[Congressional Record Volume 141, Number 94 (Friday, June 9, 1995)]
[Senate]
[Pages S8098-S8119]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. BRYAN (for himself and Mr. Reid):
  S. 903. A bill to designate the Nellis Federal Hospital in Las Vegas, 
NV, as the ``Mike O'Callaghan Military Hospital,'' and for other 
purposes; to the Committee on Armed Services.


     the mike o'callaghan military hospital designation act of 1995

  Mr. BRYAN. Mr. President, it is my privilege today to introduce 
legislation to designate the Nellis Federal Hospital in Las Vegas, NV, 
as the ``Mike O'Callaghan Military Hospital.''
  The Nellis Federal Hospital is a newly constructed joint venture 
hospital facility in Las Vegas, NV. The facility is operated jointly by 
the U.S. Department of Defense through the Nellis Air Force Base, and 
the U.S. Department of Veterans Affairs through the Las Vegas Veterans 
Affairs Outpatient Clinic.
  This medical facility is the culmination of years of cooperative 
efforts between the Departments of Defense and Veterans Affairs to 
address the health care needs of both active duty military at Nellis 
Air Force Base and their families, and the rapidly increasing southern 
Nevada veterans population.
  The Federal hospital, formally dedicated on July 8, 1994, was opened 
to patients on August 1, 1994. It was my pleasure to attend the July 
dedication of this remarkable joint facility. For Nellis Air Force 
Base, the Federal hospital provides base personnel access to a new 
medical facility to provide quality health care. For southern Nevada 
veterans, the Federal hospital represents their first permanent 
veterans inpatient hospital in the Las Vegas area. For many of these 
veterans, hospital care can now be provided in State, rather than in a 
different State hundreds of miles away from home.
  This hospital will serve many Nevadans--those who, while serving at 
the Nellis Air Force Base, call Nevada their home temporarily, and 
those who, as retired veterans, call Nevada their home permanently.
  It is, therefore, only appropriate to name this vital health care 
facility after a man who has served his country militarily with honor 
in three branches of the armed services; the Air Force, the Army, and 
the Marine Corps. A man who, as disabled veteran, is reminded every day 
of the sacrifice of that service. A man who has spent his entire career 
working tirelessly to make life a little bit better for all Nevadans
  It is, therefore, truly a privilege for me to introduce this 
legislation today to name the Federal hospital for Mike O'Callaghan.
  Mike O'Callaghan and I both have had the honor of serving the people 
of Nevada as their Governor. In fact, Governor O'Callaghan is one of 
only five two-term Governors in Nevada's history.
  As Nevada's Governor, Mike O'Callaghan was a hands on worker. The 
lights in the Governor's office were always the first ones on, and the 
ones out when he was the occupant. He was always the man in charge, and 
he always got the job done for Nevadans.
  Governor O'Callaghan is also a most compassionate, caring and 
sensitive human being, both in his instincts and in his actions. While 
Governor, he always worked for the underdog. For people who could not 
speak for themselves, Governor O'Callaghan was their voice. He made 
sure they were heard.
  One of the highlights of his terms as Governor was passage of 
Nevada's fair housing law to ensure all Nevadans equal access to a home 
of their own. He understood how very important it is for people to have 
a place of their own to call home wherever they choose to live.
  Governor O'Callaghan's military career began early. At 16 years of 
age, he enlisted in the U.S. Marine Corps to serve during the period 
ending in World War II.
  During the Korean conflict, he served with both the Air Force and the 
Army. While in Korea, he was wounded in combat, forcing amputation of 
his left leg. His unflinching courage was recognized through the 
awarding of the Silver Star, the Bronze Star with Valor Device, and the 
Purple Heart.
  Following his Army service in Korea, Governor O'Callaghan spent the 
next years as a teacher and journalist. He earned a master's degree at 
the University of Idaho. He then taught economics, government, and 
history in Henderson, NV, for several years. One of his students, my 
colleague, Senator Harry Reid, took those classes to heart.
  In 1963, Governor O'Callaghan began his public service career when he 
became the first director of Nevada's Health and Welfare Department. He 
also served almost 2 years as a project manager for the Job Corps 
Conservation Centers.
  His professional career continued in 1969 when Governor O'Callaghan 
founded a research-planning firm in Carson City, NV. He then started 
his political career entering the race
 for Nevada's Governor as a Democrat in 1970. He was reelected in 1974, 
winning by an overwhelming majority. He was also honored that year by 
Time Magazine as one of the Nation's top 200 promising young Americans. 
Instead of running for a third gubernatorial term, he retired from 
elected office in 1978.

  Today, Governor O'Callaghan is currently the chairman and executive 
editor of the Las Vegas Sun. He continues to write provocative 
editorials on Nevada and national political issues, continuing always 
to speak for those without a voice.
  He is also publisher of the Henderson Home News and the Boulder City 
News. He travels every year to Israel, where as a private citizen, he 
gives his time to help work on military tank maintenance.
  His interest in the concerns of those currently serving in the 
military and in those who have already served their country has not 
waned. In recognition of that continued commitment, former Governor 
O'Callaghan was presented the Air Force Exceptional Service Award in 
1982.
  We in Nevada are proud to have the Nellis Federal Hospital in Las 
Vegas. To name the hospital after Mike O'Callaghan would commemorate 
not only his valuable personal contributions to Nevada, but would honor 
all those who answer the call of duty to their country.
                                 ______

      By Mr. LUGAR:
  S. 904. A bill to provide flexibility to States to administer and 
control the cost of the food stamp and child nutrition programs, and 
for other purposes; to the Committee on Agriculture, Nutrition, and 
Forestry.


              THE NUTRITION ASSISTANCE REFORM ACT OF 1995

 Mr. LUGAR. Mr. President, most Americans now recognize the 
need to reform our welfare system. U.S. welfare policy has encouraged 
dependency, [[Page S8099]] has failed to encourage work effort, and has 
contributed to runaway entitlement spending.
  These failures do not mean that we have been wrong to assist needy 
Americans. A just society makes provision for its less fortunate 
members.
  But what is the best way to do that? What policies offer the best 
prospect of helping the needy to become independent? What are the 
unintended consequences of the modern welfare state? What is the cost 
of the culture of dependency?
  These are questions with which we must grapple. Most accounts of the 
welfare reform debate focus solely on the prospect that someone's 
benefits will be reduced.
  That is the wrong question. The right question is: What will happen 
if we refuse to reform welfare because we are afraid of the political 
consequences? How many more generations of dependency will we foster? 
How many people will fail to break out of the welfare trap who 
otherwise might have gotten jobs, or started businesses, or sent 
children to college?
  Is compassion always and everywhere defined by spending more money?
  Our society's compassion must now be reflected in tough choices, not 
blank checks. It is easy to write repetitive stories about cuts in 
benefits. More understanding is required to note the effect of changing 
incentives, encouraging work effort, and insisting on independence.
  I chair the Committee on Agriculture, Nutrition, and Forestry, which 
has jurisdiction over the Food Stamp program and child nutrition 
spending. We are not the primary committee of jurisdiction on welfare 
matters, but the programs we oversee are a vital part of the Nation's 
social safety net.
  Today, I am introducing legislation that represents my best effort at 
a consensus bill that reflects the range of views on our committees. 
That range is a broad one, comprising Senators who favor block grants 
and those who do not. Some committee members on both sides of the aisle 
and prepared for sharp reductions in nutrition spending, while other 
are not.
  I was prepared to act boldly. I agreed with many of our Nation's 
Governors that the States deserve the change to try new
 approaches to delivering nutrition assistance.

  The legislation I introduce today will not convert the Food Stamp 
Program to block grants. I made this decision consciously because I 
believe committee consensus is preferable to contention if the latter 
would divert us from the real issues.
  Welfare reform should not, at the end of the day, be measured by 
whether or not it converts all programs to block grants. Block grants 
are a means, not an end.
  Instead, I ask my colleagues to measure welfare reform proposals by 
these tests: Do they give States more freedom to try new approaches? Do 
they encourage work and responsibility? And do they reduce the runaway 
expenditure of taxpayer funds?
  I hope Senators will agree that the bill I introduce today does all 
these things. First, it gives the States wider latitude to reform the 
Food Stamp Program. The bill allows States to try a variety of 
approaches to delivering benefits, structuring incentives and 
encouraging independence. Many current Federal requirements are ended, 
and States are granted more authority to modify the program in light of 
their unique circumstances. Under this bill, States could restrict 
eligibility for benefits, create work supplementation initiatives where 
food stamp benefits would be used to leverage job incentives, and 
undertake other reforms.
  Second, the bill promotes work and responsibility. The bill will 
enforce strict work requirements, allow States to crack down on food 
stamp recipients who fail to pay child support or cooperate with the 
child support enforcement system, and put real sanctions on recipients 
who violate work requirements or voluntarily quit a job.
  Finally, this legislation will reduce Federal spending. It is 
designed to achieve approximately the level of savings in the budget 
resolution approved by the Senate. This legislation will pay food stamp 
benefits based on 100 percent of the low-cost thrifty food plan, 
instead of the present 103 percent. It will also modify income 
deductions and asset tests used in calculating eligibility and benefit 
levels. The bill achieves savings in other nutrition programs while 
retaining the Federal responsibility for these programs. For example, 
the legislation will reduce subsidies for meals served in day care 
homes in upper- and middle-income areas.
  Mr. President, a just nation does not cast its poor out on the 
street. But neither does it absolve them of personal responsibility. As 
we reform welfare programs, we must count the cost to both society and 
welfare recipients of retaining the old, failed system. That cost is 
too high. Instead, we must try new approaches and provide new 
incentives. Some may fail. But the greater failure of the old order is 
manifest.
  We owe it to every American to try new approaches and question old 
ways. We must enter the new century as a nation whose watchword is 
independence, not dependency.
  Mr. President, I ask unanimous consent that the test of the bill I 
introduce, along with a summary of its provisions, be printed in the 
Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:
                                 S. 904

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,
     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Nutrition 
     Assistance Reform Act of 1995''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                      TITLE I--FOOD STAMP PROGRAM

Sec. 101. Certification period.
Sec. 102. Treatment of minors.
Sec. 103. Optional additional criteria for separate household 
              determinations.
Sec. 104. Adjustment of thrifty food plan.
Sec. 105. Definition of homeless individual.
Sec. 106. Earnings of students.
Sec. 107. Energy assistance.
Sec. 108. Deductions from income.
Sec. 109. Amount of vehicle asset limitation.
Sec. 110. Benefits for aliens.
Sec. 111. Disqualification.
Sec. 112. Caretaker exemption.
Sec. 113. Employment and training.
Sec. 114. Comparable treatment for disqualification.
Sec. 115. Cooperation with child support agencies.
Sec. 116. Disqualification for child support arrears.
Sec. 117. Permanent disqualification for participating in 2 or more 
              States.
Sec. 118. Work requirement.
Sec. 119. Electronic benefit transfers.
Sec. 120. Minimum benefit.
Sec. 121. Benefits on recertification.
Sec. 122. Optional combined allotment for expedited households.
Sec. 123. Failure to comply with other welfare and public assistance 
              programs.
Sec. 124. Allotments for households residing in institutions.
Sec. 125. Operation of food stamp offices.
Sec. 126. State employee and training standards.
Sec. 127. Expedited coupon service.
Sec. 128. Fair hearings.
Sec. 129. Income and eligibility verification system.
Sec. 130. Collection of overissuances.
Sec. 131. Termination of Federal match for optional information 
              activities.
Sec. 132. Standards for administration.
Sec. 133. Work supplementation or support program.
Sec. 134. Waiver authority.
Sec. 135. Authorization of pilot projects.
Sec. 136. Response to waivers.
Sec. 137. Private sector employment initiatives.
Sec. 138. Reauthorization of appropriations.
Sec. 139. Reauthorization of Puerto Rico block grant.
Sec. 140. Simplified food stamp program.
Sec. 141. Effective date.

                   TITLE II--CHILD NUTRITION PROGRAMS

                    Subtitle A--Reimbursement Rates

Sec. 201. Termination of additional payment for lunches served in high 
              free and reduced price participation schools.
Sec. 202. Value of food assistance.
Sec. 203. Lunches, breakfasts, and supplements.
Sec. 204. Summer food service program for children.
Sec. 205. Special milk program.
Sec. 206. Free and reduced price breakfasts.
Sec. 207. Conforming reimbursement for paid breakfasts and lunches.

                       Subtitle B--Grant Programs

Sec. 211. School breakfast startup grants.
Sec. 212. Nutrition education and training programs.
Sec. 213. Effective date.

                      Subtitle C--Other Amendments

Sec. 221. Free and reduced price policy statement. [[Page S8100]] 
Sec. 222. Summer food service program for children.
Sec. 223. Child and adult care food program.
Sec. 224. Reducing required reports to State agencies and schools.

                       TITLE III--REAUTHORIZATION

Sec. 301. Commodity distribution program; commodity supplemental food 
              programs.
Sec. 302. Emergency food assistance program.
Sec. 303. Soup kitchens program.
Sec. 304. National commodity processing.
                      TITLE I--FOOD STAMP PROGRAM

     SEC. 101. CERTIFICATION PERIOD.

       Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(c)) is amended by striking ``Except as provided'' and 
     all that follows and inserting the following: ``The 
     certification period shall not exceed 12 months, except that 
     the certification period may be up to 24 months if all adult 
     household members are elderly, disabled, or primarily self-
     employed. A State agency shall have at least 1 personal 
     contact with each certified household every 12 months.''.

     SEC. 102. TREATMENT OF MINORS.

       The second sentence of section 3(i) of the Food Stamp Act 
     of 1977 (7 U.S.C. 2012(i)) is amended by striking ``(who are 
     not themselves parents living with their children or married 
     and living with their spouses)''.

     SEC. 103. OPTIONAL ADDITIONAL CRITERIA FOR SEPARATE HOUSEHOLD 
                   DETERMINATIONS.

       (a) In General.--Section 3(i) of the Food Stamp Act of 1977 
     (7 U.S.C. 2012(i)) is amended by inserting after the second 
     sentence the following: ``Notwithstanding the preceding 
     sentences, a State may establish criteria that prescribe when 
     individuals who live together, and who would be allowed to 
     participate as separate households under the preceding 
     sentences, shall be considered a single household, without 
     regard to the purchase of food and the preparation of 
     meals.''.
       (b) Conforming amendment.--The second sentence of section 
     5(a) of the Act (7 U.S.C. 2014(a)) is amended by striking 
     ``the third sentence of section 3(i)'' and inserting ``the 
     fourth sentence of section 3(i)''.

     SEC. 104. ADJUSTMENT OF THRIFTY FOOD PLAN.

       The second sentence of section 3(o) of the Food Stamp Act 
     of 1977 (7 U.S.C. 2012(o)) is amended--
       (1) by striking ``shall (1) make'' and inserting the 
     following: ``shall--
       ``(1) make'';
       (2) by striking ``scale, (2) make'' and inserting ``scale;
       ``(2) make'';
       (3) by striking ``Alaska, (3) make'' and inserting the 
     following: ``Alaska;
       ``(3) make''; and
       (4) by striking ``Columbia, (4) through'' and all that 
     follows through the end of the subsection and inserting the 
     following: ``Columbia; and
       ``(4) on October 1, 1995, and each October 1 thereafter, 
     adjust the cost of the diet to reflect the cost of the diet, 
     in the preceding June, and round the result to the nearest 
     lower dollar increment for each household size, except that 
     on October 1, 1995, the Secretary may not reduce the cost of 
     the diet in effect on September 30, 1995.''.

     SEC. 105. DEFINITION OF HOMELESS INDIVIDUAL.

       Section 3(s)(2)(C) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(s)(2)(C)) is amended by inserting ``for not more than 90 
     days'' after ``temporary accommodation''.

     SEC. 106. EARNINGS OF STUDENTS.

       Section 5(d)(7) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(d)(7)) is amended by striking ``21'' and inserting 
     ``19''.

     SEC. 107. ENERGY ASSISTANCE.

       (a) In General.--Section 5(d) of the Food Stamp Act of 1977 
     (7 U.S.C. 2014(d)) is amended--
       (1) by striking paragraph (11); and
       (2) by redesignating paragraphs (12) through (16) as 
     paragraphs (11) through (15), respectively.
       (b) Conforming Amendments.--
       (1) Section 5 of the Act (7 U.S.C. 2014) is amended--
       (A) in subsection (k)(1)(A), by striking ``plan for aid to 
     families with dependent children approved'' and inserting 
     ``program funded''; and
       (B) in subsection (m), by striking ``(d)(13)'' and 
     inserting ``(d)(12)''.
       (2) Section 2605(f) of the Low-Income Home Energy 
     Assistance Act of 1981 (42 U.S.C. 8624(f)) is amended--
       (A) by striking ``(f)(1) Notwithstanding'' and inserting 
     ``(f) Notwithstanding'';
       (B) in paragraph (1), by striking ``food stamps,''; and
       (C) by striking paragraph (2).

     SEC. 108. DEDUCTIONS FROM INCOME.

       (a) In General.--Section 5 of the Food Stamp Act of 1977 (7 
     U.S.C. 2014) is amended by striking subsection (e) and 
     inserting the following:
       ``(e) Deductions From Income.--
       ``(1) Standard deduction.--
       ``(A) In general.--The Secretary shall allow a standard 
     deduction for each household in the 48 contiguous States and 
     the District of Columbia, Alaska, Hawaii, Guam, and the 
     Virgin Islands of the United States of--
       ``(i) for fiscal year 1995, $134, $229, $189, $269, and 
     $118, respectively;
       ``(ii) for fiscal year 1996, $132, $225, $186, $265, and 
     $116, respectively;
       ``(iii) for fiscal year 1997, $130, $222, $183, $261, and 
     $114, respectively;
       ``(iv) for fiscal year 1998, $128, $218, $180, $257, and 
     $112, respectively;
       ``(v) for fiscal year 1999, $126, $215, $177, $252, and 
     $111, respectively; and
       ``(vi) for fiscal year 2000, $124, $211, $174, $248, and 
     $109, respectively.
       ``(B) Adjustment for inflation.--On October 1, 2000, and 
     each October 1 thereafter, the Secretary shall adjust the 
     standard deduction to the nearest lower dollar increment to 
     reflect changes in the Consumer Price Index for all urban 
     consumers published by the Bureau of Labor Statistics, for 
     items other than food, for the 12-month period ending the 
     preceding June 30.
       ``(2) Earned income deduction.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a household with earned income shall be allowed a deduction 
     of 20 percent of all earned income (other than income 
     excluded by subsection (d)), to compensate for taxes, other 
     mandatory deductions from salary, and work expenses.
       ``(B) Exception.--The deduction described in subparagraph 
     (A) shall not be allowed with respect to determining an 
     overissuance due to the failure of a household to report 
     earned income in a timely manner.
       ``(3) Dependent care deduction.--
       ``(A) In general.--A household shall be entitled, with 
     respect to expenses (other than excluded expenses described 
     in subparagraph (B)) for dependent care, to a dependent care 
     deduction, the maximum allowable level of which shall be $200 
     per month for each dependent child under 2 years of age and 
     $175 per month for each other dependent, for the actual cost 
     of payments necessary for the care of a dependent if the care 
     enables a household member to accept or continue employment, 
     or training or education that is preparatory for employment.
       ``(B) Excluded expenses.--The excluded expenses referred to 
     in subparagraph (A) are--
       ``(i) expenses paid on behalf of the household by a third 
     party;
       ``(ii) amounts made available and excluded for the expenses 
     referred to in subparagraph (A) under subsection (d)(3); and
       ``(iii) expenses that are paid under section 6(d)(4).
       ``(4) Deduction for child support payments.--
       ``(A) In general.--A household shall be entitled to a 
     deduction for child support payments made by a household 
     member to or for an individual who is not a member of the 
     household if the household member is legally obligated to 
     make the payments.
       ``(B) Methods for determining amount.--The Secretary may 
     prescribe by regulation the methods, including calculation on 
     a retrospective basis, that a State agency shall use to 
     determine the amount of the deduction for child support 
     payments.
       ``(5) Homeless shelter deduction.--A State agency may 
     develop a standard homeless shelter deduction, which shall 
     not exceed $139 per month, for such expenses as may 
     reasonably be expected to be incurred by households in which 
     all members are homeless individuals but are not receiving 
     free shelter throughout the month. A State agency that 
     develops the deduction may use the deduction in determining 
     eligibility and allotments for the households, except that 
     the State agency may prohibit the use of the deduction for 
     households with extremely low shelter costs.
       ``(6) Excess medical expense deduction.--
       ``(A) In general.--A household containing an elderly or 
     disabled member shall be entitled, with respect to expenses 
     other than expenses paid on behalf of the household by a 
     third party, to an excess medical expense deduction for the 
     portion of the actual costs of allowable medical expenses, 
     incurred by the elderly or disabled member, exclusive of 
     special diets, that exceeds $35 per month.
       ``(B) Method of claiming deduction.--
       ``(i) In general.--A State agency shall offer an eligible 
     household under subparagraph (A) a method of claiming a 
     deduction for recurring medical expenses that are initially 
     verified under the excess medical expense deduction in lieu 
     of submitting information or verification on actual expenses 
     on a monthly basis.
       ``(ii) Method.--The method described in clause (i) shall--

       ``(I) be designed to minimize the burden for the eligible 
     elderly or disabled household member choosing to deduct the 
     recurrent medical expenses of the member pursuant to the 
     method;
       ``(II) rely on reasonable estimates of the expected medical 
     expenses of the member for the certification period 
     (including changes that can be reasonably anticipated based 
     on available information about the medical condition of the 
     member, public or private medical insurance coverage, and the 
     current verified medical expenses incurred by the member); 
     and
       ``(III) not require further reporting or verification of a 
     change in medical expenses if such a change has been 
     anticipated for the certification period.

       ``(7) Excess shelter expense deduction.--
       ``(A) In general.--A household shall be entitled, with 
     respect to expenses other than expenses paid on behalf of the 
     household by a third party, to an excess shelter expense 
     deduction to the extent that the monthly amount expended by a 
     household for shelter exceeds an amount equal to 50 percent 
     of monthly household income after all other applicable 
     deductions have been allowed.
       ``(B) Maximum amount of deduction.-- [[Page S8101]] 
       ``(i) Prior to september 30, 1995.--In the case of a 
     household that does not contain an elderly or disabled 
     individual, during the 15-month period ending September 30, 
     1995, the excess shelter expense deduction shall not exceed--

       ``(I) in the 48 contiguous States and the District of 
     Columbia, $231 per month; and
       ``(II) in Alaska, Hawaii, Guam, and the Virgin Islands of 
     the United States, $402, $330, $280, and $171 per month, 
     respectively.

