[Congressional Record Volume 141, Number 160 (Tuesday, October 17, 1995)]
[Senate]
[Pages S15227-S15246]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mrs. KASSEBAUM (for herself, Mr. Kennedy, and Mr. Frist):
  S. 1324. A bill to amend the Public Health Service Act to revise and 
extend the solid-organ procurement and transplantation programs, and 
the bone marrow donor program, and for other purposes; to the Committee 
on Labor and Human Resources.


  the organ and bone marrow transplant program reauthorization act of 
                                  1995

  Mrs. KASSEBAUM. Mr. President, on behalf of Senator Kennedy, Senator 
Frist, and myself, I introduce legislation which will further improve 
the quality and equity of solid organ and marrow transplantation.
  We can all be proud of the solid foundation that private initiatives, 
supported by Federal funding, have created. However, now that this 
infrastructure is in place, I believe that it is time for Congress to 
reexamine the Federal role in the oversight and the financing of solid 
organ and bone marrow transplantation.
  The partnership between the Government, the solid-organ transplant 
community, and the public has worked well. However, the recent 
experience with the heart transplant program in my own State of Kansas, 
or the public distrust voiced when Mickey Mantle received his liver 
transplant, reminds us that improvements need to be made.
  In 1994, more than 18,000 solid organ transplants were performed. 
Yet, more than 41,000 other Americans still await an organ for 
transplantation. This disparity between the supply and the demand for 
organs to transplant confirms that continued Federal oversight is 
necessary to provide the public with a sense of fairness and trust. 
Even though Federal oversight is still required, we must consider 
alternatives to fund the vital functions of the organ transplant 
network.
  The legislation we are introducing today stresses equity for all 
beneficiaries and proposes a balanced approach. Governmental oversight 
is maintained but clarified. The Organ Transplant Network remains 
responsible for the development of transplant policies, and the program 
remains grounded in the expertise of the transplant community.
  The importance of transplant candidates, patients, and their families 
as the real consumers of transplant services is reconfirmed, and this 
legislation increases their voice in the process. In addition, the 
phase-in of a new ``data management fee'' will guarantee that future 
transplant services will continue uninterrupted.
  Mr. President, the shortage of organs for transplantation is a 
problem which we, as a nation, have not yet solved. Recent medical 
studies have shown a continued reluctance by the American public to 
consent to organ donation when faced with the impending death of a 
family member. New and innovative approaches must be developed to 
increase the public's acceptance of organ donation. This legislation 
authorizes funding--obtained through a partnership among the 
government, the Nation's transplant centers, and the organ procurement 
organizations--to address the continued shortage of organs for 
transplantation. A single piece of legislation cannot be expected to 
correct the problem of insufficient organs for transplantation, but we 
believe that this proposal moves the transplant program in the right 
direction.

  Unrelated-donor bone marrow transplantation poses a different 
challenge. The National Bone Marrow Donor Registry was developed to 
facilitate and to maximize the number of bone marrow transplants for 
patients who do not have a matched relative. The success of this 
program to recruit potential marrow donors has been admirable, but as 
noted in the recent past by the General Accounting Office, the number 
of resulting transplants has been quite modest.
  Increasing the number of unrelated-donor bone marrow transplantations 
will likely require more than just expanding the potential marrow donor 
pool. Improvements in technology and scientific understanding of 
transplantation will need to be made. Because of these biologic 
limitations, I question continued Federal funding and the merits of a 
government-funded national bone marrow registry.
  Therefore, Mr. President, this legislation reauthorizes the National 
Bone Marrow Donor Registry, it reconfirms the goal to increase 
unrelated-donor bone marrow transplants, and it provides advocacy 
services for patients and donors. This legislation also requests the 
Institute of Medicine to evaluate the future role of a government-
funded marrow transplant program as a means to maximize the number of 
unrelated-donor bone marrow transplants.
  I recognize that the present Federal budget constraints and the 
proposed reevaluation of the Federal role in transplantation have 
caused some concern. However, I believe this situation provides both 
the transplant communities and the Congress with a unique opportunity. 
This legislation is a carefully crafted plan for the future. It strives 
for equity for all beneficiaries, an appropriate degree of Government 
oversight, an evaluation of the future governmental role, an 
appropriate level of fiscal responsibility, and the development of a 
system to respond to the present and future transplantation needs.
  As discussion of these issues develops, I would welcome any 
suggestions my colleagues or others may have for improving this 
legislation.
  Mr. President, I ask unanimous consent that the text of the bill and 
a summary be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1324

       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 ``Organ and Bone Marrow 
     Transplant Program Reauthorization Act of 1995''.
     
[[Page S 15228]]

                TITLE I--SOLID-ORGAN TRANSPLANT PROGRAM

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Solid-Organ Transplant 
     Program Reauthorization Act of 1995''.

     SEC. 102. ORGAN PROCUREMENT ORGANIZATIONS.

       (a) In General.--Subsection (a) of section 371 of the 
     Public Health Service Act (42 U.S.C. 273(a)) is amended to 
     read as follows:
       ``(a)(1) The Secretary may enter into cooperative 
     agreements and contracts with qualified organ procurement 
     organizations described in subsection (b) and other public or 
     nonprofit private entities for the purpose of increasing 
     organ donation through approaches such as--
       ``(A) the planning and conducting of programs to provide 
     information and education to the public on the need for organ 
     donations;
       ``(B) the training of individuals in requesting such 
     donations;
       ``(C) the provision of technical assistance to organ 
     procurement organizations and other entities that can 
     contribute to organ donation;
       ``(D) the performance of research and the performance of 
     demonstration programs by organ procurement organizations and 
     other entities that may increase organ donation;
       ``(E) the voluntary consolidation of organ procurement 
     organizations and tissue banks; or
       ``(F) increasing organ donation and access to 
     transplantation with respect to minority populations for 
     which there is a greater degree of organ shortages relative 
     to the general population.
       ``(2)(A) In entering into cooperative agreements and 
     contracts under subparagraphs (A) and (B) of paragraph (1), 
     the Secretary shall give priority to increasing donations and 
     improving consent rates for the purpose described in such 
     paragraph.
       ``(B) In entering into cooperative agreements and contracts 
     under paragraph (1)(C), the Secretary shall give priority to 
     carrying out the purpose described in such paragraph with 
     respect to increasing donations from both organ procurement 
     organizations and hospitals.''.
       (b) Qualified Organ Procurement Organizations.--Section 
     371(b) of such Act (42 U.S.C. 273(b)) is amended--
       (1) in paragraph (1)--
       (A) in the matter preceding subparagraph (A)--
       (i) by striking ``for which grants may be made under 
     subsection (a)'' and inserting ``described in this section''; 
     and
       (ii) by striking ``paragraph (2)'' and inserting 
     ``Paragraph (3)'';
       (B) by realigning the margin of subparagraph (E) so as to 
     align with the margin of subparagraph (D); and
       (C) in subparagraph (G)--
       (i) in the matter preceding clause (i), by striking 
     ``directors or an advisory board'' and inserting ``directors 
     (or an advisory board, in the case of a hospital-based organ 
     procurement organization established prior to September 1, 
     1993)''; and
       (ii) in clause (i)--

       (I) by striking ``composed of'' in the matter preceding 
     subclause (I) and inserting ``composed of a reasonable 
     balance of'';
       (II) by inserting before the comma in subclause (II) the 
     following: ``, including individuals who have received a 
     transplant of an organ (or transplant candidates), and 
     individuals who are part of the family of an individual who 
     has donated or received an organ or who is a transplant 
     candidate'';
       (III) by striking subclause (IV) and inserting the 
     following new subclause:

       ``(IV) physicians or other health care professionals with 
     knowledge and skill in the field of neurology, emergency 
     medicine, or trauma surgery''; and

       (IV) in subclause (V), by striking ``a member'' and all 
     that follows through the comma and insert the following: ``a 
     member who is a surgeon or physician who has privileges to 
     practice in such centers and who is actively and directly 
     involved in caring for transplant patients,'';

       (2) by striking paragraph (2);
       (3) by redesignating paragraph (3) as paragraph (2);
       (4) in paragraph (2) (as so redesignated)--
       (A) in subparagraph (A)--
       (i) by striking ``a substantial majority'' and inserting 
     ``all'';
       (ii) by striking ``donation,'' and inserting ``donation, 
     unless they have been previously granted by the Secretary a 
     waiver from paragraph (1)(A) or have waivers pending under 
     section 1138 of the Social Security Act''; and
       (iii) by adding at the end thereof the following: ``except 
     that the Secretary may waive the requirements of this 
     subparagraph upon the request of the organ procurement 
     organization if the Secretary determines that such an 
     agreement would not be helpful in promoting organ 
     donation,'';
       (B) by redesignating subparagraphs (B) through (K) as 
     subparagraphs (D) through (M), respectively,
       (C) by inserting after subparagraph (A) the following new 
     subparagraphs:
       ``(B) conduct and participate in systematic efforts, 
     including public education, to increase the number of 
     potential donors, including minority populations for which 
     there is a greater degree of organ shortage than that of the 
     general population,
       ``(C) be a member of and abide by the rules and 
     requirements of the Organ Procurement and Transplantation 
     Network (referred to in this part as the `Network') 
     established under section 372,'';
       (D) by inserting before the comma in subparagraph (G) (as 
     so redesignated) the following: ``, which system shall, at a 
     minimum, allocate each type of organ on the basis of--
       ``(i) a single list encompassing the entire service area;
       ``(ii) a list that encompasses at least an entire State;
       ``(iii) a list that encompasses an approved alternative 
     local unit (as defined in paragraph (3)) that is approved by 
     the Network and the Secretary, or
       ``(iv) a list that encompasses another allocation system 
     which has been approved by the Network and the Secretary,

     of individuals who have been medically referred to a 
     transplant center in the service area of the organization in 
     order to receive a transplant of the type of organ with 
     respect to which the list is maintained and had been placed 
     on an organ specific waiting list;'';
       (E) by inserting before the comma in subparagraph (I) (as 
     so redesignated) the following: ``and work with local 
     transplant centers to ensure that such centers are actively 
     involved with organ donation efforts''; and
       (F) by inserting after ``evaluate annually'' in 
     subparagraph (L) (as so redesignated) the following ``and 
     submit data to the Network contractor on'' the effectiveness 
     of the organization,''; and
       (5) by adding at the end thereof the following new 
     paragraph:
       ``(3)(A) As used in paragraph (2)(G), the term `alternative 
     local unit' means--
       ``(i) a unit composed of two or more organ procurement 
     organizations; or
       ``(ii) a subdivision of an organ procurement organization 
     that operates as a distinct procurement and distribution unit 
     as a result of special geographic, rural, or minority 
     population concerns but that is not composed of any subunit 
     of a metropolitan statistical area.
       ``(B) The Network shall make recommendations to the 
     Secretary concerning the approval or denial of alternative 
     local units. The Network shall assess whether the alternative 
     local units will better promote organ donation and the 
     equitable allocation of organs.
       ``(C) The Secretary shall approve or deny any alternative 
     local unit designation recommended by the Network. The 
     Secretary shall have 60 days, beginning on the date on which 
     the application is submitted to the Secretary, to approve or 
     deny the recommendations of the Network under subparagraph 
     (B) with respect to the application of the alternative local 
     unit.''.
       (c) Affect of Amendments.--The amendments made by 
     subsection (b) shall not be construed to affect the 
     provisions of section 1138(a) of the Social Security Act (42 
     U.S.C. 1320b-8(a)).
       (d) Effective Date.--The amendments made by subsection (b) 
     shall apply to organ procurement organizations and the Organ 
     Procurement and Transplantation Network beginning January 1, 
     1996.

