[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3666 Engrossed Amendment Senate (EAS)]
In the Senate of the United States,
September 5, 1996.
Resolved, That the bill from the House of Representatives (H.R.
3666) entitled ``An Act making appropriations for the Departments of
Veterans Affairs and Housing and Urban Development, and for sundry
independent agencies, boards, commissions, corporations, and offices
for the fiscal year ending September 30, 1997, and for other
purposes.'', do pass with the following
AMENDMENTS:
(1)Page 3, line 3, strike out [$18,497,854,000] and insert:
$18,671,259,000
(2)Page 3, line 22, strike out [$1,227,000,000] and insert:
$1,377,000,000
(3)Page 6, line 22, strike out [$1,964,000] and insert: $2,822,000
(4)Page 8, line 12, strike out [$570,000,000] and insert: $596,000,000
(5)Page 8, line 21, strike out [$257,000,000] and insert: $262,000,000
(6)Page 9, line 9, strike out [$59,207,000] and insert: $62,207,000
(7)Page 10, line 10, strike out [$823,584,000] and insert: $813,730,000
(8)Page 10, line 10, strike out [further]
(9)Page 11, line 19, strike out [$245,358,000] and insert: $178,250,000
(10)Page 13, line 8, strike out [$160,000,000] and insert: $190,000,000
(11)Page 13, line 21, strike out [$12,300,000, together with]
(12)Page 18, after line 12 insert:
Sec. 108. (a) The Secretary of Veterans Affairs may convey, without
consideration, to the City of Tuscaloosa, Alabama (in this section
referred to as the ``City''), all right, title, and interest of the
United States in and to a parcel of real property, including any
improvements thereon, in the northwest quarter of section 28, township
21 south, range 9 west, of Tuscaloosa County, Alabama, comprising a
portion of the grounds of the Department of Veterans Affairs medical
center, Tuscaloosa, Alabama, and consisting of approximately 9.42
acres, more or less.
(b) The conveyance under subsection (a) shall be subject to the
condition that the City use the real property conveyed under that
subsection in perpetuity solely for public park or recreational
purposes.
(c) The exact acreage and legal description of the real property to
be conveyed pursuant to this section shall be determined by a survey
satisfactory to the Secretary of Veterans Affairs. The cost of such
survey shall be borne by the City.
(d) The Secretary of Veterans Affairs may require such additional
terms and conditions in connection with the conveyance under this
section as the Secretary considers appropriate to protect the interests
of the United States.
(13)Page 18, strike out all after line 16, over to and including line 9
on page 27
(14)Page 27, after line 9 insert:
development of additional new subsidized housing
For assistance for the purchase, construction, acquisition, or
development of additional public and subsidized housing units for low
income families under the United States Housing Act of 1937, as amended
(``the Act'' herein) (42 U.S.C. 1437), not otherwise provided for,
$969,464,442, to remain available until expended: Provided, That of the
total amount provided under this head, $595,000,000 shall be for
capital advances, including amendments to capital advance contracts,
for housing for the elderly, as authorized by section 202 of the
Housing Act of 1959, as amended, and for project rental assistance, and
amendments to contracts for project rental assistance, for supportive
housing for the elderly under section 202(c)(2) of the Housing Act of
1959; and $174,000,000 shall be for capital advances, including
amendments to capital advance contracts, for supportive housing for
persons with disabilities, as authorized by section 811 of the
Cranston-Gonzalez National Affordable Housing Act; and for project
rental assistance, and amendments to contracts for project rental
assistance, for supportive housing for persons with disabilities as
authorized by section 811 of the Cranston-Gonzalez National Affordable
Housing Act: Provided further, That the Secretary may designate up to
25 percent of the amounts earmarked under this paragraph for section
811 of the Cranston-Gonzalez National Affordable Housing Act for
tenant-based assistance, as authorized under that section, which
assistance is five years in duration: Provided further, That the
Secretary may waive any provision of section 202 of the Housing Act of
1959 and section 811 of the National Affordable Housing Act (including
the provisions governing the terms and conditions of project rental
assistance and tenant-based assistance) that the Secretary determines
is not necessary to achieve the objectives of these programs, or that
otherwise impedes the ability to develop, operate or administer
projects assisted under these programs, and may make provision for
alternative conditions or terms where appropriate: Provided further,
That of the total amount provided under this head, $200,000,000 shall
be for the development or acquisition cost of public housing for Indian
families, including amounts for housing under the mutual help
homeownership opportunity program under section 202 of the Act (42
U.S.C. 1437bb): Provided further, That of the total amount provided
under this head, the Secretary shall provide $464,442 to the Utah
Housing Finance Agency, in lieu of amounts lost to such agency in bond
refinancings during 1994, for its use in accordance with the
immediately preceding proviso.
prevention of resident displacement
For activities and assistance to prevent the involuntary
displacement of low-income families, the elderly and the disabled
because of the loss of affordable housing stock, expiration of subsidy
contracts or expiration of use restrictions, or other changes in
housing assistance arrangements, $4,775,000,000, to remain available
until expended: Provided, That of the total amount provided under this
head, $3,800,000,000 shall be for assistance under the United States
Housing Act of 1937 (42 U.S.C. 1437) for use in connection with
expiring or terminating section 8 subsidy contracts: Provided further,
That the Secretary may determine not to apply section 8(o)(6)(B) of the
Act to housing vouchers during fiscal year 1997: Provided further, That
of the total amount provided under this head, $800,000,000 shall be for
amendments to section 8 contracts other than contracts for projects
developed under section 202 of the Housing Act of 1959, as amended:
Provided further, That of the total amount provided under this head,
$175,000,000 shall be for assistance under the United States Housing
Act of 1937 (42 U.S.C. 1437) for nonelderly disabled families
relocating pursuant to designation of a public housing development
under section 7 of such Act, for a demonstration linking housing
assistance to State welfare reform initiatives to help families make
the transition from welfare to work and for housing assistance for
relocating residents of properties (i) that are owned by the Secretary
and being disposed of; (ii) that are discontinuing section 8 project-
based assistance; or (iii) subject to special workout assistance team
intervention compliance actions: Provided, That of the total amount
made available under this head, $50,000,000 shall be made available to
nonelderly disabled families affected by the designation of a public
housing development under section 7 of such Act or the establishment of
preferences in accordance with section 651 of the Housing and Community
Development Act of 1992 (42 U.S.C. 13611).
preserving existing housing investment
For operating, maintaining, revitalizing, rehabilitating,
preserving, and protecting existing housing developments for low income
families, the elderly and the disabled, $6,740,000,000, to remain
available until expended: Provided, That of the total amount made
available under this head, $2,900,000,000 shall be available for
payments to public housing agencies and Indian housing authorities for
operating subsidies for low-income housing projects as authorized by
section 9 of the United States Housing Act of 1937, as amended (42
U.S.C. 1437g): Provided further, That of the total amount made
available under this head, $2,500,000,000 shall be available for
modernization of existing public housing projects as authorized under
section 14 of the United States Housing Act of 1937, as amended (42
U.S.C. 1437l): Provided further, That of the total amount made
available under this head, $550,000,000 shall be for grants to public
housing agencies for assisting in the demolition of obsolete public
housing projects or portions thereof, the revitalization (where
appropriate) of sites (including remaining public housing units) on
which such projects are located, replacement housing which will avoid
or lessen concentrations of very low-income families, and tenant-based
assistance in accordance with section 8 of the United States Housing
Act of 1937; and for providing replacement housing and assisting
tenants to be displaced by the demolition, of which the Secretary may
use up to $2,500,000 for technical assistance, to be provided directly
or indirectly by grants, contracts or cooperative agreements, including
training and cost of necessary travel for participants in such
training, by or to officials and employees of the Department and of
public housing agencies and to residents: Provided further, That of the
total amount provided under this head, $500,000,000 shall be available
for use in conjunction with properties that are eligible for assistance
under the Low Income Housing Preservation and Resident Homeownership
Act of 1990 (LIHPRHA) or the Emergency Low-Income Housing Preservation
Act of 1987 (ELIHPA): Provided further, That amounts recaptured from
interest reduction payment contracts for section 236 projects whose
owners prepay their mortgages during fiscal year 1997 shall be
rescinded: Provided further, That the Secretary may continue to impose
a moratorium on the acceptance of initial notices of intent by
potential recipients of such funding: Provided further, That funding
shall be limited to: (1) tenant-based assistance under the terms of the
tenth and eleventh provisos of the second undesignated paragraph under
the ``Annual Contributions for Assisted Housing'' head of the
Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1996; (2) plans of action for
sales of projects to nonprofit organizations, tenant-sponsored
organizations and other priority purchasers; (3) projects that are
subject to a repayment or settlement agreement that was executed
between the owner and the Secretary prior to September 1, 1995; (4)
projects for which submissions were delayed as a result of their
location in areas that were designated as a Federal disaster area in a
Presidential Disaster Declaration; and (5) projects whose processing
was, in fact, or in practical effect, suspended, deferred, or
interrupted for a period of nine months or more because of differing
interpretations, by the Secretary and an owner concerning the timing of
the ability of an uninsured section 236 property to prepay or by the
Secretary and a State or local rent regulatory agency, concerning the
effect of a presumptively applicable State or local rent control law or
regulation on the determination of preservation value under section 213
of LIHPRHA, as amended, if the owner of such project filed a notice of
intent to extend the low-income affordability restrictions of the
housing, or transfer to a qualified purchaser who would extend such
restrictions, on or before November 1, 1993: Provided further, That
priority shall be given to funding tenant-based assistance under the
terms of the tenth and eleventh provisos of the second undesignated
paragraph under the ``Annual Contributions for Assisted Housing'' head
of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1996, and
plans of action for sales of projects to nonprofit organizations,
tenant-sponsored organizations, and other priority purchasers: Provided
further, That the Secretary may give priority to funding approved plans
of action for the following projects: (1) projects that are subject to
a repayment or settlement agreement that was executed between the owner
and the Secretary prior to September 1, 1995; (2) projects for which
submissions were delayed as a result of their location in areas that
were designated as a Federal disaster area in a Presidential Disaster
Declaration; and (3) projects whose processing was, in fact, or in
practical effect, suspended, deferred, or interrupted for a period of
nine months or more because of differing interpretations, by the
Secretary and an owner concerning the timing of the ability of an
uninsured section 236 property to prepay or by the Secretary and a
State or local rent regulatory agency, concerning the effect of a
presumptively applicable State or local rent control law or regulation
on the determination of preservation value under section 213 of
LIHPRHA, as amended, if the owner of such project filed a notice of
intent to extend the low-income affordability restrictions of the
housing, or transfer to a qualified purchaser who would extend such
restrictions, on or before November 1, 1993: Provided further, That
section 241(f) of the National Housing Act is repealed and insurance
under such section shall not be offered as an incentive under LIHPRHA
and ELIHPA: Provided further, That a capital loan may be provided as an
incentive under LIHPRHA or ELIHPA on such terms and conditions as the
Secretary may prescribe: Provided further, That the following provisos
under the second undesignated heading under the ``Annual Contributions
for Assisted Housing'' head of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations
Act, 1996 shall continue in effect: the fourth proviso, the sixth
proviso, the seventh proviso, the ninth proviso, the tenth proviso, the
eleventh proviso, and the twelfth proviso: Provided further, That
notwithstanding any other provision of law, effective October 1, 1997,
the Secretary shall suspend further funding of plans of action:
Provided further, That of the total amount provided under this head
$290,000,000 shall be for grants to public and Indian housing agencies
for use in eliminating crime in public housing projects authorized by
42 U.S.C. 11901-11908, for grants for federally assisted low-income
housing authorized by 42 U.S.C. 11909, and for drug information
clearinghouse services authorized by 42 U.S.C. 11921-11925, of which
$10,000,000 shall be for grants, technical assistance, contracts and
other assistance training, program assessment, and execution for or on
behalf of public housing agencies and resident organizations (including
the cost of necessary travel for participants in such training), up to
$5,000,000 of which may be used in connection with efforts to combat
violent crime in public and assisted housing under the Operation Safe
Home program administered by the Inspector General of the Department of
Housing and Urban Development, and up to $5,000,000 of which may be
provided to the Office of Inspector General for Operation Safe Home:
Provided further, That the term ``drug-related crime'', as defined in
42 U.S.C. 11905(2), shall also include other types of crime as
determined by the Secretary: Provided further, That notwithstanding
section 5130(c) of the Anti-Drug Abuse Act of 1988 (42 U.S.C.
11909(c)), the Secretary may determine not to use any such funds to
provide public housing youth sports grants.
