[Congressional Record Volume 140, Number 140 (Friday, September 30, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: September 30, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. FORD:
  S. 2481. A bill to provide for the appointment of one additional 
Federal district judge for the western district of Kentucky, and for 
other purposes; to the Committee on the Judiciary.


                   the kentucky judgeship act of 1994

  Mr. FORD. Mr. President, I rise today to introduce legislation to 
correct a longstanding problem in my State of Kentucky. There is an old 
expression that goes, ``justice delayed is justice denied.'' Well many 
in Kentucky are being denied justice and if it weren't for an extremely 
hardworking and dedicated judiciary, many more would feel the same.
  The situation is nothing short of critical. For several reasons 
Kentucky is in a unique situation. It has what is known as a swing 
judgeship. That means a judge is shared between two districts. In this 
case it is the eastern and western districts. Being largely a rural 
State, the communities that hold court are usually a long way from each 
other and the only means of travel is by car over bad roads that wind 
through the mountains.
  This situation is far more troubling than many of my colleagues from 
other areas of the country may realize. Long trips by judges after 
hours or before court take up a significant amount of time--time a 
judge would normally spend hearing cases. In fact, without the 
difficult travel requirements, I probably wouldn't be introducing this 
legislation today.
  Juries also travel great distances. This results in jurors who would 
rather deliberate late into the evening--sometimes into the early 
morning--in order to avoid travel home and back for additional days of 
deliberations. This poses still further hardships on the judges who are 
then forced to stay up late and then travel to court in the next 
jurisdiction the very next day.
  New gun control legislation has dramatically affected cases in 
Kentucky. Many times a more routine drug bust or other arrest turns 
into a time-consuming and difficult case because of the presence of the 
firearm. The practical effect of this has been a large increase in long 
cases that tie up the judges keeping them from getting to other matters 
on their dockets. Civil cases in many instances have been held to a 
stand still.
  The swing judgeship adds just that much more to the problem. Swing 
judgeships are a thing of the past and as well they should be. Many of 
my colleagues may not be familiar with them, only two other States, 
Oklahoma and Missouri, have swing judgeships. In Kentucky's case, the 
judge must commute between a far eastern part of the State to 
courthouses well into the western half of the State. Unfortunately, the 
closest western courthouse is 3 hours from the base eastern court, with 
the farthest 6 hours away. As you can imagine, this is a major 
hardship. We can help. The legislation that I am introducing today will 
increase each district in Kentucky by one half judgeship. It does this 
by making the swing judgeship into a full-time eastern judgeship and by 
granting the western district a new permanent judgeship.
  I say to my colleagues, Kentucky needs this help. It is supported by 
Kentucky's judiciary and by the facts. I ask for your support and I 
thank you for your time.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2481

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

     SECTION 1. ADDITIONAL FEDERAL DISTRICT JUDGE FOR THE WESTERN 
                   DISTRICT OF KENTUCKY.

       (a) In General.--The President shall appoint, by and with 
     the advice and consent of the Senate, 1 additional district 
     judge for the western district of Kentucky.
       (b) Eastern District.--The district judgeship for the 
     eastern and western districts of Kentucky (as in effect 
     before the date of the enactment of this Act) shall be a 
     district judgeship for the eastern district of Kentucky only, 
     and the incumbent of such judgeship shall hold his office 
     under section 133 of title 28, United States Code, as amended 
     by this section.''
       (c) Tables.--In order that the table contained in section 
     133 of title 28, United States Code, shall reflect the change 
     in the total number of permanent district judgeships 
     authorized under this section, such table is amended by 
     amending the item relating to Kentucky to read as follows:

``Kentucky:                                                             
    ``Eastern.....................................................  5   
    ``Western.....................................................  5''.
                                                                        

                                 ______

      By Mr. WOFFORD:
  S. 2482. A bill to provide for the restoration of Washington Square 
in Philadelphia, PA, and for the inclusion of Washington Square within 
Independence National Historical park, and for other purposes; to the 
Committee on Energy and Natural Resources.


            the restoration of washington square act of 1994

 Mr. WOFFORD. Mr. President, over 218 years ago, our Founding 
Fathers inscribed the principles of liberty, justice, and equality in 
our society at Independence Hall in Philadelphia. And since that time, 
Independence Hall has been a symbol of not only the birth of our 
country, but its survival and prosperity. In 1948, Congress recognized 
the historical significance of the hall with an act ``to preserve for 
the benefit of the American people * * * certain historical structures 
and properties of outstanding significance * * * associated with the 
American Revolution and the founding and growth of the United States.''
  And Americans have benefited from Independence National Historical 
Park. Millions of us, and visitors from around the world, have visited 
the park's buildings and historical sites to see the physical reminders 
of the beginnings of our Nation and to get a glimpse of what it might 
have been like had we been in Philadelphia on July 4, 1776.
  However, the glory of the Revolutionary War is only half the story. 
Thousands of American soldiers and citizens lost their lives during the 
fierce battles. Washington Square, across from 6th Street and the park, 
is a testament to some who died during this first tumultuous period in 
our history. The square is the final resting place of over 2,000 war 
dead and home to the Tomb of the Unknown Soldier of the Revolutionary 
War.
  Although both Independence Park and Washington Square have a rich 
history to tell, they are presented in different ways. Visitors to 
Independence Park stroll down finely groomed walkways--the same 
visitors walk across the street to Washington Square and must traverse 
dangerous and broken flagstone paths. Furthermore, just before this 
year's July 4th celebration at the park, the eternal flame honoring the 
lost soldiers stopped functioning because the aging system designed to 
support it failed.
  Arlington National Cemetery in Washington is home to the Tombs of the 
Unknown Soldier for every major American war, except the Revolutionary 
War. I am very concerned that the brave soldiers buried at Washington 
Square do not receive the same treatment as those at Arlington. For 
these reasons, I am introducing a bill today to provide for the 
restoration of Washington Square and for the inclusion of the historic 
square within the Independence National Historic park.
  I hope this bill, and the bill Representative Foglietta has 
introduced in the House of Representatives, will preserve Washington 
Square and give millions more visitors an opportunity to understand and 
appreciate what these American patriots did for our country. They 
deserve no less.
                                 ______

      By Mrs. HUTCHISON (for herself and Mr. Heflin):
   S. 2483. A bill to amend the Small Business Act, and for other 
purposes; to the Committee on Small Business.


          THE MINORITY SMALL BUSINESS PRESERVATION ACT OF 1994

 Mrs. HUTCHISON. Mr. President, I am pleased to introduce the 
Minority Small Business Preservation Act of 1994, legislation to assist 
minority small business owners who benefit from the Small Business Act, 
section 8(a) program, in developing to their fullest potential.
  One of the many benefits of our great society is the opportunity to 
own and operate a private business. As a former small business owner, I 
know firsthand the challenges and rewards of business ownership and I 
strongly applaud the entrepreneurial spirit.
  The 8(a) program was established to assist small disadvantaged 
businesses in overcoming the effects of discrimination and developing 
the ability to compete in the marketplace. In one important way, the 
program has fallen short in meeting its purpose.
  A number of studies conducted by the Senate, the General Accounting 
Office, the U.S. Commission on Minority Business Development and the 
Small Business Administration have made it clear that one of the most 
compelling problems with the 8(a) program, and the area most in need of 
improvement, is its inordinately high business failure rate among 
graduated 8(a) program firms. If businesses fail after leaving the 
program, the program has failed to accomplish its mission. These 
studies suggest that different kinds of businesses need varying lengths 
of participation in the 8(a) program in order to maintain viability. 
The program currently has a maximum participation of 9 years, without 
regard to the development or capital requirements of a particular type 
of business or industry. In other words, it is a one-size-fits-all 
limit that does not work.
  One of the purposes of the 8(a) program is to help ensure that 
graduate firms continue as viable minority businesses, functioning and 
contributing as constructive parts of a diversified U.S. economy.
  One way to accomplish this goal is to make the program fit the 
participants. Since the Small Business Administration uses a system 
based on the Standard Industrial Classification [SIC] codes to 
determine if a business is small, it stands to reason that the SIC 
codes should not be used to determine the length of program 
participation.
  Therefore, it makes sense to suspend graduations from the program 
until a more suitable participation limit can be identified and applied 
to the different kinds of enterprises enrolled in the program.
  In its 1992 final report, the U.S. Commission on Minority Business 
Development sums it up very well:

       The Commission finds it questionable to conclude that all 
     firms, in all industries, under all circumstances need 
     exactly nine years of nurturing to counteract the perils of 
     the marketplace and the effects of ethnic and racial 
     discrimination. There is presently no method to determine 
     length of participation in the 8(a) Program that is based on 
     the developmental needs of individual firms.

  It is my intent to secure congressional support for a temporary 
suspension of graduation from the 8(a) program so that highly technical 
and capital-intensive businesses are not forced out, while reasonable 
participation periods are being established to reflect specific 
objective business needs.
  Minority business development programs are not social programs; they 
are investments in America's economic system and in its future. This 
bill is a step toward protecting that investment and I urge my 
colleagues to cosponsor and support it.
 Mr. HEFLIN. Mr. President, the Small Business Administration's 
8(a) program has a maximum participation period of 9 years, regardless 
of whether a particular type of business may require extensive startup 
time or is capital intensive. If the objective of the program is to 
assist a minority-owned company to develop to the point where it has 
the skills and infrastructure necessary to thrive in the mainstream 
economy, then it is essential that we consider suspending graduations 
from the program while participation periods for capital intensive 
industries are redetermined. Too many capital intensive 8(a) companies 
are graduating after 9 years into oblivion.
  In 1988, Congress enacted the Business Opportunity Development Act 
(P.L. 100-656) which increased the 8(a) participation period from 7 to 
9 years. Congress also established the U.S. Commission on Minority 
Business Development and directed it to:

       * * *review and assess * * * the appropriate maximum term 
     for program participation; such evaluation shall take into 
     account relevant industry data, the development cycles of 
     particular industries, and the financial, managerial and 
     technological needs of such concerns to become competitive; a 
     study shall be conducted relating to the fixed program term 
     allowed under statute and the advisability of adopting 
     alternative terms based on Standard Industrial Codes or other 
     economic indices. Reform Act, Section 505(b).

  In 1992, the Commission on Minority Business Development, established 
under Public Law 100-656, determined that businesses in capital 
intensive industries need up to 14 years, not 9 to properly develop 
under the 8(a) program. The Commission spoke emphatically and at length 
on this issue.

       Based on all the evidence we have received, the Commission 
     recommends that program participation terms be approved on 
     the basis of four-digit SIC Codes. We believe that such terms 
     can vary from as low as seven years to a maximum of fourteen 
     years, depending upon the industry in which the firm is 
     engaged. Preliminarily, the Commission views manufacturing 
     firms, and concerns engaged in high-tech or capital intensive 
     industries, as generally requiring more time to develop 
     because of the economic concentration in such areas and other 
     significant market entrance barriers.
       * * *For example, it should take no longer than seven years 
     to determine whether a specialty contractor * * * has the 
     potential to succeed, while a developer/heavy construction 
     general contractor may take nearly twice as long.
       The Commission realizes that the recommendation presents an 
     extremely difficult challenge. However, we have concluded 
     that such an effort is essential if the program is to be true 
     to its stated purpose of economic development. In no event, 
     however, do we condone the practice of setting a fixed term 
     based on an exchange of political volleys or the search for 
     simplistic administrative solutions.

  Therefore, it is my belief that Congress should implement the 
Commission's recommendations by enacting legislation directing the SBA 
to issue regulations that would establish participation periods based 
on an industry's specific requirements. Congress should also 
temporarily suspend graduation from the 8(a) program pending the 
establishment of these specific participation periods for individual 
industries. The suspension is critical for capital intensive firms that 
are now in the 8(a) program but need the additional time to build their 
capital base. I urge my colleagues to join with me in passing S. 2483 
before the end of this legislative session.
                                 ______

      By Mr. ROBB:
  S. 2484. A bill to authorize the award of the Purple Heart to persons 
who were prisoners of war on or before April 25, 1962; to the Committee 
on Armed Services.


                      the purple heart act of 1994

 Mr. ROBB. Mr. President, I introduce legislation which will 
correct an inequity that unfairly denies due recognition to some of 
America's worthiest veterans.
  Specifically, this bill would entitle prisoners of war from World War 
I, World War II, and Korea to receive the Purple Heart Medal for wounds 
which were sustained while being captured or while in captivity. Under 
current law these veterans are denied this award despite the fact that 
veterans of subsequent wars and engagements are entitled to the medal.
  I'd like to share a story which will help to dramatize this 
oversight.
  Fifty years ago this past July, on a warm summer afternoon 25,000 
feet above a rural village near Budapest, Hungary, a 20-year-old Army 
Air Corps gunner by the name of John Vecchiola, on his 44th mission in 
the ball turret of a B-17, endured one of the most terrifying 
experiences any of us could imagine.
  While involved in a bombing run on an enemy airbase, his B-17 
sustained a direct hit by anti-aircraft guns which peppered the plane 
and crew with fragments of bomb and sheet metal. Within seconds, the 
entire tail section had separated from the plane and sent the aircraft 
and surviving crewmembers plummeting to Earth.
  Miraculously, five members of the 10-man crew--including a wounded 
John Vecchiola--survived the ordeal, parachuting into the newly plowed 
cornfields along the Danube River.
  Hobbling to safety, John managed to elude the enemy search party 
which was combing the area for the fallen Americans.
  Using this time to dress his wounds and gather his thoughts, John had 
hopes of making his way to a Budapest hotel known as a safehouse for 
the Hungarian underground. From there he would be smuggled out of the 
country and back to Allied forces; unfortunately, John was captured 
before he could find that underground contact.
  It was as much rumor, as it was commonly understood among Allied 
forces, that those prisoners who were physically unable to make the 
long march back to local prison camps, were shot on site. While reports 
varied widely depending on the source, John Vecchiola was taking no 
chances. He had hopes of seeing his family and fellow soldiers again. 
Perhaps, he thought, he'd be healthy enough to escape within a few 
weeks. Rather than risk being shot to death on the spot, John sought no 
medical attention from his captors, and did his best to ignore his 
pain.
  He and other allied prisoners were marched several miles and then 
placed upon railcars and transferred to permanent prison camps in 
Poland. Once in prison camp, John was assisted by an allied physician 
who helped him clean and dress his wound. Within several months, John's 
wounds were well on the way to being fully healed.
  Some 337 days later, on April 15, 1945, while his captors were 
marching the prisoners away from an advancing allied line, a starved 
and feeble John Vecciola--at the time weighing only 92 pounds--escaped 
from the column and was subsequently rescued by British troops with the 
11th Armored Division.
  In recognition of the pain, suffering, and hardships like those 
suffered by John Vecciola, President John F. Kennedy, by Executive 
order on April 25, 1962, authorized the award of the Purple Heart to 
POW's for wounds and injuries received during capture or while in 
captivity.
  However, despite years of urging by various veterans organizations 
and Members of Congress, the Department of Defense has declined to 
apply the 1962 criteria to prisoners of war held prior to the date the 
Executive order was signed.
  Therefore, despite the wounds he suffered, the starvation and 
maltreatment he endured, and despite the fact that veterans from 
Vietnam, Grenada, Beirut, Kuwait, and Somalia would all have been 
entitled to a Purple Heart Medal for similar action, John Vecciola is 
not. This is wrong.
  Mr. President, as a Vietnam veteran who has had the privilege of 
leading marines in combat, and as a member of the Senate's Select 
Committee on POW/MIA Affairs, I am acutely aware of the hardships 
endured by service personnel who have been captured by hostile military 
forces. All of these servicemen have suffered mental and physical 
abuse, and many were tortured, beaten, and starved while in 
confinement.
  While we might debate how best to recognize their sacrifice and 
hardship, one thing is abundantly clear: We should not differentiate 
between prisoners of war based solely on the date of the war in which 
they were captured.
  Mr. President, our prisoners of war from World War I, World War II, 
and Korea suffered various wounds and innumerable atrocities at the 
hands of their captors. Many continue to suffer from physical 
difficulties associated with their capture and confinement. The Purple 
Heart Medal would serve to put their service and sacrifice on par with 
the veterans of other wars, and will remind Americans of their 
sacrifices. It seems a fitting and overdue recognition.
  Mr. President, I ask unanimous consent that the text of the bill and 
the supporting letters and resolutions of the Military Order of the 
Purple Heart, the Disabled American Veterans, the Jewish War Veterans 
of the United States, AmVets, and the Vietnam Veterans of America be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2484

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

     SECTION 1. AUTHORITY TO AWARD PURPLE HEART.

       (a) Authority To Make Award.--(1) Subject to paragraph (2), 
     the President may award the Purple Heart to a person 
     described in subsection (b) who was taken prisoner and held 
     captive before April 25, 1962.
       (2)(A) Except as provided in subparagraph (B), an award of 
     the Purple Heart under paragraph (1) may be made only in 
     accordance with the standards in effect on the date of the 
     enactment of this Act for the award of the Purple Heart to a 
     person described in subsection (b) who has been taken 
     prisoner and held captive on or after April 25, 1962.
       (B) An award of a Purple Heart may not be made under 
     paragraph (1) to any person convicted by a court of competent 
     jurisdiction of rendering assistance to any enemy of the 
     United States
       (b) Eligible Persons.--(1) A person referred to in 
     subsection (a) is an individual--
       (A) who is a member of the Armed Forces of the United 
     States; and
       (B) who is wounded while being taken prisoner or held 
     captive--
       (i) in an action against an enemy of the United States:
       (ii) in military operations involving conflict with an 
     opposing foreign force;
       (iii) during service with friendly forces engaged in an 
     armed conflict against an opposing armed force in which the 
     United States is not a belligerent party;
       (iv) as the result of an action of any such enemy or 
     opposing armed force; or
       (v) as the result of an act of any foreign hostile force.
       (2) Any wound of a person referred to in paragraph (1)(A) 
     that is determined by the Secretary of Veterans Affairs to be 
     a service-connected injury arising from being taken prisoner 
     or held captive under a circumstance referred to in paragraph 
     (1)(B) shall also meet the requirement set forth in paragraph 
     (1)(B).
       (c) Relationship to Other Authority To Award the Purple 
     Heart.--The authority under this Act is in addition to any 
     other authority of the President to award the Purple Heart.
                                  ____


                   Military Order of the Purple Heart


                         resolution no. 94-038

       Committee: Legislative Service.
       Committee action: Approve: By Resolutions Committee, August 
     10, 1994.

     Re: To authorize the award of the Purple Heart to persons who 
     were prisoners of war on or before April 25, 1962.

       Whereas: Current law provides for the award of the Purple 
     Heart Medal to POW's under certain circumstances, who were 
     captured on or after April 25, 1962; and
       Whereas: Senator Robb of Virginia has proposed a bill to 
     award the Purple Heart Medal to POWs captured prior to April 
     25, 1962; and
       Whereas: Presidents Kennedy and Reagan have issued 
     Executive Orders allowing for the award of the Purple Heart 
     Medal to civilians wounded under certain circumstances to 
     include terrorists attacks; now, therefore be it
       Resolved: That the Military Order of the Purple Heart 
     support legislation proposed by Senator Robb, which is 
     attached to this resolution; and be it further
       Resolved: That the Military Order of the Purple Heart of 
     the United States of America seek legislation, to negate the 
     award of the Purple Heart Medal to any civilian under any 
     circumstances; and finally be it
       Resolved: That copies of this resolution be forwarded to 
     the 62nd National Convention of the Military Order of the 
     Purple Heart of the United States of America, for adoption by 
     the delegates in assembly at Des Moines, Iowa, August 8th 
     thru August 13th, 1994.
       --Submitted by Edmund E. Janiszewski, National Legislative 
     Director, July 14, 1994.
       Convention action: Approved by Convention Delegates August 
     11, 1994.
                                  ____

         Disabled American Veterans National Service and 
           Legislative Headquarters,
                               Washington, DC., September 6, 1994.
     Hon. Charles S. Robb,
     Richmond, VA.
       Dear Senator Robb: Thank you for providing us with a copy 
     of your draft bill to authorize the award of the Purple Heart 
     to persons who were prisoners of war on or before April 25, 
     1962.
       This measure has the support of the Disabled American 
     Veterans. The delegates to our 1994 annual National 
     Convention adopted a resolution (copy enclosed) supporting 
     legislation for this purpose, and your draft bill is 
     consistent with that resolution.
       We appreciate the changes you made to address our concerns, 
     and we appreciate your efforts on behalf of this deserving 
     group of veterans.
           Sincerely,
                                               Richard F. Schultz,
                                    National Legislative Director.
                                  ____


           National Interim Legislative Committee Resolution


authorize the purple heart medal to former pow's of world war I, world 
   war ii, and the korean war for injuries received during captivity

       Whereas, Title 32, U.S. Code, effective April 25, 1962, 
     authorizes the award of the Purple Heart to prisoners of war 
     for wounds or injuries sustained as a result of beatings and 
     other forms of physical torture while in captivity; and
       Whereas, prior to April 25, 1962, the Purple Heart Medal 
     for former prisoners of war was only awarded to those who 
     were wounded or injured in action prior to or at the time of 
     capture or in an attempted or successful escape; and
       Whereas, former prisoners of war of World War I, World War 
     II and the Korean War were physically abused, beaten, 
     tortured and placed on forced work details, without concern 
     for their health by enemy guards and hostile civilians; and
       Whereas, many of these servicemen, while in captivity, 
     suffered from physical abuse, malnutrition and exhaustion, as 
     well as received wounds and injuries as a result of direct 
     and indirect action at the hands of their captors; now
       Therefore, be it resolved that the Disabled American 
     Veterans in National Convention assembled in Chicago, 
     Illinois, August 20-25, 1994, supports the enactment of 
     legislation to provide the same consideration to the award of 
     the Purple Heart Medal to former prisoners of war held 
     captive prior to April 25, 1962, as afforded those captured 
     after that date.
                                  ____

                                        Jewish War Veterans of the


                               United States of America, Inc.,

                                  Washington, DC, August 31, 1994.
     Hon. Charles S. Robb,
     U.S. Senate,
     Washington, DC.
       Dear Senator Robb: I am happy to inform you that JWV 
     supports the bill you recently introduced that authorizes 
     ``the award of the Purple Heart to wounded persons who were 
     prisoners of war on or before April 25, 1962.''
       Given the many physical and psychological injuries that 
     result from being a prisoner of war, the Jewish War Veterans 
     of the United States of America (JWV) feels that wounded US 
     servicemen/women held captive during wartime rightfully 
     deserve to be awarded the Purple Heart.
           I remain,

                                               David H. Hymes,

                                               National Commander.
                                  ____



                                                       AMVETS,

                                      Lanham, MD, August 25, 1994.
     Hon. Charles S. Robb,
     U.S. Senate,
     Washington, DC.
       Dear Senator Robb: I am writing to express AMVETS' support 
     for your bill to award the Purple Heart to certain military 
     personnel who were taken prisoner before April 25, 1962.
       We are pleased that your bill will recognize the sacrifices 
     made by those who suffered at the hands of the enemy, 
     whatever the period of conflict.
       I would also like to express AMVETS' opposition to awarding 
     the Purple Heart to civilians who suffer injuries because of 
     terrorist action. While we in no way minimize anyone's 
     suffering, there is a fundamental difference between the 
     responsibilities incumbent upon each service member and their 
     civilian counterparts. That alone justifies the limitation on 
     the eligibility for the award.
       Thank you again for working for America's veterans, and we 
     look forward to working with you in the future.
           Sincerely,
                                                 Donald M. Hearon,

                                       National Commander.

                                 ______

      By Mr. KOHL (for himself and Mr. Chafee):
  S. 2486. A bill to amend the Internal Revenue Code of 1986 to extend 
the deduction for health insurance costs of self-employed individuals, 
to increase the taxes on tobacco products, and for other purposes; to 
the Committee on Finance.


  increased health insurance through the increase of taxes on tobacco

 Mr. KOHL. Mr. President, today I am introducing a bill that is 
sorely needed by the many hard-working Americans who are self-employed, 
many of whom are farmers. This bill, which I have developed with my 
good friend John Chafee, extends the 25-percent Federal tax deduction 
for health insurance that expired last year. Since this deduction 
cannot be extended without an offset, this bill pays for the deduction 
with a five-cent increase in the Federal tax on tobacco products.
  We have all been working hard to enact health care reform this year, 
and until this week we held out hope that significant reforms could be 
enacted this year. We now know that partisan gridlock has stymied the 
possibility of passing health reform. We therefore need to take the 
responsible steps necessary to ensure that those who have insurance are 
not penalized by Congress' failure to act.
  Do we want farmers and self-employed people to pay the price for the 
death of health reform? Of course not. An estimated 12 million 
Americans are self-employed for part or all of their livelihood, and 
almost 3 million have no health insurance. Many have a hard enough time 
affording their coverage. If we don't do the right thing and extend 
this provision, we will have added to the number of Americans without 
health insurance, rather than reduced it. Not a good record for a 
Congress that vowed to bring that number down.
  For these reasons, Senator Chafee and I have developed this 
legislation to extend the existing 25 percent deductibility of health 
insurance for the self-employed for 2 years. While my ultimate goal is 
raising the deduction to 100 percent, we must first act to maintain the 
deduction people can use today. When we address comprehensive health 
care reform, self-employed small business people and farmers should get 
the same deduction that major corporations receive.
  As for the offset we have included in this bill, we are reluctant to 
make this slight increase in tobacco taxes, but believe that extending 
this important deduction upon which so many Americans rely is important 
enough that we can make this change. If we are to extend this 
deduction, we must pay for it, and this is the most responsible way to 
do so.
  Mr. President, I ask unanimous consent that the full text of the 
measure be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2486

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

     SECTION 1. 2-YEAR EXTENSION OF DEDUCTION OF HEALTH INSURANCE 
                   COSTS OF SELF-EMPLOYED INDIVIDUALS.

       (2) Extension.--Section 162(l)(6) of the Internal Revenue 
     Code of 1986 is amended by striking ``1993'' and inserting 
     ``1995''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     1993.

     SEC. 2. INCREASE IN TAXES ON TOBACCO PRODUCTS.

       (a) In General.--
       (1) Cigars.--Subsection (a) of section 5701 of the Internal 
     Revenue Code of 1986 (relating to rate of tax on cigars) is 
     amended--
       (A) by striking ``$1.125 cents per thousand (93.75 cents 
     per thousand on cigars removed during 1991 and 1992)'' in 
     paragraph (1) and inserting ``$1.359 per thousand''; and
       (B) by striking paragraph (2) and inserting the following 
     new paragraph:
       ``(2) Large cigars.--On cigars weighing more than 3 pounds 
     per thousand, a tax equal to 15.41 percent of the price for 
     which sold but not more than $36.25 per thousand.''
       (2) Cigarettes.--Subsection (b) of section 5701 of such 
     Code (relating to rate of tax on cigarettes) is amended--
       (A) by striking ``$12 per thousand ($10 per thousand on 
     cigarettes removed during 1991 and 1992)'' in paragraph (1) 
     and inserting ``$14.50 per thousand''; and
       (B) by striking ``$25.20 per thousand ($21 per thousand on 
     cigarettes removed during 1991 and 1992)'' in paragraph (2) 
     and inserting ``$30.45 per thousand''.
       (3) Cigarette papers.--Subsection (c) of section 5701 of 
     such Code (relating to rate of tax on cigarette papers) is 
     amended by striking ``0.75 cent (0.625 cent on cigarette 
     papers removed during 1991 or 1992)'' and inserting ``0.91 
     cent''.
       (4) Cigarette tubes.--Subseciton (d) of section 5701 of 
     such Code (relating to rate of tax on cigarette tubes) is 
     amended by striking ``1.5 cents (1.25 cents on cigarette 
     tubes removed during 1991 or 1992)'' and inserting ``1.81 
     cents''.
       (5) Snuff.--Paragraph (1) of section 5701(e) of such Code 
     (relating to rate of tax on smokeless tobacco) is amended by 
     striking ``36 cents (30 cents on snuff removed during 1991 or 
     1992)'' and inserting ``43.50 cents''.
       (6) Chewing tobacco.--Paragraph (2) of section 5701(e) of 
     such Code is amended by striking ``12 cents (10 cents on 
     chewing tobacco removed during 1991 or 1992)'' and inserting 
     ``14.5 cents''.
       (7) Pipe tobacco.--Subsection (f) of section 5701 of such 
     Code (relating to rate of tax on pipe tobacco) is amended by 
     striking ``67.5 cents (56.25 cents on chewing tobacco removed 
     during 1991 or 1992)'' and inserting ``81.6 cents''.
       (b) Floor Stocks.--
       (1) Imposition of tax.--On cigars, cigarettes, cigarette 
     paper, cigarette tubes, snuff, chewing tobacco, and pipe 
     tobacco manufactured in or imported into the United States 
     which is removed before January 1, 1995, and held on such 
     date for sale by any person, there shall be imposed the 
     following taxes:
       (A) Small cigars.--On cigars, weighing not more than 
     3pounds per thousand, 23.4 cents per thousand.
       (B) Large cigars.--On cigars, weighing more than 3 pounds 
     per thousand, a tax equal to 2.66 percent of the price for 
     which sold, but not more than $6.25 per thousand.
       (C) Small cigarettes.--On cigarettes, weighing not more 
     than 3 pounds per thousand, $2.50 per thousand.
       (D) Large cigarettes.--On cigarettes, weighing more than 3 
     pounds per thousand, $5.25 per thousand; except that, if more 
     than 6\1/2\ inches in length, they shall be taxable at the 
     rate prescribed for cigarettes weighing not more than 3 
     pounds per thousand, counting each 2\3/4\ inches, or 
     fraction thereof, of the length of each as one cigarette.
       (E) Cigarette papers.--On cigarette papers, 0.16 cent for 
     each 50 papers or fractional part thereof; except that, if 
     cigarette papers measure more than 6\1/2\ inches in length, 
     they shall be taxable at the rate prescribed, counting each 
     2\3/4\ inches, or fraction thereof, of the length of each as 
     one cigarette paper.
       (F) Cigarette tubes.--On cigarette tubes, 0.31 cent for 
     each 50 tubes or fractional part thereof; except that, if 
     cigarette tubes measure more than 6\1/2\ inches in length, 
     they shall be taxable at the rate prescribed, counting each 
     2\3/4\ inches, or fraction thereof, of the length of each as 
     one cigarette tube.
       (G) Snuff.--On snuff, 7.5 cents per pound and a 
     proportionate tax at the like rate on all fractional parts of 
     a pound.
       (H) Chewing tobacco.--On chewing tobacco, 2.5 cents per 
     pound and a proportionate tax at the like rate on all 
     fractional parts of a pound.
       (I) Pipe tobacco.--On pipe tobacco, 14.1 cents per pound 
     and a proportionate tax at the like rate on all fractional 
     parts of a pound.
       (2) Liability for tax and method of payment.--
       (A) Liability for tax.--A person holding cigars, 
     cigarettes, cigarette paper, cigarette tubes, snuff, chewing 
     tobacco, and pipe tobacco on January 1, 1995, to which any 
     tax imposed by paragraph (1) applies shall be liable for such 
     tax.
       (B) Method of payment.--The tax imposed by paragraph (1) 
     shall be treated as a tax imposed under section 5701 of the 
     Internal Revenue Code of 1986 and shall be due and payable on 
     February 15, 1995, in the same manner as the tax imposed 
     under such section is payable with respect to cigars, 
     cigarettes, cigarette paper, cigarette tubes, snuff, chewing 
     tobacco, and pipe tobacco removed on January 1, 1995.
       (3) Cigars, cigarettes, cigarette paper, cigarette tubes, 
     snuff, chewing tobacco, and pipe tobacco.--For purposes of 
     this subsection, the terms ``cigar'', ``cigarette'', 
     ``cigarette paper'', ``cigarette tubes'', ``snuff'', 
     ``chewing tobacco'', and ``pipe tobacco'' shall have the 
     meaning given to such terms by subsections (a), (b), (e), and 
     (g), paragraphs (2) and (3) of subsection (n), and subsection 
     (o) of section 5702 of the Internal Revenue Code of 1986, 
     respectively.
       (4) Exception for retail stocks.--The taxes imposed by 
     paragraph (1) shall not apply to cigars, cigarettes, 
     cigarette paper, cigarette tubes, snuff, chewing tobacco, and 
     pipe tobacco in retail stocks held on January 1, 1995, at the 
     place where intended to be sold at retail.
       (5) Foreign trade zones.--Notwithstanding the Act of June 
     18, 1934 (19 U.S.C. 81a et seq.) or any other provision of 
     law--
       (A) cigars, cigarettes, cigarette paper, cigarette tubes, 
     snuff, chewing tobacco, and pipe tobacco--
       (i) on which taxes imposed by Federal law are determined, 
     or customs duties are liquidated, by a customs officer 
     pursuant to a request made under the first proviso of section 
     3(a) of the Act of June 18, 1934 (19 U.S.C. 81c(a)) before 
     January 1, 1995, and
       (ii) which are entered into the customs territory of the 
     United States on or after January 1, 1995, from a foreign 
     trade zone, and
       (B) cigars, cigarettes, cigarette paper, cigarette tubes, 
     snuff, chewing tobacco, and pipe tobacco which--
       (i) are placed under the supervision of a customs officer 
     pursuant to the provisions of the second proviso of section 
     3(a) of the Act of June 18, 1934 (19 U.S.C. 81c(a)) before 
     January 1, 1995, and
       (ii) are entered into the customs territory of the United 
     States on or after January 1, 1995, from a foreign trade 
     zone,

     shall be subject to the tax imposed by paragraph (1) and such 
     cigars, cigarettes, cigarette paper, cigarette tubes, snuff, 
     chewing tobacco, and pipe tobacco shall, for purposes of 
     paragraph (1), be treated as being held on January 1, 1995, 
     for sale.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to cigars, cigarettes, cigarette 
     paper, cigarette tubes, snuff, chewing tobacco, and pipe 
     tobacco removed after December 31, 1994.

 Mr. CHAFEE. Mr. President, I am pleased to join my colleague 
from Wisconsin today to introduce legislation extending, for 2 years, 
the 25-percent deduction for health insurance of self-employed 
individuals. While time is getting late, it is our hope that this 
legislation can be enacted before the end of the session thereby 
preserving this provision which is extremely important to the thousands 
of small business men and women in our country.
  This proposal has overwhelming backing in Congress. It was allowed to 
expire last year only because it was widely anticipated that it would 
be included as part of this year's health care reform. Indeed, the 
health care reform proposals put forth by the President, the majority 
leader, the Republican leader, the Finance Committee, and the 
mainstream coalition, not only extended this deduction but increased it 
as well.
  Mr. President, one of the goals of reform was to bring the spiraling 
cost of health care insurance under control. America's small businesses 
face some of the highest health insurance costs in the Nation, yet 
unlike large corporations, they receive little assistance from the 
Federal Government.
  Large businesses are able to deduct the full cost of health care 
provided to their workers. In addition, employees receive a substantial 
tax break, because this benefit is not included in their taxable 
income. Yet, unless we enact this bill before the end of this session, 
small business men and women will receive no such benefit.
  This bill is a small step towards addressing this inequity. It 
continues the 25 percent deduction for the cost of health insurance for 
self-employed individuals for 2 years. Like the tax treatment of large 
businesses and their employees, it maintains the status quo with 
respect to the tax treatment of health care costs.
  Mr. President, the country's small business men and women cannot wait 
until next year. By failing to act now, we are imposing a substantial 
tax increase on them. If left to next year, it is unlikely that we will 
be able to act before the due date for filing 1994 returns. Action now 
is essential, and I urge my colleagues to support this 
legislation.
                                 ______

      By Mr. CAMPBELL (for himself, Mr. Inouye, and Mr. McCain) (by 
        request):
  S. 2487. A bill to improve the economic conditions and supply of 
housing in Native American communities by creating the Native American 
Financial Services Organization, and for other purposes; to the 
Committee on Indian Affairs.


