[Congressional Record Volume 140, Number 26 (Thursday, March 10, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 10, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                          AMENDMENTS SUBMITTED

                                 ______


                      NATIONAL COMPETITIVENESS ACT

                                 ______


                 WALLOP (AND OTHERS) AMENDMENT NO. 1487

  Mr. WALLOP (for himself, Mr. Coats, Mr. Mack, Mr. Simpson, Mr. 
Pressler, and Mr. Nickles) proposed an amendment to the bill (S. 4) to 
promote the industrial competitiveness and economic growth of the 
United States by strengthening and expanding the civilian technology 
programs of the Department of Commerce, amending the Stevenson-Wydler 
Technology Innovation Act of 1980 to enhance the development and 
nationwide deployment of manufacturing technologies, and authorizing 
appropriations for the Technology Administration of the Department of 
Commerce, including the National Institute of Standards and Technology, 
and for other purposes; as follows:


                              definitions

       Section 1. Section 601 of title 5, United States Code is 
     amended--
       (1) in paragraph (2) by inserting ``any rule of the 
     Internal Revenue Service'' before ``or any other law, 
     including'';
       (2) in paragraph (5) by striking out ``and'' at the end 
     thereof;
       (3) in paragraph (6) by striking out the period and 
     inserting in lieu thereof a semicolon and ``and''; and
       (4) by adding at the end thereof the following new 
     paragraph:
       ``(7) the term `impact' means effects of a proposed or 
     final rule which an agency can anticipate at the time of 
     publication, and includes those effects which are directly 
     and indirectly imposed by the proposed or final rule and are 
     beneficial and negative.''.


                initial regulatory flexibility analysis

       Sec. 2. Section 603 of title 5, United States Code, is 
     amended--
       (1) in subsection (a)--
       (A) in the first sentence by inserting ``as defined under 
     section 601(2)'' after ``any proposed rule''; and
       (B) in the second sentence by striking out ``the impact'' 
     and inserting in lieu thereof ``both the direct and indirect 
     impacts'';
       (2) in subsection (b)(3) by striking out ``apply'' and 
     inserting in lieu thereof ``directly apply and an estimate of 
     the number of small entities to which the rule will 
     indirectly apply''; and
       (3) in subsection (c) in the first sentence by inserting 
     before the period ``either directly or indirectly effected''.


                 final regulatory flexibility analysis

       Sec. 3. Section 604(a) of title 5, United States Code, is 
     amended in the first sentence by striking out ``under section 
     553 of this title, after being required by that section or 
     any other law to publish a general notice of proposed 
     rulemaking'' and inserting in lieu thereof ``as defined under 
     section 610(2)''.


                            judicial review

       Sec. 4. Section 611(b) of title 5, United States Code, is 
     repealed.
                                 ______


                      McCONNELL AMENDMENT NO. 1488

  (Ordered to lie on the table.)
  Mr. McCONNELL submitted an amendment intended to be proposed by him 
to the bill S. 4, supra;


                      notice to suspend rule xxvi

  Mr. McCONNELL submitted the following notice in writing:

       Mr. President, it is my intention to move to amend the 
     Standing Rules of the Senate. An amendment to be proposed by 
     myself would amend Rule XXVI of the Standing Rules of the 
     Senate by adding the following:


                     mc connell amendment no. 1488

       At the end of the bill, add the following new section:

     SEC.   . LITIGATION IMPACT STATEMENT.

       Paragraph 11 of rule XXVI of the Standing Rules of the 
     Senate is amended by--
       (1) in subparagraph (c), by striking ``paragraphs (a) and 
     (b)'' and inserting ``paragraphs (a), (b), and (c)'';
       (2) by redesignating subparagraph (c) as subparagraph (d); 
     and
       (3) by adding after subparagraph (b) the following:
       ``(c) Each such report (except those by the Committee on 
     Appropriations) shall also contain a litigation impact 
     evaluation made by such committee which shall include--
       ``(1) an estimate of any increase in litigation which would 
     result from the enactment of the bill or joint resolution;
       ``(2) an estimate of any increase in private liability 
     which would result from the enactment of the bill or joint 
     resolution; and
       ``(3) an estimate of any increase in liability insurance 
     costs which would result from the enactment of the bill or 
     joint resolution.''.
                                 ______


                  COHEN (AND BOREN) AMENDMENT NO. 1489

  Mr. COHEN (for himself and Mr. Boren) proposed an amendment to the 
bill S. 4, supra; as follows:

       At the end of the bill, insert the following new title:

     SECTION   01. SHORT TITLE.

       This Act may be cited as the ``Counterintelligence 
     Improvements Act of 1991''.

     SEC.   02. AMENDMENT TO THE NATIONAL SECURITY ACT OF 1947.

       The National Security Act of 1947 (50 U.S.C. 401 et seq.) 
     is amended by inserting at the end thereof the following new 
     title:

             ``TITLE VIII--ACCESS TO TOP SECRET INFORMATION


           ``Eligibility for Access to Top Secret Information

       ``Sec. 801. (a) The President and Vice President, Members 
     of the Congress, Justices of the Supreme Court and judges of 
     other courts of the United States established pursuant to 
     Article III of the Constitution, shall, by virtue of their 
     elected or appointed positions, be entitled to access to Top 
     Secret information needed for the performance of their 
     governmental functions without regard to the other provisions 
     of this title.
       ``(b) Among employees of the United States Government, 
     access to Top Secret information shall be limited to 
     employees;
       (1) who have been granted access to such information 
     pursuant to this title;
       (2) who are citizens of the United States who require 
     routine access to such information for the performance of 
     official governmental functions; and
       (3) who have been determined to be trustworthy based upon a 
     background investigation and appropriate reinvestigations and 
     have otherwise satisfied the requirements of section 802, 
     below.
       (c) Access to Top Secret information by persons other than 
     those identified in subsections (a) and (b) shall be 
     permitted only in accordance with the regulations issued by 
     the President pursuant to section 802 below.


                        Implementing Regulations

       ``Sec. 802. The President shall, within 180 days of 
     enactment of this title, issue regulations to implement this 
     title which shall be binding upon all departments, agencies, 
     and offices of the Executive branch. These regulations shall, 
     at a minimum provide that--
       (A) no employee of the United States Government shall be 
     given access to Top Secret information owned, originated or 
     possessed by United States, after the effective date of this 
     title, by any department, agency, or entity of the United 
     States Government unles such person has been subject to an 
     appropriate background investigation and has--
       ``(1) provided consent to the investigative agency 
     responsible for conducting the security investigation of such 
     person, during the initial background investigation and for 
     such times as access to such information is maintained, and 
     for 5 years thereafter, permitting access to--
       (a) financial records concerning the subject pursuant to 
     section 1104 of the Right to Financial Privacy Act of 1978;
       ``(b) consumer reports concerning the subject pursuant to 
     section 1681b of the Consumer Credit Protection Act; and
       ``(c) records maintained by commercial entities within the 
     United States pertaining to any travel by the subject outside 
     the United States: Provided, That--

       ``(i) no information may be requested by an authorized 
     investigative agency pursuant to this section for any purpose 
     other than making a security determination;
       ``(ii) where the person concerned no longer has access to 
     Top Secret information, no information may be requested by an 
     authorized investigative agency pursuant to this section 
     unless such agency has reasonable grounds to believe, based 
     upon specific and articulable facts available to it, that 
     such person may pose a threat to the continued security of 
     the information to which he or she had previously had access; 
     and
       ``(iii) any information obtained by an authorized 
     investigative agency pursuant to this section shall not be 
     disseminated to any other department, agency, or entity for 
     any purpose other than for making a security determination, 
     or for foreign counterintelligence or law enforcement 
     purposes;

       ``(2) agreed, during the period of his or her access, to 
     report to the department, agency, or entity granting such 
     access in accordance with applicable regulations, any travel 
     to foreign countries which has not been authorized as part of 
     the subject's official duties;
       ``(3) agreed to report to the Federal Bureau of 
     Investigation, or to appropriate investigative authorities of 
     the department, agency, or entity concerned, any unauthorized 
     contacts with persons known to be foreign nationals or 
     persons representing foreign nationals, where an effort to 
     acquire classified information is made by the foreign 
     national, or where such contacts appear intended for this 
     purpose. For purposes of this subsection, the term 
     `unauthorized contacts' does not include contacts made within 
     the context of an authorized diplomatic relationship. Failure 
     by the employee to comply with any of the requirements of 
     this subsection shall constitute grounds for denial or 
     termination of access to the Top Secret information 
     concerned.
       ``(B) all employees granted access to Top Secret 
     information pursuant to this subsection shall also be subject 
     to--
       ``(1) additional background investigations by appropriate 
     governmental authorities during the period of access at no 
     less frequent interval than every 5 years, except that any 
     failure to satisfy this requirement that is not solely 
     attributable to the subject of the investigation shall not 
     result in a loss or denial of access; and
       ``(2) investigation by appropriate governmental authority 
     at any time during the period of access to ascertain whether 
     such persons continue to meet the requirements for access.
       ``(C) access to Top Secret information by categories of 
     persons who do not meet the requirements of subsections (A) 
     and (B) of this section may be permitted only where the 
     President, or officials designated by the President for this 
     purpose, determine that such access is essential to 
     protect or further the national security interests of the 
     United States.
       ``(D) a single office within the Executive branch shall be 
     designated to monitor the implementation and operation of 
     this title within the Executive branch. This office shall 
     submit an annual report to the President and appropriate 
     committees of the Congress, describing the operation of this 
     title and recommending needed improvements. A copy of the 
     regulations implementing this title shall be provided to the 
     Select Committee on Intelligence of the Senate and the 
     Permanent Select Committee on Intelligence of the House of 
     Representatives thirty days prior to their effective date.


                     ``waivers for individual cases

       ``Sec. 803. In extraordinary circumstances, when essential 
     to protect or further the national security interests of the 
     United States, the President (or officials designated by the 
     President for this purpose) may waive the provisions of this 
     title, or the provisions of the regulations issued pursuant 
     to section 802, above, in individual cases involving persons 
     who are citizens of the United States or are persons admitted 
     into the United States for permanent residence: Provided, 
     That all such waivers shall be made a matter of record and 
     reported to the office designated pursuant to section 802(D), 
     above, and shall be available for review by the Select 
     Committee on Intelligence of the Senate and the Permanent 
     Select Committee of the House of Representatives.