     SEC. 103. ORGAN PROCUREMENT AND TRANSPLANTATION NETWORK.

       (a) Operation.--Subsection (a) of section 372 of the Public 
     Health Service Act (42 U.S.C. 274(a)) is amended to read as 
     follows:
       ``(a)(1) Congress finds that--
       ``(A) it is in the public interest to maintain and improve 
     a durable system for promoting and supporting a central 
     network to assist organ procurement organizations in the 
     nationwide distribution of organs among transplant patients;
       ``(B) it is desirable to continue the partnership between 
     public and private enterprise, by continuing to provide 
     Federal Government oversight and assistance for services 
     performed by the Network; and
       ``(C) the Federal Government should actively oversee 
     Network activities to ensure that the policies and procedures 
     of the Network for serving patient and donor families and 
     procuring and distributing organs are fair, efficient and in 
     compliance with all applicable legal rules and standards; 
     however, the initiative and primary responsibility for 
     establishing medical criteria and standards for organ 
     procurement and transplantation stills resides with the 
     Network.
       ``(2) The Secretary shall provide by contract for the 
     operation of the Network which shall meet the requirements of 
     subsection (b).
       ``(3) The Network shall be recognized as a private entity 
     that has an expertise in organ procurement and 
     transplantation with the primary purposes of encouraging 
     organ donation, maintaining a `wait list', and operating and 
     monitoring an equitable and effective system for allocating 
     organs to transplant recipients, and shall report to the 
     Secretary instances of continuing noncompliance with policies 
     (or when promulgated, rules) and requirements of the Network.
       ``(4) The Network may assess a fee (to be known as the 
     `patient registration fee'), to be collected by the 
     contractor for listing each potential transplant recipient on 
     its national organ matching system, in an amount which is 
     reasonable and customary and determined by the Network and 
     approved as such by the Secretary. The patient registration 
     fee shall be calculated so as to be sufficient to cover the 
     Network's reasonable costs of operation in accordance with 
     this section. The Secretary shall have 60 days, beginning on 
     the date on which the written application justifying the 
     proposed fee as reasonable is submitted to the Secretary, to 

[[Page S 15229]]
     provide the Network with a written determination and rationale for such 
     determination that the proposed increase is not reasonable 
     and customary and that the Secretary disapproves the 
     recommendation of the Network under this paragraph with 
     respect to the change in fee for listing each potential 
     transplant recipient.
       ``(5) Any increase in the patient registration fee shall be 
     limited to an increase that is reasonably required as a 
     result of--
       ``(A) increases in the level or cost of contract tasks and 
     other activities related to organ procurement and 
     transplantation; or
       ``(B) decreases in expected revenue from patient 
     registration fees available to the contractor.

     The patient registration fees shall not be increased more 
     than once during each year.
       ``(6) All fees collected by the Network contractor under 
     paragraph (4) shall be available to the Network without 
     fiscal year limitation. The contract with the Network 
     contractor shall provide that expenditures of such funds 
     (including patient registration fees collected by the 
     contractor and or contract funds) are subject to an annual 
     audit under the provisions of the Office of Management and 
     Budget Circular No. A-133 entitled `Audits of Institutions of 
     Higher Learning and Other Nonprofit Institutions' to be 
     performed by the Secretary or an authorized auditor at the 
     discretion of the Secretary. A report concerning the audit 
     and recommendations regarding expenditures shall be submitted 
     to the Network, the contractor, and the Secretary.
       ``(7) The Secretary may institute and collect a data 
     management fee from transplant hospitals and organ 
     procurement organizations. Such fees shall be directed to and 
     shall be sufficient to cover--
       ``(A) the costs of the operation and administration of the 
     Scientific Registry in accordance with the contract under 
     section 373; and
       ``(B) the costs of contracts and cooperative agreements to 
     support efforts to increase organ donation under section 371.

     Such data management fee shall be set annually by the Network 
     in an amount determined by the Network, in consultation with 
     the Secretary, and approved by the Secretary. Such data 
     management fee shall be calculated to be sufficient to cover 
     the reasonable costs of operation in accordance with section 
     373. Such data management fee shall be calculated based on 
     the number of transplants performed or facilitated by each 
     transplant hospital or center, or organ procurement 
     organization. The per transplant data management fee shall be 
     divided so that the patient specific transplant center will 
     pay 80 percent and the procuring organ procurement 
     organization will pay 20 percent of the per transplant data 
     management fee. Such fees shall be available to the Secretary 
     and the contractor operating the Scientific Registry without 
     fiscal year limitation. The expenditure (including fees or 
     contract funds) of such fees by the contractor shall be 
     subject to an annual independent audit (performed by the 
     Secretary or an authorized auditor at the discretion of the 
     Secretary) and reported along with recommendations regarding 
     such expenditures, to the Network, the contractor and the 
     Secretary.
       ``(8) The Secretary and the Comptroller General shall have 
     access to all data collected by the contractor or contractors 
     in carrying out its responsibilities under the contract under 
     this section and section 373.''.
       (b) Requirements.--Section 372(b) of the Public Health 
     Service Act (42 U.S.C. 274(b)) is amended--
       (1) in paragraph (1)(B)--
       (A) in clause (i)--
       (i) by striking ``(including organizations that have 
     received grants under section 371)''; and
       (ii) by striking ``; and'' at the end thereof and inserting 
     ``(including both individuals who have received a transplant 
     of an organ (or transplant candidates), individuals who are 
     part of the family of individuals who have donated or 
     received an organ, the number of whom shall make up a 
     reasonable portion of the total number of board members), and 
     the Division of Organ Transplantation of the Bureau of Health 
     Resources Development (the Health Resources and Services 
     Administration) shall be represented at all meetings except 
     for those pertaining to the Network contractor's internal 
     business;'';
       (B) in clause (ii)--
       (i) by inserting ``including a patient affairs committee 
     and a minority affairs committee'' after ``committees,''; and
       (ii) by striking the period; and
       (C) by adding at the end thereof the following new clauses:
       ``(iii) that shall include representation by a member of 
     the Division of Organ Transplantation of the Bureau of Health 
     Resources Development (the Health Resources and Services 
     Administration) as a representative at all meetings (except 
     for those portions of committee meetings pertaining to the 
     Network contractor's internal business) of all committees 
     (including the executive committee, finance committee, 
     nominating committee, and membership and professional 
     standards committee) under clause (ii);
       ``(iv) that may include a member from an organ procurement 
     organization on all committees under clause (ii); and
       ``(v) that may include physicians or other health care 
     professionals with knowledge and skill in the field of 
     neurology, emergency medicine, and trauma surgery on all 
     committees under clause (ii).''; and
       (2) in paragraph (2)--
       (A) in subparagraph (A)--
       (i) in the matter preceding clause (i), by striking ``or 
     through regional centers'' and inserting ``and at each Organ 
     Procurement Organization''; and
       (ii) by striking clause (i) and inserting the following new 
     clause:
       ``(i) with respect to each type of transplant, a national 
     list of individuals who have been medically referred to 
     receive a transplant of the type of organs with respect to 
     which the list is maintained (which list shall include the 
     names of all individuals included on lists in effect under 
     section 371(b)(2)(G)), and'';
       (B) in subparagraph (B), by inserting ``, including 
     requirements under section 371(b),'' after ``membership 
     criteria'';
       (C) by redesignating subparagraphs (E) through (L), as 
     subparagraphs (F) through (M), respectively;
       (D) by inserting after subparagraph (D), the following new 
     subparagraph:
       ``(E) assist and monitor organ procurement organizations in 
     the equitable distribution of organs among transplant 
     patients,'';
       (E) in subparagraph (K) (as so redesignated), by striking 
     ``and'' at the end thereof;
       (F) in subparagraph (L) (as so redesignated), by striking 
     the period and inserting ``, including making recommendations 
     to organ procurements organizations and the Secretary based 
     on data submitted to the Network under section 
     371(b)(2)(L),'';
       (G) in subparagraph (M) (as so redesignated)--
       (i) by striking ``annual'' and inserting ``biennial'';
       (ii) by striking ``the comparative costs and'';
       (iii) by striking the period and inserting the following: 
     ``, including survival information, waiting list information, 
     and information pertaining to the qualifications and 
     experience of transplant surgeons and physicians affiliated 
     with the specific Network programs,''; and
       (H) by adding at the end thereof the following new 
     subparagraphs:
       ``(N) submit to the Secretary for approval a written notice 
     containing a justification, as reasonable and customary, of 
     any proposed increase in the patient registration fees as 
     maintained under subparagraph (A)(i), such change to be 
     considered as so approved if the Secretary does not provide 
     written notification otherwise prior to the expiration of the 
     60-day period beginning on the date on which the notice of 
     proposed change is submitted to the Secretary,
       ``(O) make available to the Secretary such information, 
     books, and records regarding the Network as the Secretary may 
     require,
       ``(P) submit to the Secretary, in a manner prescribed by 
     the Secretary, an annual report concerning the scientific and 
     clinical status of organ donation and transplantation, and
       ``(Q) meet such other criteria regarding compliance with 
     this part as the Secretary may establish.''.
       (c) Procedures.--Section 372(c) of the Public Health 
     Service Act (42 U.S.C. 274(c)) is amended--
       (1) in paragraph (1), by striking ``and'' at the end 
     thereof;
       (2) in paragraph (2), by striking the period and inserting 
     a semicolon; and
       (3) by adding at the end thereof the following new 
     paragraphs:
       ``(3) working through and with, the Network contractor to 
     define priorities; and
       ``(4) working through, working with, and directing the 
     Network contractor to respond to new emerging issues and 
     problems.''.
       (d) Expansion of Access.--Section 372 of the Public Health 
     Service Act (42 U.S.C. 274) is amended by adding at the end 
     thereof the following new subsection:
       ``(d) Expansion of Access to Committees and Board of 
     Directors.--Not later than 1 year after the completion of the 
     Institute of Medicine study, the Network contractor, in 
     consultation with the Network and the Secretary, shall 
     implement the study recommendations relating to the access of 
     all interested constituencies and organizations to membership 
     on the Network Board of Directors and all of its committees. 
     Ensuring the reasonable mix of minorities shall be a priority 
     of the plan for implementation.''.
       (e) Regulations.--
       (1) In general.--Not later than the expiration of the 1-
     year period beginning on the date of enactment of this Act, 
     the Secretary of Health and Human Services shall issue a 
     final rule to establish the regulations for criteria under 
     part H of title III of the Public Health Service Act (42 
     U.S.C. 273 et seq.).
       (2) Consideration of certain bylaws and policies.--In 
     developing regulations under paragraph (1), the Secretary 
     shall consider the bylaws and policies of the Network.
       (3) Failure to issue regulations by date certain.--
       (A) In general.--If the Secretary fails to issue a final 
     rule under paragraph (1) prior to the expiration of the 
     period referred to in such paragraph, the notice of proposed 
     rule making issued by the Secretary on September 8, 1994, 
     (which shall be referred to as the ``proposed final rule'') 
     shall be deemed to be the final rule under paragraph (1), and 
     shall remain in effect until the Secretary issues a final 
     rule under such paragraph.
       (B) Conflict between rule and policy.--Except as otherwise 
     provided in this paragraph, and effective as described in 
     paragraph (1), if the Secretary determines that there is a 
     conflict between the proposed final rule and Network policy, 
     the Secretary shall 

[[Page S 15230]]
     ensure that the proposed final rule is enforced until the final rule is 
     issued.
       (C) New policies.--The Secretary shall require that new 
     policies developed after September 8, 1994, (the date of the 
     publication of the ``Notice of Proposed Rule Making'') shall 
     go through the policy development process as described in 
     section 121.3(a)(6) of such ``Notice of Proposed Rule 
     Making''.