    THE NATIVE AMERICAN FINANCIAL SERVICES ORGANIZATION ACT OF 1994

 Mr. CAMPBELL. Mr. President, today I am introducing the Native 
American Financial Services Organization Act of 1994 [NAFSO]. The 
distinguished Chairman and Vice Chairman of the Indian Affairs 
Committee, Senators Inouye and McCain, join me as original cosponsors 
of the legislation.
  While I know that it may be too late to enact this legislation this 
Congress, it is my hope that we can begin discussion on the measure 
with the hope that the Congress can act on it early next year.
  Mr. President, there is a continued need for assistance to improve 
Native American, Alaska Native, and Native Hawaiian housing throughout 
the country. The Bureau of Indian Affairs [BIA] estimated in 1993 that 
as many as 90,000 Native American families were in need of improved 
housing. Nearly 50,000 families need new homes, while 40,000 need their 
homes substantially renovated.
  The problems that exist in Indian housing stem from several factors.
  First, there is currently little, if any, conventional lending 
available to Native people seeking to purchase a home. A system for 
providing mortgages or loans for development is virtually non-existent 
in Indian country.
  Second, many housing authorities lack the expertise to manage, 
coordinate and maintain a successful program. Currently, there is 
little guidance to assist housing authorities and Native American 
governing bodies through the complicated process in bringing together 
the relevant parties to coordinate the many funding programs throughout 
the government.
  Finally, tribal governments have had to rely on Federal Government 
grant and loan programs to build streets and roads, to provide water 
and sewer and other utilities, and to provide basic service facilities. 
There is no income, commercial, or real estate tax base from which the 
tribal governments obtain revenue.
  Mr. President, based upon the findings of the Commission on American 
Indian, Alaska Native, and Native Hawaiian Housing, the Native American 
Financial Services Organization Act of 1994 is an attempt to address 
the need for private financing of home ownership and economic 
development on and near reservation lands.
  Under the legislation, the Native American Financial Services 
Organization would establish a limited government-chartered 
corporation. A Federal grant would capitalize the federally-chartered 
organization, which would cease to exist upon a designated date. At 
this point, the charter would become a private corporation.

  More specifically, the legislation is designed to:
  Help serve the mortgage and other lending needs of Native Americans 
by providing technical assistance to establish and organize Native 
American community lending institutions that would be called Native 
American Financial Institutions [NAFIs]. These lending institutions 
could be any type of financial institution, including community banks, 
credit unions, and savings banks, and therefore could provide a wide 
range of financial services;
  Develop and provide financial expertise and technical assistance to 
the Native American Financial Institutions, including methods of 
underwriting, securing, servicing, packaging, and selling mortgage and 
small commercial and consumer loans;
  Develop and provide specialized technical assistance on how to 
overcome barriers to primary mortgage lending on Native American lands, 
including issues related to trust lands, discrimination, and 
inapplicability of standard underwriting criteria;
  Assist in providing mortgage underwriting assistance (but not 
originate loans) under contract to the lending institutions; and
  Work with Fannie Mae and Freddie Mac, and other participants in the 
secondary market for residential mortgages in identifying and 
eliminating barriers to purchase Native American loans.
  In short, the Native American Financial Service Organization would 
help provide financial independence to the Native American community 
and would begin to address the housing deficiencies by working to 
attract private capital into the Indian housing market.
  Mr. President, I ask that the text of the bill, along with a letter 
from Secretary Cisneros supporting the legislation, be printed in the 
Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2487

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

     SECTION 1. SHORT TITLE.

       (a) Short Title.--This Act may be cited as the ``Native 
     American Financial Services Organization Act of 1994''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title.

               TITLE I--STATEMENT OF POLICY; DEFINITIONS

Sec. 101. Policy.
Sec. 102. Statement of purposes.
Sec. 103. Definitions.

       TITLE II--NATIVE AMERICAN FINANCIAL SERVICES ORGANIZATION

Sec. 201. Establishment of the organization.
Sec. 202. Authorized assistance and service functions.
Sec. 203. Native american lending services grant.
Sec. 204. Audits.
Sec. 205. Annual housing and economic development reports.
Sec. 206. Advisory council.

               TITLE III--CAPITALIZATION OF ORGANIZATION

Sec. 301. Capitalization of the organization.
Sec. 302. Obligations and securities of the organization.
Sec. 303. Limit on total assets and liabilities.

             TITLE IV--REGULATION, EXAMINATION, AND REPORTS

Sec. 401. Regulation, examination, and reports--ofheo.
Sec. 402. Regulation of the secretary of hud.

                 TITLE V--FORMATION OF NEW CORPORATION

Sec. 501. Formation of new corporation.
Sec. 502. Adoption and approval of merger plan.
Sec. 503. Consummation of merger.
Sec. 504. Transition.
Sec. 505. Effect of merger.

               TITLE VI--AUTHORIZATIONS OF APPROPRIATIONS

Sec. 601. Authorization of appropriations for native american financial 
              institutions.
Sec. 602. Authorization of appropriations for organization.
               TITLE I--STATEMENT OF POLICY; DEFINITIONS

     SEC. 101. POLICY.

       Based upon the findings and recommendations by the 
     Commission on American Indian, Alaska Native and Native 
     Hawaiian Housing established by Public Law 101-235, the 
     Congress has determined that housing shortages and deplorable 
     living conditions are at crisis proportions in Native 
     American communities throughout the United States. The lack 
     of private capital to finance housing and economic 
     development for Native Americans and Native American 
     communities seriously exacerbates this problem. To begin to 
     address this crisis, it is the policy of the United States to 
     improve the economic conditions and supply of housing in 
     Native American communities throughout the United States by 
     creating the Native American Financial Services Organization. 
     It is anticipated that when the Native American Financial 
     Services Organization is no longer a Congressionally 
     chartered body corporate, it will function as a tribal, state 
     or District of Columbia corporation.

     SEC. 102. STATEMENT OF PURPOSES.

       The purposes of this Act are--
       (1) to help serve the mortgage and other lending needs of 
     Native Americans by assisting in the establishment and 
     organization of Native American Financial Institutions, 
     developing and providing financial expertise and technical 
     assistance to Native American Financial Institutions, 
     including assistance on how to overcome barriers to lending 
     on Native American lands, and the past and present impact of 
     discrimination;
       (2) to promote access to mortgage credit in Native American 
     communities in the Nation by increasing the liquidity of 
     financing for housing and improving the distribution of 
     investment capital available for such financing, primarily 
     through Native American Financial Institutions;
       (3) to promote the infusion of public capital into Native 
     American communities throughout the United States and to 
     direct sources of public and private capital into housing and 
     economic development for Native American individuals and 
     families, primarily through Native American Financial 
     Institutions; and
       (4) to provide ongoing assistance to the secondary market 
     for residential mortgages and economic development loans for 
     Native American individuals and families, Native American 
     Financial Institutions, and other borrowers by increasing the 
     liquidity of such investments and improving the distribution 
     of investment capital available for such financing.

     SEC. 103. DEFINITIONS.

       For purposes of this Act, the following definitions shall 
     apply:
       (1) The term ``Alaska Native'' means any person recognized 
     as an Alaska Native by the Federal Government.
       (2) The term ``Board of Directors'' means the board of 
     directors of the Organization.
       (3) The term ``Chairperson'' means the chairperson of the 
     Board of Directors.
       (4) The term ``designated merger date'' means the specific 
     calendar date and time of day designated by the Board of 
     Directors under section 502(b).
       (5) The term ``Fund'' means the Community Development 
     Financial Institutions Fund established by the Community 
     Development Banking and Financial Institutions Act of 1994.
       (6) The term ``Indian Tribe'' means any Indian tribe, band, 
     nation, or other organized group or community, including any 
     Alaska Native village or regional or village corporation as 
     defined in or established pursuant to the Alaska Native 
     Claims Settlement Act which is recognized as eligible for the 
     special programs and services provided by the United States 
     to Indians because of their status as Indians.
       (7) The term ``merger plan'' means the plan of merger 
     adopted by the Board of Directors according the section 
     502(a).
       (8) The term ``Native American'' means any member of an 
     Indian Tribe.(i) The term ``Native American Financial 
     Institution'' means a person (other than an individual) 
     that--
       (A) qualifies as a ``community development financial 
     institution'' under the Community Development Banking and 
     Financial Institutions Act of 1994;
       (B) satisfies the requirements established by the Community 
     Development Banking and Financial Institutions Act of 1994 
     and the Fund for applicants for assistance from the Fund;
       (C) demonstrates a special interest and expertise in 
     serving the primary economic development and mortgage lending 
     needs of the Native American community; and
       (D) demonstrates that it has the endorsement of the Native 
     American community it intends to serve.
       (9) The term ``Native American lender'' means a Native 
     American Financial Institution, Native American governing 
     body, Native American housing authority or other Native 
     American financial institution which acts as a primary 
     mortgage or economic development lender in a Native American 
     community.
       (10) The term ``new corporation'' means the corporation 
     formed according to section 501.
       (11) The term ``nonqualifying mortgage loan'' means a 
     mortgage loan deemed by the Organization to be of such 
     quality, type, class or principal amount as to not meet the 
     purchase standards of the Federal National Mortgage 
     Association or the Federal Home Loan Mortgage Corporation in 
     effect on September 30, 1994.
       (12) The term ``Organization'' means the Native American 
     Financial Services Organization.
       (13) The term ``qualifying mortgage loan'' means a mortgage 
     loan deemed by the Organization to be of such quality, type, 
     class or principal amount as to meet the purchase standards 
     of the Federal National Mortgage Association or the Federal 
     Home Loan Mortgage Corporation in effect on September 30, 
     1994.
       (14) The term ``transition period'' means the period of 
     time between the approval of the merger plan by both the 
     Secretary of Housing and Urban Development and the Secretary 
     of the Treasury and the designated merger date.
       TITLE II--NATIVE AMERICAN FINANCIAL SERVICES ORGANIZATION

     SEC. 201. ESTABLISHMENT OF THE ORGANIZATION.

       (a) Creation; Board of Directors; Policies; Principal 
     Office; Membership; Vacancies.--
       (1) There is established and chartered a body corporate to 
     be known as the Native American Financial Services 
     Organization (``Organization''). The Organization shall have 
     existence as a Congressionally chartered body corporate until 
     the designated merger date, at which time its charter shall 
     terminate, unless such charter is earlier surrendered by the 
     Organization. The right to revise, amend or modify the 
     Organization charter is specifically and exclusively reserved 
     to the Congress.
       (2) The powers of the Organization shall be vested in a 
     Board of Directors. The Board of Directors shall determine 
     the policies that govern the operations and management of the 
     Organization. The principal office of the Organization shall 
     be in the District of Columbia. For purposes of venue, 
     Organization shall be considered a resident of the District 
     of Columbia.
       (3)(A) The Board of Directors of the Organization shall 
     consist of nine persons, three of whom shall be appointed by 
     the President of the United States to serve at the 
     President's pleasure and six of whom shall be elected by the 
     class A stockholders, all in accordance with the bylaws of 
     the Organization. If class B stock is issued under section 
     301(b), the Board of Directors shall consist of 13 persons, 
     and the four additional members shall be elected by the class 
     B stockholders in accordance with the bylaws of the 
     Organization. Each member of the Board of Directors shall be 
     elected or appointed for a term of four years, except that 
     the members of the initial Board of Directors shall have the 
     following terms: of the three members appointed by the 
     President, one will have a two-year term, one will have a 
     three-year term, and one will have a four-year term, all as 
     designated by the President at the time of their 
     appointments; of the six members elected by the class A 
     stockholders, two will have two-year terms, two will have 
     three-year terms, and the remaining two will have four- year 
     terms; and if class B stock is issued and four additional 
     members are elected by the class B stockholders, one will 
     have a two-year term, one will have a three-year term, and 
     the remaining two will have four-year terms. All members 
     appointed by the President shall have expertise in one or 
     more of the following areas: Native American housing and 
     economic development programs, financing in Native American 
     communities, Native American governing bodies and court 
     systems, restricted and trust land issues, economic 
     development, and small consumer loans.
       (B) The Board of Directors shall select a Chairperson from 
     among its members, except that the initial Chairperson shall 
     be selected from among the members of the initial Board of 
     Directors who have been appointed or elected to four-year 
     terms.
       (C)(i) Any appointed directorship that becomes vacant shall 
     be filled by appointment by the President of the United 
     States, but only for the unexpired portion of the term.
       (ii) Any elected directorship that becomes vacant shall be 
     filled by appointment by the Board of Directors, but only for 
     the unexpired portion of the term.
       (D) Any member of the Board of Directors may continue to 
     serve after the expiration of the term of office to which the 
     director was appointed or elected until a successor has been 
     appointed or elected, and qualified.
       (b) Powers of the Organization.--The Organization shall 
     have power--
       (1) to adopt, alter, and use a corporate seal;
       (2) to adopt bylaws, consistent with this Act, regulating, 
     among other things, the manner in which--
       (A) the business of the Organization shall be conducted;
       (B) the elected directors of the Organization shall be 
     elected;
       (C) the stock of the Organization shall be issued, held, 
     and disposed of;
       (D) the property of the Organization shall be disposed of; 
     and,
       (E) the powers and privileges granted to the Organization 
     by this Act and other law shall be exercised and enjoyed;
       (3) to make and perform contracts, agreements, and 
     commitments, including entering into a cooperative agreement 
     with the Fund;
       (4) to prescribe and impose fees and charges for services 
     provided by the Organization;
       (5) to settle, adjust, and compromise, and with or without 
     consideration or benefit to the Organization to release or 
     waive in whole or in part, in advance or otherwise, any 
     claim, demand, or right of, by, or against the Organization, 
     provided that such settlement, adjustment, compromise, 
     release or waiver shall not be adverse to the interests of 
     the United States;
       (6) to sue and be sued, complain and defend, in any tribal, 
     State, Federal, or other court;
       (7) to acquire, take, hold, and own, and to deal with and 
     dispose of any property;
       (8) to determine its necessary expenditures and the manner 
     in which the same shall be incurred, allowed, and paid, and 
     appoint, employ, and fix and provide for the compensation and 
     benefits of officers, employees, attorneys, and agents as the 
     Board of Directors determines reasonable and not inconsistent 
     with the provisions this section;
       (9) to incorporate a new corporation under State, District 
     of Columbia or tribal law, as provided in section 501;
       (10) to adopt a plan of merger, as provided in section 502;
       (11) to consummate the merger of the Organization into the 
     new corporation, as provided in section 503; and
       (12) to have succession until the designated merger date or 
     any earlier date on which the Organization surrenders its 
     Federal charter.
       (c) Investment of Funds; Designation as Depositary, 
     Custodian, or Agent for Organization of any Federal Reserve 
     Bank, Federal Home Loan Bank, or Any Bank Designated as 
     Depositary of Public Money.--Moneys of the Organization not 
     required to meet current operating expenses shall be invested 
     in obligations of, or obligations guaranteed by, the United 
     States or any agency thereof, or in obligations, 
     participations or other instruments that are lawful 
     investments for fiduciary, trust or public funds. Any Federal 
     Reserve bank or Federal home loan bank, or any bank as to 
     which at the time of its designation by the Organization 
     there is outstanding a designation by the Secretary of the 
     Treasury as a general or other depositary of public money, 
     may be designated by the Organization as a depositary or 
     custodian or as a fiscal or other agent of the Organization, 
     and is hereby authorized to act as such depositary, 
     custodian, or agent.
       (d) Actions By and Against the Organization; Jurisdiction; 
     Removal of Actions; Attachment or Execution Issued Against 
     the Organization.--Notwithstanding section 1349 of title 28 
     of the United States Code or any other provision of law--
       (1) the Organization shall be deemed to be an agency 
     included in sections 1345 and 1442 of such title 28;
       (2) all civil actions to which the Organization is a party 
     shall be deemed to arise under the laws of the United States, 
     and the district courts of the United States shall have 
     original jurisdiction of all such actions, without regard to 
     amount or value; and
       (3) any civil or other action, case or controversy in a 
     tribal court, court of a State, or in any court other than a 
     district court of the United States, to which the 
     Organization is a party may at any time before the trial 
     thereof be removed by the Organization, without the giving of 
     any bond or security, to the district court of the United 
     States for the district and division embracing the place 
     where the same is pending, or, if there is no such district 
     court, to the district court of the United States for the 
     District of Columbia, by following any procedure for removal 
     of causes in effect at the time of that removal.

     SEC. 202. AUTHORIZED ASSISTANCE AND SERVICE FUNCTIONS.

       (a) Technical Assistance and Services.--The Organization is 
     authorized to--
       (1) assist the Fund in the establishment and organization 
     of Native American Financial Institutions;
       (2) assist the Fund in developing and providing financial 
     expertise and technical assistance to Native American 
     Financial Institutions, including methods of underwriting, 
     securing, servicing, packaging, and selling mortgage and 
     small commercial and consumer loans;
       (3) develop and provide specialized technical assistance on 
     how to overcome barriers to primary mortgage lending on 
     Native American lands, including issues related to trust 
     lands, discrimination, high operating costs, and 
     inapplicability of standard underwriting criteria;
       (4) assist the Fund in providing mortgage underwriting 
     assistance (but not originate loans) under contract to Native 
     American Financial Institutions;
       (5) work with the Federal National Mortgage Association, 
     the Federal Home Loan Mortgage Corporation, and other 
     participants in the secondary market for home mortgage 
     instruments in identifying and eliminating barriers to their 
     purchase of Native American mortgage loans originated by 
     Native American Financial Institutions and other lenders in 
     Native American communities;
       (6) obtain capital investments in the Organization from 
     Indian tribes, Native American organizations, and others ;
       (7) assist the Fund in its operation as an information 
     clearinghouse, providing information on financial practices 
     to Native American Financial Institutions; and
       (8) assist the Fund in monitoring and reporting to the 
     Congress on the performance of Native American Financial 
     Institutions in meeting the economic development and housing 
     credit needs of Native Americans.
       (b) Purchases and Sales of Mortgages and Mortgage-Backed 
     Securities.--In the event that the Secretary of Housing and 
     Urban Development determines that the combined purchases by 
     the Federal National Mortgage Association and the Federal 
     Home Loan Mortgage Corporation of residential one to four 
     family Native American nonqualifying mortgage loans 
     originated by Native American Financial Institutions and 
     other lenders--
       (1) in the second year following the establishment of the 
     Organization total less than $20,000,000, unless it can be 
     demonstrated to the Secretary of Housing and Urban 
     Development that such purchase goal could not be met; or
       (2) in any succeeding year, total less than that amount 
     which the Secretary of Housing and Urban Development has 
     determined and published as a reasonable Native American 
     mortgage purchase goal for such combined purchases by the 
     Federal National Mortgage Association and the Federal Home 
     Loan Mortgage Corporation in such year; the Organization 
     shall thereafter be permitted to make such purchases. In 
     determining such goal, the Secretary shall take into account 
     the Fund's study of Native American lending and investment 
     required by the Community Development Banking and Financial 
     Institutions Act of 1994. The Organization, upon receiving 
     written confirmation from the Secretary of Housing and Urban 
     Development, is thereafter authorized, without restriction as 
     to time, to--
       (A) with respect to residential mortgage loans originated 
     by Native American Financial Institutions which are 
     qualifying mortgage loans--
       (i) purchase such qualifying mortgage loans;
       (ii) hold such qualifying mortgage loans for a period of 
     time not to exceed 12 months; and
       (iii) resell such qualifying mortgage loans to the Federal 
     National Mortgage Association, the Federal Home Loan Mortgage 
     Corporation or other secondary market participants, as 
     provided in section 303(b);
       (B) with respect to residential mortgage loans originated 
     by the Native American Financial Institutions which are 
     nonqualifying mortgage loans--
       (i) purchase such nonqualifying mortgage loans from the 
     Native American Financial Institutions for such term as the 
     Organization deems appropriate including the life of the 
     mortgage loan, provided that--

       (I) the Organization has reasonable assurance that the loan 
     will be repaid within the time agreed;
       (II) the Native American Financial Institution selling the 
     loan retains a participation of not less than 10 per centum 
     in the mortgage;
       (III) the Native American Financial Institution selling the 
     loan agrees for such period of time and under such 
     circumstances as the Organization may require, to repurchase 
     or replace the mortgage upon demand of the Organization in 
     the event that the loan is in default; or
       (IV) that portion of the outstanding principal balance of 
     the loan which exceeds 80 per centum of the value of the 
     property securing such loan is guaranteed or insured by a 
     qualified insurer as determined by the Organization;

       (ii) issue mortgage-backed securities or other forms of 
     participations based on pools of such nonqualifying mortgage 
     loans, as provided in section 303(c);
       (C) to purchase, service, sell, lend on the security of, 
     and otherwise deal in--
       (i) residential mortgages that are secured by a subordinate 
     lien against a one- or four-family residence that is the 
     principal residence of the mortgagor; and
       (ii) residential mortgages that are secured by a 
     subordinate lien against a property comprising five or more 
     family dwelling units; and
       (D) Rights and remedies of the Organization, including 
     without limitation on the generality of the foregoing any 
     rights and remedies of the Organization on, under, or with 
     respect to any mortgage or any obligation secured thereby, 
     shall be immune from impairment, limitation, or restriction 
     by or under--
       (i) any law (except laws enacted by the Congress expressly 
     in limitation of this sentence) which becomes effective after 
     the acquisition by the Organization of the subject or 
     property on, under, or with respect to which such right or 
     remedy arises or exists or would so arise or exist in the 
     absence of such law; or
       (ii) any administrative or other action which becomes 
     effective after such acquisition. The Organization is 
     authorized to conduct its business without regard to any 
     qualification or similar statute in the District of Columbia, 
     or any State or tribal jurisdiction.

     SEC. 203. NATIVE AMERICAN LENDING SERVICES GRANT.

       To the extent funds are available as provided in section 
     602, and the Fund and the Organization enter into a 
     cooperative agreement for the Organization to provide 
     technical assistance and other services to Native American 
     Financial Institutions, such agreement shall provide that the 
     initial grant payment, anticipated to be $5,000,000, shall be 
     made when the initial Organization Board of Directors takes 
     office. The payment of the balance of $5,000,000 shall be 
     made to the Organization not later than one year from the 
     date of the initial grant payment.

     SEC. 204. AUDITS.

       (a) Independent Audits.--
       (1) The Organization shall have an annual independent audit 
     made of its financial statements by an independent public 
     accountant in accordance with generally accepted auditing 
     standards.
       (2) In conducting an audit under this subsection, the 
     independent public accountant shall determine and report on 
     whether the financial statements of the Organization--
       (A) are presented fairly in accordance with generally 
     accepted accounting principles; and
       (B) to the extent determined necessary by the Director of 
     the Office of Federal Housing Enterprise Oversight of the 
     Department of Housing and Urban Development, comply with any 
     disclosure requirements imposed under section 401.
       (b) GAO Audits.--
       (1) Beginning after the first two years of the 
     Organization's operation, unless earlier required by any 
     other statute, grant or agreement, the programs, activities, 
     receipts, expenditures, and financial transactions of the 
     Organization shall be subject to audit by the Comptroller 
     General of the United States under such rules and regulations 
     as may be prescribed by the Comptroller General.
       (2) To carry out this subsection, the representatives of 
     the General Accounting Office shall have access to all books, 
     accounts, financial records, reports, files and all other 
     papers, things, or property belonging to or in use by the 
     Organization and necessary to facilitate the audit, and they 
     shall be afforded full facilities for verifying transactions 
     with the balances or securities held by depositaries, fiscal 
     agents, and custodians. The representatives of the General 
     Accounting Office shall also have access, upon request to the 
     Organization or any auditor for an audit of the Organization 
     under subsection (a), to any books, accounts, financial 
     records, reports, files, or other papers, things, or property 
     belonging to or in use by the Organization and used in any 
     such audit and to any papers, records, files, and reports of 
     the auditor used in such an audit.
       (3) A report on each such audit shall be made by the 
     Comptroller General to the Congress.
       (4) The Organization shall reimburse the General Accounting 
     Office for the full cost of any such audit as billed therefor 
     by the Comptroller General.

     SEC. 205. ANNUAL HOUSING AND ECONOMIC DEVELOPMENT REPORTS.

       The Organization shall collect, maintain, and provide to 
     the Secretary of Housing and Urban Development, in a form 
     determined by the Secretary, such data relating to its 
     mortgages on housing consisting of one to four dwelling units 
     and of more than four dwelling units and to its activities 
     relating to economic development as the Secretary deems 
     appropriate.

     SEC. 206. ADVISORY COUNCIL.

       (a) Establishment.--The Board of Directors shall establish 
     an Advisory Council.
       (b) Membership.--The Advisory Council shall consist of 13 
     members, 1 representative from each of the 12 districts 
     established by the Bureau of Indian Affairs and one from 
     Hawaii. Each member shall be appointed by the Board of 
     Directors. No fewer than six of the members of the Advisory 
     Council shall have financial expertise. No fewer than nine of 
     the Advisory Council shall be Native Americans. Each member 
     shall be appointed for a term of four years; except that the 
     initial council shall be appointed as follows: four members 
     will have a two-year term, four members will have a three- 
     year term, and the remaining five members will have a four-
     year term, all as designated by the Board of Directors at the 
     time of their appointments.
       (c) Duties.--The Advisory Council shall advise the Board of 
     Directors on all policy matters of the Organization. Through 
     the regional representation of its members, the Council shall 
     provide information to the Board from all sectors of the 
     Native American community.
               TITLE III--CAPITALIZATION OF ORGANIZATION

     SEC. 301. CAPITALIZATION OF THE ORGANIZATION.

       (a) Class A Stock.--The class A stock of the Organization 
     shall be issued to Indian Tribes. The allocation shall be by 
     population as determined by the Secretary of Housing and 
     Urban Development in consultation with the Secretary of the 
     Interior. The class A stock shall have such par value and 
     other characteristics as the Organization provides. The class 
     A stock shall be vested with voting rights, each share being 
     entitled to 1 vote. The class A stock is nontransferable only 
     and it shall be surrendered to the Organization in the event 
     the holder is no longer recognized as an Indian Tribe under 
     this Act.
       (b) Class B Stock.--The Organization is authorized to issue 
     class B stock evidencing capital contributions in the manner 
     and amount, and subject to any limitations on concentration 
     of ownership, as may be established by the Organization. When 
     authorized to be issued, the class B stock shall be available 
     for purchase by investors, and shall be entitled to such 
     dividends as may be declared by the Board of Directors in 
     accordance with subsection (c). The class B stock shall have 
     such par value and other characteristics as the Organization 
     provides. The class B stock shall be vested with voting 
     rights, each share being entitled to 1 vote. The class B 
     stock is transferable only on the books of the Organization.
       (c) Charges and Fees; Earnings.--
       (1) The Organization may impose charges or fees, which may 
     be regarded as elements of pricing, with the objective that 
     all costs and expenses of the operations of the Organization 
     should be within its income derived from such operations and 
     that such operations would be fully self-supporting.
       (2) All earnings from the operations of the Organization 
     shall be annually transferred to the general surplus account 
     of the Organization. At any time, funds in the general 
     surplus account may, in the discretion of the Board of 
     Directors, be transferred to reserves.
       (d) Capital Distributions.--
       (1) Except as provided in paragraph (2), the Organization 
     may make such capital distributions (as such term is defined 
     in section 1303 of the Federal Housing Financial Safety and 
     Soundness Act of 1992) as may be declared by the Board of 
     Directors. All capital distributions shall be charged against 
     the general surplus account of the Organization.
       (2) The Organization may not make any capital distribution 
     that would decrease the total capital (as such term is 
     defined in section 1303 of the Federal Housing Financial 
     Safety and Soundness Act of 1992) of the Organization to an 
     amount less than the capital level for the Organization 
     established under section 401, without prior written approval 
     of the distribution by the Director of the Office of Federal 
     Housing Enterprise Oversight of the Department of Housing and 
     Urban Development.

     SEC. 302. OBLIGATIONS AND SECURITIES OF THE ORGANIZATION.

       (a) Obligations.--The Organization is authorized to borrow 
     money, to give security, to pay interest or other return, and 
     to issue upon the approval of the Secretary of the Treasury, 
     notes, debentures, bonds, or other obligations having 
     maturities and bearing such rate or rates of interest as may 
     be determined by the Organization with the approval of the 
     Secretary of the Treasury, provided that such borrowing and 
     issuing of obligations qualifies as a transaction by an 
     issuer not involving any public offering under section 4(2) 
     of the Securities Act of 1933. Obligations issued by the 
     Organization under this section shall not be obligations of, 
     nor shall payment of the principal of or interest on such 
     obligations be guaranteed by, the United States or any agency 
     thereof, and the obligations shall so plainly state.
       (b) Resales of Qualifying Mortgage Loans.--The sale or 
     other disposition by the Organization of qualifying mortgage 
     loans under section 202(b)(1) shall be upon such terms and 
     conditions relating to resale, repurchase, substitution, 
     replacement or otherwise as the Organization may prescribe, 
     except that the Organization may not guarantee or insure the 
     payment of any mortgage loan sold under section 202(b)(1).
       (c) Securities Backed by Nonqualifying Mortgage Loans.--
     Securities in the form of debt obligations or trust 
     certificates of beneficial interest, or both, and based upon 
     nonqualifying mortgage loans held and set aside by the 
     Organization under section 202(b)(2), may be issued upon the 
     approval of the Secretary of the Treasury and shall have such 
     maturities and shall bear such rate or rates of interest as 
     may be determined by the Organization with the approval of 
     the Secretary of the Treasury provided that such issuing of 
     securities qualifies as a transaction by an issuer not 
     involving any public offering under section 4(2) of the 
     Securities Act of 1933.
       (d) Prohibitions and Restrictions; Creation of Liens and 
     Charges; Rank and Priority; Causes of Action To Enforce; 
     Jurisdiction; Service of Process.--The Organization may, by 
     regulation or by writing executed by the Organization, 
     establish prohibitions or restrictions upon the creation of 
     indebtedness or obligations of the Organization or of liens 
     or charges upon property of the Organization, including 
     after-acquired property, and create liens and charges, which 
     may be floating liens or charges, upon all or any part or 
     parts of the property of the Organization, including after-
     acquired property. Such prohibitions, restrictions, liens, 
     and charges shall have such effect, including without 
     limitation on the generality of the foregoing such rank and 
     priority, as may be provided by regulations of the 
     Organization or by writings executed by the Organization, and 
     shall create causes of action which may be enforced by action 
     in the United States District Court for the District of 
     Columbia or in the United States district court for any 
     judicial district in which any of the property affected is 
     located. Process in any such action may run to and be served 
     in any judicial district or any place subject to the 
     jurisdiction of the United States.
       (e) Validity of Provisions; Validity of Restrictions, 
     Prohibitions, Liens, or Charges.--The provisions of this 
     section and of any restriction, prohibition, lien, or charge 
     referred to in subsection (b) shall be fully effective 
     notwithstanding any other law, including without limitation 
     on the generality of the foregoing any law of or relating to 
     sovereign immunity or priority.

     SEC. 303. LIMIT ON TOTAL ASSETS AND LIABILITIES.

       The aggregate of--
       (1) the total equity of the Organization, including all 
     capital from any issuance of class B stock; and
       (2) the total liabilities of the Organization, including 
     all obligations issued or incurred by the Organization,
     shall not at any time exceed $20,000,000.
             TITLE IV--REGULATION, EXAMINATION, AND REPORTS

     SEC. 401. REGULATION, EXAMINATION, AND REPORTS--OFHEO.

       (a) Effective Date of Section.--The provisions of this 
     section shall be effective on the date the Secretary of 
     Housing and Urban Development makes the determination in 
     accordance with the provisions of section 202(b), that the 
     Organization is authorized to purchase and sell mortgages and 
     mortgage backed securities.
       (b) In General.--The Organization shall be subject to the 
     regulatory authority of the Office of Federal Housing 
     Enterprise Oversight of the Department of Housing and Urban 
     Development with respect to all matters relating to the 
     financial safety and soundness of the Organization.
       (c) Duty of Director of OFHEO.--The duty of the Director of 
     the Office of Federal Housing Enterprise Oversight shall be 
     to ensure that the Organization is adequately capitalized and 
     operating safely as a Congressionally chartered body 
     corporate.
       (d) Powers of Director of OFHEO.--The Director of the 
     Office of Federal Housing Enterprise Oversight shall have all 
     of the exclusive powers granted the Director under section 
     1313 (b), (d), and (e) of the Housing and Community 
     Development Act of 1992, as determined by the Director to be 
     necessary or appropriate to regulate the operations of the 
     Organization.
       (e) Reports to Director of OFHEO.--
       (1) The Organization shall submit to the Director of the 
     Office of Federal Housing Enterprise Oversight annual reports 
     of the financial condition and operations of the Organization 
     which shall be in such form, contain such information, and be 
     submitted on such dates as the Director shall require.
       (2) The Organization shall also submit to the Director any 
     other reports required by the Director pursuant to section 
     1314 of the Housing and Community Development Act of 1992.
       (3) Each report shall contain a declaration by the 
     president, vice president, treasurer, or any other officer 
     designated by the Board of Directors of the Organization to 
     make such declaration, that the report is true and correct to 
     the best of such officer's knowledge and belief.
       (f) Funding OFHEO Oversight.--
       (1) The Director of the Office of Federal Housing 
     Enterprise Oversight shall assess and collect from the 
     Organization such amounts as are necessary to reimburse the 
     Office for the reasonable costs and expenses of the 
     activities undertaken by the Office to carry out the duty of 
     the Director under paragraph (2), including the costs of 
     examinations and overhead expenses.
       (2) Annual assessments imposed by the Director shall be--
       (A) imposed prior to October 1 of each year;
       (B) collected at such time or times during each assessment 
     year as determined necessary or appropriate by the Director;
       (C) deposited into the Federal Housing Enterprises 
     Oversight Fund established by section 1316(f) of the Housing 
     and Community Development Act of 1992; and
       (D) available, to the extent provided in appropriations 
     Acts, for carrying out the Director's responsibilities under 
     this section.

     SEC. 402. REGULATION OF THE SECRETARY OF HUD.

       Except for the authority of the Director of the Office of 
     Federal Housing Enterprise Oversight as provided in section 
     401, the Secretary of Housing and Urban Development shall 
     have general regulatory power over the Organization and shall 
     make such rules and regulations applicable to the 
     Organization as determined necessary or appropriate by the 
     Secretary of Housing and Urban Development to ensure that the 
     purposes of this Act are accomplished.
                 TITLE V--FORMATION OF NEW CORPORATION

     SEC. 501. FORMATION OF NEW CORPORATION.

       (a) In General.--In order to continue the accomplishment of 
     the purposes of this Act beyond the terms of the Federal 
     charter of the Organization, the Board of Directors shall, 
     not later than 10 years after the date of enactment of this 
     Act, cause the formation of a new corporation under the laws 
     of any Tribe, any State of the United States, or the District 
     of Columbia.
       (b) Powers of New Corporation Not Prescribed.--Except as 
     provided in this section, the new corporation may have 
     whatever corporate powers and attributes permitted under the 
     laws of the jurisdiction of its incorporation which the Board 
     of Directors shall determine, in its business judgment, to be 
     appropriate.
       (c) Use of NAFSO Name Prohibited..--The new corporation may 
     not use in any manner the names ``Native American Financial 
     Services Organization'', ``NAFSO'' or any variation of either 
     thereof.

     SEC. 502. ADOPTION AND APPROVAL OF MERGER PLAN.