                             ``Definitions

       ``Sec. 804. For purposes of this title--
       ``(a) the term `national security' refers to the national 
     defense and foreign relations of the United States;
       ``(b) the phrases `information classified in the interest 
     of national security' or `classified information' means any 
     information originated by or on behalf of the United States 
     Government, the unauthorized disclosure of which would cause 
     damage to the national security, which has been marked and is 
     controlled pursuant to the Executive Order 12356 of April 2, 
     1982, or succesor orders, or the Atomic Energy Act of 1954;
       ``(c) the term `Top Secret information' means information 
     classified in the interests of national security, the 
     unauthorized disclosure of which would cause exceptionally 
     grave damage to the national security;
       ``(d) the term `employee' includes any person who receives 
     a salary or compensation of any kind from the United States 
     Government, is a contractor of the United States Government, 
     is an unpaid consultant of the United States Government, or 
     otherwise acts for or on behalf of the United States 
     Government, but does not include the President or Vice 
     President of the United States, Members of the Congress of 
     the United States, Justices of the Supreme Court or judges of 
     other federal courts established pursuant to Article III of 
     the Constitution; and
       ``(e) the term ``authorized investigative agency'' means an 
     agency authorized by law or regulation to conduct 
     investigations of persons who are proposed for access to Top 
     Secret information to ascertain whether such persons satisfy 
     the criteria for obtaining and retaining access to such 
     information.


                            ``Effective Date

       ``Sec. 805. This title shall take effect 180 days after the 
     date of its enactment.''.

     SEC.   03. PROTECTION OF CRYPTOGRAPHIC INFORMATION.

       The National Security Act of 1947 (50 U.S.C. 401 et seq.), 
     as amended by section   02, is further amended by inserting 
     at the end the following new title:

          ``TITLE IX--PROTECTION OF CRYPTOGRAPHIC INFORMATION

       ``Sec. 901. (a) Requirements for Access to Cryptographic 
     Information.--(1) Any employee of a department or agency 
     within the Executive branch who is granted access to 
     classified cryptographic information or routine, recurring 
     access to any space in which classified cryptographic key is 
     produced or processed, or is assigned responsibilities as a 
     custodian of classified cryptographic key, shall, as a 
     condition of receiving such access, or being assigned such 
     responsibilities, and at a minimum:
       ``(A) meet the requirements applicable to persons having 
     access to Top Secret information, as defined in subsection 
     804(c) of this Act, [as added by Section  02 of this Act]; 
     and
       ``(B) be subject to periodic polygraph examinations 
     conducted by appropriate governmental authorities, limited in 
     scope to questions of a counterintelligence nature, during 
     the period of access.
       ``(2) Failure to submit to an examination required under 
     paragraph (1) shall be grounds for removal from access to 
     cryptographic information or spaces.
       ``(3) No person shall be removed from access to 
     cryptographic information or spaces based solely upon the 
     interpretation of the results produced by a polygraph 
     instrument, measuring physiological resources, unless, after 
     further investigation, the head of the department or agency 
     concerned determines the risk to the national security in 
     permitting such access to be so potentially grave that access 
     must nonetheless be denied.
       ``(b) Definitions.--For purposes of this section--
       ``(1) the term `classified cryptographic information' means 
     any information classified by the United States Government 
     pursuant to law or Executive order concerning the details of 
     (A) the nature, preparation, or use of any code, cipher, or 
     cryptographic system of the United States; or (B) the design, 
     construction, use, maintenance, or repair of any 
     cryptographic equipment; Provided, however, That the term 
     does not include information concerning the use of 
     cryptographic systems or equipment required for personal or 
     office use;
       ``(2) the phrase `custodian of classified cryptographic 
     key' means positions that require access to classified 
     cryptographic key beyond that required to use or operate 
     cryptographic equipment for personal or office use, future 
     editions of classified cryptographic key, or classified 
     cryptographic key used for multiple devices;
       ``(3) the term `classified cryptographic key' means any 
     information (usually a sequence of random binary digits), in 
     any form, classified by the United States Government pursuant 
     to law or Executive order that is used to set up and 
     periodically change the operations performed by any 
     cryptographic equipment;
       ``(4) the term `cryptographic equipment' means any device, 
     apparatus or appliance used, or prepared, or planned for use 
     by the United States for the purpose of authenticating 
     communications or disguising or concealing the contents, 
     significance, or meanings of communications;
       ``(5) the term `employee' includes any person who receives 
     a salary or compensation of any kind from a department or 
     agency of the Executive branch, or is a contractor or unpaid 
     consultant of such department or agency;
       ``(6) the term `head of a department or agency' refers to 
     the highest official who exercises supervisory control over 
     the employee concerned, and does not include any intermediate 
     supervisory officials who may otherwise qualify as heads of 
     agencies within departments; and
       ``(7) the phrase `questions of a counterintelligence 
     nature' means questions specified to the subject in advance 
     of a polygraph examination solely to ascertain whether the 
     subject is engaged in, or planning, espionage against the 
     United States on behalf of a foreign government or knows 
     persons who are so engaged.
       ``Sec. 902. Implementing Regulations.--The President shall, 
     within 180 days of the date of enactment of this title, 
     promulgate regulations to implement the provisions of this 
     title. The President shall provide copies of such regulations 
     to the Select Committee on Intelligence of the Senate and the 
     Permanent Select Committee on Intelligence of the House of 
     Representatives.''.

     SEC.   04. AMENDMENT TO RIGHT TO FINANCIAL PRIVACY ACT.

       Section 1104 of the Right to Financial Privacy Act of 1978 
     (12 U.S.C. 3404) is amended by adding at the end thereof the 
     following new subsection:
       ``(d)(1) Notwithstanding the provisions of subsection (a), 
     a customer who is the subject of a personnel security 
     investigation conducted by an authorized investigative agency 
     of the U.S. Government as a condition of being granted or 
     maintaining access to Top Secret information, as defined by 
     section 804(c) of the National Security Act of 1947 (as added 
     by section   02 of this Act), may authorize nonrevokable 
     disclosure of all financial records maintained by financial 
     institutions for the period of the customer's access to such 
     information and for up to 5 years after access to such 
     information has been terminated, by the investigative agency 
     responsible for the conduct of such investigation, for an 
     authorized security purpose.
       ``(2) Such authority shall be contained in a signed and 
     dated statement of the customer which identifies the 
     financial records which are authorized to be disclosed. Such 
     statement may also authorize the disclosure of financial 
     records of accounts opened during the period covered by the 
     consent agreement which are not identifiable at the time such 
     consent is provided. A copy of such statement shall be 
     provided by the investigative agency concerned to the 
     financial institution from which disclosure is sought, 
     together with the certification required pursuant to section 
     1103(b) (12 U.S.C. 3403(b)).
       ``(3) The rights of the customer established by subsection 
     (c), above, shall pertain to any disclosures made pursuant to 
     this subsection.
       ``(4) On an annual basis, the office designated by 
     President pursuant to section 802(D) of the National Security 
     Act of 1947 (as added by section   02 of this Act), shall 
     fully inform the Permanent Select Committee on Intelligence 
     of the House of Representatives and the Select Committee on 
     Intelligence of the Senate concerning the number of requests 
     for financial records made pursuant to this section.''.

     SEC.   05. NEW CRIMINAL OFFENSE FOR THE POSSESSION OF 
                   ESPIONAGE DEVICES.

       (a) In General.--Chapter 37 of title 18, United States 
     Code, is amended by inserting at the end thereof the 
     following new section:


                   ``Possession of Espionage Devices

       ``Sec. 799a. Whoever knowingly maintains possession of any 
     electronic, mechanical, or other device or equipment the 
     design and capability of which renders it primarily useful 
     for the purpose of surreptitiously collecting or 
     communicating information, with the intent of utilizing such 
     device or equipment to undertake actions which would violate 
     section 793, 794, 794a (as added by section   06 of this 
     Act), or 798 of this title, or section 783(b) of title 50, 
     United States Code, shall be fined not more than $10,000 or 
     imprisoned not more than 5 years, or both.''.
       (b) Amendments to Table of Sections.--The table of sections 
     for chapter 37 of title 18, United States Code, is amended by 
     adding at the end thereof the following new item:

``799a. Possession of espionage devices.''.

     SEC.   06. NEW OFFENSE FOR SALE OR TRANSFER TO FOREIGN 
                   GOVERNMENTS DOCUMENTS AND OTHER MATERIALS 
                   DESIGNATED AS TOP SECRET.

       (a) In General.--Chapter 37 of title 18, United States 
     Code, is amended by inserting after section 794 the following 
     new section:


  ``sale or transfer of documents or materials marked as `top secret'

       ``Sec. 794a. (a)(1) No person shall knowingly sell or 
     otherwise transfer for any valuable consideration to any 
     person whom he knows or has reason to believe to be an agent 
     or representative of a foreign government--
       ``(A) any document, writing, code book, sketch, photograph, 
     map, model, instrument, equipment, electronic storage media, 
     or other material, or portion thereof, knowing that it is 
     marked or otherwise designated in any manner, pursuant to 
     applicable law and Executive order, as `Top Secret', or
       ``(B) any such document, writing, code book, sketch, 
     photograph, map, model, instrument, equipment, electronic 
     storage media, or other material, or portion thereof, which 
     has had such marking or designation removed without authority 
     and the person making the sale or transfer is aware of such 
     removal.
       ``(2) Paragraph (1) shall not be deemed to be violated by a 
     person who makes such transfer pursuant to applicable law or 
     executive branch authority.
       ``(b) In any prosecution under this section, whether or not 
     the information or material in question has been properly 
     marked or designated as ``TOP SECRET'' pursuant to applicable 
     law or Executive order shall not be an element of the 
     offense: Provided, however, That it shall be a defense to any 
     prosecution under this section that the information or 
     document in question has been officially released to the 
     public by an authorized representative of the United States 
     prior to the sale or transfer in question.
       ``(c) Violation of this section shall be punishable by 
     imprisonment for a maximum of 15 years.''.
       (b) Amendments to Table of Sections.--The table of sections 
     of chapter 37 of title 18, United States Code, is amended by 
     inserting after the item relating to section 794 the 
     following new item:

``794a. Sale or transfer of documents or materials marked as `Top 
              Secret'.''