     SEC. 104. TERMS AND CONDITIONS OF GRANTS AND CONTRACTS.

       Section 374 of the Public Health Service Act (42 U.S.C. 
     274b) is amended--
       (1) in subsection (b)(2), by striking ``two years'' and 
     inserting ``(three years)'';
       (2) in subsection (c)--
       (A) by redesignating paragraph (1) and (2) as paragraphs 
     (2) and (3), respectively; and
       (B) by inserting before paragraph (2) (as so redesignated) 
     the following new paragraph:
       ``(1) The Secretary shall annually withhold not to exceed 
     $250,000 or 10 percent of the amount of the data management 
     fees collected under section 372 (whichever is greater) to be 
     used to fund contracts as described in section 371.'';
       (3) by redesignating subsection (d) as subsection (e); and
       (4) by adding at the end thereof the following new 
     subsection:
       ``(d) No contract in excess of $25,000 may be made under 
     this part using funds withheld under subsection (c)(1) unless 
     an application for such contract has been submitted to the 
     Secretary, recommended by the Network and approved by the 
     Secretary. Such an application shall be in such form and be 
     submitted in such a manner as the Secretary shall 
     prescribe.''.

     SEC. 105. ADMINISTRATION.

       Section 375 of the Public Health Service Act (42 U.S.C. 
     274c) is amended--
       (1) in section 375 (42 U.S.C. 274c), by inserting before 
     the dash the following: ``oversee the Network, the Scientific 
     Registry and to'';
       (2) in paragraph (3)--
       (A) by inserting ``and oversight'' after ``assistance'';
       (B) by striking ``in the health care system''; and
       (C) by striking ``and'' at the end thereof;
       (3) in paragraph (4), by striking the period and inserting 
     ``; and''; and
       (4) by adding at the end thereof the following new 
     paragraph:
       ``(5) through contract, prepare a triennial organ 
     procurement organization specific data report (the initial 
     report to be completed not later than 18 months after the 
     date of enactment of this paragraph) that includes--
       ``(A) data concerning the effectiveness of each organ 
     procurement organization in acquiring potentially available 
     organs, particularly among minority populations;
       ``(B) data concerning the variation of procurement across 
     hospitals within the organ procurement organization region;
       ``(C) a plan to increase procurement, particularly among 
     minority populations for which there is a greater degree of 
     organ shortages relative to the general population; and
       ``(D) a plan to increase procurement at hospitals with low 
     rates of procurement.''.

     SEC. 106. STUDY AND REPORT.

       Section 377 of the Public Health Service Act (42 U.S.C. 
     174f) is amended to read as follows:

     ``SEC. 377. STUDY AND REPORT.

       ``(a) Evaluation by the Institute of Medicine.--
       ``(1) In general.--The Secretary shall enter into a 
     contract with a public or nonprofit private entity to conduct 
     a study and evaluation of--
       ``(A) the role of and the impact of the Federal Government 
     in the oversight and support of solid-organ transplantation, 
     the Network (which on the date of enactment of this section 
     carries out its functions by government contract) and the 
     solid organ transplantation scientific registry; and
       ``(B) the access of all interested constituencies and 
     organizations to membership on the Network board of directors 
     and all Network committees;
       ``(2) Institute of medicine.--The Secretary shall request 
     the Institute of Medicine of the National Academy of Sciences 
     to enter into the contract under paragraph (1) to conduct the 
     study and evaluation described in such paragraph. If the 
     Institute declines to conduct the study and evaluation under 
     such paragraph, the Secretary shall carry out such activities 
     through another public or nonprofit private entity.
       (b) Report.--Not later than 2 years after the date of 
     enactment of this section, the Institute of Medicine (or 
     other entity as the case may be) shall complete the study 
     required under subsection (a)(1) and prepare and submit to 
     the Committee on Labor and Human Resources of the Senate, a 
     report describing the findings made as a result of the 
     study.''.

     SEC. 107. GENERAL PROVISIONS.

       (a) Contracts.--Section 374 of the Public Health Service 
     Act (42 U.S.C. 274b) is amended--
       (1) in the section heading, by striking ``GRANTS AND'';
       (2) in subsection (a), by striking ``grant may be made 
     under this part or contract'' and inserting ``contract may 
     be'';
       (3) in subsection (b)--
       (A) in paragraph (1)--
       (i) by striking ``grant'' and inserting ``contract''; and
       (ii) by striking ``and may not exceed $100,000'';
       (B) by striking paragraph (2);
       (C) by redesignating paragraph (3) as paragraph (2); and
       (D) in paragraph (2) (as so redesignated)--
       (i) by striking ``Grants or contracts'' and inserting 
     ``Contracts''; and
       (ii) by striking ``371(a)(3)'' and inserting ``371(a)(2)'';
       (4) in subsection (c)--
       (A) by striking ``grant or'' each place that such appears; 
     and
       (B) in paragraph (1), by striking ``grants and''; and
       (5) in subsection (d)(2), by striking ``and for purposes of 
     section 373, such term includes bone marrow''.
       (b) Repeal.--Sections 376 and 378 of the Public Health 
     Service Act (42 U.S.C. 274d and 274g) are repealed.

     SEC. 108. AUTHORIZATION OF APPROPRIATION.

       Part H of title III of the Public Health Service Act (42 
     U.S.C. 273 et seq.) is amended by adding at the end thereof 
     the following new section:

     ``SEC. 378. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out 
     sections 371, 372, and 373, $1,950,000 for fiscal year 1997, 
     and $1,100,000 for fiscal year 1998, and to carry out section 
     371, $250,000 for each of the fiscal years 1999 through 
     2001.''.

     SEC. 109. EFFECTIVE DATES.

       The amendments made by this title shall become effective on 
     the date of enactment of this Act.
                  TITLE II--BONE MARROW DONOR PROGRAM

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Bone Marrow 
     Transplantation Program Reauthorization Act of 1995''.

     SEC. 202. REAUTHORIZATION.

       (a) Establishment of Donor Registry.--Section 379(a) of the 
     Public Health Service Act (42 U.S.C. 274k(a)) is amended--
       (1) by striking ``  `Registry'  '' and inserting ``  `Donor 
     Registry'  '';
       (2) by inserting after the end parenthasis the following: 
     ``the primary purpose of which shall be increasing unrelated 
     donor marrow transplants,''; and
       (2) by adding at the end thereof the following: ``With 
     respect to the board of directors--
       ``(1) each member of the board shall serve for a term of 2 
     years, and each such member may serve as many as three 
     consecutive 2-year terms;
       ``(2) a member of the board may continue to serve after the 
     expiration of the term of such member until a successor is 
     appointed;
       ``(3) to ensure the continuity of the board, not more than 
     one-third of the board shall be composed of members newly 
     appointed each year;
       ``(4) all appointed and elected positions within committees 
     established by the board shall be for 2-year periods;
       ``(5) the terms of approximately one-third of the members 
     of each such committee will be subject each year to 
     reappointment or replacement;
       ``(6) no individual shall serve more than three consecutive 
     2-year terms on any such committee; and
       ``(7) the board and committees shall be composed of a 
     reasonable balance of representatives of donor centers, 
     transplant centers, blood banks, marrow transplant 
     recipients, individuals who are family members of an 
     individual who has required, received, or is registered with 
     the Donor Registry to become a recipient of a transplant from 
     a biologically unrelated marrow donor, with nonvoting 
     representatives from the Naval Medical Research and 
     Development Command and the Division of Organ Transplantation 
     of the Bureau of Health Resources Development (of the Health 
     Resources and Services Administration).''.
       (b) Program for Unrelated Marrow Transplants.--Section 
     379(b) of such Act (42 U.S.C. 274k(b)) is amended--
       (1) in paragraph (4) to read as follows:
       ``(4) provide information to physicians, other health care 
     professionals, and the public regarding the availability of 
     unrelated marrow transplantation as a potential treatment 
     option;'';
       (2) in paragraph (5) to read as follows:
       ``(5) establish a program for the recruitment of new bone 
     marrow donors that includes--
       ``(A) the priority to increase minority potential marrow 
     donors for which there is a greater degree of marrow donor 
     shortage than that of the general population; and
       ``(B) the compilation and distribution of informational 
     materials to educate and update potential donors;'';
       (3) by redesignating paragraphs (6) and (7) as paragraphs 
     (8) and (9), respectively; and
       (4) by inserting after paragraph (5), the following new 
     paragraphs:
       ``(6) annually update the Donor Registry to account for 
     changes in potential donor status;
       ``(7) not later than 1 year after the date on which the 
     `Bone Marrow Program Inspection' (hereafter referred to in 
     this part as the `Inspection') that is being conducted by the 
     Office of the Inspector General on the date of enactment of 
     this paragraph is completed, in consultation with the 
     Secretary, and based on the findings and recommendations of 
     the Inspection, the marrow donor program shall develop, 
     evaluate, and implement a plan to streamline and make more 
     efficient the relationship between the Donor Registry and 
     donor centers;''.

[[Page S 15231]]