       (a) In General.--Not later than [10] years after the date 
     of enactment of this Act, the Board of Directors shall 
     prepare, adopt, and submit to the Secretary of Housing and 
     Urban Development and the Secretary of the Treasury for 
     approval, a plan for merging the Congressionally chartered 
     Organization into the nonfederally chartered new corporation.
       (b) Designated Merger Date.--
       (1) The Board of Directors shall establish the designated 
     merger date in the merger plan as a specific calendar date 
     and time of day at which the merger of the Organization into 
     the new corporation shall be effective.
       (2) The Board of Directors may change the designated merger 
     date in the merger plan by adopting an amended plan of 
     merger.
       (3) Except as provided in paragraph (4), the designated 
     merger date in the merger plan or any amended merger plan 
     shall be not later than 11 years after the date of enactment 
     of this Act.
       (4) The Board of Directors may adopt an amended plan of 
     merger that designates a date later than 11 years after the 
     date of enactment of this Act if the Board of Directors 
     submits to both the Secretary of Housing and Urban 
     Development and the Secretary of the Treasury a report--
       (A) stating that an orderly merger of the Organization into 
     the new corporation is not feasible before the last date 
     designated by the Board of Directors;
       (B) explaining why an orderly merger of the Organization 
     into the new corporation is not feasible before the last date 
     designated by the Board of Directors;
       (C) describing the steps that have been taken to consummate 
     an orderly merger of the Organization into the new 
     corporation not later than 11 years after the date of 
     enactment of this Act; and
       (D) describing the steps that will be taken to consummate 
     an orderly and timely merger of the Organization into the new 
     corporation.
       (5) In no case shall any date designated by the Board of 
     Directors in an amended merger plan be later than 12 years 
     after the date of enactment of this Act.
       (6) In no case shall the consummation of an orderly and 
     timely merger of the Organization into the new corporation 
     occur later than 13 years after the date of enactment of this 
     Act.
       (c) Governmental Approvals of Merger Plan Required.--The 
     merger plan or any amended merger plan shall not be effective 
     until it has been approved by both the Secretary of Housing 
     and Urban Development and the Secretary of the Treasury.
       (d) Revision of Disapproved Merger Plan Required.--If 
     either the Secretary of Housing and Urban Development or the 
     Secretary of the Treasury, or both, disapprove the merger 
     plan or any amended merger plan, the disapproving Secretary 
     or Secretaries shall so notify the Organization and indicate 
     the reasons for that disapproval, and the Organization shall 
     submit to the Secretary or Secretaries an amended merger plan 
     responsive to such reasons within 30 days from the date of 
     notification of disapproval.
       (e) No Stockholder Approval of Merger Plan Required.--No 
     approval or consent of the stockholders of the Organization 
     shall be required to accomplish the merger of the 
     Organization into the new corporation.

     SEC. 503. CONSUMMATION OF MERGER.

       The Board of Directors shall cause the merger of the 
     Organization into the new corporation to be accomplished 
     according to the merger plan approved by the Secretary of 
     Housing and Urban Development and the Secretary of the 
     Treasury and all applicable requirements of the law of the 
     jurisdiction of incorporation of the new corporation.

     SEC. 504. TRANSITION.

       (a) Continuation of Rights, Duties, and Restrictions.--
     Except as provided in this section, the Organization shall, 
     during the transition period, continue to have all of the 
     rights, privileges, duties, and obligations, and be subject 
     to all of the limitations and restrictions, set forth in this 
     Act.
       (b) Collateralization of Outstanding Obligations.--The 
     Organization shall provide for all debt obligations of the 
     Organization which are outstanding on the day before the 
     designated merger date to be secured as to principal and 
     interest by obligations of the United States held in trust 
     for the holders of such obligations. The collateralization 
     and the trust shall be subject to such requirements, terms 
     and conditions as the Secretary of the Treasury deems 
     necessary or appropriate.
       (c) Issuance of New Obligations During Transition Period.--
     As needed to carry out the purposes for which it was formed, 
     the Organization may, during the transition period, continue 
     to issue obligations under section 303, provided that any new 
     obligation issued during the transition period shall mature 
     before the designated merger date.

     SEC. 505. EFFECT OF MERGER.

       (a) Transfer of Assets and Liabilities.--
       (1) At the designated merger date, all property, real, 
     personal, and mixed, and all debts due on whatever account, 
     and all other choses in action and all and every other 
     interest of or belonging to or due to the Organization shall 
     be transferred to and vested in the new corporation without 
     further act or deed, and title to any property, whether real, 
     personal, or mixed, shall not in any way be impaired by 
     reason of the merger.
       (2) At the designated merger date, the new corporation 
     shall be responsible and liable for all obligations and 
     liabilities of the Organization and neither the rights of 
     creditors nor any liens upon the property of the Organization 
     shall be impaired by the merger.
       (b) Termination of the Organization and its Federal 
     Charter.--At the designated merger date, the surviving 
     corporation of the merger shall be the new corporation, the 
     Federal charter of the Organization shall terminate, and the 
     separate existence of the Organization shall terminate.
       (c) References to the Organization in Acts of Congress.--
     From and after the designated merger date, any reference to 
     the Organization in any Act of Congress [or in any rule or 
     regulation promulgated under any Act of Congress] shall not 
     be deemed to refer to the new corporation.
       (d) Savings Clause.--
       (1) The merger of the Organization into the new corporation 
     shall not abate any proceeding commenced by or against the 
     Organization before the designated merger date, except that 
     the new corporation shall be substituted for the Organization 
     as a party to any such proceeding as of the designated merger 
     date.
       (2) All contracts and agreements to which the Organization 
     is a party and which are in effect on the day before the 
     designated merger date shall continue in effect according to 
     their terms, except that the new corporation shall be 
     substituted for the Organization as a party to those 
     contracts and agreements as of the designated merger date.
               TITLE VI--AUTHORIZATIONS OF APPROPRIATIONS

     SEC. 601. AUTHORIZATION OF APPROPRIATIONS FOR NATIVE AMERICAN 
                   FINANCIAL INSTITUTIONS.

       There is authorized to be appropriated, without fiscal year 
     limitation, to the Fund $20,000,000 to provide financial 
     assistance to Native American Financial Institutions. To the 
     extent that a Native American Financial Institution receives 
     a portion of such appropriation, such monies shall not be 
     considered as matching funds required of the Native American 
     Financial Institution under the Community Development Banking 
     and Financial Institutions Act.

     SEC. 602. AUTHORIZATION OF APPROPRIATIONS FOR ORGANIZATION.

       The Secretary of Housing and Urban Development is 
     authorized, to the extent and in the amounts provided in 
     advance in appropriation Acts, to provide up to $10,000,000 
     to the Fund for the funding of a cooperative agreement to be 
     entered into by the Fund and the Organization for technical 
     assistance and other services to be provided by the 
     Organization to the Native American Financial Institutions.
                                  ____

         The Secretary, Department of Housing and Urban 
           Development,
                               Washington, DC, September 22, 1994.
     Hon. Albert Gore, Jr.,
     President U.S. Senate,
     Washington, DC.
       Dear Mr. President: I am pleased to transmit to you the 
     ``Native American Financial Services Organization Act of 
     1994.'' For the past several months, the Department of 
     Housing and Urban Development has been working with the 
     Departments of the Treasury, the Interior, Agriculture and 
     Veterans' Affairs, in consultation with the Native American 
     Community to develop this bill.
       Based upon the findings and recommendations of the 
     Commission on American Indian, Alaska Native and Native 
     Hawaiian Housing, established by Public Law 101-235, HUD 
     believes that housing shortages and deplorable living 
     conditions have reached crisis proportions in Native American 
     communities throughout the United States.
       Historically, financing for most Native American housing 
     and economic development has been provided through government 
     programs. These federal programs, however, do not fully meet 
     the needs of Native American communities. Furthermore, there 
     are few financial institutions that provide financial 
     services to these communities.
       To begin to address this crisis, the Department is 
     proposing this legislation to improve the conditions and 
     supply of housing in Native American communities by creating 
     the Native American Financial Services Organization. This 
     legislation would establish a limited government-chartered 
     corporation to be known as the Native American Financial 
     Services Organization (NAFSO). A Federal grant would 
     capitalize the federally-chartered, for-profit NAFSO through 
     a cooperative agreement. Under the agreement, NAFSO could 
     assist Native Americans in creating local financial 
     institutions to address their capital needs. The Federal 
     NAFSO charter would cease to exist upon a designated date, by 
     which time it would be merged into a private corporation. The 
     legislation also provides for an ``asset cap'' that is 
     designed to limit the size of the NAFSO to $20 million. It is 
     anticipated that the NAFSO will be privatized in order to 
     grow beyond this limit. It also is anticipated that tribal 
     contributions would assist the NAFSO in becoming self-
     sufficient over time.
       The governance of the NAFSO would be vested in a Board of 
     Directors that would be representative of the Native American 
     community. Shares would be equitably distributed among 
     federally-recognized tribes; the Board could elect to 
     distribute additional shares on an investment basis.
       It is the purpose of this Act--
       (1) To help serve the mortgage, economic development, and 
     other lending needs of Native Americans by assisting in the 
     establishment and organization of Native American community 
     lending institutions that would be called Native American 
     Financial Institutions (NAFIs); NAFIs would be any type of 
     financial institution, including community banks, credit 
     unions and savings banks, and therefore could provide a wide 
     range of financial services;
       (2) To develop and provide financial expertise and 
     technical assistance to NAFIs, including assistance on how to 
     overcome barriers to lending on Native American lands, and 
     the past and present impact of discrimination;
       (3) To promote access to mortgage and economic development 
     credit throughout Native American communities by increasing 
     the liquidity of financing for housing and improving the 
     distribution of investment capital available for such 
     financing, primarily through NAFIs;
       (4) To direct sources of public and private capital into 
     housing and economic development for Native American 
     individuals and families, primarily through NAFIs; and,
       (5) To provide ongoing assistance to the secondary market 
     for residential mortgages and economic development loans for 
     Native American individuals and families, NAFIs, and other 
     borrowers by increasing the liquidity of such mortgage 
     investments and improving the distribution of investment 
     capital available for such residential mortgage financing.
       At the outset, it is contemplated that the NAFSO itself 
     will not purchase and sell Native American mortgages 
     originated by the NAFIs, but rather will work with the 
     existing secondary market for residential mortgages to 
     increase the liquidity for such investment. However, if it is 
     later determined that the secondary market is not meeting 
     reasonable mortgage purchase goals established by this 
     department, the NAFSO will be authorized to purchase and sell 
     such mortgages.
       The Secretary of Housing and Urban Development would be 
     authorized to provide up to $10 million, subject to 
     appropriations, for the funding of a cooperative agreement 
     for technical assistance and other services to be provided by 
     the NAFSO to NAFIs. In addition, there would be authorized, 
     without fiscal year limitation, $20 million to provide 
     financial assistance through the NAFSO to NAFIs. Funding 
     would be made available from the Community Development 
     Financial Institution (CDFI) fund. NAFIs are not eligible for 
     additional funding under the CDFI fund if the NAFI elects to 
     receive funding under this Act.
       This legislation further provides that the Office of 
     Federal Housing Enterprise Oversight would regulate matters 
     pertaining to the financial safety and soundness of the NAFSO 
     in the event that the NAFSO is authorized to purchase and 
     sell Native American mortgages and the Department of Housing 
     and Urban Development would have general regulatory 
     authority.
       The ``Native American Financial Services Act of 1994'' 
     would provide financial independence to the Native American 
     community that has never been enjoyed before. It provides the 
     structure to marry private financial resources with Federal 
     and tribal resources in a way that benefits all parties. The 
     creation of the NAFSO would have the ripple effect of opening 
     avenues to economic development and housing that have not 
     been available heretofore.
       The Office of Management and Budget has advised that it has 
     no objection to the transmittal of this legislation to 
     Congress.
       I request that the bill be referred to the appropriate 
     committee and urge its early consideration. I am sending a 
     similar letter to the Speaker of the House of 
     Representatives, Thomas S. Foley.
           Sincerely,

                                        Henry G. Cisneros.

                                 ______

      By Mr. DeCONCINI:
  S. 2488. To amend chapter 11 of title 35, United States Code, to 
provide for early publication of patent applications, to amend chapter 
14 of such title to provide provisional rights for the period of time 
between early publication and patent grant, and to amend chapter 10 of 
such title to provide a prior art effect for published applications; to 
the Committee on the Judiciary.


                   PATENT APPLICATION PUBLICATION ACT

 Mr. DeCONCINI. Mr. President, at the request of the 
administration, today I am introducing the Patent Application 
Publication Act of 1994. This bill provides for the publication of 
patent applications that are pending 18 months after their filing.
  Under current U.S. law, all applications for patents are kept in 
confidence by the Patent Trademark Office. Publication does not occur 
until the patent is actually granted. This can result in the situation 
where inventors commit substantial resources to develop an invention 
based on an incomplete, erroneous assessment of its patentability. In 
turn, this leads to disruptions in the marketplace because technology 
that is regarded as commonplace is actually the subject of a pending 
patent, and users of such technology must either negotiate a license 
with the patentee or stop using the technology altogether.
  All of the major patent system throughout the world, with the 
exception of the United States, publish applications 18 months from the 
earliest effective filing date. Thus, in an age where worldwide patent 
protection is becoming increasingly important, the current system 
places U.S. inventors at a clear disadvantage. For example, an 
invention that is the subject of a patent application in Japan will be 
published at 18 months. Inventors reviewing the Japanese patent filings 
will have the benefit of the early disclosure in Japan. Meanwhile, in 
the United States, domestic inventors will not have the benefit of an 
English language publication of the technology disclosed in an 
application for a patent, until the patent is actually issued. This 
situation provides foreign inventors with a clear advantage.
  An 18 month publication law will provide American inventors with 
access to leading technology of all types. In addition, this law will 
save resources by preventing the duplication of research, signaling 
promising areas of research, and indicating which fields or research 
topics are begin pursued by others.
  Under this bill, inventors will be given provisional rights to obtain 
compensation for any use of the invention disclosed in the application 
for patent for the time period from publication to grant. Once the 
patent is issued, the patentee will have the right to obtain a 
reasonable royalty from any person who uses, makes, sells or imports an 
invention or process in the United States that was claimed in a 
published patent application.
  Mr. President, I am concerned about the costs associated with this 
legislation. It is my understanding that the annual cost of early 
publication will be approximately $12.6 million. Since the PTO is 
totally user fee funded and receives no taxpayer dollars, these costs 
will be borne by users of the PTO. I am hopeful the PTO will work 
closely with the patent community to identify the best way to cover 
these costs. Furthermore, it is incumbent upon the Congress to ensure 
that the PTO only raises fees in an amount necessary to pay for 
publication.
  It has been a great pleasure to serve as chairman of the Patents, 
Copyrights and Trademarks Subcommittee for the last 8 years. Strong 
intellectual property protection is paramount for America to maintain 
its leadership role in world markets. I urge the PTO to continue to 
serve the interests of its users and to look out for the best interests 
of America's inventors.
  Mr. President, I ask unanimous consent that the full text of the 
legislation be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2488

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Patent Application 
     Publication Act of 1994''.

     SEC. 2. PRIOR ART EFFECT OF PUBLISHED APPLICATIONS.

       Section 102(e) of title 35, United States Code, is amended 
     to read as follows:
       ``(e) the invention was described in--
       ``(1) an application for patent, published under section 
     122(b), by another filed in the United States before the 
     invention thereof by the applicant for patent; or
       ``(2) a patent granted on an application for patent by 
     another filed in the United States before the invention 
     thereof by the applicant for patent, or on an international 
     application by another who has fulfilled the requirements of 
     paragraphs (1), (2), and (4) of section 371(c) of this title 
     before the invention thereof by applicant for patent, or''.

     SEC. 3. TIME FOR CLAIMING BENEFIT OF EARLIER FILING DATE.

       (a) In a Foreign Country.--The second paragraph of section 
     119 of title 35, United States Code, is amended to read as 
     follows:
       ``No application for patent shall be entitled to this right 
     of priority unless a claim therefor and a certified copy of 
     the original foreign application, specification and drawings 
     upon which it is based are filed in the Patent and Trademark 
     Office at such time during the pendency of the application as 
     required by the Commissioner. The Commissioner may consider 
     the failure of the applicant to file a timely claim for 
     priority as a waiver of any such claim. The certification of 
     the original foreign application, specification and drawings 
     shall be made by the patent office of the foreign country in 
     which filed and show the date of the application and of the 
     filing of the specification and other papers. The 
     Commissioner may require a translation of the papers filed if 
     not in the English language and such other information as he 
     deems necessary.
       (b) In the United States.--Section 120 of title 35, United 
     States Code, is amended by adding at the end thereof the 
     following: ``The Commissioner may determine the time period 
     within which an amendment containing the specific reference 
     to the earlier filed application shall be submitted.''.

     SEC. 4. EARLY PUBLICATION.

       (a) In General.--Section 122 of title 35, United States 
     Code, is amended to read as follows:

     ``Sec. 122. Confidential status of applications; publication 
       of patent applications

       ``(a) Except as provided in subsection (b), applications 
     for patents shall be kept in confidence by the Patent and 
     Trademark Office and no information concerning the same given 
     without authority of the applicant or owner unless necessary 
     to carry out the provisions of any Act of Congress or in such 
     special circumstances as may be determined by the 
     Commissioner.
       ``(b) Each application for patent shall be published, in 
     accordance with procedures as determined by the Commissioner, 
     as soon as possible after the expiration of a period of 18 
     months from the earliest filing date for which a benefit is 
     sought under this title, except that an application that is 
     no longer pending shall not be published and an application 
     subject to a secrecy order under section 181 of this title 
     shall not be published. An application not subject to a 
     secrecy order under section 181 of this title may be 
     published earlier than the expiration date described in the 
     preceding sentence at the request of the applicant. No 
     information concerning published patent applications shall be 
     made available to the public except as the Commissioner shall 
     determine. Notwithstanding any other provision of law, a 
     determination by the Commissioner to release or not to 
     release information concerning a published patent application 
     shall be final and nonreviewable.''.
       (b) Cost Recovery for Publication.--The Commissioner shall 
     recover the cost of early publication required by the 
     amendment made under subsection (a) by adjusting the filing, 
     issue and maintenance fees, by charging a separate 
     publication fee, or by any combination of these methods.

     SEC. 5. PROVISIONAL RIGHTS.

       Section 154 of title 35, United States Code, is amended--
       (1) by inserting ``(a)'' before ``Every patent''; and
       (2) by adding at the end thereof the following new 
     subsection:
       ``(b)(1) In addition to other rights provided by this 
     section, a patent shall include the right to obtain a 
     reasonable royalty from any person who, during the period 
     from publication of the application for such patent under 
     subsection 122(b) of this title until issue of that patent--
       ``(A)(i) makes, uses, or sells in the United States the 
     invention as claimed in the published patent application or 
     imports such an invention into the United States; or
       ``(ii) if the invention as claimed in the published patent 
     application is a process, uses or sells in the United States 
     or imports into the United States products made by that 
     process as claimed in the published patent application; and
       ``(B) had actual notice or knowledge of the published 
     patent application.
       ``(2) The right to obtain a reasonable royalty shall not be 
     available under this subsection unless the invention claimed 
     in the patent is substantially identical to the invention as 
     claimed in the published patent application.''.

     SEC. 6. TECHNICAL AND CONFORMING AMENDMENTS.

       (1) Section 12 of title 35, United States Code, is amended 
     by inserting ``published applications and'' before 
     ``patents''.
       (2) Section 13 of title 35, United States Code, is amended 
     by inserting ``published applications and'' before 
     ``patents''.
       (3) The table of sections for chapter 11 of title 35, 
     United States Code, is amended in the item relating to 
     section 122 by inserting ``; publication of patent 
     applications'' after ``applications''.
       (4) The table of sections for chapter 14 of title 35, 
     United States Code, is amended in the item relating to 
     section 154 by inserting ``; provisional rights'' after 
     ``patent''.
       (5) Section 181 of title 35, United States Code, is 
     amended--
       (A) in the first paragraph--
       (i) by inserting ``by the publication of an application 
     or'' after ``disclosure''; and
       (ii) by inserting ``the publication of an application or'' 
     after ``withhold'';
       (B) in the second paragraph by inserting ``by the 
     publication of an application or'' after ``disclosure of an 
     invention'';
       (C) in the third paragraph--
       (i) by inserting ``by the publication of the application 
     or'' after ``disclosure of the invention''; and
       (ii) by inserting ``the publication of the application or'' 
     after ``withhold''; and
       (D) in the fourth paragraph of the first sentence by 
     inserting ``the publication of an application or'' after 
     ``kept secret and''.

     SEC. 7. EFFECTIVE DATE.

       (a) In General.--Subject to subsection (b), sections 2 
     through 6 shall take effect on January 1, 1996 and shall 
     apply to all national applications filed in the United States 
     on or after such date.
       (b) Provisional Rights.--The amendment made by section 5 of 
     this Act shall only apply to applications subject to a term 
     beginning on the date on which the patent issues and ending--
       (1) 20 years after the date on which the application for 
     patent was filed in the United States; or
       (2) if the application contains a specific reference to an 
     earlier filed application or applications under sections 120, 
     121 or 365(c) of title 35, United States Code, 20 years after 
     the date on which the earliest such application was 
     filed.
                                 ______

  By Mr. KENNEDY (for himself, Mr. Hatch, Mr. Akaka, Mr. Biden, Mr. 
Bingaman, Mrs. Boxer, Mr. Bradley, Mr. Breaux, Mr. Bryan, Mr. Bumpers, 
Mr. Campbell, Mr. Chafee, Mr. D'Amato, Mr. Daschle, Mr. DeConcini, Mr. 
Dodd, Mr. Durenberger, Mr. Feingold, Mrs. Feinstein, Mr. Glenn, Mr. 
Graham, Mr. Harkin, Mr. Hatfield, Mr. Inouye, Mr. Jeffords, Mr. Kerry, 
Mr. Kohl, Mr. Leahy, Mr. Lieberman, Mr. Mack, Mr. Metzenbaum, Ms. 
Mikulski, Mr. Mitchell, Ms. Moseley-Braun, Mr. Moynihan, Mrs. Murray, 
Mr. Packwood, Mr. Pell, Mr. Pryor, Mr. Reid, Mr. Riegle, Mr. Robb, Mr. 
Sarbanes, Mr. Simon, Mr. Specter, Mr. Wellstone, and Mr. Wofford):
  S. 2489. A bill to reauthorize the Ryan White CARE Act of 1990, and 
for other purposes; to the Committee on Labor and Human Resources.


            the ryan white care reauthorization act of 1994

  Mr. KENNEDY. Mr. President, I am pleased to once again join my 
colleague Senator Hatch, and a bipartisan coalition of 47 Senators in 
introducing the Ryan White CARE Reauthorization Act of 1994.
  The CARE Act has been a lifeline of hope and care to individuals and 
families with HIV disease. The Act has helped to develop and operate 
community-based systems of health care and support services in urban 
and rural communities across this country.
  This reauthorization will extend this vitally important program for 
an additional 5 years, and take what is good and make it better. Today 
the House of Representatives introduced an identical bill, and I hope 
my colleagues will support its swift enactment.
  I ask unanimous consent that the bill and supporting materials be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2489

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Ryan White CARE 
     Reauthorization Act of 1994''.

     SEC. 2. REFERENCES.

       Whenever in this Act an amendment is expressed in terms of 
     an amendment to a section or other provision, the reference 
     shall be considered to be made to a section or other 
     provision of title XXVI of the Public Health Service Act (42 
     U.S.C. 300ff et seq.).

     SEC. 3. AMENDMENTS.

       (a) Establishment of Grant Program.--Section 2601 (42 
     U.S.C. 300ff-11) is amended by adding at the end thereof the 
     following new subsection:
       ``(c) Population of Eligible Areas.--The Secretary may not 
     make a grant to an eligible area under subsection (a) after 
     the date of enactment of this subsection unless the area has 
     a population of at least 500,000 individuals, except that 
     this subsection shall not apply to areas that are eligible as 
     of March 31, 1994. For purposes of eligibility under this 
     title, the boundaries of each metropolitan area shall be 
     those in effect in fiscal year 1994.''.
       (b) Emergency Relief for Areas With Substantial Need for 
     Services.--
       (1) Health services planning council.--Subsection (b) of 
     section 2602 (42 U.S.C. 300ff-12(b)) is amended--
       (A) in paragraph (1), by striking ``include'' and all that 
     follows through the end thereof, and inserting ``be 
     reflective of the demographics of the HIV epidemic in the 
     eligible area involved, with particular consideration given 
     to disproportionately affected and historically underserved 
     groups.'';
       (B) in paragraph (2), by adding at the end thereof the 
     following new subparagraph:
       ``(C) Chairperson.--A planning council may not be chaired 
     solely by an employee of the grantee.'';
       (C) in paragraph (3)--
       (i) by striking ``and'' at the end of subparagraph (B);
       (ii) by striking the period at the end of subparagraph (C) 
     and inserting ``, and at the discretion of the planning 
     council, assess the effectiveness, either directly or through 
     contractual arrangements, of the services offered in meeting 
     the identified needs; and''; and
       (iii) by adding at the end thereof the following new 
     subparagraph:
       ``(D) participate in the development of the Statewide 
     coordinated statement of need initiated by the State health 
     department.'';
       (D) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (E) by inserting after paragraph (1), the following new 
     paragraph:
       ``(2) Representation.--The HIV health services planning 
     council shall include representatives of--
       ``(A) health care providers, including federally qualified 
     health centers;
       ``(B) community-based organizations serving affected 
     populations and AIDS service organizations;
       ``(C) social service providers;
       ``(D) mental health and substance abuse providers;
       ``(E) local public health agencies;
       ``(F) hospital planning agencies or health care planning 
     agencies;
       ``(G) affected communities, including people of color, 
     women, and gay and bisexual men;
       ``(H) individuals with HIV or AIDS;
       ``(I) nonelected community leaders;
       ``(J) State government (including the State medicaid 
     agency);
       ``(K) grantees under subpart II of part C;
       ``(L) grantees under section 2671, or, if none are 
     operating in the area, pediatric, youth, and women's service 
     organizations operating in the area; and
       ``(M) grantees under other Federal HIV programs.''.
       (2) Distribution of grants.--Section 2603 (42 U.S.C. 300ff-
     13) is amended--
       (A) in subsection (a)--
       (i) in paragraph (2)--

       (I) by striking ``Not later than--'' and all that follows 
     through ``the Secretary shall'' and inserting the following: 
     ``Not later than 60 days after an appropriation becomes 
     available to carry out this part for each of the fiscal years 
     1996 through 2000, the Secretary shall''; and
       (II) by inserting ``or the provisions of subsection 
     (a)(3)(D)'' after ``section 2605(c)'';

       (ii) in paragraph (3)(A)(ii)--

       (I) by striking ``product of 3'' in subclause (I), and 
     inserting ``product of 9''; and
       (II) by striking ``equal to the product'' in subclause 
     (II), and inserting ``amount equal to twice the product'';

       (iii) in paragraph (3)(B)(i), by striking ``cumulative 
     number of cases'' and inserting ``for the 10 years prior to 
     the fiscal year in question'';
       (iv) in paragraph (3)(C)--

       (I) by striking ``cumulative cases'' in clause (i), and 
     inserting ``the number of cases reported and confirmed for 
     the 10 years prior to the fiscal year in question''; and
       (II) by striking ``cumulative such cases'' in clause (ii), 
     and inserting ``the number of cases reported and confirmed 
     for the 10 years prior to the fiscal year in question''; and

       (v) by adding at the end of paragraph (3), the following 
     new subparagraph:
       ``(D) Minimum amount.--No eligible area shall receive an 
     amount less than that awarded under subsection (a) to such 
     area in fiscal year 1995, except for cause, as determined by 
     the Secretary based on a finding of fraud or an egregious 
     violation by the grantee of the provisions of this Act.''; 
     and
       (B) in subsection (b)(1)--
       (i) by striking ``and'' at the end of subparagraph (D);
       (ii) by striking the period at the end of subparagraph (E) 
     and inserting a semicolon; and
       (iii) by adding at the end thereof the following new 
     subparagraphs:
       ``(F) demonstrates the inclusiveness of the planning 
     council membership, with particular emphasis on affected 
     communities and individuals with HIV disease;
       ``(G) demonstrates the manner in which the proposed 
     services are consistent with the Statewide coordinated 
     statement of need.''.
       (3) Use of amounts.--Section 2604 (42 U.S.C. 300ff-14) is 
     amended--
       (A) in subsection (b)(1)(A), by inserting ``treatment 
     education and prophylactic treatment for opportunistic 
     infections,'' after ``treatment services,''; and
       (B) in subsection (e) by striking ``reporting, and program 
     oversight functions'' and inserting ``reporting, and the 
     assessment of program effectiveness''.
       (4) Application.--Section 2605(a) (42 U.S.C. 300ff-15(a)) 
     is amended--
       (A) in paragraph (1)(B), by striking ``1-year period'' and 
     all that follows through ``eligible area'' and inserting 
     ``preceding fiscal year'';
       (B) in paragraph (4), by striking ``and'' at the end 
     thereof;
       (C) in paragraph (5), by striking the period at the end 
     thereof and inserting ``; and''; and
       (D) by adding at the end thereof the following new 
     paragraph:
       ``(6) that the applicant has participated, or will agree to 
     participate, in the Statewide coordinated statement of need 
     process where it has been initiated by the State, and ensure 
     that the services provided under the comprehensive plan are 
     consistent with the Statewide coordinated statement of 
     need.''.
       (5) Technical assistance.--Section 2606 (42 U.S.C. 300ff-
     16) is amended--
       (A) by striking ``may'' and inserting ``shall'';
       (B) by inserting after ``technical assistance'' the 
     following: ``, including peer based assistance to assist 
     newly eligible metropolitan areas in the establishment of HIV 
     health services planning councils and,''; and
       (C) by adding at the end thereof the following new 
     sentences: ``The Administrator may make planning grants 
     available to metropolitan areas projected to be eligible for 
     funding under section 2601 in the following fiscal year. Not 
     to exceed 1 percent of the amount appropriated for a fiscal 
     year under section 2608 may be used to carry out this 
     section.''.
       (6) Authorization of appropriations.--Section 2608 (42 
     U.S.C. 300ff-18) is amended by striking ``$275,000,000'' and 
     all that follows through the end of the section, and 
     inserting ``such sums as may be necessary in each of the 
     fiscal years 1996, 1997, 1998, 1999, and 2000.''.
       (b) Care Grant Program.--
       (1) Infants and women.--Subsection (b) of section 2612 (42 
     U.S.C. 300ff-22) is amended to read as follows:
       ``(b) Infants and Women.--For each State in which the 
     infants, children, adolescents, and women comprise greater 
     than 10 percent of the AIDS cases reported to and confirmed 
     by the Centers for Disease Control and Prevention for the 2 
     most recent fiscal years in such State, not less than 15 
     percent of funds allocated under this part shall be used to 
     provide health and support services to infants, children, 
     women, and families with HIV disease. With respect to a State 
     in which infants, children, youth, and women comprise less 
     than 10 percent of AIDS cases reported to and confirmed by 
     the Centers for Disease Control and Prevention for the 2 most 
     recent fiscal years in such State, planning activities under 
     part B in such State shall assess unmet needs and address the 
     service needs of such populations in their applications.''.
       (2) Hiv care consortia.--Section 2613 (42 U.S.C. 300ff-23) 
     is amended--
       (A) in subsection (a)(2)(A), by inserting ``prophylactic 
     treatment for opportunistic infections, treatment 
     education,'' after ``monitoring,'';
       (B) in subsection (c)--
       (i) in subparagraph (C) of paragraph (1), by inserting 
     before ``care'' ``and youth centered''; and
       (ii) in paragraph (2)--

       (I) in clause (ii) of subparagraph (A), by striking 
     ``served; and'' and inserting ``served;'';
       (II) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (III) by adding after subparagraph (B), the following new 
     subparagraph:

       ``(C) representatives of organizations with a history of 
     serving children, youth, and women and operating in the 
     community to be served.''; and
       (C) in subsection (d) to read as follows:
       ``(d) Definition.--As used in this part, the terms `family 
     centered care' and `youth centered care' mean the system of 
     services described in this section that is targeted 
     specifically to the special needs of infants, children 
     (including those orphaned by the AIDS epidemic), youth, 
     women, and families. Family centered and youth centered care 
     shall be based on a partnership among parents, extended 
     family members, children and youth, professionals, and the 
     community designed to ensure an integrated, coordinated, 
     culturally sensitive, and community-based continuum of 
     care.''.
       (3) Provision of treatments.--Section 2616 (42 U.S.C. 
     300ff-26) is amended by striking subsection (c) and inserting 
     the following new subsections:
       ``(c) Standards for Treatment Programs.--In carrying out 
     this section, the Secretary shall--
       ``(1) review the current status of State drug reimbursement 
     programs and assess barriers to the expended availability of 
     prophylactic treatments for opportunistic infections 
     (including active tuberculosis); and
       ``(2) establish, in consultation with States, providers, 
     and affected communities, a recommended minimum formulary.

     In carrying out paragraph (2), the Secretary shall identify 
     those treatments in the recommended minimum formulary that 
     are for the prevention of opportunistic infections (including 
     the prevention of active tuberculosis).
       ``(d) State Duties.--
       ``(1) In general.--In implementing subsection (a), States 
     shall document the progress made in making treatments 
     described in subsection (c)(2) available to individuals 
     eligible for assistance under this section, and to develop 
     plans to implement fully the recommended minimum formulary.
       ``(2) Other mechanisms for providing treatments.--In 
     meeting the standards of the recommended minimum formulary 
     developed under subsection (c), a State may identify other 
     mechanisms such as consortia and public programs for 
     providing such treatments to individuals with HIV.''.
       (4) State application.--Section 2617(b) (42 U.S.C. 300ff-
     27(b)) is amended--
       (A) in paragraph (2)--
       (i) in subparagraph (A), by striking ``and'' at the end 
     thereof; and
       (ii) by adding at the end thereof the following new 
     subparagraph:
       ``(C) a description of how the allocation and utilization 
     of resources are consistent with the Statewide coordinated 
     statement of need (including the needs of children, 
     adolescents, and women) developed in partnership with other 
     grantees in the State that receive funding under this 
     title;'';
       (B) by redesignating paragraph (3) as paragraph (4); and
       (C) by inserting after paragraph (2), the following new 
     paragraph:
       ``(3) the public health agency administering the grant for 
     the State shall convene a meeting at least annually of 
     representatives of grantees funded under this title 
     (including HIV health services planning councils, early 
     intervention programs, children, youth and family service 
     projects, special projects of national significance, and HIV 
     care consortia) and other providers (including federally 
     qualified health centers) and public agency representatives 
     within the State currently delivering HIV services to 
     affected communities for the purpose of developing a 
     Statewide coordinated statement of need. The State shall not 
     be required to finance attendance at such meetings.''.
       (5) Distribution of funds.--Section 2618 (42 U.S.C. 300ff-
     28) is amended--
       (A) by striking subsection (a);
       (B) by redesignating subsections (b), (c), (d), and (e) as 
     subsections (a), (b), (c), and (d), respectively;
       (C) by amending subsection (a), as so redesignated, to read 
     as follows:
       ``(a) Amount of Grant.--
       ``(1) Minimum allotment.--
       ``(A) In general.--Subject to the amount made available 
     pursuant to section 2620, the amount of a grant to be made 
     under this part for each of the 50 States, the District of 
     Columbia, and Puerto Rico, shall be the greater of--
       ``(i) $250,000; and
       ``(ii) an amount determined under paragraph (2).
       ``(B) Virgin islands.--The United States Virgin Islands 
     shall be eligible for an allotment under subparagraph (A) if 
     the Secretary certifies that the Virgin Islands has a program 
     in place to effectively utilize additional resources provided 
     under such allotment.
       ``(C) Supplemental enhancement grants.--
       ``(i) In general.--The Secretary shall award supplemental 
     grants to eligible entities to enhance community-based care, 
     treatment, and supportive services through the development 
     and operation of consortia and innovative approaches.
       ``(ii) Eligibility.--A State shall be eligible for--

       ``(I) a tier I supplemental grant in the amount of $500,000 
     if the number of AIDS cases (in the State) reported to and 
     confirmed by the Centers for Disease Control and Prevention 
     total not less than 1500 cases for the 10 years prior to the 
     fiscal year for which the grant is to be awarded and the 
     State does not contain a metropolitan area whose chief 
     elected official is a grantee for funding under part A; or
       ``(II) a tier II supplemental grant in the amount of 
     $250,000 if the number of AIDS cases (in the State) reported 
     to and confirmed by the Centers for Disease Control and 
     Prevention total less than 1500 cases for the 10 years prior 
     to the fiscal year for which the grant is to be awarded and 
     the State does not contain a metropolitan area whose chief 
     elected official is a grantee under part A and whose formula 
     grant exceeds the minimum allotment described in subparagraph 
     (A)(i).