     SEC.  07. LESSER CRIMINAL OFFENSE FOR THE REMOVAL OF TOP 
                   SECRET DOCUMENTS BY GOVERNMENT EMPLOYEES AND 
                   CONTRACTORS.

       (A) In General.--Chapter 93 of title 18, United States 
     Code, is amended by inserting at the end thereof the 
     following new section:


     ``removal and retention of `top secret' documents or material

       ``Sec. 1924. Whoever, being an officer, employee, 
     contractor or consultant of the United States, and having, by 
     virtue of his office, employment, position, or contract, 
     becomes possessed of documents or materials classified at the 
     level of `Top Secret' pursuant to applicable law or Executive 
     order, knowingly removes such documents or materials without 
     authority and retains such documents or materials at an 
     unauthorized location shall be fined not more than $1,000, or 
     imprisoned for not more than one year, or both.''.
       (b) Amendment to Table of Sections.--The table of sections 
     for chapter 93 of title 18, United States Code, is amended by 
     adding at the end thereof the following new item:

``1924. Removal of `Top Secret' documents or material.''

     SEC.  08. JURISDICTION OF UNITED STATES COURTS TO TRY CASES 
                   INVOLVING ESPIONAGE OUTSIDE THE UNITED STATES.

       (a) Chapter 211 of title 18 of the United States Code is 
     amended by adding a new section 3239 as follows:

     ``Sec. 3239. Jurisdiction for espionage and related offenses

       ``The trial for any offense involving a violation of--
       ``(a) section 793, 794, 794a (as added by section 06 of 
     this Act), 798, 798a (as added by section 05 of this Act), or 
     subsection 1030(a)(1) of this title;
       ``(b) section 601 of the National Security Act of 1947 as 
     added by the Intelligence Identities Protection Act of 1982 
     (50 U.S.C. 421); or
       ``(c) subsections 4(b) or 4(c) of the Subversive Activities 
     Control Act of 1950 (U.S.C. 783(b) or 783(c));

     begun or committed upon the high seas or elsewhere out of the 
     jurisdiction of any particular state or district, may be 
     prosecuted in the District of Columbia, or in the Eastern 
     District of Virginia, or in any other district authorized by 
     law.''.
       (b) The chapter analysis for chapter 211 of title 18 of the 
     United States Code is amended by striking out

``[3239. Repealed.]''

     and inserting in lieu thereof:

``3239. Jurisdiction for espionage and related offenses.''

     SEC.   9. EXPANSION OF EXISTING STATUTE REGARDING FORFEITURE 
                   OF COLLATERAL PROFITS OF CRIME TO ADDITIONAL 
                   ESPIONAGE OFFENSES.

       Section 3681 of title 18, United States Code, is amended--
       (1) in subsection (a), by striking out ``section 794 of 
     this title'' and inserting in lieu thereof ``sections 793, 
     794, 794a (as added by section  06 of this Act), 798, and 
     799a (as added by section  05 of this Act) of this title and 
     section 783 of title 50, United States Code''; and
       (2) by adding at the end thereof the following new 
     subsection:
       ``(e) For purposes of this section, convictions pursuant to 
     military courts-martial for offenses comparable to violations 
     of sections 793, 794, 794a (as added by section  06 of this 
     Act), 798, and 799a (as added by section  05 of this Act) of 
     this title, or a violation of section 783 of title 50, or 
     convictions by foreign courts for offenses which, if 
     perpetrated within the United States, would constitute 
     offenses under section 793, 794, 794a (as added by section 06 
     of this Act), 798, and 799a (as added by section   05 of this 
     Act) of this title, or a violation of section 783 of title 50 
     shall be considered as convictions for which actions may be 
     ordered pursuant to this section.''.

     SEC.  10. DENIAL OF ANNUITIES OR RETIRED PAY TO PERSONS 
                   CONVICTED OF ESPIONAGE IN FOREIGN COURTS 
                   INVOLVING UNITED STATES INFORMATION.

       Section 8312 of title 5, United States Code, is amended by 
     adding at the end thereof the following new subsection:
       ``(d) For purposes of subsections (b)(1) and (c)(1), an 
     offense within the meaning of such subsections is established 
     if the Attorney General certifies to the agency employing or 
     formerly employing the person concerned--
       ``(i) than an individual subject to this chapter has been 
     convicted by an impartial court of appropriate jurisdiction 
     within a foreign country in circumstances in which the 
     conduct violates the provisions of law enumerated in 
     subsections (b)(1) and (c)(1), or would violate such 
     provisions, had such conduct taken place within the United 
     States, and that such conviction is not being appealed or 
     that final action has been taken on such appeal;
       ``(2) that such conviction was obtained in accordance with 
     procedures that provided the defendant due process rights 
     comparable to such rights provided by the United States 
     Constitution, and such conviction was based upon evidence 
     which would have been admissible in the courts of the United 
     States; and
       ``(3) that such conviction occurred after the date of 
     enactment of this subsection:

     Provided, That any certification made pursuant to this 
     paragraph shall be subject to review by the United States 
     Court of Claims based upon the application of the individual 
     concerned, or his or her attorney, alleging that any of the 
     conditions set forth in subsections (1), (2), (3), herein, as 
     certified by the Attorney General, have not been satisfied in 
     his or her particular circumstances. Should the court 
     determine that any of these conditions has not been satisfied 
     in such case, the court shall order any annuity or retirement 
     benefit to which the person concened is entitled to be 
     restored and shall order that any payments which may have 
     been previously denied or withheld to be paid by the 
     department or agency concerned.

     SEC. 11. AUTHORIZING THE FBI TO OBTAIN CONSUMER REPORTS ON 
                   PERSONS BELIEVED TO BE AGENTS OF FOREIGN 
                   POWERS.

       Section 608 of the Consumer Credit Protection Act (15 
     U.S.C. 1681f) is amended--
       (1) by inserting ``(a)'' before ``Notwithstanding''; and
       (2) by inserting at the end thereof the following new 
     subsections:
       ``(b) Notwithstanding the provisions of section 604, a 
     consumer reporting agency shall, upon request, furnish a 
     consumer report to the Federal Bureau of Investigation, if 
     the Director of the Federal Bureau of Investigation, or the 
     Director's designee, certifies in writing to the consumer 
     reporting agency that such records are sought in connection 
     with an authorized foreign counterintelligence investigation 
     and that there are specific and articulable facts giving 
     reason to believe that the person to whom the requested 
     consumer report relates is an agent of a foreign power, as 
     defined in section 101 of the Foreign Intelligence 
     Surveillance Act of 1978 (50 U.S.C. 1801).
       ``(c) Notwithstanding the provisions of section 604, a 
     consumer reporting agency shall furnish identifying 
     information respecting any consumer, limited to name, 
     address, former addresses, places of employment, or former 
     places of employment, to a representative of the Federal 
     Bureau of Investigation when presented with a written request 
     signed by the Director of the Federal Bureau of 
     Investigation, or the Director's designee, stating that the 
     information is necessary to the conduct of an authorized 
     foreign counter-intelligence investigation.
       ``(d) No consumer reporting agency, or officer, employee, 
     or agent of such institution shall disclose to any person 
     that the Federal Bureau of Investigation has sought or 
     obtained a consumer report or identifying information 
     respecting any consumer under this section.
       ``(e) On an annual basis the Director of the Federal Bureau 
     of Investigation shall fully inform the Permanent Select 
     Committee on Intelligence of the House of Representatives and 
     the Select Committee on Intelligence of the Senate concerning 
     all requests made under subsections (b) and (c).''.

     SEC.   12. TO PROVIDE FOR REWARDS FOR INFORMATION CONCERNING 
                   ESPIONAGE.

       (a) In General.--Chapter 204 of title 18, United States 
     Code, is amended--
       (1) by inserting at the end of the chapter heading ``AND 
     ESPIONAGE'';
       (2) in section 3071, by inserting ``(a)'' immediately 
     before ``With respect to'';
       (3) in section 3071, adding at the end thereof the 
     following new subsection:
       ``(b) With respect to acts of espionage involving or 
     directed at United States information classified in the 
     interest of national security, the Attorney General may 
     reward any individual who furnishes information--
       ``(1) leading to the arrest or conviction, in any country, 
     of any individual or individuals for commission of an act of 
     espionage against the United States;
       ``(2) leading to the arrest or conviction, in any country, 
     of any individual or individuals for conspiring or attempting 
     to commit an act of espionage against the United States; or
       ``(3) leading to the prevention or frustration of an act of 
     espionage against the United States.''.
       (b) Amount of Rewards.--Section 3072 of title 18, United 
     States Code, is amended by striking out ``$500,000'' and 
     inserting in lieu thereof ``$1,000,000''.
       (c) Definitions.--Section 3077 of title 18, United States 
     Code, is amended by inserting at the end thereof the 
     following new paragraphs:
       ``(8) `act of espionage' means an activity that is a 
     violation of sections 794, 794a (as added by section  06 of 
     this Act), 798, or 799a (as added by section  05 of this Act) 
     of this title or section 783 of title 50, United States Code.
       ``(9) `United States information classified in the 
     interests of national security' means information originated, 
     owned, or possessed by the United States Government 
     concerning the national defense and foreign relations of the 
     United States that has been determined pursuant to law or 
     Executive order to require protection against unauthorized 
     disclosure and that has been so designated.''.

     SEC.  13. TO PROVIDE A COURT ORDER PROCESS FOR PHYSICAL 
                   SEARCHES UNDERTAKEN FOR FOREIGN INTELLIGENCE 
                   PURPOSES.