(15)Page 28, line 5, strike out all after ``1999,'' down to and
including ``and'' in line 7
(16)Page 28, line 7, strike out [$61,400,000] and insert: $68,500,000
(17)Page 28, line 11, strike out [$1,000,000] and insert: $1,500,000
(18)Page 29, after line 6 insert:
Of the amount provided under this heading, the Secretary of Housing
and Urban Development may use up to $50,000,000 for grants to public
housing agencies (including Indian housing authorities), nonprofit
corporations, and other appropriate entities for a supportive services
program to assist residents of public and assisted housing, former
residents of such housing receiving tenant-based assistance under
section 8 of such Act (42 U.S.C. 1437f), and other low-income families
and individuals to become self-sufficient: Provided, That the program
shall provide supportive services, principally for the benefit of
public housing residents, to the elderly and the disabled, and to
families with children where the head of household would benefit from
the receipt of supportive services and is working, seeking work, or is
preparing for work by participating in job training or educational
programs: Provided further, That the supportive services shall include
congregate services for the elderly and disabled, service coordinators,
and coordinated educational, training, and other supportive services,
including academic skills training, job search assistance, assistance
related to retaining employment, vocational and entrepreneurship
development and support programs, transportation, and child care:
Provided further, That the Secretary shall require applications to
demonstrate firm commitments of funding or services from other sources:
Provided further, That the Secretary shall select public and Indian
housing agencies to receive assistance under this head on a competitive
basis, taking into account the quality of the proposed program
(including any innovative approaches), the extent of the proposed
coordination of supportive services, the extent of commitments of
funding or services from other sources, the extent to which the
proposed program includes reasonably achievable, quantifiable goals for
measuring performance under the program over a three-year period, the
extent of success an agency has had in carrying out other comparable
initiatives, and other appropriate criteria established by the
Secretary.
(19)Page 29, after line 6 insert:
Of the amount made available under this heading, notwithstanding
any other provision of law, $20,000,000 shall be available for grants
to entities managing or operating public housing developments,
federally-assisted multifamily-housing developments, or other
multifamily-housing developments for low-income families supported by
non-Federal governmental entities or similar housing developments
supported by nonprofit private sources, to reimburse local law
enforcement entities for additional police presence in and around such
housing developments; to provide or augment such security services by
other entities or employees of the recipient agency; to assist in the
investigation and/or prosecution of drug related criminal activity in
and around such developments; and to provide assistance for the
development of capital improvements at such developments directly
relating to the security of such developments: Provided, That such
grants shall be made on a competitive basis as specified in section 102
of the HUD Reform Act.
(20)Page 29, line 8, strike out [$20,000,000] and insert: $40,000,000
(21)Page 30, line 8, after ``for'' insert: departmental
(22)Page 32, line 19, strike out [$341,595,000] and insert:
$350,595,000
(23)Page 32, line 22, strike out [$334,483,000] and insert:
$343,483,000
(24)Page 34, line 16, strike out [$202,470,000, of which $198,299,000]
and insert: $207,470,000, of which $203,299,000
(25)Page 34, line 17, after ``for'' insert: departmental
(26)Page 35, line 5, strike out [$9,101,000] and insert: $9,383,000
(27)Page 35, line 7, strike out [$9,101,000] and insert: $9,383,000
(28)Page 35, line 8, after ``for'' insert: departmental
(29)Page 36, line 13, strike out all after ``penses,'' down to and
including ``$42,00,000)'' in line 14 and insert: $976,840,000
(30)Page 36, line 14, strike out [$532,782,000] and insert:
$546,782,000
(31)Page 36, line 16, strike out [$9,101,000] and insert: $9,383,000
(32)Page 37, line 1, strike out [provided] and insert: transferred
(33)Page 37, line 8, strike out [$14,895,000] and insert: $15,751,000
(34)Page 37, strike out all after line 14, over to and including line
11 on page 38 and insert:
Sec. 201. Extenders.--(a) Public Housing Funding Flexibility.--
Section 201(a)(2) of the Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Appropriations Act,
1996 is amended by striking ``1996'' and inserting ``1997''.
(b) One-for-One Replacement of Public and Indian Housing.--Section
1002(d) of Public Law 104-19 is amended by striking ``before September
30, 1996'' and inserting ``on or before September 30, 1997''.
(c) Public and Assisted Housing Rents, Income Adjustments, and
Preferences.--(1) Section 402(a) of the Balanced Budget Downpayment
Act, I is amended by inserting after ``1995'' the following: ``, and
effective for fiscal year 1997''.
(2) Section 402(f) of such Act is amended by striking ``fiscal year
1996'' and inserting ``fiscal years 1996 and 1997''.
(3) The second sentence of section 230 of the Departments of
Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1996 is amended by inserting before the
period the following: ``during the entire time the family receives
assistance under the United States Housing Act of 1937''.
(d) Applicability to IHAS.--In accordance with section 201(b)(2) of
the United States Housing Act of 1937, the amendments made by
subsections (a), (b), and (c) shall apply to public housing developed
or operated pursuant to a contract between the Secretary of Housing and
Urban Development and an Indian housing authority.
(e) Streamlining Section 8 Tenant-Based Assistance.--Section 203(d)
of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1996 is
amended by striking ``fiscal year 1996'' and inserting ``fiscal years
1996 and 1997''.
(f) Section 8 Fair Market Rentals and Delay in Reissuance.--(1) The
first sentence of section 403(a) of the Balanced Budget Downpayment
Act, I, is amended by striking ``1996'' and inserting ``1997''.
(2) Section 403(c) of such Act is amended--
(A) by striking ``fiscal year 1996'' and inserting ``fiscal
years 1996 and 1997''; and
(B) by inserting before the semicolon the following: ``for
assistance made available during fiscal year 1996 and October
1, 1997 for assistance made available during fiscal year
1997''.
(g) Section 8 Rent Adjustments.--Section 8(c)(2)(A) of the United
States Housing Act of 1937 is amended--
(1) in the third sentence by inserting ``, fiscal year 1996
prior to April 26, 1996, and fiscal year 1997'' after ``1995'';
(2) in the fourth sentence, by striking ``For'' and
inserting ``Except for assistance under the certificate
program, for'';
(3) after the fourth sentence, by inserting the following
new sentence: ``In the case of assistance under the certificate
program, 0.01 shall be subtracted from the amount of the annual
adjustment factor (except that the factor shall not be reduced
to less than 1.0), and the adjusted rent shall not exceed the
rent for a comparable unassisted unit of similar quality, type,
and age in the market area.''; and
(4) in the last sentence, by--
(A) striking ``sentence'' and inserting ``two
sentences''; and
(B) inserting ``, fiscal year 1996 prior to April
26, 1996, and fiscal year 1997'' after ``1995''.
(35)Page 41, after line 8 insert:
Sec. 205. Use of Available Funding for Homeownership.--Up to
$20,000,000 of amounts of unobligated balances that are or become
available from the Nehemiah Housing Opportunity Grant program, repealed
under section 289(b) of the Cranston-Gonzalez National Affordable
Housing Act, Public Law 101-625, shall be available for use for
activities relating to promotion and implementation of homeownership in
targeted geographic areas, as determined by the Secretary.
(36)Page 41, after line 8 insert:
Sec. 206. Debt Forgiveness.--The Secretary of Housing and Urban
Development shall cancel the indebtedness of the Greene County Rural
Health Center relating to a loan received under the Public Facility
Loan program to establish the health center (Loan #Mis-22-PFL0096). The
Greene County Rural Health Center is hereby relieved of all liability
to the Federal Government for such loan and any fees and charges
payable in connection with such loan.
(37)Page 41, after line 8 insert:
Sec. 207. Flexible Subsidy Fund.--From the fund established by
section 236(g) of the National Housing Act, as amended, all uncommitted
balances of excess rental charges as of September 30, 1996, and any
collection during fiscal year 1997, shall be transferred, as authorized
under such section, to the fund authorized under section 201(j) of the
Housing and Community Development Amendments of 1978, as amended.
(38)Page 41, after line 8 insert:
Sec. 208. Rental Housing Assistance.--The limitation otherwise
applicable to the maximum payments that may be required in any fiscal
year by all contracts entered into under section 236 of the National
Housing Act (12 U.S.C. 1715z-1) is reduced in fiscal year 1997 by not
more than $2,000,000 in uncommitted balances of authorizations provided
for this purpose in appropriations Acts.
(39)Page 41, after line 8 insert:
Sec. 209. D.C. Modernization Funding.--Notwithstanding the
provisions of section 14(k)(5)(D) of the United States Housing Act of
1937, the withheld modernization funds that became credited in fiscal
years 1993, 1994 and 1995, due to the troubled status of the former
Department of Public and Assisted Housing of the District of Columbia,
shall be made available without diminution to its successor, the
District of Columbia Housing Authority, at such time between the
effective date of this Act and the end of fiscal year 1998 as the
District of Columbia Housing Authority is no longer deemed ``mod-
troubled'' under section 6(j)(2)(A)(i) of such Act; after fiscal year
1998, the District of Columbia Housing Authority shall become subject
to the provisions of section 14(k)(5)(D) of such Act should it remain
mod-troubled.
(40)Page 41, after line 8 insert:
Sec. 210. Financing Adjustment Factors.--Fifty per centum of the
amounts of budget authority, or in lieu thereof 50 per centum of the
cash amounts associated with such budget authority, that are recaptured
from projects described in section 1012(a) of the Stewart B. McKinney
Homeless Assistance Amendments Act of 1988 (Public Law 100-628, 102
Stat. 3224, 3268) shall be rescinded, or in the case of cash, shall be
remitted to the Treasury, and such amounts of budget authority or cash
recaptured and not rescinded or remitted to the Treasury shall be used
by State housing finance agencies or local governments or local housing
agencies with projects approved by the Secretary of Housing and Urban
Development for which settlement occurred after January 1, 1992, in
accordance with such section.
(41)Page 41, after line 8 insert:
SEC. 211. SECTION 8 CONTRACT RENEWAL AUTHORITY.
(a) Definitions.--For purposes of this section--
(1) the term ``expiring contract'' means a contract for
project-based assistance under section 8 of the United States
Housing Act of 1937 that expires during fiscal year 1997;
(2) the term ``family'' has the same meaning as in section
3(b) of the United States Housing Act of 1937;
(3) the term ``multifamily housing project'' means a
property consisting of more than 4 dwelling units that is
covered in whole or in part by a contract for project-based
assistance under section 8 of the United States Housing Act of
1937;
(4) the term ``owner'' has the same meaning as in section
8(f) of the United States Housing Act of 1937;
(5) the term ``project-based assistance'' means rental
assistance under section 8 of the United States Housing Act of
1937 that is attached to a multifamily housing project;
(6) the term ``public agency'' means a State housing
finance agency, a local housing agency, or other agency with a
public purpose and status;
(7) the term ``Secretary'' means the Secretary of Housing
and Urban Development; and
(8) the term ``tenant-based assistance'' has the same
meaning as in section 8(f) of the United States Housing Act of
1937.
(b) Section 8 Contract Renewal Authority.--
(1) In general.--Notwithstanding section 405(a) of the
Balanced Budget Downpayment Act, I, upon the request of the
owner of a multifamily housing project that is covered by an
expiring contract, the Secretary shall use amounts made
available for the renewal of assistance under section 8 of the
United States Housing Act of 1937 to renew the expiring
contract as project-based assistance for a period of not more
than 1 year, at rent levels that are equal to those under the
expiring contract as of the date on which the contract expires,
only if those rent levels do not exceed 120 percent of fair
market rent for the market area in which the project is
located.
(2) Exemption for state and local housing agency
projects.--Notwithstanding paragraph (1), upon the expiration
of an expiring contract with rent levels that exceed the
percentage described in that paragraph, if the Secretary
determines that the primary financing or mortgage insurance for
the multifamily housing project that is covered by that
expiring contract was provided by a public agency, the
Secretary shall, upon the request of the public agency, renew
the expiring contract--
(A) for a period of not more than 1 year; and
(B) at rent levels that are equal to those under
the expiring contract as of the date on which the
contract expires.
(3) Ineligible contracts.--
(A) Participation in demonstration.--For contracts
covering a multifamily housing project that expire
during fiscal year 1997 with rent levels that exceed
the percentage described in paragraph (1), the
Secretary shall, at the request of the owner of the
project, include that multifamily housing project in
the demonstration program under section 212 of this
Act. The Secretary shall ensure, to the maximum extent
practicable, that a project in the demonstration is
maintained as affordable for low-income families for
the maximum feasible period of time.
(B) Effect of material adverse actions or
omissions.--Notwithstanding paragraph (1) or any other
provision of law, the Secretary shall not renew an
expiring contract if the Secretary determines that the
owner of the multifamily housing project has engaged in
material adverse financial or managerial actions or
omissions with regard to the project (or with regard to
other similar projects if the Secretary determines that
such actions or omissions constitute a pattern of
mismanagement that would warrant suspension or
debarment by the Secretary).