       ``(iii) Reduction.--A State that receives a grant under 
     clause (ii)(I), or which would have been eligible to receive 
     such a grant in fiscal year 1995, that subsequently contains 
     a metropolitan area that becomes eligible for funding under 
     part A, shall be subject to a 2-year phased reduction in the 
     amount of the grant under clause (ii)(I) as follows:

       ``(I) With respect to the first year in which the 
     metropolitan area receives funds under part A, the State 
     would receive $500,000 under clause (ii)(I).
       ``(II) With respect to the second year in which the 
     metropolitan area receives funds under part A, the State 
     would receive $250,000 under clause (ii)(I).
       ``(III) The State would not be eligible for funds under 
     this subparagraph in years subsequent to the year described 
     in subclause (II).

       ``(iv) Terms.--All terms and conditions contained under 
     subsections (b) and (c) of section 2617 shall apply to funds 
     received under this subsection.
       ``(2) Determination.--
       ``(A) Formula.--The amount referred to in paragraph (1)(A) 
     shall be the product of--
       ``(i) an amount equal to the amount appropriated under 
     section 2620 for the fiscal year involved less the amount 
     needed to carry out subparagraph (B); and
       ``(ii) the ratio of the distribution factor for the State 
     or territory to the sum of the distribution factors for all 
     the States or territories.
       ``(B) Distribution factor.--As used in subparagraph (A), 
     the term `distribution factor' means the product of--
       ``(i) the number of cases of acquired immune deficiency 
     syndrome in the State or territory, as indicated by the 
     number of cases reported to and confirmed by the Centers for 
     Disease Control and Prevention for the 2 most recent fiscal 
     years for which such data are available; and
       ``(ii) the cube root of the ratio (based on the most recent 
     available data) of--

       ``(I) the average per capita income of individuals in the 
     United States (including territories); to
       ``(II) the average per capita income of individuals in the 
     State or territory.'';

       (D) in subsection (b), as so redesignated--
       (i) by amending paragraphs (3) and (4) to read as follows:
       ``(3) Planning and evaluations.--Subject to paragraph (5), 
     a State may not use more than 10 percent of amounts received 
     under a grant awarded under this part for planning and 
     evaluation activities.
       ``(4) Administration.--Subject to paragraph (5), a State 
     may not use more than 10 percent of amounts received under a 
     grant awarded under this part for administration, accounting, 
     reporting, and program oversight functions.'';
       (ii) by redesignating paragraph (5) as paragraph (6); and
       (iii) by inserting after paragraph (4), the following new 
     paragraph (5):
       ``(5) Limitation on use of funds.--A State may not use more 
     than a total of 15 percent of amounts received under a grant 
     awarded under this part for the purposes described in 
     paragraphs (3) and (4).''
       (6) Technical assistance.--Section 2619 (42 U.S.C. 300ff-
     29) is amended--
       (A) by striking ``may'' and inserting ``shall''; and
       (B) by inserting before the period the following: ``, 
     including technical assistance for the development and 
     implementation of Statewide coordinated statements of need''.
       (7) Authorization of appropriations.--Section 2620 (42 
     U.S.C. 300ff-30), by striking ``$275,000,000'' and all that 
     follows through the end of the section, and inserting ``such 
     sums as may be necessary in each of the fiscal years 1996, 
     1997, 1998, 1999, and 2000.''.
       (8) Grievance procedures and coordination.--Part B of title 
     XXVI (42 U.S.C. 300ff-21) is amended by adding at the end 
     thereof the following new sections:

     ``SEC. 2621. GRIEVANCE PROCEDURES.

       ``Not later than 90 days after the date of enactment of 
     this section, the Administration, in consultation with 
     affected parties, shall establish grievance procedures, 
     specific to each part of this title, to address allegations 
     of egregious violations of each such part or the intent of 
     the provisions of each such part. Such procedures shall 
     include an appropriate enforcement mechanism.

     ``SEC. 2622. COORDINATION.

       ``The Secretary shall ensure that the Health Resources and 
     Services Administration, the Centers for Disease Control and 
     Prevention, and the Substance Abuse and Mental Health 
     Services Administration coordinate the planning and 
     implementation of Federal HIV programs in order to facilitate 
     the development of a complete continuum of HIV-related 
     services for individuals with HIV disease and those at risk 
     of such disease. The Secretary shall periodically prepare and 
     submit to the relevant committees of Congress a report 
     concerning such coordination efforts at the Federal, State, 
     and local levels as well as the existence of Federal barriers 
     to HIV program integration.''.
       (c) Early Intervention Services.--
       (1) Authorization of appropriations.--Section 2655 (42 
     U.S.C. 300ff-55) is amended by striking ``$75,000,000'' and 
     all that follows through the end of the section, and 
     inserting ``such sums as may be necessary in each of the 
     fiscal years 1996, 1997, 1998, 1999, and 2000.''.
       (2) Required agreements.--Section 2664(g) (42 U.S.C. 300ff-
     64(g)) is amended--
       (A) in paragraph (2), by striking ``and'' at the end 
     thereof;
       (B) in paragraph (3)--
       (i) by striking ``5 percent'' and inserting ``10 percent 
     including planning, evaluation and technical assistance''; 
     and
       (ii) by striking the period and inserting ``; and''; and
       (C) by adding at the end thereof the following new 
     paragraph:
       ``(4) the applicant will submit evidence that the proposed 
     program is consistent with the Statewide coordinated 
     statement of need and agree to participate in the ongoing 
     revision of such statement of need.''.
       (d) General Provisions.--Section 2671 (42 U.S.C. 300ff-71) 
     is amended--
       (1) by amending the title to read as follows:

     ``SEC. 2671. GRANTS FOR COORDINATED SERVICES AND ACCESS TO 
                   RESEARCH FOR CHILDREN, YOUTH, WOMEN, AND 
                   FAMILIES.'';

       (2) in subsection (a)--
       (i) by striking ``demonstration'';
       (ii) by striking ``and the Director'' and inserting ``, in 
     coordination with the Director'';
       (iii) by striking paragraph (1), and inserting the 
     following new paragraph:
       ``(1) supporting, at the health facilities of such 
     entities, access to and linkages with clinical research on 
     therapies for pediatric patients, youth, and women with HIV 
     disease, and special initiatives related to clinical research 
     and care findings;''; and
       (iv) by amending paragraph (2) to read as follows:
       ``(2) providing and coordinating outpatient health care 
     services and systems of care, directly or through contractual 
     arrangements, to children, youth, and women and their 
     families.'';
       (3) in subsection (c)--
       (A) in paragraph (1), to read as follows:
       ``(1) Linkages to research.--The Secretary may not make a 
     grant to an applicant under subsection (a) unless the 
     applicant enters into an agreement with an appropriately 
     qualified entity with expertise in biomedical or behavioral 
     research to enhance voluntary access to research.''; and
       (B) in paragraph (2)--
       (i) by inserting after ``through the'' the following: 
     ``Director of the Administrator of the Health Resources and 
     Services Administration, and in coordination with the'';
       (ii) in subparagraph (A), by striking ``; and'' and 
     inserting a semicolon;
       (iii) in subparagraph (B), by striking the period at the 
     end and inserting ``; and''; and
       (iv) by inserting after subparagraph (B), the following new 
     subparagraph:
       ``(C) may provide training and technical assistance 
     including peer-based assistance through the Health Resources 
     and Services Administration.'';
       (4) in subsections (d), (e), and (f), by striking 
     ``pediatric patient'' each place such term appears and 
     inserting ``children and youth'';
       (5) in subsection (f), by inserting before the period the 
     following: ``, including coordination and access to child 
     welfare services, support services, kinship care services, 
     and other appropriate services for orphans of the AIDS 
     epidemic.'';
       (6) in subsection (h), to read as follows:
       ``(h) Coordination.--The Secretary may not make a grant 
     under subsection (c) unless the applicant submits evidence 
     that the proposed program is consistent with the Statewide 
     coordinated statement of need and the applicant agrees to 
     annually participate in the ongoing revision process of such 
     statement of need.''; and
       (7) in subsection (j), by striking ``$20,000,000'' and all 
     that follows through the end of the section, and inserting 
     ``such sums as may be necessary in each of the fiscal years 
     1996, 1997, 1998, 1999, and 2000.''.
       (e) Special Projects of National Significance.--Title XXVI 
     is amended by adding at the end, the following new part:

          ``PART F--SPECIAL PROJECTS OF NATIONAL SIGNIFICANCE

     ``SEC. 2701. SPECIAL PROJECTS OF NATIONAL SIGNIFICANCE.

       ``(a) In General.--Of the amount appropriated under each of 
     parts A, B, and C of this title for each fiscal year, the 
     Secretary shall use the greater of $20,000,000 or 3 percent 
     of such amount appropriated under each such part, but not to 
     exceed $25,000,000, to administer a special projects of 
     national significance program to award direct grants to 
     public and nonprofit private entities including community-
     based organizations to fund special programs for the care and 
     treatment of individuals with HIV disease.
       ``(b) Grants.--The Secretary shall award grants under 
     subsection (a) based on--
       ``(1) the need to assess the effectiveness of a particular 
     model for the care and treatment of individuals with HIV 
     disease;
       ``(2) the innovative nature of the proposed activity; and
       ``(3) the potential replicability of the proposed activity 
     in other similar localities or nationally.
       ``(c) Special Projects.--Special projects of national 
     significance may include the development and assessment of 
     innovative service delivery models that are designed to--
       ``(1) address the needs of special populations; and
       ``(2) assist in the development of essential community-
     based service delivery infrastructure.
       ``(d) Special Populations.--Special projects of national 
     significance may include the delivery of HIV health care and 
     support services to traditionally underserved populations 
     including--
       ``(1) individuals and families with HIV disease living in 
     rural communities;
       ``(2) adolescents with HIV disease;
       ``(3) Indian individuals and families with HIV disease;
       ``(4) homeless individuals and families with HIV disease;
       ``(5) hemophiliacs with HIV disease; and
       ``(6) incarcerated individuals with HIV disease.
       ``(e) Service Development Grants.--Special projects of 
     national significance may include the development of model 
     approaches to delivering HIV care and support services 
     including--
       ``(1) programs that support family-based care networks 
     critical to the delivery of care in minority communities;
       ``(2) programs that build organizational capacity in 
     disenfranchised communities;
       ``(3) programs designed to prepare AIDS service 
     organizations and grantees under this title for operation 
     within the changing health care environment; and
       ``(4) programs designed to integrate the delivery of mental 
     health and substance abuse treatment with HIV services.
       ``(f) Distribution of Funds.--Fifty percent of the funds 
     made available under this section shall be provided to 
     geographic areas that are not eligible for funds under 
     section 2603 except that existing grantees shall continue to 
     receive funding for the length of the project period.
       ``(g) Coordination.--The Secretary may not make a grant 
     under this section unless the applicant submits evidence that 
     the proposed program is consistent with the Statewide 
     coordinated statement of need, and the applicant agrees to 
     participate in the ongoing revision process of such statement 
     of need.
       ``(h) Replication.--The Secretary shall make information 
     concerning successful models developed under this part 
     available to grantees under this title for the purpose of 
     coordination, replication, and integration. To facilitate 
     efforts under this subsection, the Secretary may provide for 
     peer-based technical assistance from grantees funded under 
     this part.''.

     SEC. 4. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), this 
     Act, and the amendments made by this Act, shall become 
     effective on October 1, 1995.
       (b) Eligible Areas.--The amendments made by subsections (a) 
     and (b)(4)(A) of section 3 become effective on the date of 
     enactment of this Act.
                                  ____

                                        The Ryan White Foundation,


                                           Teens and HIV/AIDS,

                             Indianapolis, IN, September 26, 1994.
     Hon. Edward Kennedy,
     U.S. Senate, Washington, DC.
       Dear Senator Kennedy: The Ryan White CARE Act was named for 
     my son whose battle against AIDS taught Americans valuable 
     lessons about this horrible disease and about courage in 
     general. His brave legacy lives on in the programs funded by 
     this legislation--programs which provide care to increasing 
     numbers of people from all walks of life living with HIV/AIDS 
     across America.
       Since Ryan's death, I have travelled across the United 
     States educating people about AIDS. I have been so touched by 
     the many people living with HIV/AIDS and their loved ones who 
     have told me that without the Ryan White care services they 
     would not survive. They are just a fraction of the ten of 
     thousands of Americans depending on the Ryan White CARE Act 
     for medicines, medical care, housing and a myriad of support 
     services to keep them alive and well. Without the programs 
     funded under the Ryan White CARE Act, many Americans would be 
     forced into expensive and unnecessary hospitalizations and a 
     diminished quality of life.
       In the coming few days, the Congress has the opportunity to 
     honor my son Ryan's legacy--and continue its commitment to 
     fighting the AIDS epidemic--by reauthorizing the Ryan White 
     CARE Act before adjournment. Failure to reauthorize the CARE 
     Act now could jeopardize the fragile lives of people living 
     with HIV/AIDS and the network of services which provide for 
     their care.
       I ask for your leadership. I urge you to renew your 
     commitment to my son, Ryan, and to reauthorize the CARE Act 
     now.
       With gratitude and respect,
           Sincerely,
                                                     Jeanne White.
                                  ____



                                    Family AIDS Network, Inc.,

                               Washington, DC, September 30, 1994.
     Hon. Edward Kennedy,
     U.S. Senate, Washington, DC.
       Dear Senator Kennedy: In the upcoming few days you and your 
     colleagues have an opportunity to reauthorize funding for the 
     Ryan White Comprehensive AIDS Resource Emergency (CARE) Act. 
     Please act swiftly and approve reauthorization before 
     adjournment.
       During the past few months communities most affected by the 
     AIDS epidemic have suffered not only the physical 
     consequences of the virus, but also a withering emotional 
     loss. Hope--which soared a few years ago when funds were 
     increased and leadership appeared to be growing stronger--has 
     disintegrated. Expectations for support and commitment from 
     either the government or the private sector have faded. With 
     no promise of a cure, and no belief that a vaccine is on the 
     horizon, the growing sentiment is one of helplessness.
       While the numbers of those infected continues to mount, our 
     national resolve to attack this epidemic must be rekindled. 
     And I believe you have an opportunity to do just that.
       Please let all your colleagues know that--for those of us 
     who need to explain this epidemic not only on the public 
     stage but also in private, to our children, and sometimes in 
     the night to ourselves--a symbol of hope is desperately 
     needed. Prompt reauthorization would signal that, while we 
     may still be pilgrims on the road to AIDS, we are not walking 
     alone. And it would provide tangible benefits for those most 
     in need.
       I salute your efforts on behalf of all who are HIV-
     infected, and all who love us. Since we are unable to conquer 
     the virus, we are grateful when others give us reason for 
     hope.
           Sincerely,
                                                   Mary D. Fisher.
                                  ____

         Pediatric AIDS Coalition, Advocates for Children, 
           Adolescents and Their Families,
                               Washington, DC, September 29, 1994.
     Hon. Edward M. Kennedy,
     U.S. Senate,
     Washington, DC.
       Dear Senator Kennedy: The Pediatric AIDS Coalition, 
     comprised of 33 national organizations advocating on behalf 
     of children, adolescents, women and their families affected 
     by HIV and AIDS, is committed to ensuring that the unique 
     needs of these populations are addressed through federal 
     legislation. The Coalition supports the accelerated 
     reauthorization of the Ryan White AIDS C.A.R.E. Act, and 
     commends your leadership in seeking passage of this bill this 
     year.
       The Ryan White C.A.R.E. Act provides funding for programs 
     and services that positively affect women, children, and 
     adolescents. Language in your bill which creates more 
     opportunities for organizations representing women, infants, 
     children, and adolescents to participate in the Title II 
     consortia, and increases the reporting requirements regarding 
     the 15% set-aside, are improvements over existing law. We are 
     also pleased with the addition of language which encourages 
     cooperation and collaboration among grantees from all four 
     titles, as well as among care providers outside of Ryan 
     White.
       On behalf of the Coalition, we offer our assistance in 
     working together to reauthorize the Ryan White AIDS C.A.R.E. 
     Act this year in order to better serve women, infants, 
     children, adolescents, and their families affected by HIV/
     AIDS.
           Sincerely,
     Damian Thorman,
       American Academy of Pediatrics.
     Laura Feldman,
       National Association of Children's Hospitals and Related 
     Institutions.
     DAvid Harvey,
       AIDS Policy Center for Children, Youth & Families.
                                                 Cities Advocating


                                        Emergency AIDS Relief,

                                               September 30, 1994.
     Hon. Edward M. Kennedy,
     Chairman, Senate Committee on Labor and Human Resources, 
         Washington, DC.
       Dear Mr. Chairman: Cities Advocating Emergency AIDS Relief 
     is a nationwide coalition representing the needs of community 
     HIV service planning councils established under Title I of 
     the Ryan White Comprehensive AIDS Resources Emergency (CARE) 
     Act of 1990. Our planning council members include community 
     AIDS organizations, people living with HIV disease, civic 
     leaders, business leaders, religious organizations, mayoral 
     representatives, local public health officials, drug 
     treatment providers, mental health providers and 
     representatives from diverse communities of color. Our 
     coalition members are directly involved in the frontline 
     battle against AIDS in their communities across the nation.
       We write to you to express our wholehearted support for the 
     Kennedy-Hatch Ryan White CARE Reauthorization Act of 1994. We 
     are extremely grateful to you for the leadership you have 
     demonstrated on a number of HIV and health care issues, and 
     for the ongoing support you have shown this program. The 
     CAEAR Coalition is eager to work with you to ensure passage 
     of this crucial piece of legislation before the end of the 
     103rd Congress.
       Since 1990, the CARE Act has served as a lifeline for 
     thousands of men, women and children living with HIV disease 
     and AIDS in urban, suburban and rural areas of the country. 
     While in 1990 just 16 U.S. cities were eligible for emergency 
     relief through Title I, unfortunately, just four years later 
     the number of eligible communities is thirty-four, and 
     growing. We firmly believe that passage of this legislation 
     before the end of the 103rd Congress is vital to our 
     communities' efforts to successfully fight this growing 
     epidemic.
           Sincerely,
       Atlanta HIV Planning Council--State Representative James 
     Martin, Chairperson; State Representative LaNett Stanley, Co-
     Chairperson; Sandra Thurman, Director, Advocacy Programs, The 
     Task Force for Child Survival and Development; Jeff Cheek, 
     Director, Public Policy, AID Atlanta.
       Baltimore HIV Planning Council--John Bartlett, M.D., Co-
     Chair, Johns Hopkins Medical Center; Carla Alexander, M.D., 
     Chase Brexton Clinic.
       Boston HIV Planning Council--Brian Felt, Chair; Denise 
     McWilliams, Esq., Vice-Chair, Director, AIDS Law Project, 
     Justice Resource Institute.
       Chicago HIV Planning Council--Judith Johns, Co-Chair, 
     Assistant Commissioner, Chicago Department of Health; Mark 
     Ishaug, AIDS Foundation of Chicago.
       Dallas HIV Planning Council--Don Maison, Executive 
     Director, AIDS Services of Dallas.
       Denver HIV Planning Council--Vic Dukay, Executive Director, 
     The Lundy Foundation.
       Detroit HIV Planning Council--Victor L. Marsh, Chair, 
     Southeast Michigan AIDS Council (SEMHAC); Earl Schipper, 
     Michigan AIDS Fund, Greystone Group.
       Ft. Lauderdale HIV Planning Council--Jim Jordan, Chair.
       Houston HIV Planning Council--Sue Cooper, Houston 
     Department of Public Health.
       Kansas City HIV Planning Council--Judy Moore-Nichols, Co-
     Chair; Mike Baker, Co-Chair.
       Los Angeles HIV Planning Council--Phillip Wilson, Co-Chair, 
     AIDS Project Los Angeles; Marcy Kaplan, Co-Chair, Los Angeles 
     Pediatric AIDS Network.
       Metro-Dade HIV Services Planning Council--James H. 
     Cullither, PLWA, Chair.
       Nassau-Suffolk HIV Planning Council--Theadore Jospe, Chair.
       Newark HIV Planning Council--Nick Macchione, Executive 
     Director.
       New Haven HIV Planning Council--David Mensah, Member.
       New Orleans HIV Planning Council--Judy Montz, Director of 
     Health Policy and AIDS Funding, Office of the Mayor.
       New York HIV Planning Council--Keith Cylar, Housing Works; 
     Ronald Johnson, Chair, Coordinator of Citywide AIDS Policy; 
     Joanna Omi, New York City Health and Hospitals Corp.
       Oakland HIV Planning Council--Dr. Robert Scott, Chair.
       Orange County HIV Planning Advisory Council--Pearl Jemison-
     Smith, Chair; Ronald Taylor, Orange County Health Care 
     Agency.
       Orlando HIV Planning Council--John Lawler, PLWA, Chair, 
     Treasurer, Ryan White II.
       Philadelphia HIV Planning Council--Richard H. Scott, 
     Philadelphia Department of Public Health.
       Phoenix HIV Planning Council--David Graham, Chairman, 
     Maricopa County Community AIDS Partnership; Wayne Tormala, 
     Executive Director, Maricopa County Community AIDS 
     Partnership.
       Ponce HIV Planning Council--Dr. Pedro Castang, Ponce 
     Regency Hospital--Pediatric Center.
       Riverside-San Bernardino HIV Planning Council--Bradley 
     Gilbert, M.D., MPP, Chair, Director of Public Health, County 
     of Riverside.
       San Diego HIV Planning Council--Carol Nottley, Executive 
     Director, AIDS Foundation San Diego.
       San Francisco HIV Planning Council--Estela Garcia, 
     Instituto Familiar de la Raza; Mitch Katz, Co-Chair, 
     Director, AIDS Office, San Francisco Dept. of Public Health; 
     Michael Shriver, Co-Chair, Mobilization Against AIDS.
       San Juan HIV Planning Council--Debra Medina, AIDS Task 
     Force; Sonia Torres, AIDS Task Force.
       Seattle HIV Planning Council--Gregg Johnson, Co-Chair; Bob 
     Wood, M.D., Co-Chair, Director, AIDS Control Program, 
     Seattle-King County Department of Public Health.
       St. Louis HIV Planning Council--Rudy Nickens, Co-Chair; 
     Woody BeBout, Esq.
       Tampa/St. Petersburg HIV Planning Council--Chuck Kuehn, 
     Executive Director, Tampa AIDS Network.
       Washington, D.C. HIV Planning Council--Ernest C. Hopkins, 
     Chair; A. Cornelius Baker, Vice-Chair, Director of Public 
     Policy and Education for the National Association of People 
     With AIDS.
       West Palm Beach HIV Planning Council--Peter Cruise, Chair; 
     Shauna Dunn, Executive Director, Comprehensive AIDS Program 
     of PBC.
                                          Association of State and


                                 Territorial Health Officials,

                               Washington, DC, September 15, 1994.
     Hon. Edward M. Kennedy,
     U.S. Senate, Washington, DC.
       Dear Senator Kennedy: On behalf of the Association of State 
     and Territorial Health Officials (ASTHO), which represents 
     the chief health officers in the 50 states, the District of 
     Columbia, and the U.S. territories, I am writing to indicate 
     ASTHO's support for of early reauthorization of the Ryan 
     White CARE Act.
       ASTHO firmly believes that the Ryan White CARE Act has been 
     instrumental in providing persons living with HIV/AIDS the 
     necessary support and health care services that are crucial 
     to prolonging and improving the quality of their lives.
       ASTHO recognizes and applauds the efforts of the Ryan White 
     CARE Act Reauthorization Coalition and, in particular, those 
     of our affiliate the National Alliance of State and 
     Territorial AIDS Directors, in bringing forth state 
     perspectives.
       We look forward to the introduction of this legislation and 
     to working with you and your staff in enhancing state 
     capacity to meet the health care needs of persons living with 
     HIV/AIDS. Thank you for your efforts and your commitment to 
     improving the quality of life for persons living with HIV/
     AIDS.
           Sincerely,
                                                Patricia A. Nolan,
                                                       Chairwoman.
                                  ____

                                  ____

                                  ____

                                  ____

                                  ____

                                    National Alliance of State and


                                   Territorial AIDS Directors,

                               Washington, DC, September 29, 1994.
     Hon. Edward M. Kennedy,
     U.S. Senate, Washington, DC.
       Dear Senator Kennedy: The National Alliance of State and 
     Territorial AIDS Directors (NASTAD) strongly supports the 
     reauthorization of the Ryan White CARE Act before the end of 
     the 103rd Congress.
       Ryan White CARE Act programs have served as a lifeline for 
     people living with HIV/AIDS throughout the United States. 
     Through the provision of comprehensive HIV health and social 
     services, people with HIV/AIDS have gained access to medical 
     and social services that have helped to prolong and improve 
     the quality of their lives.
       As the organization representing the state health 
     department HIV/AIDS program managers, NASTAD was deeply 
     involved in the development of provisions to strengthen Title 
     II of the CARE Act, which provides critical funding for 
     comprehensive continuum of care programs in all U.S. states, 
     the District of Columbia, Puerto Rico and the Virgin Islands. 
     We believe that the reauthorization proposals included in the 
     Kennedy-Hatch legislation will enhance Title II, increase 
     access to life-prolonging medications, and help ensure an 
     equitable distribution of resources required to enable all 
     states to respond to the increasing need for HIV care 
     services in urban, suburban, and rural areas.
       Thank you for your extraordinary leadership on behalf of 
     people with HIV/AIDS We look forward to working closely with 
     you in the days ahead.
           Sincerely,
     Robert O. McAlister,
       Chair.
     Julie M. Scofield,
       Executive Director.
                                               AIDS Policy Center,


                               For Children, Youth & Families,

                               Washington, DC, September 29, 1994.
     Hon. Edward M. Kennedy,
     U.S. Senate, Washington, DC.
       Dear Senator Kennedy: On behalf of the pediatric, 
     adolescent and family AIDS community and Ryan White CARE Act 
     Title IV grantees, I applaud your efforts to seek expedited 
     passage of the Ryan White CARE Reauthorization Act of 1994 
     before the end of the 103rd Congress. This legislation is 
     vital to the lives of children, youth, women, men and 
     families affected by AIDS who depend on comprehensive 
     services and access to life-savings drugs that are provided 
     through CARE Act programs.
       During the past year, The AIDS Policy Center has joined 
     together in coalition with other national and local AIDS 
     organizations as well as members of the Ryan White CARE Act 
     Reauthorization Coalition for an unprecedented level of 
     commitment and unity in seeking early reauthorization of this 
     legislation. Through in-depth policy analysis and debate, 
     recommendations were developed for technical amendments that 
     take into account the geographic shift in the AIDS epidemic 
     as well as enhanced representation of the pediatric, youth 
     and women's community in CARE Act service planning 
     procedures. In addition, technical amendments related to 
     Title IV have greatly strengthened the ability to provide 
     resources for services and access to clinical research 
     programs in communities hardest hit by the HIV epidemic among 
     children, youth, women, and families.
       We look forward to working with you to secure passage of 
     the Ryan White CARE Reauthorization Act of 1994 before the 
     end of next week.
           Sincerely,
                                                  Sheri Saltzberg,
                                    President, Board of Directors.
                                               National Ryan White


                                       Title III(B) Coalition,

                               Washington, DC, September 29, 1994.
     Hon. Edward M. Kennedy,
     Chairman, Senate Committee on Labor and Human Resources, 
         Washington, DC.
       Dear Senator Kennedy: The Ryan White Title (III)(B) 
     Coalition is a national coalition that includes 
     representatives from community and migrant health centers, 
     city and county health departments and diverse community-
     based organizations, including providers specifically 
     targeting communities of color, hospitals, health care for 
     the homeless centers, family planning agencies and 
     comprehensive hemophilia centers specifically targeting 
     communities of color and other historically underserved 
     populations.
       On behalf of the Coalition I wish to express our ardent 
     support for the Ryan White CARE Reauthorization Act of 1994. 
     We join with our partners in the AIDS community to testify 
     that the CARE Act has been--and must continue to be--a vital 
     part of our national response to the AIDS epidemic. The four 
     titles of the CARE Act provide a continuum of HIV services 
     across all states, territories, cities and neighborhoods in 
     the United States.
       The Coalition is deeply grateful for your unwavering 
     commitment to Americans living with HIV/AIDS. Because of your 
     leadership, hundreds of thousands of people have been served 
     by Title III(B) programs. It is our profound hope that the 
     CARE Act will continue to serve as a lifeline to those 
     affected and infected with HIV disease for another five 
     years. The Coalition stands ready to support your efforts to 
     reauthorize the CARE Act.
           Respectfully,
                                                C. Michael Savage,
                                                            Chair.

  Mr. SPECTER. Mr. President, as a strong supporter and cosponsor of 
the Ryan White CARE Act of 1990, I am pleased to join my colleagues as 
an original cosponsor of the Ryan White CARE Reauthorization Act of 
1994. When the Act of 1990 was first introduced, I fought, along with 
several dedicated individuals representing women and children with HIV/
AIDS, to ensure that funding provided under the act would support 
services and comprehensive care projects for children, youth, and 
families affected by the disease.
  Over the last several years, I have worked to secure a smooth 
transition and integration of the previously funded pediatric AIDS 
demonstration projects with the pediatric AIDS demonstrations 
authorized under title IV of the act. I am, therefore, pleased that the 
reauthorization legislation strengthens both the provision of title IV, 
and the emphasis in the act on providing care to women and children 
infected with HIV/AIDS. The legislation also makes improvements in the 
allocation formulas and funding eligibility criteria to ensure that 
individuals and communities most in need, receive assistance under the 
act.
  The Ryan White CARE Act has been instrumental in providing necessary 
care and services to the nearly 1 million men, women, and children 
infected with HIV/AID. I am proud to be a co-sponsor of this bill 
today. As ranking member of the Labor, Health and Human Services, and 
Education Appropriations Subcommittee, however, I must remind my 
colleagues that we face a freeze on discretionary spending over the 
next 4 years. Increases in funding for the programs under the act will 
be difficult to obtain. Having just completed work on the Labor, HHS 
and Education Appropriations bill for fiscal year 1995, I know how 
difficult it is to balance the competing requirements for increased 
funding before the subcommittee. This will be no different next year.
  Mr. FEINGOLD. Mr. President, I am pleased to join as an original 
cosponsor of the Ryan White Comprehensive AIDS Resource Emergency Act 
reauthorization package and would like to express my full and 
enthusiastic support for this measure. I commend Senator Kennedy and 
members of his staff for their excellent stewardship in crafting this 
legislation, and for working hard to ensure that it receives attention 
this session.
  For several months, Wisconsin AIDS groups and my office have worked 
in coalition with national AIDS organizations to develop a new formula 
for greater equity in the distribution of CARE Act funds and to move 
forward with an expedited reauthorization measure. The bill introduced 
in the Senate today represents a sincere effort to support equitable 
national funding for people with AIDS through changes in the funding 
formulas, while maintaining the integrity of each of the four titles of 
the CARE Act. It is a victory for people living with AIDS and HIV who 
are entitled to quality care regardless of where in this country they 
reside.
  The CARE Act provides comprehensive medical and support services for 
thousands of Americans living with HIV/AIDS in cities, states, and 
communities across the United States. There is no question that these 
programs are necessary. One American becomes infected with HIV every 15 
minutes, and in Wisconsin alone cumulative cases of AIDS and HIV 
infection as reported between 1982 and June 30, 1994 exceed 6,700. In 
1993, 395 people in my State were diagnosed with AIDS, and 456 people 
learned that they were infected with HIV. HIV infection and AIDS cases 
are no longer striking Wisconsin's largest urban areas, the number of 
AIDS cases reported outside of the cities of Milwaukee and Madison are 
increasing rapidly, and now represent 39 percent of State's total 
cases.
  Our experience with Ryan White programs to date reflect a profound 
reality--the dollars we spend through the CARE Act make a dramatic and 
positive difference in the lives of people living with AIDS. This 
reauthorization package goes a long to make certain that those benefits 
are felt nationwide. It creates a supplemental grant system for the 32 
States, like Wisconsin, that historically have not received emergency 
priority cities title I funding from the CARE Act. A minimum $250,000 
allotment will be given to each State, regardless of the number of AIDS 
cases within their border. Supplemental grants will then be awarded on 
the basis of reported cases in each State. For States like Wisconsin, 
with AIDS case loads greater than 1,500, an additional $500,000 
supplemental grant will be provided. In total these changes should 
result in significant new funding for States with growing populations 
of AIDS and HIV survivors living in rural areas.
                                  ____

                                  ____

  A reauthorized CARE Act that provides for equitable national funding 
per AIDS case to both high incidence cities and the states will 
strengthen the national response to AIDS, and should not result in 
financial harm to any community or State. The AIDS service providers in 
my State and I believe it would continue to direct more resources to 
higher incidence communities and would also assure that all regions of 
the country have resources to manage the AIDS epidemic commensurate to 
their incidence of AIDS. I respectfully urge my colleagues to support 
Ryan White CARE Act reauthorization.
                                 ______

      By Mr. PRESSLER:
  S. 2490. A bill to amend the Federal Water Pollution Control Act to 
establish a comprehensive program of conserving and managing wetlands 
and waters of the United States, and for other purposes; to the 
Committee on Environment and Public Works.