       The Foreign Intelligence Surveillance Act of 1978 is 
     amended by inserting at the end thereof the following new 
     title:

  ``TITLE IV--PHYSICAL SEARCHES WITHIN THE UNITED STATES FOR FOREIGN 
                         INTELLIGENCE PURPOSES


 ``authorization of physical searches for foreign intelligence purposes

       ``Sec. 401. (a) Applications for a court order under this 
     title are authorized if the President has, in writing, 
     empowered the Attorney General to approve applications to the 
     Foreign Intelligence Surveillance Court, and a judge of that 
     court to whom application is made may, notwithstanding any 
     other law, grant an order, in conformity with section 403, 
     approving a physical search in the United States, for the 
     purpose of collecting foreign intelligence information of--
       ``(1) the property, information or material of a foreign 
     power as defined in section 101(a) (1), (2), and (3) of this 
     Act, or
       ``(2) the premises, property, information or material of an 
     agent of a foreign power or a foreign power as defined in 
     section 101 (a)(4), (5), and (6) of this Act.
       ``(b) The Foreign Intelligence Surveillance Court shall 
     have jurisdiction to hear applications for and grant orders 
     approving a physical search for the purpose of obtaining 
     foreign intelligence information anywhere within the United 
     States under the procedures set forth in this title, except 
     that no judge shall hear the same application which has been 
     denied previously by another judge. If any judge denies an 
     application for an order authorizing a physical search under 
     this title, such judge shall provide immediately for the 
     record a written statement of each reason for his decision 
     and, on motion of the United States, the record shall be 
     transmitted, under seal, to the Court of Review.
       ``(c) The Court of Review shall have jurisdiction to review 
     the denial of any application made under this title. If such 
     court determines that the application was properly denied, 
     the Court shall immediately provide for the record a written 
     statement of each reason for its decision and, on petition of 
     the United States for a writ of certiorari, the record shall 
     be transmitted under seal to the Supreme Court, which shall 
     have jurisdiction to review such decision.
       ``(d) Judicial proceedings under this title shall be 
     concluded as expeditiously as possible. The record of 
     proceedings under this title, including applications made and 
     orders granted, shall be maintained under security measures 
     established by the Chief Justice of the United States in 
     consultation with the Attorney General and the Director of 
     Central Intelligence.


                       ``application for an order

       ``Sec. 402. (a) Each application for an order approving a 
     physical search under this title shall be made by a Federal 
     officer in writing upon oath or affirmation to a judge of the 
     Foreign Intelligence Surveillance Court. Each application 
     shall require the approval of the Attorney General based upon 
     the Attorney General's finding that it satisfied the criteria 
     and requirements for such application as set forth in this 
     title. It shall include--
       ``(1) the identity, if known, or a description of the 
     target of the search;
       ``(2) the authority conferred on the Attorney General by 
     the President of the United States and the approval of the 
     Attorney General to make the application;
       ``(3) the identity of the Federal officer making the 
     application and a detailed description of the premises or 
     property to be searched and of the information, material, or 
     property to be seized, reproduced, or altered;
       ``(4) a statement of the facts and circumstances relied 
     upon by the applicant to justify the applicant's belief 
     that--
       ``(A) the target of the physical search is a foreign power 
     or an agent of a foreign power;
       ``(B) the premises or property to be searched contains 
     foreign intelligence information;
       ``(C) the premises or property to be searched is owned, 
     used, possessed by, or is in transit to or from a foreign 
     power or an agent of a foreign power;
       ``(5) a statement of the proposed minimization procedures;
       ``(6) a statement of the manner in which the physical 
     search is to be conducted;
       ``(7) a statement of the facts concerning all previous 
     applications that have been made to any judge under this 
     title involving any of the persons, premises, or property 
     specified in the application, and the action taken on each 
     previous applications;
       ``(8) a statement of the facts concerning any search 
     described in section 406(b), below, which involves any of the 
     persons, premises, or property specified in the application; 
     and
       ``(9) a statement that the purpose of the physical search 
     is to obtain foreign intelligence information.
       ``(b) The judge may require the applicant to furnish such 
     other information as may be necessary to make the 
     determinations required by section 403.


                         ``issuance of an order

       ``Sec. 403. (a) Upon an application made pursuant to 
     section 402, the judge shall enter an ex parte order as 
     requested or as modified approving the physical search if the 
     judge finds that--
       ``(1) the President has authorized the Attorney General to 
     approve applications for physical searches for foreign 
     intelligence purposes;
       ``(2) the application has been made by a Federal officer 
     and approved by the Attorney General;
       ``(3) on the basis of the facts submitted by the applicant 
     there is probable cause to believe that--
       ``(A) the target of the physical search is a foreign power 
     or an agent of a foreign power: Provided, That no United 
     States person may be considered an agent of a foreign power 
     solely upon the basis of activities protected by the first 
     amendment to the Constitution of the United States;
       ``(B) the premises or property to be searched are owned, 
     used, possessed by, or is in transit to or from an agent of a 
     foreign power or a foreign power; and
       ``(C) physical search of such premises or property can 
     reasonably be expected to yield foreign intelligence 
     information which cannot reasonably be obtained by normal 
     investigative means; and
       ``(4) the proposed minimization procedures meet the 
     definition of minimization contained in this title; and
       ``(5) the application which has been filed contains all 
     statements required by section 402.
       ``(b) An order approving a physical search under this 
     section shall--
       ``(1) specify--
       ``(A) the Federal officer or officers authorized to conduct 
     the physical search and the identity, if known, or a 
     description of the target of the physical search;
       ``(B) the premises or property to be searched and the 
     information, material, or property to be seized, altered, or 
     reproduced;
       ``(C) the type of foreign intelligence information sought 
     to be acquired; and
       ``(D) a statement of the manner in which the physical 
     search is to be conducted and, whenever more than one 
     physical search is authorized under the order, the authorized 
     scope of each search and what minimization procedures shall 
     apply to the information acquired by each search;
       ``(2) direct--
       ``(A) that the minimization procedures be followed;
       ``(B) that, upon the request of the applicant, a specified 
     landlord, custodian, or other specified person furnish the 
     applicant forthwith all information, facilities, or 
     assistance necessary to accomplish the physical search in 
     such a manner as will protect its secrecy and produce a 
     minimum of interference with the activities of the landlord, 
     custodian, or other person; and that such landlord, custodian 
     or other person maintain under security procedures approved 
     by the Attorney General and the Director of Central 
     Intelligence any records concerning the search or the aid 
     furnished that such person wishes to retain;
       ``(C) that the physical search be undertaken within 30 days 
     of the date of the order, or, if the physical search is of 
     the property, information or material of a foreign power as 
     defined in section 101(a)(1), (2), or (3) of this Act, that 
     such search be undertaken within one year of the order; and
       ``(D) that the federal officer conducting the physical 
     search promptly report to the court the circumstances and 
     results of the physical search.
       ``(c) At any time after a physical search has been carried 
     out, the judge to whom the return has been made may assess 
     compliance with the minimization procedures by reviewing the 
     circumstances under which information concerning United 
     States persons was acquired, retained, or disseminated.
       ``(d) Application made and orders granted under this title 
     shall be retained for a period of at least ten years from the 
     date of the application.
       ``(e) Not more than 60 days after a physical search of the 
     residence of a United States person authorized by this title, 
     or such a search in the circumstances described in section 
     406(b), has been conducted, the Attorney General shall 
     provide the United States person with an inventory which 
     shall include--
       ``(1) existence or not of a court order authorizing the 
     physical search and the date of the order;
       ``(2) the date of the physical search and an identification 
     of the premises or property searched; and
       ``(3) a list of any information, material, or property 
     seized, altered, or reproduced.
       ``(f) On an ex parte showing of good cause by the Attorney 
     General to a judge of the Foreign Intelligence Surveillance 
     Court the provision of the inventory required by subsection 
     (e) may be postponed for a period not to exceed 90 days. At 
     the end of such period the provision of the inventory may, 
     upon a similar showing, be postponed indefinitely. The denial 
     of a request for such postponements may be reviewed as 
     provided in section 401.


                          ``use of information

       ``Sec. 404. (a) Information acquired from a physical search 
     conducted pursuant to this title concerning any United States 
     person may be used and disclosed by Federal officers and 
     employees without the consent of the United States person 
     only in accordance with the minimization procedures required 
     by this title. No information acquired from a physical search 
     pursuant to this title may be used or disclosed by Federal 
     officers or employees except for lawful purposes.
       ``(b) No information acquired pursuant to this title shall 
     be disclosed for law enforcement purposes unless such 
     disclosure is accompanied by a statement that such 
     information, or any information derived therefrom, may only 
     be used in a criminal proceeding with the advance 
     authorization of the Attorney General.
       ``(c) Whenever the United States intends to enter into 
     evidence or otherwise use or disclose in any trial, hearing, 
     or other proceeding in or before any court, department, 
     officer, agency, regulatory body, or other authority of the 
     United States, against an aggrieved person, any information 
     obtained or derived from a physical search of the premises or 
     property of that aggrieved person pursuant to the authority 
     of this title, the United States shall, prior to the trial, 
     hearing, or the other proceeding or at a reasonable time 
     prior to an effort to so disclose or so use that information 
     or submit it in evidence, notify the aggrieved person and the 
     court or other authority in which the information is to be 
     disclosed or used that the United States intends to so 
     disclose or so use such information.
       ``(d) Whenever any State or political subdivision thereof 
     intends to enter into evidence or otherwise use of disclose 
     in any trial, hearing, or other proceeding in or before any 
     court, department, officer, agency, regulatory body, or other 
     authority of a State or a political subdivision thereof 
     against an aggrieved person any information obtained or 
     derived from a physical search of the premises or property of 
     that aggrieved person pursuant to the authority of this 
     title, the State or political subdivision thereof shall 
     notify the aggrieved person, the court or other authority in 
     which the information is to be disclosed or used, and the 
     Attorney General that the State or political subdivision 
     thereof intends to so disclose or so use such information.
       ``(e) Any person against whom evidence obtained or derived 
     from a physical search to which he is an aggrieved person is 
     to be, or has been, introduced or otherwise used or disclosed 
     in any trial, hearing, or other proceeding in or before any 
     court, department, officer, agency, regulatory body, or other 
     authority of the United States, a State, or a political 
     subdivision thereof, may move to suppress the evidence 
     obtained or derived from such search on the grounds that--
       ``(1) the information was unlawfully acquired; or
       ``(2) the physical search was not made in conformity with 
     an order of authorization or approval.