       ``(ii) After september 30, 1995.--In the case of a 
     household that does not contain an elderly or disabled 
     individual, during the 15-month period ending December 31, 
     1996, the excess shelter expense deduction shall not exceed--

       ``(I) in the 48 contiguous States and the District of 
     Columbia, $247 per month; and
       ``(II) in Alaska, Hawaii, Guam, and the Virgin Islands of 
     the United States, $429, $353, $300, and $182 per month, 
     respectively.

       ``(C) Standard utility allowance.--
       ``(i) In general.--In computing the excess shelter expense 
     deduction, a State agency may use a standard utility 
     allowance in accordance with regulations promulgated by the 
     Secretary, except that a State agency may use an allowance 
     that does not fluctuate within a year to reflect seasonal 
     variations.
       ``(ii) Restrictions on heating and cooling expenses.--An 
     allowance for a heating or cooling expense may not be used in 
     the case of a household that--

       ``(I) does not incur a heating or cooling expense, as the 
     case may be;
       ``(II) does incur a heating or cooling expense but is 
     located in a public housing unit that has central utility 
     meters and charges households, with regard to the expense, 
     only for excess utility costs; or
       ``(III) shares the expense with, and lives with, another 
     individual not participating in the food stamp program, 
     another household participating in the food stamp program, or 
     both, unless the allowance is prorated between the household 
     and the other individual, household, or both.

       ``(iii) Mandatory allowance.--

       ``(I) In general.--A State agency may make the use of a 
     standard utility allowance mandatory for all households with 
     qualifying utility costs if--

       ``(aa) the State agency has developed 1 or more standards 
     that include the cost of heating and cooling and 1 or more 
     standards that do not include the cost of heating and 
     cooling; and
       ``(bb) the Secretary finds that the standards will not 
     result in an increased cost to the Secretary.

       ``(II) Household election.--A State agency that has not 
     made the use of a standard utility allowance mandatory under 
     subclause (I) shall allow a household to switch, at the end 
     of a certification period, between the standard utility 
     allowance and a deduction based on the actual utility costs 
     of the household.

       ``(iv) Availability of allowance to recipients of energy 
     assistance.--

       ``(I) In general.--Subject to subclause (II), if a State 
     agency elects to use a standard utility allowance that 
     reflects heating or cooling costs, the standard utility 
     allowance shall be made available to households receiving a 
     payment, or on behalf of which a payment is made, under the 
     Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 
     et seq.) or other similar energy assistance program, if the 
     household still incurs out-of-pocket heating or cooling 
     expenses in excess of any assistance paid on behalf of the 
     household to an energy provider.
       ``(II) Separate allowance.--A State agency may use a 
     separate standard utility allowance for households on behalf 
     of which a payment described in subclause (I) is made, but 
     may not be required to do so.
       ``(III) States not electing to use separate allowance.--A 
     State agency that does not elect to use a separate allowance 
     but makes a single standard utility allowance available to 
     households incurring heating or cooling expenses (other than 
     a household described in subclause (I) or (II) of 
     subparagraph (C)(ii)) may not be required to reduce the 
     allowance due to the provision (directly or indirectly) of 
     assistance under the Low-Income Home Energy Assistance Act of 
     1981 (42 U.S.C. 8621 et seq.).
       ``(IV) Proration of assistance.--For the purpose of the 
     food stamp program, assistance provided under the Low-Income 
     Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.) 
     shall be considered to be prorated over the entire heating or 
     cooling season for which the assistance was provided.''.

       (b) Conforming Amendment.--Section 11(e)(3) of the Act (7 
     U.S.C. 2020(e)(3)) is amended by striking ``Under rules 
     prescribed'' and all that follows through ``verifies higher 
     expenses''.

     SEC. 109. AMOUNT OF VEHICLE ASSET LIMITATION.

       The first sentence of section 5(g)(2) of the Food Stamp Act 
     of 1977 (7 U.S.C. 2014(g)(2)) is amended by striking 
     ``through September 30, 1995'' and all that follows through 
     ``such date and on'' and inserting ``and shall be adjusted on 
     October 1, 1996, and''.

     SEC. 110. BENEFITS FOR ALIENS.

       Section 5(i) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(i)) is amended--
       (1) in the first sentence of paragraph (1)--
       (A) by inserting ``or who executed such an affidavit or 
     similar agreement to enable the individual to lawfully remain 
     in the United States,'' after ``respect to such 
     individual,''; and
       (B) by striking ``for a period'' and all that follows 
     through the period at the end and inserting ``until the end 
     of the period ending on the later of the date agreed to in 
     the affidavit or agreement or the date that is 5 years after 
     the date on which the individual was first lawfully admitted 
     into the United States following the execution of the 
     affidavit or agreement.''; and
       (2) in paragraph (2)--
       (A) in subparagraph (C)(i), by striking ``of three years 
     after entry into the United States'' and inserting 
     ``determined under paragraph (1)''; and
       (B) in subparagraph (D), by striking ``of three years after 
     such alien's entry into the United States'' and inserting 
     ``determined under paragraph (1)''.

     SEC. 111. DISQUALIFICATION.

       (a) In General.--Section 6(d) of the Food Stamp Act of 1977 
     (7 U.S.C. 2015(d)) is amended by striking ``(d)(1) Unless 
     otherwise exempted by the provisions'' and all that follows 
     through the end of paragraph (1) and inserting the following:
       ``(d) Conditions of Participation.--
       ``(1) Work requirements.--
       ``(A) In general.--No physically and mentally fit 
     individual over the age of 15 and under the age of 60 shall 
     be eligible to participate in the food stamp program if the 
     individual--
       ``(i) refuses, at the time of application and every 12 
     months thereafter, to register for employment in a manner 
     prescribed by the Secretary;
       ``(ii) refuses without good cause to participate in an 
     employment and training program under paragraph (4), to the 
     extent required by the State agency;
       ``(iii) refuses without good cause to accept an offer of 
     employment, at a site or plant not subject to a strike or 
     lockout at the time of the refusal, at a wage not less than 
     the higher of--

       ``(I) the applicable Federal or State minimum wage; or
       ``(II) 80 percent of the wage that would have governed had 
     the minimum hourly rate under section 6(a)(1) of the Fair 
     Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) been 
     applicable to the offer of employment;

       ``(iv) refuses without good cause to provide a State agency 
     with sufficient information to allow the State agency to 
     determine the employment status or the job availability of 
     the individual;
       ``(v) voluntarily and without good cause--

       ``(I) quits a job; or
       ``(II) reduces work effort and, after the reduction, the 
     individual is working less than 30 hours per week; or

       ``(vi) fails to comply with section 20.
       ``(B) Household ineligibility.--If an individual who is the 
     head of a household becomes ineligible to participate in the 
     food stamp program under subparagraph (A), the household 
     shall, at the option of the State agency, become ineligible 
     to participate in the food stamp program for a period, 
     determined by the State agency, that does not exceed the 
     lesser of--
       ``(i) the duration of the ineligibility of the individual 
     determined under subparagraph (C); or
       ``(ii) 180 days.
       ``(C) Duration of ineligibility.--
       ``(i) First violation.--The first time that an individual 
     becomes ineligible to participate in the food stamp program 
     under subparagraph (A), the individual shall remain 
     ineligible until the later of--

       ``(I) the date the individual becomes eligible under 
     subparagraph (A);
       ``(II) the date that is 1 month after the date the 
     individual became ineligible; or
       ``(III) a date determined by the State agency that is not 
     later than 3 months after the date the individual became 
     ineligible.

       ``(ii) Second violation.--The second time that an 
     individual becomes ineligible to participate in the food 
     stamp program under subparagraph (A), the individual shall 
     remain ineligible until the later of--

       ``(I) the date the individual becomes eligible under 
     subparagraph (A);
       ``(II) the date that is 3 months after the date the 
     individual became ineligible; or
       ``(III) a date determined by the State agency that is not 
     later than 6 months after the date the individual became 
     ineligible.

       ``(iii) Third or subsequent violation.--The third or 
     subsequent time that an individual becomes ineligible to 
     participate in the food stamp program under subparagraph (A), 
     the individual shall remain ineligible until the later of--

       ``(I) the date the individual becomes eligible under 
     subparagraph (A);
       ``(II) the date that is 6 months after the date the 
     individual became ineligible;
       ``(III) a date determined by the State agency; or
       ``(IV) at the option of the State agency, permanently.

       ``(D) Administration.--
       ``(i) Good cause.--

       ``(I) Standard.--The Secretary shall determine the meaning 
     of good cause for the purpose of this paragraph.
       ``(II) Procedure.--A State agency shall determine the 
     procedure for determining whether an individual acted with 
     good cause for the purpose of this paragraph.
       ``(III) Adequate child care.--In this paragraph, the term 
     `good cause' includes the lack of adequate child care for a 
     dependent child under the age of 12.

       ``(ii) Voluntary quit.--

       ``(I) Standard.--The Secretary shall determine the meaning 
     of voluntarily quitting for the purpose of this 
     paragraph. [[Page S8102]] 
       ``(II) Procedure.--The Secretary shall determine the 
     procedure for determining whether an individual voluntarily 
     quit for the purpose of this paragraph.

       ``(iii) Determination by state agency.--Subject to clauses 
     (i) and (ii), a State agency shall determine--

       ``(I) the meaning of any term in subparagraph (A);
       ``(II) the procedures for determining whether an individual 
     is in compliance with a requirement under subparagraph (A); 
     and
       ``(III) whether an individual is in compliance with a 
     requirement under subparagraph (A).

       ``(iv) Strike against the government.--For the purpose of 
     subparagraph (A)(v), an employee of the Federal Government, a 
     State, or a political subdivision of a State, who is 
     dismissed for participating in a strike against the Federal 
     Government, the State, or the political subdivision of the 
     State shall be considered to have voluntarily quit without 
     good cause.
       ``(v) Selecting a head of household.--

       ``(I) In general.--For the purpose of this paragraph, the 
     State agency shall allow the household to select any adult 
     parent of a child in the household as the head of the 
     household if all adult household members making application 
     under the food stamp program agree to the selection.
       ``(II) Time for making designation.--A household may 
     designate the head of the household under subclause (I) each 
     time the household is certified for participation in the food 
     stamp program, but may not change the designation during a 
     certification period unless there is a change in the 
     composition of the household.

       ``(vi) Change in head of household.--If the head of a 
     household leaves the household during a period in which the 
     household is ineligible to participate in the food stamp 
     program under subparagraph (B)--

       ``(I) the household shall, if otherwise eligible, become 
     eligible to participate in the food stamp program; and
       ``(II) if the head of the household becomes the head of 
     another household, the household that becomes headed by the 
     individual shall become ineligible to participate in the food 
     stamp program for the remaining period of ineligibility.''.

       (b) Conforming Amendment.--
       (1) The second sentence of section 17(b)(2) of the Act (7 
     U.S.C. 2026(b)(2)) is amended by striking ``6(d)(1)(i)'' and 
     inserting ``6(d)(1)(A)(i)''.
       (2) Section 20 of the Act (7 U.S.C. 2029) is amended by 
     striking subsection (f) and inserting the following:
       ``(f) Disqualification.--An individual or a household may 
     become ineligible under section 6(d)(1) to participate in the 
     food stamp program for failing to comply with this 
     section.''.

     SEC. 112. CARETAKER EXEMPTION.

       Section 6(d)(2) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(d)(2)) is amended by striking subparagraph (B) and 
     inserting the following: ``(B) a parent or other member of a 
     household with responsibility for the care of (i) a dependent 
     child under the age of 6 or any lower age designated by the 
     State agency that is not under the age of 1, or (ii) an 
     incapacitated person;''.

     SEC. 113. EMPLOYMENT AND TRAINING.

       (a) In General.--Section 6(d)(4) of the Food Stamp Act of 
     1977 (7 U.S.C. 2015(d)(4)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``Not later than April 1, 1987, each'' and 
     inserting ``Each'';
       (B) by striking ``and approved by the Secretary''; and
       (C) by striking ``program in gaining skills, training, or 
     experience'' and inserting ``program, but not a State program 
     funded under part A of title IV of the Social Security Act 
     (42 U.S.C. 601 et seq.), in gaining skills, training, work, 
     or experience'';
       (2) in subparagraph (B)--
       (A) in the matter preceding clause (i)--
       (i) by inserting ``with terms and conditions set by a State 
     agency'' after ``means a program''; and
       (ii) by striking the colon at the end and inserting the 
     following: ``, except that the State agency shall retain the 
     option to apply employment requirements prescribed under this 
     subparagraph to a program applicant at the time of 
     application:'';
       (B) in clause (i), by striking ``with terms and 
     conditions'' and all that follows through ``time of 
     application'';
       (C) in clause (iv)--
       (i) by striking subclauses (I) and (II); and
       (ii) by redesignating subclauses (III) and (IV) as 
     subclauses (I) and (II), respectively; and
       (D) in clause (vii), by striking ``As approved'' and all 
     that follows through ``other employment'' and inserting 
     ``Other employment'';
       (3) in subparagraph (D)--
       (A) in clause (i), by striking ``to which the application'' 
     and all that follows through ``30 days or less'';
       (B) in clause (ii), by striking ``but with respect'' and 
     all that follows through ``child care''; and
       (C) in clause (iii), by striking ``, on the basis of'' and 
     all that follows through ``clause (ii)'' and inserting ``the 
     exemption continues to be valid'';
       (4) in subparagraph (E), by striking the third sentence;
       (5) in subparagraph (G)--
       (A) by striking ``(G)(i) The State'' and inserting ``(G) 
     The State''; and
       (B) by striking clause (ii);
       (6) in subparagraph (H), by striking ``(H)(i) The 
     Secretary'' and all that follows through ``(ii) Federal 
     funds'' and inserting ``(H) Federal funds'';
       (7) in subparagraph (I)(i)--
       (A) in the matter preceding subclause (I), by inserting 
     ``not'' after ``paragraph,''; and
       (B) in subclause (II), by striking ``, or was in 
     operation,'' and all that follows through ``Social Security 
     Act'' and inserting the following: ``), except that no such 
     payment or reimbursement shall exceed the applicable local 
     market rate'';
       (8)(A) by striking subparagraphs (K) and (L); and
       (B) by redesignating subparagraphs (M) and (N) as 
     subparagraphs (K) and (L), respectively; and
       (9) in subparagraph (K) (as redesignated by paragraph 
     (8)(B))--
       (A) by striking ``(K)(i) The Secretary'' and inserting 
     ``(K) The Secretary''; and
       (B) by striking clause (ii).
       (b) Funding.--Section 16(h) of the Act (7 U.S.C. 2025(h)) 
     is amended by striking ``(h)(1)(A) The Secretary'' and all 
     that follows through the end of paragraph (1) and inserting 
     the following:
       ``(h) Funding of Employment and Training Programs.--
       ``(1) In general.--
       ``(A) Amounts.--To carry out employment and training 
     programs, the Secretary shall reserve for allocation to State 
     agencies from funds made available for each fiscal year under 
     section 18(a)(1) the amount of--
       ``(i) for fiscal year 1996, $77,000,000;
       ``(ii) for fiscal year 1997, $80,000,000;
       ``(iii) for fiscal year 1998, $83,000,000;
       ``(iv) for fiscal year 1999, $86,000,000; and
       ``(v) for fiscal year 2000, $89,000,000.
       ``(B) Allocation.--The Secretary shall allocate the amounts 
     reserved under subparagraph (A) among the State agencies 
     using a reasonable formula (as determined by the Secretary) 
     that gives consideration to the population in each State 
     affected by section 6(n).
       ``(C) Reallocation.--
       ``(i) Notification.--A State agency shall promptly notify 
     the Secretary if the State agency determines that the State 
     agency will not expend all of the funds allocated to the 
     State agency under subparagraph (B).
       ``(ii) Reallocation.--On notification under clause (i), the 
     Secretary shall reallocate the funds that the State agency 
     will not expend as the Secretary considers appropriate and 
     equitable.
       ``(D) Minimum allocation.--Notwithstanding subparagraphs 
     (A) through (C), the Secretary shall ensure that each State 
     agency operating an employment and training program shall 
     receive not less than $50,000 in each fiscal year.''.
       (c) Reports.--Section 16(h) of the Act (7 U.S.C. 2025(h)) 
     is amended--
       (1) in paragraph (5)--
       (A) by striking ``(5)(A) The Secretary'' and inserting 
     ``(5) The Secretary''; and
       (B) by striking subparagraph (B); and
       (2) by striking paragraph (6).

     SEC. 114. COMPARABLE TREATMENT FOR DISQUALIFICATION.

       (a) In General.--Section 6 of the Food Stamp Act of 1977 (7 
     U.S.C. 2015) is amended by adding at the end the following:
       ``(i) Comparable Treatment for Disqualification.--
       ``(1) In general.--If a disqualification is imposed on a 
     member of a household for failure of that member to perform 
     an action required under a Federal, State, or local law 
     relating to welfare or a public assistance program, the State 
     agency may impose the same disqualification on the member of 
     the household under the food stamp program.
       ``(2) Application after disqualification period.--A member 
     of a household disqualified under paragraph (1) may, after 
     the disqualification period has expired, apply for benefits 
     under this Act and shall be treated as a new applicant.''.
       (b) State plan provisions.--Section 11(e) of the Act (7 
     U.S.C. 2020(e)) is amended--
       (1) in paragraph (24), by striking ``and'' at the end;
       (2) in paragraph (25), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(26) the guidelines the State agency uses in carrying out 
     section 6(i).''.
       (c) Conforming Amendment.--Section 6(d)(2)(A) of the Act (7 
     U.S.C. 2015(d)(2)(A)) is amended by striking ``that is 
     comparable to a requirement of paragraph (1)''.

     SEC. 115. COOPERATION WITH CHILD SUPPORT AGENCIES.

       Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) (as 
     amended by section 114) is further amended by adding at the 
     end the following:
       ``(j) Custodial Parent's Cooperation With Child Support 
     Agencies.--
       ``(1) In general.--At the option of a State agency, subject 
     to paragraphs (2) and (3), no natural or adoptive parent or 
     other individual (collectively referred to in this subsection 
     as `the individual') who is living with and exercising 
     parental control over a child under the age of 18 who has an 
     absent parent shall be eligible to participate in the food 
     stamp program unless the individual cooperates with the State 
     agency administering the program established under part D of 
     title IV of the Social Security Act (42 U.S.C. 651 et seq.)--
       ``(A) in establishing the paternity of the child (if the 
     child is born out of wedlock); and
       ``(B) in obtaining support for-- [[Page S8103]] 
       ``(i) the child; or
       ``(ii) the individual and the child.
       ``(2) Good cause for noncooperation.--Paragraph (1) shall 
     not apply to the individual if good cause is found for 
     refusing to cooperate, as determined by the State agency in 
     accordance with standards prescribed by the Secretary in 
     consultation with the Secretary of Health and Human Services. 
     The standards shall take into consideration circumstances 
     under which cooperation may be against the best interests of 
     the child.
       ``(3) Fees.--Paragraph (1) shall not require the payment of 
     a fee or other cost for services provided under part D of 
     title IV of the Social Security Act (42 U.S.C. 651 et seq.).
       ``(k) Non-Custodial Parent's Cooperation With Child Support 
     Agencies.--
       ``(1) In general.--At the option of a State agency, subject 
     to paragraphs (2) and (3), a putative non-custodial parent of 
     a child under the age of 18 (referred to in this subsection 
     as `the individual') shall not be eligible to participate in 
     the food stamp program if the individual refuses to cooperate 
     with the State agency administering the program established 
     under part D of title IV of the Social Security Act (42 
     U.S.C. 651 et seq.)--
       ``(A) in establishing the paternity of the child (if the 
     child is born out of wedlock); and
       ``(B) in providing support for the child.
       ``(2) Refusal to cooperate.--
       ``(A) Guidelines.--The Secretary, in consultation with the 
     Secretary of Health and Human Services, shall develop 
     guidelines on what constitutes a refusal to cooperate under 
     paragraph (1).
       ``(B) Procedures.--The State agency shall develop 
     procedures, using guidelines developed under subparagraph 
     (A), for determining whether an individual is refusing to 
     cooperate under paragraph (1).
       ``(3) Fees.--Paragraph (1) shall not require the payment of 
     a fee or other cost for services provided under part D of 
     title IV of the Social Security Act (42 U.S.C. 651 et seq.).
       ``(4) Privacy.--The State agency shall provide safeguards 
     to restrict the use of information collected by a State 
     agency administering the program established under part D of 
     title IV of the Social Security Act (42 U.S.C. 651 et seq.) 
     to purposes for which the information is collected.''.

     SEC. 116. DISQUALIFICATION FOR CHILD SUPPORT ARREARS.

       Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) (as 
     amended by section 115) is further amended by adding at the 
     end the following:
       ``(l) Disqualification for Child Support Arrears.--
       ``(1) In general.--At the option of a State agency, except 
     as provided in paragraph (2), no individual shall be eligible 
     to participate in the food stamp program as a member of any 
     household during any month that the individual is delinquent 
     in any payment due under a court order for the support of a 
     child of the individual.
       ``(2) Exceptions.--Paragraph (1) shall not apply if--
       ``(A) a court is allowing the individual to delay payment; 
     or
       ``(B) the individual is complying with a payment plan 
     approved by a court or the State agency designated under part 
     D of title IV of the Social Security Act (42 U.S.C. 651 et 
     seq.) to provide support for the child of the individual.''.

     SEC. 117. PERMANENT DISQUALIFICATION FOR PARTICIPATING IN 2 
                   OR MORE STATES.

       Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) (as 
     amended by section 116) is further amended by adding at the 
     end the following:
       ``(m) Permanent Disqualification for Participating in 2 or 
     More States.--An individual shall be permanently ineligible 
     to participate in the food stamp program as a member of any 
     household if the individual is found by a State agency to 
     have made, or is convicted in Federal or State court of 
     having made, a fraudulent statement or representation with 
     respect to the place of residence of the individual in order 
     to receive benefits simultaneously from 2 or more States 
     under the food stamp program.''.

     SEC. 118. WORK REQUIREMENT.