         COMPREHENSIVE WETLANDS CONSERVATION AND MANAGEMENT ACT

  Mr. PRESSLER. Mr. President, today I am introducing legislation that 
addresses a major concern of land owners and businesses not only in 
South Dakota but throughout the United States. The concern is wetlands.
  Traveling throughout South Dakota and listening to the people, it is 
clear that wetlands are an issue on everyone's mind. More often than 
not, current wetlands policy is a burden on our farmers, ranchers, and 
business people. Problems with current wetlands policies have affected 
farmers and ranchers predominantly. However, current policies also are 
now affecting those who live in our cities and small towns. The bill I 
am introducing today would go far in establishing a policy that neither 
is burdensome nor imposes unwarranted costs and regulations.
  And what are these wetlands concerns? The right to own private 
property is one. Compensation to property owners when land is taken 
away or when use of the land is restricted is another. Government-
forced changes in farming and ranching operations are on everyone's 
mind. Current excessive penalties and fines could force young farmers 
and ranchers of the land. Obstacles to business expansion are another 
current concern.
  Mr. President, the list of concerns goes on. These concerns are not 
imagined. They are real. In just one county in South Dakota--
Kingsbury--nearly 20 percent of that county's farmland contains 
Government wildlife easement wetlands. However, Government officials 
have not notified farmers of those easements. Seven possible wetlands 
violations were reported in Kingsbury County earlier this year. Yet 
four of the seven operators charged had no idea there were wetlands 
easements on their farms.
  In these cases, local officials quickly identified the problem, and 
notified the affected farmers. The farmers then quickly repaired the 
disruption of their wetlands. Now these farmers are waiting for a 
ruling from Washington, DC bureaucrats on what their penalty will be.
  The penalties will not be light. They could reach $35,000. Mr. 
President, I do not know any small farmer or rancher who can afford to 
lose $35,000. Efforts must be taken to ensure that any fine or penalty 
is in line with violations. Many violations are incidental and quickly 
repaired. Penalties should fit the crime.
  The concerns go well beyond farms and ranches. In Watertown, SD, a 
new elementary school is under construction. This month it was 
discovered that the 25-acre lot where the school is being built 
contains a wetland. All construction has ceased and builders are trying 
to determine what Federal permits are needed to resume construction. 
The process will take months. There is the possibility that fines may 
be levied.
  Thousands of South Dakotans have written, called, or visited with me 
about the definition of wetlands and the rules and regulations designed 
to protect wetlands. Farmers, ranchers, business men and women, and 
individual South Dakotans have clearly identified one of the most 
important issues affecting their lives. They are concerned about the 
definition of wetlands and what guidelines should be adopted to ensure 
their protection.
  After listening to South Dakotans, I cosponsored legislation last 
year, S. 1463, which would create much-needed guidelines for 
identifying and delineating wetlands and creating a balance between 
growth and the protection of private property. I have revised that bill 
and I am introducing it today in order to begin discussions on this 
crucial issue prior to the 104th Congress.
  Next year, the Senate will consider changes in the Clean Water Act. 
Section 404 of that act is designed to protect wetlands. It is quite 
controversial. Current law is too broad, and it is causing too many 
problems throughout the country. The bill I am introducing today brings 
needed reform to section 404 and provides realistic wetlands 
definitions.
  Congress has never passed a comprehensive law defining wetlands. 
Without that definition, Federal agencies have been aggressively 
pursuing control over private property in the name of saving wetlands. 
What the Government should or should not be doing in this area needs to 
be defined clearly. My bill does that. It provides definitions that 
protect true wetlands area and protects the rights of private property 
owners.
  My bill requires certain criteria to be met and verified before an 
area can be regulated as a wetland. Such an approach is more reliable 
in identifying true wetlands. It prevents field inspectors from 
mistakenly classifying dry, upland areas that are drained effectively 
as wetlands, and also eliminates a major source of confusion and abuse 
caused by current regulations.
  Mr. President, I ask that an explanation of the bill be printed in 
the Record at this point.
  Mr. President, I applaud my friend and colleague Senator Breaux for 
being the leader on this issue during last Congress. While the issue 
was not addressed on the floor during the 103d Congress, I wanted to 
introduce this bill to begin the debate for the next Congress.
  The 104th Congress must address this issue. Whether it becomes part 
of the 1995 farm bill or whether it is adopted as a provision during 
the Clean Water Act reauthorization, this issue will be addressed. My 
bill establishes a common sense and balanced approach to defining and 
protecting wetlands.
  The bill I am introducing today has strong support in my State. I 
will be introducing this bill again at the beginning of the 104th 
Congress and I will work for its adoption. I urge my colleagues to take 
a close look at this bill, and join me in sponsoring this bill next 
year.
  The bill has wide support. The American Farm Bureau, National Farmers 
Union, National Cattlemen's Association, National Association of Home 
Builders, and the Alliance for America, among others, all support this 
bill.
  Only through the kind of common sense and balanced approach proposed 
in my bill can the Nation's agricultural, business, environmental, and 
individual interests be addressed properly.
  Mr. President, I ask unanimous consent that a copy of my bill and 
additional material be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2490

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Comprehensive Wetlands 
     Conservation and Management Act of 1994''.

     SEC. 2. FINDINGS AND STATEMENT OF PURPOSE.

       (a) Findings.--Congress finds that--
       (1) wetlands play an integral role in maintaining high 
     quality of life through material contributions to the 
     national economy, food supply, water supply and quality, 
     flood control, and fish, wildlife, and plant resources, and 
     to the health, safety, recreation, and economic well-being of 
     citizens throughout the United States;
       (2) wetlands serve important ecological and natural 
     resource functions, such as providing essential nesting and 
     feeding habitat for waterfowl, other wildlife, and many rare 
     and endangered species, fisheries habitat, the enhancement of 
     water quality, and natural flood control;
       (3) much of the wetlands resource of the United States has 
     sustained significant loss or degradation, resulting in the 
     need for effective programs to limit the loss and degradation 
     of ecologically significant wetlands and to provide for long-
     term restoration and enhancement of the wetlands resource 
     base;
       (4) because 75 percent of the wetlands in the lower 48 
     States is privately owned and because the majority of the 
     population of the United States lives in or near wetlands, an 
     effective wetlands conservation and management program must 
     reflect a balanced approach that conserves and enhances 
     important wetlands functions and values while observing 
     private property rights, recognizing the need for essential 
     public infrastructure, such as highways, ports, airports, 
     sewer systems, and public water supply systems, and providing 
     the opportunity for sustained economic growth; and
       (5) the Federal permit program established under section 
     404 of the Federal Water Pollution Control Act (33 U.S.C. 
     1344) was not originally conceived as a wetlands regulatory 
     program and is insufficient to ensure that the wetlands 
     resource base of the United States will be conserved and 
     managed in a fair and environmentally sound manner.
       (b) Purpose.--The purpose of this Act is to establish a new 
     Federal regulatory program for activities in wetlands and 
     waters of the United States to--
       (1) assert Federal regulatory jurisdiction over a broad 
     category of specifically identified activities that result in 
     the loss or degradation of wetlands and waters of the United 
     States;
       (2) account for variations in wetlands functions or values 
     in determining the character and extent of regulation of 
     activities occurring in wetlands;
       (3) provide sufficient regulatory incentives for 
     conservation, restoration, or enhancement activities;
       (4) encourage conservation of resources on an ecosystem 
     basis to the fullest extent practicable; and
       (5) balance public and private interests in determining the 
     conditions under which activity in wetlands and waters of the 
     United States may occur.

     SEC. 3. WETLANDS CONSERVATION AND MANAGEMENT.

       Title IV of the Federal Water Pollution Control Act (33 
     U.S.C. 1341 et seq.) is amended by striking section 404 and 
     inserting the following new section:

     ``SEC. 404. PERMITS FOR ACTIVITIES IN WETLANDS OR WATERS OF 
                   THE UNITED STATES.

       ``(a) Definitions.--As used in this section:
       ``(1) Activity in wetlands or waters of the united 
     states.--The term `activity in wetlands or waters of the 
     United States' means--
       ``(A) the discharge of dredged or fill material into waters 
     of the United States, including wetlands at a specific 
     disposal site; or
       ``(B) the draining, channelization, or excavation of 
     wetlands.
       ``(2) Creation.--The term `creation', used with respect to 
     wetlands, means an activity that brings wetlands into 
     existence, at a site where the wetlands did not formerly 
     occur, for the purpose of compensation.
       ``(3) Director.--The term `Director', used without further 
     modification, means the Director of the United States Fish 
     and Wildlife Service.
       ``(4) Enhancement.--The term `enhancement', used with 
     respect to wetlands or waters of the United States, means an 
     activity that increases the value of a function in wetlands 
     or waters of the United States.
       ``(5) Fastlands.--The term `fastlands' means lands located 
     behind permitted manmade structures, such as lands located 
     behind a levee to permit utilization of the lands for 
     commercial, industrial, or residential purposes consistent 
     with each local land use planning requirement.
       ``(6) Growing season.--The term `growing season' means, for 
     each plant hardiness zone, the period between the average 
     date of last frost in spring and the average date of first 
     frost in autumn.
       ``(7) Incidentally created.--The term `incidentally 
     created', used with respect to wetlands, means lands that 
     otherwise meet the standards for delineation of wetlands 
     described in paragraphs (1) and (2) of subsection (g), if a 
     characteristic of the wetlands is the unintended result of a 
     human induced alteration of hydrology.
       ``(8) Maintenance.--The term `maintenance' means an 
     activity undertaken to ensure continuation of wetlands or the 
     accomplishment of a project goal after a wetlands restoration 
     or wetlands creation project has been technically completed, 
     including water level manipulation and control of any 
     nonnative plant species.
       ``(9) Mitigation banking.--The term `mitigation banking' 
     means wetlands restoration, enhancement, preservation, or 
     creation for the purpose of providing compensation for 
     wetlands loss or degradation.
       ``(10) Normal farming, silviculture, aquaculture, or 
     ranching activity.--The term `normal farming, silviculture, 
     aquaculture, or ranching activity' means a normal ongoing 
     practice identified as a normal ongoing activity by the 
     Secretary of Agriculture (in consultation with the 
     Cooperative Extension Service for each State, the land-grant 
     university system, and the agricultural colleges of the 
     State), taking into account any existing practice (as of the 
     date of the identification) and any other practice that may 
     be identified in consultation with the affected industry or 
     community.
       ``(11) Prior converted cropland.--The term `prior converted 
     cropland' means lands that were both manipulated (by drainage 
     or other physical alteration to remove excess water from the 
     land) and cropped before December 23, 1985, to the extent 
     that the lands no longer exhibit significant wetlands 
     functions or values.
       ``(12) Restoration.--The term `restoration', used with 
     respect to wetlands, means an activity undertaken to return 
     wetlands from a disturbed or altered condition with lesser 
     wetlands acreage or fewer wetlands functions or values to a 
     previous condition with greater wetlands acreage or more 
     wetlands functions or values.
       ``(13) Secretary.--The term `Secretary', used without 
     further modification, means the Secretary of the Army.
       ``(14) Temporary.--The term `temporary', used with respect 
     to an impact, means the disturbance or alteration of wetlands 
     or waters of the United States caused by an activity under a 
     circumstance in which, not later than 3 years following the 
     commencement of the activity, the wetlands or waters--
       ``(A) are returned to the condition in existence prior to 
     the commencement of the activity; or
       ``(B) display a condition sufficient to ensure that without 
     further human action the wetlands or waters will return to 
     the condition in existence prior to the commencement of the 
     activity.
       ``(15) Wetlands.--The term `wetlands' means lands that meet 
     the standards for delineation of lands as wetlands set forth 
     in paragraphs (1) and (2) of subsection (g).
       ``(16) Wetlands functions.--The term `wetlands functions' 
     means the roles wetlands serve that are of value, including 
     flood water storage, flood water conveyance, ground water 
     discharge, erosion control, wave attenuation, water quality 
     protection, scenic and aesthetic use, food chain support, 
     fishery support, wetlands plant habitat support, aquatic 
     habitat support, and habitat for wetlands-dependent wildlife 
     support.
       ``(b) Authorized Activities.--
       ``(1) Permit requirement.--No person shall undertake an 
     activity in wetlands or waters of the United States unless 
     the activity is undertaken pursuant to a permit issued by the 
     Secretary, except as provided in paragraph (3).
       ``(2) Issuance of permits.--The Secretary may issue permits 
     authorizing activities in wetlands or waters of the United 
     States in accordance with the requirements of this section.
       ``(3) Activities not requiring permits.--An activity in 
     wetlands or waters of the United States may be undertaken 
     without a permit described in paragraph (2) from the 
     Secretary if the activity is authorized under paragraph (5) 
     or (6) of subsection (e), is exempt under subsection (f), or 
     is otherwise exempt under another provision of this section.
       ``(4) Application.--Any person seeking to undertake an 
     activity in wetlands or waters of the United States shall 
     submit an application to the Secretary identifying the site 
     of the activity. The applicant shall also provide such 
     additional information regarding the proposed activity as may 
     be necessary or appropriate for purposes of determining 
     whether and under what conditions the proposed activity may 
     be permitted to occur.
       ``(c) Wetlands Classification.--
       ``(1) Application.--In submitting an application under 
     subsection (b), any person seeking to undertake an activity 
     in wetlands for which a permit is required under subsection 
     (b) shall request that the Secretary determine, in accordance 
     with paragraph (3), the classification of the wetlands in 
     which the activity is proposed to occur. The applicant shall 
     also provide such information as may be necessary or 
     appropriate for determining the classification of wetlands.
       ``(2) Notice.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     not later than 90 days after the receipt of an application 
     described in paragraph (1) relating to an activity in 
     wetlands, the Secretary shall provide notice to the applicant 
     of the classification of the wetlands that are the subject of 
     the application and shall state in writing the basis for the 
     classification. The classification of the wetlands that are 
     the subject of the application shall be determined by the 
     Secretary in accordance with the requirements for 
     classification of wetlands under paragraphs (3), (4), and 
     (5).
       ``(B) Notice regarding advance classification.--In the case 
     of an application proposing an activity located in wetlands 
     that are the subject of an advance classification under 
     subsection (h), the Secretary shall provide notice to the 
     applicant of the classification within 30 days following the 
     receipt of the application, and shall provide an opportunity 
     for review of the classification under paragraphs (4) and 
     (5).
       ``(3) Classification.--On receipt of an application under 
     this subsection with respect to wetlands, the Secretary 
     shall, in accordance with the standards and procedures 
     established by regulation issued under subsection (i)--
       ``(A) classify as type A wetlands the wetlands that are of 
     critical significance to the long-term conservation of the 
     ecosystem of which the wetlands are a part if--
       ``(i) the wetlands serve critical wetlands functions and 
     values, including the provision of critical habitat for a 
     concentration of avian, aquatic, or wetlands-dependent 
     wildlife;
       ``(ii)(I) the wetlands consist of or are a portion of 10 or 
     more contiguous acres and have an inlet or outlet for relief 
     of water flow; or
       ``(II) the wetlands contain a prairie pothole feature, 
     playa lake, or vernal pool;
       ``(iii) there exists a scarcity within the watershed or 
     aquatic ecosystem of identified ecological functions served 
     by the wetlands such that the use of the wetlands for an 
     activity in wetlands or waters of the United States would 
     seriously jeopardize the availability of the identified 
     functions;
       ``(iv) there is no overriding public interest in the use of 
     the wetlands for purposes other than conservation; and
       ``(v) the nature and scope of the wetlands functions and 
     values of the wetlands are such that minimization and 
     compensation are not feasible means for conserving the 
     wetlands functions and values;
       ``(B) classify as type B wetlands the wetlands that provide 
     habitat for a significant population of avian, aquatic, or 
     wetlands-dependent wildlife, or provide other significant 
     wetlands functions and values, including significant 
     enhancement or protection of water quality in waters of the 
     United States, or significant natural flood control; and
       ``(C) classify as type C wetlands the wetlands that--
       ``(i) serve limited wetlands functions and values;
       ``(ii) serve marginal wetlands functions and values but 
     that exist in such abundance that regulation of activities in 
     the wetlands is not necessary for conserving important 
     wetlands functions and values;
       ``(iii) are prior converted cropland;
       ``(iv) are fastlands; or
       ``(v) are wetlands within industrial complexes or other 
     intensely developed areas that do not serve significant 
     wetlands functions and values as a result of the location.
       ``(4) De novo determination.--Not later than 30 days after 
     receipt of notice of an advance classification by the 
     Secretary under paragraph (2)(B), an applicant may request 
     that the Secretary make a de novo determination of the 
     classification of wetlands that are the subject of the 
     notice. The de novo determination shall be made by the 
     Secretary in consultation with the Director. The Secretary 
     may sustain the advance classification made by the Director. 
     The Secretary may modify the classification if the Secretary 
     determines, on examination of all relevant information 
     submitted by the applicant or otherwise available to the 
     Secretary (including, if appropriate, an on-the-ground 
     examination) that--
       ``(A) the lands involved do not meet the standards for 
     delineating wetlands set forth in paragraph (1) or (2) of 
     subsection (g);
       ``(B) the weight of relevant information does not support 
     the determination of the advance classification with respect 
     to the specific wetlands involved;
       ``(C) the factual basis for the advance classification is 
     no longer valid; or
       ``(D) the limitations on uses of the specific wetlands 
     involved that would be imposed by the Secretary under this 
     section would effectively preclude reasonable economic use of 
     the wetlands.
       ``(5) Appeals.--In the event that the Secretary delegates 
     authority to determine the classification of wetlands under 
     paragraphs (3) and (4), the Secretary shall, by regulation, 
     provide for a right of appeal to the Secretary or the 
     designee of the Secretary of the classification of wetlands 
     under paragraph (3) or the de novo determination of an 
     advance classification in accordance with paragraph (4).
       ``(6) Maximum percent of lands classified as type a 
     wetlands.--No more than 20 percent of any county, parish, or 
     borough shall be classified as type A wetlands. For purposes 
     of this paragraph, a county, parish, or borough includes any 
     land in the county, parish, or borough that is owned by the 
     United States or by a State, including land in a unit of the 
     National Wildlife Refuge System, land in the National Park 
     System, and land in a conservation easement.
       ``(d) Compensation for Landowners.--
       ``(1) Election to seek compensation.--Any person (including 
     a State or political subdivision of a State) who owns an 
     interest in lands that have been classified as type A 
     wetlands by the Secretary under subsection (c)(3)(A) or by 
     the Director under subsection (h) may, not later than 2 years 
     after receipt of actual notice of the classification (or not 
     later than 2 years after a de novo determination of the 
     classification under subsection (c)(4)), notify the Secretary 
     and the Director that the person is electing to seek 
     compensation for the fair market value of the interest in 
     lands at the time of the classification, in accordance with 
     the requirements of this section. The fair market value may 
     include reasonable attorney's fees and shall be calculated 
     without regard to any diminution in value resulting from the 
     applicability of this section.
       ``(2) Negotiations.--Immediately on receipt by the 
     Secretary and the Director of notification of election to 
     seek compensation under paragraph (1), the Director shall 
     enter into good faith negotiations with the owner for 
     purposes of determining the value of the interest in lands 
     that have been classified as type A wetlands. Not later than 
     90 days after receipt of the notification of election by the 
     owner under paragraph (1), the Director shall make an offer 
     of reasonable compensation to the owner.
       ``(3) Action of owner.--
       ``(A) In general.--Not later than 6 years after the date 
     the Director makes an offer of compensation under paragraph 
     (2), the owner shall provide notice that the owner, in the 
     discretion of the owner--
       ``(i) accepts the offer of compensation;
       ``(ii) has filed a claim for determination of the value of 
     the compensation described in paragraph (1) with the United 
     States Court of Federal Claims; or
       ``(iii) advises the Director and the Secretary that the 
     owner elects to retain title to the wetlands and elects not 
     to receive compensation for the taking of land under this 
     subsection.
       ``(B) Failure to provide notice.--Failure to provide notice 
     in accordance with this paragraph shall be deemed an election 
     to retain title to the wetlands and not to receive 
     compensation under this subsection.
       ``(4) Effect of acceptance of offer or filing of claim.--On 
     acceptance of an offer of compensation, or the filing of a 
     claim for determination of the value of compensation, under 
     paragraph (3), the classification as type A wetlands of the 
     wetlands that are the subject of the offer or claim shall be 
     binding on the owner and any successor in interest, and the 
     title to the lands shall pass to the United States. The 
     classification of the lands as type A wetlands under this 
     paragraph shall constitute a taking by the United States of 
     the interests in the lands of the owner and shall be 
     compensable under this subsection.
       ``(5) Extent of taking.--A taking under this subsection 
     shall be deemed to be a taking of surface interests in lands 
     only, with the following exceptions:
       ``(A) Exploration or development not compatible with 
     conservation.--If the Secretary determines that the 
     exploration for or development of oil and gas or mineral 
     interests is not compatible with conservation of the surface 
     interests in lands that have been classified as type A 
     wetlands located above the oil and gas or mineral interests 
     (or located adjacent to the oil and gas or mineral interests 
     where the adjacent lands are necessary to provide reasonable 
     access to the interests), the Secretary may classify the oil 
     and gas or mineral interests as type A wetlands and notify 
     the owner of the interests that the owner may elect to 
     receive compensation for the interests under paragraph (1).
       ``(B) Failure to provide reasonable access.--The failure of 
     the Secretary to provide reasonable access to oil and gas or 
     mineral interests located beneath or adjacent to surface 
     interests of type A wetlands shall be deemed a taking of the 
     oil and gas or mineral interests. The Secretary shall 
     classify the oil and gas or mineral interests as type A 
     wetlands and notify the owner of the interests that the owner 
     may elect to receive compensation for the interests under 
     paragraph (1).
       ``(6) Jurisdiction.--The United States Court of Federal 
     Claims shall have jurisdiction--
       ``(A) to determine the value of interests taken and the 
     fair compensation required under this subsection and the 
     Constitution;
       ``(B) in the case of oil and gas or mineral interests, to 
     require the United States to provide reasonable access in, 
     across, or through lands that may be the subject of a taking 
     under this subsection solely for the purpose of undertaking 
     activity necessary to determine the value of the interests 
     taken; and
       ``(C) to provide other equitable remedies determined to be 
     appropriate.
       ``(7) Execution of judgment.--Any judgment rendered under 
     paragraph (6) may be executed, at the election of the owner. 
     Any owner seeking to execute such a judgment shall execute 
     the judgment not later than 2 years after the date the 
     judgment is rendered. The owner may, prior to the execution 
     of the judgment, enter into an agreement with the United 
     States for satisfaction of the judgment through a crediting 
     of a tax benefit, acquisition of an interest in oil and gas 
     or minerals, an exchange of interests in lands with the 
     United States, or other means of compensation.
       ``(8) Construction.--
       ``(A) Availability of other remedies.--The remedy for a 
     taking of an interest in lands under this subsection shall 
     not be construed to preempt, alter, or limit the availability 
     of other remedies for the taking of the interest in lands 
     under the Constitution or under State law, including the 
     taking of rights to the use of water allocated under State 
     law or the taking of the interest in lands by denial of a 
     permit under this section.
       ``(B) Taking by denial of a permit.--Any award of 
     compensation for the taking of an interest in lands by denial 
     of a permit under this section shall be based on the fair 
     market value of the interest in lands at the time of the 
     taking. The fair market value may include reasonable 
     attorney's fees and shall be calculated without regard to any 
     diminution in value resulting from the applicability of this 
     section.
       ``(9) Management.--Interests in lands acquired by the 
     United States under this subsection shall be managed by the 
     United States Fish and Wildlife Service as a part of the 
     National Wildlife Refuge System unless the Secretary of the 
     Interior, acting through the Director, makes a determination 
     otherwise, or unless otherwise provided by law.
       ``(10) Requirements governing use of water.--No action 
     taken under this subsection shall be construed to alter or 
     supersede requirements governing use of water applicable 
     under State law.
       ``(e) Requirements Applicable to Permitted Activity.--
       ``(1) Issuance or denial of permits.--Following the 
     provision of notice of wetlands classification pursuant to 
     subsection (c) if applicable, and after compliance with the 
     requirements of subsection (d) if applicable, the Secretary 
     may issue or deny a permit for authorization to undertake an 
     activity in wetlands or waters of the United States, in 
     accordance with the requirements of this subsection.
       ``(2) Type a wetlands.--
       ``(A) In general.--The Secretary shall deny a permit 
     authorizing an activity in type A wetlands unless the 
     Secretary determines that--
       ``(i) the activity can be undertaken with minimal 
     alteration or surface disturbance of the wetlands; or
       ``(ii) the proposed use of the land, taking into account 
     all proposed mitigation, will result in overall environmental 
     benefits, including the prevention of wetlands loss or 
     degradation.
       ``(B) Terms and conditions concerning mitigation.--Any 
     permit issued authorizing activities in type A wetlands may 
     contain such terms and conditions concerning mitigation 
     (including terms and conditions applicable under paragraph 
     (3) for type B wetlands) as the Secretary determines to be 
     appropriate to prevent the unacceptable loss or degradation 
     of type A wetlands.
       ``(3) Type b wetlands.--
       ``(A) Considerations.--The Secretary may issue a permit 
     authorizing an activity in type B wetlands subject to such 
     terms and conditions as the Secretary finds are necessary to 
     ensure that the watershed or aquatic ecosystem of which the 
     wetlands are a part does not suffer significant loss or 
     degradation of wetlands functions and values. In determining 
     whether specific terms and conditions are necessary to avoid 
     a significant loss or degradation of wetlands functions and 
     values, the Secretary shall consider the following:
       ``(i) The quality and quantity of ecologically significant 
     functions and values served by the areas to be affected.
       ``(ii) The opportunities to reduce impacts through cost-
     effective design to avoid or minimize use of wetlands.
       ``(iii) The costs of mitigation requirements and the 
     social, recreational, and economic benefits associated with 
     the proposed activity, including local, regional, or national 
     needs for improved or expanded infrastructure.
       ``(iv) The ability of the applicant for the permit to 
     mitigate wetlands loss or degradation as measured by wetlands 
     functions and values.
       ``(v) The environmental benefit, measured by wetlands 
     functions and values, that may occur through mitigation 
     efforts, including restoration, preservation, enhancement, or 
     creation of wetlands functions and values.
       ``(vi) The marginal impact of the proposed activity on the 
     watershed or aquatic ecosystem of which the wetlands are a 
     part.
       ``(B) Alternative site analyses and project purposes.--In 
     considering applications for permits with respect to 
     activities on type B wetlands, the Secretary may require 
     alternative site analyses for individual permit applications 
     involving the alteration or permanent surface disturbance of 
     10 or more contiguous acres of wetlands. In the case of such 
     an application, there shall be a rebuttable presumption that 
     the project purpose for the activities as defined by the 
     applicant shall be binding on the Secretary. In the case of 
     such an application, the definition of project purpose for 
     the activities sponsored by a public agency shall be binding 
     on the Secretary, subject to the authority of the Secretary 
     to impose mitigation requirements to minimize impacts on 
     wetlands functions and values, including cost-effective 
     redesign of the project to avoid wetlands.
       ``(C) Requirements for mitigation.--Except as otherwise 
     provided in this section, requirements for mitigation shall 
     be imposed if the Secretary finds that activities undertaken 
     under this section will result in the loss or degradation of 
     type B wetlands functions and values where the loss or 
     degradation is not an incidental or a temporary impact. When 
     determining the mitigation requirements in any specific case, 
     the Secretary shall take into consideration the 
     characteristics of the wetlands affected, the character of 
     the impact on ecological functions, whether any adverse 
     effects on wetlands are of a permanent or temporary nature, 
     and the cost-effectiveness of the mitigation and shall seek 
     to minimize the costs of the mitigation.
       ``(D) Regulations governing requirements for mitigation.--
     The Secretary shall issue regulations under subsection (i) 
     governing requirements for compensatory mitigation, for 
     activities occurring in type B wetlands, that allow for--
       ``(i) minimization of impacts through project design for 
     the activities, including avoidance of specific wetlands 
     impacts where economically practicable and consistent with 
     the project purpose, provisions for compensatory mitigation, 
     if any, and other terms and conditions necessary and 
     appropriate in the public interest;
       ``(ii) preservation or donation of type A wetlands or type 
     B wetlands (if title has not been acquired by the United 
     States and no compensation for the taking of the wetlands has 
     been provided) as mitigation for activities that result in 
     loss or degradation of wetlands;
       ``(iii) enhancement or restoration of lost or degraded 
     wetlands as compensation for wetlands lost or degraded 
     through permitted activity;
       ``(iv) compensation through contribution to a mitigation 
     banking program established for a State pursuant to 
     subparagraph (F);
       ``(v) offsite compensatory mitigation with respect to an 
     activity in a wetlands, if the mitigation contributes to the 
     restoration, enhancement, or creation of significant wetlands 
     functions and values on a watershed or ecosystem-wide basis 
     and is balanced with the effects that an activity proposed to 
     be carried out under a permit will have on the specific site 
     (except that offsite compensatory mitigation, if any, shall 
     be required only in the State in which the proposed activity 
     is to occur, and shall, to the extent practicable, be within 
     the watershed or aquatic ecosystem within which the proposed 
     activity is to occur, unless otherwise consistent with a 
     State wetlands management plan);
       ``(vi) contribution of in-kind value acceptable to the 
     Secretary and otherwise authorized by law;
       ``(vii) in areas subject to wetlands loss or degradation, 
     construction of coastal protection and enhancement projects;
       ``(viii) contribution of resources of more than 1 permit 
     recipient toward a single mitigation project; and
       ``(ix) other mitigation measures determined by the 
     Secretary to be appropriate, in the public interest, and 
     consistent with the requirements and purposes of this Act.
       ``(E) Compensatory mitigation.--Notwithstanding 
     subparagraph (C), the Secretary may determine not to impose 
     requirements for compensatory mitigation, with respect to an 
     activity in a wetlands, if the Secretary finds that--
       ``(i) the adverse impacts of an activity proposed to be 
     carried out under a permit are limited;
       ``(ii) the failure to impose compensatory mitigation 
     requirements is compatible with maintaining wetlands 
     functions and values and no practicable and reasonable means 
     of compensatory mitigation is available;
       ``(iii) there is an abundance of similar significant 
     wetlands functions and values in or near the area in which 
     the proposed activity is to occur that will continue to serve 
     the functions and values lost or degraded as a result of the 
     activity, taking into account the impacts of the activity and 
     the cumulative impacts of similar activity in the area;
       ``(iv) the temporary character of the impacts and the use 
     of minimization techniques make compensatory mitigation 
     unnecessary to protect significant wetlands functions and 
     values; or
       ``(v) a waiver from requirements for compensatory 
     mitigation is necessary to prevent special hardship.
       ``(F) Mitigation banking program.--
       ``(i) Establishment.--The Secretary, in consultation with 
     the Director, shall establish a mitigation banking program in 
     each State. The mitigation banking program shall be developed 
     in consultation with the Director and the Governor of the 
     State in which the wetlands covered by the mitigation banking 
     program is located. After approval of the program by the 
     Secretary, the Secretary may require contributions to the 
     program as a means for ensuring compensation for loss and 
     degradation of wetlands functions and values in the State in 
     accordance with the requirements of this paragraph.
       ``(ii) Primary objective.--The primary objective of the 
     programs shall be to provide for the restoration, 
     enhancement, or, where feasible, creation of ecologically 
     significant wetlands on an ecosystem basis.
       ``(iii) Functions and values.--Each program described in 
     clause (i) shall--

       ``(I) provide a preference for large-scale projects for 
     conservation, enhancement, or restoration of wetlands, unless 
     the Secretary (or the Governor of a State that is 
     administering a State permit program under subsection (l)) 
     determines that a smaller project will contribute 
     substantially to the conservation, enhancement, or 
     restoration of ecologically significant wetlands functions 
     and values or that the restoration of indigenous wetlands 
     resources cannot be accomplished through large-scale 
     projects;
       ``(II) authorize mitigation banks sponsored by private 
     entities or public entities;

       ``(III) provide for the crediting to a State or privately 
     maintained mitigation bank of contributions in land or cash, 
     or in-kind contributions, so that persons unable to sponsor 
     specific mitigation projects can contribute to the mitigation 
     bank;
       ``(IV) have sufficient requirements to ensure completion, 
     maintenance, and supervision of wetlands projects for at 
     least a 25-year period, including requirements for bonds or 
     other evidence of financial responsibility;
       ``(V) authorize the imposition of bonding requirements on 
     private entities operating the banks;
       ``(VI) limit activities in or on wetlands that are part of 
     a mitigation bank to uses that are consistent with 
     maintaining or gaining significant wetlands functions and 
     values; and
       ``(VII) authorize a credit to be provided on an acre-for-
     acre or value-for-value basis for type A and B wetlands that 
     are permanently protected in national conservation units in 
     any State that has converted less than 10 percent of the 
     historic wetlands base of the State to other uses.