     Such a motion shall be made before the trial, hearing, or 
     other proceeding unless there was no opportunity to make such 
     a motion or the person was not aware of the grounds of the 
     motion.
       ``(f) Whenever a court of other authority is notified 
     pursuant to subsection (c) or (d), or whenever a motion is 
     made pursuant to subsection (e), or whenever any motion or 
     request is made by an aggrieved person pursuant to any other 
     statute or rule of the United States or any State before any 
     court or other authority of the United States or any State to 
     discover or obtain applications or orders or other materials 
     relating to a physical search authorized by this title or to 
     discover, obtain, or suppress evidence or information 
     obtained or derived from a physical search authorized by this 
     title, the United States district court or, where the 
     motion is made before another authority, the United States 
     district court in the same district as the authority 
     shall, notwithstanding any other law, if the Attorney 
     General files an affidavit under oath that disclosure or 
     an adversary hearing would harm the national security of 
     the United States, review in camera and ex parte the 
     application, order, and such other materials relating to 
     the physical search as may be necessary to determine 
     whether the physical search of the aggrieved person was 
     lawfully authorized and conducted. In making this 
     determination, the court may disclose to the aggrieved 
     person, under appropriate security procedures and 
     protective orders, portions of the application, order, or 
     other materials relating to the physical search only where 
     such disclosure is necessary to make an accurate 
     determination of the legality of the physical search.
       ``(g) If the United States district court pursuant to 
     subsection (f) determines that the physical search was not 
     lawfully authorized or conducted, it shall, in accordance 
     with the requirements of law, suppress the evidence which was 
     unlawfully obtained or derived from the physical search of 
     the aggrieved person or otherwise grant the motion of the 
     aggrieved person. If the court determines that the physical 
     search was lawfully authorized or conducted, it shall deny 
     the motion of the aggrieved person except to the extent that 
     due process requires discovery or disclosure.
       ``(h) Orders granting motions or requests under subsection 
     (g), decisions under this section that a physical search was 
     not lawfully authorized or conducted, and orders of the 
     United States district court requiring review or granting 
     disclosure of applications, orders or other materials 
     relating to the physical search shall be final orders and 
     binding upon all courts of the United States and the several 
     States except a United States court of appeals and the 
     Supreme Court.
       ``(i) The provisions of this section regarding the use or 
     disclosure of information obtained or derived from a physical 
     search shall apply to information obtained or derived from a 
     search conducted without a court order to obtain foreign 
     intelligence information which is not a physical search as 
     defined in this title solely because the existence of exigent 
     circumstances would require a warrant for law enforcement 
     purposes.


                              ``oversight

       ``Sec. 405. (a) On a semiannual basis the Attorney General 
     shall fully inform the House Permanent Select Committee on 
     Intelligence and the Senate Select Committee on Intelligence 
     concerning all physical searches conducted pursuant to this 
     title, and all other searches, except those reported under 
     section 108 of this Act, conducted in the United States for 
     foreign intelligence purposes. On an annual basis the 
     Attorney General shall also provide to those committees a 
     report setting forth with respect to the preceding calendar 
     year--
       ``(1) the total number of applications made for orders 
     approving physical searches under this title; and
       ``(2) the total number of such orders either granted, 
     modified, or denied.
       ``(b) Whenever a search is conducted without a court order 
     to obtain foreign intelligence information which is not a 
     physical search as defined in this title solely because the 
     existence of exigent circumstances would not require a 
     warrant for law enforcement purposes, a full report of such 
     search, including a description of the exigent circumstances, 
     shall be maintained by the Attorney General. Each such report 
     shall be transmitted to the Foreign Intelligence Surveillance 
     Court promptly after the search is conducted.


                 ``authority for intelligence searches

       ``Sec. 406. (a) The procedures contained in this title 
     shall be the exclusive means by which a physical search, as 
     defined in this title, may be conducted in the United States 
     for foreign intelligence purposes, and an order issued under 
     this title authorizing a physical search shall constitute a 
     search warrant authorized by law for purposes of any other 
     law.
       ``(b) Searches conducted in the United States to collect 
     foreign intelligence information, other than physical 
     searches as defined in this title and electronic surveillance 
     as defined in this Act, and physical searches conducted in 
     the United States without a court order to collect foreign 
     intelligence information may be conducted only pursuant to 
     regulations issued by the Attorney General. Such 
     regulations, and any changes thereto, shall be provided to 
     the Select Committee on Intelligence of the Senate and the 
     Permanent Select Committee on Intelligence of the House of 
     Representatives at least 14 days prior to the taking 
     effect. Any regulations issued by the Attorney General 
     regarding such searches which were in effect as of June 1, 
     1990, shall be deemed to be regulations required by this 
     subsection.


                              ``penalties

       ``Sec. 407. (a) Offense.--A person is guilty of an offense 
     if he intentionally--
       ``(1) under color of law for the purpose of obtaining 
     foreign intelligence information, engages in physical search 
     within the United States except as authorized by statute; or
       ``(2) discloses or uses information obtained under color of 
     law by physical search within the United States, knowing or 
     having reason to know that the information was obtained 
     through physical search not authorized by statute, for the 
     purposes of obtaining intelligence information.
       ``(b) Defense.--It is a defense to a prosecution under 
     subsection (a) that the defendant was a law enforcement or 
     investigative officer engaged in the course of his official 
     duties and the physical search was authorized by and 
     conducted pursuant to a search warrant or court order of a 
     court of competent jurisdiction.
       ``(c) Penalty.--An offense described in this section is 
     punishable by a fine of not more than $10,000 or imprisonment 
     for not more than five years, or both.
       ``(d) Jurisdiction.--There is Federal jurisdiction over an 
     offense under this section if the person committing the 
     offense was an officer or employee of the United States at 
     the time the offense was committed.


                           ``civil liability

       ``Sec. 408. Civil Action.--An aggrieved person, other than 
     a foreign power or an agent of a foreign power, as defined in 
     section 101 (a) or (b)(1)(A), respectively, of this Act, 
     whose premises, property information, or material has been 
     subjected to a physical search within the United States or 
     about whom information obtained by such a physical search has 
     been disclosed or used in violation of section 407 shall have 
     a cause of action against any person who committed such 
     violation and shall be entitled to recover--
       ``(a) actual damages;
       ``(b) punitive damages; and
       ``(c) reasonable attorney's fees and other investigative 
     and litigation costs reasonably incurred.


                             ``definitions

       ``Sec. 409. As used in this title:
       ``(a) The terms `foreign power,' `agent of a foreign 
     power,' `international terrorism,' `sabotage,' `foreign 
     intelligence information,' `Attorney General,' `United States 
     person,' `United States',' `person,' and `State' shall have 
     the same meaning as in Section 101 of this Act.
       ``(b) `Physical search' means any physical intrusion into 
     premises or property (including examination of the interior 
     of property by technical means) or any seizure, reproduction 
     by technical means) or any seizure, reproduction or 
     alteration of information, material or property, under 
     circumstances in which a person has a reasonable expectation 
     of privacy and a warrant would be required for law 
     enforcement purposes, but does not include `electronic 
     surveillance' as defined in subsection 101(f) of this Act.
       ``(c) `Minimization procedures' with respect to physical 
     search, means--
       ``(1) specific procedures, which shall be adopted by the 
     Attorney General, that are reasonably designed in light of 
     the purposes and technique of the particular physical search, 
     to minimize the acquisition and retention, and prohibit the 
     dissemination, of non-publicly available information 
     concerning unconsenting United States persons consistent with 
     the need of the United States persons consistent with the 
     need of the United States to obtain, produce, and disseminate 
     foreign intelligence information;
       ``(2) procedures that require that non-publicly available 
     information, which is not foreign intelligence information, 
     as defined in subsection 101(e)(1) of this Act, shall not be 
     disseminated in a manner that identifies any United States 
     person, without such person's consent, unless such person's 
     identity is necessary to understand such foreign intelligence 
     information or assess its importance; and
       ``(3) notwithstanding paragraphs (1) and (2), procedures 
     that allow for the retention and dissemination of information 
     that is evidence of a crime which has been, is being, or is 
     about to be committed and that is to be retained or 
     disseminated for law enforcement purposes.''
       ``(d) `Aggrieved person' means a person whose premises, 
     property, information, or material is the target of physical 
     search or any other person whose premises, property, 
     information, or material was subject to physical search.
       ``(e) `Foreign Intelligence Surveillance Court' means the 
     court established by section 103(a) of this Act.
       ``(f) `Court of Review' means the court established by 
     section 103(b) of this Act.


                            ``effective date

       ``Sec. 410. The provisions of this title shall become 
     effective 90 days after the date of enactment of this title, 
     except that any physical search approved by the Attorney 
     General to gather foreign intelligence information shall not 
     be deemed unlawful for failure to follow the procedures of 
     this title, if that search is conducted within 180 days 
     following the date of enactment of this title pursuant to 
     regulations issued by the Attorney General, which are in the 
     possession of the Select Committee on Intelligence of the 
     Senate and the Permanent Select Committee on Intelligence of 
     the House of Representatives prior to the date of 
     enactment.''.
                                 ______


                   HATFIELD AMENDMENT NOS. 1490-1491

  Mr. HATFIELD proposed two amendments to the bill S. 4, supra; as 
follows:
       At the appropriate place, insert the following section:

     SEC. ____. URBAN UNIVERSITY BUSINESS INITIATIVE GRANTS.

       (a) Urban University Business Initiative Grants.--
       (1) Authorization.--The Secretary of Commerce (hereafter in 
     this section referred to as the ``Secretary'') is authorized 
     to make grants to eligible institutions in accordance with 
     this section.
       (2) Application.--
       (A) In general.--An eligible institution seeking assistance 
     under this section shall submit to the Secretary an 
     application at such time, in such form, and containing or 
     accompanied by such information and assurances as the 
     Secretary may require by regulation.
       (B) Contents.--Except as provided in subparagraph (C), each 
     application submitted pursuant to subparagraph (A) shall 
     include--
       (i) a description of the activities and services for which 
     assistance is sought;
       (ii) evidence of coordination with any small business 
     development centers in existence in the community; and
       (iii) documentation of the formation of a consortium that 
     includes, in addition to eligible institutions, one or more 
     of the following entities:

       (I) A nonprofit organization.
       (II) A business or other employer.

