 127 (1981):

May 21, considered and passed House.

Sept. 25, 28, 29, considered and passed Senate.

 Public Law 97–50: To extend the expiration date of section 252 of the Energy Policy and Conservation Act. Public Law 50 Public Law 97–50 95 Stat. 957 1981-09-30 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 957 Public Law 97–50 97th Congress
An Act To extend the expiration date of section 252 of the Energy Policy and Conservation Act.

Sept. 30, 1981

[S. 1475]

 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That section 252(j) of

Energy Policy and Conservation Act, amendment.

Ante, p. 7.

 the Energy Policy and Conservation Act (42 U.S.C. 6272(j)) is amended by striking “September 30, 1981” and inserting in its place Act “April 1, 1982”.
Approved September 30, 1981.
LEGISLATIVE HISTORY—S. 1475: SENATE REPORT No. 97–254 (Comm. on Energy and Commerce). CONGRESSIONAL RECORD, Vol. 127 (1981):

Sept. 22, considered and passed Senate.

Sept. 29, considered and passed House.

 Public Law 97–51: Making continuing appropriations for the fiscal year 1982, and for other purposes. Public Law 51 Public Law 97–51 95 Stat. 958 1981-10-01 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-08-18 97 1 public 95 STAT. 958 Public Law 97–51 97th Congress
Joint Resolution Making continuing appropriations for the fiscal year 1982, and for other purposes.

Oct. 1, 1981

[H.J. Res. 325]

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

Continuing appropriations for fiscal year 1982.
That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the several departments, agencies, corporations, and other organizational units of the Government for the fiscal year 1982, and for other purposes, namely:
Sec. 101. (a)(1)

Such amounts as may be necessary for continuing projects or activities (not otherwise specifically provided for in this joint resolution) which were conducted in the fiscal year 1981 and for which appropriations, funds, or other authority would be available in the following appropriations Acts:

Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriation Act, 1982, notwithstanding section 15(a) of the State Department Basic Authorities Act of

22 USC 2680.

22 USC 1476.

1956 and section 701 of the United States Information and Educational Exchange Act of 1948, as amended;

District of Columbia Appropriation Act, 1982;

Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriation Act, 1982;

Agriculture, Rural Development, and Related Agencies Appropriation Act, 1982;

Energy and Water Development Appropriation Act, 1982;

Department of the Interior and Related Agencies Appropriation Act, 1982;

Treasury, Postal Service and General Government Appropriation Act, 1982;

Military Construction Appropriation Act, 1982; and

Department of Transportation and Related Agencies Appropriation Act, 1982.

 (2) Appropriations made by this subsection shall be available to the extent and in the manner which would be provided by the pertinent appropriation Act. (3) Whenever the amount which would be made available or the authority which would be granted under an Act listed in this subsection as passed the House as of October 1, 1981, is different from that which would be available or granted under such Act as passed by the Senate as of October 1, 1981, the pertinent project or activity shall be continued under the lesser amount or the more restrictive authority: Provided, That where an item is included in only one version of an Act as passed by both Houses as of October 1, 1981, the pertinent project or activity shall be continued under the appropriation, fund, or authority granted by the one House, but at a rate for operations not exceeding the current rate or the rate permitted by the action of the one House, whichever is lower, and under the authority and conditions provided in applicable appropriation Acts for the fiscal 95 STAT. 959year 1981: Provided further, That for the purposes of this joint resolution, when an Act listed in this subsection, with the exception of the Department of the Interior and Related Agencies Appropriation Act, 1982, has been reported to a House but not passed by that House as of October 1, 1981, it shall be deemed as having been passed by that House: Provided further. That funds which would be available under H.R. 4121, entitled the Treasury, Postal Service and General Government Appropriation Act, 1982, for the Government payment of annuitants and employees health benefits, shall be available under the authority and conditions set forth in H.R. 4121 as reported to the Senate on September 22, 1981. (4) Whenever an Act listed in this subsection has been passed by only one House as of October 1, 1981, the pertinent project or activity shall be continued under the appropriation, fund, or authority granted by the one House, but at a rate for operations not exceeding the current rate or the rate permitted by the action of the one House, whichever is lower, and under the authority and conditions provided in applicable appropriation Acts for the fiscal year 1981. (5) No provision which is included in an appropriation Act enumerated in this subsection but which was not included in the applicable appropriation Act of 1981, and which by its terms is applicable to more than one appropriation, fund, or authority shall be applicable to any appropriation, fund, or authority provided in the joint resolution unless such provision shall have been included in identical form in such bill as enacted by both the House and the Senate. (b)