       ``(4) Action on applications.--
       ``(A) Timing.--In the case of any application for 
     authorization to undertake activities in wetlands or waters 
     of the United States that are not type C wetlands, final 
     action by the Secretary shall occur not later than 180 days 
     after the date the application is filed, unless--
       ``(i) the Secretary and the applicant agree that the final 
     action shall occur within a shorter or longer period of time;
       ``(ii) the Secretary determines that an additional, 
     specified period of time is necessary to permit the Secretary 
     to comply with other applicable Federal law; or
       ``(iii) the Secretary, not later than 15 days after the 
     date the application is received, notifies the applicant that 
     the application does not contain all information necessary to 
     allow the Secretary to consider the application and 
     identifies any necessary additional information, in which 
     case the provisions of subparagraph (B) shall apply.
       ``(B) Additional information.--On the receipt of a request 
     for additional information under subparagraph (A)(iii), the 
     applicant shall supply the additional information and shall 
     provide notice to the Secretary that the application contains 
     all requested additional information and is therefore 
     complete. The Secretary may--
       ``(i) not later than 30 days after the receipt of notice 
     from the applicant that the application is complete, 
     determine that the application does not contain all requested 
     additional information and, on the basis of the 
     determination, deny the application without prejudice with 
     respect to resubmission; or
       ``(ii) not later than 180 days after the receipt of notice 
     from the applicant that the application is complete, review 
     the application and take final action on the application.
       ``(C) Failure to act on application.--If the Secretary 
     fails to take final action on an application as provided in 
     subparagraph (B)(ii), on the 180th day described in such 
     subparagraph a permit shall be presumed to be granted 
     authorizing the activities proposed in the application under 
     such terms and conditions as are stated in the completed 
     application.
       ``(D) Appeals.--Not later than 60 days after the date of a 
     decision of the Secretary denying a permit requested in an 
     application under this paragraph, the applicant may appeal 
     the decision to the Secretary of Defense or the designee of 
     the Secretary of Defense. On such an appeal, the Secretary of 
     Defense or the designee shall uphold the decision of the 
     Secretary of the Army if the Secretary of the Army proves by 
     clear and convincing evidence that granting the permit 
     requested in the application would be inconsistent with this 
     section.
       ``(5) Type c wetlands.--
       ``(A) Permit not required.--Activities in wetlands that 
     have been classified as type C wetlands under subsection 
     (c)(3)(C) by the Secretary or under subsection (h) by the 
     Director may be undertaken without a permit referred to in 
     subsection (b).
       ``(B) Reporting requirements.--The Secretary may establish 
     requirements for reporting activities undertaken in type C 
     wetlands.
       ``(C) Alternative site analysis and mitigation not 
     required.--No requirements for alternative site analyses or 
     mitigation of environmental impacts shall apply for 
     activities undertaken in type C wetlands.
       ``(6) National, regional, or statewide general permits.--
       ``(A) In general.--The Secretary may, in accordance with a 
     regulation issued under subsection (i), issue general permits 
     on a national, regional, or statewide basis for any category 
     of activities in wetlands or waters of the United States for 
     which a permit would otherwise be required under subsection 
     (b), if the Secretary determines that the activities in the 
     category are similar in nature and that the activities, 
     whether performed separately or cumulatively, will not result 
     in a significant loss or degradation of ecologically 
     significant wetlands functions and values or of ecologically 
     significant waters of the United States. Permits issued under 
     this paragraph shall include procedures for expedited review 
     of eligibility for the permits (if the review is required) 
     and may include requirements for reporting and mitigation. 
     The Secretary may impose requirements for compensatory 
     mitigation for the permits if necessary to avoid or minimize 
     the significant loss or degradation of significant wetlands 
     functions and values where the loss or degradation is not an 
     incidental or a temporary impact.
       ``(B) Existing general permits.--General permits issued on 
     a national or regional basis for a activities in the wetlands 
     or waters of the United States and in effect on the date of 
     enactment of the Comprehensive Wetlands Conservation and 
     Management Act of 1994 shall remain in effect until otherwise 
     modified by the Secretary.
       ``(f) Activities Not Requiring Permit.--
       ``(1) Activities.--Except as provided in paragraph (3), 
     activities in wetlands or waters of the United States shall 
     be exempt from the requirements of this section and shall not 
     be prohibited by or otherwise subject to regulation under 
     this section or section 301 or 402 (except to the extent such 
     sections relate to compliance with effluent standards or 
     prohibitions under section 307), if the activities--
       ``(A) result from normal farming, silviculture, 
     aquaculture, or ranching activities and practices, such as 
     plowing, seeding, cultivating, minor drainage, burning of 
     vegetation in connection with the activities and practices, 
     harvesting for the production of food, fiber, or forest 
     products, or upland soil and water conservation practices;
       ``(B) are for the purpose of maintenance, including 
     emergency reconstruction of recently damaged parts of 
     currently (as of the date of the maintenance) serviceable 
     structures such as dikes, dams, levees, water control 
     structures, groins, riprap, breakwaters, causeways, and 
     bridge abutments or approaches, and transportation 
     structures;
       ``(C) are for the purpose of construction or maintenance of 
     farm, stock, or aquaculture ponds or irrigation canals and 
     ditches, or the maintenance of drainage ditches;
       ``(D) are for the purpose of construction of temporary 
     sedimentation basins on a construction site that does not 
     include placement of fill material into navigable waters;
       ``(E) are for the purpose of construction or maintenance of 
     farm roads or forest roads, or temporary roads for moving 
     mining equipment, if the roads are constructed and 
     maintained, in accordance with best management practices, to 
     ensure that flow and circulation patterns and chemical and 
     biological characteristics of the waters involved are not 
     impaired, that the reach of the waters is not reduced, and 
     that any adverse effect on the aquatic environment will be 
     otherwise minimized;
       ``(F) are undertaken on farmed wetlands, except that any 
     change in use of the wetlands for the purpose of undertaking 
     activities that are not exempt from regulation under this 
     subsection shall be subject to this section;
       ``(G) result from any activity with respect to which a 
     State has an approved program for which an application was 
     submitted under section 208(b)(4) that meets the requirements 
     of subparagraphs (B) and (C) of such section;
       ``(H) are consistent with a State or local land management 
     plan submitted to the Secretary and approved pursuant to 
     paragraph (2);
       ``(I) are undertaken in connection with a marsh management 
     and conservation program in a coastal parish in Louisiana if 
     the program has been approved by the Governor of the State or 
     the designee of the Governor;
       ``(J) are undertaken on lands or involve activities within 
     a coastal zone of a State that are excluded from regulation 
     under the State coastal zone management program approved 
     under the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 
     et seq.);
       ``(K) are undertaken in incidentally created wetlands, 
     unless the incidentally created wetlands have exhibited 
     wetlands functions and values for more than 5 years (in which 
     case activities undertaken in the wetlands shall be subject 
     to the requirements of this section);
       ``(L) are part of expanding an ongoing farming operation 
     involving the water dependent, obligate crop, Vaccinium 
     macrocarpin, if--
       ``(i) the expansion does not occur in type A wetlands;
       ``(ii) the expansion does not result in the conversion of 
     more than 10 acres of wetlands or waters of the United States 
     per operator per year; and
       ``(iii) the converted wetlands or waters of the United 
     States (other than in locations where dikes and other 
     necessary facilities are placed) remain as wetlands or other 
     waters of the United States; or
       ``(M) result from aggregate or clay mining activities in 
     wetlands or waters of the United States conducted pursuant to 
     a State or Federal permit that requires the reclamation of 
     the wetlands or waters of the United States, if the 
     reclamation meets conditions for reclamation, including 
     conditions that--
       ``(i) the reclamation shall be completed within 5 years of 
     the commencement of activities in the wetlands or waters; and
       ``(ii) on completion of the reclamation, the wetlands or 
     waters shall support functions (including wetlands functions, 
     as appropriate) and values equivalent to the functions and 
     values supported by the wetlands or waters at the time of 
     commencement of the activities.
       ``(2) State and local land management plans.--
       ``(A) Development and submission of plan.--Any State or 
     political subdivision of a State acting pursuant to State 
     authorization may develop a land management plan with respect 
     to lands that include wetlands. A State or local government 
     agency, acting on behalf of the State or political 
     subdivision, may submit the plan to the Secretary for review 
     and approval. The Secretary shall, not later than 60 days 
     after receipt of the plan, notify a designated State or local 
     official in writing of approval or disapproval of the plan.
       ``(B) Approval.--The Secretary shall approve any plan 
     described in subparagraph (A) that is consistent with the 
     objectives of this section. No person shall be entitled to 
     judicial review of the decision of the Secretary to approve 
     or disapprove a land management plan under this paragraph.
       ``(C) Construction.--Nothing in this paragraph shall be 
     construed to alter, limit, or supersede the authority of a 
     State or political subdivision of a State to establish a land 
     management plan for purposes other than the objectives of 
     this subsection.
       ``(g) Standards for Delineating Wetlands.--
       ``(1) In general.--
       ``(A) Establishment of standards.--The Secretary shall 
     establish standards, by regulation issued under subsection 
     (i), that shall govern the delineation of lands as wetlands 
     for purposes of this section.
       ``(B) Consultation.--Before establishing standards as 
     described in subparagraph (A), the Secretary shall consult 
     with the heads of other departments and agencies of the 
     United States, including the Director, the Administrator of 
     the Environmental Protection Agency, and the Chief of the 
     Soil Conservation Service of the Department of Agriculture.
       ``(C) Standards binding on federal agencies.--The standards 
     established as described in subparagraph (A) shall bind all 
     Federal agencies in connection with the administration or 
     implementation of this section.
       ``(2) Delineation of wetlands.--
       ``(A) In general.--The standards established as described 
     in paragraph (1)(A) shall be issued in accordance with this 
     paragraph, and any decision of the Secretary, the Director, 
     or any other Federal officer or employee made in connection 
     with the administration of the standards, shall be made in 
     accordance with this paragraph.
       ``(B) Requirements for delineation of wetlands.--For 
     purposes of this section, lands shall be delineated as 
     wetlands only if--
       ``(i) the lands are wetlands, as defined in section 502;
       ``(ii) the Secretary finds clear evidence of wetlands 
     hydrology, hydrophytic vegetation, and hydric soil during the 
     period in which the delineation (to be conducted during the 
     growing season unless otherwise requested by the applicant) 
     is made;
       ``(iii) the delineation does not result in the 
     classification of vegetation as hydrophytic if the vegetation 
     is equally adapted to dry or wet soil conditions or is more 
     typically adapted to dry soil conditions than to wet soil 
     conditions;
       ``(iv) the Secretary finds some obligate wetlands 
     vegetation present during the period of delineation (except 
     that if the vegetation is removed for the purpose of evading 
     a requirement of this section, this clause shall not apply);
       ``(v) the delineation does not result in the conclusion 
     that conditions of wetlands hydrology are present unless the 
     Secretary finds water present at the surface of the lands for 
     at least 21 consecutive days during the growing season (or 
     period requested by the applicant) in which such delineation 
     is made and for 21 consecutive days in the growing seasons in 
     a majority of the years for which records are available; and
       ``(vi) the lands were not temporarily or incidentally 
     created as a result of adjacent development activity.
       ``(C) Normal circumstances.--For the purpose of delineating 
     wetlands under this section, a normal circumstance shall be 
     determined on the basis of the factual circumstance in 
     existence on the date a classification is made under 
     subsection (h), or on the date of application under 
     subsection (b), whichever is applicable, if the circumstance 
     has not been altered by an activity prohibited under this 
     section.
       ``(h) United States Fish and Wildlife Service Wetlands 
     Identification and Classification Project.--
       ``(1) In general.--The Director, after receiving the 
     concurrence of the Chief of the Soil Conservation Service, 
     shall conduct a project to identify and classify wetlands in 
     the United States. The Director shall complete the project 
     not later than 10 years after the date of enactment of the 
     Comprehensive Wetlands Conservation and Management Act of 
     1994.
       ``(2) Standards for classifying wetlands.--In conducting 
     the project, the Director shall identify and classify 
     wetlands in accordance with the standards for delineation of 
     wetlands established by the Secretary as described in 
     paragraphs (1) and (2) of subsection (g).
       ``(3) Notice and hearing.--Before completion of 
     identification and classification of wetlands under paragraph 
     (1), the Director shall provide notice and an opportunity for 
     a public hearing in each county, parish, or borough that 
     includes lands subject to identification and classification.
       ``(4) Publication.--Promptly after completion of 
     identification and classification of wetlands under paragraph 
     (1), the Director shall publish information concerning the 
     identification and classification in the Federal Register and 
     in publications of wide circulation and take other steps 
     reasonably necessary to ensure that information concerning 
     the identification and classification is made available to 
     the public.
       ``(5) Recording.--The Director shall, to the fullest extent 
     practicable, record any classification of lands as wetlands 
     under paragraph (1) on the property records in the county, 
     parish, or borough in which the wetlands are located.
       ``(6) Report to congress.--Not later than 2 years after the 
     date of enactment of the Comprehensive Wetlands Conservation 
     and Management Act of 1994, and annually thereafter, the 
     Secretary of the Interior shall prepare and submit to the 
     appropriate committees of Congress a report on implementation 
     of the project conducted under this subsection.
       ``(i) Administrative Provisions.--
       ``(1) Promulgation of final regulations.--Not later than 1 
     year after the date of enactment of the Comprehensive 
     Wetlands Conservation and Management Act of 1994, the 
     Secretary shall, after notice and opportunity for public 
     comment, issue 1 or more final regulations for the issuance 
     of permits under this section. The regulations shall--
       ``(A) establish standards and procedures for--
       ``(i) the classification and delineation of wetlands, and 
     procedures for administrative review of the classification or 
     delineation of wetlands;
       ``(ii) the review of State or local land management plans 
     and State programs for the regulation of wetlands and waters 
     of the United States;
       ``(iii) the issuance of general permits on a national, 
     regional, or statewide basis under this section;
       ``(iv) the issuance of individual permit applications under 
     this section;
       ``(v) enforcement of this section;
       ``(vi) administrative appeal of an action by the Secretary 
     denying an application for a permit referred to in subsection 
     (b), or issuing a permit referred to in subsection (b) 
     subject to 1 or more conditions; and
       ``(vii) any other related area that the Secretary 
     determines necessary or appropriate to implement the 
     requirements of this section; and
       ``(B) establish requirements governing the establishment of 
     a mitigation bank.
       ``(2) Judicial review of a final regulation.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     any judicial review of a final regulation issued pursuant to 
     paragraph (1), and any denial by the Secretary of a petition 
     for the issuance or repeal of a regulation under paragraph 
     (1), shall be conducted in accordance with sections 701 
     through 706 of title 5, United States Code.
       ``(B) Jurisdiction of court.--A petition for review of the 
     action of the Secretary in issuing a regulation under 
     paragraph (1), or denying a petition for the issuance or 
     repeal of a regulation under paragraph (1), may be filed only 
     in the United States Court of Appeals for the District of 
     Columbia. The petition for review may only be filed--
       ``(i) not later than 90 days after the date of issuance or 
     denial; or
       ``(ii) if the petition for review is based solely on 
     grounds arising after the date of issuance or denial, not 
     later than 90 days after the date the grounds arise.

     Action by the Secretary with respect to which review could 
     have been obtained under this paragraph shall not be subject 
     to judicial review in civil or criminal proceedings for 
     enforcement.
       ``(3) Interim regulations.--
       ``(A) Promulgation of interim regulations.--Not later than 
     90 days after the date of enactment of the Comprehensive 
     Wetlands Conservation and Management Act of 1994, the 
     Secretary shall issue interim regulations consistent with 
     paragraph (1). The interim regulations shall become effective 
     on the date of issuance. Notice of the interim regulations 
     shall be published in the Federal Register. Except as 
     provided in subparagraph (B), the interim regulations shall 
     apply until the issuance of final regulations under paragraph 
     (1).
       ``(B) Waiver of interim regulations.--The Secretary shall 
     provide a procedure for waiving a provision of an interim 
     regulation--
       ``(i) in a case in which the applicant demonstrates special 
     hardship, inequity, or unfair distribution of burdens; or
       ``(ii) in a case in which the Secretary determines that a 
     waiver under this subparagraph would advance the purposes of 
     this section.
       ``(4) Authority to carry out regulations.--Except as 
     otherwise expressly provided in this section, the Secretary 
     shall be responsible for carrying out this subsection. The 
     Secretary or any other Federal officer or employee in whom 
     any function under this section is vested or to whom any such 
     function is delegated may perform any and all acts (including 
     appropriate enforcement activity), and may prescribe, issue, 
     amend, or rescind any regulation or order the officer or 
     employee may find necessary or appropriate to prescribe, 
     issue, amend, or rescind under this section, subject to the 
     requirements of this section.
       ``(j) Violations.--
       ``(1) Enforcement by secretary.--Whenever the Secretary 
     finds, on the basis of reliable and substantial information 
     and after reasonable inquiry, that a person is or may be in 
     violation of this section or a condition or limitation set 
     forth in a permit issued by the Secretary under subsection 
     (b) the Secretary shall--
       ``(A) issue an order requiring the person to comply with 
     this section or with the condition or limitation in the 
     permit; or
       ``(B) bring a civil action in accordance with paragraph 
     (3).
       ``(2) Orders issued by secretary.--
       ``(A) Copy of order sent to states.--A copy of each order 
     issued under paragraph (1) shall be sent immediately by the 
     Secretary to the Governor of the State in which the violation 
     occurred and the Governor of any other affected State.
       ``(B) Service.--Except as provided in subparagraph (C), any 
     order issued under paragraph (1) shall--
       ``(i) be issued by personal service to the appropriate 
     person or corporate officer;
       ``(ii) state with reasonable specificity the nature of the 
     asserted violation; and
       ``(iii) specify a period for compliance, not to exceed 30 
     days, that the Secretary determines is reasonable (taking 
     into account the seriousness of the asserted violation and 
     any good faith efforts to comply with applicable 
     requirements).
       ``(C) Time limit on order.--
       ``(i) In general.--Not later than 150 days after the date 
     of service under subparagraph (B), the Secretary shall--

       ``(I) take such action as is necessary for the prosecution 
     of a civil action in accordance with paragraph (3); or
       ``(II) rescind the order issued under paragraph (1) and be 
     estopped from any further enforcement proceeding for the same 
     asserted violation.

       ``(ii) Disputed orders.--If a person receiving service 
     under subparagraph (B) disputes the finding described in 
     paragraph (1) and notifies the Secretary in writing not later 
     than 90 days after the service, the Secretary shall, not 
     later than 60 days after receiving the notification of the 
     dispute--

       ``(I) take such action as is necessary for the prosecution 
     of a civil action in accordance with paragraph (3); or
       ``(II) rescind the order and be estopped from any further 
     enforcement proceeding for the same asserted violation.

       ``(3) Civil actions.--The Secretary may commence a civil 
     action for appropriate relief, including a permanent or 
     temporary injunction, for any violation for which the 
     Secretary may issue an order under paragraph (1). An action 
     commenced under this paragraph may be brought in the district 
     court of the United States for the district in which the 
     defendant is located or resides or is doing business, and the 
     court shall have jurisdiction to restrain the violation and 
     to require compliance. Notice of the commencement of the 
     action shall be given immediately to the Governor of any 
     affected State.
       ``(4) Penalties.--Any person who violates this section or a 
     condition or limitation in a permit issued by the Secretary 
     under subsection (b), or who violates an order issued by the 
     Secretary under paragraph (1), shall be subject to a civil 
     penalty not to exceed $25,000 per day for each violation 
     involved, commencing on the day following expiration of the 
     period allowed for compliance. The amount of the penalty 
     imposed per day shall be in proportion to the scale or scope 
     of the project that results in the violation. In determining 
     the amount of a civil penalty under this paragraph, the 
     Secretary or the Court, as appropriate, shall consider the 
     seriousness of the violation, the economic benefit (if any) 
     resulting from the violation, any history of a previous 
     violation, any good-faith effort to comply with applicable 
     requirements, the economic impact of the penalty on the 
     violator, and any other matter that justice may require.
       ``(k) State Authority To Control Discharges.--Nothing in 
     this section shall affect or impair the right of a State or 
     interstate agency to control activity, including activity of 
     a Federal agency, in waters of the United States within the 
     jurisdiction of the State or interstate agency. Each Federal 
     agency shall comply with a State or interstate requirement, 
     whether substantive or procedural, to the same extent that a 
     person is subject to the requirement. This section shall not 
     affect or impair the authority of the Secretary to maintain 
     navigation.
       ``(l) State Regulation of Wetlands and Waters.--
       ``(1) Application for state regulation.--The Governor of a 
     State desiring to administer an individual and general permit 
     program for an activity in wetlands or waters of the United 
     States within the jurisdiction of the State shall submit to 
     the Secretary--
       ``(A) a description of the program proposed to be 
     established and administered under State law; and
       ``(B) a statement from the chief legal officer of the State 
     that the State law provides adequate authority to carry out 
     the described program.
       ``(2) Determination by secretary.--Not later than 1 year 
     after the date of receipt by the Secretary of a program 
     description and statement under paragraph (1), the Secretary 
     shall determine whether the State has the authority to--
       ``(A) issue permits that--
       ``(i) apply, and ensure compliance with, each applicable 
     requirement of this section; and
       ``(ii) can be terminated or modified for cause, including--

       ``(I) a violation of any condition or limitation in the 
     permit;
       ``(II) evidence that the permit was obtained by 
     misrepresentation or failure to disclose fully all relevant 
     facts; or
       ``(III) a change in any condition that requires either a 
     temporary or permanent reduction or elimination of the 
     permitted activity;

       ``(B)(i) issue permits that apply, and ensure compliance 
     with, all applicable requirements of section 308; or
       ``(ii) inspect, monitor, enter, and require reports to at 
     least the same extent as required under section 308;
       ``(C) ensure that the public, and any other State in which 
     the wetlands or waters of the United States may be affected 
     by the issuance of a permit under this subsection, receive 
     notice of each application for a permit under this subsection 
     and provide an opportunity for a public hearing before a 
     ruling on the application;
       ``(D) ensure that the Secretary receives notice of each 
     application for a permit under this subsection and, prior to 
     any action by the State, ensure that both the applicant for 
     the permit and the State receive from the Secretary 
     information with respect to any advance classification 
     applicable to wetlands or waters of the United States that 
     are the subject of the application;
       ``(E) ensure that each State (other than the State seeking 
     to issue permits under this subsection) in which the wetlands 
     or waters of the United States may be affected by the 
     issuance of a permit under this subsection may submit a 
     written recommendation to the permitting State with respect 
     to any permit application and, if any part of the written 
     recommendation is not accepted by the permitting State, 
     ensure that the permitting State will notify the affected 
     State (and the Secretary) in writing of the failure by the 
     permitting State to accept the recommendation together with 
     the reason for the failure by the permitting State to accept 
     the recommendation of the affected State; and
       ``(F) abate a violation of the permit or the permit 
     program, through a civil or criminal penalty or other means 
     of enforcement.
       ``(3) Approval or modification of program.--
       ``(A) Approval of program.--If, with respect to a proposed 
     State program for which a description and statement were 
     submitted under paragraph (1), the Secretary determines that 
     the State has the authority set forth in paragraph (2), the 
     Secretary shall approve the program, notify the State, and 
     suspend the issuance of permits under subsection (b) for each 
     activity with respect to which a permit may be issued 
     pursuant to the State program.
       ``(B) Modification of program.--If, with respect to a 
     proposed State program for which a description and statement 
     were submitted under paragraph (1), the Secretary determines 
     that the State does not have the authority set forth in 
     paragraph (2), the Secretary shall notify the State and 
     provide a description of any revision or modification 
     necessary so that the State may resubmit the program for 
     another determination by the Secretary under this subsection.
       ``(4) Failure of secretary to make determination.--If, with 
     respect to a proposed State program for which a description 
     and statement were submitted under paragraph (1), the 
     Secretary fails to make a determination within 1 year after 
     the date of receipt of the description and statement, the 
     proposed program shall be deemed to be approved pursuant to 
     paragraph (3)(A) on the day that is 1 year after such date, 
     the Secretary shall notify the State of the approval, and the 
     Secretary shall suspend the issuance of permits under 
     subsection (b) for each activity with respect to which a 
     permit may be issued pursuant to the State program.
       ``(5) Transfer of applications.--After approval of a State 
     permit program under this subsection, the Secretary shall 
     transfer to the State for appropriate action any application 
     for a permit pending before the Secretary for an activity 
     with respect to which a permit may be issued pursuant to the 
     State program.
       ``(6) Suspension of enforcement.--If the Secretary is 
     notified that a State with a permit program approved under 
     this subsection intends to administer and enforce the terms 
     and conditions of a general permit issued by the Secretary 
     under subsection (e)(6), the Secretary shall, with respect to 
     each activity in the State to which the general permit 
     applies, suspend the administration and enforcement of the 
     general permit.
       ``(7) Corrective action.--If the Secretary determines after 
     a public hearing that a State administering a program 
     approved under this subsection is not administering the 
     program in accordance with this section, the Secretary shall 
     notify the State and, if appropriate corrective action is not 
     taken within a reasonable time (not to exceed 90 days after 
     the date of the receipt of the notification), the Secretary 
     shall--
       ``(A) withdraw approval of the program until the Secretary 
     determines appropriate corrective action has been taken; and
       ``(B) resume the program for the issuance of permits under 
     subsections (b) and (e)(6) for all activities with respect to 
     which the State was issuing permits, until such time as the 
     Secretary makes the determination described in paragraph (2) 
     and approves the State program again.
       ``(8) Regulation by an interstate agency.--For purposes of 
     this subsection:
       ``(A) Governor.--The term ``Governor'' includes the head of 
     an interstate agency.
       ``(B) State.--The term ``State'' includes an interstate 
     agency.
       ``(C) State law.--The term ``State law'' includes an 
     interstate compact.
       ``(m) Copies Available to Public.--A copy of each permit 
     application submitted, and each permit issued, under this 
     section shall be available to the public. Each permit 
     application or portion of a permit application shall also be 
     available on request for the purpose of reproduction.
       ``(n) Compliance With Permit Satisfies Requirements.--
     Compliance with a permit issued pursuant to this section, 
     including carrying out an activity pursuant to a general 
     permit issued under this section, shall be deemed, for 
     purposes of sections 309 and 505, to be compliance with 
     sections 301, 307, and 403.
       ``(o) Effective Date for Permit Provisions.--After the 90th 
     day after the date of enactment of the Comprehensive Wetlands 
     Conservation and Management Act of 1994, no permit for an 
     activity in wetlands or waters of the United States may be 
     issued except in accordance with this section. Any permit for 
     an activity in wetlands or waters of the United States issued 
     prior to the 90th day shall be deemed to be a permit under 
     this section and shall continue in force and effect for the 
     term of the permit unless revoked, modified, or suspended in 
     accordance with this section. An application for a permit 
     pending under this section on the 90th day shall be deemed to 
     be an application for a permit under this section.
       ``(p) Limit on Fees.--Any fee charged in connection with--
       ``(1) the delineation or classification of wetlands;
       ``(2) an application for a permit authorizing an activity 
     in wetlands or waters of the United States; or
       ``(3) any other action taken in compliance with the 
     requirements of this section (other than a penalty for a 
     violation under subsection (j));

     shall not exceed the amount of the fee in effect on January 
     1, 1990.''.

     SEC. 4. DEFINITIONS.

       Section 502 of the Federal Water Pollution Control Act (33 
     U.S.C. 1362) is amended by adding at the end the following 
     new paragraph:
       ``(21) Wetlands.--The term `wetlands' means lands, such as 
     swamps, marshes, bogs, and similar areas, that have a 
     predominance of hydric soils and that are inundated by 
     surface water at a frequency and duration sufficient to 
     support, and that under normal circumstances support, a 
     prevalence of vegetation typically adapted for life in 
     saturated soil conditions.''.

     SEC. 5. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Section 119(c)(2)(E) of the Federal Water Pollution 
     Control Act (33 U.S.C. 1269(c)(2)(E)) is amended by striking 
     ``wetland'' and inserting ``wetlands''.
       (b) Section 208(b)(4)(B)(iii) of the Federal Water 
     Pollution Control Act (33 U.S.C. 1288(b)(4)(B)(iii)) is 
     amended by striking ``the guidelines established under 
     section 404(b)(1), and'' and inserting ``section 404, and 
     with the guidelines established under''.
       (c) Section 309 of such Act (33 U.S.C. 1319) is amended--
       (1) in subsection (a)--
       (A) in the first sentence of paragraph (1), by striking 
     ``or 404''; and
       (B) in paragraph (3), by striking ``or in a permit issued 
     under section 404 of this Act by a State'';
       (2) in subsection (c)--
       (A) in paragraph (1)(A), by striking ``or in a permit 
     issued under section 404 of this Act by the Secretary of the 
     Army or by a State'';
       (B) in paragraph (2)(A), by striking ``or in a permit 
     issued under section 404 of this Act by the Secretary of the 
     Army or by a State''; and
       (C) in the first sentence of paragraph (3)(A), by striking 
     ``or in a permit issued under section 404 of this Act by the 
     Secretary of the Army or by a State,'';
       (3) in the first sentence of subsection (d), by striking 
     ``or in a permit issued under section 404 of this Act by a 
     State,,''; and
       (4) in subsection (g)--
       (A) by striking paragraph (1) and inserting the following 
     new paragraph:
       ``(1) Violations.--If the Administrator finds, on the basis 
     of any information available, that a person has violated 
     section 301, 302, 306, 307, 308, 318, or 405, or has violated 
     any permit condition or limitation implementing any of such 
     sections in a permit issued under section 402 by the 
     Administrator or by a State, the Administrator may, after 
     consultation with the State in which the violation occurred, 
     assess a class I civil penalty or a class II civil penalty 
     under this subsection.'';
       (B) in the third sentence of paragraph (2)(B), by striking 
     ``and the Secretary'';
       (C) in paragraph (6)(A)(iii), by striking ``, the 
     Secretary,'';
       (D) by striking ``or Secretary, as the case may be,'' and 
     ``or the Secretary, as the case may be,'' each place they 
     appear; and
       (E) by striking ``or Secretary'', ``or the Secretary'', and 
     ``or Secretary's'' each place they appear.

     SEC. 6. EFFECTIVE DATE.

       The amendments made by this Act shall become effective 90 
     days after the date of enactment of this Act.
                                  ____


   The Comprehensive Wetlands Conservation and Management Act of 1994

       The protection of America's wetlands is a crucial public 
     issue that deserves significant national priority. The 
     Pressler bill is designed to conserve true wetlands and 
     balances wetlands protection with protection of private 
     property rights. More important the bill contains provisions 
     that would require fair and just compensation to the owners 
     for the loss of or use of land classified as wetlands.
       The Pressler bill would:
       Assure that functionally important wetlands are protected.
       Classify wetlands by value and function. Certain wetlands 
     would be classified as wetlands with critical significance to 
     the long-term conservation of the ecosystem of which they are 
     a part of. Other would be classified as providing habitat for 
     significant wildlife populations, protection water quality or 
     significant natural flood control, and others as marginal 
     wetlands.
       Provide safeguards so that large amounts of land with 
     little or no true wetland characteristics will be classified 
     as wetland.
       Require compensation be provided to landowners for the loss 
     of economic use of private lands.
       Clarify and reinforce current law that provides an 
     exemption from individual permit requirements for normal 
     farming and ranching activities on farmed wetlands.
       Exempt from regulation all prior converted agricultural 
     land since this land no longer exhibits any wetland 
     characteristics.
       Establish three criteria in designating wetlands. Criteria 
     to be met and verified would be presence of water, hydric 
     soils and hydro-phytic vegetation.
       Prairie potholes and playa lakes would be treated and 
     regulated as other areas as possible wetland areas. Under the 
     Pressler bill, prairie potholes would receive same treatment 
     as all wetlands and not be kept under stricter rules and 
     regulations.
       Exclude man-made or artificial wetlands such as farm ponds 
     and irrigation ditches.
                                  ____


          Will Your Wetland Determinations Cause Any Problems?


                        Fearful of future impact

                            (By Gene Stehly)

       Wetland determinations have just been completed on Gene 
     Stehly's farm near Mitchell, S.D. While they haven't affected 
     the way he farms, he's concerned about what the future may 
     hold.
       ``A surprisingly large amount of our land is involved. Many 
     of the areas that have been declared wetlands we don't think 
     have ever been wet,'' says Stehly, who farms with his brother 
     Craig and father Don. ``I think they got a little carried 
     away. They even designated wetlands in fields that we 
     irrigate with center-pivot systems. Those areas wouldn't be 
     wet if we didn't irrigate.''
       The Stehlys pride themselves on being environmentally 
     concerned. They use no-till extensively and keep chemical use 
     to a minimum. ``We feel we already do a good job protecting 
     the environment. It will be really disturbing if the 
     government comes in and tells us we're not able to continue 
     farming that way on these areas. We're basically in a wait-
     and-see mode,'' says Stehly.
                                  ____


  Wetlands Regulations Often Confuse, Anger Many Farmers--Landowners, 
              Environmentalists Debate Proper Use of Land

                           (By Carson Walker)

       Lake Preston.--When Brian Odden plowed a field near here 
     last October he thought he was merely turning under weeds 
     that accumulated after heavy rains in 1993.
       When he finished plowing, he made one last furrow across 
     the field to keep water from building up on the black soil.
       In the spring, federal officials told him that furrow 
     violated federal wetlands regulations because it allowed 
     water to drain from the nearby wetland. The violation could 
     cost him thousands of dollars in fines. The fines are paid 
     through reduced federal farm payments, including crop 
     insurance and disaster payments.
       For Odden, 42, the payment cuts could drive him off the 
     farm.
       ``When I first learned of the violations, I thought it was 
     a joke. They can call my FHA loans, take away disaster and 
     crop deficiency payments and fine me on top of that,'' he 
     said.
       The laws are designed to protect ground water, waterfowl 
     and to provide flood control, said Carl Madsen, private lands 
     coordinator for the U.S. Fish and Wildlife Service in 
     Brookings.
       The problem is that today's wetlands regulations are a 
     reversal of what the government has encouraged in the past. 
     Farmers don't understand or agree with those changes.
       ``We're going against the grain of nearly 100 years of 
     tradition in the Midwest. The homesteaders were encouraged to 
     drain the land and make it productive and took much pride in 
     doing that. Here we are in 1994, and we have a lot more 
     information than in 1894 on these wetlands,'' Madsen said.
       Odden--who rents the 25-acre field in question--said he 
     didn't know the furrow violated a law. When he was notified, 
     he filled it.
       Local conservation officials determined that the furrow 
     Odden plowed had a minimal effect on the wetlands and 
     recommended the issues be dropped.
       But state officials disagreed. Odden appealed to the Soil 
     Conservation Service in Washington and is awaiting a final 
     ruling.
       Odden is caught up in a nationwide debate that has pitted 
     farmers and landowners against environmental laws over what 
     is the proper use for their land.
       Last week, farmers and conservation officials gathered in 
     Sioux Falls to study proposed changes in conservation rules.
       Wayne Burkhart of Dell Rapids was one of the 125 who 
     attended.
       ``The people involved with wetlands just don't use any 
     common sense,'' Burkhart told a panel.


                        purpose of wetlands laws

       But Madsen of the U.S. Fish and Wildlife Service in 
     Brookings, said the national policy is necessary to protect 
     the remaining wetlands.
       ``In all of this it's a clear expression of the people of 
     this nation through Congress in legislation that these 
     wetland values are of great enough value that we will impose 
     these restrictions on people who choose to drain wetlands,'' 
     he said.
       His advice for any landowner is to check with the local 
     soil conservation office before moving soil that could pose a 
     drainage problem.
       Irving Wessel, 66, of Huron doesn't participate in federal 
     farm programs. He said he doesn't take the payments because 
     he doesn't want the government telling him what he can do 
     with his hand.
       But he must comply with the Clean Water Act and ask the 
     U.S. Army Corps of Engineers for permission before draining a 
     wetland.
       ``If you've got erodible lands, you have to get permission 
     before you can disc it,'' he said. ``This is getting far out. 
     We've got more to do than run back and forth to town to talk 
     to them people.''
       Madsen understands the farmers' concerns.
       ``I can understand a guy's reluctance to ask the 
     government's permission on what they can do with their own 
     land. But it's been around nearly 10 years and it's time we 
     get used to it,'' Madsen said.