       (C) Waiver.--The Secretary may waive the requirements of 
     subparagraph (B)(iii) for any applicant who can demonstrate 
     to the satisfaction of the Secretary that the applicant has 
     devised an integrated and coordinated plan that otherwise 
     meets the requirements of this section.
       (3) Selection Procedures.--Not later than 120 days after 
     the date of enactment of this section, the Secretary shall, 
     by regulation, develop a formal procedure for the submission 
     of applications under this section and shall publish in the 
     Federal Register an announcement of that procedure and the 
     availability of funds under this section.
       (b) Authorized Activities.--
       (1) In general.--Funds provided under this section shall be 
     used to design and implement programs to assist businesses, 
     especially those in lower income urban communities, to become 
     more productive and able to compete in the global 
     marketplace.
       (2) Specific authorized activities.--Activities conducted 
     with funds made available under this section may include 
     research on, or planning and implementation of technology 
     transfer, technical training, the delivery of services, or 
     technical assistance in--
       (A) business development;
       (B) business creation;
       (C) business expansion; and
       (D) human resource management.
       (c) Peer Review Panel.--
       (1) Establishment.--Not later than 90 days after the date 
     on which the Secretary publishes the announcement in the 
     Federal Register in accordance with subsection (a)(3), the 
     Secretary shall appoint a peer review panel (hereafter in 
     this section referred to as the ``panel'').
       (2) Membership.--In appointing the panel under paragraph 
     (1), the Secretary shall consult with officials of other 
     Federal agencies and with non-Federal organizations in order 
     to ensure that--
       (A) the panel membership is geographically balanced; and
       (B) the panel is composed of representatives from public 
     and private institutions of higher education, labor, 
     business, and nonprofit organizations having expertise in 
     business development in lower income urban communities.
       (3) Duties.--The panel shall--
       (A) review applications submitted under this section; and
       (B) make recommendations to the Secretary concerning the 
     selection of grant recipients.
       (d) Disbursement of Funds.--
       (1) Limitation on amount.--The Secretary shall not provide 
     assistance under this section to any recipient which exceeds 
     $400,000 during any 1-year period.
       (2) Equitable geographic distribution.--The Secretary shall 
     award grants under this section in a manner that achieves 
     equitable geographic distribution of such grants.
       (e) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Lower income urban community.--The term ``lower income 
     urban community'' means an urban area in which the percent of 
     residents living below the Federal poverty level is not less 
     than 115 percent of the statewide average.
       (2) Urban area.--
       (A) In general.--Except as provided in subparagraph (B), 
     the term ``urban area'' means a primary metropolitan 
     statistical area of the United States Department of Commerce, 
     Bureau of the Census.
       (B) Exception.--With respect to a State that does not 
     contain an urban area, as defined in subparagraph (A), the 
     Secretary shall designate 1 area in the State as an urban 
     area for purposes of this section.
       (3) Eligible institution.--
       (A) Institution or consortium.--The term ``eligible 
     institution'' means a nonprofit institution of higher 
     education that meets the requirements of subparagraph (B), or 
     a consortium of such institutions, any 1 of which meets the 
     requirements of subparagraph (B).
       (B) Requirements.--An institution meets the requirements of 
     this subparagraph if the institution--
       (i) is located in an urban area;
       (ii) draws a substantial portion of its undergraduate 
     students from the urban area in which such institution is 
     located, or from contiguous areas;
       (iii) carries out programs to make postsecondary 
     educational opportunities more accessible to residents of 
     such urban area, or contiguous areas;
       (iv) has the present capacity to provide resources 
     responsive to the needs and priorities of such urban area and 
     contiguous areas;
       (v) offers a range of professional, technical, or graduate 
     programs sufficient to sustain the capacity of such 
     institution to provide such resources;
       (vi) has demonstrated and sustained a sense of 
     responsibility to such urban area and contiguous areas and 
     the people of such areas; and
       (vii) has a school of business accredited by the American 
     Assembly of Collegiate Schools of Business (or similar 
     organization) with faculty experienced in conducting research 
     on issues of immediate concern to small and emerging 
     businesses.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $10,000,000, for fiscal year 1995; and
       (2) such sums as may be necessary, for fiscal years 1996, 
     1997, 1998, and 1999.
       Add at the end of the bill the following new title:
             TITLE VIII--LOCAL EMPOWERMENT AND FLEXIBILITY

     SEC. 801. SHORT TITLE.

       This title may be cited as the ``Local Empowerment and 
     Flexibility Act of 1994''.

     SEC. 802. FINDINGS.

       The Congress finds that--
       (1) historically, Federal social service programs have 
     addressed the Nation's social problems by providing 
     categorical assistance with detailed requirements relating to 
     the use of funds;
       (2) while the assistance described in paragraph (1) has 
     been directed at critical problems, some program requirements 
     may inadvertently impede the effective delivery of social 
     services;
       (3) the Nation's local governments and private, nonprofit 
     organizations are dealing with increasingly complex social 
     problems which require the delivery of many kinds of social 
     services;
       (4) the Nation's communities are diverse, and different 
     social needs are present in different communities;
       (5) it is more important than ever to provide programs 
     that--
       (A) promote local delivery of social services to meet the 
     full range of needs of individuals and families;
       (B) respond flexibly to the diverse needs of the Nation's 
     communities;
       (C) reduce the barriers between programs that impede local 
     governments' ability to effectively deliver social services; 
     and
       (D) empower local governments and private, nonprofit 
     organizations to be innovative in creating programs that meet 
     the unique needs of the people in their communities while 
     continuing to address national social service goals; and
       (6) many communities have innovative planning and community 
     involvement strategies for social services, but Federal, 
     State, and local regulations often hamper full implementation 
     of local plans.

     SEC. 803. PURPOSES.

       The purposes of this title are to--
       (1) enable more efficient use of Federal, State, and local 
     resources;
       (2) place less emphasis in Federal social service programs 
     on measuring resources and procedures and more emphasis on 
     achieving Federal, State, and local social services goals;
       (3) enable local governments and private, nonprofit 
     organizations to adapt programs of Federal assistance to the 
     particular needs of low income citizens and the operating 
     practices of recipients, by--
       (A) drawing upon appropriations available from more than 
     one Federal program; and
       (B) integrating programs and program funds across existing 
     Federal assistance categories; and
       (4) enable local governments and private, nonprofit 
     organizations to work together and build stronger cooperative 
     partnerships to address critical social service problems.

     SEC. 804. DEFINITIONS.

       For purposes of this Act--
       (1) the term ``approved local flexibility plan'' means a 
     local flexibility plan that combines funds from Federal, 
     State, local government or private sources to address the 
     social service needs of a community (or any part of such a 
     plan) that is approved by the Community Enterprise Board 
     under section 806;
       (2) the term ``community advisory committee'' means such a 
     committee established by a local government under section 
     808;
       (3) the term ``Community Enterprise Board'' means the board 
     established by the President that is composed of the--
       (A) Vice President;
       (B) Assistant to the President for Domestic Policy;
       (C) Assistant to the President for Economic Policy;
       (D) Secretary of the Treasury;
       (E) Attorney General;
       (F) Secretary of the Interior;
       (G) Secretary of Agriculture;
       (H) Secretary of Commerce;
       (I) Secretary of Labor;
       (J) Secretary of Health and Human Services;
       (K) Secretary of Housing and Urban Development;
       (L) Secretary of Transportation;
       (M) Secretary of Education;
       (N) Administrator of the Environmental Protection Agency;
       (O) Director of National Drug Control Policy;
       (P) Administrator of the Small Business Administration;
       (Q) Director of the Office of Management and Budget; and
       (R) Chair of the Council of Economic Advisers.
       (4) the term ``covered Federal assistance program'' means 
     an eligible Federal assistance program that is included in a 
     local flexibility plan of a local government;
       (5) the term ``eligible Federal assistance program''--
       (A) means a Federal program under which assistance is 
     available, directly or indirectly, to a local government or a 
     qualified organization to carry out a program for--
       (i) economic development;
       (ii) employment training;
       (iii) health;
       (iv) housing;
       (v) nutrition;
       (vi) other social services; or
       (vii) rural development; and
       (B) does not include a Federal program under which 
     assistance is provided by the Federal Government directly to 
     a beneficiary of that assistance or to a State as a direct 
     payment to an individual;
       (6) the term ``eligible local government'' means a local 
     government that is eligible to receive assistance under 1 or 
     more covered Federal programs;
       (7) the term ``local flexibility plan'' means a 
     comprehensive plan for the integration and administration by 
     a local government of assistance provided by the Federal 
     Government under 2 or more eligible Federal assistance 
     programs;
       (8) the term ``local government'' means a subdivision of a 
     State that is a unit of general local government (as defined 
     under section 6501 of title 31, United States Code);
       (9) the term ``low income'' means having an income that is 
     not greater than 200 percent of the Federal poverty income 
     level;
       (10) the term ``priority funding'' means giving higher 
     priority (including by the assignment of extra points, if 
     applicable) to applications for Federal assistance submitted 
     by a local government having an approved local flexibility 
     program, by--
       (A) a person located in the jurisdiction of such a 
     government; or
       (B) a qualified organization eligible for assistance under 
     a covered Federal assistance program included in such a plan;
       (11) the term ``qualified organization'' means a private, 
     nonprofit organization described in section 501(c)(3) of the 
     Internal Revenue Code of 1986 that is exempt from taxation 
     under section 501(a) of the Internal Revenue Code of 1986; 
     and
       (12) the term ``State'' means the 50 States, the District 
     of Columbia, Puerto Rico, American Samoa, Guam, and the 
     Virgin Islands.

     SEC. 805. DEMONSTRATION PROGRAM.

       The Community Enterprise Board shall--
       (1) establish and administer a local flexibility 
     demonstration program by approving local flexibility plans in 
     accordance with the provisions of this title;
       (2) no later than 180 days after the date of the enactment 
     of this Act, select no more than 30 local governments from no 
     more than 6 States to participate in such program, of which--
       (A) 3 States shall each have a population of 3,500,000 or 
     more as determined under the most recent decennial census; 
     and
       (B) 3 States shall each have a population of 3,500,000 or 
     less as determined under the most recent decennial census.

     SEC. 806. PROVISION OF FEDERAL ASSISTANCE IN ACCORDANCE WITH 
                   APPROVED LOCAL FLEXIBILITY PLAN.

       (a) Payments to Local Governments.--Notwithstanding any 
     other provision of law, amounts available to a local 
     government or a qualified organization under a covered 
     Federal assistance program included in an approved local 
     flexibility plan shall be provided to and used by the local 
     government or organization in accordance with the approved 
     local flexibility plan.
       (b) Eligibility for Benefits.--An individual or family that 
     is eligible for benefits or services under a covered Federal 
     assistance program included in an approved local flexibility 
     plan may receive those benefits only in accordance with the 
     approved local flexibility plan.