(C) Transfer of property.--For properties
disqualified from the demonstration program because of
actions by an owner or purchaser in accordance with
subparagraph (B), the Secretary shall establish
procedures to facilitate the voluntary sale or transfer
of the property, with a preference for tenant
organizations and tenant-endorsed community-based
nonprofit and public agency purchasers meeting such
reasonable qualifications as may be established by the
Secretary.
(4) Tenant protections.--To the extent provided in advance
in an appropriations Act, any family residing in an assisted
unit in a multifamily housing project that is covered by an
expiring contract that is not renewed, shall be offered tenant-
based assistance before the date on which the contract expires
or is not renewed.
SEC. 212. FHA MULTIFAMILY DEMONSTRATION AUTHORITY.
(a) In General.--
(1) Repeal.--
(A) In general.--Section 210 of the Departments of
Veterans Affairs and Housing and Urban Development and
Independent Agencies Appropriations Act, 1996 (110
Stat. 1321) is repealed.
(B) Exception.--Notwithstanding the repeal under
subparagraph (A), amounts made available under section
210(f) the Departments of Veterans Affairs and Housing
and Urban Development and Independent Agencies
Appropriations Act, 1996 shall remain available for the
demonstration program under this section through the
end of fiscal year 1997.
(2) Savings provisions.--Nothing in this section shall be
construed to affect any commitment entered into before the date
of enactment of this Act under the demonstration program under
section 210 of the Departments of Veterans Affairs and Housing
and Urban Development and Independent Agencies Appropriations
Act, 1996.
(3) Definitions.--For purposes of this section--
(A) the term ``affordable'' means, with respect to
a dwelling unit, a unit for which the rents are
restricted to the rent levels established under a
mortgage restructuring;
(B) the term ``demonstration program'' means the
program established under subsection (b);
(C) the term ``designee'' means a third-party
public agency that enters into an arrangement with the
Secretary under subsection (b)(3);
(D) the term ``expiring contract'' means a contract
for project-based assistance under section 8 of the
United States Housing Act of 1937 that expires during
fiscal year 1997;
(E) the term ``family'' has the same meaning as in
section 3(b) of the United States Housing Act of 1937;
(F) the term ``multifamily housing project'' means
a property consisting of more than 4 dwelling units
that is covered in whole or in part by a contract for
project-based assistance;
(G) the term ``owner'' has the same meaning as in
section 8(f) of the United States Housing Act of 1937;
(H) the term ``project-based assistance'' means
rental assistance under section 8 of the United States
Housing Act of 1937 that is attached to a multifamily
housing project;
(I) the term ``Secretary'' means the Secretary of
Housing and Urban Development; and
(J) the term ``tenant-based assistance'' has the
same meaning as in section 8(f) of the United States
Housing Act of 1937.
(b) Demonstration Authority.--
(1) In general.--The Secretary shall administer a
demonstration program with respect to multifamily projects--
(A) whose owners agree to participate;
(B) with rents on units assisted under section 8 of
the United States Housing Act of 1937 that are, in the
aggregate, in excess of 120 percent of the fair market
rent of the market area in which the project is
located; and
(C) the mortgages of which are insured under the
National Housing Act.
(2) Purpose.--The demonstration program shall be designed
to test the feasibility and desirability of--
(A) ensuring, to the maximum extent practicable,
that the debt service and operating expenses, including
adequate reserves, attributable to such multifamily
projects can be supported at the comparable market rent
with or without mortgage insurance under the National
Housing Act and with or without additional subsidies;
(B) utilizing project-based assistance, while
taking into account the capital needs of the projects
and the need for assistance to low- and very low-income
families in such projects; and
(C) preserving low-income rental housing
affordability and availability while reducing the long-
term cost of project-based assistance.
(3) Designees.--In carrying out the demonstration program,
the Secretary may enter into arrangements with one or more
third-party public entities, under which the Secretary may
provide for the assumption by the designee (by delegation, by
contract, or otherwise) of some or all of the functions,
obligations, and benefits of the Secretary.
(c) Goals.--
(1) In general.--The Secretary shall carry out the
demonstration program in a manner that will protect the
financial interests of the Federal Government through debt
restructuring and subsidy reduction and, in the least costly
fashion, address the goals of--
(A) maintaining existing affordable housing stock
in a decent, safe, and sanitary condition;
(B) minimizing the involuntary displacement of
tenants;
(C) taking into account housing market conditions;
(D) encouraging responsible ownership and
management of property;
(E) minimizing any adverse income tax impact on
property owners; and
(F) minimizing any adverse impacts on residential
neighborhoods and local communities.
(2) Balance of competing goals.--In determining the manner
in which a mortgage is to be restructured or a subsidy reduced
under this subsection, the Secretary may balance competing
goals relating to individual projects in a manner that will
further the purposes of this section.
(d) Joint Venture Arrangements.--
(1) In general.--In carrying out the demonstration program,
the Secretary may enter into joint venture arrangements with
designees, under which the Secretary may provide for the
assumption by the third parties (by delegation, by contract, or
otherwise) of some or all of the functions, obligations, and
benefits of the Secretary.
(2) Preference.--In entering into any arrangement under
this subsection, the Secretary shall give preference to State
housing finance agencies and local housing agencies to act as
designees to the extent such agencies are determined to be
qualified by the Secretary.
(3) Public agencies.--Each joint venture arrangement
entered into under this subsection shall include a public
agency as the primary partner.
(4) Designee partnerships.--For purposes of any joint
venture arrangement under this subsection, designees are
encouraged to develop partnerships with each other, and to
contract or subcontract with other entities, including--
(A) public housing agencies;
(B) financial institutions;
(C) mortgage servicers;
(D) nonprofit and for-profit housing organizations;
(E) the Federal National Mortgage Association;
(F) the Federal Home Loan Mortgage Corporation;
(G) Federal Home Loan Banks; and
(H) other State or local mortgage insurance
companies or bank lending consortia.
(e) Long-Term Affordability.--After the renewal of a section 8
contract pursuant to a restructuring under this section, the owner
shall accept each offer to renew the section 8 contract, for a period
of 20 years from the date of the renewal under the demonstration, if
the offer to renew is on terms and conditions, as agreed to by the
Secretary or designee and the owner under a restructuring.
(f) Procedures.--
(1) Notice of participation in demonstration.--Not later
than 45 days before the date of expiration of an expiring
contract (or such later date, as determined by the Secretary,
for good cause), the owner of the multifamily housing project
covered by that expiring contract shall notify the Secretary or
designee of the owner's intent to participate in the
demonstration program.
(2) Demonstration contract.--Upon receipt of a notice under
paragraph (1), the owner and the Secretary or designee shall
enter into a demonstration contract, which shall provide for
initial section 8 project-based rents at the same rent levels
as those under the expiring contract or, if practical, the
budget-based rent to cover debt service, reasonable operating
expenses (including reasonable and appropriate services), and a
reasonable return on equity, as determined solely by the
Secretary. The demonstration contract shall be for the minimum
term necessary for the rents and mortgages of the multifamily
housing project to be restructured under the demonstration
program.
(g) HUD-Owned and HUD-Held Mortgages.--For purposes of carrying out
the demonstration program--
(1) the Secretary may manage and dispose of multifamily
properties owned by the Secretary and multifamily mortgages
held by the Secretary, on such terms and conditions as the
Secretary may determine, without regard to any other provision
of law; and
(2) as provided under subsection (b)(3), the Secretary may
delegate to one or more designees the authority to carry out
some or all of the functions and responsibilities of the
Secretary in connection with mortgages held by the Secretary
under the National Housing Act.
(h) Demonstration Actions.--For purposes of carrying out the
demonstration program, and in order to ensure that contract rights are
not abrogated, subject to such third party consents as are necessary
(if any), including consent by the Government National Mortgage
Association if it owns a mortgage insured by the Secretary, consent by
an issuer under the mortgage-backed securities program of the
Association, subject to the responsibilities of the issuer to its
security holders and the Association under such program, and consent by
parties to any contractual agreement which the Secretary proposes to
modify or discontinue, the Secretary or, except with respect to
paragraph (2), designee, shall take not less than 1 of the actions
specified in paragraphs (6), (7), and (8) and may take any of the
following actions:
(1) Removal of restrictions.--
(A) In general.--Notwithstanding any other
provision of law, and subject to the agreement of the
owner of the project and after consultation with the
tenants of the project, the Secretary or designee may
remove, relinquish, extinguish, modify, or agree to the
removal of any mortgage, regulatory agreement, project-
based assistance contract, use agreement, or
restriction that had been imposed or required by the
Secretary, including restrictions on distributions of
income which the Secretary or designee determines would
interfere with the ability of the project to operate
without above-market rents.
(B) Accumulated residual receipts.--The Secretary
or designee may require an owner of a property assisted
under the section 8 new construction/substantial
rehabilitation program under the United States Housing
Act of 1937 to apply any accumulated residual receipts
toward effecting the purposes of this section.
(2) Reinsurance.--With respect to not more than 5,000 units
during fiscal year 1997, the Secretary may enter into contracts
to purchase reinsurance, or enter into participations or
otherwise transfer economic interest in contracts of insurance
or in the premiums paid, or due to be paid, on such insurance
to the designee, on such terms and conditions as the Secretary
may determine.
(3) Induce participation of third parties.--Notwithstanding
any other provision of law, of amounts made available under
appropriations Acts, including amounts made available under
this section, the Secretary or designee may enter into such
agreements, provide such concessions, incur such costs, make
such grants (including grants to cover all or a portion of the
rehabilitation costs for a project) and other payments, and
provide other valuable consideration, as may reasonably be
necessary to induce participation of owners, lenders,
servicers, third parties, and other entities in the
demonstration program, including the use of fees for contract
administration under section 8 of the United States Housing Act
of 1937 for purposes of any contract restructured or renewed
under the demonstration program.
(4) Full or partial payment of claim.--Notwithstanding any
other provision of law, the Secretary may make a full payment
of claim or partial payment of claim prior to default.
(5) Credit enhancement.--
(A) In general.--The Secretary or designee may
provide FHA multifamily mortgage insurance,
reinsurance, or other credit enhancement alternatives,
including retaining the existing FHA mortgage insurance
on a restructured first mortgage at market value or
using the multifamily risk-sharing mortgage programs,
as provided under section 542 of the Housing and
Community Development Act of 1992.
(B) Effect of limitations.--Any limitations on the
number of units available for mortgage insurance under
section 542 shall not apply to insurance issued for
purposes of the demonstration program.
(C) Maximum percentage.--During fiscal year 1997,
not more than 10 percent of multifamily housing
projects with expiring contracts may be restructured
without FHA insurance, unless otherwise agreed by the
owner of a project.
(D) Credit subsidy.--Subject to the funding
restrictions under subsection (l), any credit subsidy
costs of providing mortgage insurance shall be paid
from the General Insurance Fund and the Special Risk
Insurance Fund.
(6) Mortgage restructuring.--
(A) In general.--The Secretary or designee may
restructure mortgages to provide a restructured first
mortgage to cover debt service and operating expenses
at the market rent, and a second mortgage equal to the
difference between the restructured first mortgage and
the mortgage balance of the eligible multifamily
housing project at the time of restructuring.
(B) Interest rate on second mortgage.--The second
mortgage shall bear interest at a rate not to exceed
the applicable Federal rate for a term not to exceed 40
years.
(C) Timing of payments.--If the first mortgage
remains outstanding, payments of interest and principal
on the second mortgage shall be made from all excess
project income only after the payment of all reasonable
and necessary operating expenses (including deposits in
a reserve for replacement), debt service on the first
mortgage, and such other expenditures as may be
approved by the Secretary.
(D) Assumption of second mortgage.--The second
mortgage shall be assumable by any subsequent purchaser
of the multifamily housing project.
(E) Disposition of property.--The balance of the
principal and accrued interest due under the second
mortgage shall be fully payable upon disposition of the
property, unless the mortgage is assumed under
subparagraph (D).
(F) Second mortgage repayment.--The owner shall
begin repayment of the second mortgage upon full
payment of the first mortgage in equal monthly
installments in an amount equal to the monthly
principal and interest payments formerly paid under the
first mortgage.
(G) Failure to comply.--The principal and interest
of a second mortgage shall be immediately due and
payable upon a finding by the Secretary that an owner
has failed to materially comply with this section or
any applicable requirement of the United States Housing
Act of 1937 in relation to the project at issue.
(H) Credit subsidy.--Subject to the funding
restrictions under subsection (l), any credit subsidy
costs of providing a second mortgage shall be paid from
the General Insurance Fund and the Special Risk
Insurance Fund.