       (a) In General.--Section 6 of the Food Stamp Act of 1977 (7 
     U.S.C. 2015) (as amended by section 117) is further amended 
     by adding at the end the following:
       ``(n) Work Requirement.--
       ``(1) Definition of work program.--In this subsection, the 
     term `work program' means--
       ``(A) a program under the Job Training Partnership Act (29 
     U.S.C. 1501 et seq.);
       ``(B) a program under section 236 of the Trade Act of 1974 
     (19 U.S.C. 2296); or
       ``(C) a program of employment or training operated or 
     supervised by a State or political subdivision of a State 
     that meets standards approved by the Governor of the State, 
     including a program under section 6(d)(4) other than a job 
     search program or a job search training program under clause 
     (i) or (ii) of section 6(d)(4)(B).
       ``(2) Work requirement.--No individual shall be eligible to 
     participate in the food stamp program as a member of any 
     household if, during the preceding 12 months, the individual 
     received food stamp benefits for not less than 6 months 
     during which the individual did not--
       ``(A) work 20 hours or more per week, averaged monthly; or
       ``(B) participate in and comply with the requirements of a 
     work program for 20 hours or more per week, as determined by 
     the State agency.
       ``(3) Exception.--Paragraph (2) shall not apply to an 
     individual if the individual is--
       ``(A) under 18 or over 50 years of age;
       ``(B) medically certified as physically or mentally unfit 
     for employment;
       ``(C) a parent or other member of a household with a 
     dependent child; or
       ``(D) otherwise exempt under section 6(d)(2).
       ``(4) Waiver.--
       ``(A) In general.--On the request of a State agency, the 
     Secretary may waive the applicability of paragraph (2) to any 
     group of individuals in the State if the Secretary makes a 
     determination that the area in which the individuals reside--
       ``(i) has an unemployment rate of over 8 percent; or
       ``(ii) does not have a sufficient number of jobs to provide 
     employment for the individuals.
       ``(B) Report.--The Secretary shall report the basis for a 
     waiver under subparagraph (A) to the Committee on Agriculture 
     of the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall become effective on July 1, 1996.

     SEC. 119. ELECTRONIC BENEFIT TRANSFERS.

       Section 7 of the Food Stamp Act of 1977 (7 U.S.C. 2016) is 
     amended by adding at the end the following:
       ``(j) Electronic Benefit Transfers.--
       ``(1) Applicable law.--
       ``(A) In general.--Disclosures, protections, 
     responsibilities, and remedies established by the Federal 
     Reserve Board under section 904 of the Electronic Fund 
     Transfer Act (15 U.S.C. 1693b) shall not apply to benefits 
     under this Act delivered through any electronic benefit 
     transfer system.
       ``(B) Definition of electronic benefit transfer system.--In 
     this paragraph, the term `electronic benefit transfer system' 
     means a system under which a governmental entity distributes 
     benefits under this Act or other benefits or payments by 
     establishing accounts to be accessed by recipients of the 
     benefits electronically, including through the use of an 
     automated teller machine or an intelligent benefit card.
       ``(2) Charging for electronic benefit transfer card 
     replacement.--
       ``(A) In general.--A State agency may charge an individual 
     for the cost of replacing a lost or stolen electronic benefit 
     transfer card.
       ``(B) Reducing allotment.--A State agency may collect a 
     charge imposed under subparagraph (A) by reducing the monthly 
     allotment of the household of which the individual is a 
     member.''.

     SEC. 120. MINIMUM BENEFIT.

       The proviso in section 8(a) of the Food Stamp Act of 1977 
     (7 U.S.C. 2017(a)) is amended by striking ``, and shall be 
     adjusted'' and all that follows through ``$5''.

     SEC. 121. BENEFITS ON RECERTIFICATION.

       Section 8(c)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
     2017(c)(2)(B)) is amended by striking ``of more than one 
     month''.

     SEC. 122. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED 
                   HOUSEHOLDS.

       Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2017(c)) is amended by striking paragraph (3) and inserting 
     the following:
       ``(3) Optional combined allotment for expedited 
     households.--A State agency may provide to an eligible 
     household applying after the 15th day of a month, in lieu of 
     the initial allotment of the household and the regular 
     allotment of the household for the following month, an 
     allotment that is the aggregate of the initial allotment and 
     the first regular allotment, which shall be provided in 
     accordance with section 11(e)(3) in the case of a household 
     that is not entitled to expedited service or in accordance 
     with paragraphs (3) and (9) of section 11(e) in the case of a 
     household that is entitled to expedited service.''.

     SEC. 123. FAILURE TO COMPLY WITH OTHER WELFARE AND PUBLIC 
                   ASSISTANCE PROGRAMS.

       Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is 
     amended by striking subsection (d) and inserting the 
     following:
       ``(d) Reduction of Public Assistance Benefits.--
       ``(1) In general.--If the benefits of a household are 
     reduced under a Federal, State, or local law relating to 
     welfare or a public assistance program for the failure to 
     perform an action required under the law or program, for the 
     duration of the reduction--
       ``(A) the household may not receive an increased allotment 
     as the result of a decrease in the income of the household to 
     the extent that the decrease is the result of the reduction; 
     and
       ``(B) the State agency may reduce the allotment of the 
     household by not more than 25 percent.
       ``(2) Optional method.--In carrying out paragraph (1), a 
     State agency may consider, for the duration of a reduction 
     referred to under paragraph (1), the benefits of the 
     household before the reduction as income of the household 
     after the reduction.''.
     SEC. 124. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN INSTITUTIONS.

       Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is 
     amended by adding at the end the following:
       ``(f) Allotments for Households Residing in Institutions.-- 
     [[Page S8104]] 
       ``(1) In general.--In the case of an individual who resides 
     in a homeless shelter, or in an institution or center for the 
     purpose of a drug or alcoholic treatment program, described 
     in the last sentence of section 3(i), a State agency may 
     provide an allotment for the individual to--
       ``(A) the institution as an authorized representative for 
     the individual for a period that is less than 1 month; and
       ``(B) the individual, if the individual leaves the 
     institution.
       ``(2) Direct payment.--A State agency may require an 
     individual referred to in paragraph (1) to designate the 
     shelter, institution, or center in which the individual 
     resides as the authorized representative of the individual 
     for the purpose of receiving an allotment.''.

     SEC. 125. OPERATION OF FOOD STAMP OFFICES.

       Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is 
     amended--
       (1) in subsection (e)--
       (A) by striking paragraph (2) and inserting the following:
       ``(2)(A) that the State agency shall establish procedures 
     governing the operation of food stamp offices that the State 
     agency determines best serve households in the State, 
     including households with special needs, such as households 
     with elderly or disabled members, households in rural areas 
     with low-income members, homeless individuals, households 
     residing on reservations, and households in which a 
     substantial number of members speak a language other than 
     English.
       ``(B) In carrying out subparagraph (A), a State agency--
       ``(i) shall provide timely, accurate, and fair service to 
     applicants for, and participants in, the food stamp program;
       ``(ii) shall permit an applicant household to apply to 
     participate in the program on the same day that the household 
     first contacts a food stamp office in person during office 
     hours;
       ``(iii) shall consider an application filed on the date the 
     applicant submits an application that contains the name, 
     address, and signature of the applicant; and
       ``(iv) may establish operating procedures that vary for 
     local food stamp offices to reflect regional and local 
     differences within the State;'';
       (B) in paragraph (3)--
       (i) by striking ``shall--'' and all that follows through 
     ``provide each'' and inserting ``shall provide each''; and
       (ii) by striking ``(B) assist'' and all that follows 
     through ``representative of the State agency.'';
       (C) by striking paragraph (14) and inserting the following:
       ``(14) the standards and procedures used by the State 
     agency under section 6(d)(1)(D) to determine whether an 
     individual is eligible to participate under section 
     6(d)(1)(A);''; and
       (D) by striking paragraph (25) and inserting the following:
       ``(25) a description of the work supplementation or support 
     program, if any, carried out by the State agency under 
     section 16(b).''; and
       (2) in subsection (i)--
       (A) by striking ``(i) Notwithstanding'' and all that 
     follows through ``(2)'' and inserting the following:
       ``(i) Application and Denial Procedures.--
       ``(1) Application procedures.--Notwithstanding any other 
     provision of law,''; and
       (B) by striking ``; (3) households'' and all that follows 
     through ``title IV of the Social Security Act. No'' and 
     inserting a period and the following:
       ``(2) Denial and termination.--Other than in a case of 
     disqualification as a penalty for failure to comply with a 
     public assistance program rule or regulation, no''.

     SEC. 126. STATE EMPLOYEE AND TRAINING STANDARDS.

       Section 11(e)(6) of the Food Stamp Act of 1977 (7 U.S.C. 
     2020(e)(6)) is amended--
       (1) by striking ``(A)''; and
       (2) by striking subparagraphs (B) through (E).

     SEC. 127. EXPEDITED COUPON SERVICE.

       Section 11(e)(9) of the Food Stamp Act of 1977 (7 U.S.C. 
     2020(e)(9)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``five days'' and inserting ``7 business 
     days''; and
       (B) by inserting ``and'' at the end;
       (2) by striking subparagraphs (B) and (C);
       (3) by redesignating subparagraph (D) as subparagraph (B); 
     and
       (4) in subparagraph (B) (as redesignated by paragraph (3)), 
     by striking ``, (B), or (C)''.

     SEC. 128. FAIR HEARINGS.

       Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is 
     amended by adding at the end the following:
       ``(p) Withdrawing Fair Hearing Requests.--A household may 
     withdraw, orally or in writing, a request by the household 
     for a fair hearing under subsection (e)(10). If the 
     withdrawal request is an oral request, the State agency shall 
     provide a written notice to the household confirming the 
     request and providing the household with an opportunity to 
     request a hearing.''.

     SEC. 129. INCOME AND ELIGIBILITY VERIFICATION SYSTEM.

       Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) 
     (as amended by section 128) is further amended by adding at 
     the end the following:
       ``(q) State Verification Option.--Notwithstanding any other 
     provision of law, a State agency shall not be required to use 
     an income and eligibility verification system established 
     under section 1137 of the Social Security Act (42 U.S.C. 
     1320b-7).''.

     SEC. 130. COLLECTION OF OVERISSUANCES.

       (a) In General.--Section 13 of the Food Stamp Act of 1977 
     (7 U.S.C. 2022) is amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Collection of Overissuances.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, a State agency shall collect any overissuance of 
     coupons issued to a household by--
       ``(A) reducing the allotment of the household;
       ``(B) withholding unemployment compensation from a member 
     of the household under subsection (c);
       ``(C) recovering from Federal pay or a Federal income tax 
     refund under subsection (d); or
       ``(D) any other means.
       ``(2) Cost effectiveness.--Paragraph (1) shall not apply if 
     the State agency demonstrates to the satisfaction of the 
     Secretary that all of the means referred to in paragraph (1) 
     are not cost effective.
       ``(3) Hardships.--A State agency may not use an allotment 
     reduction under paragraph (1)(A) as a means collecting an 
     overissuance from a household if the allotment reduction 
     would cause a hardship on the household, as determined by the 
     State agency.
       ``(4) Maximum reduction absent fraud.--If a household 
     received an overissuance of coupons without any member of the 
     household being found ineligible to participate in the 
     program under section 6(b)(1) and a State agency elects to 
     reduce the allotment of the household under paragraph (1)(A), 
     the State agency shall reduce the monthly allotment of the 
     household under paragraph (1)(A) by the greater of--
       ``(A) 10 percent of the monthly allotment of the household; 
     or
       ``(B) $10.
       ``(5) Procedures.--A State agency shall collect an 
     overissuance of coupons issued to a household under paragraph 
     (1) in accordance with requirements established by the State 
     agency for providing notice, electing a means of payment, and 
     establishing a time schedule for payment.''; and
       (2) in subsection (d)--
       (A) by striking ``as determined under subsection (b) and 
     except for claims arising from an error of the State 
     agency,'' and inserting ``, as determined under subsection 
     (b)(1),''; and
       (B) by inserting before the period at the end the 
     following: ``or a Federal income tax refund as authorized by 
     section 3720A of title 31, United States Code''.
       (b) Conforming Amendment.--Section 11(e)(8) of the Act (7 
     U.S.C. 2020(e)(8)) is amended--
       (1) by striking ``and excluding claims'' and all that 
     follows through ``such section,''; and
       (2) by inserting before the semicolon at the end the 
     following: ``or a Federal income tax refund as authorized by 
     section 3720A of title 31, United States Code''.

     SEC. 131. TERMINATION OF FEDERAL MATCH FOR OPTIONAL 
                   INFORMATION ACTIVITIES.

       (a) In General.--Section 16(a) of the Food Stamp Act of 
     1977 (7 U.S.C. 2025(a)) is amended--
       (1) by striking paragraph (4); and
       (2) by redesignating paragraphs (5) through (8) as 
     paragraphs (4) through (7), respectively.
       (b) Conforming Amendment.--Section 16(g) of the Act (7 
     U.S.C. 2025(g)) is amended by striking ``an amount equal to'' 
     and all that follows through ``1991, of'' and inserting ``the 
     amount provided under subsection (a)(5) for''.

     SEC. 132. STANDARDS FOR ADMINISTRATION.

       (a) In General.--Section 16 of the Food Stamp Act of 1977 
     (7 U.S.C. 2025) is amended by striking subsection (b).
       (b) Conforming Amendments.--
       (1) The first sentence of section 11(g) of the Act (7 
     U.S.C. 2020(g)) is amended by striking ``the Secretary's 
     standards for the efficient and effective administration of 
     the program established under section 16(b)(1) or''.
       (2) Section 16(c)(1)(B) of the Act (7 U.S.C. 2025(c)(1)(B)) 
     is amended by striking ``pursuant to subsection (b)''.

     SEC. 133. WORK SUPPLEMENTATION OR SUPPORT PROGRAM.

       Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025) 
     (as amended by section 132(a)) is further amended by 
     inserting after subsection (a) the following:
       ``(b) Work Supplementation or Support Program.--
       ``(1) Definition.--In this subsection, the term `work 
     supplementation or support program' means a program in which, 
     as determined by the Secretary, public assistance (including 
     any benefits provided under a program established by the 
     State and the food stamp program) is provided to an employer 
     to be used for hiring and employing a new employee who is a 
     public assistance recipient.
       ``(2) Program.--A State agency may elect to use amounts 
     equal to the allotment that would otherwise be allotted to a 
     household under the food stamp program, but for the operation 
     of this subsection, for the purpose of subsidizing or 
     supporting jobs under a work supplementation or support 
     program established by the State.
       ``(3) Procedure.--If a State agency makes an election under 
     paragraph (2) and identifies each household that participates 
     in the [[Page S8105]] food stamp program that contains an 
     individual who is participating in the work supplementation 
     or support program--
       ``(A) the Secretary shall pay to the State agency an amount 
     equal to the value of the allotment that the household would 
     be eligible to receive but for the operation of this 
     subsection;
       ``(B) the State agency shall expend the amount paid under 
     subparagraph (A) in accordance with the work supplementation 
     or support program in lieu of providing the allotment that 
     the household would receive but for the operation of this 
     subsection;
       ``(C) for purposes of--
       ``(i) sections 5 and 8(a), the amount received under this 
     subsection shall be excluded from household income and 
     resources; and
       ``(ii) section 8(b), the amount received under this 
     subsection shall be considered to be the value of an 
     allotment provided to the household; and
       ``(D) the household shall not receive an allotment from the 
     State agency for the period during which the member continues 
     to participate in the work supplementation or support 
     program.
       ``(4) Other work requirements.--No individual shall be 
     excused, by reason of the fact that a State has a work 
     supplementation or support program, from any work requirement 
     under section 6(d), except during the periods in which the 
     individual is employed under the work supplementation or 
     support program.
       ``(5) Maximum length of participation.--A work 
     supplementation or support program may not allow the 
     participation of any individual for longer than 6 months, 
     unless the Secretary approves a longer period.''.

     SEC. 134. WAIVER AUTHORITY.

       Section 17(b)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(b)(1)(A)) is amended--
       (1) by striking ``benefits to eligible households, 
     including'' and inserting the following: ``benefits to 
     eligible households. The Secretary may waive the requirements 
     of this Act to the extent necessary to conduct a pilot or 
     experimental project, including a project designed to test 
     innovative welfare reform, promote work, and allow conformity 
     with other Federal, State, and local government assistance 
     programs, except that a project involving the payment of 
     benefits in the form of cash shall maintain the average value 
     of allotments for affected households as a group. Pilot or 
     experimental projects may include''; and
       (2) by striking ``The Secretary may waive'' and all that 
     follows through ``sections 5 and 8 of this Act.''.

     SEC. 135. AUTHORIZATION OF PILOT PROJECTS.

       The last sentence of section 17(b)(1)(A) of the Food Stamp 
     Act of 1977 (7 U.S.C. 2026(b)(1)(A)) is amended by striking 
     ``1995'' and inserting ``2000''.

     SEC. 136. RESPONSE TO WAIVERS.

       Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(b)(1)) is amended by adding at the end the following:
       ``(C) Response to waivers.--
       ``(i) Response.--Not later than 60 days after the date of 
     receiving a request for a waiver under subparagraph (A), the 
     Secretary shall provide a response that--

       ``(I) approves the waiver request;
       ``(II) denies the waiver request and explains any 
     modification needed for approval of the waiver request;
       ``(III) denies the waiver request and explains the grounds 
     for the denial; or
       ``(IV) requests clarification of the waiver request.

       ``(ii) Failure to respond.--If the Secretary does not 
     provide a response under clause (i) not later than 60 days 
     after receiving a request for a waiver, the waiver shall be 
     considered approved.
       ``(iii) Notice of denial.--On denial of a waiver request 
     under clause (i)(III), the Secretary shall provide a copy of 
     the waiver request and the grounds for the denial to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate.''.

     SEC. 137. PRIVATE SECTOR EMPLOYMENT INITIATIVES.

       Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is 
     amended by adding at the end the following:
       ``(m) Private Sector Employment Initiatives.--
       ``(1) Election to participate.--
       ``(A) In general.--Subject to the other provisions of this 
     subsection, a State may elect to carry out a private sector 
     employment initiative program under this subsection.
       ``(B) Requirement.--A State shall be eligible to carry out 
     a private sector employment initiative under this subsection 
     only if not less than 50 percent of the households that 
     received food stamp benefits during the summer of 1993 also 
     received benefits under a State program funded under part A 
     of title IV of the Social Security Act (42 U.S.C. 601 et 
     seq.) during the summer of 1993.
       ``(2) Procedure.--A State that has elected to carry out a 
     private sector employment initiative under paragraph (1) may 
     use amounts equal to the food stamp allotments that would 
     otherwise be allotted to a household under the food stamp 
     program, but for the operation of this subsection, to provide 
     cash benefits in lieu of the food stamp allotments to the 
     household if the household is eligible under paragraph (3).
       ``(3) Eligibility.--A household shall be eligible to 
     receive cash benefits under paragraph (2) if an adult member 
     of the household--
       ``(A) has worked in unsubsidized employment in the private 
     sector for not less than the preceding 90 days;
       ``(B) has earned not less than $350 per month from the 
     employer referred to in subparagraph (A) for not less than 
     the preceding 90 days;
       ``(C)(i) is eligible to receive benefits under a State 
     program funded under part A of title IV of the Social 
     Security Act (42 U.S.C. 601 et seq.); or
       ``(ii) was eligible to receive benefits under a State 
     program funded under part A of title IV of the Social 
     Security Act (42 U.S.C. 601 et seq.) at the time the member 
     first received cash benefits under this subsection and is no 
     longer eligible for the State program because of earned 
     income;
       ``(D) is continuing to earn not less than $350 per month 
     from the employment referred to in subparagraph (A); and
       ``(E) elects to receive cash benefits in lieu of food stamp 
     benefits under this subsection.
       ``(4) Evaluation.--A State that operates a program under 
     this subsection for 2 years shall provide to the Secretary a 
     written evaluation of the impact of cash assistance under 
     this subsection. The State agency shall determine the content 
     of the evaluation.''.

     SEC. 138. REAUTHORIZATION OF APPROPRIATIONS.

       The first sentence of section 18(a)(1) of the Food Stamp 
     Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by striking 
     ``1995'' and inserting ``2000''.

     SEC. 139. REAUTHORIZATION OF PUERTO RICO BLOCK GRANT.

       The first sentence of section 19(a)(1)(A) of the Food Stamp 
     Act of 1977 (7 U.S.C. 2028(a)(1)(A)) is amended by striking 
     ``$974,000,000'' and all that follows through ``fiscal year 
     1995'' and inserting the following: ``$1,143,000,000 for each 
     of fiscal years 1995 and 1996, $1,182,000,000 for fiscal year 
     1997, $1,223,000,000 for fiscal year 1998, $1,266,000,000 for 
     fiscal year 1999, and $1,310,000,000 for fiscal year 2000''

     SEC. 140. SIMPLIFIED FOOD STAMP PROGRAM.

       (a) In General.--The Food Stamp Act of 1977 (7 U.S.C. 2011 
     et seq.) is amended by adding at the end the following:

     ``SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.