                           stress on families

       Odden said the threat of penalties worries his whole 
     family.
       His 8-year-old son, Adam, has picked up on the issue by 
     overhearing telephone calls.
       ``On a daily basis we're living and breathing this thing 
     because it could break us,'' Odden said. ``The other day he 
     said, `Daddy are you going to prison?' I said, `No I'm not 
     going to prison.'''
       Even the people who enforce the regulations say it's 
     sometimes painful.
       Gary Coplan, area conservationist with the Soil 
     Conservation Service in Brookings, said conservation 
     officials get along well with most farmers and understand 
     their frustration.
       ``Our people would like to help farmers,'' Coplan said. 
     ``It's kind of a stress level on both sides.''


                       penalties don't fit crime

       Part of the swamp-buster regulation in the Farm Bill allows 
     federal officials to multiply penalties by the number of 
     owners.
       For Odden, that means the fines could be worse because he 
     and his family farm as a corporation. Any penalty could be 
     multiplied by five--to include himself, his brother, parents 
     and the corporation itself.
       Even some of the officials who enforce the regulations 
     wonder if they are too rigid.
       Once the Soil Conservation Service determines a wetland has 
     been drained, the Agricultural Stabilization and Conservation 
     Service enforces the penalty.
       ASCS uses a formula that does take into consideration 
     whether the action was intentional or accidental, whether it 
     is the farmer's first offense or whether they agree or 
     disagree with the farmer's guilt.
       ``It's straightforward,'' said Larry Somsen, ASCS executive 
     director for Kingsbury County. ``They either lose all their 
     benefits or if they can demonstrate (to the Soil Conservation 
     Service) it was done in good faith, they are penalized based 
     on the size of wetland,'' Somsen said. ``It is a severe 
     penalty and it's probably more than what it should be, but we 
     follow what's in our procedure. At the local level we have 
     very little discretion what we can do.''
       Even if the farmer takes care of the problem, the penalty 
     could still reach $10,000.
       In addition to losing their own property rights, farmers 
     say the federal rules take control away from local agencies.
       In the last several years, the movement has been away from 
     local control and toward strict review of the law by the 
     federal government, they say.
       Odden's lawyer and Kingsbury County State's Attorney Todd 
     Wilkinson of DeSmet said most farmers direct their anger not 
     toward the local officials enforcing the rules, but the law 
     itself.
       ``When you start seeing the local offices lose the ability 
     to judge a situation and they're there firsthand, it would 
     appear the regulations are being interpreted strictly,'' 
     Wilkinson said.
       But John Davidson, a University of south Dakota law 
     professor and Clay county conservationist, said the goal of 
     the laws is clear.
       South Dakota is part of the last viable nesting area for 
     waterfowl in the northern United States, he said. Davidson 
     equates wetland destruction to filling in the Missouri River 
     or flattening the Black Hills because they all are valuable 
     natural resources.
       Swamp-buster rules are set up to penalize farmers who 
     threaten that resource, he said.
       He said most people who drain wetlands do so knowingly and 
     most cases are not accidental.
       ``What that says to farmers is you're free to drain, but 
     you can't drain and get federal handouts,'' Davidson said. 
     ``These people want it both ways. They want the honey tree of 
     federal money and they want to drain their wetlands.''
                                  ____


     Wetland Regulations Take Merciless Hold After Mishap in Field

                           (By Carson Walker)

       Oldham.--A tire track left by a field sprayer introduced 
     Greg Duffy to the world of wetlands regulations.
       Last summer, when the field was still wet from heavy rains, 
     a chemical applicator got stuck in his field between two 
     wetland areas. The large ruts it left behind blocked the 
     natural flow of water between the two wetlands.
       After heavy rains in July water ran from the upstream 
     wetland, around the ridges created by the tire tracks, 
     causing soil erosion on the farmland, Duffy said.
       In the fall, Duffy plowed a furrow across the ridges, from 
     one wetland to another so the water would drain along its 
     natural path.
       Local conservation officials decided the furrow had minimal 
     effect on the water flow. State officials, however, 
     determined that the water loss was substantial.
       Duffy disagrees and has appealed the case to the Soil 
     Conservation Service in Washington, D.C.
       ``It was making two washouts instead of going where the 
     water originally went. I had no intention of farming that 
     wetland,'' he said. ``This was done in the stewardship of the 
     soil.''
       Even though he fixed the problem within two hours of being 
     notified of the violation, Duffy still faces penalties that 
     could be as high as $35,000.
       ``There are some in Kingsbury County that are flagrant 
     violations. Mine isn't,'' he said.
       Conservation officials would not discuss the specifics of 
     the case.
       Wetlands laws apply not just to farmers, but to property 
     owners in the city as well.
       The regulations extended by two years the opening of the 
     Randall's Food Store in Huron, said Kevin Scheel, store 
     manager.
       Store owners had to get a permit to fill in a wetland area 
     so the store could be built. At the time the area was a field 
     on the edge of town. They acquired the permit, but it took 
     time.
       ``I think it was fairly handled,'' Scheel said. ``The 
     process is what takes the most time.''
       David Ridenour of Washington, D.C., vice president of the 
     National Center for Public Policy Research, said wetlands 
     laws now do more harm than good.
       ``We have lost sight of what the real goal is,'' he said. 
     ``Environmental regulation is there to enhance the lives of 
     people and when you cause people to suffer because of 
     excessive regulations, you've lost sight of what your goal 
     was to begin with.''
                                  ____



                              Kingsbury Conservation District,

                                        De Smet, SD, June 8, 1994.
     Dave Gilbert,
     Refuge Manager, U.S. Fish and Wildlife Service, Madison, SD.
       Dear Dave: This letter is in response to the rash of 
     converted wetlands (CW's) that we have had in Kingsbury 
     County in the spring of 1994. As a local unit of Government, 
     we as members of the Kingsbury Conservation District (CD) 
     have received many calls from landowners, operators and 
     others concerning these CW's. In checking with the De Smet 
     SCS office, we have found that a total of 7 possible wetland 
     violations were reported this spring. Of that total, 5 
     possible violations occurred on land containing US Fish & 
     Wildlife Service Easement Wetlands. Of the four operators 
     involved, none of these operators had knowledge of operating 
     land where US Fish & Wildlife Easement Wetlands existed. In 
     our opinion, that represents a lack of communication between 
     US Fish & Wildlife and the operators of those particular 
     tracts of land.
       USDA (ASCS-SCS) and the conservation district also has a 
     controversial program to administer, Highly Erodible Land 
     Compliance. In calender year 1994, Kingsbury County had 24 
     conservation compliance (CC) plans scheduled for 
     implementation. SCS notified, by letter, all operators of any 
     tract of land that was to be implemented in 1994. The 
     operators were also sent a map delineating each HEL field by 
     Tract, Section, Twp., Range. All but 2 or 3 of those 
     operators came into the SCS office to discuss cropping and 
     residue options on those HEL fields. The notification by mail 
     represents a 100% attempt to inform all operators of HEL 
     fields that they must have an approved C-C plan if they 
     participate in USDA Programs.
       The CD Board is formally requesting that the FWS seriously 
     consider making a yearly contact with all new landowners/or 
     new operators of tracts of land that contain US Fish and 
     Wildlife easement wetlands. During that contact, FWS could 
     tell those operators how those wetlands can be used.
       To help illustrate the enormous potential for uninformed 
     operators farming US Fish and Wildlife Easement Wetlands, 
     please consider the following: According to SCS and ASCS 
     records Kingsbury County has 864 sections; of that total 371 
     (43%) have at least 1 US Fish and Wildlife Wetland Easement. 
     864 sections equates to roughly 552,960 acres. SCS records 
     show 94,940 acres of US Fish and Wildlife Wetland Easement 
     acres. Roads, large bodies of water, federal land, railroad 
     and land occupied by cities equals approximately 62,280 
     acres. 552,9600 - 62,280 = 490,680 acres of land that is 
     farmed, hayed or pastured. The 94,940 acres of easement land 
     then represents roughly 20% of land farmed or controlled by a 
     farming interest in Kingsbury County.
       ASCS records show that Kingsbury County has 1150 active 
     farms and they have an average of 120 recons per year (tract 
     divisions, operator changes, owner changes, farms combined or 
     divided, etc.,) those 120 recons affect about 200 farms per 
     year, (roughly 17% of all ASCS farms), using this equation 
     20% or 95,000 acres of all Kingsbury farmed land (crop and 
     pasture) is under easement. With 17% of all ASCS farms having 
     some change in ownership, new operator or division etc. 
     There is a potential for 16,000 acres of U.S. Fish and 
     Wildlife easement acres with some farm operation change in 
     any given year. We are not saying that this does happen 
     but it could happen.
       As a board, we have also requested that ASCS look into the 
     possibility of adding a U.S. Fish and Wildlife Wetland 
     Easement flag to their sign-up procedure. When the operator 
     signs up for the farm program, the easement flag is 
     triggered. A list of names and addresses could then be 
     forwarded to FWS in Madison or Huron, so they could inform 
     producers that FWS has a perpetual wetland easement and it 
     does exist on a tract of land that the operator will be 
     farming in any given crop year.
       We are not saying or implying that converted wetlands only 
     occur on FWS easement wetlands but that the probability 
     exists for more potential violations as the U.S. Fish and 
     Wildlife easements are checked annually. Just for 
     information, SCS statewide has a 5% random spot check of HEL 
     tracts where Scope and Effect wetlands data from the office 
     and from the field is checked. ASCS also has a spot-check 
     process with its wheat and feed grain programs.
       The CD with SCS and ASCS will devote 1 page annually to the 
     ASCS newsletter in an attempt to inform producers about 
     wetlands and their use for production that relates to USDA 
     benefits.
       In the past, our CD board and FWS has successfully co-
     operated on 2 joint ventures; (1) use of grass drills enroute 
     to a grass drill purchased by Kingsbury County CD and (2) a 
     much appreciated contribution with the Spirit Lake Grassland 
     project. We sincerely hope that this co-operation would 
     continue, with an effort to build a successful information/
     education program with landowners/operators participating in 
     USDA programs and farming U.S. Fish and Wildlife perpetual 
     easement wetlands.
       We await your response.
           Sincerely,
     Alan J. Vedvei,
       Chairman.
     Otto F. Sckerl,
       Secretary.
                                  ____


Wetland Slows Work on School--Builders Don't Have Permits To Drain Site

       Watertown.--A wetland near a new $2.9 million elementary 
     school could delay construction on the project, officials 
     said.
       Workers building the new school have removed about 7,000 
     cubic yards of soggy earth and dug two trenches to drain 
     water from the wetland, on one corner of the 25-acre parcel.
       But the school's builder has not gotten the necessary state 
     and federal permits.
       State and federal officials say construction of the school 
     could be delayed until those permits are granted.
       ``We will do whatever we have to do to comply,'' said 
     Watertown School Superintendent Ernie Edwards. ``It appears 
     (some) people are doing everything they can to sabotage this 
     project.''
       Architect Jim Pope, who designed the school, said building 
     contractor Meide and Sons Inc. of Wahpeton, N.D., discussed 
     the problem Monday with state officials.
       ``We were told we need a . . . permit that would cover what 
     we have to do at this point,'' Pope said. ``Meide should have 
     made contact for this permit before the trench was cut. 
     That's hindsight.''
       Pope said he did not know whether the school's contractors 
     planned to apply for a permit from the U.S. Army Corps of 
     Engineers.
       Corps official Jim Oehlerking said the project probably 
     needs a federal permit, too.
       ``There appears to be a potential . . . violation,'' 
     Oehlerking said. ``We may have to investigate the 
     circumstances to see if this has occurred.''
       If the U.S. Environmental protection Agency finds that 
     rules were broken, the project's contractor probably would be 
     asked to help restore the wetland rather than pay a fine.
                                 ______

      By Mrs. FEINSTEIN:
  S. 2491. A bill to amend the Defense Authorization Amendments and 
Defense Base Closure and Realignment Act and the Defense Base Closure 
and Realignment Act of 1990 to improve the base closure process, and 
for other purposes; to the Committee on Armed Services.


                base closure community redevelopment act

 Mrs. FEINSTEIN. Mr. President, today I am introducing the Base 
Closure Community Redevelopment Act of 1994--legislation designed to 
improve the military base closure and reuse process by, among other 
things, reducing Government bureaucracy and empowering local 
communities.
  In particular, this legislation would place base reuse decisions in 
the hands of local officials and balance economic redevelopment 
interests with the needs of the homeless in a commonsense manner.
  As many of my colleagues know, since 1988, nearly 250 military bases 
have been closed or realigned under the BRAC process. While painful for 
States and regions, base closures can be devastating for local 
communities. A closing military base not only means job loss, but also 
translates into reduced local tax revenues, higher housing vacancy 
rates, and increased business failures.
  Base closures, though, also create economic opportunities for 
localities that can expedite reuse through effective redevelopment. 
But, conversion of military bases has proven to be anything but quick 
or simple. Communities across the country have struggled to make sense 
of complex Federal laws and regulations that were never designed to 
deal with military base closures. The current process is cumbersome and 
conflicting, and poses difficulties for local, State, and Federal 
authorities trying to make decisions and dispose of base property in a 
timely manner. Increasingly, opportunities for job creation and 
economic redevelopment are lost.
  In order to respond to this problem, President Clinton developed a 
five-part base community reinvestment program early last year. The 
Pryor amendment to the fiscal year 1994 Defense Authorization Act 
followed--it was designed to basically implement the President's 
program for accelerating the base reuse process and make it easier for 
communities with closing military bases to transition to a commercial 
economy. Under the Pryor amendment, local communities are empowered in 
the reuse process with the goal to reduce the time it takes to turn 
closing base property over to communities and foster job creation and 
economic development.
  The President's five part program and the Pryor amendment are 
certainly steps in the right direction, and I strongly support both. 
However, because the base reuse problem is so difficult, the 
President's program and the Pryor amendment have only partially 
improved the process; obstacles to rapid base reuse remain. Additional 
action is needed to further improve the process and remove or mitigate 
some of the remaining obstacles to rapid base reuse.
  This legislation--much of which is based on recommendations contained 
in the ``California Military Base Reuse Task Force'' report--builds on 
last year's Pryor amendment to further improve the base reuse process. 
A local redevelopment authority would develop a reuse plan on the local 
level, balancing the needs of all community and economic development 
interests.
  Under current law, potential homeless assistance providers apply for 
base property under the McKinney Homeless Assistance Act; the 
Department of Health and Human Services then denies or approves each 
request. The McKinney Act--which was enacted before the BRAC process 
began--has worked relatively well for small parcels of excess Federal 
property, but was never intended for large military bases.
  This bill exempts military bases from the McKinney Act; instead, 
homeless assistance providers and other community groups would be given 
a voice in the new reuse planning process. A local development plan, 
developed in consultation with homeless assistance planning boards, 
would weigh the needs of economic redevelopment and job creation with 
homeless assistance. The Secretary of Housing and Urban Development 
would review the local redevelopment plan to ensure that it reasonably 
addresses the needs of the homeless, but economic redevelopment 
priorities would also be considered in a process that balances 
competing interests.
  In addition to the section relating to homeless use of military 
bases, this bill contains several other provisions. First, it requires 
the Secretary of Defense to submit yearly reports to the President, the 
Congress, and the Governors of States with closing military bases. The 
reports will detail the costs of environmental cleanup at closing 
military bases incurred during the previous year and estimate the funds 
needed to fund environmental cleanup at the bases the following year. 
This estimate would give us our best estimate yet of environmental 
cleanup costs and could serve as a basis for congressional decisions on 
the amount of funds that should be appropriated for cleanup each year.
  Second, this bill allows for the designation of 20 additional 
Enterprise Communities nationwide. In order to be eligible, the 
additional communities must all be in areas affected by base closure or 
realignment. The Enterprise Communities shall be nominated by the 
Secretary of Defense and will be eligible for tax-exempt bond financing 
and other benefits for which Enterprise Communities are currently 
eligible. The Enterprise Communities should serve as an incentive for 
businesses to locate in the area and will stimulate economic growth in 
areas that badly need it. The Joint Committee on Taxation has estimated 
that the cost of the additional enterprise zones will be $31 million 
over 5 years, which can be paid for through reductions in other 
spending.

  Third, a provision requires the Secretary of Defense to consult with 
the redevelopment authority over the procedures used for the appraisal 
of property at closed military bases. If the Defense Department and the 
redevelopment authority have different estimates of the value of the 
property, a third party jointly selected by the Defense Department and 
the redevelopment authority--that is, an independent appraiser--shall 
determine the value of the property. This provision will compel the 
Defense Department to work with the redevelopment authority when the 
value of property at closing bases is being appraised. When the value 
is in dispute, and the redevelopment authority believes the Defense 
Department has overvalued the property, this provision creates a 
mechanism that will help solve the conflict.
  Fourth, the legislation requires the Secretary of Defense, in 
consultation with local officials, to determine the reduction in 
emissions resulting from a base closure, following procedures laid 
forth by the Clean Air Act. If not needed by another installation in 
the air quality control region as an offsetting emission reduction, the 
reduction shall be made available to the entities redeveloping the 
installation.
  If the emissions from the base are not quantified as credits and 
subsequently made available to new businesses locating at the base, the 
businesses will be constrained from emitting any pollution whatsoever. 
In effect, the base closure community will singlehandedly help the air 
quality control region meet its pollution goals. This will place a 
heavy burden on that community and severely hamper its redevelopment 
efforts. My legislation will allow for economic development of the 
closing base property while it either holds pollution at a constant 
level or decreases it.
  Fifth, a provision allows the Secretary of Defense to use a single 
entity to carry out all--or any part--of the environmental cleanup at 
closing military bases. This procedure is also known as cradle-to-grave 
contracting. Cradle-to-grave contracting can simplify the cleanup 
process and make it easier to assign responsibility for any problems 
that may arise. Currently, most cleanup efforts involve numerous 
contractors in different stages of the cleanup effort. This leads to 
duplication of effort--which wastes time and money--and makes it 
difficult to assign responsibility and liability if problems arise. 
Cradle-to-grave contracting can solve these problems.
  Sixth, the legislation directs the Secretary of Defense to reimburse 
businesses locating at closed military bases for economic losses cause 
by environmental hazards inadvertently or negligently left behind by 
the Defense Department. Many businesses are understandably worried 
about what will happen to them if they locate on supposedly clean 
property at a closed military base, and toxic waste is subsequently 
found. Obviously, their business would suffer. By providing for 
reimbursement of business losses, this provision will remove some of 
the risk that businesses are faced with when they consider locating on 
a closed base.
  Finally, this legislation will extend the eligibility for Federal 
Community Reinvestment Act credit to private lenders who provide loans 
to base closure communities. Currently, Federal financial supervisory 
agencies examine a lending institution's record of meeting the credit 
needs of low- and moderate-income neighborhoods. This provision will 
extend the examination in base closure communities to include the 
institution's record of meeting the credit needs of the entire 
community affected by base closure or realignment. This provision will 
provide lenders with an incentive to provide loans to businesses in 
areas affected by base closures, which will stimulate economic growth.
  My staff has worked very closely with Governor Wilson's office and 
other interested parties, on a bipartisan basis, in developing and 
drafting the Base Closure Community Redevelopment Act of 1994. In 
particular, section 2 of the bill, relating with the homeless use of 
military bases, was drafted in consultation with an administration 
interagency working group consisting of representatives from DOD, HUD, 
HHS, GSA, and the Council on the Homeless, as well as staff from the 
Armed Services, Banking and Housing, and Governmental Affairs 
Committees in both the House and Senate.
  Another base closure round is fast approaching that could be larger 
than the first three BRAC rounds combined; it will affect communities 
across the country. This timely legislation will improve the reuse 
process for those bases already slated for closure, as well as for 
bases yet to close. It will also help accomplish a very important 
objective--the acceleration of the economic redevelopment process for 
communities suffering from the closure or realignment of military 
bases. This is important legislation that is badly needed in base 
closure communities throughout the country. I urge all of my colleagues 
to support the Base Closure Community Redevelopment Act of 1994.
  I ask unanimous consent that a summary of the entire legislation, a 
concept paper of section, and the full text of the bill be printed in 
the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2491

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Base Closure Community 
     Redevelopment Act of 1994''.

     SEC. 2. DISPOSAL OF BUILDINGS AND PROPERTY AT MILITARY 
                   INSTALLATIONS APPROVED FOR CLOSURE.

       (a) In General.--Section 2905(b) of the Defense Base 
     Closure and Realignment Act of 1990 (part A of title XXIX of 
     Public Law 101-510; 10 U.S.C. 2687 note) is amended--
       (1) by redesignating paragraph (7) as paragraph (8); and
       (2) by inserting after paragraph (6) the following new 
     paragraph (7):
       ``(7)(A) Determinations of the use to assist the homeless 
     of buildings and property located at installations approved 
     for closure under this part after the date of the enactment 
     of this paragraph shall be determined under this paragraph 
     rather than paragraph (6).
       ``(B)(i) Not later than the date on which the Secretary of 
     Defense completes the final determination referred to in 
     paragraph (5) relating to the use or transferability of any 
     portion of an installation covered by this paragraph, the 
     Secretary shall--
       ``(I) identify the buildings and property at the 
     installation for which the Department of Defense has a use, 
     for which another department or agency of the Federal 
     Government has identified a use, or of which another 
     department or agency will accept a transfer;
       ``(II) take such actions as are necessary to identify any 
     building or property at the installation not identified under 
     subclause (I) that is excess property or surplus property;
       ``(III) submit to the Secretary of Housing and Urban 
     Development and to the redevelopment authority for the 
     installation (or the chief executive officer of the State in 
     which the installation is located if there is no 
     redevelopment authority for the installation at the 
     completion of the determination) information on any building 
     or property that is identified under subclause (II); and
       ``(IV) publish in the Federal Register and in a newspaper 
     of general circulation in the communities in the vicinity of 
     the installation information on the buildings and property 
     identified under subclause (II).
       ``(ii) Upon the recognition of a redevelopment authority 
     for an installation covered by this paragraph, the Secretary 
     of Defense shall publish in the Federal Register and in a 
     newspaper of general circulation in the communities in the 
     vicinity of the installation information on the redevelopment 
     authority.
       ``(C)(i) State and local governments, representatives of 
     the homeless, and other interested parties located in the 
     communities in the vicinity of an installation covered by 
     this paragraph shall submit to the redevelopment authority 
     for the installation a notice of the interest, if any, of 
     such governments, representatives, and parties in the 
     buildings or property, or any portion thereof, at the 
     installation that are identified under subparagraph 
     (B)(i)(II). A notice of interest under this clause shall 
     describe the need of the government, representative, or party 
     concerned for the buildings or property covered by the 
     notice.
       ``(ii) The redevelopment authority for an installation 
     shall assist the governments, representatives, and parties 
     referred to in clause (i) in evaluating buildings and 
     property at the installation for purposes of this 
     subparagraph.
       ``(iii) In providing assistance under clause (ii), a 
     redevelopment authority shall--
       ``(I) consult with representatives of the homeless in the 
     communities in the vicinity of the installation concerned; 
     and
       ``(II) undertake outreach efforts to provide information on 
     the buildings and property to representatives of the 
     homeless, and to other persons or entities interested in 
     assisting the homeless, in such communities.
       ``(iv) It is the sense of Congress that redevelopment 
     authorities should begin to conduct outreach efforts under 
     clause (iii)(II) with respect to an installation as soon as 
     is practicable after the date of approval of closure of the 
     installation.
       ``(D)(i) State and local governments, representatives of 
     the homeless, and other interested parties shall submit a 
     notice of interest to a redevelopment authority under 
     subparagraph (C) not later than the date specified for such 
     notice by the redevelopment authority.
       ``(ii) The date specified under clause (i) shall be--
       ``(I) in the case of an installation for which a 
     redevelopment authority has been established as of the date 
     of the completion of the determinations referred to in 
     paragraph (5), not earlier than 3 months and not later than 6 
     months after that date; and
       ``(II) in the case of an installation for which a 
     redevelopment authority is not established as of such date, 
     not earlier than 3 months and not later than 6 months after 
     the date of the establishment of a redevelopment authority 
     for the installation.
       ``(iii) Upon specifying a date for an installation under 
     this subparagraph, the redevelopment authority for the 
     installation shall--
       ``(I) publish the date specified in a newspaper of general 
     circulation in the communities in the vicinity of the 
     installation concerned; and
       ``(II) notify the Secretary of Defense of the date.
       ``(E)(i) In submitting to a redevelopment authority under 
     subparagraph (C) a notice of interest in the use of buildings 
     or property at an installation to assist the homeless, a 
     representative of the homeless shall submit the following:
       ``(I) A description of the homeless assistance program that 
     the representative proposes to carry out at the installation.
       ``(II) An assessment of the need for the program.
       ``(III) An assessment of the extent to which the program is 
     or will be coordinated with other homeless assistance 
     programs in the communities in the vicinity of the 
     installation.
       ``(IV) A description of the buildings and property at the 
     installation that are necessary in order to carry out the 
     program.
       ``(V) A description of the financial plan and the 
     organizational capacity of the representative to carry out 
     the program.
       ``(VI) An assessment of the time required in order to 
     commence carrying out the program.
       ``(ii) A redevelopment authority may not release to the 
     public any information submitted to the redevelopment 
     authority under clause (i)(V) without the consent of the 
     representative of the homeless concerned unless such release 
     is authorized under Federal law and under the law of the 
     State and communities in which the installation concerned is 
     located.
       ``(F)(i) The redevelopment authority for each installation 
     covered by this paragraph shall prepare a redevelopment plan 
     for the installation. The redevelopment authority shall, in 
     preparing the plan, consider the interests in the use to 
     assist the homeless of the buildings and property at the 
     installation that are expressed in the notices submitted to 
     the redevelopment authority under subparagraph (C).
       ``(ii)(I) In preparing a redevelopment plan for an 
     installation, a redevelopment authority and representatives 
     of the homeless shall prepare legally binding agreements that 
     provide for the use to assist the homeless of buildings and 
     property, resources, and assistance on or off the 
     installation. The implementation of such agreements shall be 
     contingent upon the approval of the redevelopment plan by the 
     Secretary of Housing and Urban Development under subparagraph 
     (H) or (J).
       ``(II) Agreements under this clause shall provide for the 
     reversion to the redevelopment authority concerned, or to 
     such other entity or entities as the agreements shall 
     provide, of buildings and property that are made available 
     under this paragraph for use to assist the homeless in the 
     event that such buildings and property cease being used for 
     that purpose.
       ``(iii) A redevelopment authority shall provide opportunity 
     for public comment on a redevelopment plan before submission 
     of the plan to the Secretary of Defense and the Secretary of 
     Housing and Urban Development under subparagraph (G).
       ``(iv) A redevelopment authority shall complete preparation 
     of a redevelopment plan for an installation and submit the 
     plan under subparagraph (G) not later than 1 year after the 
     date specified by the redevelopment authority for the 
     installation under subparagraph (D).
       ``(G)(i) Upon completion of a redevelopment plan under 
     subparagraph (F), a redevelopment authority shall submit an 
     application containing the plan to the Secretary of Defense 
     and to the Secretary of Housing and Urban Development.
       ``(ii) A redevelopment authority shall include in an 
     application under clause (i) the following:
       ``(I) A copy of the redevelopment plan, including a summary 
     of any public comments on the plan received by the 
     redevelopment authority under subparagraph (F)(iii).
       ``(II) A copy of each notice of interest of use of 
     buildings and property to assist the homeless that was 
     submitted to the redevelopment authority under subparagraph 
     (C), together with a description of the manner, if any, in 
     which the plan addresses the interest expressed in each such 
     notice and, if the plan does not address such an interest, an 
     explanation why the plan does not address the interest.
       ``(III) A summary of the outreach undertaken by the 
     redevelopment authority under subparagraph (C)(iii)(II) in 
     preparing the plan.
       ``(IV) A statement identifying the representatives of the 
     homeless and the homeless assistance planning boards, if any, 
     with which the redevelopment authority consulted in preparing 
     the plan, and the results of such consultations.
       ``(V) An assessment of the manner in which the 
     redevelopment plan balances the expressed needs of the 
     homeless and the need of the communities in the vicinity of 
     the installation for economic redevelopment and other 
     development.
       ``(VI) Copies of the agreements that the redevelopment 
     authority proposes to enter into under subparagraph (F)(ii).
       ``(H)(i) Not later than 60 days after receiving a 
     redevelopment plan under subparagraph (G), the Secretary of 
     Housing and Urban Development shall complete a review of the 
     plan. The purpose of the review is to determine whether the 
     plan--
       ``(I) takes into consideration the size and nature of the 
     homeless population in the communities in the vicinity of the 
     installation, the availability of existing services in such 
     communities to meet the needs of the homeless in such 
     communities, and the suitability of the buildings and 
     property covered by the plan to meet the needs of the 
     homeless in such communities;
       ``(II) takes into consideration, in regards to the 
     expressed interest and requests of representatives of the 
     homeless, the needs of the communities in the vicinity of the 
     installation for economic redevelopment and other development 
     with the needs of the homeless in such communities;
       ``(III) includes copies of the agreements that the 
     redevelopment authority proposes to enter into under 
     subparagraph (F)(ii);
       ``(IV) was developed in consultation with representatives 
     of the homeless and the homeless assistance planning boards, 
     if any, in the communities in the vicinity of the 
     installation; and
       ``(V) specifies the manner in which buildings and property, 
     resources, and assistance on or off the installation will be 
     made available for homeless assistance purposes.
       ``(ii) The Secretary of Housing and Urban Development may 
     engage in negotiations and consultations with a redevelopment 
     authority before or during the course of a review under 
     clause (i) with a view toward resolving any preliminary 
     determination of the Secretary that a redevelopment plan does 
     not meet a requirement set forth in that clause. The 
     redevelopment authority may modify the redevelopment plan as 
     a result of such negotiations and consultations.
       ``(iii) Upon completion of a review of a redevelopment plan 
     under clause (i), the Secretary of Housing and Urban 
     Development shall notify the Secretary of Defense and the 
     redevelopment authority concerned of the determination of the 
     Secretary of Housing and Urban Development under that clause.
       ``(iv) If the Secretary of Housing and Urban Development 
     determines as a result of such a review that a redevelopment 
     plan does not meet the requirements set forth in clause (i), 
     a notice under clause (iii) shall include--
       ``(I) an explanation of that determination; and
       ``(II) a statement of the actions that the redevelopment 
     authority must undertake in order to address that 
     determination.
       ``(I)(i) Upon receipt of a notice under subparagraph 
     (H)(iv) of a determination that a redevelopment plan does not 
     meet a requirement set forth in subparagraph (H)(i), a 
     redevelopment authority shall have the opportunity to--
       ``(I) revise the plan in order to address the 
     determination; and
       ``(II) submit the revised plan to the Secretary of Housing 
     and Urban Development.
       ``(ii) A redevelopment authority shall submit a revised 
     plan under this subparagraph to the Secretary of Housing and 
     Urban Development, if at all, not later than 90 days after 
     the date on which the redevelopment authority receives the 
     notice referred to in clause (i).
       ``(J)(i) Not later than 30 days after receiving a revised 
     redevelopment plan under subparagraph (I), the Secretary of 
     Housing and Urban Development shall review the revised plan 
     for purposes of determining if the plan meets the 
     requirements set forth in subparagraph (H)(i).
       ``(ii) The Secretary of Housing and Urban Development shall 
     notify the Secretary of Defense and the redevelopment 
     authority concerned of the determination of the Secretary of 
     Housing and Urban Development under this subparagraph.
       ``(K) Upon receipt of a notice under subparagraph (H)(iii) 
     or (J)(ii) of the determination of the Secretary of Housing 
     and Urban Development that a redevelopment plan for an 
     installation meets the requirements set forth in subparagraph 
     (H)(i), the Secretary of Defense shall dispose of the 
     buildings and property located at the installation that are 
     identified in the plan as available for use to assist the 
     homeless in accordance with the provisions of the plan. The 
     Secretary of Defense may dispose of such buildings or 
     property directly to the representatives of the homeless 
     concerned or to the redevelopment authority concerned.
       ``(L)(i) If the Secretary of Housing and Urban Development 
     determines under subparagraph (J) that a revised 
     redevelopment plan for an installation does not meet the 
     requirements set forth in subparagraph (H)(i), or if not 
     revised plan is so submitted, that Secretary shall--
       ``(I) review the original redevelopment plan submitted to 
     that Secretary under subparagraph (G), including the notice 
     or notices of representatives of the homeless referred to in 
     clause (ii)(II) of that subparagraph;
       ``(II) consult with the representatives referred to in 
     subclause (I), if any, for purposes of evaluating the 
     continuing interest of such representatives in the use of 
     buildings or property at the installation to assist the 
     homeless;
       ``(III) request that each such representative submit to 
     that Secretary the items described in clause (ii); and
       ``(IV) based on the actions of that Secretary under 
     subclauses (I) and (II), and on any information obtained by 
     that Secretary as a result of such actions, indicate to the 
     Secretary of Defense the buildings and property at the 
     installation that meets the requirements set forth in 
     subparagraph (H)(i).
       ``(ii) The Secretary of Housing and Urban Development may 
     request under clause (i)(III) that a representative of the 
     homeless submit to that Secretary the following:
       ``(I) A description of the program of such representative 
     to assist the homeless.
       ``(II) A description of the manner in which the buildings 
     and property that the representative proposes to use for such 
     purpose will assist the homeless.
       ``(III) Such information as that Secretary requires in 
     order to determine the financial capacity of the 
     representative to carry out the program and to ensure that 
     the program will be carried out in compliance with Federal 
     environmental law and Federal law against discrimination.
       ``(IV) A certification that police services, fire 
     protection services, and water and sewer services available 
     in the communities in the vicinity of the installation 
     concerned are adequate for the program.
       ``(iii) The Secretary of Housing and Urban Development 
     shall indicate to the Secretary of Defense and to the 
     redevelopment authority concerned the buildings and property 
     at an installation under clause (i)(IV) to be disposed of not 
     later than 90 days after the date of a receipt of a revised 
     plan for the installation under subparagraph (J).
       ``(iv) The Secretary of Defense shall dispose of the 
     buildings and property at an installation referred to in 
     clause (iii) to entities indicated by the Secretary of 
     Housing and Urban Development or by transfer to the 
     redevelopment authority concerned for sale, exchange, lease, 
     permit, or transfer to such entities. Such disposal shall be 
     in accordance with the indications of the Secretary of 
     Housing and Urban Development under clause (i)(IV).
       ``(M)(i) In the event of the disposal of buildings and 
     property of an installation pursuant to subparagraph (K), the 
     redevelopment authority for the installation shall be 
     responsible for the implementation of agreements under the 
     redevelopment plan described in that subparagraph for the 
     installation.
       ``(ii) If a building or property reverts to a redevelopment 
     authority under such an agreement, the redevelopment 
     authority shall take appropriate actions to secure, to the 
     maximum extent practicable, the utilization of the building 
     or property by other homeless representatives to assist the 
     homeless. A redevelopment authority may not be required to 
     utilize the building or property to assist the homeless.
       ``(N) The Secretary of Defense with respect to activities 
     under this paragraph that are under the jurisdiction of that 
     Secretary and the Secretary of Housing and Urban Development 
     with respect to activities under this paragraph that are 
     under the jurisdiction of that Secretary may, in consultation 
     with the redevelopment authority concerned, postpone or 
     extend any deadline provided for under this paragraph in the 
     case of an installation covered by this paragraph for such 
     period as the Secretary considers appropriate if the 
     Secretary determines that such postponement is in the 
     interests of the communities affected by the closure of the 
     installation.''.
       (b) Definitions.--Section 2910 of such Act is amended by 
     adding at the end the following:
       ``(10) The term `representative of the homeless' has the 
     meaning given such term in section 501(h)(4) of the Stewart 
     B. McKinney Homeless Assistance Act (42 U.S.C. 
     11411(h)(4).''.
       (c) Conforming Amendment.--Section 2905(b)(6)(A) of such 
     Act is amended by adding at the end the following: ``For 
     procedures relating to the use to assist the homeless of 
     buildings and property at installations closed under this 
     part after the date of the enactment of this sentence, see 
     paragraph (7).''.
       (d) Applicability to Installations Approved for Closure 
     Before Enactment of Act.--(1)(A) Notwithstanding any 
     provision of the 1988 base closure Act or the 1990 base 
     closure Act, as such provision was in effect on the day 
     before the date of the enactment of this Act, and subject to 
     subparagraphs (B) and (C), the use to assist the homeless of 
     building and property at military installations approved for 
     closure under the 1988 base closure Act or the 1990 base 
     closure Act, as the case may be, before such date shall be 
     determined in accordance with the provisions of paragraph (7) 
     of section 2905(b) of the 1990 base closure Act, as amended 
     by subsection (a), in lieu of the provisions of the 1988 base 
     closure Act or the 1990 base closure Act that would otherwise 
     apply to the installations.
       (B)(i) The provisions of such paragraph (7) shall apply to 
     an installation referred to in subparagraph (A) only if the 
     redevelopment authority for the installation submits a 
     request to the Secretary of Defense not later than 60 days 
     after the date of the enactment of this Act.
       (ii) In the case of an installation for which no 
     redevelopment authority exists on the date of the enactment 
     of this Act, the chief executive officer of the State in 
     which the installation is located shall submit the request 
     referred to in clause (i) and act as the redevelopment 
     authority for the installation.
       (C) The provisions of such paragraph (7) shall not apply to 
     any buildings or property at an installation referred to in 
     subparagraph (A) for which the redevelopment authority 
     submits a request referred to in subparagraph (B) within the 
     time specified in such subparagraph (B) if the buildings or 
     property, as the case may be, have been transferred or leased 
     for use to assist the homeless under the 1988 base closure 
     Act or the 1990 base closure Act, as the case may be, before 
     the date of the enactment of this Act.
       (2) For purposes of the application of such paragraph (7) 
     to the buildings and property at an installation, the date on 
     which the Secretary receives a request with respect to the 
     installation under paragraph (1) shall be treated as the date 
     on which the Secretary of Defense completes the final 
     determination referred to in subparagraph (B) of such 
     paragraph (7).
       (3) Upon receipt under paragraph (1)(B) of a timely request 
     with respect to an installation, the Secretary of Defense 
     shall publish in the Federal Register and in a newspaper of 
     general circulation in the communities in the vicinity of the 
     installation information describing the redevelopment 
     authority for the installation.
       (4)(A) The Secretary of Housing and Urban Development and 
     the Secretary of Health and Human Services shall not, during 
     the 60-day period beginning on the date of the enactment of 
     this Act, carry out with respect to any military installation 
     approved for closure under the 1988 base closure Act or the 
     1990 base closure Act before such date any action required of 
     such Secretaries under the 1988 base closure Act or the 1990 
     base closure Act, as the case may be, or under section 501 of 
     the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
     11411).
       (B)(i) Upon receipt under paragraph (1)(A) of a timely 
     request with respect to an installation, the Secretary of 
     Defense shall notify the Secretary of Housing and Urban 
     Development and the Secretary of Health and Human Services 
     that the disposal of buildings and property at the 
     installation shall be determined under such paragraph (7) in 
     accordance with this subsection.
       (ii) Upon receipt of a notice with respect to an 
     installation under this subparagraph, the requirements, if 
     any, of the Secretary of Housing and Urban Development and 
     the Secretary of Health and Human Services with respect to 
     the installation under the provisions of law referred to in 
     subparagraph (A) shall terminate.
       (iii) Upon receipt of a notice with respect to an 
     installation under this subparagraph, the Secretary of Health 
     and Human Services shall notify each representative of the 
     homeless that submitted to that Secretary an application to 
     use buildings or property at the installation to assist the 
     homeless under the 1988 base closure Act or the 1990 base 
     closure Act, as the case may be, that the use of buildings 
     and property at the installation to assist the homeless shall 
     be determined under such paragraph (7) in accordance with 
     this subsection.
       (5)(A) In preparing a redevelopment plan for buildings and 
     property at an installation covered by such paragraph (7) by 
     reason of this subsection, the redevelopment authority 
     concerned shall--
       (A) consider and address specifically any applications for 
     use of such buildings and property to assist the homeless 
     that were received by the Secretary of Health and Human 
     Services under the 1988 base closure Act or the 1990 base 
     closure Act, as the case may be, before the date of the 
     enactment of this Act and are pending with that Secretary on 
     that date; and
       (B) incorporate in the plan an accommodation of the needs 
     of the homeless on or off the installation that is at least 
     substantially equivalent to the accommodations of the needs 
     of the homeless that were provided for in any such 
     applications that were so received before such date and were 
     approved by that Secretary before that date.
       (6) In the case of an installation to which the provisions 
     of such paragraph (7) apply by reason of this subsection, the 
     date specified by the redevelopment authority for the 
     installation under subparagraph (D) of such paragraph (7) 
     shall be not less than 1 month and not more than 6 months 
     after the date of the submittal of the request with respect 
     to the installation under paragraph (1)(B).
       (7) For purposes of this subsection:
       (A) The term ``1988 base closure Act'' means the Defense 
     Authorization Amendments and Base Closure and Realignment Act 
     (Public Law 100-526; 10 U.S.C. 2687 note).
       (B) The term ``1990 base closure Act'' means the Defense 
     Base Closure and Realignment Act of 1990 (part A of title 
     XXIX of Public Law 101-510; 10 U.S.C. 2687 note).
       (e) Clarifying Amendments to Base Closure Acts.--(1) 
     Section 204(b)(6)(F)(i) of the Defense Authorization 
     Amendments and Base Closure Act and Realignment Act (Public 
     Law 100-526; 10 U.S.C. 2687 note) is amended by inserting 
     ``and buildings and property referred to in subparagraph 
     (B)(ii) which are not identified as suitable for use to 
     assist the homeless under subparagraph (C),'' after 
     ``subparagraph (D),''.
       (2) Section 2905(b)(6)(F)(i) of the Defense Base Closure 
     and Realignment Act of 1990 (part A of title XXIX of Public 
     Law 101-510; 10 U.S.C. 2687 note) is amended by inserting 
     ``and buildings and property referred to in subparagraph 
     (B)(ii) which are not identified as suitable for use to 
     assist the homeless under subparagraph (C),'' after 
     ``subparagraph (D),''.