(7) Debt forgiveness.--The Secretary or designee, for good
cause and at the request of the owner of a multifamily housing
project, may forgive at the time of the restructuring of a
mortgage any portion of a debt on the project that exceeds the
market value of the project. In exchange for debt forgiveness
under this paragraph, the project shall remain affordable to
low-income families for a period of 20 years, unless otherwise
provided by the Secretary.
(8) Budget-based rents.--During fiscal year 1997, the
Secretary or designee may renew an expiring contract, for a
period of not more than 1 year, at a budget-based rent that
covers debt service, reasonable operating expenses (including
all reasonable and appropriate services), and a reasonable
return on equity, as determined solely by the Secretary, but
that does not exceed the rent levels under the expiring
contract. The Secretary may establish a preference under the
demonstration program for budget-based rents for unique housing
projects, such as projects designated for occupancy by elderly
families in rural areas.
(i) Community and Tenant Input.--In carrying out this section, the
Secretary shall develop procedures to provide appropriate and timely
notice, including an opportunity for comment, to officials of the unit
of general local government affected, the community in which the
project is situated, and the tenants of the project.
(j) Limitation on Demonstration Authority.--The Secretary shall
carry out the demonstration program with respect to mortgages not to
exceed 50,000 units.
(k) Priority for Participation.--The Secretary or designee shall
give priority for participation in the demonstration program to any
owner of an eligible multifamily housing project with an expiring
contract for project-based assistance.
(l) Funding.--In addition to the $30,000,000 made available under
section 210 of the Departments of Veterans Affairs and Housing and
Urban Development and Independent Agencies Appropriations Act, 1996
(110 Stat. 1321), for the costs (including any credit subsidy costs
associated with providing direct loans or mortgage insurance) of
modifying and restructuring loans held or guaranteed by the Federal
Housing Administration, as authorized under this section, $10,000,000,
are hereby appropriated, to remain available until September 30, 1998.
(m) Report to Congress.--
(1) In general.--
(A) Biannual reports.--Not less than biannually,
the Secretary shall submit to the Congress a report
describing and assessing the programs carried out under
the demonstration program.
(B) Final report.--Not later than 6 months after
the end of the demonstration program, the Secretary
shall submit to the Congress a final report on the
demonstration program.
(2) Contents.--Each report submitted under paragraph (1)
shall include--
(A) any findings and recommendations for
legislative action; and
(B) a description of the status of each multifamily
housing project selected for the demonstration program.
(3) Contents of final report.--The report submitted under
paragraph (1)(B) may include--
(A) with respect to each multifamily housing
project participating in the demonstration program,
information relating to--
(i) the size of the project;
(ii) the geographic locations of the
project, by State and region;
(iii) the physical and financial condition
of the project;
(iv) the occupancy profile of the project,
including the income, family size, race, and
ethnic origin of the tenants, and the rents
paid by those tenants;
(v) a description of actions undertaken
pursuant to this section, including a
description of the effectiveness of such
actions and any impediments to the transfer or
sale of the projects;
(vi) a description of the extent to which
the demonstration program has displaced tenants
of the project;
(vii) a description of the impact to which
the demonstration program has affected the
localities and communities in which the
projects are located; and
(viii) a description of the extent to which
the demonstration program has affected the
owners of the projects; and
(B) a description of any of the functions performed
in connection with this section that are transferred or
contracted out to public or private entities or to
State entities.
(42)Page 41, after line 8 insert:
Sec. 213. Hawaiian Home Lands.--Section 282 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12832) is amended
by adding at the end the following new sentence: ``The Secretary may
waive this section in connection with the use of funds made available
under this title on lands set aside under the Hawaiian Homes Commission
Act, 1920 (42 Stat. 108).''.
(43)Page 41, after line 8 insert:
Sec. 214. Involuntary Separations.--In order to avoid or minimize
the need for involuntary separations due to a reduction in force,
departmental restructuring, reorganization, transfer of function, or
similar action affecting the Department of Housing and Urban
Development, the Secretary shall establish a program under which
separation pay, subject to the availability of appropriated funds, may
be offered to encourage employees to separate from service voluntarily,
whether by retirement or resignation: Provided, That payments to
individual employees shall not exceed $25,000: Provided further, That
in addition to any other payments which it is required to make under
subchapter III of chapter 83 or chapter 84 of title 5, United States
Code, HUD shall remit to the Office of Personnel Management for deposit
in the Treasury of the United States to the credit of the Civil Service
Retirement and Disability Fund on amount equal to 15 percent of the
final basic pay of each employee who is covered under subchapter III of
chapter 83 or chapter 84 of title 5 to whom a voluntary separation
incentive has been paid under this paragraph.
(44)Page 41, after line 8 insert:
Sec. 215. Requirement for HUD To Maintain Public Notice and Comment
Rulemaking.--The Secretary of Housing and Urban Development shall
maintain all current requirements under part 10 of the Department of
Housing and Urban Development's regulations (24 CFR part 10) with
respect to the Department's policies and procedures for the
promulgation and issuance of rules, including the use of public
participation in the rulemaking process.
(45)Page 41, after line 8 insert:
SEC. 216. COMMUNITY DEVELOPMENT BLOCK GRANTS.
Section 102(a)(6)(D) of the Housing and Community Development Act
of 1974 (42 U.S.C. 5302(a)(6)(D)) is amended--
(1) in clause (iv), by striking ``or'' at the end;
(2) in clause (v), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following new clause:
``(vi) has entered into a local cooperation
agreement with a metropolitan city that received
assistance under section 106 because of such
classification, and has elected under paragraph (4) to
have its population included with the population of the
county for the purposes of qualifying as an urban
county, except that to qualify as an urban county under
this clause, the county must--
``(I) have a combined population of not
less than 210,000, excluding any metropolitan
city located in the county that is not
relinquishing its metropolitan city
classification, according to the 1990 decennial
census of the Bureau of the Census of the
Department of Commerce;
``(II) including any metropolitan cities
located in the county, have had a decrease in
population of 10,061 from 1992 to 1994,
according to the estimates of the Bureau of the
Census of the Department of Commerce; and
``(III) have had a Federal naval
installation that was more than 100 years old
closed by action of the Base Closure and
Realignment Commission appointed for 1993 under
the Base Closure and Realignment Act of 1990,
directly resulting in a loss of employment by
more than 7,000 Federal Government civilian
employees and more than 15,000 active duty
military personnel, which naval installation
was located within 1 mile of an enterprise
community designated by the Secretary pursuant
to section 1391 of the Internal Revenue Code of
1986, which enterprise community has a
population of not less than 20,000, according
to the 1990 decennial census of the Bureau of
the Census of the Department of Commerce.''.
(46)Page 41, after line 8 insert:
SEC. 217. FAIR HOUSING AND FREE SPEECH.
None of the amounts made available under this Act may be used
during fiscal year 1997 to investigate or prosecute under the Fair
Housing Act any otherwise lawful activity engaged in by one or more
persons, including the filing or maintaining of a nonfrivolous legal
action, that is engaged in solely for the purpose of achieving or
preventing action by a government official or entity, or a court of
competent jurisdiction.
(47)Page 41, after line 8 insert:
SEC. 218. MORTGAGE INSURANCE.
None of the funds appropriated under this Act may be used to give
final approval to any proposal to provide mortgage insurance having a
value in excess of $250,000,000 for any project financing for which may
be guaranteed under section 220 of the National Housing Act (12 U.S.C.
1715k), unless the Secretary has transmitted to the President pro
tempore of the Senate and the Speaker of the House the Secretary's
justification for such guarantee and no final approval shall be given
until the justification has laid before the Congress for a period of
not less than 30 days.
(48)Page 44, line 2, strike out [$365,000,000] and insert: $400,500,000
(49)Page 44, line 10, strike out [$40,000,000] and insert: $59,000,000
(50)Page 44, line 14, strike out [$201,000,000] and insert:
$215,000,000
(51)Page 44, line 19, after ``program)'' insert: , of which not more
than $40,000,000 may be used to administer, reimburse or support any
national service program authorized under section 121(d)(2) of such Act
(42 U.S.C. 12581(d)(2))
(52)Page 44, line 20, strike out [$5,000,000] and insert: $5,500,000
(53)Page 45, line 7, strike out [$17,500,000] and insert: $18,000,000
(54)Page 45, line 12, strike out [$41,500,000] and insert: $43,000,000
(55)Page 46, lines 21 and 22, strike out [(increased by $1,411,000)]
(56)Page 46, line 22, strike out [$634,000] and insert: $700,000
(57)Page 48, lines 3 and 4, strike out [$540,000,000 (reduced by
$1,500,000)] and insert: $545,000,000
(58)Page 48, lines 21 and 22, strike out [$1,703,000,000 (increased by
$1,500,000)] and insert: $1,713,000,000
(59)Page 49, line 11, strike out [$107,220,000] and insert: $27,220,000
(60)Page 49, line 11, strike out all after ``expended'' down to and
including ``limitation'' in line 24
(61)Page 50, line 9, strike out [$2,201,200,000] and insert:
$1,394,245,000 (of which $100,000,000 shall not become available until
September 1, 1997)
(62)Page 50, line 10, strike out [$1,951,200,000] and insert:
$1,144,245,000
(63)Page 50, line 24, strike out [$59,000,000] and insert: $64,000,000
(64)Page 51, line 13, strike out all after ``1997'' down to and
including ``obligation'' in line 17
(65)Page 51, line 17, strike out all after ``obligation'' down to and
including ``Jersey'' in line 22
(66)Page 52, lines 8 and 9, strike out [$46,500,000 (increased by
$20,000,000)] and insert: $60,000,000
(67)Page 53, line 5, strike out [$2,768,207,000] and insert:
$2,815,207,000
(68)Page 53, line 6, strike out [$1,800,000,000] and insert:
$1,976,000,000
(69)Page 53, line 19, after ``address'' insert: water supply and
(70)Page 53, line 20, strike out all after ``Villages;'' down to and
including ``Act;'' in line 24
(71)Page 54, line 7, after ``programs'' insert: : Provided further,
That notwithstanding any other provision of law, beginning in fiscal
year 1997 the Administrator may make grants to States, from funds
available for obligation in the State under title II of the Federal
Water Pollution Control Act, as amended, for administering the
completion and closeout of the State's construction grants program,
based on a budget annually negotiated with the State
(72)Page 54, line 8, strike out [$1,800,000,000] and insert:
$1,976,000,000
(73)Page 54, line 10, strike out [$450,000,000] and insert:
$1,275,000,000
(74)Page 54, line 11, strike out all after ``funds'' down to and
including ``amended'' in line 15
(75)Page 54, line 15, after ``amended'' insert: : Provided further,
That the funds made available in Public Law 103-327 for a grant to the
City of Bangor, Maine, in accordance with House Report 103-715, shall
be available for a grant to that city for meeting combined sewer
overflow requirements
(76)Page 54, line 15, after ``amended'' insert: : Provided further,
That, notwithstanding any other provision of law, a State that did not
receive, in fiscal year 1996, grants under title VI of the Federal
Water Pollution Control Act, as amended, that obligated all the funds
allotted to it from the $725,000,000 that became available for that
purpose on August 1, 1996, may receive reallotted funds from the fiscal
year 1996 appropriation, provided the State receives such grants in
fiscal year 1997
(77)Page 56, strike out lines 3 through 9
(78)Page 57, line 2, strike out [$2,250,000] and insert: $2,436,000
(79)Page 57, line 7, strike out [$1,120,000,000] and insert:
$1,320,000,000
(80)Page 57, line 10, after ``expended'' insert: : Provided, That no
money appropriated for the Federal Emergency Management Agency may be
expended for the repair of yacht harbors or golf courses except for
debris removal: Provided further, That no money appropriated for the
Federal Emergency Management Agency may be expended for tree or shrub
replacement except in public parks: Provided further, That any funds
used for repair of any recreational facilities shall be limited to
debris removal and the repair of recreational buildings only
(81)Page 58, line 12, strike out [$168,000,000] and insert:
$166,733,000
(82)Page 58, line 16, strike out [$4,533,000] and insert: $4,673,000
(83)Page 59, line 5, strike out [$209,101,000] and insert: $199,101,000
(84)Page 59, line 21, after ``1998.'' insert: The first sentence of
section 1376(c) of the National Flood Insurance Act of 1968, as amended
(42 U.S.C. 4026), is amended by striking all after ``this subchapter''
and inserting ``such sums as may be necessary through September 30,
1997 for studies under this title.''.
(85)Page 60, line 4, after ``1994.'' insert: Section 1319 of the
National Flood Insurance Act of 1968, as amended (42 U.S.C. 4026), is
amended by striking out September 30, 1996.'' and inserting ``September
30, 1997.''.