       (c) Information and Education Program.--Section 379 of such 
     Act (42 U.S.C. 274k) is amended--
       (1) by redesignating subsection (j) as subsection (k); and
       (2) by inserting after subsection (i), the following new 
     subsection:
       ``(j) Information and Education Program.--
       ``(1) In general.--The Secretary may enter into contracts 
     with, public or nonprofit private entities for the purpose of 
     increasing unrelated allogeneic marrow transplants, by 
     enabling such entities to--
       ``(A) plan and conduct programs to provide information and 
     education to the professional health care community on the 
     availability of unrelated allogeneic marrow transplants as a 
     potential treatment option;
       ``(B) plan and conduct programs to provide information and 
     education to the public on the need for donations of bone 
     marrow;
       ``(C) train individuals in requesting bone marrow 
     donations; and
       ``(D) recruit, test and enroll marrow donors with the 
     priority being minorities for which there is a greater degree 
     of marrow donor shortage than that of the general population.
       ``(2) Priorities.--In awarding contracts under paragraph 
     (1), the Secretary shall give priority to carrying out the 
     purposes described in such paragraph with respect to minority 
     populations.''.
       (d) Patient Advocacy and Case Management.--
       (1) In general.--Section 379 of such Act (42 U.S.C. 274k), 
     as amended by subsection (c), is further amended--
       (A) by redesignating subsection (k) as subsection (l); and
       (B) by inserting after subsection (j), the following new 
     subsection:
       ``(k) Patient Advocacy and Case Management.--
       ``(1) Establishment.--The Donor Registry shall establish 
     and maintain an office of patient advocacy and case 
     management that meets the requirements of this subsection.
       ``(2) Functions.--The office established under paragraph 
     (1) shall--
       ``(A) be headed by a director who shall serve as an 
     advocate on behalf of--
       ``(i) individuals who are registered with the Donor 
     Registry to search for a biologically unrelated bone marrow 
     donor;
       ``(ii) the physicians involved; and
       ``(iii) individuals who are included in the Donor Registry 
     as potential marrow donors.
       ``(B) establish and maintain a system for patient advocacy 
     that directly assists patients, their families, and their 
     physicians in a search for an unrelated donor;
       ``(C) provide individual case management services to 
     directly assist individuals and physicians referred to in 
     subparagraph (A), including--
       ``(i) individualized case assessment and tracking of 
     preliminary search through activation (including when the 
     search process is interrupted or discontinued);
       ``(ii) informing individuals and physicians on regular 
     intervals of progress made in searching for appropriate 
     donors; and
       ``(iii) identifying and resolving individual search 
     problems or concerns;
       ``(D) collect and analyze data concerning the number and 
     percentage of individuals proceeding from preliminary to 
     formal search, formal search to transplantation, the number 
     and percentage of patients unable to complete the search 
     process, and the comparative costs incurred by patients prior 
     to transplant;
       ``(E) survey patients to evaluate how well such patients 
     are being served and make recommendations for streamlining 
     the search process; and
       ``(F) provide individual case management services to 
     individual marrow donors.
       ``(3) Evaluation.--
       ``(A) In general.--The Secretary shall evaluate the system 
     established under paragraph (1) and make recommendations 
     concerning the success or failure of such system in improving 
     patient satisfaction, and any impact the system has had on 
     assisting individuals in proceeding to transplant.
       ``(B) Report.--Not later than April 1, 1996, the Secretary 
     shall prepare and make available a report concerning the 
     evaluation conducted under subparagraph (A), including the 
     recommendations developed under such subparagraph.''.
       (2) Donor registry functions.--Section 379(b)(2) of such 
     Act (42 U.S. C. 274k(b)(2)) is amended by striking 
     ``establish'' and all that follows through ``directly 
     assists'' and inserting ``integrate the activities of the 
     patient advocacy and case management office established under 
     subsection (k) with the remaining Donor Registry functions by 
     making available information on (A) the resources available 
     through the Donor Registry Program, (B) the comparative costs 
     incurred by patients prior to transplant, and (C) the marrow 
     donor registries that meet the standards described in 
     paragraphs (3) and (4) of subsection (c), to assist''.
       (e) Study and Reports.--Section 379A of such Act (42 U.S.C. 
     274l) is amended to read as follows:

     ``SEC. 379A. STUDIES, EVALUATIONS AND REPORTS.

       ``(a) Evaluation by the Institute of Medicine.--
       ``(1) In general.--The Secretary shall enter into a 
     contract with a public or nonprofit private entity to conduct 
     a study and evaluation of--
       ``(A) the role of a national bone marrow transplant program 
     supported by the Federal Government in facilitating the 
     maximum number of unrelated marrow donor transplants; and
       ``(B) other possible clinical or scientific uses of the 
     potential donor pool or accompanying information maintained 
     by the Donor Registry or the unrelated marrow donor 
     scientific registry.
       ``(2) Institute of medicine.--The Secretary shall request 
     the Institute of Medicine of the National Academy of Sciences 
     to enter into the contract under paragraph (1) to conduct the 
     study and evaluation described in such paragraph. If the 
     Institute declines to conduct the study and evaluation under 
     such paragraph, the Secretary shall carry out such activities 
     through another public or nonprofit private entity.
       ``(3) Report.--Not later than 2 years after the date of 
     enactment of this section, the Institute of Medicine (or 
     other entity as the case may be) shall complete the study 
     required under paragraph (1) and prepare and submit to the 
     Committee on Labor and Human Resources of the Senate, a 
     report describing the findings made as a result of the study.
       ``(b) Bone Marrow Consolidation.--
       ``(1) In general.--The Secretary shall conduct--
       ``(A) an evaluation of the feasibility of integrating or 
     consolidating all federally funded bone marrow 
     transplantation scientific registries, regardless of the type 
     of marrow reconstitution utilized; and
       ``(B) an evaluation of all federally funded bone marrow 
     transplantation research to be conducted under the direction 
     and administration of the peer review system of the National 
     Institutes of Health.
       ``(2) Report.--Not later than 1 year after the date of 
     enactment of this section, the Secretary shall prepare and 
     submit to the Committee on Labor and Human Resources of the 
     Senate a report concerning the evaluations conducted under 
     paragraph (1).
       ``(3) Definition.--As used in paragraph (1), the term 
     `marrow reconstitution' shall encompass all sources of 
     hematopoietic cells including marrow (autologous, related or 
     unrelated allogeneic, syngeneic), autologous marrow, 
     allogeneic marrow (biologically related or unrelated), 
     umbilical cord blood cells, peripheral blood progenitor 
     cells, or other approaches that maybe utilized.''.
       (f) Bone Marrow Transplantation Scientific Registry.--Part 
     I of title III of such Act (42 U.S.C. 274k et seq.) is 
     amended by adding at the end thereof the following new 
     section:

     ``SEC. 379B. BONE MARROW SCIENTIFIC REGISTRY.

       ``(a) Establishment.--The Secretary, acting through the 
     Donor Registry, shall establish and maintain a bone marrow 
     scientific registry of all recipients of biologic unrelated 
     allogeneic marrow donors.
       ``(b) Information.--The bone marrow transplantation 
     scientific registry established under subsection (a) shall 
     include information with respect to patients who have 
     received biologic unrelated allogeneic marrow transplant, 
     transplant procedures, pretransplant and transplant costs, 
     and other information the Secretary determines to be 
     necessary to conduct an ongoing evaluation of the scientific 
     and clinic status of unrelated allogeneic marrow 
     transplantation.
       ``(c) Report.--The Donor Registry shall submit to the 
     Secretary on an annual basis a report using data collected 
     and maintained by the bone marrow transplantation scientific 
     registry established under subsection (a) concerning patient 
     outcomes with respect to each transplant center and the 
     pretransplant comparative costs involved at such transplant 
     centers.''.
       (g) Authorization of Appropriations.--Part I of title III 
     of such Act (42 U.S.C. 274k et seq.) as amended by subsection 
     (f), is further amended by adding at the end thereof the 
     following new section:

     ``SEC. 379C. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out 
     section 379, $13,500,000 for fiscal year 1997, $12,150,000 
     for fiscal year 1998, and such sums as may be necessary for 
     fiscal year 1999.''.
                                                                    ____


 Solid Organ and Bone Marrow Transplant Program Reauthorization Act of 
                             1995--Summary


  Title I--Solid Organ Transplant Program Reauthorization Act of 1995

     I. Organ Procurement Organizations:
       (1) The Secretary may enter into cooperative agreements and 
     contracts with Organ Procurement Organizations (OPOs) and 
     other public or nonprofit entities for the purpose of 
     increasing organ donation.
       The importance of increased donation and the recruitment of 
     minority donors is reconfirmed.
       (2) The Board of Directors (or an advisory board) of an OPO 
     shall be diversified and composed of a ``reasonable balance 
     of'' individuals, including individuals who have received a 
     transplant (or a transplant candidate) and/or their family 
     members.
       (3) OPOs will be members of the Organ Transplant and 
     Procurement Network (Network) and will abide by the Network 
     rules.
       (4) Allocation systems at a minimum shall allocate each 
     type of solid organ on the basis of:
       A single list encompassing the entire service area, or, a 
     list encompassing at least an entire state, or, a list that 
     encompasses an approved alternative local unit, or, a list 

[[Page S 15232]]
     that encompasses another allocation system which is approved by the 
     Network and the Secretary.
       (5) The amendments included in this act do not interfere 
     with Section 1138 of the Social Security Act (Medicare 
     Technicals) pertaining to the relationships between hospitals 
     and OPOs.
     II. Transplant Network:
       (1) The Secretary shall provide by Contract for the 
     operation of the Network and the maintenance of a national 
     waiting list. Implementation of the Contract will be carried 
     out by the Network contractor.
       Continuation of the partnership between the government and 
     private entities is desirable.
       The federal government shall oversee Network activities.
       (2) The Network continues to be recognized as a private 
     entity that has an expertise in organ procurement and 
     transplantation.
       (3) The Network contractor may collect a fee for listing 
     each potential transplant recipient. This fee (known as the 
     ``patient registration fee'') is to cover the cost of the 
     Network's operation.
       The fee amount will be determined by the Network, the 
     Secretary is given 60 days after submission of a written 
     request to increase ``the fee,'' to disapprove the proposed 
     request.
       Patient registration fee increases must be ``reasonable and 
     customary'' and shall not occur more frequently than once per 
     year.
       Patient registration fees and or contract funds will be 
     subject to an annual audit (OMB circular no. A-133). An audit 
     report will be submitted to the Network, the contractor, and 
     the Secretary.
     III. The Scientific Registry:
       (1) The Secretary shall provide by Contract for the 
     operation of a Scientific Registry.
       (2) The Secretary may institute and collect a ``data 
     management fee'' from transplant centers and OPOs. These fees 
     shall be directed to cover the costs of the Scientific 
     Registry.
       The ``data management fee'' shall be set annually by the 
     Network and approved by the Secretary.
       The data management fee will be calculated on a per-
     transplant basis. The fee will be divided in a 80/20 split 
     between the responsible transplant center and OPO.
       Expenditure of the ``data management fee'' will be subject 
     to an annual audit. The audit report will be submitted to the 
     Network, the Scientific Registry contractor, and the 
     Secretary.
     IV. Transplant Network Governance:
       (1) Composition of the Network's Board of Directors and 
     Committees shall include ``a reasonable number'' of 
     individuals from the transplant community. This act confirms 
     the importance and need for representation of transplant 
     recipients (or candidates) and their family members.
       (2) The Health Resources and Services Administration shall 
     be represented on the Network's Board of Directors and all 
     Committees. The government representative will be excluded 
     from meetings in which the internal business of the Network 
     contractor is discussed.
       (3) The Network shall submit to the Secretary a biennial 
     report which contains center specified data including 
     survival, waiting list time, and qualifications of transplant 
     physicians and surgeons.
       (4) The Secretary's failure to issue within one year of 
     enactment, a ``final rule'' establishing Network regulations, 
     will initiate the following process:
       The proposed rule making issued on September 8, 1994, (the 
     ``proposed final rule'') shall be deemed the final rule.
       The Secretary will enforce the ``proposed final rule'' 
     until the final rule is issued.
       Instances of conflict between the ``proposed final rule'' 
     and existing or new Network policies shall be resolved 
     through the policy development as described in 121.3(a)(6) of 
     the ``Notice of Proposed Rule Making''.
     V. Administration:
       (1) The Secretary shall withhold annually, $250,000 or 10 
     percent of the collected ``data management fee'' (whichever 
     amount is larger), to be used to fund contracts to increase 
     organ donation.
       No contract in excess of $25,000 may be made, using the 
     above funds, unless an application is submitted to the 
     Secretary, recommended by the Network, and approved by the 
     Secretary.
       (2) The Secretary through contract shall prepare a 
     triennial OPO specific data report that includes an 
     assessment of the effectiveness of OPOs in acquiring 
     available organs.
       The first OPO specific report should be completed within 18 
     months of enactment.
     VI. Study:
       (1) The Secretary will request the Institute of Medicine 
     (IOM) to conduct a study and evaluation of:
       The role of and the impact of the federal government in the 
     oversight and support of solid organ transplantation, the 
     Network (which presently carries out its functions by 
     government contract) and the solid organ transplantation 
     scientific registry.
       The access of all interested constituencies to membership 
     on the Network's Board of Directors and all its committees.
       Recommendations from the second portion of the IOM study 
     are to be implemented within one year of study completion.
     VII. Authorization of Appropriation:
       (1) A five year authorization is requested.
       The authorization requests $1.95 million in 1997, $1.1 
     million for 1998 and $250,000 per year for 1999-2001.