     SEC. 3. REPORTS ON COSTS OF ENVIRONMENTAL REMEDIATION AT 
                   INSTALLATIONS TO BE CLOSED OR REALIGNED.

       (a) Reports Required.--(1) Not later than January 30 of 
     each year in which the Secretary of Defense will undertake 
     activities relating to the closure or realignment of a 
     military installation approved for closure or realignment 
     under a base closure law, the Secretary shall submit to the 
     President, Congress, and the chief executive officer of each 
     State in which such an installation is located the report 
     referred to in paragraph (2).
       (2) The report referred to in paragraph (1) shall--
       (A) describe the costs, if any, incurred by the Secretary 
     during the previous year in carrying out environmental 
     restoration, waste management, and environmental compliance 
     activities at the installation; and
       (B) include an estimate of the amounts required by the 
     Secretary during the year in which the report is submitted in 
     order to carry out environmental restoration, waste 
     management, and environmental compliance activities at the 
     installation in accordance with the base realignment and 
     closure cleanup plan for the installation.
       (b) Definitions.--In this section:
       (1) The term ``base closure law'' means the following:
       (A) The provisions of title II of the Defense Authorization 
     Amendments and Defense Base Closure and Realignment Act 
     (Public Law 100-526; 10 U.S.C. 2687 note).
       (B) The Defense Base Closure and Realignment Act of 1990 
     (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
     note).
       (2) The term ``base realignment and closure cleanup plan'', 
     with respect to a military installation, means the plan for 
     the expeditious environmental cleanup necessary to facilitate 
     conveyance of the property of the installation to communities 
     for economic redevelopment.

     SEC. 4. DESIGNATION OF AREAS AFFECTED BY BASE CLOSURES AND 
                   REALIGNMENTS AS ENTERPRISE COMMUNITIES.

       (a) Designation.--Section 1391(b) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(3) Additional enterprise communities from base closure 
     areas.--
       ``(A) In general.--The appropriate Secretaries may, in 
     addition to any designations under paragraph (1), designate 
     20 nominated areas as enterprise communities but only if the 
     nominated areas are areas affected by the closure or 
     realignment of a military installation under a base closure 
     law.
       ``(B) Definition.--In this paragraph, the term `base 
     closure law' means the following:
       ``(i) The provisions of title II of the Defense 
     Authorization Amendments and Defense Base Closure and 
     Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note).
       ``(ii) The Defense Base Closure and Realignment Act of 1990 
     (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
     note).''.
       (b) Criteria.--Section 1392 of such Code is amended by 
     adding at the end the following new subsection:
       ``(d) Special Rule for Base Closure Areas.--In the case of 
     a designation under section 1391(b)(3), subsection (a) shall 
     not apply.''
       (c) Appropriate Secretary.--Section 1393(a)(1) of such Code 
     is amended by striking ``and'' at the end of subparagraph 
     (A), by striking the period at the end of subparagraph (B) 
     and inserting ``, and'', and by adding at the end the 
     following new subparagraph:
       ``(C) the Secretary of Defense in the case of a designation 
     of a nominated area under section 1391(b)(3).''.

     SEC. 5. APPRAISAL OF PROPERTY AT INSTALLATIONS TO BE CLOSED 
                   OR REALIGNED.

       (a) Under 1988 Act.--Section 204(b)(4) of the Defense 
     Authorization Amendments and Defense Base Closure and 
     Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note) is 
     amended--
       (1) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (E) and (F), respectively; and
       (2) by inserting after subparagraph (C) the following new 
     subparagraph (D):
       ``(D)(i) Before determining the estimated fair market value 
     of any real property or personal property to be transferred 
     under this paragraph, the Secretary shall--
       ``(I) notify the redevelopment authority concerned of the 
     guidelines and procedures to be used by the Secretary in 
     determining such fair market value; and
       ``(II) incorporate into such guidelines and procedures any 
     recommendations of the redevelopment authority that the 
     Secretary considers appropriate.
       ``(ii) In the case of transfer of any real property or 
     personal property referred to in clause (iii), the fair 
     market value of the property upon transfer shall be--
       ``(I) the amount jointly determined by the Secretary and 
     the redevelopment authority concerned; or
       ``(II) if the Secretary and the redevelopment authority 
     cannot agree upon an amount under subclause (I), the amount 
     determined by an appropriate third party jointly selected by 
     the Secretary and the redevelopment authority for the purpose 
     of such determination.
       ``(iii) Clause (ii) applies any to real property or 
     personal property that may be transferred under this 
     paragraph if the estimated fair market value of such 
     property, as determined by the Secretary, exceeds the 
     estimated fair market value of such property, as determined 
     by the redevelopment authority concerned, by the greater of--
       ``(I) the amount equal to 25 percent of the fair market 
     value of such property as determined by the redevelopment 
     authority; or
       ``(II) $500,000.''.
       (b) Under 1990 Act.--Section 2905(b)(4) of the Defense Base 
     Closure and Realignment Act of 1990 (Public Law 100-526; 10 
     U.S.C. 2687 note) is amended--
       (1) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (E) and (F), respectively; and
       (2) by inserting after subparagraph (C) the following new 
     subparagraph (D):
       ``(D)(i) Before determining the estimated fair market value 
     of any real property or personal property to be transferred 
     under this paragraph, the Secretary shall--
       ``(I) notify the redevelopment authority concerned of the 
     guidelines and procedures to be used by the Secretary in 
     determining such fair market value; and
       ``(II) incorporate into such guidelines and procedures any 
     recommendations of the redevelopment authority that the 
     Secretary considers appropriate.
       ``(ii) In the case of transfer of any real property or 
     personal property referred to in clause (iii), the fair 
     market value of the property upon transfer shall be--
       ``(I) the amount jointly determined by the Secretary and 
     the redevelopment authority concerned; or
       ``(II) if the Secretary and the redevelopment authority 
     cannot agree upon an amount under subclause (I), the amount 
     determined by an appropriate third party jointly selected by 
     the Secretary and the redevelopment authority for the purpose 
     of such determination.
       ``(iii) Clause (ii) applies any to real property or 
     personal property that may be transferred under this 
     paragraph if the estimated fair market value of such 
     property, as determined by the Secretary, exceeds the 
     estimated fair market value of such property, as determined 
     by the redevelopment authority concerned, by the greater of--
       ``(I) the amount equal to 25 percent of the fair market 
     value of such property as determined by the redevelopment 
     authority; or
       ``(II) $500,000.''.

     SEC. 6. CREDIT FOR REDUCTION IN EMISSIONS OF AIR POLLUTANTS 
                   AS A RESULT OF THE CLOSURE OF MILITARY 
                   INSTALLATIONS.

       (a) Under 1988 Act.--Section 204 of the Defense 
     Authorization Amendments and Base Closure and Realignment Act 
     (Public Law 100-526; 10 U.S.C. 2687 note) is amended by 
     adding at the end the following:
       ``(e) Credits for Emissions of Air Pollutants.--(1)(A) The 
     Secretary of Defense shall determine the amount of the 
     reduction in the emission of air pollutants that will result 
     from the cessation of activities of the Department of Defense 
     at a military installation approved for closure under this 
     title. The Secretary shall determine such amount with respect 
     to each air pollutant emitted by the installation.
       ``(B) The Secretary shall determine the amount of the 
     reduction in the emission of an air pollutant under 
     subparagraph (A) with respect to an installation in a manner 
     consistent with the determination of rates of emission of the 
     air pollutant under the plan established under title I of the 
     Clean Air Act (42 U.S.C. 7401 et seq.) for a reduction in or 
     limit on the emission of the air pollutant in the air quality 
     control region in which the installation is located.
       ``(2) Notwithstanding any other provision of law, the 
     Secretary, in consultation with the redevelopment authority 
     concerned, shall--
       ``(A) use the amount of the reduction in the emission of an 
     air pollutant under paragraph (1) as an offsetting emission 
     reduction against the emission of the air pollutant by the 
     Department of Defense at another installation within the same 
     air quality control region as the installation achieving the 
     reduction; or
       ``(B) if the Secretary determines that such use is not 
     desirable or necessary, by making the amount of the reduction 
     available to a person or entity in accordance with paragraph 
     (3).
       ``(3)(A) Notwithstanding any other provision of law, a 
     person or entity referred to in subparagraph (B) may use the 
     amount of an air pollutant emission reduction referred to in 
     subparagraph (C) as an offsetting emission reduction against 
     the emission of the air pollutant by the person or entity as 
     a result of the operations of the person or entity at the 
     installation referred to in subparagraph (B) for purposes of 
     compliance with a plan established under title I of the Clean 
     Air Act for a reduction in or limit on the emission of the 
     air pollutant in the air quality control region in which the 
     installation is located.
       ``(B) Subparagraph (A) applies to any person or entity--
       ``(i) who is the transferee from the Secretary of Defense 
     under this section of any real property or facility located 
     at a military installation approved for closure under this 
     title; and
       ``(ii) who owns or operates a major stationary source (as 
     used under section 182 of the Clean Air Act (42 U.S.C. 
     7511a)) at the property or facility.
       ``(C) The amount of the offsetting air pollutant emission 
     reduction available to a person or entity under subparagraph 
     (A) as the result of the closure of a military installation 
     is the lesser of--
       ``(i) the amount of the air pollutant that the air quality 
     planning agency for the air quality control region in which 
     the installation is located determines will be emitted by the 
     major stationary source owned or operated by the person or 
     entity at the property or facility; or
       ``(ii) the amount of the reduction in the emission of the 
     air pollutant for the installation as determined under 
     paragraph (1).
       ``(4) For purposes of this subsection, the term `air 
     pollutant' shall include each air pollutant required to be 
     offset under part D of title I of the Clean Air Act (42 
     U.S.C. 7501 et seq.) or under applicable State law.''.
       (b) Under 1990 Act.--Section 2905 of the Defense Base 
     Closure and Realignment Act of 1990 (part A of title XXIX of 
     Public Law 101-510; 10 U.S.C. 2687 note) is amended by adding 
     at the end the following:
       ``(f) Credits for Emissions of Air Pollutants.--(1)(A) The 
     Secretary of Defense shall determine the amount of the 
     reduction in the emission of air pollutants that will result 
     from the cessation of activities of the Department of Defense 
     at a military installation approved for closure under this 
     part. The Secretary shall determine such amount with respect 
     to each air pollutant emitted by the installation.
       ``(B) The Secretary shall determine the amount of the 
     reduction in the emission of an air pollutant under 
     subparagraph (A) with respect to an installation in a manner 
     consistent with the determination of rates of emission of the 
     air pollutant under the plan established under title I of the 
     Clean Air Act (42 U.S.C. 7401 et seq.) for a reduction in or 
     limit on the emission of the air pollutant in the air quality 
     control region in which the installation is located.
       ``(2) Notwithstanding any other provision of law, the 
     Secretary, in consultation with the redevelopment authority 
     concerned, shall--
       ``(A) use the amount of the reduction in the emission of an 
     air pollutant under paragraph (1) as an offsetting emission 
     reduction against the emission of the air pollutant by the 
     Department of Defense at another installation within the same 
     air quality control region as the installation achieving the 
     reduction; or
       ``(B) if the Secretary determines that such use is not 
     desirable or necessary, by making the amount of the reduction 
     available to a person or entity in accordance with paragraph 
     (3).
       ``(3)(A) Notwithstanding any other provision of law, a 
     person or entity referred to in subparagraph (B) may use the 
     amount of an air pollutant emission reduction referred to in 
     subparagraph (C) as an offsetting emission reduction against 
     the emission of the air pollutant by the person or entity as 
     a result of the operations of the person or entity at the 
     installation referred to in subparagraph (B) for purposes of 
     compliance with a plan established under title I of the Clean 
     Air Act for a reduction in or limit on the emission of the 
     air pollutant in the air quality control region in which the 
     installation is located.
       ``(B) Subparagraph (A) applies to any person or entity--
       ``(i) who is the transferee from the Secretary of Defense 
     under this section of any real property or facility located 
     at a military installation approved for closure under this 
     title; and
       ``(ii) who owns or operates a major stationary source (as 
     used under section 182 of the Clean Air Act (42 U.S.C. 
     7511a)) at the property or facility.
       ``(C) The amount of the offsetting air pollutant emission 
     reduction available to a person or entity under subparagraph 
     (A) as the result of the closure of a military installation 
     is the lesser of--
       ``(i) the amount of the air pollutant that the air quality 
     planning agency for the air quality control region in which 
     the installation is located determines will be emitted by the 
     major stationary source owned or operated by the person or 
     entity at the property or facility; or
       ``(ii) the amount of the reduction in the emission of the 
     air pollutant for the installation as determined under 
     paragraph (1).
       ``(4) For purposes of this subsection, the term `air 
     pollutant' shall include each air pollutant required to be 
     offset under part D of title I of the Clean Air Act (42 
     U.S.C. 7501 et seq.) or under applicable State law.''.

     SEC. 7. SENSE OF CONGRESS ON USE OF SINGLE ENTITY FOR 
                   ENVIRONMENTAL REMEDIATION AT INSTALLATIONS TO 
                   BE CLOSED OR REALIGNED.

       (a) Sense of Congress.--It is the sense of Congress that 
     the Secretary of Defense should consider carrying out all 
     environmental restoration, waste management, and 
     environmental compliance activities, or any of a related 
     series of such activities, at a military installation 
     approved for closure or realignment under a base closure law 
     through a single entity.
       (b) Authority To Use Single Entity.--Notwithstanding any 
     other provision of law, the Secretary of Defense may carry 
     out all environmental restoration, waste management, and 
     environmental compliance activities, or any of a related 
     series of such activities, at a military installation 
     approved for closure or realignment under a base closure law 
     through a single entity if the Secretary determines that 
     carrying out such activities through such an entity is 
     feasible and appropriate.
       (c) Definition.--In this section, the term ``base closure 
     law'' means the following:
       (1) The provisions of title II of the Defense Authorization 
     Amendments and Defense Base Closure and Realignment Act 
     (Public Law 100-526; 10 U.S.C. 2687 note).
       (2) The Defense Base Closure and Realignment Act of 1990 
     (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
     note).

     SEC. 8. REIMBURSEMENT OF CERTAIN TRANSFEREES OF DEPARTMENT OF 
                   DEFENSE FOR BUSINESS LOSS DUE TO ENVIRONMENTAL 
                   HAZARDS ON TRANSFERRED PROPERTY.

       (a) In General.--(1) Except as provided in paragraph (3) 
     and subject to subsection (b), the Secretary of Defense may 
     reimburse in full the persons and entities referred to in 
     paragraph (2) for any economic loss suffered by the persons 
     or entities as a result of the release or threatened release 
     of any hazardous substance, pollutant or contaminant, or 
     petroleum or petroleum derivative as a result of Department 
     of Defense activities at any military installation (or 
     portion thereof) that is closed pursuant to a base closure 
     law.
       (2) The persons and entities referred to in paragraph (1) 
     are the following:
       (A) Any person or entity (other than an entity of a State 
     government or political subdivision thereof) that acquires 
     ownership or control of any facility at a military 
     installation (or any portion thereof) described in paragraph 
     (1) for the purposes (as determined by the Secretary of 
     Defense) of carrying out for-profit business activities at 
     the facility.
       (B) Any successor, assignee, transferee, or lessee of a 
     person or entity referred to in subparagraph (A) if the 
     Secretary determines that such successor, assignee, 
     transferee, or lessee carries out for-profit business 
     activities at the facility.
       (C) Any lender of a person or entity referred to in 
     subparagraph (A) or (B).
       (3) Paragraph (1) shall not apply to a person or entity 
     referred to in paragraph (2) to the extent that the person or 
     entity contributed to any release or threatened release 
     referred to in paragraph (1).
       (b) Conditions.--No reimbursement may be provided under 
     this section unless the person or entity making a claim for 
     reimbursement--
       (1) notifies the Department of Defense in writing within 2 
     years after the claim accrues;
       (2) furnishes to the Department of Defense copies of 
     pertinent documents the person or entity receives;
       (3) furnishes evidence or proof of any claim, loss, or 
     damage covered by this section; and
       (4) provides, upon request of the Secretary of Defense, 
     access to the records and personnel of the person or entity 
     for purposes of settling the claim.
       (c) Scope of Authority of Secretary of Defense.--In any 
     case in which the Secretary of Defense determines that a 
     person or entity referred to in paragraph (2) of subsection 
     (a) may be entitled to reimbursement under this section for 
     economic loss suffered by the person or entity as a result of 
     a release or threatened release referred to in paragraph (1) 
     of that subsection, the Secretary may, at the discretion of 
     the Secretary--
       (1) pay the person or entity--
       (A) an amount equal to the amount of the economic loss (as 
     determined by the Secretary); and
       (B) an amount determined by the Secretary to be appropriate 
     in order to permit the person or entity to maintain on-going 
     for-profit business activities at the facility while the 
     Secretary carries out remediation of the release or 
     threatened release; or
       (2) purchase the facility from the person or entity at a 
     price jointly agreed upon by the Secretary and the person or 
     entity.
       (d) Relationship to Other Law.--Nothing in this section 
     shall be construed as affecting or modifying in any way 
     section 120(h) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9620(h)).
       (e) Definitions.--In this section:
       (1) The terms ``facility'', ``hazardous substance'', 
     ``release'', and ``pollutant or contaminant'' have the 
     meanings given such terms in paragraphs (9), (14), (22), and 
     (33) of section 101 the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601(9), 
     (14), (22), and (33)), respectively.
       (2) The term ``base closure law'' means the following:
       (A) The provisions of title II of the Defense Authorization 
     Amendments and Defense Base Closure and Realignment Act 
     (Public Law 100-526; 10 U.S.C. 2687 note).
       (B) The Defense Base Closure and Realignment Act of 1990 
     (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
     note).

     SEC. 9. TREATMENT UNDER COMMUNITY REINVESTMENT ACT OF 
                   COMMUNITIES AFFECTED BY THE CLOSURE OR 
                   REALIGNMENT OF MILITARY INSTALLATIONS.

       Section 804 of the Community Reinvestment Act of 1977 (12 
     U.S.C. 2903) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``and'' at the end;
       (B) in paragraph (2), by striking ``(2) take such record'' 
     and inserting ``(3) take the records referred to in 
     paragraphs (1) and (2)''; and
       (C) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) if the institution serves a community affected by the 
     closure or realignment of a military installation under a 
     base closure law, assess the institution's record of meeting 
     the credit needs of that entire community, consistent with 
     the safe and sound operation of the institution; and''; and
       (2) by adding at the end the following new subsection:
       ``(c) Definition.--For purposes of subsection (a)(2), the 
     term `base closure law' means the following:
       ``(1) The provisions of title II of the Defense 
     Authorization Amendments and Defense Base Closure and 
     Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note).
       ``(2) The Defense Base Closure and Realignment Act of 1990 
     (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
     note).''.
                                  ____


     The Base Closure Community Redevelopment Act of 1994--Summary

       Section 1: Title of bill--the ``Base Closure Community 
     Redevelopment Act of 1994''.
       Section 2: Exempts closing military bases from the homeless 
     assistance provisions of the McKinney Act; instead, gives 
     homeless assistance providers and other community groups a 
     voice in the local reuse planning process. A local 
     redevelopment authority creates one comprehensive 
     redevelopment plan based on expressions of interest for 
     property by federal agencies, state and local entities, 
     homeless assistance providers and other community groups. The 
     final redevelopment plan, developed on the local level and in 
     consultation with homeless assistance planning boards, would 
     balance the needs of the homeless with economic redevelopment 
     and job creation interests. The local redevelopment plan 
     would be reviewed by the Secretary of HUD to ensure that a 
     reasonable amount of homeless assistance is provided either 
     on or off the base. All closing military bases slated for 
     closure after date of enactment would be covered under this 
     new provision. In addition, those bases that are already 
     slated for closure request consideration under this new 
     provision.
       Section 3: Requires the Secretary of Defense to submit 
     yearly, updated reports on the costs of environmental cleanup 
     at closing military bases.
       Section 4: Allows for the designation of 20 additional 
     Enterprise Communities (eligible for tax-exempt bond 
     financing) nationwide. In order to be eligible, the 
     additional communities must be in areas affected by base 
     closure or major realignment.
       Section 5: Requires the Secretary of Defense to consult 
     with the redevelopment authority over the procedures used for 
     the appraisal of property at closed military bases. If DoD 
     and the redevelopment authority have different estimates of 
     the value of the property, a third party jointly selected by 
     DoD and the redevelopment authority (i.e. an independent 
     appraiser) shall determine the value.
       Section 6: Requires the Secretary of Defense, in 
     consultation with local officials, to determine the reduction 
     in emissions resulting from a base closure (following 
     procedures laid forth by the Clean Air Act). If not needed by 
     another military installation in the air quality control 
     region as an offsetting emission reduction, the reduction 
     shall be made available to the entities redeveloping the 
     installation.
       Section 7: Allows the Secretary of Defense to use a single 
     entity to carry out all (or any part) of the environmental 
     cleanup at closing military bases. This procedure is also 
     known as ``cradle-to-grave'' contracting.
       Section 8: Directs the Secretary of Defense to indemnify 
     businesses locating at closed military bases for economic 
     losses caused by environmental hazards inadvertently or 
     negligently left behind by DoD.
       Section 9: Extends the eligibility for the Federal 
     Community Reinvestment Act credits to private lenders who 
     provide loans to base closure communities. Currently, these 
     credits are only available for low- and moderate-income 
     communities.


Section 2: Use of Closing Military Bases for Economic Redevelopment and 
                          Homeless Assistance

       (Developed in consultation with Congressional staff and an 
     interagency working group consisting of representatives from 
     DOD, HUD, HHS, GSA and the Interagency Council on the 
     Homeless).
       1. Base Closure and Realignment property shall be exempted 
     from the current provisions of Title V of the McKinney 
     Homeless Assistance Act. Instead, homeless assistance 
     providers, homeless persons and their representatives will 
     have a voice in the reuse planning process for closing 
     military installations. The Local Redevelopment Authority 
     (LRA) will be used to request property on a portion of the 
     base or to request other assistance related to the 
     development of the base. Accordingly, homeless assistance 
     providers will no longer be able to make requests directly to 
     the Federal government for all or part of an entire 
     installation. The redevelopment plan developed by the LRA 
     will be required to be based on local needs as well as 
     balance all community and economic development interests, 
     including those of the homeless.
       2. DOD and Federal agencies will screen available 
     properties and participate in the local planning process by 
     submitting an expression of interest and a statement on need 
     to DOD, with a copy to the LRA. (Federal agencies may obtain 
     property either directly from DOD or through the LRA under 
     economic development conveyances.)
       3. Following the DOD/Federal agency screening, DOD shall 
     publish in the Federal Register information about excess and 
     available property on a base. DOD shall also publish the name 
     of the LRA and LRA contacts as soon as an LRA is established. 
     The Interagency Council on the Homeless will assist in 
     disseminating this information to organizations serving the 
     homeless. The LRA will be responsible for publicizing its 
     planning and public input process in local publications.
       State and local interests, including community-based 
     homeless-related interests, and all other parties shall 
     express their interest and statement of need for base 
     property to the LRA. A submission from a homeless assistance 
     provider to the LRA shall include a statement describing: (1) 
     its proposed homeless assistance program; (2) the need for 
     the program; (3) the linkages of the proposed program to 
     other programs available in the community; (4) the specific 
     properties, facilities or other resources needed to carry out 
     the proposed program; and (6) the amount of time necessary 
     for the proposed program to become operational.
       4. All statements of interest from state and local 
     interests, homeless assistance providers and other parties 
     shall be submitted to the LRA within a time frame set by the 
     LRA and made public (but not less than three months and not 
     later than six months after completion of DOD/Federal 
     screening). [For those bases already slated for closure that 
     have already completed the screening process, the time frame 
     shall be not less than one month and not later than six 
     months.]
       5. The local Homeless Assistance Planning Board (HAPB) 
     established under (proposed) Section 411(b) of Title IV of 
     the McKinney Act (as provided for in Section 811 of H.R. 
     3838) (if one exists) is expected to take the lead in 
     coordinating and reviewing requests from homeless providers 
     and making recommendations to the LRA on those requests. If 
     no HAPB exists, a committee with representatives from the 
     local government and broad representation from locally based 
     government and non-government homeless providers may be 
     established to coordinate these efforts.
       6. The LRA will have not more than one year from completion 
     of the screening period to complete and submit a 
     redevelopment plan [note: this is not more than 24 months 
     from approval of closure]. DOD may negotiate and enter into 
     interim leases for use of available properties (consistent 
     with the redevelopment plan) prior to permanent transfer or 
     disposal.
       7. the LRA will submit a redevelopment plan and application 
     for certification to DOD and HUD. (The plan discussed in this 
     proposal is the ``redevelopment plan'' defined in Title 29 of 
     the Defense Authorization Act of 1994.)
       The LRA's application shall be appropriately documented and 
     include:
       (a) A copy of the redevelopment plan.
       (b) Copies of all expressions of interest from homeless 
     assistance providers and a discussion of how these and all 
     other requests for property, including those from Federal 
     agencies, state and local interests, etc., are being 
     addressed;
       (c) A summary of the LRA's outreach to homeless 
     providers and publicly efforts, as well as a summary of 
     any public comments.
       (d) A summary of the LRA's consultations with other 
     organizations in developing the plan (including consultations 
     with local Homeless Assistance Planning Boards and homeless 
     providers who have expressed interest);
       (e) A statement from the LRA of how the plan balances the 
     expressed needs of the homeless (either on- or off-base) and 
     other community and economic development needs; and,
       (f) Copies of proposed legally binding and enforceable 
     agreement(s) that the LRA has entered into to fulfill its 
     commitment(s) to homeless assistance providers. The 
     agreement(s) must set forth the LRA's policies and procedures 
     for determining the future use of properties, transfers for 
     homeless assistance resources provided in accordance with the 
     plan, in the event that local needs or circumstances change. 
     In this case, any property which has been transferred for 
     homeless assistance use shall revert to the LRA or its 
     authorized local designee for a use consistent with its 
     legally binding agreement with the homeless provider, and not 
     revert to DoD.
       The redevelopment plan shall be site-specific to the extent 
     practicable. (The LRA may submit a more specific plan at a 
     later date if the plan involves a base which is scheduled for 
     closure more than 24 months following DoD's Federal Register 
     announcement). DoD may begin to review the LRA's 
     redevelopment plan and incorporate it into the environmental 
     analysis required for NEPA.
       8. HUD will review the entire submission to certify that 
     the plan adequately addresses the needs of the homeless and 
     that it balances those needs with the need for community and 
     economic development. The reuse plan must:
       (a) include commitments to enter into legally binding 
     agreements to provide assistance to the homeless within the 
     community, and copies of such agreements;
       (b) balance the need for providing property and assistance 
     to the homeless with the overall reuse plan for the military 
     installation;
       (c) have been developed in consultation with local 
     representatives of the homeless, including representatives of 
     applicable local homeless assistance planning boards and 
     representatives of local nongovernmental homeless providers;
       (d) specify the manner in which property or assistance will 
     be made available for homeless assistance.
       In making the determination, HUD will consider the 
     population of the homeless in the community involved, the 
     extent of current services to assist the homeless within the 
     community, the extent of the commitment of resources by local 
     governments in the community to assist the homeless, the need 
     for additional services to assist the homeless within the 
     community, and the suitability of the property for serving 
     the needs of the homeless.
       Formal adoption of the redevelopment plan must be made in a 
     public forum and in accordance with applicable state and 
     local laws. In addition, the redevelopment plan submitted 
     should include a summary of comments from community groups 
     and other interested parties as expressed during a public 
     comment period.
       9. HUD will have 60 days to complete its review of the 
     plan, certify that the plan either does or does not 
     reasonably address the needs of the homeless (either on- or 
     off-base) and balance those needs with the need for community 
     and economic development, and notify the redevelopment 
     authority. During this period, HUD may work with the LRA to 
     identify inadequacies and may negotiate changes to the plan. 
     DoD will not convey any properties to the LRA unless and 
     until HUD certifies that the LRA's submission is acceptable.
       (a) If HUD certifies that the plan balances homeless 
     assistance needs with community and economic needs, HUD will 
     notify DoD and the LRA. DoD will then work with the LRA to 
     fulfill the approved commitments for homeless use.
       (b) If HUD determines that the plan fails to reasonably 
     address the needs of the homeless and balance the need for 
     community and economic development, then HUD will state the 
     specific reasons for its conclusions and specify actions 
     needed to make the plan acceptable. HUD's report will be sent 
     both to DoD and the LRA.
       10. If the redevelopment plan is not approved by HUD, the 
     LRA, will have 90 days following the receipt of HUD's report 
     to submit a revised plan to HUD and DoD that addresses HUD's 
     concerns. HUD will review the revised plan and either certify 
     that it is either acceptable or unacceptable within 30 days 
     of receipt. If HUD certifies that the revised plan is 
     unacceptable, HUD will, within 90 days, administer the 
     following process:
       (a) HUD will review the original expressions of interest 
     from homeless assistance providers for property on the base 
     that were included in the LRA's submission (see 
     paragraph 7(b) above).
       (b) HUD will consult with these providers to determine if 
     they are still interested in property on the base for 
     homeless assistance purposes and obtain additional 
     information necessary to prepare leases, deeds or other 
     conveyance documents.
       (c) HUD will request that these providers submit a detailed 
     proposal containing information related to its proposed 
     program which is similar to that currently submitted to HHS 
     as part of the current McKinney Title V process (e.g., 
     financial capacity, environmental issues, and compliance with 
     Federal non-discrimination laws). The applicant will also be 
     asked to certify and document the availability of appropriate 
     sewer, water, police and fire services.
       (d) HUD will review these proposals and make a 
     recommendation to DoD consistent with its previous report to 
     DoD and the LRA on the redevelopment plan. In making this 
     recommendation, HUD will address the suitability of the 
     identified properties for homeless use in consultation with 
     DoD and in accordance with the current HUD checklist for 
     McKinney properties.
       11. If HUD approves the redevelopment plan, DoD will, after 
     reviewing recommendations from the appropriate federal 
     agencies, ordinarily convey properties to an LRA or to other 
     entities approved for public benefit uses under the Federal 
     Property Act. DoD may, when necessary, transfer properties 
     directly to providers identified by the LRA (or approved by 
     HUD if HUD finds the LRA's plan unacceptable) to meet the 
     needs of the homeless.
       12. In those limited cases in which DoD conveys property 
     directly to homeless providers, HUD will work with DoD and 
     the providers in preparing the necessary deed.
       13. DoD, in consultation with the LRA, may extend any of 
     the time lines mentioned above if doing so is in public 
     interest.
       14. The new process identified above shall apply to any 
     installation approved for closure after the date of 
     enactment.
       15. In the case of property on an installation already 
     approved for closure, the LRA may, within 60 days of 
     enactment of this proposal, submit a request to DoD for 
     consideration under the new procedures instead of the current 
     McKinney Title V process.
       If a homeless assistance provider has a pending McKinney 
     Act application but not yet approved, that homeless 
     assistance provider shall be given preferential status by the 
     LRA when determining homeless needs in the redevelopment 
     plan. If a McKinney Act application has already been approved 
     by HHS but property has not yet been transferred, the LRA 
     must demonstrate in the redevelopment plan how it will 
     accommodate, at a minimum, the approved program(s) and 
     activities on or off the base in a substantially equivalent 
     manner.
       16. For those 60 calendar days immediately following 
     enactment of this proposal, HHS will suspend processing of 
     all expressions of interest and applications for base closure 
     properties under the current McKinney process which have been 
     published by HUD but not approved. At the end of this 60 days 
     period, HHS will resume processing applications in accordance 
     with applicable law and regulations.
       17. In the event a request is filed in connection with the 
     process described in paragraphs 13 or 14 above, HHS and HUD 
     will suspended the McKinney application process for the 
     applicable properties. DoD will notify HHS and HUD (who will 
     notify any affected homeless providers) that a LRA wishes to 
     proceed under this new section.
       18. The LRA will be responsible for monitoring the 
     implementation of the redevelopment plan.
                                 ______

      By Mr. SARBANES (for himself and Mr. Bryan):
  S.J. Res. 228. A joint resolution designating October 29, 1994, as 
``National Firefighters Day''; to the Committee on the Judiciary.


                       national firefighters day

 Mr. SARBANES. Mr. President, today I am introducing a Joint 
Resolution to designate October 29, 1994 as ``National Firefighters 
Day.''
  As a co-chairman of the Congressional Fire Services Caucus and a 
long-time supporter of our Nation's fire service, I am honored to again 
sponsor a resolution that sets aside 1 day to thank firefighters for 
their dedication and service to all of us. As my colleagues will 
recall, we previously designated October 29, 1993, as ``National 
Firefighters Day'' and it is my hope that we can make this an annual 
tradition.
  Twenty-four hours a day, 365 days each year, firefighters are on 
standby--ready to come to our aid. These well-trained men and women are 
our first line of defense against fire and a host of other natural 
disasters. And while each of us hopes that we will never need their 
assistance, we take comfort in knowing that they are there.
  At a time when so many bemoan the lack of role models for our youth, 
I contend that we need look only to the nearest firehall for heroes who 
day-to-day put their lives on the line in selfless service to others. 
Mr. President, all of the volunteer and career firefighters around our 
country truly deserve a day of recognition.
  An identical resolution was introduced in the House last week by the 
distinguished chairman of the Congressional Fire Services Caucus, 
Representative Hoyer from Maryland. I am pleased to be joined today by 
one of my fellow Senate co-chairmen, Senator Bryan, in introducing the 
Senate companion. Mr. President, I urge all of my colleagues to join us 
in sponsoring this joint resolution.
  There being no objection, the joint resolution ordered to be printed 
in the Record, as follows:

                             S.J. Res. 228

       Whereas there are over 2,000,000 firefighters in the United 
     States;
       Whereas firefighters respond to more than 2,300,000 fires 
     and 8,700,000 emergencies other than fires each year;
       Whereas fires annually cause nearly 6,000 deaths and 
     $10,000,000,000 in property damages;
       Whereas firefighters have given their lives and risked 
     injury to preserve the lives and protect the property of 
     others;
       Whereas the contributions and sacrifices of valiant 
     firefighters often go unreported and are inadequately 
     recognized by the public; and
       Whereas the work of firefighters deserves the attention and 
     gratitude of all individuals in the United States: Now, 
     therefore, be it
       Resolved by the Senate and House of Representatives of the 
     United States of America in Congress assembled, That October 
     29, 1994, is designated as ``National Firefighters Day'', and 
     the President of the United States is authorized and 
     requested to issue a proclamation calling upon the people of 
     the United States to observe the day with appropriate 
     ceremonies and activities.

                          ____________________