(86)Page 62, strike out lines 18 and 19
(87)Page 62, line 23, strike out all after ``Acts'' over to and
including ``Acts'' in line 8 on page 63 and insert: : Provided further,
That notwithstanding any other provision of law, the Consumer
Information Center may accept and deposit to this account, during
fiscal year 1997 and hereafter, gifts for the purpose of defraying its
costs of printing, publishing, and distributing consumer information
and educational materials and undertaking other consumer information
activities; may expend those gifts for those purposes, in addition to
amounts appropriated or otherwise made available; and the balance shall
remain available for expenditure for such purpose
(88)Page 64, line 10, strike out [$5,662,100,000] and insert:
$5,762,100,000
(89)Page 66, after line 19 insert:
In order to avoid or minimize the need for involuntary separations
due to a reduction in force, installation closure, reorganization,
transfer of function, or similar action affecting the National
Aeronautics and Space Administration, the Administrator shall establish
a program under which separation pay, subject to the availability of
appropriated funds, may be offered to encourage employees to separate
from service voluntarily, whether by retirement or resignation:
Provided, That payments to individual employees shall not exceed
$25,000: Provided further, That in addition to any other payments which
it is required to make under subchapter III of chapter 83 or chapter 84
of title 5, United States Code, NASA shall remit to the Office of
Personnel Management for deposit in the Treasury of the United States
to the credit of the Civil Service Retirement and Disability Fund an
amount equal to 15 percent of the final basic pay of each employee who
is covered under subchapter III of chapter 83 or chapter 84 of title 5
to whom a voluntary separation incentive has been paid under this
paragraph.
(90)Page 67, lines 16 and 17, strike out [$2,422,000,000 (increased by
$9,110,000)] and insert: $2,432,000,000
(91)Page 68, line 20, strike out [$612,000,000] and insert:
$624,000,000
(92)Page 69, line 13, strike out [(reduced by $9,110,000)]
(93)Page 70, line 7, strike out [$50,000,000] and insert: $49,900,000
(94)Page 71, line 4, after ``Provided,'' insert: That this provision
does not apply to accounts that do not contain an object classification
for travel: Provided further,
(95)Page 78, after line 15 insert:
Sec. 421. (a) The purpose of this section is to provide for the
special needs of certain children of Vietnam veterans who were born
with the birth defect spina bifida, possibly as the result of the
exposure of one or both parents to herbicides during active service in
the Republic of Vietnam during the Vietnam era, through the provision
of health care and monetary benefits.
(b)(1) Part II of title 38, United States Code, is amended by
inserting after chapter 17 the following new chapter:
``CHAPTER 18--BENEFITS FOR CHILDREN OF VIETNAM VETERANS WHO ARE BORN
WITH SPINA BIFIDA
``Sec.
``1801. Definitions.
``1802. Spina bifida conditions covered.
``1803. Health care.
``1804. Vocational training and rehabilitation.
``1805. Monetary allowance.
``1806. Effective date of awards.
``Sec. 1801. Definitions
``For the purposes of this chapter--
``(1) The term `child', with respect to a Vietnam veteran,
means a natural child of the Vietnam veteran, regardless of age
or marital status, who was conceived after the date on which
the veteran first entered the Republic of Vietnam during the
Vietnam era.
``(2) The term `Vietnam veteran' means a veteran who
performed active military, naval, or air service in the
Republic of Vietnam during the Vietnam era.
``Sec. 1802. Spina bifida conditions covered
``This chapter applies with respect to all forms and manifestations
of spina bifida except spina bifida occulta.
``Sec. 1803. Health care
``(a) In accordance with regulations which the Secretary shall
prescribe, the Secretary shall provide a child of a Vietnam veteran who
is suffering from spina bifida with such health care as the Secretary
determines is needed by the child for the spina bifida or any
disability that is associated with such condition.
``(b) The Secretary may provide health care under this section
directly or by contract or other arrangement with any health care
provider.
``(c) For the purposes of this section--
``(1) The term `health care'--
``(A) means home care, hospital care, nursing home
care, outpatient care, preventive care, habilitative
and rehabilitative care, case management, and respite
care; and
``(B) includes--
``(i) the training of appropriate members
of a child's family or household in the care of
the child; and
``(ii) the provision of such
pharmaceuticals, supplies, equipment, devices,
appliances, assistive technology, direct
transportation costs to and from approved
sources of health care, and other materials as
the Secretary determines necessary.
``(2) The term `health care provider' includes specialized
spina bifida clinics, health care plans, insurers,
organizations, institutions, and any other entity or individual
who furnishes health care that the Secretary determines
authorized under this section.
``(3) The term `home care' means outpatient care,
habilitative and rehabilitative care, preventive health
services, and health-related services furnished to an
individual in the individual's home or other place of
residence.
``(4) The term `hospital care' means care and treatment for
a disability furnished to an individual who has been admitted
to a hospital as a patient.
``(5) The term `nursing home care' means care and treatment
for a disability furnished to an individual who has been
admitted to a nursing home as a resident.
``(6) The term `outpatient care' means care and treatment
of a disability, and preventive health services, furnished to
an individual other than hospital care or nursing home care.
``(7) The term `preventive care' means care and treatment
furnished to prevent disability or illness, including periodic
examinations, immunizations, patient health education, and such
other services as the Secretary determines necessary to provide
effective and economical preventive health care.
``(8) The term `habilitative and rehabilitative care' means
such professional, counseling, and guidance services and
treatment programs (other than vocational training under
section 1804 of this title) as are necessary to develop,
maintain, or restore, to the maximum extent practicable, the
functioning of a disabled person.
``(9) The term `respite care' means care furnished on an
intermittent basis for a limited period to an individual who
resides primarily in a private residence when such care will
help the individual to continue residing in such private
residence.
``Sec. 1804. Vocational training and rehabilitation
``(a) Pursuant to such regulations as the Secretary may prescribe,
the Secretary may provide vocational training under this section to a
child of a Vietnam veteran who is suffering from spina bifida if the
Secretary determines that the achievement of a vocational goal by such
child is reasonably feasible.
``(b) Any program of vocational training for a child under this
section shall be designed in consultation with the child in order to
meet the child's individual needs and shall be set forth in an
individualized written plan of vocational rehabilitation.
``(c)(1) A vocational training program for a child under this
section--
``(A) shall consist of such vocationally oriented services
and assistance, including such placement and post-placement
services and personal and work adjustment training, as the
Secretary determines are necessary to enable the child to
prepare for and participate in vocational training or
employment; and
``(B) may include a program of education at an institution
of higher education if the Secretary determines that the
program of education is predominantly vocational in content.
``(2) A vocational training program under this subsection may not
include the provision of any loan or subsistence allowance or any
automobile adaptive equipment.
``(d)(1) Except as provided in paragraph (2) and subject to
subsection (e)(2), a vocational training program under this section may
not exceed 24 months.
``(2) The Secretary may grant an extension of a vocational training
program for a child under this section for up to 24 additional months
if the Secretary determines that the extension is necessary in order
for the child to achieve a vocational goal identified (before the end
of the first 24 months of such program) in the written plan of
vocational rehabilitation formulated for the child pursuant to
subsection (b).
``(e)(1) A child who is pursuing a program of vocational training
under this section and is also eligible for assistance under a program
under chapter 35 of this title may not receive assistance under both
such programs concurrently. The child shall elect (in such form and
manner as the Secretary may prescribe) the program under which the
child is to receive assistance.
``(2) The aggregate period for which a child may receive assistance
under this section and chapter 35 of this title may not exceed 48
months (or the part-time equivalent thereof).
``Sec. 1805. Monetary allowance
``(a) The Secretary shall pay a monthly allowance under this
chapter to any child of a Vietnam veteran for any disability resulting
from spina bifida suffered by such child.
``(b)(1) The amount of the allowance paid to a child under this
section shall be based on the degree of disability suffered by the
child, as determined in accordance with such schedule for rating
disabilities resulting from spina bifida as the Secretary may
prescribe.
``(2) The Secretary shall, in prescribing the rating schedule for
the purposes of this section, establish three levels of disability upon
which the amount of the allowance provided by this section shall be
based.
``(3) The amounts of the allowance shall be $200 per month for the
lowest level of disability prescribed, $700 per month for the
intermediate level of disability prescribed, and $1,200 per month for
the highest level of disability prescribed. Such amounts are subject to
adjustment under section 5312 of this title.
``(c) Notwithstanding any other provision of law, receipt by a
child of an allowance under this section shall not impair, infringe, or
otherwise affect the right of the child to receive any other benefit to
which the child may otherwise be entitled under any law administered by
the Secretary, nor shall receipt of such an allowance impair, infringe,
or otherwise affect the right of any individual to receive any benefit
to which the individual is entitled under any law administered by the
Secretary that is based on the child's relationship to the individual.
``(d) Notwithstanding any other provision of law, the allowance
paid to a child under this section shall not be considered income or
resources in determining eligibility for or the amount of benefits
under any Federal or federally assisted program.
``Sec. 1806. Effective date of awards
``The effective date for an award of benefits under this chapter
shall be fixed in accordance with the facts found, but shall not be
earlier than the date of receipt of application for the benefits.''.
(2) The tables of chapters before part I and at the beginning of
part II of such title are each amended by inserting after the item
referring to chapter 17 the following new item:
``18. Benefits for Children of Vietnam Veterans Who Are Born 1801''.
With Spina Bifida.
(c) Section 5312 of title 38, United States Code, is amended--
(1) in subsection (a)--
(A) by striking out ``and the rate of increased
pension'' and inserting in lieu thereof ``, the rate of
increased pension''; and
(B) by inserting after ``on account of children,''
the following: ``and each rate of monthly allowance
paid under section 1805 of this title,''; and
(2) in subsection (c)(1), by striking out ``and 1542'' and
inserting in lieu thereof ``1542, and 1805''.
(d) This section and the amendments made by this section shall take
effect on January 1, 1997.
Sec. 422. (a) Section 1151 of title 38, United States Code, is
amended--
(1) by striking out the first sentence and inserting in
lieu thereof the following:
``(a) Compensation under this chapter and dependency and indemnity
compensation under chapter 13 of this title shall be awarded for a
qualifying additional disability or a qualifying death of a veteran in
the same manner as if such additional disability or death were service-
connected. For purposes of this section, a disability or death is a
qualifying additional disability or qualifying death if the disability
or death was not the result of the veteran's willful misconduct and--
``(1) the disability or death was caused by hospital care,
medical or surgical treatment, or examination furnished the
veteran under any law administered by the Secretary, either by
a Department employee or in a Department facility as defined in
section 1701(3)(A) of this title, and the proximate cause of
the disability or death was--
``(A) carelessness, negligence, lack of proper
skill, error in judgment, or similar instance of fault
on the part of the Department in furnishing the
hospital care, medical or surgical treatment, or
examination; or
``(B) an event not reasonably foreseeable; or
``(2) the disability or death was proximately caused by the
provision of training and rehabilitation services by the
Secretary (including by a service-provider used by the
Secretary for such purpose under section 3115 of this title) as
part of an approved rehabilitation program under chapter 31 of
this title.''; and
(2) in the second sentence--
(A) by redesignating that sentence as subsection
(b);
(B) by striking out ``, aggravation,'' both places
it appears; and
(C) by striking out ``sentence'' and substituting
in lieu thereof ``subsection''.
(b)(1) The amendments made by subsection (a) shall take effect on
October 1, 1996.
(2) Section 1151 of title 38, United States Code (as amended by
subsection (a)), shall govern all administrative and judicial
determinations of eligibility for benefits under such section that are
made with respect to claims filed on or after the effective date set
forth in paragraph (1), including those based on original applications
and applications seeking to reopen, revise, reconsider, or otherwise
readjudicate on any basis claims for benefits under such section 1151
or any provision of law that is a predecessor of such section.
(96)Page 78, strike out lines 16 through 25
(97)Page 79, strike out lines 1 through 5
(98)Page 79, strike out all after line 5, over to and including line 9
on page 80
(99)Page 80, strike out all after line 9, over to and including line 14
on page 81
(100)Page 81, strike out all after line 14, over to and including line
4 on page 82
(101)Page 82, strike out lines 5 through 17
(102)Page 82, strike out all after line 17, over to and including line
4 on page 83
(103)Page 83, strike out lines 5 through 16
(104)Page 83, strike out lines 17 through 22
(105)Page 85, strike out lines 18 through 20 and insert:
SEC. 432. CALCULATION OF DOWNPAYMENT.