     SEC. 807. APPLICATION FOR APPROVAL OF LOCAL FLEXIBILITY PLAN.

       (a) In General.--A local government may submit to the 
     Community Enterprise Board in accordance with this section an 
     application for approval of a local flexibility plan.
       (b) Contents of Application.--An application submitted 
     under this section shall include--
       (1) a proposed local flexibility plan that complies with 
     subsection (c);
       (2) certification by the chief executive of the local 
     government, and such additional assurances as may be required 
     by the Community Enterprise Board, that--
       (A) the local government has the ability and authority to 
     implement the proposed plan, directly or through contractual 
     or other arrangements, throughout the geographic area in 
     which the proposed plan is intended to apply;
       (B) amounts are available from non-Federal sources to pay 
     the non-Federal share of all covered Federal assistance 
     programs included in the proposed plan; and
       (C) low income individuals and families that reside in that 
     geographic area participated in the development of the 
     proposed plan;
       (3) any comments on the proposed plan submitted under 
     subsection (d) by the Governor of the State in which the 
     local government is located;
       (4) public comments on the plan including the transcript of 
     at least 1 public hearing and comments of the appropriate 
     community advisory committee established under section 810; 
     and
       (5) other relevant information the Community Enterprise 
     Board may require to approve the proposed plan.
       (c) Contents of Plan.--A local flexibility plan submitted 
     by a local government under this section shall include--
       (1) the geographic area to which the plan applies and the 
     rationale for defining the area;
       (2) the particular groups of individuals, by age, service 
     needs, economic circumstances, or other defining factors, who 
     shall receive services and benefits under the plan;
       (3)(A) specific goals and measurable performance criteria, 
     a description of how the plan is expected to attain those 
     goals and criteria;
       (B) a description of how performance shall be measured; and
       (C) a system for the comprehensive evaluation of the impact 
     of the plan on participants, the community, and program 
     costs;
       (4) the eligible Federal assistance programs to be included 
     in the plan as covered Federal assistance programs and the 
     specific benefits that shall be provided under the plan under 
     such programs, including--
       (A) criteria for determining eligibility for benefits under 
     the plan;
       (B) the services available;
       (C) the amounts and form (such as cash, in-kind 
     contributions, or financial instruments) of nonservice 
     benefits; and
       (D) any other descriptive information the Community 
     Enterprise Board considers necessary to approve the plan;
       (5) except for the requirements under section 809(b)(3), 
     any Federal statutory or regulatory requirement applicable 
     under a covered Federal assistance program included in the 
     plan, the waiver of which is necessary to implement the plan;
       (6) fiscal control and related accountability procedures 
     applicable under the plan;
       (7) a description of the sources of all non-Federal funds 
     that are required to carry out covered Federal assistance 
     programs included in the plan;
       (8) written consent from each qualified organization for 
     which consent is required under section 806(b)(2); and
       (9) other relevant information the Community Enterprise 
     Board may require to approve the plan.
       (d) Procedure for Applying.--(1) To apply for approval of a 
     local flexibility plan, a local government shall submit an 
     application in accordance with this section to the Governor 
     of the State in which the local government is located.
       (2) A Governor who receives an application from a local 
     government under paragraph (1) may, by no later than 30 days 
     after the date of that receipt--
       (A) prepare comments on the proposed local flexibility plan 
     included in the application;
       (B) describe any State laws which are necessary to waive 
     for successful implementation of a local plan; and
       (C) submit the application and comments to the Community 
     Enterprise Board.
       (3) If a Governor fails to act within 30 days after 
     receiving an application under paragraph (2), the applicable 
     local government may submit the application to the Community 
     Enterprise Board.

     SEC. 808. REVIEW AND APPROVAL OF LOCAL FLEXIBILITY PLANS.

       (a) Review of Applications.--Upon receipt of an application 
     for approval of a local flexibility plan under this title, 
     the Community Enterprise Board shall--
       (1) approve or disapprove all or part of the plan within 45 
     days after receipt of the application;
       (2) notify the applicant in writing of that approval or 
     disapproval by not later than 15 days after the date of that 
     approval or disapproval; and
       (3) in the case of any disapproval of a plan, include a 
     written justification of the reasons for disapproval in the 
     notice of disapproval sent to the applicant.
       (b) Approval.--(1) The Community Enterprise Board may 
     approve a local flexibility plan for which an application is 
     submitted under this title, or any part of such a plan, if a 
     majority of members of the Board determines that--
       (A) the plan or part shall improve the effectiveness and 
     efficiency of providing benefits under covered Federal 
     programs included in the plan by reducing administrative 
     inflexibility, duplication, and unnecessary expenditures;
       (B) the applicant local government has adequately 
     considered, and the plan or part of the plan appropriately 
     addresses, any effect that administration of each covered 
     Federal program under the plan or part of the plan shall have 
     on administration of the other covered Federal programs under 
     that plan or part of the plan;
       (C) the applicant local government has or is developing 
     data bases, planning, and evaluation processes that are 
     adequate for implementing the plan or part of the plan;
       (D) the plan shall more effectively achieve Federal 
     assistance goals at the local level and shall better meet the 
     needs of local citizens;
       (E) implementation of the plan or part of the plan shall 
     adequately achieve the purposes of this title and of each 
     covered Federal assistance program under the plan or part of 
     the plan;
       (F) the plan and the application for approval of the plan 
     comply with the requirements of this title;
       (G) the plan or part of the plan is adequate to ensure that 
     individuals and families that receive benefits under covered 
     Federal assistance programs included in the plan or part 
     shall continue to receive benefits that meet the needs 
     intended to be met under the program;
       (H) the qualitative level of those benefits shall not be 
     reduced for any individual or family; and
       (I) the local government has--
       (i) waived the corresponding local laws necessary for 
     implementation of the plan; and
       (ii) sought any necessary waivers from the State.
       (2) The Community Enterprise Board may not approve any part 
     of a local flexibility plan if--
       (A) implementation of that part would result in any 
     increase in the total amount of obligations or outlays of 
     discretionary appropriations or direct spending under covered 
     Federal assistance programs included in that part, over the 
     amounts of such obligations and outlays that would occur 
     under those programs without implementation of the part; or
       (B) in the case of a plan or part that applies to 
     assistance to a qualified organization under an eligible 
     Federal assistance program, the qualified organization does 
     not consent in writing to the receipt of that assistance in 
     accordance with the plan.
       (3) The Community Enterprise Board shall disapprove a part 
     of a local flexibility plan if a majority of the Board 
     disapproves that part of the plan based on a failure of the 
     part to comply with paragraph (1).
       (4) In approving any part of a local flexibility plan, the 
     Community Enterprise Board shall specify the period during 
     which the part is effective. An approved local flexibility 
     plan shall not be effective after the date of the termination 
     of effectiveness of this title under section 813(a).
       (5) Disapproval by the Community Enterprise Board of any 
     part of a local flexibility plan submitted by a local 
     government under this title shall not affect the eligibility 
     of a local government, a qualified organization, or any 
     individual for benefits under any Federal program.
       (c) Memoranda of Understanding.--(1) The Community 
     Enterprise Board may not approve a part of a local 
     flexibility plan unless each local government and each 
     qualified organization that would receive assistance under 
     the plan enters into a memorandum of understanding under this 
     subsection with the Community Enterprise Board.
       (2) A memorandum of understanding under this subsection 
     shall specify all understandings that have been reached by 
     the Community Enterprise Board, the local government, and 
     each qualified organization that is subject to a local 
     flexibility plan, regarding the approval and implementation 
     of all parts of a local flexibility plan that are the subject 
     of the memorandum, including understandings with respect to--
       (A) all requirements under covered Federal assistance 
     programs that are to be waived by the Community Enterprise 
     Board under section 809(b);
       (B)(i) the total amount of Federal funds that shall be 
     provided as benefits under or used to administer covered 
     Federal assistance programs included in those parts; or
       (ii) a mechanism for determining that amount, including 
     specification of the total amount of Federal funds that shall 
     be provided or used under each covered Federal assistance 
     program included in those parts;
       (C) the sources of all non-Federal funds that shall be 
     provided as benefits under or used to administer those parts;
       (D) measurable performance criteria that shall be used 
     during the term of those parts to determine the extent to 
     which the goals and performance levels of the parts are 
     achieved; and
       (E) the data to be collected to make that determination.
       (d) Limitation on Confidentiality Requirements.--The 
     Community Enterprise Board may not, as a condition of 
     approval of any part of a local flexibility plan or with 
     respect to the implementation of any part of an approved 
     local flexibility plan, establish any confidentiality 
     requirement that would--
       (1) impede the exchange of information needed for the 
     design or provision of benefits under the parts; or
       (2) conflict with law.

     SEC. 809. IMPLEMENTATION OF APPROVED LOCAL FLEXIBILITY PLANS; 
                   WAIVER OF REQUIREMENTS.