       ``(a) Election.--Subject to subsection (c), a State agency 
     may elect to carry out a Simplified Food Stamp Program 
     (referred to in this section as a `Program') under this 
     section.
       ``(b) Operation of Program.--
       ``(1) In general.--If a State agency elects to carry out a 
     Program, within the State or a political subdivision of the 
     State--
       ``(A) a household in which all members receive assistance 
     under a State program funded under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et seq.) shall 
     automatically be eligible to participate in the Program; and
       ``(B) subject to subsection (e), benefits under the Program 
     shall be determined under rules and procedures established by 
     the State under--
       ``(i) a State program funded under part A of title IV of 
     the Social Security Act (42 U.S.C. 601 et seq.);
       ``(ii) the food stamp program; or
       ``(iii) a combination of a State program funded under part 
     A of title IV of the Social Security Act (42 U.S.C. 601 et 
     seq.) and the food stamp program.
       ``(2) Shelter standard.--The State agency may elect to 
     apply 1 shelter standard to a household that receives a 
     housing subsidy and another shelter standard to a household 
     that does not receive the subsidy.
       ``(c) Approval of Program.--
       ``(1) State plan.--A State agency may not operate a Program 
     unless the Secretary approves a State plan for the operation 
     of the Program under paragraph (2).
       ``(2) Approval of plan.--
       ``(A) In general.--The Secretary shall approve any State 
     plan to carry out a Program if the Secretary determines that 
     the plan--
       ``(i) complies with this section; and
       ``(ii) would not increase Federal costs incurred under this 
     Act.
       ``(B) Definition of federal costs.--In this section, the 
     term `Federal costs' does not include any Federal costs 
     incurred under section 17.
       ``(d) Increased Federal Costs.--
       ``(1) Determination.--
       ``(A) In general.--The Secretary shall determine whether a 
     Program being carried out by a State agency is increasing 
     Federal costs under this Act.
       ``(B) No excluded households.--In making a determination 
     under subparagraph (A), the Secretary shall not require the 
     State agency to collect or report any information on 
     households not included in the Program.
       ``(C) Alternative accounting periods.--The Secretary may 
     approve the request of a State agency to apply alternative 
     accounting periods to determine if Federal costs do not 
     exceed the Federal costs had the State agency not elected to 
     carry out the Program.
       ``(2) Notification.--If the Secretary determines that the 
     Program has increased Federal costs under this Act for any 
     fiscal year, the Secretary shall notify the State agency not 
     later than January 1 of the immediately succeeding fiscal 
     year.
       ``(3) Return of funds.--
       ``(A) In general.--If the Secretary determines that the 
     Program has increased Federal costs under this Act for a 2-
     year period, including a fiscal year for which notice was 
     [[Page S8106]] given under paragraph (2) and an immediately 
     succeeding fiscal year, the State agency shall pay to the 
     Treasury of the United States the amount of the increased 
     costs.
       ``(B) Enforcement.--If the State agency does not pay an 
     amount due under subparagraph (A) on a date that is not later 
     than 90 days after the date of the determination, the 
     Secretary shall reduce amounts otherwise due to the State 
     agency for administrative costs under section 16(a).
       ``(e) Rules and Procedures.--
       ``(1) In general.--Except as provided by paragraph (2), a 
     State may apply--
       ``(A) the rules and procedures established by the State 
     under--
       ``(i) the State program funded under part A of title IV of 
     the Social Security Act (42 U.S.C. 601 et seq.); or
       ``(ii) the food stamp program; or
       ``(B) the rules and procedures of 1 of the programs to 
     certain matters and the rules and procedures of the other 
     program to all remaining matters.
       ``(2) Standardized deductions.--The State may standardize 
     the deductions provided under section 5(e). In developing the 
     standardized deduction, the State shall give consideration to 
     the work expenses, dependent care costs, and shelter costs of 
     participating households.
       ``(3) Requirements.--In operating a Program, the State 
     shall comply with--
       ``(A) subsections (a) through (g) of section 7;
       ``(B) section 8(a), except that the income of a household 
     may be determined under a State program funded under part A 
     of title IV of the Social Security Act (42 U.S.C. 601 et 
     seq.);
       ``(C) subsections (b) and (d) of section 8;
       ``(D) subsections (a), (c), (d), and (n) of section 11;
       ``(E) paragraph (3) of section 11(e), to the extent that 
     the paragraph requires that an eligible household be 
     certified and receive an allotment for the period of 
     application not later than 30 days after filing an 
     application;
       ``(F) paragraphs (8), (9), (12), (17), (19), (21), and (27) 
     of section 11(e);
       ``(G) section 11(e)(10) or a comparable requirement 
     established by the State under a State program funded under 
     part A of title IV of the Social Security Act (42 U.S.C. 601 
     et seq.); and
       ``(H) section 16.''.
       (b) State Plan Provisions.--Section 11(e) of the Act (7 
     U.S.C. 2020(e)) (as amended by section 114(b)) is further 
     amended--
       (1) in paragraph (25), by striking ``and'' at the end;
       (2) in paragraph (26), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(27) the plans of the State agency for operating, at the 
     election of the State, a program under section 24, 
     including--
       ``(A) the rules and procedures to be followed by the State 
     to determine food stamp benefits;
       ``(B) how the State will address the needs of households 
     that experience high shelter costs in relation to the incomes 
     of the households; and
       ``(C) a description of the method by which the State will 
     carry out a quality control system under section 16(c).''.
       (c) Conforming Amendments.--
       (1) Section 8 of the Act (7 U.S.C. 2017) (as amended by 
     section 124) is further amended--
       (A) by striking subsection (e); and
       (B) by redesignating subsection (f) as subsection (e).
       (2) Section 17 of the Act (7 U.S.C. 2026) (as amended by 
     section 137) is further amended--
       (A) by striking subsection (i); and
       (B) by redesignating subsections (j) through (m) as 
     subsections (i) through (l), respectively.

     SEC. 141. EFFECTIVE DATE.

       Except as otherwise provided in this title, this title and 
     the amendments made by this title shall become effective on 
     October 1, 1995.
                   TITLE II--CHILD NUTRITION PROGRAMS
                    Subtitle A--Reimbursement Rates

     SEC. 201. TERMINATION OF ADDITIONAL PAYMENT FOR LUNCHES 
                   SERVED IN HIGH FREE AND REDUCED PRICE 
                   PARTICIPATION SCHOOLS.

       (a) In General.--Section 4(b)(2) of the National School 
     Lunch Act (42 U.S.C. 1753(b)(2)) is amended by striking 
     ``except that'' and all that follows through ``2 cents 
     more''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall become effective on July 1, 1996.

     SEC. 202. VALUE OF FOOD ASSISTANCE.

       (a) In General.--Section 6(e)(1) of the National School 
     Lunch Act (42 U.S.C. 1755(e)(1)) is amended by striking 
     subparagraph (B) and inserting the following:
       ``(B) Adjustments.--
       ``(i) In general.--The value of food assistance for each 
     meal shall be adjusted each July 1 by the annual percentage 
     change in a 3-month average value of the Price Index for 
     Foods Used in Schools and Institutions for March, April, and 
     May each year.
       ``(ii) Adjustments.--Except as otherwise provided in this 
     subparagraph, in the case of each school year, the Secretary 
     shall--

       ``(I) base the adjustment made under clause (i) on the 
     amount of the unrounded adjustment for the preceding school 
     year;
       ``(II) adjust the resulting amount in accordance with 
     clause (i); and
       ``(III) round the result to the nearest lower cent 
     increment.

       ``(iii) Adjustment on january 1, 1996.--On January 1, 1996, 
     the Secretary shall round the value of food assistance 
     referred to in clause (i) to the nearest lower cent 
     increment.
       ``(iv) Adjustment for 1996-97 school year.--In the case of 
     the school year beginning July 1, 1996, the value of food 
     assistance shall be the same as the value of food assistance 
     for the school year beginning July 1, 1995, rounded to the 
     nearest lower cent increment.
       ``(v) Adjustment for 1997-98 school year.--In the case of 
     the school year beginning July 1, 1997, the Secretary shall--

       ``(I) base the adjustment made under clause (i) on the 
     amount of the unrounded adjustment for the value of food 
     assistance for the school year beginning July 1, 1995;
       ``(II) adjust the resulting amount to reflect the annual 
     percentage change in a 3-month average value of the Price 
     Index for Foods Used in Schools and Institutions for March, 
     April, and May for the most recent 12-month period for which 
     the data are available; and
       ``(III) round the result to the nearest lower cent 
     increment.''.

       (b) Effective Date.--The amendments made by subsection (a) 
     shall become effective on January 1, 1996.

     SEC. 203. LUNCHES, BREAKFASTS, AND SUPPLEMENTS.

       (a) In General.--Section 11(a)(3)(B) of the National School 
     Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is amended--
       (1) by designating the second and third sentences as 
     subparagraphs (C) and (D), respectively; and
       (2) by striking subparagraph (D) (as so designated) and 
     inserting the following:
       ``(D) Rounding.--Except as otherwise provided in this 
     paragraph, in the case of each 12-month period, the Secretary 
     shall--
       ``(i) base the adjustment made under this paragraph on the 
     amount of the unrounded adjustment for the preceding 12-month 
     period;
       ``(ii) adjust the resulting amount in accordance with 
     subparagraph (C); and
       ``(iii) round the result to the nearest lower cent 
     increment.
       ``(E) Adjustment on january 1, 1996.--On January 1, 1996, 
     the Secretary shall round the rates and factor referred to in 
     subparagraph (A) to the nearest lower cent increment.
       ``(F) Adjustment for 24-month period beginning july 1, 
     1996.--In the case of the 24-month period beginning July 1, 
     1996, the national average payment rates for paid lunches, 
     paid breakfasts, and paid supplements shall be the same as 
     the national average payment rate for paid lunches, paid 
     breakfasts, and paid supplements, respectively, for the 12-
     month period beginning July 1, 1995, rounded to the nearest 
     lower cent increment.
       ``(G) Adjustment for 12-month period beginning july 1, 
     1998.--In the case of the 12-month period beginning July 1, 
     1998, the Secretary shall--
       ``(i) base the adjustments made under this paragraph for--

       ``(I) paid lunches and paid breakfasts on the amount of the 
     unrounded adjustment for paid lunches for the 12-month period 
     beginning July 1, 1995; and
       ``(II) paid supplements on the amount of the unrounded 
     adjustment for paid supplements for the 12-month period 
     beginning July 1, 1995;

       ``(ii) adjust each resulting amount in accordance with 
     subparagraph (C); and
       ``(iii) round each result to the nearest lower cent 
     increment.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall become effective on January 1, 1996.

     SEC. 204. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

       (a) In General.--Section 13(b) of the National School Lunch 
     Act (42 U.S.C. 1761(b)) is amended--
       (1) by striking ``(b)(1)'' and all that follows through the 
     end of paragraph (1) and inserting the following:
       ``(b) Service Institutions.--
       ``(1) Payments.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, payments to service institutions shall equal the 
     full cost of food service operations (which cost shall 
     include the costs of obtaining, preparing, and serving food, 
     but shall not include administrative costs).
       ``(B) Maximum amounts.--Subject to subparagraph (C), 
     payments to any institution under subparagraph (A) shall not 
     exceed--
       ``(i) $2 for each lunch and supper served;
       ``(ii) $1.20 for each breakfast served; and
       ``(iii) 50 cents for each meal supplement served.
       ``(C) Adjustments.--Amounts specified in subparagraph (B) 
     shall be adjusted each January 1 to the nearest lower cent 
     increment in accordance with the changes for the 12-month 
     period ending the preceding November 30 in the series for 
     food away from home of the Consumer Price Index for All Urban 
     Consumers published by the Bureau of Labor Statistics of the 
     Department of Labor. Each adjustment shall be based on the 
     unrounded adjustment for the prior 12-month period.''; and
       (2) by striking paragraph (4).
       (b) Effective Date.--The amendments made by subsection (a) 
     shall become effective on January 1, 1996.

     SEC. 205. SPECIAL MILK PROGRAM.

       (a) In General.--Section 3(a) of the Child Nutrition Act of 
     1966 (42 U.S.C. 1772(a)) is amended by striking paragraph (8) 
     and inserting the following: [[Page S8107]] 
       ``(8) Adjustments.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, in the case of each school year, the Secretary 
     shall--
       ``(i) base the adjustment made under paragraph (7) on the 
     amount of the unrounded adjustment for the preceding school 
     year;
       ``(ii) adjust the resulting amount in accordance with 
     paragraph (7); and
       ``(iii) round the result to the nearest lower cent 
     increment.
       ``(B) Adjustment on january 1, 1996.--On January 1, 1996, 
     the Secretary shall round the minimum rate referred to in 
     paragraph (7) to the nearest lower cent increment.
       ``(C) Adjustment for 1996-97 school year.--In the case of 
     the school year beginning July 1, 1996, the minimum rate 
     shall be the same as the minimum rate for the school year 
     beginning July 1, 1995, rounded to the nearest lower cent 
     increment.
       ``(D) Adjustment for 1997-98 school year.--In the case of 
     the school year beginning July 1, 1997, the Secretary shall--
       ``(i) base the adjustment made under paragraph (7) on the 
     amount of the unrounded adjustment for the minimum rate for 
     the school year beginning July 1, 1995;
       ``(ii) adjust the resulting amount to reflect changes in 
     the Producer Price Index for Fresh Processed Milk published 
     by the Bureau of Labor Statistics of the Department of Labor 
     for the most recent 12-month period for which the data are 
     available; and
       ``(iii) round the result to the nearest lower cent 
     increment.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall become effective on January 1, 1996.

     SEC. 206. FREE AND REDUCED PRICE BREAKFASTS.

       (a) In General.--Section 4(b) of the Child Nutrition Act of 
     1966 (42 U.S.C. 1773(b)) is amended--
       (1) in the second sentence of paragraph (1)(B), by striking 
     ``, adjusted to the nearest one-fourth cent'' and inserting 
     ``(as adjusted pursuant to section 11(a) of the National 
     School Lunch Act (42 U.S.C. 1759a(a))''; and
       (2) in paragraph (2)(B)(ii)--
       (A) by striking ``nearest one-fourth cent'' and inserting 
     ``nearest lower cent increment for the applicable school 
     year''; and
       (B) by inserting before the period at the end the 
     following: ``, and the adjustment required by this clause 
     shall be based on the unrounded adjustment for the preceding 
     school year''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall become effective on July 1, 1996.

     SEC. 207. CONFORMING REIMBURSEMENT FOR PAID BREAKFASTS AND 
                   LUNCHES.

       (a) In General.--The last sentence of section 4(b)(1)(B) of 
     the Child Nutrition Act of 1966 (42 U.S.C. 1773(b)(1)(B)) is 
     amended by striking ``8.25 cents'' and all that follows 
     through ``Act)'' and inserting ``the same as the national 
     average lunch payment established under section 4(b) of the 
     National School Lunch Act (42 U.S.C. 1753(b))''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall become effective on January 1, 1996.
                       Subtitle B--Grant Programs

     SEC. 211. SCHOOL BREAKFAST STARTUP GRANTS.

       Section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
     1773) is amended by striking subsection (g).

     SEC. 212. NUTRITION EDUCATION AND TRAINING PROGRAMS.

       Section 19(i)(2)(A) of the Child Nutrition Act of 1966 (42 
     U.S.C. 1788(i)(2)(A)) is amended by striking ``$10,000,000'' 
     and inserting ``$7,000,000''.

     SEC. 213. EFFECTIVE DATE.

       The amendments made by this subtitle shall become effective 
     on October 1, 1996.
                      Subtitle C--Other Amendments

     SEC. 221. FREE AND REDUCED PRICE POLICY STATEMENT.

       (a) School Lunch Program.--Section 9(b)(2) of the National 
     School Lunch Act (42 U.S.C. 1758(b)(2)) is amended by adding 
     at the end the following:
       ``(D) Free and reduced price policy statement.--A school 
     shall not be required to submit a free and reduced price 
     policy statement to a State educational agency under this Act 
     unless there is a substantive change in the free and reduced 
     price policy of the school. A routine change in the policy of 
     a school, such as an annual adjustment of the income 
     eligibility guidelines for free and reduced price meals, 
     shall not be sufficient cause for requiring the school to 
     submit a policy statement.''.
       (b) School Breakfast Program.--Section 4(b)(1) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1773(b)(1)) is amended by 
     adding at the end the following:
       ``(E) Free and reduced price policy statement.--A school 
     shall not be required to submit a free and reduced price 
     policy statement to a State educational agency under this Act 
     unless there is a substantive change in the free and reduced 
     price policy of the school. A routine change in the policy of 
     a school, such as an annual adjustment of the income 
     eligibility guidelines for free and reduced price meals, 
     shall not be sufficient cause for requiring the school to 
     submit a policy statement.''.

     SEC. 222. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

       (a) Permitting Offer Versus Serve.--Section 13(f) of the 
     National School Lunch Act (42 U.S.C. 1761(f)) is amended--
       (1) by striking ``(f) Service'' and inserting the 
     following:
       ``(f) Nutritional Standards.--
       ``(1) In general.--Service''; and
       (2) by adding at the end the following:
       ``(2) Offer versus serve.--At the option of a local school 
     food authority, a student in a school under the authority 
     that participates in the program may be allowed to refuse not 
     more than 1 item of a meal that the student does not intend 
     to consume. A refusal of an offered food item shall not 
     affect the amount of payments made under this section to a 
     school for the meal.''.
       (b) Removing Mandatory Notice to Institutions.--Section 
     13(n)(2) of the Act is amended by striking ``and its plans 
     and schedule'' and inserting ``except that the Secretary may 
     not require a State to submit a plan or schedule''.

     SEC. 223. CHILD AND ADULT CARE FOOD PROGRAM.

       (a) Payments to Sponsor Employees.--Paragraph (2) of the 
     last sentence of section 17(a) of the National School Lunch 
     Act (42 U.S.C. 1766(a)) is amended--
       (1) by striking ``and'' at the end of subparagraph (B);
       (2) by striking the period at the end of subparagraph (C) 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(D) in the case of a family or group day care home 
     sponsoring organization that employs more than 1 employee, 
     the organization does not base payments to an employee of the 
     organization on the number of family or group day care homes 
     recruited, managed, or monitored.''.
       (b) Improved Targeting of Day Care Home Reimbursements.--
       (1) Restructured day care home reimbursements.--Section 
     17(f)(3) of the Act is amended by striking ``(3)(A) 
     Institutions'' and all that follows through the end of 
     subparagraph (A) and inserting the following:
       ``(3) Reimbursement of family or group day care home 
     sponsoring organizations.--
       ``(A) Reimbursement factor.--
       ``(i) In general.--An institution that participates in the 
     program under this section as a family or group day care home 
     sponsoring organization shall be provided, for payment to a 
     home of the organization, reimbursement factors in accordance 
     with this subparagraph for the cost of obtaining and 
     preparing food and prescribed labor costs involved in 
     providing meals under this section.
       ``(ii) Tier i family or group day care homes.--

       ``(I) Definition.--In this paragraph, the term `tier I 
     family or group day care home' means--

       ``(aa) a family or group day care home that is located in a 
     geographic area, as defined by the Secretary based on census 
     data, in which at least 50 percent of the children residing 
     in the area are members of households whose incomes meet the 
     eligibility standards for free or reduced price meals under 
     section 9;
       ``(bb) a family or group day care home that is located in 
     an area served by a school enrolling elementary students in 
     which at least 50 percent of the total number of children 
     enrolled are certified eligible to receive free or reduced 
     price school meals under this Act or the Child Nutrition Act 
     of 1966 (42 U.S.C. 1771 et seq.); or
       ``(cc) a family or group day care home that is operated by 
     a provider whose household meets the eligibility standards 
     for free or reduced price meals under section 9 and whose 
     income is verified by a sponsoring organization under 
     regulations established by the Secretary.

       ``(II) Reimbursement.--Except as provided in subclause 
     (III), a tier I family or group day care home shall be 
     provided reimbursement factors under this clause without a 
     requirement for documentation of the costs described in 
     clause (i), except that reimbursement shall not be provided 
     under this subclause for meals or supplements served to the 
     children of a person acting as a family or group day care 
     home provider unless the children meet the eligibility 
     standards for free or reduced price meals under section 9.
       ``(III) Factors.--Except as provided in subclause (IV), the 
     reimbursement factors applied to a home referred to in 
     subclause (II) shall be the factors in effect on the date of 
     enactment of this subclause.
       ``(IV) Adjustments.--The reimbursement factors under this 
     subparagraph shall be adjusted on August 1, 1996, July 1, 
     1997, and each July 1 thereafter, to reflect changes in the 
     Consumer Price Index for food at home for the most recent 12-
     month period for which the data are available. The 
     reimbursement factors under this subparagraph shall be 
     rounded to the nearest lower cent increment and based on the 
     unrounded adjustment for the preceding 12-month period.

       ``(iii) Tier ii family or group day care homes.--

       ``(I) In general.--

       ``(aa) Factors.--Except as provided in subclause (II), with 
     respect to meals or supplements served under this clause by a 
     family or group day care home that does not meet the criteria 
     set forth in clause (ii)(I), the reimbursement factors shall 
     be $1 for lunches and suppers, 30 cents for breakfasts, and 
     15 cents for supplements.
       ``(bb) Adjustments.--The factors shall be adjusted on July 
     1, 1997, and each July 1 thereafter, to reflect changes in 
     the Consumer Price Index for food at home for the most recent 
     12-month period for which the data are available. The 
     reimbursement factors under this item shall be rounded down 
     to the nearest lower cent increment and based on the 
     unrounded adjustment for the preceding 12-month 
     period. [[Page S8108]] 
       ``(cc) Reimbursement.--A family or group day care home 
     shall be provided reimbursement factors under this subclause 
     without a requirement for documentation of the costs 
     described in clause (i), except that reimbursement shall not 
     be provided under this subclause for meals or supplements 
     served to the children of a person acting as a family or 
     group day care home provider unless the children meet the 
     eligibility standards for free or reduced price meals under 
     section 9.

       ``(II) Other factors.--A family or group day care home that 
     does not meet the criteria set forth in clause (ii)(I) may 
     elect to be provided reimbursement factors determined in 
     accordance with the following requirements:

       ``(aa) Children eligible for free or reduced price meals.--
     In the case of meals or supplements served under this 
     subsection to children who are members of households whose 
     incomes meet the eligibility standards for free or reduced 
     price meals under section 9, the family or group day care 
     home shall be provided reimbursement factors set by the 
     Secretary in accordance with clause (ii)(III).
       ``(bb) Ineligible children.--In the case of meals or 
     supplements served under this subsection to children who are 
     members of households whose incomes do not meet the 
     eligibility standards, the family or group day care home 
     shall be provided reimbursement factors in accordance with 
     subclause (I).

       ``(III) Information and determinations.--

       ``(aa) In general.--If a family or group day care home 
     elects to claim the factors described in subclause (II), the 
     family or group day care home sponsoring organization serving 
     the home shall collect the necessary income information, as 
     determined by the Secretary, from any parent or other 
     caretaker to make the determinations specified in subclause 
     (II) and shall make the determinations in accordance with 
     rules prescribed by the Secretary.
       ``(bb) Categorical eligibility.--In making a determination 
     under item (aa), a family or group day care home sponsoring 
     organization may consider a child participating in or 
     subsidized under, or a child with a parent participating in 
     or subsidized under, a federally or State supported child 
     care or other benefit program with an income eligibility 
     limit that does not exceed the eligibility standard for free 
     or reduced price meals under section 9 to be a child who is a 
     member of a household whose income meets the eligibility 
     standards under section 9.
       ``(cc) Factors for children only.--A family or group day 
     care home may elect to receive the reimbursement factors 
     prescribed under clause (ii)(III) solely for the children 
     participating in a program referred to in item (bb) if the 
     home elects not to have income statements collected from 
     parents or other caretakers.

       ``(IV) Simplified meal counting and reporting procedures.--
     The Secretary shall prescribe simplified meal counting and 
     reporting procedures for use by a family or group day care 
     home that elects to claim the factors under subclause (II) 
     and by a family or group day care home sponsoring 
     organization that serves the home. The procedures the 
     Secretary prescribes may include 1 or more of the following:

       ``(aa) Setting an annual percentage for each home of the 
     number of meals served that are to be reimbursed in 
     accordance with the reimbursement factors prescribed under 
     clause (ii)(III) and an annual percentage of the number of 
     meals served that are to be reimbursed in accordance with the 
     reimbursement factors prescribed under clause (iii)(I), based 
     on the family income of children enrolled in the home in a 
     specified month or other period.
       ``(bb) Placing a home into 1 of 2 or more reimbursement 
     categories annually based on the percentage of children in 
     the home whose households have incomes that meet the 
     eligibility standards under section 9, with each such 
     reimbursement category carrying a set of reimbursement 
     factors such as the factors prescribed under clause (ii)(II) 
     or subclause (I) or factors established within the range of 
     factors prescribed under clause (ii)(II) and subclause (I).
       ``(cc) Such other simplified procedures as the Secretary 
     may prescribe.