Section 203(b) of the National Housing Act (12 U.S.C. 1709(b)) is
amended by adding at the end the following new paragraph:
``(10) Alaska and Hawaii.--
``(A) In general.--Notwithstanding any other
provision of this subsection, with respect to a
mortgage originated in the State of Alaska or the State
of Hawaii, involve a principal obligation not in excess
of the sum of--
``(i) the amount of the mortgage insurance
premium paid at the time the mortgage is
insured; and
``(ii)(I) in the case of a mortgage for a
property with an appraised value equal to or
less than $50,000, 98.75 percent of the
appraised value of the property;
``(II) in the case of a mortgage for a
property with an appraised value in excess of
$50,000 but not in excess of $125,000, 97.65
percent of the appraised value of the property;
``(III) in the case of a mortgage for a
property with an appraised value in excess of
$125,000, 97.15 percent of the appraised value
of the property; or
``(IV) notwithstanding subclauses (II) and
(III), in the case of a mortgage for a property
with an appraised value in excess of $50,000
that is located in an area of the State for
which the average closing cost exceeds 2.10
percent of the average, for the State, of the
sale price of properties located in the State
for which mortgages have been executed, 97.75
percent of the appraised value of the property.
``(B) Average closing cost.--For purposes of this
paragraph, the term `average closing cost' means, with
respect to a State, the average, for mortgages executed
for properties that are located within the State, of
the total amounts (as determined by the Secretary) of
initial service charges, appraisal, inspection, and
other fees (as the Secretary shall approve) that are
paid in connection with such mortgages.''.
Sec. 433. Delegation of Single Family Mortgage Insuring Authority
to Direct Endorsement Mortgagees.--Title II of the National Housing Act
(12 U.S.C. 1707 et seq.) is amended by adding at the end the following
new section:
``delegation of insuring authority to direct endorsement mortgagees
``Sec. 256.(a) Authority.--The Secretary may delegate, to one or
more mortgages approved by the Secretary under the direct endorsement
program, the authority of the Secretary under this Act to insure
mortgages involving property upon which there is located a dwelling
designed principally for occupancy by 1 to 4 families.
``(b) Considerations.--In determining whether to delegate authority
to a mortgagee under this section, the Secretary shall consider the
experience and performance of the mortgagee compared to the default
rate of all insured mortgages in comparable markets, and such other
factors as the Secretary determines appropriate to minimize risk of
loss to the insurance funds under this Act.
``(c) Enforcement of Insurance Requirements.--
``(1) In general.--If the Secretary determines that a
mortgage insured by a mortgagee pursuant to delegation of
authority under this section was not originated in accordance
with the requirements established by the Secretary, and the
Secretary pays an insurance claim with respect to the mortgage
within a reasonable period specified by the Secretary, the
Secretary may require the mortgagee approved under this section
to indemnify the Secretary for the loss.
``(2) Fraud or misrepresentation.--If fraud or
misrepresentation was involved in connection with the
origination, the Secretary may require the mortgagee approved
under this section to indemnify the Secretary for the loss
regardless of when an insurance claim is paid.
``(d) Termination of Mortgagee's Authority.--If a mortgagee to
which the Secretary has made a delegation under this section violates
the requirements and procedures established by the Secretary or the
Secretary determines that other good cause exists, the Secretary may
cancel a delegation of authority under this section to the mortgagee by
giving notice to the mortgagee. Such a cancellation shall be effective
upon receipt of the notice by the mortgagee or at a later date
specified by the Secretary. A decision by the Secretary to cancel a
delegation shall be final and conclusive and shall not be subject to
judicial review.
``(e) Requirements and Procedures.--Before approving a delegation
under this section, the Secretary shall issue regulations establishing
appropriate requirements and procedures, including requirements and
procedures governing the indemnification of the Secretary by the
Mortgagee.''.
(106)Page 85, strike out lines 21 through 24
(107)Page 85, after line 24 insert:
SEC. 434. SENSE OF THE SENATE WITH REGARD TO COMPLIANCE WITH
INTERNATIONAL OBLIGATIONS.
(a) Findings.--Congress finds that--
(1) in response to a dispute settlement finding against the
United States by the World Trade Organization, the United
States informed the World Trade Organization on June 19, 1996,
that the United States intends to meet its international
obligations to the World Trade Organization with respect to the
Environmental Protection Agency's requirements on imported
reformulated and conventional gasoline;
(2) the Environmental Protection Agency has initiated an
open process to examine any and all options for compliance with
international obligations of the United States in which a key
criterion will be fully protecting public health and the
environment; and
(3) many United States environmental and industrial
organizations are concerned about the ``Regulation of Fuels and
Fuel Additives: Individual Foreign Refinery Baseline
Requirements for Reformulated Gasoline'' proposed on May 3,
1994 (59 Fed. Reg. 84).
(b) Sense of the Senate.--It is the sense of the Senate that, in
evaluating any option for compliance with international obligations,
the Administrator of the Environmental Protection Agency should--
(1) take fully into account the protection of public health
and the environment and the international obligations of the
United States as a member of the World Trade Organization;
(2) ensure that the compliance review process not result in
the degradation of the gasoline quality required by the Clean
Air Act (42 U.S.C. 7401 et seq.) with respect to conventional
and reformulated gasoline;
(3) not recognize individual foreign refiner baselines
unless the Administrator determines that the issues of
auditing, inspection of foreign facilities, and enforcement
have been adequately addressed; and
(4) provide a full and open administrative process in the
formulation of any final rule.
(108)Page 85, after line 24 insert:
SEC. 435. IMPLEMENTATION OF COMPREHENSIVE CONSERVATION AND MANAGEMENT
PLANS.
Notwithstanding section 320(g) of the Federal Water Pollution
Control Act (33 U.S.C. 1330(g)), funds made available pursuant to
authorization under such section for fiscal year 1997 and prior fiscal
years may be used for implementing comprehensive conservation and
management plans.
(109)Page 85, after line 24 insert:
Sec. 436. (a) Plan.--(1) The Secretary of Veterans Affairs shall
develop a plan for the allocation of health care resources (including
personnel and funds) of the Department of Veterans Affairs among the
health care Networks of the Department so as to ensure that veterans
who have similar economic status and eligibility priority and who are
eligible for medical care have similar access to such care regardless
of the region of the United States in which such veterans reside.
(2) The plan shall--
(A) reflect, to the maximum extent possible, the Veterans
Integrated Service Network developed by the Department to
account for forecasts in expected workload and to ensure
fairness to facilities that provide cost-efficient health care;
and
(B) include--
(i) procedures to identify reasons for variations
in operating costs among similar facilities where
Network allocations are based on similar unit costs for
similar services and workload;
(ii) ways to improve the allocation of resources so
as to promote efficient use of resources and provision
of quality health care;
(iii) adjustments to unit costs in subsection (a)
to reflect factors which directly influence the cost of
health care delivery within each Network and where such
factors are not under the control of Network or
Department management; and
(iv) include forecasts in expected workload and
consideration of the demand for VA health care that may
not be reflected in current workload projections.
(3) The Secretary shall prepare the plan in consultation with the
Under Secretary of Health of the Department of Veterans Affairs.
(b) Plan Elements.--The plan under subsection (a) shall set forth--
(1) milestones for achieving the goal referred to in
paragraph (1) of that subsection; and
(2) a means of evaluating the success of the Secretary in
meeting the goal.
(c) Submittal to Congress.--The Secretary shall submit to Congress
the plan developed under subsection (a) not later than 180 days after
the date of the enactment of this Act.
(d) Implementation.--The Secretary shall implement the plan
developed under subsection (a) not later than 60 days after submitting
the plan to Congress under subsection (c), unless within that time the
Secretary notifies Congress that the plan will not be implemented in
that time and includes with the notification an explanation why the
plan will not be implemented in that time.
(110)Page 85, after line 24 insert:
Sec. 437. GAO Audit on Staffing and Contracting.--The Comptroller
General shall audit the operations of the Office of Federal Housing
Enterprise Oversight concerning staff organization, expertise,
capacity, and contracting authority to ensure that the office resources
and contract authority are adequate and that they are being used
appropriately to ensure that the Federal National Mortgage Association
and the Federal Home Loan Mortgage Corporation are adequately
capitalized and operating safely.
(111)Page 85, after line 24 insert:
Sec. 438. None of the funds appropriated or otherwise made
available to the National Aeronautics and Space Administration by this
Act, or any other Act enacted before the date of the enactment of this
Act, may be used by the Administrator of the National Aeronautics and
Space Administration to relocate aircraft of the National Aeronautics
and Space Administration to Dryden Flight Research Center, California,
for purposes of the consolidation of such aircraft.
(112)Page 85, after line 24 insert:
Sec. 439. Revision of Name of Japan-United States Friendship
Commission.--(1)(A) The first sentence of section 4(a) of the Japan-
United States Friendship Act (22 U.S.C. 2903(a)) is amended by striking
out ``Japan-United States Friendship Commission'' and inserting in lieu
thereof ``United States-Japan Commission''.
(B) The section heading of such section is amended to read as
follows:
``UNITED STATES-JAPAN COMMISSION''.
(2) Subsection (c) of section 3 of that Act (22 U.S.C. 2902) is
amended by striking out ``Japan-United States Friendship Commission''
and inserting in lieu thereof ``United States-Japan Commission''.
(3) Any reference to the Japan-United States Friendship Commission
in any Federal law, Executive order, regulation, delegation of
authority, or other document shall be deemed to refer to the United
States-Japan Commission.
(113)Page 85, after line 24 insert:
Sec. 440. (a) Subject to the concurrence of the Administrator of
the General Services Administration (GSA) and notwithstanding section
707 of Public Law 103-433, the Administrator of the National
Aeronautics and Space Administration may convey to the city of Downey,
California, all right, title, and interest of the United States in and
to a parcel of real property, including improvements thereon,
consisting of approximately 60 acres and known as Parcels III, IV, V,
and VI of the NASA Industrial Plant, Downey, California.
(b)(1) Delay in payment of consideration.--After the end of the 20-
year period beginning on the date on which the conveyance under
subsection (a) is completed, the City of Downey shall pay to the United
States an amount equal to fair market value of the conveyed property as
of the date of the conveyance from NASA.
(2) Effect of reconveyance by the city.--If the City of Downey
reconveys all or any part of the conveyed property during such 20-year
period, the City shall pay to the United States an amount equal to the
fair market value of the reconveyed property as of the time of the
reconveyance, excluding the value of any improvements made to the
property by the City.
(3) Determination of fair market value.--The Administrator of NASA
shall determine fair market value in accordance with Federal appraisal
standards and procedures.
(4) Treatment of leases.--The Administrator of NASA may treat a
lease of the property within such 20-year period as a reconveyance if
the Administrator determines that the lease is being used to avoid
application of paragraph (b)(2).
(5) Deposit of proceeds.--The Administrator of NASA shall deposit
any proceeds received under this subsection in the special account
established pursuant to section 204(h)(2) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 485(h)(2)).
(c) The exact acreage and legal description of the real property to
be conveyed under subsection (a) shall be determined by a survey
satisfactory to the Administrator. The cost of the survey shall be
borne by the City of Downey, California.
(d) The Administrator may require such additional terms and
conditions in connection with the conveyance under subsection (a) as
the Administrator considers appropriate to protect the interests of the
United States.
(e) If the City at any time after the conveyance of the property
under subsection (a) notifies the Administrator that the City no longer
wishes to retain the property, it may convey the property under the
terms of subsection (b), or, it may revert all right, title, and
interest in and to the property (including any facilities, equipment,
or fixtures conveyed, but excluding the value of any improvements made
to the property by the City) to the United States, and the United
States shall have the right of immediate entry onto the property.
(114)Page 85, after line 24 insert:
TITLE V
SUPPLEMENTAL
(115)Page 85, after line 24 insert:
DEPARTMENT OF VETERANS AFFAIRS
Veterans Benefits Administration
compensation and pensions
For an additional amount for ``Compensation and Pensions'',
$100,000,000, to be made available upon enactment of this Act, to
remain available until expended.
(116)Page 85, after line 24 insert:
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Government National Mortgage Association
guarantees of mortgage backed securities loan guarantee program account
During fiscal year 1996 and in addition to commitments previously
provided, additional commitments to issue guarantees to carry out
section 306 of the National Housing Act, as amended (12 U.S.C.
1721(g)), shall not exceed $20,000,000,000.
(117)Page 85, after line 24 insert:
TITLE VI--NEWBORNS' AND MOTHERS' HEALTH PROTECTION ACT OF 1996
SEC. 601. SHORT TITLE.
This title may be cited as the ``Newborns' and Mothers' Health
Protection Act of 1996''.
SEC. 602. FINDINGS.
Congress finds that--
(1) the length of post-delivery inpatient care should be
based on the unique characteristics of each mother and her
newborn child, taking into consideration the health of the
mother, the health and stability of the newborn, the ability
and confidence of the mother and father to care for the
newborn, the adequacy of support systems at home, and the
access of the mother and newborn to appropriate follow-up
health care; and
(2) the timing of the discharge of a mother and her newborn
child from the hospital should be made by the attending
provider in consultation with the mother.
SEC. 603. REQUIRED COVERAGE FOR MINIMUM HOSPITAL STAY FOLLOWING BIRTH.