       (a) Payments and Administration in Accordance With Plan.--
     Notwithstanding any other law, any benefit that is provided 
     under a covered Federal assistance program included in an 
     approved local flexibility plan shall be paid and 
     administered in the manner specified in the approved local 
     flexibility plan.
       (b) Waiver of Requirements.--(1) Notwithstanding any other 
     law and subject to paragraphs (2) and (3), the Community 
     Enterprise Board may waive any requirement applicable under 
     Federal law to the administration of, or provision of 
     benefits under, any covered Federal assistance program 
     included in an approved local flexibility plan, if that 
     waiver is--
       (A) reasonably necessary for the implementation of the 
     plan; and
       (B) approved by a majority of members of the Community 
     Enterprise Board.
       (2) The Community Enterprise Board may not waive a 
     requirement under this subsection unless the Board finds that 
     waiver of the requirement shall not result in a qualitative 
     reduction in services or benefits for any individual or 
     family that is eligible for benefits under a covered Federal 
     assistance program.
       (3) The Community Enterprise Board may not waive any 
     requirement under this subsection--
       (A) that enforces any constitutional or statutory right of 
     an individual, including any right under--
       (i) title VI of the Civil Rights Act of 1964 (42 U.S.C. 
     2000d et seq.);
       (ii) section 504 of the Rehabilitation Act of 1973 (29 
     U.S.C. 701 et seq.);
       (iii) title IX of the Education Amendments of 1972 (86 
     Stat. 373 et seq.);
       (iv) the Age Discrimination Act of 1975 (42 U.S.C. 6101 et 
     seq.); or
       (v) the Americans with Disabilities Act of 1990;
       (B) for payment of a non-Federal share of funding of an 
     activity under a covered Federal assistance program; or
       (C) for grants received on a maintenance of effort basis.
       (c) Special Assistance.--To the extent permitted by law, 
     the head of each Federal agency shall seek to provide special 
     assistance to a local government or qualified organization to 
     support implementation of an approved local flexibility plan, 
     including expedited processing, priority funding, and 
     technical assistance.
       (d) Evaluation and Termination.--(1) A local government, in 
     accordance with regulations issued by the Community 
     Enterprise Board, shall--
       (A) submit such reports on and cooperate in such audits of 
     the implementation of its approved local flexibility plan; 
     and
       (B) periodically evaluate the effect implementation of the 
     plan has had on--
       (i) individuals who receive benefits under the plan;
       (ii) communities in which those individuals live; and
       (iii) costs of administering covered Federal assistance 
     programs included in the plan.
       (2) No later than 90 days after the end of the 1-year 
     period beginning on the date of the approval by the Community 
     Enterprise Board of an approved local flexibility plan of a 
     local government, and annually thereafter, the local 
     government shall submit to the Community Enterprise Board a 
     report on the principal activities and achievements under the 
     plan during the period covered by the report, comparing those 
     achievements to the goals and performance criteria included 
     in the plan under section 807(c)(3).
       (3)(A) If the Community Enterprise Board, after 
     consultation with the head of each Federal agency responsible 
     for administering a covered Federal assistance program 
     included in an approved local flexibility plan of a local 
     government, determines--
       (i) that the goals and performance criteria included in the 
     plan under section 807(c)(3) have not been met; and
       (ii) after considering any experiences gained in 
     implementation of the plan, that those goals and criteria are 
     sound;

     the Community Enterprise Board may terminate the 
     effectiveness of the plan.
       (B) In terminating the effectiveness of an approved local 
     flexibility plan under this paragraph, the Community 
     Enterprise Board shall allow a reasonable period of time for 
     appropriate Federal, State, and local agencies and qualified 
     organizations to resume administration of Federal programs 
     that are covered Federal assistance programs included in the 
     plan.
       (e) Final Report; Extension of Plans.--(1) No later than 45 
     days after the end of the effective period of an approved 
     local flexibility plan of a local government, or at any time 
     that the local government determines that the plan has 
     demonstrated its worth, the local government shall submit to 
     the Community Enterprise Board a final report on its 
     implementation of the plan, including a full evaluation of 
     the successes and shortcomings of the plan and the effects of 
     that implementation on individuals who receive benefits under 
     those programs.
       (2) The Community Enterprise Board may extend the effective 
     period of an approved local flexibility plan for such period 
     as may be appropriate, based on the report of a local 
     government under paragraph (1).

     SEC. 810. COMMUNITY ADVISORY COMMITTEES.

       (a) Establishment.--A local government that applies for 
     approval of a local flexibility plan under this title shall 
     establish a community advisory committee in accordance with 
     this section.
       (b) Functions.--A community advisory committee shall advise 
     a local government in the development and implementation of 
     its local flexibility plan, including advice with respect 
     to--
       (1) conducting public hearings;
       (2) representing the interest of low income individuals and 
     families; and
       (3) reviewing and commenting on all community policies, 
     programs, and actions under the plan which affect low income 
     individuals and families, with the purpose of ensuring 
     maximum coordination and responsiveness of the plan in 
     providing benefits under the plan to those individuals and 
     families.
       (c) Membership.--The membership of a community advisory 
     committee shall--
       (1) consist of--
       (A) low income individuals, who shall--
       (i) comprise at least one-third of the membership; and
       (ii) include minority individuals who are participants or 
     who qualify to participate in eligible Federal assistance 
     programs;
       (B) representatives of low income individuals and families;
       (C) persons with leadership experience in the private and 
     voluntary sectors;
       (D) local elected officials;
       (E) representatives of participating qualified 
     organizations; and
       (F) the general public; and
       (2) include individuals and representatives of community 
     organizations who shall help to enhance the leadership role 
     of the local government in developing a local flexibility 
     plan.
       (d) Opportunity for Review and Comment by Committee.--
     Before submitting an application for approval of a final 
     proposed local flexibility plan, a local government shall 
     submit the final proposed plan for review and comment by a 
     community advisory committee established by the local 
     government.
       (e) Committee Review of Reports.--Before submitting annual 
     or final reports on an approved assistance plan, a local 
     government or private nonprofit organization shall submit the 
     report for review and comment to the community advisory 
     committee.

     SEC. 811. TECHNICAL AND OTHER ASSISTANCE.

       (a) Technical Assistance.--(1) The Community Enterprise 
     Board may provide, or direct that the head of a Federal 
     agency provide, technical assistance to a local government or 
     qualified organization in developing information necessary 
     for the design or implementation of a local flexibility plan.
       (2) Assistance may be provided under this subsection if a 
     local government makes a request that includes, in accordance 
     with requirements established by the Community Enterprise 
     Board--
       (A) a description of the local flexibility plan the local 
     government proposes to develop;
       (B) a description of the groups of individuals to whom 
     benefits shall be provided under covered Federal assistance 
     programs included in the plan; and
       (C) such assurances as the Community Enterprise Board may 
     require that--
       (i) in the development of the application to be submitted 
     under this title for approval of the plan, the local 
     government shall provide adequate opportunities to 
     participate to--
       (I) low income individuals and families that shall receive 
     benefits under covered Federal assistance programs included 
     in the plan; and
       (II) governmental agencies that administer those programs; 
     and
       (ii) the plan shall be developed after considering fully--
       (I) needs expressed by those individuals and families;
       (II) community priorities; and
       (III) available governmental resources in the geographic 
     area to which the plan shall apply.
       (b) Details to Board.--At the request of the Chairman of 
     the Community Enterprise Board and with the approval of an 
     agency head who is a member of the Board, agency staff may be 
     detailed to the Community Enterprise Board on a 
     nonreimbursable basis.

     SEC. 812. COMMUNITY ENTERPRISE BOARD.

       (a) Functions.--The Community Enterprise Board shall--
       (1) receive, review, and approve or disapprove local 
     flexibility plans for which approval is sought under this 
     title;
       (2) upon request from an applicant for such approval, 
     direct the head of an agency that administers a covered 
     Federal assistance program under which substantial Federal 
     assistance would be provided under the plan to provide 
     technical assistance to the applicant;
       (3) monitor the progress of development and implementation 
     of local flexibility plans;
       (4) perform such other functions as are assigned to the 
     Community Enterprise Board by this title; and
       (5) issue regulations to implement this title within 180 
     days after the date of its enactment.
       (b) Reports.--No less than 18 months after the date of the 
     enactment of this Act, and annually thereafter, the Community 
     Enterprise Board shall submit a report on the 5 Federal 
     regulations that are most frequently waived by the Community 
     Enterprise Board for local governments with approved local 
     flexibility plans to the President and the Congress. The 
     President shall review the report and determine whether to 
     amend or terminate such Federal regulations.

     SEC. 813. TERMINATION AND REPEAL; REPORT.

       (a) Termination and Repeal.--This title is repealed on the 
     date that is 5 years after the date of the enactment of this 
     Act.
       (b) Report.--No later than 4 years after the date of the 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to the Congress, a report that--
       (1) describes the extent to which local governments have 
     established and implemented approved local flexibility plans;
       (2) evaluates the effectiveness of covered Federal 
     assistance programs included in approved local flexibility 
     plans; and
       (3) includes recommendations with respect to continuing 
     local flexibility.
                                 ______


                     BROWN AMENDMENT NO. 1492-1494

  Mr. BROWN proposed three amendments to the bill S. 4, supra, as 
follows:

                           Amendment No. 1492

       At the appropriate place in the amendment, insert the 
     following section:

     SEC.   . PROHIBITION ON SOLICITATION OF CAMPAIGN 
                   CONTRIBUTIONS BY PERSONS AWARDING CONTRACTS.

       (a) In General.--Chapter 29 of title 18, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 610. Solicitation of political contributions by 
       persons awarding contracts

       ``Any person who awards any contract or grant under any 
     provision of, or any amendment made by, the National 
     Competitiveness Act of 1994 who, during the 5-year period 
     beginning on the date the contract or grant is awarded, 
     knowingly solicits a political contribution (within the 
     meaning of section 7322(3) of title 5, United States Code) 
     from any person who was awarded such contract or grant (or 
     any owner, officer, employee, or agent thereof) shall be 
     imprisoned for 1 year or fined not more than $10,000, or 
     both.''
       (b) Conforming Amendment.--The table of sections for 
     chapter 29 of title 18, United States Code, is amended by 
     adding at the end the following new item:

``610. Solicitation of political contributions by persons awarding 
              contracts.''
                                  ____


                           Amendment No. 1493

       On page 49, strike line 19 to line 7 on page 50, and insert 
     the following:
       ``(B) strike paragraph (1)(B)(ii) and replace with: 
     participation in such joint ventures, if the Secretary, 
     acting through the Director, determines participation to be 
     appropriate and if the business agrees to pay at least half 
     of the total costs of such joint ventures during the 
     participation period, which shall not extend beyond 5 
     years,'';
       ``(C) Strike paragraph (2) and replace with: enter into 
     contracts and cooperative agreements, and subject to the last 
     sentence of this subsection, other transactions with United 
     States businesses and independent research organizations, 
     especially small businesses and independent research 
     organizations, Provided, That the business or independent 
     research organization agrees to pay at least half of the 
     total costs of a project during the project period, which 
     shall not extend beyond 5 years and Provided further, That 
     the emphasis is placed on applying the Institute's research, 
     research techniques, and expertise to those organizations' 
     research programs;''
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                           Amendment No. 1494

       At the end of the committee substitute as modified, insert 
     the following new section:

     SEC.   . SPENDING AUTHORIZATION.

       Notwithstanding any provision of law, including any 
     provision of this Act, the total amount of appropriations 
     authorized by this Act shall not exceed $1,500,000,000.

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