       ``(V) Minimum verification requirements.--The Secretary may 
     establish any necessary minimum verification requirements.''.

       (2) Grants to states to provide assistance to family or 
     group day care homes.--Section 17(f)(3) of the Act is amended 
     by adding at the end the following:
       ``(D) Grants to states to provide assistance to family or 
     group day care homes.--
       ``(i) In general.--

       ``(I) Reservation.--From amounts made available to carry 
     out this section, the Secretary shall reserve $5,000,000 of 
     the amount made available for fiscal year 1996.
       ``(II) Purpose.--The Secretary shall use the funds made 
     available under subclause (I) to provide grants to States for 
     the purpose of providing--

       ``(aa) assistance, including grants, to family and day care 
     home sponsoring organizations and other appropriate 
     organizations, in securing and providing training, materials, 
     automated data processing assistance, and other assistance 
     for the staff of the sponsoring organizations; and
       ``(bb) training and other assistance to family and group 
     day care homes in the implementation of the amendments to 
     subparagraph (A) made by section 574(b)(1) of the Family 
     Self-Sufficiency Act of 1995.
       ``(ii) Allocation.--The Secretary shall allocate from the 
     funds reserved under clause (i)(II)--

       ``(I) $30,000 in base funding to each State; and
       ``(II) any remaining amount among the States, based on the 
     number of family day care homes participating in the program 
     in a State in 1994 as a percentage of the number of all 
     family day care homes participating in the program in 1994.

       ``(iii) Retention of funds.--Of the amount of funds made 
     available to a State for a fiscal year under clause (i), the 
     State may retain not to exceed 30 percent of the amount to 
     carry out this subparagraph.
       ``(iv) Additional payments.--Any payments received under 
     this subparagraph shall be in addition to payments that a 
     State receives under subparagraph (A) (as amended by section 
     134(b)(1) of the Family Self-Sufficiency Act of 1995).''.
       (3) Provision of data.--Section 17(f)(3) of the Act (as 
     amended by paragraph (2)) is further amended by adding at the 
     end the following:
       ``(E) Provision of data to family or group day care home 
     sponsoring organizations.--
       ``(i) Census data.--The Secretary shall provide to each 
     State agency administering a child and adult care food 
     program under this section data from the most recent 
     decennial census survey or other appropriate census survey 
     for which the data are available showing which areas in the 
     State meet the requirements of subparagraph (A)(ii)(I)(aa). 
     The State agency shall provide the data to family or group 
     day care home sponsoring organizations located in the State.
       ``(ii) School data.--

       ``(I) In general.--A State agency administering the school 
     lunch program under this Act or the school breakfast program 
     under the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
     seq.) shall provide data for each elementary school in the 
     State, or shall direct each school within the State to 
     provide data for the school, to approved family or group day 
     care home sponsoring organizations that request the data, on 
     the percentage of enrolled children who are eligible for free 
     or reduced price meals.
       ``(II) Use of data from preceding school year.--In 
     determining for a fiscal year or other annual period whether 
     a home qualifies as a tier I family or group day care home 
     under subparagraph (A)(ii)(I), the State agency administering 
     the program under this section, and a family or group day 
     care home sponsoring organization, shall use the most current 
     available data at the time of the determination.

       ``(iii) Duration of determination.--For purposes of this 
     section, a determination that a family or group day care home 
     is located in an area that qualifies the home as a tier I 
     family or group day care home (as the term is defined in 
     subparagraph (A)(ii)(I)), shall be in effect for 3 years 
     (unless the determination is made on the basis of census 
     data, in which case the determination shall remain in effect 
     until more recent census data are available) unless the State 
     agency determines that the area in which the home is located 
     no longer qualifies the home as a tier I family or group day 
     care home.''.
       (4) Conforming amendments.--Section 17(c) of the Act is 
     amended by inserting ``except as provided in subsection 
     (f)(3),'' after ``For purposes of this section,'' each place 
     it appears in paragraphs (1), (2), and (3).
       (c) Disallowing Meal Claims.--The fourth sentence of 
     section 17(f)(4) of the Act is amended by inserting 
     ``(including institutions that are not family or group day 
     care home sponsoring organizations)'' after ``institutions''.
       (d) Elimination of State Paperwork and Outreach Burden.--
     Section 17 of the Act is amended by striking subsection (k) 
     and inserting the following:
       ``(k) Training and Technical Assistance.--A State 
     participating in the program established under this section 
     shall provide sufficient training, technical assistance, and 
     monitoring to facilitate effective operation of the program. 
     The Secretary shall assist the State in developing plans to 
     fulfill the requirements of this subsection.''.
       (e) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall become effective on the 
     date of enactment of this Act.
       (2) Improved targeting of day care home reimbursements.--
     The amendments made by paragraphs (1), (3), and (4) of 
     subsection (b) shall become effective on August 1, 1996.

     SEC. 224. REDUCING REQUIRED REPORTS TO STATE AGENCIES AND 
                   SCHOOLS.

       Section 19 of the National School Lunch Act (42 U.S.C. 
     1769a) is amended by striking subsection (c) and inserting 
     the following:
       ``(c) Report.--Not later than 1 year after the date of 
     enactment of the Family Self-Sufficiency Act of 1995, the 
     Secretary shall--
       ``(1) review all reporting requirements under this Act and 
     the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) that 
     are in effect, as of the date of enactment of the Family 
     Self-Sufficiency Act of 1995, for agencies and schools 
     referred to in subsection (a); and
       ``(2) provide a report to the Committee on Economic and 
     Educational Opportunities of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate that--
       ``(A) describes the reporting requirements described in 
     paragraph (1) that are required by law; [[Page S8109]] 
       ``(B) makes recommendations concerning the elimination of 
     any requirement described in subparagraph (A) because the 
     contribution of the requirement to program effectiveness is 
     not sufficient to warrant the paperwork burden that is placed 
     on agencies and schools referred to in subsection (a); and
       ``(C) provides a justification for reporting requirements 
     described in paragraph (1) that are required solely by 
     regulation.''.
                       TITLE III--REAUTHORIZATION

     SEC. 301. COMMODITY DISTRIBUTION PROGRAM; COMMODITY 
                   SUPPLEMENTAL FOOD PROGRAMS.

       (a) Reauthorization.--The first sentence of section 4(a) of 
     the Agriculture and Consumer Protection Act of 1973 (Public 
     Law 93-86; 7 U.S.C. 612c note) is amended by striking 
     ``1995'' and inserting ``2000''.
       (b) Administrative Funding.--Section 5(a)(2) of the Act 
     (Public Law 93-86; 7 U.S.C. 612c note) is amended by striking 
     ``1995'' and inserting ``2000''.

     SEC. 302. EMERGENCY FOOD ASSISTANCE PROGRAM.

       (a) Reauthorization.--The first sentence of section 
     204(a)(1) of the Emergency Food Assistance Act of 1983 
     (Public Law 98-8; 7 U.S.C. 612c note) is amended by striking 
     ``1995'' and inserting ``2000''.
       (b) Program Termination.--Section 212 of the Act (Public 
     Law 98-8; 7 U.S.C. 612c note) is amended by striking ``1995'' 
     and inserting ``2000''.
       (c) Required Purchases of Commodities.--Section 214 of the 
     Act (Public Law 98-8; 7 U.S.C. 612c note) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``1995'' and inserting ``2000''; and
       (2) in subsection (e), by striking ``1995'' each place it 
     appears and inserting ``2000''.

     SEC. 303. SOUP KITCHENS PROGRAM.

       Section 110 of the Hunger Prevention Act of 1988 (Public 
     Law 100-435; 7 U.S.C. 612c note) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``1995'' and inserting ``2000''; and
       (2) in subsection (c)(2)--
       (A) in the paragraph heading, by striking ``1995'' and 
     inserting ``2000''; and
       (B) by striking ``1995'' each place it appears and 
     inserting ``2000''.

     SEC. 304. NATIONAL COMMODITY PROCESSING.

       The first sentence of section 1775(2)(A) of the Agriculture 
     and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended by 
     striking ``1995'' and inserting ``2000''.
                                                                    ____

         Senate Agriculture Committee Welfare Reform Provisions


               More authority and flexibility for states

       The bill gives states more freedom and choice in 
     administering the Food Stamp program. The bill will:
       Allow states to operate a simplified and state-designed 
     Food Stamp program for cash welfare recipients, as long as 
     federal costs do not increase.
       Let states tighten the definition of a ``household'' so 
     that people living under a single roof could be considered 
     one household. For example, under current law, unmarried 
     couples may qualify for more Food Stamp benefits than a 
     married couple--in effect, a ``marriage penalty.''
       Delete laws that micromanage state Food Stamp 
     administration. Such laws now go so far as to specify when to 
     use boldface type in Food Stamp applications and require USDA 
     review of local office hours.
       Allow states to recover over-issued Food Stamp benefits 
     immediately.


      promoting work, responsibility and state reform initiatives

       The bill encourages responsible behavior, empowers the 
     states to pursue innovative welfare reforms, and reduces 
     federal spending. The bill will:
       Ensure Food Stamp benefits do not increase when a 
     recipient's welfare benefits are reduced for violating 
     welfare rules.
       Allow states to operate work support programs in which the 
     value of Food Stamp benefits is paid to an employer who hires 
     a welfare recipient and passes on the benefit to the employee 
     as part of wages. Such systems encourage movement from 
     welfare to work.
       Allow a limited number of states to offer Food Stamp 
     benefits in cash to recipients who have been working at least 
     three months.
       Strengthen child support enforcement by allowing states to 
     require that custodial parents cooperate with enforcement 
     agencies, and to disqualify from benefits a parent who is in 
     arrears on court-ordered child support. Also allow states to 
     disqualify non-custodial parents who refuse to cooperate in 
     child support and paternity proceedings.
       Give states more ability to undertake welfare reform 
     demonstration projects where they might restrict or reduce 
     Food Stamp benefits. Impose a strict 60-day time limit for 
     USDA to respond to state proposals for welfare reform. The 
     state's request is automatically approved if USDA does not 
     respond.
       Sanction any adult who voluntarily quits a job while on 
     Food Stamps. Require that individuals who violate Food Stamp 
     work requirements be disqualified from benefits for mandatory 
     minimum periods, with states
      able to disqualify for longer periods if they choose.
       Exempt Food Stamp benefits delivered through Electronic 
     Benefit Transfer from Regulation E, which limits cardholder 
     liability if cards are lost or stolen.
       Establish a new work requirement for non-elderly, able-
     bodied adults without dependents, generally requiring them to 
     work or be in job training within six months, or lose Food 
     Stamp eligibility.
       Require that anyone age 21 or younger who lives with his or 
     her parents must be considered part of the parents' 
     household.
       Reduce the rate of growth in Food Stamp spending by 
     revising the way benefits are calculated. Currently, benefits 
     are 103 percent of a ``thrifty food plan'' reflecting a low-
     cost diet. The bill would pay benefits at 100 percent of the 
     thrifty food plan, the same formula used until 1989.
       Reduce the ``standard deduction,'' an amount automatically 
     subtracted from applicants' income to determine eligibility 
     and benefits.
       Repeal scheduled increases in the maximum value of 
     automobiles that may be owned by persons who wish to collect 
     Food Stamp benefits. Count energy assistance as income when 
     determining Food Stamp eligibility.
       Discourage Food Stamp receipt by legal aliens. Extend the 
     length of time for which a person who sponsors a legal alien 
     must, in effect, be financially responsible for the alien.


        improving child nutrition programs and containing costs

       The bill retains child nutrition programs at the federal 
     level but reduces excessive federal regulation. The bill 
     will:
       Reduce statutory paperwork burdens on local school 
     districts and states. The bill deletes several provisions 
     that micromanage states' administration of the Child and 
     Adult Care Food Program and requires a survey to find more 
     reporting requirements that can be eliminated.
       Conform federal reimbursement rates for breakfasts served 
     to non-poor children with those for lunches. Freeze for two 
     years the reimbursement rate for meals and snacks served to 
     non-poor children, and federal assistance in the form of 
     commodities.
       Reduce the subsidies for middle- and higher-income children 
     in family day care homes.
       End an extra and unsupported subsidy paid to schools which 
     serve a high percentage of free and reduced-price meals. 
     Bring summer food program reimbursements more into line with 
     school reimbursement rates.
                                 ______

      By Mr. AKAKA:
  S. 905. A bill to provide for the management of the airplane over 
units of the National Park System, and for other purposes; to the 
Committee on Commerce, Science, and Transportation.


           THE NATIONAL PARKS AIRSPACE MANAGEMENT ACT OF 1995

 Mr. AKAKA. Mr. President, today I am reintroducing legislation 
I offered last year, but in simpler and improved form, that is designed 
to mitigate the impact of commercial air tour flights over units of the 
National Park System. The National Parks Airspace Management Act of 
1995 would create a new statutory framework for minimizing the 
environmental effects of air tour activity on park units.
  Briefly, my bill would: specify the respective authorities of the 
National Park Service and the Federal Aviation Administration [FAA] in 
developing and enforcing park overflight policy; establish a process 
for developing individualized airspace management plans at parks 
experiencing significant commercial air tour activity; provide for the 
designation of those parks which did not experience commercial air tour 
activity as of January 1, 1995 as flight-free parks; establish a new, 
single standard governing the certification and operation of all 
commercial air tour operators that conduct flights over national parks; 
require a variety of safety measures, such as improved aircraft 
markings, maintenance of accurate aeronautical charts, installation of 
flight monitoring equipment, and an air tour database; and, establish a 
National Park Overflight Advisory Council.
  As my colleagues are aware, aircraft overflights of noise-sensitive 
areas such as national parks have been increasing in scope and 
intensity for a number of years, sparking significant public debate and 
controversy about the safety and environmental impact of such activity. 
The focus of much of the debate, and much of the controversy, has been 
the commercial air tour sightseeing industry, which has experienced 
explosive growth in some areas, most notably at the Grand Canyon and in 
my own State of Hawaii.
  The air tour industry has become a $500 million business nationwide. 
Fully half of that revenue is generated by the 800,000 flightseers who 
annually view the Grand Canyon area by aircraft. In 1994, the Hawaii 
air tour industry, which is centered around tours of Haleakala and 
Hawaii Volcanoes National Parks, provided tours to more than 500,000 
passengers, generating approximately $75 million in 
revenues. [[Page S8110]] 
  Apart from parks in Arizona and Hawaii, significant commercial air 
tour activity has also been developing in such widely dispersed 
locations as Glacier National Park in Montana, the Utah national parks, 
Mount Rushmore in South Dakota, and the Statute of Liberty and Niagara 
Falls in New York. In fact, at Great Smoky Mountains National Park, 
commercial air tour overflights have fostered such opposition that the 
State of
 Tennessee has passed legislation to restrict such flights.

  Thus, the problems that my bill attempts to address are national, not 
merely local, in scope and interest. I would venture to say that every 
Member of this body has, or will soon have, a park in his or her State 
that is impacted to a greater or lesser degree by commercial air tour 
operations.
  Mr. President, the legislation I am offering is not the first attempt 
to deal with this issue through legislation. In 1987, Congress passed 
the National Parks Overflights Act, Public Law 100-91, which 
established certain flight restrictions at three parks which were 
experiencing heavy air traffic. Flights below-the-rim at Grand Canyon 
were permanently banned and Special Federal Aviation Regulation [SFAR] 
was established creating flight-free zones and air corridors. The act 
established less stringent temporary altitude restrictions for Yosemite 
in California and Haleakala in Hawaii.
  The act also required that a comprehensive study be conducted by the 
Park Service, with FAA input, to determine appropriate minimum 
altitudes for aircraft overflying national parks. Completed and 
submitted to Congress in September 1994, the study evaluated the impact 
of aircraft noise on the safety of park system users and on park values 
and offered numerous recommendations to Congress and the administration 
on ways to mitigate the effects of aircraft noise, including incentives 
to encourage use of quiet aircraft technology, flight-free zones and 
flight corridors, altitude restrictions, noise budgets, and limits on 
times of air tour operations.
  Unfortunately, the minimum altitude restrictions mandated by Public 
Law 100-91 have not fully addressed the noise and safety problems at 
Grand Canyon, Yosemite, and particularly Haleakala, given the explosive 
growth in air tour activity at these parks. And, of course, the act did 
not establish mitigation measures for other parks experiencing high 
levels of air traffic. And, to date, none of the noise and safety 
mitigation measures recommended by the Park Overflights Study have been 
implemented.
  Since October 1, 1988, there have been 139 air tour accidents in the 
United States, resulting in 117 fatalities. It saddens me to report 
that my home State of Hawaii has experienced a disproportionately high 
number of these tragedies. During that period, 34 of those accidents 
occurred in Hawaii, resulting in 35 fatalities.
  Concern over the high incidence of air tour accidents in Hawaii's 
skies compelled the FAA, in March 1994, to initiate a comprehensive 
review of the operations and maintenance practices of the Hawaii air 
tour industry. This review culminated in the implementation of an 
emergency regulation--SFAR-71--which imposed numerous safety measures 
upon Hawaii's commercial air tour operators, including a 1,500-foot 
above-ground-level minimum
 altitude restriction. To date, the FAA's emergency rulemaking actions 
generally appear to have been effective in providing short-term 
solutions to many of the safety problems associated with commercial air 
tour operations in Hawaii.

  Similarly, in 1992, when the FAA implemented SFAR-50-2 governing 
airspace over Grand Canyon National Park, a significant improvement in 
air safety was effected there also. Unfortunately, however, short-term, 
emergency measures such as SFAR's 71 and 50-2 have not, and cannot be 
expected to, addressed the full range of safety problems that have 
attended the explosive growth of the commercial air tour industry in 
this country.
  In addition to safety issues, the rapid growth of the air tour 
industry has fostered environmental concerns as well, largely centering 
on noise problems. The Clinton administration has made a good faith 
effort to address the noise and environmental impacts of commercial air 
tour overflights through existing regulatory authorities and 
mechanisms. The interagency working group formed in 1993 by Secretary 
Babbitt and Secretary Pena has demonstrated that limited cooperation 
between the FAA and Park Service is attainable in addressing this 
issue.
  Nevertheless, while some progress has been made, the pace has been 
painfully slow and tangible results so far are not readily evident. In 
the meantime, the number of air tour flights has continued to grow, 
serving to exacerbate existing environmental and safety problems. This 
experience has shown us that only Congress, through legislation, can 
produce lasting, effective policy on this matter.
  The simple truth is, the complex problems associated with park 
overflights cannot be fully resolved administratively. This is largely 
due to the fact that the FAA and the Park Service, the two agencies 
with the greater responsibility in this area, are governed by vastly 
different statutory mandates. On the one hand, the FAA is responsible 
for the safety and efficiency of air commerce; on the other, the Park 
Service is charged with protecting and preserving park resources. At 
some point--in this case the regulation of airspace over noise 
sensitive areas--their interests are mutually incompatible. Only by 
modifying or clarifying their statutory responsibilities with respect 
to the management of park airspace can the two Federal agencies be 
expected to work together to address the overflights problem.
  Mr. President, the legislation I am proposing today would address 
this and other barriers to the development of a comprehensive park 
overflights policy. My bill deals with the commercial air tour 
overflights issue in a national context, since the safety and 
environmental concerns which are being debated so vociferously in 
Hawaii are being echoed at park units scattered throughout the National 
Park System.
  At the outset, my bill establishes a finding that National Park 
Service policy recognizes the importance of natural quiet as a resource 
to be conserved and protected in certain park units. Toward that end, 
my bill creates a new statutory framework for minimizing the 
environmental effects of air tour activity on units throughout the 
National Park System.
  The bill articulates a regulatory scheme under which the Park Service 
and the FAA are required to work in tandem to develop operational 
policies with respect to the overflights problem. It provides for joint 
administration in many areas while clearly denoting the FAA's primacy 
on matters related to safety and air efficiency and the Park Service's 
lead role in identifying the resources to be protected and the best 
means of protecting them.
  The bill requires the development, with public involvement, of 
individually tailored park airspace management plans for units 
significantly affected by overflight activity, as determined by the 
director of the Park Service. It calls for good faith negotiations 
between commercial air tour operators and both the Park Service and the 
FAA to reach agreement on flights over park areas.
  It provides for the Park Service to recommend to the FAA the 
designation of individual units as flight-free parks for those units 
which, as of January 1, 1995, experienced no overflights by commercial 
air tour operators and where air tour flights would be incompatible 
with or injurious to the purposes or values of those parks.
  It also mandates the development by the FAA or a generic operational 
rule for commercial air tour operations at all units of the National 
Park System, subject to modification at individual park units based on 
negotiations among air tour operators, the FAA, and the Park Service.
  My legislation requires the FAA to implement a single standard, 
through a new subpart of part 135, title 14, Code of Federal 
Regulations, for certifying commercial air tour operators. Such a 
uniform standard, which has been recommended by the National 
Transportation Safety Board [NTSB], will substantially enhance safety 
by providing essential consistency in such areas as pilot 
qualifications, training, and flight and duty time limitations.
  It mandates commercial air tour safety initiatives recommended by the 
[[Page S8111]] NTSB and others, including the installation of a flight 
monitoring system and the use of identification markings unique to a 
commercial air tour operator, the development of aeronautical charts 
which reflect airspace management provisions with respect to individual 
park units, and the development of a national data base on air tour 
operations.
  Last but by no means least, the bill establishes a National Park 
Overflight Advisory Council which would provide advice and 
recommendations to the Park Service and the FAA on all issues related 
to commercial air tour flights over park units and serve as a national 
forum for interest groups--including representatives of the air tour 
industry and the environmental community--to constructively exchange 
views.
  It is significant to note that my bill will not affect emergency 
flight operations, general aviation, military aviation, or scheduled 
commercial passenger flights that transit National Park System units. 
Furthermore, recognizing the special needs for air travel in Alaska, 
this bill will not affect the management of park units or aircraft 
operations over or within park units in the State of Alaska.
  Mr. President, I believe that the legislation I am offering today 
will give us the tools to minimize the adverse effects of commercial 
air tour flights on park resources as well as on the ground visitor 
experience, while at the same time enhancing the safety of such 
flights. I believe it is a balanced measure that, through extensive 
opportunity for public involvement, attempts to accommodate the 
legitimate concerns of all park users, including air tour operators and 
passengers. Indeed, I strongly believe that under certain well-
regulated conditions, air tourism provides an important service to 
millions of elderly, disabled, or other visitors who might otherwise 
never enjoy the wonders of our national parks.
  Nevertheless, my bill's central premise is that the 367 park units of 
the National Park System were created because of their exceptional 
natural or cultural significance to the American people. All of the 
provisions of the National Parks Airspace Management Act are therefore 
designed with the protection of park resources as their essential, if 
not exclusive, goal. For it is self-evident that a park whose values 
have corrupted is a park ultimately not worth visiting, by air or land.
  Thank you, Mr. President. I urge my colleagues to support this 
measure.
  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. 905

       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 ``National Parks Airspace 
     Management Act of 1995''.