(a) In General.--Except as provided in subsection (b), a health
plan or an employee health benefit plan that provides maternity
benefits, including benefits for childbirth, shall ensure that coverage
is provided with respect to a mother who is a participant, beneficiary,
or policyholder under such plan and her newborn child for a minimum of
48 hours of inpatient length of stay following a normal vaginal
delivery, and a minimum of 96 hours of inpatient length of stay
following a caesarean section, without requiring the attending provider
to obtain authorization from the health plan or employee health benefit
plan.
(b) Exception.--Notwithstanding subsection (a), a health plan or an
employee health benefit plan shall not be required to provide coverage
for post-delivery inpatient length of stay for a mother who is a
participant, beneficiary, or policyholder under such plan and her
newborn child for the period referred to in subsection (a) if--
(1) a decision to discharge the mother and her newborn
child prior to the expiration of such period is made by the
attending provider in consultation with the mother; and
(2) the health plan or employee health benefit plan
provides coverage for post-delivery follow-up care as described
in section 604.
SEC. 604. POST-DELIVERY FOLLOW-UP CARE.
(a) In General.--
(1) General rule.--In the case of a decision to discharge a
mother and her newborn child from the inpatient setting prior
to the expiration of 48 hours following a normal vaginal
delivery or 96 hours following a caesarean section, the health
plan or employee health benefit plan shall provide coverage for
timely post-delivery care. Such health care shall be provided
to a mother and her newborn child by a registered nurse,
physician, nurse practitioner, nurse midwife or physician
assistant experienced in maternal and child health in--
(A) the home, a provider's office, a hospital, a
birthing center, an intermediate care facility, a
federally qualified health center, a federally
qualified rural health clinic, or a State health
department maternity clinic; or
(B) another setting determined appropriate under
regulations promulgated by the Secretary, in
consultation with the Secretary of Health and Human
Services.
The attending provider in consultation with the mother shall
decide the most appropriate location for follow-up care.
(2) Considerations by secretary.--In promulgating
regulations under paragraph (1)(B), the Secretary shall
consider telemedicine and other innovative means to provide
follow-up care and shall consider care in both urban and rural
settings.
(b) Timely Care.--As used in subsection (a), the term ``timely
post-delivery care'' means health care that is provided--
(1) following the discharge of a mother and her newborn
child from the inpatient setting; and
(2) in a manner that meets the health care needs of the
mother and her newborn child, that provides for the appropriate
monitoring of the conditions of the mother and child, and that
occurs not later than the 72-hour period immediately following
discharge.
(c) Consistency With State Law.--The Secretary shall, with respect
to regulations promulgated under subsection (a) concerning appropriate
post-delivery care settings, ensure that, to the extent practicable,
such regulations are consistent with State licensing and practice laws.
SEC. 605. PROHIBITIONS.
In implementing the requirements of this title, a health plan or an
employee health benefit plan may not--
(1) deny enrollment, renewal, or continued coverage to a
mother and her newborn child who are participants,
beneficiaries or policyholders based on compliance with this
title;
(2) provide monetary payments or rebates to mothers to
encourage such mothers to request less than the minimum
coverage required under this title;
(3) penalize or otherwise reduce or limit the reimbursement
of an attending provider because such provider provided
treatment to an individual patient in accordance with this
title; or
(4) provide incentives (monetary or otherwise) to an
attending provider to induce such provider to provide treatment
to an individual policyholder, participant, or beneficiary in a
manner inconsistent with this title.
SEC. 606. NOTICE.
(a) Employee Health Benefit Plan.--An employee health benefit plan
shall provide conspicuous notice to each participant regarding coverage
required under this Act not later than 120 days after the date of
enactment of this title, and as part of its summary plan description.
(b) Health Plan.--A health plan shall provide notice to each
policyholder regarding coverage required under this title. Such notice
shall be in writing, prominently positioned, and be transmitted--
(1) in a mailing made within 120 days of the date of
enactment of this title by such plan to the policyholder; and
(2) as part of the annual informational packet sent to the
policyholder.
SEC. 607. APPLICABILITY.
(a) Construction.--
(1) In general.--A requirement or standard imposed under
this title on a health plan shall be deemed to be a requirement
or standard imposed on the health plan issuer. Such
requirements or standards shall be enforced by the State
insurance commissioner for the State involved or the official
or officials designated by the State to enforce the
requirements of this title. In the case of a health plan
offered by a health plan issuer in connection with an employee
health benefit plan, the requirements or standards imposed
under this title shall be enforced with respect to the health
plan issuer by the State insurance commissioner for the State
involved or the official or officials designated by the State
to enforce the requirements of this title.
(2) Limitation.--Except as provided in section 608(c), the
Secretary shall not enforce the requirements or standards of
this title as they relate to health plan issuers or health
plans. In no case shall a State enforce the requirements or
standards of this title as they relate to employee health
benefit plans.
(b) ERISA.--Nothing in this title shall be construed to affect or
modify the provisions of section 514 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1144).
(c) Effect on Mother.--Nothing in this title shall be construed to
require that a mother who is a participant, beneficiary, or
policyholder covered under this title--
(1) give birth in a hospital; or
(2) stay in the hospital for a fixed period of time
following the birth of her child.
(d) Level and Type of Reimbursements.--Nothing in this title shall
be construed to prevent a health plan or an employee health benefit
plan from negotiating the level and type of reimbursement with an
attending provider for care provided in accordance with this title.
SEC. 608. ENFORCEMENT.
(a) Health Plan Issuers.--Each State shall require that each health
plan issued, sold, renewed, offered for sale or operated in such State
by a health plan issuer meet the standards established under this
title. A State shall submit such information as required by the
Secretary demonstrating effective implementation of the requirements of
this title.
(b) Employee Health Benefit Plans.--With respect to employee health
benefit plans, the standards established under this title shall be
enforced in the same manner as provided for under sections 502, 504,
506, and 510 of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1132, 1134, 1136, and 1140). The civil penalties contained in
paragraphs (1) and (2) of section 502(c) of such Act (29 U.S.C.
1132(c)(1) and (2)) shall apply to any information required by the
Secretary to be disclosed and reported under this section.
(c) Failure to Enforce.--In the case of the failure of a State to
substantially enforce the standards and requirements set forth in this
title with respect to health plans, the Secretary, in consultation with
the Secretary of Health and Human Services, shall enforce the standards
of this title in such State. In the case of a State that fails to
substantially enforce the standards set forth in this title, each
health plan issuer operating in such State shall be subject to civil
enforcement as provided for under sections 502, 504, 506, and 510 of
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1132,
1134, 1136, and 1140). The civil penalties contained in paragraphs (1)
and (2) of section 502(c) of such Act (29 U.S.C. 1132(c)(1) and (2))
shall apply to any information required by the Secretary to be
disclosed and reported under this section.
(d) Regulations.--The Secretary, in consultation with the Secretary
of Health and Human Services, may promulgate such regulations as may be
necessary or appropriate to carry out this title.
SEC. 609. DEFINITIONS.
As used in this title:
(1) Attending provider.--The term ``attending provider''
shall include--
(A) the obstetrician-gynecologists, pediatricians,
family physicians, and other physicians primarily
responsible for the care of a mother and newborn; and
(B) the nurse midwives and nurse practitioners
primarily responsible for the care of a mother and her
newborn child in accordance with State licensure and
certification laws.
(2) Beneficiary.--The term ``beneficiary'' has the meaning
given such term under section 3(8) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1002(8)).
(3) Employee health benefit plan.--
(A) In general.--The term ``employee health benefit
plan'' means any employee welfare benefit plan,
governmental plan, or church plan (as defined under
paragraphs (1), (32), and (33) of section 3 of the
Employee Retirement Income Security Act of 1974 (29
U.S.C. 1002 (1), (32), and (33))) that provides or pays
for health benefits (such as provider and hospital
benefits) for participants and beneficiaries whether--
(i) directly;
(ii) through a health plan offered by a
health plan issuer as defined in paragraph (4);
or
(iii) otherwise.
(B) Rule of construction.--An employee health
benefit plan shall not be construed to be a health plan
or a health plan issuer.
(C) Arrangements not included.--Such term does not
include the following, or any combination thereof:
(i) Coverage only for accident, or
disability income insurance, or any combination
thereof.
(ii) Medicare supplemental health insurance
(as defined under section 1882(g)(1) of the
Social Security Act).
(iii) Coverage issued as a supplement to
liability insurance.
(iv) Liability insurance, including general
liability insurance and automobile liability
insurance.
(v) Workers compensation or similar
insurance.
(vi) Automobile medical payment insurance.
(vii) Coverage for a specified disease or
illness.
(viii) Hospital or fixed indemnity
insurance.
(ix) Short-term limited duration insurance.
(x) Credit-only, dental-only, or vision-
only insurance.
(xi) A health insurance policy providing
benefits only for long-term care, nursing home
care, home health care, community-based care,
or any combination thereof.
(4) Group purchaser.--The term ``group purchaser'' means
any person (as defined under paragraph (9) of section 3 of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1002(9)) or entity that purchases or pays for health benefits
(such as provider or hospital benefits) on behalf of
participants or beneficiaries in connection with an employee
health benefit plan.
(5) Health plan.--
(A) In general.--The term ``health plan'' means any
group health plan or individual health plan.
(B) Group health plan.--The term ``group health
plan'' means any contract, policy, certificate or other
arrangement offered by a health plan issuer to a group
purchaser that provides or pays for health benefits
(such as provider and hospital benefits) in connection
with an employee health benefit plan.
(C) Individual health plan.--The term ``individual
health plan'' means any contract, policy, certificate
or other arrangement offered to individuals by a health
plan issuer that provides or pays for health benefits
(such as provider and hospital benefits) and that is
not a group health plan.
(D) Arrangements not included.--Such term does not
include the following, or any combination thereof:
(i) Coverage only for accident, or
disability income insurance, or any combination
thereof.
(ii) Medicare supplemental health insurance
(as defined under section 1882(g)(1) of the
Social Security Act).
(iii) Coverage issued as a supplement to
liability insurance.
(iv) Liability insurance, including general
liability insurance and automobile liability
insurance.
(v) Workers compensation or similar
insurance.
(vi) Automobile medical payment insurance.
(vii) Coverage for a specified disease or
illness.
(viii) Hospital or fixed indemnity
insurance.
(ix) Short-term limited duration insurance.
(x) Credit-only, dental-only, or vision-
only insurance.
(xi) A health insurance policy providing
benefits only for long-term care, nursing home
care, home health care, community-based care,
or any combination thereof.
(E) Certain plans included.--Such term includes any
plan or arrangement not described in any clause of
subparagraph (D) which provides for benefit payments,
on a periodic basis, for--
(i) a specified disease or illness, or
(ii) a period of hospitalization,
without regard to the costs incurred or services
rendered during the period to which the payments
relate.
(6) Health plan issuer.--The term ``health plan issuer''
means any entity that is licensed (prior to or after the date
of enactment of this title) by a State to offer a health plan.
(7) Participant.--The term ``participant'' has the meaning
given such term under section 3(7) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1002(7)).
(8) Secretary.--The term ``Secretary'' unless otherwise
specified means the Secretary of Labor.
SEC. 610. PREEMPTION.
(a) In General.--The provisions of sections 603, 605, and 606
relating to inpatient care shall not preempt a State law or
regulation--
(1) that provides greater protections to patients or
policyholders than those required in this title;
(2) that requires health plans to provide coverage for at
least 48 hours of inpatient length of stay following a normal
vaginal delivery, and at least 96 hours of inpatient length of
stay following a caesarean section;
(3) that requires health plans to provide coverage for
maternity and pediatric care in accordance with guidelines
established by the American College of Obstetricians and
Gynecologists, the American Academy of Pediatrics, or other
established professional medical associations; or
(4) that leaves decisions regarding appropriate length of
stay entirely to the attending provider, in consultation with
the mother.
(b) Follow-Up Care.--The provisions of section 604 relating to
follow-up care shall not preempt those provisions of State law or
regulation that provide comparable or greater protection to patients or
policyholders than those required under this title or that provide
mothers and newborns with an option of timely post delivery follow-up
care (as defined in section 604(b)) in the home.
(c) Employee Health Benefit Plans.--Nothing in this section affects
the application of this title to employee health benefit plans, as
defined in section 609(3).
SEC. 611. REPORTS TO CONGRESS CONCERNING CHILDBIRTH.