Such amounts as may be necessary for continuing the following activities, not otherwise provided for, which were conducted in the fiscal year 1981, at a rate for operations not in excess of the current rate or the rate provided for in the budget estimate, whichever is lower, and under the more restrictive authority—

activities for which provision was made in the Department of Defense Appropriation Act, 1981; and

94 Stat. 3068.

activities for which provision was made in section 101(b) of Public Law 96–536 regarding foreign assistance and related

94 Stat. 3166.

22 USC 2412.

programs, notwithstanding section 10 of Public Law 91–672, and section 15(a) of the State Department Basic Authorities Act of 1956.

22 USC 2680.

(c)

Notwithstanding the provisions of sections 102 and 106 of this joint resolution, such amounts as may be necessary for continuing projects and activities under all the conditions and to the extent and in the manner as provided in H.R. 4120, entitled the Legislative Branch Appropriation Act, 1982, as reported July 9, 1981; and the provisions of H.R. 4120 shall be effective as if enacted into law; except that the provisions of section 305 (a), (b), and (d) of H.R. 4120 shall

5 USC 5318 note.

apply to any appropriation, fund or authority made available for the period October 1, 1981, through November 20, 1981, by this or any other Act.

Notwithstanding the provisions of sections 102 and 106 of this joint resolution, for continuing projects and activities for which disbursements are made by the Secretary of the Senate, the amounts set forth under the following appropriation account headings for fiscal year 1982:

Under the heading “compensation and mileage op the vice president and senators”, $6,932,000; Under the heading “expense allowances of the vice president, the president pro tempore, majority and minority leaders, and majority and minority whips”: For expense allowances of the Vice President, $10,000; President Pro Tempore of the Senate, $10,000; Majority Leader of the 95 STAT. 960Senate, $10,000; Minority Leader of the Senate, $10,000; Majority Whip of the Senate, $2,500; and Minority Whip of the Senate, $2,500; in all, $45,000; under the headings “salaries, officers and employees”, “office of the vice president”, $945,000; “office of the president pro tempore”, $126,000; “offices of the majority and minority leaders”, $566,100; “floor assistants to the majority and minority leaders”, $109,000; “offices of the majority and minority whips”, $264,600; “offices of the secretaries of the conference of the majority and the conference of the minority”, $143,100; “office of the chaplain”, $76,640; “office of the secretary”, $4,990,000; “conference committees”, $415,350 for each such committee; in all, $830,700; “administrative, clerical, and legislative assistance to senators”, $86,016,000; “office of sergeant at arms and doorkeeper”, $23,399,000; “offices of the secretaries for the majority and minority”, $588,000; “agency contributions and longevity and merit compensation”, $13,731,000; under the heading “Office of the Legislative Counsel of the Senate”, $1,020,600; under the heading “Office of Senate Legal Counsel”, $495,000; under the heading “Senate Procedure” for compiling, preparing, and editing “Senate Procedure”, 1980 edition, $5,000, to be paid to Floyd M. Riddick, Parliamentarian Emeritus of the Senate; under the headings “Contingent Expenses of the Senate”, “senate policy committees”, $761,850 for each such committee; in all, $1,523,700; “automobiles and maintenance”, $75,000; “inquiries and investigations”, $41,224,500; “folding documents”, at a gross rate of not exceeding $5.15 per hour per person, $128,000; “miscellaneous items”, $32,569,168; “postage stamps”, for postage stamps for the offices of the Secretaries for the Majority and Minority, $600; Chaplain, $300; and for special delivery postage for the Office of the Secretary, $6,000; Office of the Sergeant at Arms and Doorkeeper, $500; and the President of the Senate, as authorized by law, $1,600; in all, $9,000; “stationery (revolving fund)”, for stationery for the President of the Senate, $4,500, and for committees and officers of the Senate, $38,500; in all, $43,000.