  title ii--``bone marrow transplantation program reauthorization of 
                                 1995''

     I. Donor Registry:
       (1) The primary purpose of the ``Donor Registry'' is to 
     increase the number of unrelated marrow donor transplants.
       (2) The Board of Directors has been further clarified. A 
     term of office is two years, with a limit of three terms of 
     service.
       (3) Composition of the Board of Directors and the Program's 
     Committees will be composed of a ``reasonable balance'' of 
     constituents including transplant recipients and their 
     families.
       The Program's Board of Directors and Committees shall 
     include non-voting representation from the Health Resources 
     and Services Administration and the Naval Medical Research 
     and Development Command.
       (4) A priority to increase the number of minority 
     transplants and potential donors is mandated.
       (5) Informational materials to educate and update potential 
     donors shall be compiled and distributed.
       ``Donor Registry'' should be updated annually to account 
     for changes in donor status.
       (6) The Bone Marrow Program, in consultation with the 
     Secretary, using the recommendations of the ongoing Inspector 
     General study, ``Bone Marrow Program Inspection,'' shall 
     develop and implement within one year of study completion, a 
     plan to make more efficient the relationship between the 
     donor registry and the donor centers.
       (7) The Secretary may enter into contracts with public or 
     nonprofit private entities for the purpose of increasing 
     unrelated-donor marrow transplants.
       Programs to provide information to educate the health 
     community on the availability of unrelated marrow 
     transplants.
       Public information on the need for marrow donations.
       Train individuals in requesting marrow donations.
       Recruit, test, and enroll marrow donors with the primary 
     priority being minority populations.
     II. Patient Advocacy and Case Management:
       (1) The office of patient advocacy and case management 
     shall be established and maintained by the ``Donor 
     Registry.''
       The patient advocacy and case management office shall serve 
     as an advocate for patients searching for a donor, 
     physicians, and potential marrow donors.
       Comparative costs incurred by patients prior to marrow 
     transplantation shall be provided to constituents.
       (2) The Secretary shall evaluate the patient advocacy and 
     case management functions and make recommendations concerning 
     the success or failure of these efforts.
       A report shall be prepared no later than April 1, 1996, on 
     the effectiveness of the Office of Patient Advocacy and Case 
     Management.
     III. Studies and Evaluations:
       (1) The Secretary shall request the Institute of Medicine 
     to conduct a study that evaluates:
       What is the role of a government-supported ``National Bone 
     Marrow Transplant Program'' in facilitating the maximum 
     number of unrelated marrow donors transplants.
       Other possible clinical and scientific uses for the Donor 
     Registry's potential donor pool and or the unrelated marrow 
     donor scientific registry.
       This report is to be completed within two years of 
     enactment.
       (2) The Secretary shall evaluate the feasibility of 
     consolidating:
       All federally funded scientific bone marrow transplantation 
     registries (regardless of the type of marrow reconstitution).
       All federally funded bone marrow transplant research under 
     the administration and direction of the National Institutes 
     of Health.
     IV. Unrelated Marrow Transplant Scientific Registry:
       (1) The unrelated marrow transplant scientific registry is 
     to be established and maintained on all recipients of 
     biologically unrelated bone marrow transplants regardless of 
     the method of marrow reconstitution.
       The Donor Registry shall submit an annual report to the 
     Secretary on the state of unrelated donor marrow 
     transplantation, using information from the scientific 
     registry.
     V. Authorization of Appropriations:
       (1) A three-year authorization is requested.
       The authorization requests $13,500,000 for fiscal year 
     1997, $12,150,000 for fiscal year 1998, and such sums as 
     necessary for fiscal year 1999.
                                 ______

      By Mr. McCAIN (for himself and Mr. Kyl):
  S. 1325. A bill to amend title XI of the Social Security Act to 
provide an incentive for the reporting of inaccurate Medicare claims 
for payment, and for other purposes; to the Committee on Finance.


                     the medicare whistleblower act

 Mr. McCAIN. Mr. President, I am introducing legislation today 
with Senator Kyl that will significantly reduce fraud and abuse by 
providers in the Medical Program. The Medicare Whistleblower Act of 
1995 will efficiently and effectively create an army of private 
inspectors general intent upon wiping out Medicare provider fraud.

[[Page S 15233]]

  At Medicare town meetings throughout Arizona, we have heard over and 
over from senior citizens that the Medicare Program is rampant with 
negligent and fraudulent billings. They have told me, based on their 
personal experiences, that their Medicare bills frequently include 
services that they have not received, double billings for the same 
service, or charges that are disproportionate to the value of services 
received. Often, they have no idea what Medicare is being billed for on 
their behalf, and they are not able to obtain explanations from 
providers.
  These perceptions of Medicare beneficiaries are confirmed by more 
systematic analyses. The General Accounting Office has estimated that 
fraud and abuse in our Nation's health care system costs taxpayers as 
much as $100 billion each year. Medicare fraud alone costs about $17 
billion per year, which is 10 percent of the program's costs. A report 
by the Republican staff of the Senate Committee on Aging has documented 
a broad array of fraudulent activities, including false claims for 
services that were supposed to have been rendered after the 
beneficiaries had died.
  The Medicare Program has many problems. A fundamental problem, and 
the source of many other problems, is that too few people are 
adequately concerned about its costs because the Government is paying 
most of the bills. One constituent informed me of a situation in which 
his provider double-billed for the same service and told him not to 
worry about it because ``Medicare is paying.'' This is an outrage and 
must be stopped. When Medicare overpays, we all overpay, and costs to 
beneficiaries and other taxpayers spiral.
  The Medicare Whistleblower Act addresses this fundamental problem of 
the Medicare Program. It gives beneficiaries an added incentive to 
carefully scrutinize their bills and to actively pursue corrections 
when they believe that there has been inappropriate billing of 
Medicare. In particular, beneficiaries would be financially rewarded if 
they uncover negligence or fraud to the benefit of us all. Although 
such provider fraud is not the entire problem, and there is other 
legislation that I support which also addresses beneficiary fraud, 
studies clearly indicate that provider fraud is most prevalent and the 
greatest concern.
  Under this bill, beneficiaries would have a right to receive in 
writing from their providers, within 30 days of when their request is 
received, an itemized bill for Medicare services provided to them. The 
beneficiary would then have 90 days to raise specific allegations of 
inappropriate billings to Medicare. The Medicare intermediaries and 
carriers would then have to make one of the following determinations: 
That the bill was: First, accurate; second, innocently inaccurate, for 
example, misinterpretation; third, negligent; or fourth, fraudulent. 
All overpayments resulting from inaccurate bills will be reimbursed to 
the Medicare Program.

  If the Secretary of HHS confirms that the billing was either 
negligent or fraudulent, the beneficiary would receive a reward of 1 
percent of the overpayment up to $10,000. Because these rewards would 
be paid directly out of the overpayments, they would not increase costs 
to the Federal Government. In the case of fraud, the rewards would be 
paid directly by the fraudulent provider as a penalty, and would 
therefore not even reduce the amount of the overpayment reimbursed to 
the Federal Government. The Secretary would be required to establish 
appropriate procedures to ensure that the incentive system is not 
abused.
  Some will argue that many seniors and other beneficiaries do not need 
personal rewards for fighting fraud, and in any event, this is a matter 
of national duty. While I agree with this contention, I also recognize 
that these individuals would not be able to identify and report fraud 
without having access to the itemized bills that this legislation 
provides. Moreover, I see nothing wrong with giving beneficiaries an 
added financial incentive. After all, we pay Federal employees for 
ideas that save the taxpayers money, and we pay private citizens for 
identifying fraud by defense contractors.
  Mr. President, we must put an end to rampant Medicare fraud and 
abuse. This bill would contribute significantly to this goal. I believe 
that there is no more effective approach to detecting and fighting 
fraud than giving individuals a personal financial interest in doing 
so. Just wait and see what will happen when we empower over 36 million 
Medicare beneficiaries to ensure that their program is no longer looted 
and abused. I request unanimous consent that this bill and letters of 
support from the Committee to Preserve Social Security and Medicare and 
the Seniors Coalition be included in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1325

       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 ``Medicare Whistleblower Act 
     of 1995''.

     SEC. 2. PURPOSE.

       The purpose of this Act is to--
       (1) reduce and eliminate fraud and abuse under the medicare 
     program;
       (2) reduce negligent and fraudulent medicare billings by 
     providers;
       (3) provide medicare beneficiaries with incentives to 
     report inappropriate billing practices; and
       (4) provide savings to the medicare trust funds by 
     increasing the recovery of medicare overpayments.

     SEC. 3. REQUEST FOR ITEMIZED BILL FOR MEDICARE ITEMS AND 
                   SERVICES.

       (a) In General.--Section 1128A of the Social Security Act 
     (42 U.S.C. 1320a-7a) is amended by adding at the end the 
     following new subsection:
       ``(m) Written Request for Itemized Bill.--
       ``(1) In general.--A beneficiary may submit a written 
     request for an itemized bill for medical or other items or 
     services provided to such beneficiary by any person 
     (including an organization, agency, or other entity) that 
     receives payment under title XVIII for providing such items 
     or services to such beneficiary.
       ``(2) 30-day period to receive bill.--
       ``(A) In general.--Not later than 30 days after the date on 
     which a request under paragraph (1) has been received, a 
     person described in such paragraph shall furnish an itemized 
     bill describing each medical or other item or service 
     provided to the beneficiary requesting the itemized bill.
       ``(B) Penalty.--Whoever knowingly fails to furnish an 
     itemized bill in accordance with subparagraph (A) shall be 
     subject to a civil fine of not more than $100 for each such 
     failure.
       ``(3) Review of itemized bill.--
       ``(A) In general.--Not later than 90 days after the receipt 
     of an itemized bill furnished under paragraph (1), a 
     beneficiary may submit a written request for a review of the 
     itemized bill to the appropriate fiscal intermediary or 
     carrier with a contract under section 1816 or 1842.
       ``(B) Specific allegations.--A request for a review of the 
     itemized bill shall identify--
       ``(i) specific medical or other items or services that the 
     beneficiary believes were not provided as claimed, or
       ``(ii) any other billing irregularity (including duplicate 
     billing).
       ``(4) Findings of fiscal intermediary or carrier.--Each 
     fiscal intermediary or carrier with a contract under section 
     1816 or 1842 shall, with respect to each claim submitted to 
     the fiscal intermediary or carrier under paragraph (3), make 
     one of the following determinations:
       ``(A) The itemized bill accurately reflects medical or 
     other items or services provided to the beneficiary.
       ``(B) The itemized bill does not accurately reflect medical 
     or other items or services provided to the beneficiary or 
     contains a billing irregularity but the inaccuracy or 
     irregularity is inadvertent or is the result of a 
     misinterpretation of law.
       ``(C) The itemized bill negligently describes medical or 
     other items or services not provided to the beneficiary or 
     contains a negligent billing irregularity.
       ``(D) The itemized bill fraudulently describes medical or 
     other items or services not provided to the beneficiary or 
     contains a fraudulent billing irregularity.
       ``(5) Review of findings of fiscal intermediary or 
     carrier.--
       ``(A) In general.--If a fiscal intermediary or carrier 
     makes a finding described in subparagraph (B), (C), or (D) of 
     paragraph (4), the fiscal intermediary or carrier shall 
     submit to the Secretary a report containing such findings and 
     the basis for such findings.
       ``(B) Determination by secretary.--The Secretary shall 
     determine whether the findings of the fiscal intermediary or 
     carrier submitted under subparagraph (A) are correct.
       ``(6) Recovery of amounts.--The Secretary shall require 
     fiscal intermediaries and carriers to take all appropriate 
     measures to recover amounts inappropriately paid under title 
     XVIII with respect to a bill for which the Secretary makes a 
     determination of correctness under paragraph (5)(B).
       ``(7) Antifraud incentive payments.--

[[Page S 15234]]

       ``(A) In general.--If the Secretary makes a determination 
     of correctness under paragraph (5)(B) with respect to a 
     finding described in subparagraph (C) or (D) of paragraph 
     (4), the Secretary shall make an antifraud incentive payment 
     (in an amount determined under subparagraph (B)) to the 
     beneficiary who submitted the request for the itemized bill 
     under paragraph (1) that resulted in such findings.
       ``(B) Antifraud incentive payment determined.--
       ``(i) In general.--The amount of the antifraud incentive 
     payment determined under this subparagraph is equal to the 
     lesser of--

       ``(I) 1 percent of the amount that the bill negligently or 
     fraudulently charged for medical or other items or services; 
     or
       ``(II) $10,000.