(a) Findings.--Congress finds that--
(1) childbirth is one part of a continuum of experience
that includes prepregnancy, pregnancy and prenatal care, labor
and delivery, the immediate postpartum period, and a longer
period of adjustment for the newborn, the mother, and the
family;
(2) health care practices across this continuum are
changing in response to health care financing and delivery
system changes, science and clinical research, and patient
preferences; and
(3) there is a need to--
(A) examine the issues and consequences associated
with the length of hospital stays following childbirth;
(B) examine the follow-up practices for mothers and
newborns used in conjunction with shorter hospital
stays;
(C) identify appropriate health care practices and
procedures with regard to the hospital discharge of
newborns and mothers;
(D) examine the extent to which such care is
affected by family and environmental factors; and
(E) examine the content of care during hospital
stays following childbirth.
(b) Advisory Panel.--
(1) In general.--Not later than 90 days after the date of
enactment of this title, the Secretary of Health and Human
Services shall establish an advisory panel (hereafter referred
to in this section as the ``advisory panel'') to--
(A) guide and review methods, procedures, and data
collection necessary to conduct the study described in
subsection (c) that is intended to enhance the quality,
safety, and effectiveness of health care services
provided to mothers and newborns;
(B) develop a consensus among the members of the
advisory panel regarding the appropriateness of the
specific requirements of this title; and
(C) prepare and submit to the Secretary of Health
and Human Services, as part of the report of the
Secretary submitted under subsection (d), a report
summarizing the consensus developed under subparagraph
(B) if any, including the reasons for not reaching such
a consensus.
(2) Participation.--
(A) Department representatives.--The Secretary of
Health and Human Services shall ensure that
representatives from within the Department of Health
and Human Services that have expertise in the area of
maternal and child health or in outcomes research are
appointed to the advisory panel established under
paragraph (1).
(B) Representatives of public and private sector
entities.--
(i) In general.--The Secretary of Health
and Human Services shall ensure that members of
the advisory panel include representatives of
public and private sector entities having
knowledge or experience in one or more of the
following areas:
(I) Patient care.
(II) Patient education.
(III) Quality assurance.
(IV) Outcomes research.
(V) Consumer issues.
(ii) Requirement.--The panel shall include
representatives from each of the following
categories:
(I) Health care practitioners.
(II) Health plans.
(III) Hospitals.
(IV) Employers.
(V) States.
(VI) Consumers.
(c) Studies.--
(1) In general.--The Secretary of Health and Human Services
shall conduct a study of--
(A) the factors affecting the continuum of care
with respect to maternal and child health care,
including outcomes following childbirth;
(B) the factors determining the length of hospital
stay following childbirth;
(C) the diversity of negative or positive outcomes
affecting mothers, infants, and families;
(D) the manner in which post natal care has changed
over time and the manner in which that care has adapted
or related to changes in the length of hospital stay,
taking into account--
(i) the types of post natal care available
and the extent to which such care is accessed;
and
(ii) the challenges associated with
providing post natal care to all populations,
including vulnerable populations, and solutions
for overcoming these challenges; and
(E) the financial incentives that may--
(i) impact the health of newborns and
mothers; and
(ii) influence the clinical decisionmaking
of health care providers.
(2) Resources.--The Secretary of Health and Human Services
shall provide to the advisory panel the resources necessary to
carry out the duties of the advisory panel.
(d) Reports.--
(1) In general.--The Secretary of Health and Human Services
shall prepare and submit to the Committee on Labor and Human
Resources of the Senate and the Committee on Commerce of the
House of Representatives a report that contains--
(A) a summary of the study conducted under
subsection (c);
(B) a summary of the best practices used in the
public and private sectors for the care of newborns and
mothers;
(C) recommendations for improvements in prenatal
care, post natal care, delivery and follow-up care, and
whether the implementation of such improvements should
be accomplished by the private health care sector,
Federal or State governments, or any combination
thereof; and
(D) limitations on the databases in existence on
the date of enactment of this title.
(2) Submission of reports.--The Secretary of Health and
Human Services shall prepare and submit to the Committees
referred to in paragraph (1)--
(A) an initial report concerning the study
conducted under subsection (c) and the report required
under subsection (d), not later than 18 months after
the date of enactment of this title;
(B) an interim report concerning such study and
report not later than 3 years after the date of
enactment of this title; and
(C) a final report concerning such study and report
not later than 5 years after the date of enactment of
this title.
(e) Termination of Panel.--The advisory panel shall terminate on
the date that occurs 60 days after the date on which the last report is
submitted under this section.
SEC. 612. SALE OF GOVERNORS ISLAND, NEW YORK.
(a) In General.--Notwithstanding any other provision of law, the
Administrator of General Services shall dispose of by sale at fair
market value all rights, title, and interests of the United States in
and to the land of, and improvements to, Governors Island, New York.
(b) Right of First Refusal.--Before a sale is made under subsection
(a) to any other parties, the State of New York and the city of New
York shall be given the right of first refusal to purchase all or part
of Governors Island. Such right may be exercised by either the State of
New York or the city of New York or by both parties acting jointly.
(c) Proceeds.--Proceeds from the disposal of Governors Island under
subsection (a) shall be deposited in the general fund of the Treasury
and credited as miscellaneous receipts.
SEC. 613. SALE OF AIR RIGHTS.
(a) In General.--Notwithstanding any other provision of law, the
Administrator of General Services shall sell, at fair market value and
in a manner to be determined by the Administrator, the air rights
adjacent to Washington Union Station described in subsection (b),
including air rights conveyed to the Administrator under subsection
(d). The Administrator shall complete the sale by such date as is
necessary to ensure that the proceeds from the sale will be deposited
in accordance with subsection (c).
(b) Description.--The air rights referred to in subsection (a)
total approximately 16.5 acres and are depicted on the plat map of the
District of Columbia as follows:
(1) Part of lot 172, square 720.
(2) Part of lots 172 and 823, square 720.
(3) Part of lot 811, square 717.
(c) Proceeds.--Before September 30, 1997, proceeds from the sale of
air rights under subsection (a) shall be deposited in the general fund
of the Treasury and credited as miscellaneous receipts.
(d) Conveyance of Amtrak Air Rights.--
(1) General rule.--As a condition of future Federal
financial assistance, Amtrak shall convey to the Administrator
of General Services on or before December 31, 1996, at no
charge, all of the air rights of Amtrak described in subsection
(b).
(2) Failure to comply.--If Amtrak does not meet the
condition established by paragraph (1), Amtrak shall be
prohibited from obligating Federal funds after March 1, 1997.
SEC. 614. EFFECTIVE DATE.
Except as otherwise provided for in this title, the provisions of
this title shall apply as follows:
(1) With respect to health plans, such provisions shall
apply to such plans on the first day of the contract year
beginning on or after January 1, 1998.
(2) With respect to employee health benefit plans, such
provisions shall apply to such plans on the first day of the
first plan year beginning on or after January 1, 1998.
(118)Page 85, after line 24 insert:
TITLE VII--MENTAL HEALTH PARITY
SEC. 701. SHORT TITLE.
This title may be cited as the ``Mental Health Parity Act of
1996''.
SEC. 702. PLAN PROTECTIONS FOR INDIVIDUALS WITH A MENTAL ILLNESS.
(a) Permissible Coverage Limits Under a Group Health Plan.--
(1) Aggregate lifetime limits.--
(A) In general.--With respect to a group health
plan offered by a health insurance issuer, that applies
an aggregate lifetime limit to plan payments for
medical or surgical services covered under the plan, if
such plan also provides a mental health benefit such
plan shall--
(i) include plan payments made for mental
health services under the plan in such
aggregate lifetime limit; or
(ii) establish a separate aggregate
lifetime limit applicable to plan payments for
mental health services under which the dollar
amount of such limit (with respect to mental
health services) is equal to or greater than
the dollar amount of the aggregate lifetime
limit on plan payments for medical or surgical
services.
(B) No lifetime limit.--With respect to a group
health plan offered by a health insurance issuer, that
does not apply an aggregate lifetime limit to plan
payments for medical or surgical services covered under
the plan, such plan may not apply an aggregate lifetime
limit to plan payments for mental health services
covered under the plan.
(2) Annual limits.--
(A) In general.--With respect to a group health
plan offered by a health insurance issuer, that applies
an annual limit to plan payments for medical or
surgical services covered under the plan, if such plan
also provides a mental health benefit such plan shall--
(i) include plan payments made for mental
health services under the plan in such annual
limit; or
(ii) establish a separate annual limit
applicable to plan payments for mental health
services under which the dollar amount of such
limit (with respect to mental health services)
is equal to or greater than the dollar amount
of the annual limit on plan payments for
medical or surgical services.
(B) No annual limit.--With respect to a group
health plan offered by a health insurance issuer, that
does not apply an annual limit to plan payments for
medical or surgical services covered under the plan,
such plan may not apply an annual limit to plan
payments for mental health services covered under the
plan.
(b) Rule of Construction.--
(1) In general.--Nothing in this section shall be construed
as prohibiting a group health plan offered by a health
insurance issuer, from--
(A) utilizing other forms of cost containment not
prohibited under subsection (a); or
(B) applying requirements that make distinctions
between acute care and chronic care.
(2) Nonapplicability.--This section shall not apply to--
(A) substance abuse or chemical dependency
benefits; or
(B) health benefits or health plans paid for under
title XVIII or XIX of the Social Security Act.
(3) State law.--Nothing in this section shall be construed
to preempt any State law that provides for greater parity with
respect to mental health benefits than that required under this
section.
(c) Small Employer Exemption.--
(1) In general.--This section shall not apply to plans
maintained by employers that employ less than 26 employees.
(2) Application of certain rules in determination of
employer size.--For purposes of this subsection--
(A) Application of aggregation rule for
employers.--All persons treated as a single employer
under subsection (b), (c), (m), or (o) of section 414
of the Internal Revenue Code of 1986 shall be treated
as 1 employer.
(B) Employers not in existence in preceding year.--
In the case of an employer which was not in existence
throughout the preceding calendar year, the
determination of whether such employer is a small
employer shall be based on the average number of
employees that it is reasonably expected such employer
will employ on business days in the current calendar
year.
(C) Predecessors.--Any reference in this subsection
to an employer shall include a reference to any
predecessor of such employer.
SEC. 703. DEFINITIONS.
For purposes of this title:
(1) Group health plan.--
(A) In general.--The term ``group health plan''
means an employee welfare benefit plan (as defined in
section 3(1) of the Employee Retirement Income Security
Act of 1974) to the extent that the plan provides
medical care (as defined in paragraph (2)) and
including items and services paid for as medical care)
to employees or their dependents (as defined under the
terms of the plan) directly or through insurance,
reimbursement, or otherwise.
(B) Medical care.--The term ``medical care'' means
amounts paid for--
(i) the diagnosis, cure, mitigation,
treatment, or prevention of disease, or amounts
paid for the purpose of affecting any structure
or function of the body,
(ii) amounts paid for transportation
primarily for and essential to medical care
referred to in clause (i), and
(iii) amounts paid for insurance covering
medical care referred to in clauses (i) and
(ii).
(2) Health insurance coverage.--The term ``health insurance
coverage'' means benefits consisting of medical care (provided
directly, through insurance or reimbursement, or otherwise and
including items and services paid for as medical care) under
any hospital or medical service policy or certificate, hospital
or medical service plan contract, or health maintenance
organization contract offered by a health insurance issuer.
(3) Health insurance issuer.--The term ``health insurance
issuer'' means an insurance company, insurance service, or
insurance organization (including a health maintenance
organization, as defined in paragraph (4)) which is licensed to
engage in the business of insurance in a State and which is
subject to State law which regulates insurance (within the
meaning of section 514(b)(2) of the Employee Retirement Income
Security Act of 1974), and includes a plan sponsor described in
section 3(16)(B) of the Employee Retirement Income Security Act
of 1974 in the case of a group health plan which is an employee
welfare benefit plan (as defined in section 3(1) of such Act).
Such term does not include a group health plan.
(4) Health maintenance organization.--The term ``health
maintenance organization'' means--
(A) a federally qualified health maintenance
organization (as defined in section 1301(a) of the
Public Health Service Act),
(B) an organization recognized under State law as a
health maintenance organization, or
(C) a similar organization regulated under State
law for solvency in the same manner and to the same
extent as such a health maintenance organization.
(5) State.--The term ``State'' means each of the several
States, the District of Columbia, Puerto Rico, the Virgin
Islands, Guam, American Samoa, and the Northern Mariana
Islands.
SEC. 704. SUNSET.
Sections 701 through 703 shall cease to be effective on September
30, 2001.
SEC. 705. FEDERAL EMPLOYEE HEALTH BENEFIT PROGRAM.
For the Federal Employee Health Benefit Program, sections 701
through 703 will take effect on October 1, 1997.
SEC. 706. EXEMPTION.
Notwithstanding the provisions of this title, if the provisions of
this title result in a 1 percent or greater increase in the cost of a
group health plan's premiums, the purchaser is exempt from the
provisions of this title.
Attest:
Secretary.
104th CONGRESS
2d Session
H. R. 3666
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