     SEC. 2. FINDINGS.

       The Congress makes the following findings:
       (1) Commercial air tour flights over units of the National 
     Park System (referred to in this Act as ``units'') may have 
     adverse effects on the units. The flights may degrade the 
     experiences of visitors to the affected areas and may have 
     adverse effects on wildlife and cultural resources in those 
     areas. A significant number of complaints about commercial 
     air tour flights over certain areas under the jurisdiction of 
     the National Park Service have been registered.
       (2) Whereas resource preservation is the primary 
     responsibility of the National Park Service, the agency 
     continues to struggle to develop a policy that would achieve 
     an acceptable balance between flights over units by 
     commercial air tour operators and the protection of resources 
     in the units and the experiences of visitors to the units.
       (3) Whereas the mission of the Federal Aviation 
     Administration is to develop and maintain a safe and 
     efficient system of air transportation while considering the 
     impact of aircraft noise, the agency continues to have 
     difficulty adequately controlling commercial air tour flights 
     over units.
       (4) Significant and continuing concerns exist regarding the 
     safety of commercial air tour flights over some units, 
     including concerns for the safety of occupants of the 
     flights, visitors to those units, Federal employees at those 
     units, and the general public. The concern of the Congress 
     over the effects of low-level flights on units led to the 
     enactment, on August 18, 1987, of the Act entitled ``An Act 
     to require the Secretary of the Interior to conduct a study 
     to determine the appropriate minimum altitude for aircraft 
     flying over national park system units'' (Public Law 100-91; 
     101 Stat. 674; 16 U.S.C. 1a-1 note). The Act requires the 
     Director to identify problems associated with flights by 
     aircraft in the airspace over units.
       (5) Pursuant to the Act referred to in paragraph (4), on 
     September 12, 1994, the Director submitted a report to 
     Congress entitled ``Report On Effects Of Aircraft Overflights 
     On The National Park System''. The National Park Service 
     report concluded that, because the details of national park 
     overflights problems are park-specific, no single altitude 
     can be identified for the entire National Park System. The 
     National Park Service report presented a number of 
     recommendations for resolution of the problem, including--
       (A) the development of airspace and park use resolution 
     processes;
       (B) the development of a single operational rule to 
     regulate air tour operations;
       (C) seeking continued improvements in safety and 
     interagency planning related to airspace management; and
       (D) the development of a Federal Aviation Administration 
     rule to facilitate preservation of natural quiet.
       (6) The policy of the National Park Service recognizes the 
     importance of natural quiet as a resource to be conserved and 
     protected in certain units. The National Park Services 
     defines natural quiet as ``the natural ambient sound 
     conditions found in certain units of the National Park 
     Service'' and recognizes that visitors to certain units may 
     reasonably expect quiet during their visits to those units 
     established with the specific goal of providing visitors with 
     an opportunity for solitude.
       (7) The number of flights by aircraft over units has 
     increased rapidly since the date of enactment of the Act 
     referred to in paragraph (4) and, due to the high degree of 
     satisfaction expressed by air tour passengers, as well as the 
     economic impact of air tour operations on the tourist 
     industry, the number of flights will likely continue to 
     increase. A progression of aesthetic and safety concerns 
     about low altitude flights have been associated with growth 
     in commercial air tour traffic. As the number of flights 
     continues to increase, the likelihood exists that there will 
     be a concomitant increase in the number of conflicts 
     regarding management of the airspace over the units.
       (8) A need exists for a Federal policy to address the 
     conflicts and problems associated with flights by commercial 
     air tour aircraft in the airspace over units. A statutory 
     process should be established to require the Secretary of 
     Transportation and the Secretary of the Interior, acting 
     through the Director, to work together to mitigate the impact 
     of commercial air tour operations on units, or specific areas 
     within units that are adversely affected by commercial air 
     tour operations.

     SEC. 2. DEFINITIONS.

       For the purposes of this Act, the following definitions 
     shall apply:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Federal Aviation Administration.
       (2) Agreement.--The term ``agreement'' means an agreement 
     entered into by a commercial air tour operator, the Director, 
     and the Administrator under section 4(h) that provides for 
     the application of relevant provisions of an airspace 
     management plan for the unit concerned to the commercial air 
     tour operator.
       (3) Air tour aircraft.--The term ``air tour aircraft'' 
     means an aircraft (including a fixed-wing aircraft or a 
     rotorcraft) that makes air tour flights.
       (4) Air tour flight.--The term ``air tour flight'' means a 
     passenger flight conducted by air tour aircraft for the 
     purpose of permitting a passenger to the flight to view an 
     area over which the flight occurs.
       (5) Commercial air tour aircraft.--The term ``commercial 
     air tour aircraft'' means any air tour aircraft used by a 
     commercial air tour operator in providing air tour flights 
     for hire to the public.
       (6) Commercial air tour operator.--The term ``commercial 
     air tour operator'' means a company, corporation, 
     partnership, individual, or other entity that provides air 
     tour flights for hire to the public.
       (7) Council.--The term ``Council'' means the National Park 
     Overflight Advisory Council established under section 9.
       (8) Director.--The term ``Director'' means the Director of 
     the National Park Service.
       (9) Flight-free park.--The term ``flight-free park'' means 
     a unit over which commercial air tour operations are 
     prohibited.
       (10) Unit.--The term ``unit'' means a unit of the National 
     Park System.

     SEC. 4. NATIONAL PARK AIRSPACE MANAGEMENT PLANS.

       (a) In General.--The Director and the Administrator shall, 
     in accordance with this section, develop and establish a plan 
     for the management of the airspace above each unit that is 
     affected by commercial air tour flights to the extent that 
     the Director considers the unit to be a unit requiring an 
     airspace management plan.
       (b) Plan Purpose.--The purpose of each plan developed under 
     subsection (a) is to minimize the adverse effects of 
     commercial air tour flights on the resources of a unit.
       (c) Development of Airspace Management Plans.--
       (1) Treatment of relevant expertise.--In developing plans 
     under subsection (a), the Administrator shall defer to the 
     Director in matters relating to the identification and 
     [[Page S8112]] protection of park resources, and the Director 
     shall defer to the Administrator in matters relating to the 
     safe and efficient management of airspace.
       (2) Negotiated rulemaking.--In developing a plan for a 
     unit, the Director and the Administrator shall consider 
     utilizing negotiated rulemaking procedures as specified under 
     subchapter III of chapter 5 of title 5, United States Code, 
     if the Director and the Administrator determine that the 
     utilization of those procedures is in the public interest.
       (d) Comment on Plans.--In developing a plan for a unit, the 
     Director and the Administrator shall--
       (1) ensure that there is sufficient opportunity for public 
     comment by air tour operators, environmental organizations, 
     and other concerned parties; and
       (2) give due consideration to the comments and 
     recommendations of the Council and the Federal Interagency 
     Airspace/Natural Resource Coordination Group, or any 
     successor organization to that entity.
       (e) Resolution of Plan Inadequacies.--If the Director and 
     the Administrator disagree with respect to any portion of a 
     proposed plan under subsection (a), the Director and the 
     Administrator shall refer the proposed plan to the Secretary 
     of the Interior and the Secretary of Transportation, and the 
     Secretaries shall jointly resolve the disagreement.
       (f) Assessment of Effects of Overflights.--The Director and 
     the Administrator may jointly conduct studies to ascertain 
     the effects of low-level flights of commercial air tour 
     aircraft over units that the Director and the Administrator 
     consider necessary for the development of plans under 
     subsection (a).
       (g) Periodic Review.--Not less frequently than every 5 
     years after the date of establishment of a plan under 
     subsection (a), the Director and the Administrator shall 
     review the plan. The purpose of the review shall be to ensure 
     that the plan continues to meet the purposes for the plan. 
     The Director and the Administrator may revise a plan if they 
     jointly determine, based on that review, that the revision is 
     advisable.
       (h) Flights Over Units Covered by Plans.--
       (1) Agreement.--A commercial air tour operator may not 
     conduct commercial air tour flights in the airspace over a 
     unit covered by an airspace management plan developed under 
     subsection (a) unless the commercial air tour operator enters 
     into an agreement with the Director and the Administrator 
     that authorizes such flights.
       (2) Contents.--An agreement under paragraph (1) shall--
       (A) provide for the application of relevant provisions of 
     the airspace management plan for the unit concerned to the 
     commercial air tour operator; and
       (B) to the maximum extent practicable, provide for the 
     conduct of air tour flights by the air tour operator in a 
     manner that minimizes the adverse effects of the air tour 
     flights on the environment of the unit.

     SEC. 5. FLIGHT-FREE PARKS.

       For units that, as of January 1, 1995, experienced no 
     overflights by commercial air tour operators, the Director, 
     in consultation with the Administrator, shall--
       (1) prescribe criteria to identify units where air tour 
     flights by commercial air tour aircraft would be incompatible 
     with or injurious to the purposes and values for which the 
     units were established;
       (2) identify any units that meet those criteria; and
       (3) designate those units as ``flight-free park'' units.

     SEC. 6. SINGLE OPERATIONAL RULE FOR COMMERCIAL AIR TOUR 
                   OPERATIONS.

       (a) In General.--Except as provided in subsection (b), the 
     Administrator, after notice and hearing on the record, shall 
     issue a regulation governing the operation of all air tour 
     aircraft flights by commercial air tour operators over units.
       (b) Separate Operational Rules.--
       (1) In general.--The Administrator may prescribe separate 
     operational rules governing the conduct of flights by fixed-
     wing aircraft and by rotorcraft if the Administrator 
     determines under subsection (a) that separate rules are 
     warranted.
       (2) Development of operational rule.--In developing an 
     operational rule under paragraph (1), the Administrator 
     shall--
       (A) consider whether differences in the characteristics and 
     effects on the environment of fixed-wing aircraft and 
     rotorcraft warrant the development of separate operational 
     rules with respect to that craft;
       (B) provide a mechanism for the Director to recommend 
     individual units or geographically proximate groups of units 
     to be designated as aerial sightseeing areas, as defined by 
     section 92.01 of the Federal Aviation Administration 
     Handbook, dated January 1992; and
       (C) provide a mechanism for the Director to obtain 
     immediate assistance from the Administrator in resolving 
     issues relating to the use of airspace above units with 
     respect to which the issues are of a critical, time-sensitive 
     nature.
       (d) Effect on Agreements.--Nothing in this section is 
     intended to preclude the Administrator, the Director, and a 
     commercial air tour operator from entering into, under 
     section 4(h), an agreement on the conduct of air tour flights 
     by the air tour operator over a particular unit under 
     different terms and conditions from those imposed by an 
     operational rule promulgated under this subsection.

     SEC. 7. AIRCRAFT SAFETY.

       (a) Development of a Single Standard for Certifying 
     Commercial Air Tour Operators.--
       (1) Commencement of rulemaking.--The Administrator shall 
     initiate formal rulemaking proceedings (which shall include a 
     hearing on the record) for the purpose of revising the 
     regulations contained in part 135 of title 14, Code of 
     Federal Regulations (relating to air taxi operators and 
     commercial operators), to prescribe a new subpart to 
     specifically cover all commercial air tour operators (as that 
     term shall be defined by the Federal Aviation Administration 
     under the subpart) that conduct commercial air tour flights 
     over units.
       (2) Covered matters.--The regulations prescribed under 
     subsection (a) shall address safety and environmental issues 
     with respect to commercial air tour flights over units. In 
     prescribing the regulations, the Administrator shall attempt 
     to minimize the financial and administrative burdens imposed 
     on commercial air tour operators.
       (b) Aircraft Markings.--
       (1) Requirement.--Each operator of commercial air tour 
     aircraft shall display on each air tour aircraft of the 
     operator the identification marks described in paragraph (2).
       (2) Identification marks.--The identification marks for the 
     aircraft of a commercial air tour operator shall--
       (A) be unique to the operator;
       (B) be not less than 36 inches in length (or a size 
     consistent with the natural configuration of the aircraft 
     fuselage);
       (C) appear on both sides of the air tour aircraft of the 
     air tour operator and on the underside of the aircraft; and
       (D) be applied to the air tour aircraft of the air tour 
     operator in a highly visible color that contrasts sharply 
     with the original base color paint scheme of the aircraft.
       (c) Aeronautical Charts.--The Administrator shall ensure 
     that the boundaries of each unit and the provisions of the 
     airspace management plan, operational rule, or Special 
     Federal Aviation Regulation (SFAR), if any, with respect to 
     each unit are accurately displayed on aeronautical charts.
       (d) Flight Monitoring Systems.--
       (1) In general.--The Administrator shall carry out a study 
     of the feasibility and advisability of requiring that 
     commercial air tour aircraft operating in the airspace over 
     units have onboard an automatic flight tracking system 
     capable of monitoring the altitude and ground position of the 
     commercial air tour aircraft.
       (2) Determination by administrator.--If the Administrator 
     determines under the study required under paragraph (1) that 
     the use of flight tracking systems in commercial air tour 
     aircraft is feasible and advisable, the Administrator and the 
     Director shall jointly develop a plan for implementing a 
     program to monitor the altitude and position of commercial 
     air tour aircraft over units.
       (e) National Data Base for Commercial Air Tour Operators.--
     The Administrator shall--
       (1) establish and maintain a data base concerning all 
     commercial air tour aircraft operated by commercial air tour 
     operators that shall be designed to provide data that shall 
     be used in making--
       (A) determinations of--
       (i) the scope of commercial air tour flights; and
       (ii) accident rates for commercial air tour flights; and
       (B) assessments of the safety of commercial air tour 
     flights; and
       (2) on the basis of the information in the data base 
     established under paragraph (1), ensure that each Flight 
     Standards District Office of the Administration that serves a 
     district in which commercial air tour operators conduct 
     commercial air tour flights is adequately staffed to carry 
     out the purposes of this Act.

     SEC. 8. EXCEPTIONS.

       (a) Flight Emergencies.--This Act shall not apply to any 
     aircraft experiencing an in-flight emergency, participating 
     in search and rescue, firefighting or police emergency 
     operations, carrying out park administration or maintenance 
     operations, or complying with air traffic control 
     instructions.
       (b) Flights by Military Aircraft.--This Act shall not apply 
     to flights by military aircraft, except that the Secretary of 
     Defense is encouraged to work jointly with the Secretary of 
     Transportation and the Secretary of Interior in pursuing 
     means to mitigate the impact of military flights over units.
       (c) Flights for Commercial Aerial Photography.--The 
     Director and the Administrator shall jointly develop 
     restrictions and fee schedules for aircraft or rotorcraft 
     engaged in commercial aerial photography over units at 
     altitudes that the Director and the Administrator determine 
     will impact adversely the resources and values of affected 
     units.

     SEC. 9. NATIONAL PARK OVERFLIGHT ADVISORY COUNCIL.

       (a) Establishment.--There is established a commission to be 
     known as the ``National Park Overflight Advisory Council''.
       (b) Membership.--
       (1) In general.--The Council shall be comprised of members 
     from each of the following groups, appointed jointly by the 
     Director and the Administrator: [[Page S8113]] 
       (A) Environmental or conservation organizations, citizens' 
     groups, and other groups with similar interests.
       (B) The commercial air tour industry and organizations with 
     similar interests.
       (C) Representatives of departments or agencies of the 
     Federal Government.
       (D) Such other persons as the Administrator and the 
     Director consider appropriate.
       (c) Duties.--The Council shall--
       (1) determine the effects of commercial air tour flights in 
     the airspace over the units on the environment of the units;
       (2) determine the economic effects of restrictions or 
     prohibitions on the flights;
       (3) solicit and receive comments from interested 
     individuals and groups on the flights;
       (4) develop recommendations for means of reducing the 
     adverse effects of the flights on the units;
       (5) explore financial and other incentives that could 
     encourage manufacturers to advance the state-of-the-art in 
     quiet aircraft and rotorcraft technology and encourage 
     commercial air tour operators to implement the technology in 
     flights over units;
       (6) provide comments and recommendations to the Director 
     and the Administrator under section 4;
       (7) provide advice or recommendations to the Director, the 
     Administrator, and other appropriate individuals and groups 
     on matters relating to flights over units; and
       (8) carry out such other activities as the Director and the 
     Administrator jointly consider appropriate.
       (d) Meetings.--The Council shall first meet not later than 
     180 days after the date of enactment of this Act, and shall 
     meet thereafter at the call of a majority of the members of 
     the Council.
       (e) Administration.--
       (1) Compensation of non-federal members.--Members of the 
     Council who are not officers or employees of the Federal 
     Government shall serve without compensation for their work on 
     the Council, but shall be allowed travel expenses, including 
     per diem in lieu of subsistence, in the same manner as 
     persons employed intermittently in the Government service 
     under section 5703(b) of title 5, United States Code, to the 
     extent funds are available therefor.
       (2) Compensation of federal members.--Members of the 
     Council who are officers or employees of the Federal 
     Government shall serve without compensation for their work on 
     the Council other than that compensation received in their 
     regular public employment, but shall be allowed travel 
     expenses, including per diem in lieu of subsistence, as 
     authorized by law, to the extent funds are available 
     therefor.
       (f) Reports.--The Council shall annually submit to 
     Congress, the Administrator, and the Director a report that--
       (1) describes the activities of the Council under this 
     section during the preceding year; and
       (2) sets forth the findings and recommendations of the 
     Council on matters related to the mitigation of the effects 
     on units of flights of commercial air tour operators over 
     units.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     the provisions of this section.

     SEC. 10. EXEMPTION FOR STATE OF ALASKA.

       Nothing in this Act shall affect--
       (1) the management of units in the State of Alaska; or
       (2) any aircraft operations over or within units in the 
     State of Alaska.
                                 ______

      By Mr. BRADLEY:
  S. 906. A bill to amend title 18, United States Code, to add multiple 
deaths as an aggravating factor in determining whether a sentence of 
death is to be imposed on a defendant, and for other purposes; to the 
Committee on the Judiciary.


                     the death penalty act of 1995

 Mr. BRADLEY. Mr. President, I introduce a bill that will make 
multiple murders an aggravating factor in determining whether a 
sentence of death is justified.
  Mr. President, on March 21, 1995, Christopher Green murdered four 
people and critically injured another in the robbery of a postal 
substation in my hometown of Montclair, NJ. Two postal workers, Ernest 
Spruill and Scott Walensky, and two customers, Robert Leslie and George 
Lomaga, were forced into a back room and made to lie down on the floor. 
They were then shot in the back of their heads multiple times at point 
blank range, execution-style, with a 9-millimeter Taurus semiautomatic 
pistol containing a 15-round capacity magazine. The magazine contained 
deadly, flesh-ripping Black Talon bullets which expand upon impact with 
human tissue. A third customer, David Grossman, entered the post office 
as the robbery was in progress. He was shot in the face. By the grace 
of God, however, he survived the attack.
  Yesterday in Federal court Christopher Green admitted his guilt in 
intentionally murdering Ernest Spruill, Scott Walensky, Robert Leslie, 
and George Lomaga, and of attempting to kill David Grossman. He told 
the court that he had worked for the Montclair Post Office for parts of 
1991, 1992, and 1993, and had dealings with the substation where the 
crime occurred. Mr. President, Christopher Green further admitted that 
he knew that the substation had minimal security measures in place, and 
that thousands of dollars in cash were kept at the substation. He also 
stated in court that he knew Ernest Spruill and Scott Walensky.
  Mr. President, Christopher Green used a 9-millimeter Taurus 
semiautomatic pistol containing deadly Black Talon bullets. You may 
recall that Black Talon bullets produce razor-sharp, reinforced radial 
petals that expand upon impact into a mushroom or claw configuration, 
producing maximum tissue damage in the wake of the penetrating core. 
These bullets are designed for one purpose and that is to kill the 
intended target. Mr. President, Christopher Green admitted yesterday 
that he knew that the bullets that he possessed during the robbery--
Black Talon bullets--had the propensity to inflict tremendous internal 
damage when he viciously murdered Ernest Spruill, Scott Walensky, 
Robert Leslie, and George Lomaga, and attempted to kill David Grossman.
  Mr. President, for committing this horrible crime, Christopher Green 
will be sentenced to life in prison without the possibility of parole. 
While he will never walk the streets of America as a free citizen 
again, Mr. President, the U.S. attorney for the District of New Jersey 
expressed frustration that her ability to seek the death penalty in 
this case was limited because the death penalty statute does not list 
multiple murders as an aggravating factor.
  Mr. President, the determination of whether the death penalty is to 
apply is made in a separate trial following conviction. A jury must 
unanimously find certain statutorily defined aggravating factors to 
justify the imposition of the death penalty. Where the commission of a 
homicide occurs, such factors include, among others; first, a previous 
conviction of a violent felony involving a firearm; second, two 
previous felony drug offense convictions; or third, the murder of high 
public officials, including the President, as noted by the U.S. 
attorney for the District of New Jersey, ``[i]nexplicably, 
multiple murder--even execution style murder--is not listed in the law 
as an aggravating factor.''
  In order to fix this glaring limitation in Federal death penalty law, 
Mr. President, this bill would add multiple murders to the list of 
aggravating factors presently available to determine whether a sentence 
of death can be imposed on a defendant who commits homicide. When 
Christopher Green purchased the weapon used in this mass murder, police 
performed a background check and found that Green had no criminal 
record. Because he had no prior criminal record, the U.S. attorney was 
severely limited in her ability to seek the death penalty. This bill 
will therefore strengthen the death penalty law by providing that those 
who commit atrocious multiple murders will be prosecuted under the 
death penalty statute, irrespective of whether they have prior criminal 
records.
  Mr. President, I believe that the death penalty should be available 
where an individual commits multiple murders. The senseless spiral of 
violence burns in many places. No one is immune. Indeed, the mass 
murders in Montclair occurred in a community that was described in the 
recent issue of New Jersey Monthly as ``a desirable community where 
parents feel safe allowing young children to ride their bicycles around 
town.'' Because of this epidemic of violence, every tool in our legal 
arsenal, including the death penalty, must be employed to make our 
communities safe.
  Mr. President, the horror and devastation of violence impacts our 
communities in immeasurable ways. I was in Montclair recently, and I 
met with the widow of one of the victims. As I spoke with her, I saw 
the pain and despair in her eyes. I felt
 her anger, hurt, and confusion. Mr. President, her expressions 
communicated to me her yearning to understand exactly why this horrible 
event could claim her husband and devastate her life in this great 
country of ours. As I departed Montclair, Mr. President, I promised 
[[Page S8114]] her that I would continue to do everything in my power 
to return our communities to places where ``parents feel safe allowing 
young children to ride their bicycles around town.'' This bill, Mr. 
President, is one more installment of that promise.