       ``(ii) Limitation of amount.--The amount determined under 
     this subparagraph may not exceed--

       ``(I) in the case of a negligent bill, the total amounts 
     recovered with respect to the bill in accordance with 
     paragraph (6); or
       ``(II) in the case of a fraudulent bill, the sum of the 
     amounts assessed and collected with respect to the bill under 
     paragraph (8).

       ``(8) Penalty.--If the Secretary makes a determination of 
     correctness with respect to a finding described in paragraph 
     (4)(D) (relating to fraudulent billing), the provider or 
     other person responsible for providing the beneficiary with 
     the itemized bill that is the subject of such findings, shall 
     be subject, in addition to any other penalties that may be 
     prescribed by law, to a civil money penalty equal to the 
     lesser of--
       ``(A) 1 percent of the amount that the bill fraudulently 
     charged for medical or other items or services; or
       ``(B) $10,000.
       ``(9) Prevention of abuse by beneficiaries.--The Secretary 
     shall--
       ``(A) address abuses of the incentive system established 
     under this subsection; and
       ``(B) establish appropriate procedures to prevent such 
     abuses.
       ``(10) Requirement that beneficiary discover negligent or 
     fraudulent bill to receive incentive payment.--No incentive 
     payment shall be made under paragraph (7) to a beneficiary if 
     the Secretary or the appropriate fiscal intermediary or 
     carrier identified the bill that was the subject of the 
     beneficiary's request for review under this subsection as 
     being negligent or fraudulent prior to such request.''.
       (b) Payment of Antifraud Incentive to Medicare 
     Beneficiary.--Section 1128A(f) of the Social Security Act (42 
     U.S.C. 1320a-7a(f)) is amended--
       (1) in paragraph (3), by striking ``(3)'' and inserting 
     ``(4)''; and
       (2) by inserting after paragraph (2) the following:
       ``(3) Any penalty recovered under subsection (m)(8) shall 
     be paid as an antifraud incentive payment to the beneficiary 
     who submitted the request for the itemized bill under 
     subsection (m)(1) that resulted in the imposition of the 
     penalty.''.
       (c) Conforming Amendment.--Subsections (c) and (d) of 
     section 1128A of the Social Security Act (42 U.S.C. 1320a-7a) 
     are each amended by striking ``(a) or (b)'' each place it 
     appears and inserting ``(a), (b), or (m)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to medical or other items or 
     services provided on or after January 1, 1996.
                                                                    ____

                                    National Committee to Preserve


                                 Social Security and Medicare,

                                 Washington, DC, October 16, 1995.
     Hon. John McCain,
     U.S. Senate, Washington, DC.
       Dear Senator McCain: On behalf of the nearly six million 
     members and supporters of the National Committee to Preserve 
     Social Security and Medicare, I offer our endorsement of the 
     Medicare Whistleblower Act of 1995, legislation to strengthen 
     procedures for identifying fraud and waste in the Medicare 
     system.
       A major effort to prevent fraud and abuse is essential and 
     appropriate--particularly at a time when Congress is 
     considering ways to reduce federal health care costs. It is 
     essential that we enlist the cooperation of the public, 
     beneficiaries, providers and carriers to curb fraud and waste 
     in the Medicare program and ensure that Medicare funds go 
     toward patient care. As you know, major and increasingly 
     complex patterns of fraud and abuse have infiltrated many 
     health sectors including ambulance and taxi services, 
     clinical laboratories, home health and durable medical 
     equipment providers.
       Your legislation will strengthen the role of beneficiaries 
     in detecting and reporting fraud and waste. Of particular 
     importance are the provisions mandating that beneficiaries be 
     provided, upon request, copies of itemized bills submitted on 
     their behalf. Beneficiaries must have accurate information 
     about bills submitted on their behalf in order to 
     meaningfully participate in this program. It is also 
     important for the Secretary to establish standards to prevent 
     abuse or over-use of the reporting system.
       Seniors thank you for your help in combating this growing 
     problem.
           Sincerely,
                                                 Martha A McSteen,
     President.
                                                                    ____



                                        The Seniors Coalition,

                                                 October 12, 1995.
     Hon. John McCain,
     U.S. Senate, Washington, DC.
       Dear Senator McCain: On behalf of the two million members 
     and supporters of The Seniors Coalition, I salute your 
     efforts to reduce the fraud and abuse which have plagued the 
     Medicare system. We also believe that seniors themselves are 
     excellent ``Inspectors General,'' and, when empowered to do 
     so will be a most effective whistleblower force.
       The Seniors Coalition stands ready to work with you and 
     every other member of Congress in taking action to put an end 
     to rampant Medicare fraud and abuse.
           Sincerely,
                                                      Jake Hansen,
                    Vice President for Government Affairs.
                                 ______

      By Mrs. FEINSTEIN:
  S. 1326. A bill respecting the relationship between workers' 
compensation benefits and the benefits available under the Migrant and 
Seasonal Agricultural Worker Protection Act; to the Committee on Labor 
and Human Resources.


 the migrant and seasonal agricultural worker protection act amendment 
                              act of 1995

 Mrs. FEINSTEIN. Mr. President, I introduce legislation that 
would overturn a 1990 U.S. Supreme Court decision in Adams Fruit Co. 
versus Barrett and restore workers' compensation as the exclusive 
remedy for loss under the Migrant and Seasonal Agricultural Worker 
Protection Act where a State workers' compensation law is applicable 
and coverage is provided.
  This legislation embodies an agreement worked out by the National 
Council of Agricultural Employers and the Farmworkers Justice Fund and 
other farm worker advocacy groups. In the House this compromise will be 
offered as a substitute amendment to H.R. 1715, sponsored by 
Congressmen Goodling, Fazio and others.
  By way of background, in 1985, 19 migrant farmworkers employed by the 
Adams Fruit Co. suffered injuries in an accident while they traveled to 
work in an Adams Fruit van. The company was found liable and the 
injured farmworkers were awarded damages to the fullest extent under 
Florida's workers' compensation system. In addition, 10 of the workers 
filed suit against Adams Fruit for motor safety violations under the 
Migrant and Seasonal Agricultural Worker Protection Act.
  In the Adams Fruit decision, the U.S. Supreme Court held that the 
injured farmworkers could bring an action for damages under the Migrant 
and Seasonal Agricultural Worker Protection Act even though they were 
covered under State workers' compensation for the same injuries. In so 
ruling, the court disregarded one of the basic concepts of workers' 
compensation, the assurance of a prompt remedy in exchange for limited 
liability on the part of the employer. As a result, agricultural 
employers who pay the cost of workers' compensation for farmworkers are 
not receiving the protection from lawsuits that all other employers 
providing workers' compensation receive.
  The legislation I am introducing today would reverse the effects of 
the Adams Fruit decision and restore the exclusivity of workers' 
compensation. Specifically, the bill:
  Amends the Migrant and Seasonal Agricultural Worker Protection Act to 
provide that where workers' compensation coverage is provided under a 
State workers' compensation law for a migrant or seasonal agricultural 
worker, workers' compensation will be the farmworker's exclusive remedy 
and the employer's sole liability under the act for bodily injury or 
death;
  Provides for increased statutory damages under the Migrant and 
Seasonal Agricultural Worker Protection Act in cases where actual 
damages are precluded because the worker's injury is covered under a 
State workers' compensation law and the court finds the defendant's 
actions meet certain criteria set forth in the legislation, such as the 
defendant knowingly permitting a driver to drive farmworkers while 
under the influence of alcohol;
  Provides for tolling of the statute of limitations on actions brought 
under the Migrant and Seasonal Agricultural Worker Protection Act 
during the period of time a claim under a State workers' compensation 
law is pending;
  Requires disclosure of information regarding workers' compensation 
coverage to migrant farmworkers and upon request to seasonal 
farmworkers, 

[[Page S 15235]]
helping ensure that farmworkers have adequate information to file 
timely claims for workers' compensation; and
  Allows the Secretary of Labor to determine the appropriate level of 
liability insurance required by employers engaged in transporting 
farmworkers, helping increase the ability of persons to obtain 
insurance.
  Mr. President, the appropriate relationship between workers' 
compensation benefits and benefits available under the Migrant and 
Seasonal Agricultural Worker Protection Act has been debated at great 
length since the Adams Fruit decision. Many have tried to reconcile the 
legitimate interests of both agricultural employers and farmworkers in 
this issue. In the 102d Congress I sponsored legislation, and I worked 
very hard, meeting with representatives of agriculture from around the 
Nation, with representatives of farmworkers, with Congressman Fazio, 
with Congressman Berman and others, in an effort to achieve consensus. 
I am pleased to say that there is now agreement. I hope the Senate will 
be able to move quickly to approve this agreement and pass this 
legislation.
                                 ______

      By Mr. McCAIN (for himself and Mr. Kyl):
  S. 1327. A bill to provide for the transfer of certain lands to the 
Salt River Pima-Maricopa Indian Community and the city of Scottsdale, 
AZ, and for other purposes; to the Committee on Banking, Housing, and 
Urban Affairs.