For purposes of this subsection, H.R. 4120, as reported July 9, 1981, shall be treated as appropriating the following amounts:

Under the headings “JOINT ITEMS”, “Contingent Expenses of the Senate”, “joint economic committee”, $2,250,000; “joint committee on printing”, $816,000; “Contingent Expenses of the House”, “joint committee on taxation”, $2,967,000; “Office of the Attending Physician”, $603,000; “Capitol Police”, “general expenses”, $887,000; “Education of Pages”, $244,000; “Official Mail Costs”, $75,095,000; “Capitol Guide Service”, $734,000; “Statements of Appropriations”, $13,000; under the headings “OFFICE OF TECHNOLOGY ASSESSMENT”, “Salaries and Expenses”, $12,019,000; under the headings “CONGRESSIONAL BUDGET OFFICE”, “Salaries and Expenses”, $12,868,000; under the headings “ARCHITECT OF THE CAPITOL”, “Office of the Architect of the Capitol”, “salaries”, $3,760,000; “contingent expenses”, $210,000; “Capitol Buildings and Grounds”, “capitol buildings”, $10,100,000 of which $1,767,000 shall remain available until expended; “capitol grounds”, $2,430,000 of which $10,000 shall remain available until expended; “senate office buildings”, $14,851,000, of which $2,600,000 shall remain available until expended; “senate garage”, $99,000; “capitol power plant”, $20,916,000, of which $1,290,000 shall remain available until expended; under the headings “LIBRARY OF CONGRESS”, “Congressional Research Service”, “salaries and expenses”, $30,000,000; under the headings 95 STAT. 961“GOVERNMENT PRINTING OFFICE”, “Congressional Printing and Binding”, $84,843,000; under the headings “BOTANIC GARDEN”, “Salaries and Expenses”, $2,311,000; under the headings “LIBRARY OF CONGRESS”, “Salaries and Expenses”, $111,989,000; “Copyright Office”, “salaries and expenses”, $9,123,000; “Books for the Blind and Physically Handicapped”, “salaries and expenses”, $33,221,000; “Collection and Distribution of Library Materials (Special Foreign Currency Program)”, $4,405,000; “Furniture and Furnishings”, $1,089,000; under the headings “ARCHITECT OF THE CAPITOL”, “Library Buildings and Grounds”, “structural and mechanical care”, $8,715,000; under the headings “COPYRIGHT ROYALTY TRIBUNAL”, “Salaries and Expenses”, $400,000; under the headings “GOVERNMENT PRINTING OFFICE”, “Printing and Binding”, $17,888,000; “Office of Superintendent of Documents”, “salaries and expenses”, $27,120,000; under the headings “GENERAL ACCOUNTING OFFICE”, “salaries and expenses”, $229,300,000.

 (d)

Such amounts as may be necessary for continuing the following activities which were conducted in fiscal year 1981, but at a rate for operations not in excess of the current rate—

activities of the Department of State for contributions to the United Nations Relief and Works Agency for Palestinian Refugees notwithstanding section 10 of Public Law 91–672, and

22 USC 2412.

section 15(a) of the State Department Basic Authorities Act of 1956.