  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. 906

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

     SECTION 1. MULTIPLE DEATHS AS AGGRAVATING FACTOR.

       Section 3592(c) of title 18, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(16) Multiple deaths.--The death, or injury resulting in 
     death, of more than 1 person, occurred during the commission 
     of the crime.''.
                                 ______

      By Mr. MURKOWSKI (for himself, Mr. Leahy, Mr. Campbell, Mr. Kyl, 
        Mr. Brown, Mr. Gregg, Mr. Craig, and Mr. Domenici):
  S. 907. A bill to amend the National Forest Ski Area Permit Act of 
1986 to clarify the authorities and duties of the Secretary of 
Agriculture in issuing ski area permits on National Forest System lands 
and to withdraw lands within ski area permit boundaries from the 
operation of the mining and mineral leasing laws; to the Committee on 
Energy and Natural Resources.


                    forest service land legislation

 Mr. MURKOWSKI. Mr. President, I am today introducing 
legislation to resolve a longstanding problem ski areas permittees on 
Forest Service land have encountered with the fee system the Forest 
Service developed to calculate their rental fees. This legislation 
creates a new and simplified ski area fee system to calculate rental 
fees for these ski areas for use of the national forest lands.
  This same fee system legislation passed the Senate during the 102d 
Congress but time ran out before the legislation was considered in the 
House. This proposal was determined to be revenue neutral to the United 
States by the Congressional Budget Office. The ski area permittees 
support this proposal because it is revenue neutral and at the same 
time collects their fees utilizing a simplified formula that everyone 
can understand. The Forest Service manual and handbook currently 
contain over 40 pages of guidelines on the currently utilized fee 
system. Ski area permittees and the public have a significant 
difficulty understanding this system. The new fee system that will be 
created by this legislation is set out on one page and is easy for 
everyone to understand.
  This legislation continues to receive bipartisan support and I hope 
that more Senators will join our effort to bring some common sense to 
how ski areas calculate their rental fees on the national forests. This 
legislation will reduce some of the management problems of the Forest 
Service. This simplification of the ski area fee system will eliminate 
the need for the Forest Service to apply and audit the complex rental 
fee system that they now have in their manual. The new fee system in 
this proposed legislation will reduce the fee system to a simple 
formula based on gross revenue of the ski area permittee and from 
clearly defined sources. Therefore there will be a significant 
reduction in the bookkeeping and administrative tasks for both the 
Forest Service and the ski areas.
  I hope that hearing can be held soon on this legislation so that the 
new ski area fee system can be put in place as soon as possible. 
Simplification of this fee system is consistent with reinvention and 
downsizing the Federal Government.
                                 ______

      By Mr. LIEBERMAN:
  S. 909. A bill to amend part I of title 35, United States Code, to 
provide for the protection of inventors contracting for invention 
development services; to the Committee on the Judiciary.


                  the inventor protection act of 1995

 Mr. LIEBERMAN. Mr. President, today, I am introducing the 
Inventor Protection Act of 1995, which is intended to plug a leak in 
the longrunning pipeline of American ingenuity, and to make sure that 
inventors are free to pursue their dreams, without losing their money 
to conartists.
  As Americans, we live in the most inventive society on Earth. From 
Franklin to Edison to Henry Ford and to Steven Jobs, we have a long 
tradition of dreamers, tinkerers and creators, working in basements and 
garages, motivated by the pervasive quest to build a better mousetrap. 
The very symbol of a new idea, which is the light bulb, is, of course, 
an American invention.
  The Founding Fathers even recognized, as we sometimes forget, the 
importance of protecting the inventive spirit. In article I, section 8 
of the Constitution of the United States, they empowered Congress to 
create a Federal patent system to promote the progress of science and 
useful arts.
  Now, more than two centuries later, in an era of intense global 
competition, that mission has become even more important. We must do 
all we can to make sure good ideas get to market. Unfortunately, 
though, for too many inventors today, the path to commercialization is 
strewn with hazards.
  It has been said that a person seeking to build a better mousetrap 
today will probably run into capital and material shortages, patent 
infringement lawsuits, work stoppages, product liability suits, and the 
omnipresent burden of taxes. But there is another threat out there, one 
that is as resilient and longstanding as the American spirit of 
ingenuity, and that threat is the American scam artist.
  Each year thousands of inventors lose tens of millions of dollars to 
deceptive invention marketing companies that take advantage of their 
ideas and their dreams. Last year, as then-chairman of the Subcommittee 
on Regulation and Governmental Affairs, I held a hearing on the 
problems presented by the invention marketing industry. Witness after 
witness testified how dozens of companies, under broad claims of 
helping inventors, have actually set up schemes in which inventors 
spend thousands of dollars for services to market their invention--a 
service that companies regularly fail to provide. State and Federal 
laws have been vague and ineffective in this area, leaving consumers 
virtually helpless and lacking the information they need to make truly 
informed decision about how to develop and sell their idea.
  To understand the scope of the problem, let me describe how the fraud 
works: These companies attract inventors through ads that include a 
toll-free number that an inventor calls to request an invention 
evaluation form. The inventor returns the form, which includes a full 
description of their designs, with the expectation that it will be 
evaluated by qualified experts.
  In fact, according to hearing testimony by the FTC and the Patent and 
Trademark Office [PTO], no expert evaluation occurs. Instead, the form 
is referred to a salesperson who calls the inventor and tires to 
convince the inventor to purchase a product research report, which the 
inventor is led to believe will evaluate the patentability and 
commercial potential of the idea. The price for the product research 
report is generally around $500. Instead of an informative, indepth 
study, the inventor receives a boilerplate report of little value which 
invariably concludes that the idea is patentable. That statement 
typically is deceiving since almost any idea may be patented. However, 
the patent may merely protect the design of the idea, not the function 
or usefulness. Such a design patent
 is typically worthless in attempting to commercialize the product.

  The next step in the scheme involves convincing the inventor to 
purchase patent and marketing services. Again, the services are useless 
and quite expensive. The average charge is $7,000 and ranges as high as 
$10,000. For this sum, the inventor routinely receives a few generic 
press releases about the idea and a brief mention in catalogs exhibited 
at various trade shows. In almost every case, this marketing plan is 
essentially worthless.
  While there are no official figures available on how many people 
annually contract with invention marketers, one person who works at a 
legitimate non-profit center that helps inventors testified that he 
estimates the number to exceed 25,000. Given an average cost of $7,000 
for services that companies charge, that would represent a total of 
$175 million in revenue for these companies, with virtually no benefit 
to inventors. [[Page S8115]] 
  The legislation that I propose to crack down on these scam artists is 
simple, yet stringent. It uses a multi-faceted approach to separate the 
legitimate companies from the fraudulent and guarantee real protection 
for America's inventors.
  To start with, I propose requiring invention marketing companies to 
register with the U.S. Patent and Trademark Office. This registration 
requirement would be fully funded by fees paid by these companies, and 
would take advantage of the existing structure already set up for 
registering attorneys to administer it. As a result, no new Federal 
spending would be necessary, nor would any new bureaucracy need be 
created.
  The companies would also be required to provide a complete list of 
their officers so shady characters could not hide behind ever-changing 
corporate names. One former salesperson for an invention marketing 
company said his company changed names three times in less than 6 
years: ``To evade consumer action, the MO was to frequently change 
company names * * * You forgot sometimes what company you are working 
for.'' Complaints against these companies will also be tracked.
  In addition, my bill creates standards for contracts between 
inventors and invention developers to help inventors in making informed 
decisions about developers. One of these standards would require 
companies to attach a cover sheet to every contract that lists the 
number of applicants the company has rejected, which is usually very 
small, and the number of customers who have actually earned a profit 
from their inventions, which is also usually very small. If the 
invention marketing company fails to meet the guidelines set forth in 
the bill, customers can void these contracts, and even sue for damages 
in Federal court.
  Mr. President, this legislation is just the type of law that 
Americans are clamoring for. It addresses a specific identified problem 
that can be best solved by the Federal Government and does so without 
creating a new bureaucracy. Although several States have passed 
legislation to address the problem, they have largely failed to wipe 
out this threat because the companies can simply move to States with 
weak laws and lax enforcement. Best of all, this legislation will not 
cost American taxpayers a cent; the entire burden will be covered by 
the registration fees called for in the bill.
  I urge my colleagues to support this bill to ensure that inventors as 
well as their ideas are protected.
  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. 909

       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 ``Inventor Protection Act of 
     1995''.

     SEC. 2. INVENTION DEVELOPMENT SERVICES.

       Part I of title 35, United States Code, is amended by 
     adding after chapter 4 the following new chapter:
              ``CHAPTER 5--INVENTION DEVELOPMENT SERVICES
``Sec.
``51. Definitions.
``52. Contracting requirements.
``53. Standard provisions for cover notice.
``54. Reports to customer required.
``55. Mandatory contract terms.
``56. Remedies.
``57. Enrollment of invention developers.
``58. Records of complaints.
``59. Enrollment fee.
``60. Suspension or exclusion from enrollment.
``61. Unenrolled representation as invention developer.
``62. Rule of construction.
     ``Sec. 51. Definitions

       ``For purposes of this chapter, the term--
       ``(1) `contract for invention development services' means a 
     contract by which an invention developer undertakes invention 
     development services for a customer;
       ``(2) `customer' means any person, firm, partnership, 
     corporation, or other entity who enters into a contract for 
     invention development services;
       ``(3) `invention developer' means any person, firm, 
     partnership or corporation, who offers to perform or performs 
     for a customer any act described under paragraph (4), 
     except--
       ``(A) any department or agency of the Federal, State, or 
     local government;
       ``(B) any nonprofit, charitable, scientific, or educational 
     organization, qualified under applicable State law or 
     described under section 170(b)(1)(A) of the Internal Revenue 
     Code of 1986; or
       ``(C) any person duly registered and in good standing 
     before the United States Patent and Trademark Office acting 
     within the scope of that person's registration to practice 
     before the United States Patent and Trademark Office; and
       ``(4) `invention development services' means, with respect 
     to an invention submitted by a customer, any act involved 
     in--
       ``(A) evaluating the invention to determine its 
     protectability as some form of intellectual property;
       ``(B) evaluating the invention to determine its commercial 
     potential; or
       ``(C) marketing, brokering, licensing, selling, or 
     promoting the invention or a product or service in which the 
     invention is incorporated or used.

     ``Sec. 52. Contracting requirements

       ``(a)(1) Every contract for invention development services 
     shall be in writing and shall be subject to the provisions of 
     this chapter. A copy of the signed written contract shall be 
     given to the customer at the time the customer enters into 
     the contract.
       ``(2) If a contract is entered into for the benefit of a 
     third party, such party shall be considered a customer for 
     the purposes of this chapter.
       ``(b) The invention developer shall--
       ``(1) state in a written document, at the time a customer 
     enters into a contract for invention development services, 
     whether the usual business practice of the invention 
     developer is to--
       ``(A) seek more than 1 contract in connection with an 
     invention; or
       ``(B) seek to perform services in connection with an 
     invention in 1 or more phases, with the performance of each 
     phase covered in 1 or more subsequent contracts; and
       ``(2) supply to the customer a copy of the written document 
     together with a written summary of the usual business 
     practices of the invention developer including--
       ``(A) the usual business terms of contracts; and
       ``(B) the approximate amount of the usual fees of the 
     invention developer or other consideration, that may be 
     required from the customer for each of the services provided 
     by the developer.
       ``(c)(1) Notwithstanding any contractual provision to the 
     contrary, no payment for invention development services shall 
     be required, accepted, or received until the expiration of a 
     period of 5 business days beginning on the date on which the 
     customer receives a copy of the contract for invention 
     development services signed by the invention developer and 
     the customer.
       ``(2) Delivery of a promissory note, check, bill of 
     exchange, or negotiable instrument of any kind to the 
     invention developer or to a third party for the benefit of 
     the invention developer, irrespective of the date or dates 
     appearing in such instrument, shall be deemed payment 
     received by the invention developer on the date received for 
     the purpose of this section.
       ``(d)(1) Until 5 business days after the payment described 
     under subsection (c) is made, the parties shall have the 
     option to refuse to enter into the contract as provided under 
     paragraphs (2) and (3).
       ``(2) The customer may exercise the option by--
       ``(A) refraining from making payment to the invention 
     developer; or
       ``(B) providing written notice of the refusal to the 
     invention developer.
       ``(3) The invention developer may exercise the option by 
     giving to the customer a written notice of the exercise of 
     the option. The written notice shall become effective upon 
     receipt by the customer.

     ``Sec. 53. Standard provisions for cover notice

       ``(a) Every contract for invention development services 
     shall have a conspicuous and legible cover sheet attached 
     with the following notice imprinted thereon in boldface type 
     of not less than 12-point size:
       ```YOU ARE NOT REQUIRED TO MAKE ANY PAYMENTS UNDER THIS 
     CONTRACT UNTIL FIVE (5) BUSINESS DAYS AFTER YOU SIGN THIS 
     CONTRACT AND RECEIVE A COMPLETED COPY OF IT.
       ```THE TOTAL NUMBER OF INVENTIONS EVALUATED BY THE 
     INVENTION DEVELOPER FOR COMMERCIAL POTENTIAL IN THE PAST FIVE 
     (5) YEARS IS __________. OF THAT NUMBER, __________ RECEIVED 
     POSITIVE EVALUATIONS AND __________ RECEIVED NEGATIVE 
     EVALUATIONS.
       ```IF YOU ASSIGN EVEN A PARTIAL INTEREST IN THE INVENTION 
     TO THE INVENTION DEVELOPER, THE INVENTION DEVELOPER MAY HAVE 
     THE RIGHT TO SELL OR DISPOSE OF THE INVENTION WITHOUT YOUR 
     CONSENT AND MAY NOT HAVE TO SHARE THE PROFITS WITH YOU.
       ```THE TOTAL NUMBER OF CUSTOMERS WHO HAVE CONTRACTED WITH 
     THE INVENTION DEVELOPER IN THE PAST FIVE (5) YEARS IS 
     __________. THE TOTAL NUMBER OF CUSTOMERS KNOWN BY THIS 
     INVENTION DEVELOPER TO HAVE RECEIVED, BY VIRTUE OF THIS 
     INVENTION DEVELOPER'S PERFORMANCE, AN AMOUNT OF MONEY IN 
     EXCESS OF THE AMOUNT PAID BY THE CUSTOMER TO THIS INVENTION 
     DEVELOPER IS ______________. THE NAMES AND ADDRESSES OF SUCH 
     CUSTOMERS, IF ANY, SHALL BE PROVIDED TO ANY PERSON REQUESTING 
     IT.
       ```THE OFFICERS OF THIS INVENTION DEVELOPER HAVE 
     COLLECTIVELY OR [[Page S8116]] INDIVIDUALLY BEEN AFFILIATED 
     IN THE LAST TEN (10) YEARS WITH THE FOLLOWING INVENTION 
     DEVELOPMENT COMPANIES: (LIST THE NAMES AND ADDRESSES OF ALL 
     PREVIOUS INVENTION DEVELOPMENT COMPANIES WITH WHICH THE 
     PRINCIPAL OFFICERS HAVE BEEN AFFILIATED AS OWNERS, AGENTS, OR 
     EMPLOYEES). YOU ARE ENCOURAGED TO CHECK WITH THE UNITED 
     STATES PATENT AND TRADEMARK OFFICE, THE FEDERAL TRADE 
     COMMISSION, YOUR STATE ATTORNEY GENERAL'S OFFICE, AND THE 
     BETTER BUSINESS BUREAU FOR ANY COMPLAINTS FILED AGAINST ANY 
     OF THESE COMPANIES.
       ```YOU ARE ENCOURAGED TO CONSULT WITH AN ATTORNEY OF YOUR 
     OWN CHOOSING BEFORE SIGNING THIS CONTRACT. BY PROCEEDING 
     WITHOUT THE ADVICE OF A QUALIFIED ATTORNEY, YOU COULD LOSE 
     ANY RIGHTS YOU MIGHT HAVE IN YOUR IDEA OR INVENTION.'.
       ``(b)(1) In addition to the requirements of subsection (a), 
     every contract for invention development services shall 
     contain the appropriate matter under paragraph (2) or (3).
       ``(2) For invention developers who are enrolled the 
     contract shall contain the following:
       ```(NAME OF INVENTION DEVELOPER) IS ENROLLED WITH THE 
     COMMISSIONER OF PATENTS AND TRADEMARKS AND BEARS ENROLLMENT 
     NUMBER ____. THE FACT THAT AN INVENTION DEVELOPER IS ENROLLED 
     WITH THE COMMISSIONER OF PATENTS AND TRADEMARKS AS REQUIRED 
     BY LAW IS NOT AN ENDORSEMENT OF THE INVENTION DEVELOPER NOR 
     IS IT AN INDICATOR THAT THEY ARE AUTHORIZED BY THE 
     COMMISSIONER TO REPRESENT APPLICANTS OR OTHER PARTIES BEFORE 
     THE PATENT AND TRADEMARK OFFICE IN PATENT, TRADEMARK, OR 
     OTHER MATTERS.'.
       ``(3) For invention developers who are not enrolled the 
     contract shall contain the following:
       ```(NAME OF INVENTION DEVELOPER) IS NOT ENROLLED WITH THE 
     COMMISSIONER OF PATENTS AND TRADEMARKS AS AN INVENTION 
     DEVELOPER. BY NOT SO ENROLLING, (NAME OF INVENTION DEVELOPER) 
     HAS INDICATED THAT IT WILL NOT OFFER TO PERFORM OR PERFORM 
     FOR A CUSTOMER ANY ACT INVOLVED IN FILING FOR AND OBTAINING 
     PATENT, TRADEMARK, OF DESIGN PROTECTION.'.
       ``(c) The cover notice shall contain the items required 
     under subsections (a) and (b) and the name, primary office 
     address, and local office address of the invention developer, 
     and may contain no other matter.

     ``Sec. 54. Reports to customer required

       ``With respect to every contract for invention development 
     services, the invention developer shall deliver to the 
     customer at the address specified in the contract, at least 
     at quarterly intervals throughout the term of the contract, a 
     written report that identifies the contract and includes--
       ``(1) a full, clear, and concise description of the 
     services performed to the date of the report and of the 
     services yet to be performed and names of all persons who 
     shall perform the services; and
       ``(2) the name and address of each person, firm, or 
     corporation to whom the subject matter of the contract has 
     been disclosed, the reason for each and every disclosure, the 
     nature of the disclosure, and copies of all responses 
     received as a result of those disclosures.

     ``Sec. 55. Mandatory contract terms

       ``(a) Each contract for invention development services 
     shall include in boldface type of not less than 12-point 
     size--
       ``(1) the terms and conditions of payment and contract 
     termination rights required under section 52;
       ``(2) a statement that the customer may avoid entering into 
     the contract by not making a payment to the invention 
     developer;
       ``(3) a full, clear, and concise description of the 
     specific acts or services that the invention developer 
     undertakes to perform for the customer;
       ``(4) a statement as to whether the invention developer 
     undertakes to construct, sell, or distribute one or more 
     prototypes, models, or devices embodying the invention of the 
     customer;
       ``(5) the full name and principal place of business of the 
     invention developer and the name and principal place of 
     business of any parent, subsidiary, agent, independent 
     contractor, and any affiliated company or person that may 
     perform any of the services or acts that the invention 
     developer undertakes to perform for the customer;
       ``(6) if any oral or written representation of estimated or 
     projected customer earnings is given by the invention 
     developer (or any agent, employee, officer, director, 
     partner, or independent contractor of such invention 
     developer) a statement of that estimation or projection and a 
     description of the data upon which such representation is 
     based;
       ``(7)(A) the name and address of the custodian of all 
     records and correspondence relating to the contracted for 
     invention development services, and a statement that the 
     invention developer is required to maintain all records and 
     correspondence relating to performance of the invention 
     development services for that customer for a period of not 
     less than 2 years after expiration of the term of the 
     contract for invention development services; and
       ``(B) a statement that before destruction or disposal of 
     the records and correspondence, the invention developer is 
     required to notify the customer and make such records and 
     correspondence available to the customer at a reasonable 
     cost; and
       ``(8) a statement setting forth a time schedule for 
     performance of the invention development services, including 
     an estimated date by which performance of the invention 
     development services is expected to be completed.
       ``(b) To the extent that the description of the specific 
     acts or services affords discretion to the invention 
     developer as to what specific acts or services shall be 
     performed, the invention developer shall be deemed a 
     fiduciary.
       ``(c) Records and correspondence described under subsection 
     (a)(7) shall be made available to the customer or the 
     representative of the customer for review and copying at the 
     customer's reasonable expense on the invention developer's 
     premises during normal business hours upon 7 days written 
     notice.

     ``Sec. 56. Remedies

       ``(a)(1) Any contract for invention development services 
     that does not comply with the applicable provisions of this 
     chapter shall be voidable at the option of the customer.
       ``(2) Any contract for invention development services 
     entered into in reliance upon any false, fraudulent, or 
     misleading information, representation, notice, or 
     advertisement of the invention developer (or any agent, 
     employee, officer, director, partner or independent 
     contractor of such invention developer) shall be voidable at 
     the option of the customer.
       ``(3) Any waiver by the customer of any provision of this 
     chapter shall be deemed contrary to public policy and shall 
     be void and unenforceable.
       ``(4) Any contract for invention development services made 
     by an unenrolled invention developer, as provided under 
     section 57, shall be voidable at the option of the customer.
       ``(b)(1) Any customer who is injured by a violation of this 
     chapter by an invention developer or by any false or 
     fraudulent statement, representation, or omission of material 
     fact by an invention developer (or any agent, employee, 
     director, officer, partner or independent contractor of such 
     invention developer) or by failure of an invention developer 
     to make all the disclosures required under this chapter, may 
     recover in a civil action against the invention developer (or 
     the officers, directors, or partners of such invention 
     developer) in addition to reasonable costs and attorneys' 
     fees, the greater of--
       ``(A) $5,000; or
       ``(B) the amount of actual damages sustained by the 
     customer.
       ``(2) Notwithstanding paragraph (1), the court may increase 
     damages up to 3 times the amount awarded.
       ``(c) For the purpose of this section, substantial 
     violation of any provision of this chapter by an invention 
     developer or execution by the customer of a contract for 
     invention development services in reliance on any false or 
     fraudulent statements, representations, or material omissions 
     shall establish a rebuttable presumption of injury.