         the saddleback mountain-arizona settlement act of 1995

 Mr. McCAIN. Mr. President, I am pleased to join with my 
colleague, Senator Kyl, in introducing legislation to approve an 
agreement to settle a longstanding dispute over 701 acres of unique and 
valuable land within the city of Scottsdale, AZ, currently held by the 
Resolution Trust Corporation [RTC]. The agreement, which was negotiated 
by representatives of the Salt River Pima-Maricopa Indian Community, 
the city of Scottsdale, and the RTC, provides for the RTC to sell part 
of the property to the community and the remainder to the city.
  The property is located in the eastern-most part of Scottsdale, abuts 
1.7 miles of the northern boundary of the community's reservation, and 
is undeveloped. Its most distinctive feature is Saddleback Mountain, a 
striking landmark that rises abruptly from the desert floor to a height 
of some 900 feet. Due to its location, high conservation value and 
other special features, the property's use and disposition are of major 
importance both to the community and the city.
  A dispute arose after the RTC, in its capacity as receiver for the 
Sun State Savings & Loan Association, acquired the Saddleback property 
in 1989 and subsequently noticed it for sale. The community submitted 
the highest cash bid for the property, conditioned upon being allowed 
to develop the flat portion of the property. The city, concerned about 
the direction that the development might follow, sued the RTC to 
acquire the property by eminent domain. The RTC then rejected all 
auction sale bids and determined to transfer the property to Scottsdale 
through the eminent domain litigation. The community thereupon sued the 
city and the RTC, seeking damages.
  Rather than pursue the litigation, the city, the community, and the 
RTC sought to resolve their dispute through negotiation. The result of 
their efforts is a settlement agreement that will allow all parties to 
realize their respective goals for the Saddleback property. Under the 
agreement, the RTC will sell the property to Scottsdale and the 
community for a total of $6.5 million. The city will pay $636,000 to 
acquire approximately 125 acres, located north and south of Shea 
Boulevard, for preservation and future road expansion. The community 
will pay $5,864,000 to acquire 576 acres adjoining their reservation. 
The two lawsuits, which are pending in U.S. District Court in Phoenix, 
will be dismissed.
  The agreement further provides that 365 acres of the property to be 
acquired by the community, including Saddleback Mountain, will be 
forever preserved in its natural State for use only as a public park 
and recreation area. Except for a limited number of sites that are of 
particular historical and cultural significance to the community, the 
public will have free access to this area. Together with the 
preservation property to be acquired by the city, it will be jointly 
managed by the city and the community. The remaining 211 acres to be 
acquired by the community will be subject to a detailed development 
agreement with the city, as well as the limitations and restrictions of 
current community zoning.
  Mr. President, the bill that Senator Kyl and I are introducing today 
has two primary objectives. First, it will approve and ratify the 
settlement agreement and ensure that its terms will be fully 
enforceable. Second, it provides that the property purchased by the 
community will be held in trust by the United States and become part of 
its reservation. Enactment of this legislation is a necessary step for 
the settlement's provisions to become effective.
  Achievement of the Saddleback settlement agreement demonstrates once 
again the value and benefit of seeking to settle disputes through 
negotiation rather than litigation. The Salt River Pima-Maricopa Indian 
Community, its president and council, and the mayor and council of the 
city of Scottsdale, along with their representatives and those of the 
Resolution Trust Corporation who cooperated to make a settlement 
possible, deserve great credit for their leadership and hard work to 
resolve their differences amicably.
  I believe the legislation to approve the Saddleback settlement 
agreement is noncontroversial and clearly in the public interest, and I 
note with satisfaction that no expenditure of funds from the U.S. 
Treasury will be necessary for its implementation. Accordingly, I am 
hopeful that the Congress will consider and approve this legislation in 
an expeditious manner.
  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. 1327

       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 ``Saddleback Mountain-Arizona 
     Settlement Act of 1995''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) in its capacity as a receiver for the Sun State Savings 
     and Loan Association, F.S.A., the Resolution Trust 
     Corporation holds a tract of land consisting of approximately 
     701 acres within the city of Scottsdale, Arizona (referred to 
     in this Act as the ``Saddleback Property'');
       (2) the Saddleback Property abuts the north boundary of the 
     Salt River Pima-Maricopa Indian Reservation;
       (3) because the Saddleback Property includes Saddleback 
     Mountain and scenic hilly terrain along the Shea Boulevard 
     Corridor in Scottsdale, Arizona, a major portion of the 
     Saddleback Property has significant conservation value;
       (4) pursuant to section 10(b) of the Coastal Barrier 
     Improvement Act of 1990 (12 U.S.C. 1441a-3(b)), the 
     Resolution Trust Corporation identified the conservation 
     value of the Saddleback Property and provided a description 
     of the Saddleback Property in a notice of the availability of 
     the property for sale;
       (5) the use and disposition of the Saddleback Property are 
     critical to the interests of both the City and the Salt River 
     Pima-Maricopa Indian Community;
       (6) during the course of dealings among the Community, the 
     City, and the Resolution Trust Corporation, disputes arose 
     regarding the ownership, conservation, use, and ultimate 
     development of the Saddleback Property;
       (7) the Community, the City, and the Resolution Trust 
     Corporation resolved their differences concerning the 
     Saddleback Property by entering into an agreement that 
     provides for the sale, at an aggregate price equal to the 
     highest cash bid that has been tendered to the Resolution 
     Trust Corporation, of--
       (A) a portion of the Saddleback Property to the City; and
       (B) the remaining portion of the Saddleback Property to the 
     Community; and
       (8) the Settlement Agreement provides--
       (A) for a suitable level of conservation for the areas 
     referred to in paragraph (3); and
       (B) that the portion of the Saddleback Property referred to 
     in paragraph (7)(B) will become part of the Reservation.
       (b) Purposes.--The purposes of this Act are--
       (1) to approve and confirm the Settlement, Release, and 
     Property Conveyance Agreement executed by the City, the 
     Community, and the Resolution Trust Corporation; and
       (2) to ensure that the Settlement Agreement (including the 
     Development Agreement, the Use Agreement, and all other 
     associated ancillary agreements and exhibits)--
       (A) is carried out; and

[[Page S 15236]]

       (B) is fully enforceable in accordance with its terms, 
     including judicial remedies and binding arbitration 
     provisions.

     SEC. 3. DEFINITIONS.

       For the purposes of this Act, the following definitions 
     shall apply:
       (1) City.--The term ``City'' means the city of Scottsdale, 
     Arizona, which is a municipal corporation in the State of 
     Arizona.
       (2) Community.--The term ``Community'' means the Salt River 
     Pima-Maricopa Indian Community, which is a federally 
     recognized Indian tribe.
       (3) Dedication property.--The term ``Dedication Property'' 
     means a portion of the Saddleback Property, consisting of 
     approximately 27 acres of such property, that the City will 
     acquire in accordance with the Settlement Agreement.
       (4) Development agreement.--The term ``Development 
     Agreement'' means the agreement between the City and the 
     Community, executed on September 11, 1995, that sets forth 
     conditions and restrictions that--
       (A) are supplemental to the Settlement, Release and 
     Property Conveyance Agreement referred to in paragraph 
     (11)(A); and
       (B) apply to the future use and development of the 
     Development Property.
       (5) Development property.--The term ``Development 
     Property'' means a portion of the Saddleback Property, 
     consisting of approximately 211 acres, that the Community 
     will acquire in accordance with the Settlement Agreement.
       (6) Mountain property.--The term ``Mountain Property'' 
     means a portion of the Saddleback Property, consisting of 
     approximately 365 acres, that the Community will acquire in 
     accordance with the Settlement Agreement.
       (7) Preservation property.--The term ``Preservation 
     Property'' means a portion of the Saddleback Property, 
     consisting of approximately 98 acres, that the City will 
     acquire in accordance with the Settlement Agreement.
       (8) Reservation.--The term ``Reservation'' means the Salt 
     River Pima-Maricopa Indian Reservation.
       (9) Saddleback property.--The term ``Saddleback Property'' 
     means a tract of land that--
       (A) consists of approximately 701 acres within the city of 
     Scottsdale, Arizona; and
       (B) includes the Dedication Property, the Development 
     Property, the Mountain Property, and the Preservation 
     Property.
       (10) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (11) Settlement agreement.--The term ``Settlement 
     Agreement''--
       (A) means the Settlement, Release and Property Conveyance 
     Agreement executed on September 11, 1995, by the Community, 
     the City, and the Resolution Trust Corporation (in its 
     capacity as the Receiver for the Sun State Savings and Loan 
     Association, F.S.A.); and
       (B) includes the Development Agreement, the Use Agreement, 
     and all other associated ancillary agreements and exhibits.
       (12) Use agreement.--The term ``Use Agreement'' means the 
     agreement between the City and the Community, executed on 
     September 11, 1995, that sets forth conditions and 
     restrictions that--
       (A) are supplemental to the Settlement, Release and 
     Property Conveyance Agreement referred to in paragraph 
     (11)(A); and
       (B) apply to the future use and development of the Mountain 
     Property.

     SEC. 4. APPROVAL OF AGREEMENT.

       The Settlement Agreement is hereby approved and ratified 
     and shall be fully enforceable in accordance with its terms 
     and the provisions of this Act.

     SEC. 5. TRANSFER OF PROPERTIES.

       (a) In General.--Upon satisfaction of all conditions to 
     closing set forth in the Settlement Agreement, the Resolution 
     Trust Corporation shall transfer, pursuant to the terms of 
     the Settlement Agreement--
       (1) to the Secretary, the Mountain Property and the 
     Development Property purchased by the Community from the 
     Resolution Trust Corporation; and
       (2) to the City, the Preservation Property and the 
     Dedication Property purchased by the City from the Resolution 
     Trust Corporation.
       (b) Trust Status.--The Mountain Property and the 
     Development Property transferred pursuant to subsection 
     (a)(1) shall, subject to sections 6 and 7--
       (1) be held in trust by the United States for the 
     Community; and
       (2) become part of the Reservation.
       (c) Records.--Upon the satisfaction of all of the 
     conditions of closing set forth in the Settlement Agreement, 
     the Secretary shall file a plat of survey depicting the 
     Saddleback Property (that includes a depiction of the 
     Dedication Property, the Development Property, the Mountain 
     Property, and the Preservation Property) with--
       (1) the office of the Recorder of Maricopa County, Arizona; 
     and
       (2) the Titles and Records Center of the Bureau of Indian 
     Affairs, located in Albuquerque, New Mexico.

     SEC. 6. LIMITATIONS ON USE AND DEVELOPMENT.

       Upon the satisfaction of all of the conditions of closing 
     set forth in the Settlement Agreement, the properties 
     transferred pursuant to paragraphs (1) and (2) of section 
     5(a) shall be subject to the following limitations and 
     conditions on use and development:
       (1) Preservation property.--
       (A) In general.--Except as provided in subparagraph (B), 
     the Preservation Property shall be forever preserved in its 
     natural state for use only as a public park or recreation 
     area that shall--
       (i) be utilized and maintained for the purposes set forth 
     in section 4(C) of the Settlement Agreement; and
       (ii) be subject to the restrictions set forth in section 
     4(C) of the Settlement Agreement.
       (B) Shea boulevard.--At the sole discretion of the City, a 
     portion of the Preservation Property may be used to widen, 
     reconfigure, repair, or reengineer Shea Boulevard in 
     accordance with section 4(D) of the Settlement Agreement.
       (2) Dedication property.--The Dedication Property shall be 
     used to widen, reconfigure, repair, or reengineer Shea 
     Boulevard and 136th Street, in accordance with sections 4(D) 
     and 7 of the Settlement Agreement.
       (3) Mountain property.--Except for the areas in the 
     Mountain Property referred to as Special Cultural Land in 
     section 5(C) of the Settlement Agreement, the Mountain 
     Property shall be forever preserved in its natural state for 
     use only as a public park or recreation area that shall--
       (A) be utilized and maintained for the purposes set forth 
     in section 5(C) of the Settlement Agreement; and
       (B) be subject to the restrictions set forth in section 
     5(C) of the Settlement Agreement.
       (4) Development property.--The Development Property shall 
     be used and developed for the economic benefit of the 
     Community in accordance with the provisions of the Settlement 
     Agreement and the Development Agreement.

     SEC. 7. AMENDMENTS TO THE SETTLEMENT AGREEMENT.