22 USC 2680.

(e) Notwithstanding any other provision of this joint resolution, except section 102, such amounts as may be necessary for projects or activities provided for in the Department of Housing and Urban Development—Independent Agencies Appropriations Act, 1982 (H.R. 4034), at a rate of operations and to the extent and in the manner provided for in the conference report and joint explanatory statement of the Committee of Conference (H. Rept. No. 97–222) filed in the House of Representatives on September 11, 1981, as if such Act had been enacted into law.
Sec. 102. Appropriations and funds made available and authority

Appropriation and funding availability.

 granted pursuant to this joint resolution shall be available from October 1, 1981, and shall remain available until (a) enactment into law of an appropriation for any project or activity provided for in this joint resolution, or (b) enactment of the applicable appropriation Act by both Houses without any provision for such project or activity, or (c) November 20, 1981, whichever first occurs.
Sec. 103. Appropriations and funds made available or authority granted pursuant to this joint resolution may be used without regard to the time limitations for submission and approval of apportionments set forth in section 665(d)(2) of title 31, United States Code, but nothing herein shall be construed to waive any other provision of law governing the apportionment of funds.
Sec. 104. Appropriations made and authority granted pursuant to this joint resolution shall cover all obligations or expenditures incurred for any project or activity during the period for which funds or authority for such projects or activity are available under this joint resolution.
Sec. 105. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law.
Sec. 106. No appropriation or fund made available or authority granted pursuant to this joint resolution shall be used to initiate or 95 STAT. 962resume any project or activity for which appropriations, funds, or other authority were not available during the fiscal year 1981.
Sec. 107. Any appropriation for the fiscal year 1982 required to be apportioned pursuant to section 665 of title 31, United States Code, may be apportioned on a basis indicating the need (to the extent any such increases cannot be absorbed within available appropriations) for a supplemental or deficiency estimate of appropriation to the extent necessary to permit payment of such pay increases as may be granted pursuant to law to civilian officers and employees and to active and retired military personnel. Each such appropriation shall otherwise be subject to the requirements of section 665 of title 31, United States Code.
Sec. 108. All obligations incurred in anticipation of the appropriations and authority provided in this joint resolution for the purposes of maintaining the minimum level of essential activities necessary to protect life and property and bringing about orderly termination of other functions are hereby ratified and confirmed if otherwise in accordance with the provisions of this joint resolution.
Sec. 109. No provision in any appropriation Act for the fiscal year 1982 that makes the availability of any appropriation provided therein dependent upon the enactment of additional authorizing or other legislation shall be effective before the date set forth in section 102(c) of this joint resolution.
Sec. 110.

Emergency authority to USDA Secretary.

 To meet the emergency facing a number of fruit producing States, particularly California, from the Mediterranean and other types of fruit flies, as well as the immediate and long-range threat to the timber stands and the watersheds of the Northeastern United States and other areas from the gypsy moth, as well as to meet threats from other pests and diseases, the Secretary of Agriculture is authorized to exercise the emergency authorities provided for in H.R.

Post, p, 1467.

4119 as passed the House of Representatives on July 27, 1981, in connection with the program of the Animal and Plant Health Inspection Service, notwithstanding any other provision of this joint resolution.
Sec. 110A.

Economic Development Representatives.

 Notwithstanding any other provision of this joint resolution or any other law, there shall be forty-seven permanent positions designated as Economic Development Representatives out of the total number of permanent positions funded in the Salaries and Expenses account of the Economic Development Administration for fiscal year 1982, and such positions shall be maintained in the various States within the approved organizational structure in place on June 1, 1981, and where possible, with those employees who filled those positions on that date.
Sec. 111. (a) The first section of the joint resolution relating to the payment of salaries of employees of the Senate, approved April 20, 1960 (Public Law 86–426, first section; 2 U.S.C. 60c–1), is amended— (1) in the first sentence, by striking out clause (1), (2) in the second sentence, by inserting “purposes of the Internal Revenue Code of 1954 and for” immediately after “For”, and (3) by striking out the last sentence thereof (as added by section 108 of the Supplemental Appropriations Act, 1979 (Public Law

93 Stat. 113.

Effective date.

2 USC 60c–1 note.

96–38, sec. 108)). (b)