     ``Sec. 57. Enrollment of invention developers

       ``(a) The Commissioner of Patents and Trademarks shall 
     require invention developers that offer to perform or perform 
     for a customer any act involved in filing for and obtaining 
     utility, design, or plant patent or trademark protection to 
     enroll annually with the Patent and Trademark Office. 
     Invention developers that offer to perform or perform such 
     acts through an agent, employee, officer, partner, or 
     independent contractor shall also enroll.
       ``(b) The enrollment required under subsection (a) shall 
     include disclosure of--
       ``(1)(A) the names and addresses of all principal officers 
     of the invention developer; and
       ``(B) the names and principal place of business of all 
     invention developers with which the principal officers have 
     been affiliated during the 10-year period before the date of 
     enrollment; and
       ``(2) require disclosure of any administrative, civil, or 
     criminal action taken against the invention developer (or any 
     officer, director, or partner of such invention developer) by 
     any agent of Federal, State, or local government.
       ``(c) Subject to the approval of the Secretary of Commerce, 
     the Commissioner may prescribe regulations that--
       ``(1) govern the conduct of invention developers and may 
     require an invention developer, before enrollment, to 
     demonstrate good reputation and necessary qualifications to 
     render to customers or other persons valuable service, 
     advice, and assistance in the invention development process;
       ``(2) provide which agents, employees, officers, partners, 
     independent contractors or other individuals of an invention 
     developer are required to enroll under subsection (a); and
       ``(3) provide--
       ``(A) what information and records held or retained by the 
     invention developer shall be required to be made available to 
     the Commissioner; and
       ``(B) the conditions under which such information and 
     records shall be made available.

     ``Sec. 58. Records of complaints

       ``(a) The Commissioner shall make all complaints received 
     by the Patent and [[Page S8117]] Trademark Office involving 
     invention developers publicly available.
       ``(b) The Commissioner may request complaints relating to 
     invention development services from any Federal or State 
     agency and include such complaints in the records maintained 
     under subsection (a).

     ``Sec. 59. Enrollment fee

       ``The Commissioner may establish reasonable fees to cover 
     all costs and expenses to carry out the provisions of this 
     chapter.

     ``Sec. 60. Suspension or exclusion from enrollment

       ``(a) The Commissioner may, after notice and opportunity 
     for a hearing, suspend or exclude, either generally or in any 
     particular case, from enrollment as an invention developer, 
     any person, firm, partnership, or corporation--
       ``(1) demonstrated to be--
       ``(A) incompetent;
       ``(B) disreputable;
       ``(C) liable for gross misconduct; or
       ``(D) not in compliance with the regulations established 
     under this chapter; or
       ``(2) who shall in any manner deceive, mislead, defraud, or 
     threaten any customer.
       ``(b) The reasons for any such suspension or exclusion 
     shall be duly recorded.
       ``(c) The United States District Court for the District of 
     Columbia under such conditions and upon such proceedings as 
     by rule determined by such court, may review the action of 
     the Commissioner upon the petition of the invention developer 
     so suspended or excluded.

     ``Sec. 61. Unenrolled representation as invention developer

       ``Whoever, not being enrolled as an invention developer 
     with the Patent and Trademark Office, holds himself out or 
     permits himself to be held out as so enrolled, or as being 
     qualified to provide invention development services, or 
     provides invention development services shall be guilty of a 
     misdemeanor and fined not more than $10,000 for each offense.

     ``Sec. 62. Rule of construction

       ``Except as expressly provided in this chapter, no 
     provision of this chapter shall be construed to affect any 
     obligation, right, or remedy provided under any other Federal 
     or State law.''.

     SEC. 3. TECHNICAL AND CONFORMING AMENDMENT.

       The table of chapters for part I of title 35, United States 
     Code, is amended by adding after the item relating to chapter 
     4 the following:

``5. Invention development services...........................51''.....
     SEC. 4. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), this 
     Act and the amendments made by this Act shall take effect 60 
     days after the date of the enactment of this Act.
       (b) Certain Requirements.--The provisions of sections 
     53(b), 56(a)(4), 57, 59, 60, and 61 of title 35, United 
     States Code (as added by section 2 of this Act) shall take 
     effect 1 year after the date of the enactment of this 
     Act.
                                 ______

      By Mr. CHAFEE (for himself, and Mr. Baucus):
  S. 910. A bill to amend the Internal Revenue Code of 1986 to provide 
an election to exclude from the gross estate of a decedent the value of 
certain land subject to a qualified conservation easement, and to make 
technical changes to alternative valuation rules; to the Committee on 
Finance.


           the american farm and ranch protection act of 1995

  Mr. CHAFEE. Mr. President, a serious environmental problem facing the 
country today is the loss of open space to development. All across the 
country, farms, ranches, forests, and wetlands are forced to give way 
to the pressures for new office buildings, shopping malls, and housing 
developments.
  America is losing over 4 square miles of land to development every 
day. In Rhode Island, over 11,000 acres of farmland have been lost to 
development since 1974. In many instances, this is simply the natural 
outgrowth of urbanization of our society. Other times it is the direct 
result of improper planning at the State and local levels.
  But frequently, the pressure comes from the need to raise funds to 
pay estate taxes. For those families where undeveloped land represents 
a significant portion of the estate's total value, the need to pay the 
tax creates powerful pressure to develop or sell off part or all of the 
land or to liquidate the timber resources of the land. Because land is 
appraised by the Internal Revenue Service according to its highest and 
best use, and such use is often its development value, the effect of 
the tax is to make retention of undeveloped land difficult.
  In addition, our current estate tax policy results in complicated 
valuation disputes between the donor's estate and the Internal Revenue 
Service. In many cases, the additional costs incurred as a result of 
these disagreements may cause a potential donor of a conservation 
easement to decide not to make the contribution.
  These open spaces improve the quality of life for Americans 
throughout the great Nation and provide important habitat for fish and 
wildlife. The question is how do we conserve our most valuable resource 
during this time of significant budget constraints.
  Mr. President, I think we need to restructure the Nation's estate tax 
laws to remove the disincentive for private property owners to conserve 
environmentally significant land. The American Farm and Ranch 
Protection Act, with I am introducing today along with Senator Baucus, 
will help to achieve this goal by providing an exemption from the 
estate tax for the value of land that is subject to a qualified, 
permanent conservation easement.
  This bill is similar to legislation that we introduced last year. The 
principles involved in this bill have been endorsed by the Piedmont 
Envionmental Council, the National Audubon Society, the American Farm 
Bureau, the Land Trust Alliance, and the National Trust for Historic 
Preservation.
  The bill excludes land subject to a conservation easement from the 
estate and gift taxes. Development rights retained by the family--most 
frequently the ability to use the property for a commercial purpose--
remain subject to the estate tax.
  In order to target the incentives under this bill to those areas that 
are truly at risk for development, the bill is limited to land that 
falls within a 50-mile radius of a metropolitan area, a national park 
or a national wilderness area.
  Conservation easements, which are entirely voluntary, are agreements 
negotiated by landowners in which a restriction upon the future use of 
land is imposed in order to conserve those aspects of the land that are 
publicly significant. To qualify for the estate tax exemption under 
this bill, such easements must be perpetual and must be made to 
preserve open space, to protect the natural habitat of fish, wildlife 
or plants, to meet a governmental conservation policy, or to preserve 
an historical important land area.
  I urge my colleagues to join me in this effort to save 
environmentally sensitive open spaces.
  Mr. President, I ask unanimous consent that a copy of the bill and a 
brief explanation of the legislation be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:
                                 S. 910

       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 ``American Farm and Ranch 
     Protection Act of 1995''.

     SEC. 2. TREATMENT OF LAND SUBJECT TO A QUALIFIED CONSERVATION 
                   EASEMENT.

       (a) Estate Tax With Respect to Land Subject to a Qualified 
     Conservation Easement.--Section 2031 of the Internal Revenue 
     Code of 1986 (relating to the definition of gross estate) is 
     amended by redesignating subsection (c) as subsection (d) and 
     by inserting after subsection (b) the following new 
     subsection:
       ``(c) Estate Tax With Respect to Land Subject to a 
     Qualified Conservation Easement.--
       ``(1) In general.--If the executor makes the election 
     described in paragraph (4), then, except as otherwise 
     provided in this subsection, there shall be excluded from the 
     gross estate the value of land subject to a qualified 
     conservation easement.
       ``(2) Treatment of certain indebtedness.--
       ``(A) In general.--The exclusion provided in paragraph (1) 
     shall not apply to the extent that the land is debt-financed 
     property.
       ``(B) Definitions.--For purposes of this paragraph--
       ``(i) Debt-financed property.--The term `debt-financed 
     property' means any property with respect to which there is 
     an acquisition indebtedness (as defined in clause (ii)) on 
     the date of the decedent's death.
       ``(ii) Acquisition indebtedness.--The term `acquisition 
     indebtedness' means, with respect to debt-financed property, 
     the unpaid amount of--

       ``(I) the indebtedness incurred by the donor in acquiring 
     such property,
       ``(II) the indebtedness incurred before the acquisition of 
     such property if such indebtedness would not have been 
     incurred but for such acquisition,
       ``(III) the indebtedness incurred after the acquisition of 
     such property if such indebtedness would not have been 
     incurred but for such acquisition and the incurrence of such 
     indebtedness was reasonably foreseeable at the time of such 
     acquisition, except that indebtedness incurred after the 
     acquisition of such property is not acquisition indebtedness 
     [[Page S8118]] if incurred to carry on activities directly 
     related to farming, ranching, forestry, horticulture, or 
     viticulture, and
       ``(IV) the extension, renewal, or refinancing of an 
     acquisition indebtedness.

       ``(3) Treatment of retained development right.--
       ``(A) In general.--Paragraph (1) shall not apply to the 
     value of any development right retained by the donor in the 
     conveyance of a qualified conservation easement.
       ``(B) Termination of retained development right.--If every 
     person in being who has an interest (whether or not in 
     possession) in such land shall execute an agreement to 
     extinguish permanently some or all of any development rights 
     (as defined in subparagraph (D)) retained by the donor on or 
     before the date for filing the return of the tax imposed by 
     section 2001, then any tax imposed by section 2001 shall be 
     reduced accordingly. Such agreement shall be filed with the 
     return of the tax imposed by section 2001. The agreement 
     shall be in such form as the Secretary shall prescribe.
       ``(C) Additional tax.--Failure to implement the agreement 
     described in subparagraph (B) within 2 years of the 
     decedent's death shall result in the imposition of an 
     additional tax in the amount of the tax which would have been 
     due on the retained development rights subject to such 
     agreement. Such additional tax shall be due and payable on 
     the last day of the 6th month following the end of the 2-year 
     period.
       ``(D) Development right defined.--For purposes of this 
     paragraph, the term `development right' means the right to 
     establish or use any structure and the land immediately 
     surrounding it for sale (other than the sale of the structure 
     as part of a sale of the entire tract of land subject to the 
     qualified conservation easement), or other commercial purpose 
     which is not subordinate to and directly supportive of the 
     activity of farming, forestry, ranching, horticulture, or 
     viticulture conducted on land subject to the qualified 
     conservation easement in which such right is retained.
       ``(4) Election.--The election under this subsection shall 
     be made on the return of the tax imposed by section 2001. 
     Such an election, once made, shall be irrevocable.
       ``(5) Calculation of estate tax due.--An executor making 
     the election described in paragraph (4) shall, for purposes 
     of calculating the amount of tax imposed by section 2001, 
     include the value of any development right (as defined in 
     paragraph (3)) retained by the donor in the conveyance of 
     such qualified conservation easement. The computation of tax 
     on any retained development right prescribed in this 
     paragraph shall be done in such manner and on such forms as 
     the Secretary shall prescribe.
       ``(6) Definitions.--For purposes of this subsection--
       ``(A) Land subject to a qualified conservation easement.--
     The term `land subject to a qualified conservation easement' 
     means land--
       ``(i) which is located in or within 50 miles of an area 
     which, on the date of the decedent's death, is--

       ``(I) a metropolitan area (as defined by the Office of 
     Management and Budget), or
       ``(II) a national park or wilderness area designated as 
     part of the National Wilderness Preservation System (unless 
     it is determined by the Secretary that land in or within 50 
     miles of such a park or wilderness area is not under 
     significant development pressure),

       ``(ii) which was owned by the decedent or a member of the 
     decedent's family at all times during the 3-year period 
     ending on the date of the decedent's death, and
       ``(iii) with respect to which a qualified conservation 
     easement is or has been made by the decedent or a member of 
     the decedent's family.
       ``(B) Qualified conservation easement.--The term `qualified 
     conservation easement' means a qualified conservation 
     contribution (as defined in section 170(h)(1)) of a qualified 
     real property interest (as defined in section 170(h)(2)(C)), 
     except that clause (iv) of section 170(h)(4)(A) shall not 
     apply, and the restriction on the use of such interest 
     described in section 170(h)(2)(C) shall include a prohibition 
     on commercial recreational activity.
       ``(C) Member of family.--The term `member of the decedent's 
     family' means any member of the family (as defined in section 
     2032A(e)(2)) of the decedent.
       ``(7) Application of this section to interests in 
     partnerships, corporations, and trusts.--The Secretary shall 
     prescribe regulations applying this section to an interest in 
     a partnership, corporation, or trust which, with respect to 
     the decedent, is an interest in a closely held business 
     (within the meaning of paragraph (1) of section 6166(b)).''
       (b) Carryover Basis.--Section 1014(a) of such Code 
     (relating to basis of property acquired from a decedent) is 
     amended by striking the period at the end of paragraph (3) 
     and inserting ``, or'' and by adding after paragraph (3) the 
     following new paragraph:
       ``(4) to the extent of the applicability of the exclusion 
     described in section 2031(c), the basis in the hands of the 
     decedent.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to estates of decedents dying after December 31, 
     1995.

     SEC. 3. GIFT TAX ON LAND SUBJECT TO A QUALIFIED CONSERVATION 
                   EASEMENT.

       (a) Gift Tax With Respect to Land Subject to a Qualified 
     Conservation Easement.--Section 2503 of the Internal Revenue 
     Code of 1986 (relating to taxable gifts) is amended by adding 
     at the end the following new subsection:
       ``(h) Gift Tax With Respect to Land Subject to a Qualified 
     Conservation Easement.--The transfer by gift of land subject 
     to a qualified conservation easement shall not be treated as 
     a transfer of property by gift for purposes of this chapter. 
     For purposes of this subsection, the term `land subject to a 
     qualified conservation easement' has the meaning given to 
     such term by section 2031(c), except that references to the 
     decedent shall be treated as references to the donor and 
     references to the date of the decedent's death shall be 
     treated as references to the date of the transfer by the 
     donor.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to gifts made after December 31, 1995.

     SEC. 4. QUALIFIED CONSERVATION CONTRIBUTION IS NOT A 
                   DISPOSITION.

       (a) Qualified Conservation Contribution Is Not a 
     Disposition.--Subsection (c) of section 2032A of the Internal 
     Revenue Code of 1986 (relating to alternative valuation 
     method) is amended by adding at the end the following new 
     paragraphs:
       ``(8) Qualified conservation contribution is not a 
     disposition.--A qualified conservation contribution (as 
     defined in section 170(h)) by gift or otherwise shall not be 
     deemed a disposition under subsection (c)(1)(A).
       ``(9) Exception for real property is land subject to a 
     qualified conservation easement.--If qualified real property 
     is land subject to a qualified conservation easement (as 
     defined in section 2031(c)), the preceding paragraphs of this 
     subsection shall not apply.''
       (b) Land Subject to a Qualified Conservation Easement Is 
     Not Disqualified.--Subsection (b) of section 2032A of such 
     Code (relating to alternative valuation method) is amended by 
     adding at the end the following subparagraph:
       ``(E) If property is otherwise qualified real property, the 
     fact that it is land subject to a qualified conservation 
     easement (as defined in section 2031(c)) shall not disqualify 
     it under this section.''
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to contributions made, and easements 
     granted, after December 31, 1995.

     SEC. 5. QUALIFIED CONSERVATION CONTRIBUTION WHERE SURFACE AND 
                   MINERAL RIGHTS ARE SEPARATED.

       (a) In General.--Section 170(h)(5)(B)(ii) of the Internal 
     Revenue Code of 1986 (relating to special rule) is amended to 
     read as follows:
       ``(ii) Special rule.--With respect to any contribution of 
     property in which the ownership of the surface estate and 
     mineral interests has been and remains separated, 
     subparagraph (A) shall be treated as met if the probability 
     of surface mining occurring on such property is so remote as 
     to be negligible.''
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to contributions made after December 
     31, 1992, in taxable years ending after such date.
           The American Farm and Ranch Protection Act of 1995

  The American Farm and Ranch Protection Act protects family lands and 
encourages the voluntary conservation of farmland, ranches, forest 
land, wetlands, wildlife habitat, open space and other environmentally 
sensitive property. It enables farmers and ranchers to continue to own 
and work their land by eliminating the estate and gift tax burden that 
threatens the current generation of owners. The bill does this in the 
following ways:
  By excluding from estate and gift taxes the value of land on which a 
qualified conservation easement has been granted if the land is located 
in or within a 50-mile radius of a metropolitan area, a National Park, 
or a wilderness area that is part of the National Wilderness Area 
System; and,
  By clarifying that land subject to a qualified conservation easement 
can also qualify for special use valuation under Code section 2032A.
  The bill also contains a number of safeguards to ensure that the 
benefits of the exclusion are not abused. These safeguards include the 
following:
  The easement must be perpetual and meet the requirements of Code 
Section 170(h), governing deductions for charitable contributions of 
easements;
  Easements retaining the right to develop the property for commercial 
recreational use would not be eligible, while other retained 
development rights would be taxed;
  Land excluded from the estate tax would receive a carryover, rather 
than stepped-up, basis for purposes of calculating gain on a subsequent 
sale;
  The land must have been owned by the decedent or a member of the 
decedent's family for at least 3 years immediately prior to the 
decedent's death; and,
  The easement must have been donated by the decedent or a member of 
the decedent's family. [[Page S8119]] 
  The bill would be effective for decedents dying after December 31, 
1995.
                                 ______

      By Mr. ROBB:
  S. 911. A bill to authorize the Secretary to issue a certificate of 
documentation with appropriate endorsement for employment in the 
coastwise trade of the United States for the vessel Sea Mistress; to 
the Committee on Commerce, Science, and Transportation.


                certification of documentation legislation
 Mr. ROBB. Mr. President, I am introducing a bill today to 
authorize the Coast Guard to issue the appropriate endorsement for the 
vessel Sea Mistress--U.S. official number 696806--to engage in the 
coastwise trade. This legislation is necessary to resolve a lapse in 
the Sea Mistress's chain of title.
  The Sea Mistress was built in the United States in Louisville, KY, by 
Aluminum Cruisers, Inc. It is a 41-foot, high-speed houseboat, which is 
currently being refurbished in the United States for the excursion 
tourboat trade. In 1984, the Internal Revenue Service, seized the 
vessel to secure an unpaid tax debt incurred by the original owner of 
the vessel. This seizure has left a gap in the chain of title of the 
vessel. The Coast Guard has informed the owner of Occoquan Tours that 
if the gap is left unresolved, a coastwise endorsement cannot be issued 
for the vessel, even though the owner is a U.S. citizen and the vessel 
was built in the United States and is being refurbished locally.
  The Congress passes a number of these technical bills every year. The 
Sea Mistress was part of a package of similar legislative waivers which 
passed the House of Representatives October of last year, but failed to 
be enacted prior to the end of the session. I'm introducing the bill 
today so that the Senate Commerce Committee may act upon it with the 
upcoming coastwise bill this session.
                                 ______

      By Mr. KOHL:
  S. 912. A bill to amend the Internal Revenue Code of 1986 with 
respect to the eligibility of veterans for mortgage revenue bond 
financing, and for other purposes; to the Committee on Finance.


               MORTGAGE REVENUE BOND FINANCING LEGISLATION

 Mr. KOHL. Mr. President, I introduce a modified version of 
legislation I introduced in February, S. 417, which will help Wisconsin 
and several other States, including Oregon, Texas, Alaska, and 
California, extend one of our most successful veterans programs to 
Persian Gulf war participants and others. This legislation will amend 
the eligibility requirements for mortgage revenue bond financing for 
State veterans housing programs.
  Wisconsin uses this tax-exempt bond authority to assist veterans in 
purchasing their first home. Under rules adopted by Congress in 1984, 
this program excluded from eligibility veterans who served after 1977. 
This bill would remove that restriction.
  Wisconsin and the other eligible States simply want to maintain a 
principle that we in the Senate have also strived to uphold--that 
veterans of the Persian Gulf war should not be treated less generously 
than those of past wars. This bill will make that possible.
                                 ______

      By Mr. HATCH (for himself, Mr. Inouye, Mr. McCain, and Mr. 
        Bennett):
  S. 913. A bill to amend section 17 of the Act of August 27, 1954 (25 
U.S.C. 677p), relating to the distribution and taxation of assets and 
earnings, to clarify that distributions of rents and royalties derived 
from assets held in continued trust by the Government, and paid to the 
mixed-blood members of the Ute Indian tribe, their Ute Indian heirs, or 
Ute Indian legatees, are not subject to Federal or State taxation at 
the time of distribution, and for other purposes; to the Committee on 
Finance.


                the mixed blood ute indian tax status act

  Mr. HATCH. Mr. President, I am joined today by my colleagues, 
Senators Inouye, McCain, and Bennett, to introduce a bill of great 
importance to the mixed-blood Utes, a native population of my home 
State of Utah.
  This limited legislation will restore the tax status of the mixed 
blood Ute Indians with regard to proceeds received from a trust created 
by the Federal Government as agreed in a settlement between the Federal 
Government and the Ute Tribe in 1954.
  Until recently, the Federal Government has respected the intent of 
Congress to exempt this income from Federal and State taxation. 
However, in a recent tenth circuit decision the court construed the 
intent of Congress as allowing the tax exemption on the settlement 
proceeds to lapse. This bill is necessary to clarify the legislative 
intent of Congress and reinstate the exemption.
  In my view, it was the intent of Congress in the 1954 settlement to 
exempt from Federal and State taxation the income derived from the 
assets held in continued trust by the Federal Government for, and paid 
to, the mixed blood Ute Indians. This has been the law for nearly four 
decades and should remain the law.
  Historically, with regard to all settlements between the Federal 
Government and numerous Indian nations, the proceeds from settlements 
have been exempt from Federal and State taxation. The mixed blood Ute 
Indians have been singled out and treated differently since the tenth 
circuit's decision. This bill clarifies the 1954 settlement and simply 
restores the tax status of the mixed blood Utes.
  I believe all of my Senate colleagues will recognize this legislation 
as both fair and necessary. I am pleased to have the support of the 
chairman and ranking member of the Senate Indian Affairs Committee as 
well as my Utah colleague, Senator Bennett. I urge all Senators to help 
us clarify this exemption.


                          ____________________