       No amendment made to the Settlement Agreement (including 
     any deviation from an approved plan described in section 9(B) 
     of the Settlement Agreement) shall become effective, unless 
     the amendment--
       (1) is made in accordance with the applicable requirements 
     relating to the form and approval of the amendment under 
     sections 9(B) and 34 of the Settlement Agreement; and
       (2) is consistent with the provisions of this Act.
                                 ______

      By Mr. DOLE (for Mr. Hatch (for himself, Mr. Biden, Mr. Grassley, 
        Mr. Heflin, Mr. Specter, Mr. Simon, Mr. DeWine, Mrs. Feinstein, 
        and Mr. Abraham)):
  S. 1328. A bill to amend the commencement dates of certain temporary 
Federal judgeships; read the first time.


           THE JUDICIAL IMPROVEMENT ACT AMENDMENT ACT OF 1995

  Mr. HATCH. Mr. President, I introduce a bill to amend the 
commencement dates of certain temporary judgeships that were created 
under section 203(c) of the Judicial Improvements Act of 1990, Public 
Law 101-650, 104 Stat. 5101. The minor adjustment embodied in this bill 
should improve the efficiency of the courts involved, and is not 
expected to be controversial. I am pleased to have Senators Biden, 
Grassley, Heflin, Specter, Simon, DeWine, Feinstein, and Abraham as 
original cosponsors.
  The Judicial Improvements Act of 1990 created the temporary 
judgeships by providing that a new district judge would be appointed to 
each of 13 specified districts, and by providing that the first vacancy 
in the office of a district judge in those districts occurring after 
December 1, 1995 would not be filled.
  The districts are as follows: the northern district of Alabama, the 
eastern district of California, the district of Hawaii, the central 
district of Illinois, the southern district of Illinois, the district 
of Kansas, the western district of Michigan, the eastern district of 
Missouri, the district of Nebraska, the northern district of New York, 
the northern district of Ohio, the eastern district of Pennsylvania, 
and the eastern district of Virginia.
  In a given district, the new judgeship is temporary but the 
individual judge appointed serves on a permanent basis in the same 
manner as any other article III judge. The overlap in judgeships--
between the appointment of a judge to a temporary judgeship and the 
point at which a vacant permanent judgeship is left unfilled--is what 
effectively adds another judge to the district for a temporary period 
of time.
  Due to delays in nomination and confirmation, however, many districts 
have had only a relatively brief period of time in which to take 
advantage of their temporary judgeship. In the district of Hawaii and 
the southern district of Illinois, for example, new judges were not 
confirmed until October 1994. Other districts have faced similar 
delays. Those delays mean that many of the temporary judgeships will be 
unable to fulfill congressional intent to alleviate the backlog of 
cases in those districts. Many of the districts 

[[Page S 15237]]
faced a particularly heavy load of drug enforcement matters.
  This bill changes the second part of the temporary judgeship calculus 
by providing that the first district judge vacancy occurring 5 years or 
more after the confirmation date of the judge appointed to fill the 
temporary judgeship would not be filled. In that way, each district 
would benefit from an extra active judge for at least 5 years, 
regardless of how long the appointment process takes. This will help 
alleviate the extra burden faced in those districts. The only district 
excluded from this treatment is the western district of Michigan. That 
district requested to be excluded because its needs will be met under 
the current scheme.
  The Administrative Office of the United States Courts has requested 
that the Senate pass this bill before December 1, 1995. After that 
date, some vacant judgeships will be unable to be filled under current 
law. As Chairman of the Judiciary Committee, I will do my part to 
expedite this bill's passage.
                                 ______

      By Mr. DOLE:
  S. 1329. A bill to amend title 38, United States Code, to provide for 
educational assistance to veterans, and for other purposes; to the 
Committee on Armed Services.


              the service persons readjustment act of 1995

  Mr. DOLE. Mr. President, today I am proud to introduce the Service 
Persons Readjustment Act of 1995. This legislation will provide our 
brave service men and women with education benefits comparable to the 
benefits previously earned by generations of veterans. This measure is 
long overdue.
  Fifty years ago, Congress and the American Legion worked diligently 
to pass the Servicemen's Readjustment Act of 1944, Better known as the 
GI bill of rights. That measure has been recognized as one of the 
greatest pieces of legislation ever enacted. As a result of educating 
its veterans, the United States experienced the greatest economic boom 
in our Nation's history. The Nation transformed from an industrial 
giant to a technological world leader. For the majority of veterans, 
including minorities and women, the dream of receiving a college 
education became a reality.
  When the original GI bill was introduced in Congress, many Members 
feared that the cost of this program would bankrupt the country. 
Colleges and universities nationwide argued that such a program would 
lower educational standards. President Roosevelt initially opposed the 
idea because of the projected cost. Now, as history demonstrates, the 
dollars invested in veterans' education have returned to the Government 
10 times. I ask my colleagues to demonstrate the same courage and 
resolve as the Members of Congress did in 1944, by making a financial 
investment in our Nation's future.
  Unfortunately, the GI bill which once covered 100 percent of a 
veteran's education presently offsets educational costs by only 37 
percent. Today, America's veterans are willing to work and invest more 
money than ever before for their educational benefits. Congress should 
provide them with that opportunity. The current Montgomery GI bill does 
not provide the flexibility to meet veterans needs. If a veteran wishes 
to attend a 1 year vocational school or a 4 year university, the 
program remains the same. The veteran who chooses a 1 year school will 
receive a disproportionately smaller benefit package.

  Under my proposed legislation, benefits can be shaped to meet the 
educational or training goals of veterans by allowing them to choose 
the length of their benefit package.
  An improved GI bill will create economic equality among many 
Americans. Because individuals from the lower and middle classes 
comprise the majority of the military, the bill will allow the less 
fortunate to earn their educations rather than depending on social 
handouts. With the percentage of women and minorities in the military 
growing steadily, improved benefits will also help level the playing 
field.
  Presently, the GI bill is both a recruiting incentive and an 
educational opportunity. Current program values are simply inadequate 
to meet a veterans educational needs. Plenty of veterans sign up for 
the program. Few actually ever receive benefits. Sadly, once ready to 
start school, veterans quickly realize that their benefits pale in 
comparison to their financial obligations. America's veterans, 
thoroughly understand responsibility and sacrifice. However, veterans 
should not be forced to bear these burdens when other Government 
educational programs provide greater benefits to nonveterans with 
considerably less commitment.
  The American Legion has repeatedly asked Congress to increase 
education benefits for our brave men and women who have served 
honorably. The legislation I am introducing will allow service members 
to invest more money. It will teach young men and women the value of 
working hard and saving money to reach one's goals and dreams. 
Educational assistance for veterans consistently proves to be a winning 
concept. Trained and educated individuals make more money, spend more 
money, and pay more taxes. Many of my colleagues are present today 
because of the GI bill. Their benefits were far more generous than 
today's educational package. I hope those Senators will support this 
measure. This new program, like the original GI bill, is a wise 
investment in America's future.
  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. 1329

       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 ``Servicepersons Readjustment 
     Act of 1995''.
                    TITLE I--READJUSTMENT ASSISTANCE

     SEC. 101. EDUCATIONAL ASSISTANCE.

       (a) In General.--Title 38, United States Code, is amended 
     by inserting after chapter 32 the following new chapter:

      ``CHAPTER 33--SERVICEPERSONS EDUCATIONAL ASSISTANCE PROGRAM

                        ``SUBCHAPTER I--PURPOSES

``Sec.
``3301. Purposes.

             ``SUBCHAPTER II--BASIC EDUCATIONAL ASSISTANCE

``3311. Basic educational assistance entitlement: service on active 
              duty.
``3312. Basic educational assistance entitlement: service as a Reserve.
``3313. Duration of basic educational assistance.
``3314. Payment of basic educational assistance.
``3315. Amount of basic educational assistance.

     ``SUBCHAPTER III--TIME LIMITATION FOR USE OF ELIGIBILITY AND 
           ENTITLEMENT; GENERAL AND ADMINISTRATIVE PROVISIONS

``3321. Time limitation for use of eligibility and entitlement.
``3322. Bar to duplication of educational assistance benefits.
``3323. Program administration.

                        ``SUBCHAPTER I--PURPOSES

     ``Sec. 3301. Purposes

       ``The purposes of this chapter are--
       ``(1) to provide a new educational assistance program to 
     assist in the readjustment of members of the Armed Forces to 
     civilian life after their separation from military service; 
     and
       ``(2) to provide supplemental assistance to such members to 
     facilitate that assistance.

             ``SUBCHAPTER II--BASIC EDUCATIONAL ASSISTANCE

     ``Sec. 3311. Basic educational assistance entitlement: 
       service on active duty

       ``(a) Except as provided in subsection (c), each 
     individual--
       ``(1) who first becomes a member of the Armed Forces or 
     first enters on active duty as a member of the Armed Forces 
     after April 1, 1996, and--
       ``(A) who serves as the individual's initial obligated 
     period of active duty at least 2 years of continuous active 
     duty in the Armed Forces; or
       ``(B) who serves in the Armed Forces and is discharged or 
     released from active duty--
       ``(i) for a service-connected disability, for a medical 
     condition which preexisted such service on active duty and 
     which the Secretary determines is not service-connected, for 
     hardship, or for a physical or mental condition that was not 
     characterized as a disability and did not result from the 
     individual's own willful misconduct but did interfere with 
     the individual's performance of duty (as determined by the 
     Secretary of the military department concerned in accordance 
     with regulations prescribed under section 
     3011(a)(1)(A)(ii)(I) of this title);
       ``(ii) for the convenience of the Government in the case of 
     an individual who completed not less than 20 months of 
     continuous active duty, if the initial obligated period of 
     active duty of the individual was less than 2 years, or in 
     the case of an individual who 

[[Page S 15238]]
     completed not less than 30 months of continuous active duty if the 
     initial obligated period of active duty of the individual was 
     at least 2 years; or
       ``(iii) involuntarily for the convenience of the Government 
     as a result of a reduction in force (as determined by the 
     Secretary of the military department concerned in accordance 
     with regulations prescribed under section 
     3011(a)(1)(A)(ii)(III) of this title);
       ``(2) who has completed the requirements of a secondary 
     school diploma (or equivalency certificate) not later than 
     the original ending date of the individual's initial 
     obligated period of active duty, regardless of whether the 
     individual is discharged or released from active duty on such 
     date;
       ``(3) who is not a graduate of a military academy or the 
     recipient of financial assistance from the Government for 
     participation in a Reserve Officers' Training Corps program; 
     and
       ``(4) who, after the completion of the service described in 
     paragraph (1)--
       ``(A) continues on active duty;
       ``(B) is discharged from active duty with an honorable 
     discharge;
       ``(C) is released from service on active duty characterized 
     by the Secretary concerned as honorable service and is placed 
     on the retired list, is transferred to the Fleet Reserve or 
     Fleet Marine Corps Reserve, or is placed on the temporary 
     disability retired list; or
       ``(D) is released from active duty for further service in a 
     reserve component of the Armed Forces after service on active 
     duty characterized by the Secretary concerned as honorable 
     service;

     is entitled to basic educational assistance under this 
     chapter.
       ``(b)(1) The basic pay of any individual described in 
     subsection (a) who does not make an election under subsection 
     (c) shall be reduced by $100 for each month of a period (as 
     designated by the individual) of months in which the 
     individual is entitled to such pay. The period shall begin 
     upon the commencement of the person's initial period of 
     obligated active duty as described in subsection (a)(1). The 
     period shall be a multiple of 12 months and shall be not less 
     than 12 months or more than 48 months.
       ``(2) Any amount by which the basic pay of an individual is 
     reduced under this section shall revert to the Treasury and 
     shall not, for purposes of any Federal law, be considered to 
     have been received by or to be within the control of the 
     individual.
       ``(c) An individual described in subsection (a) may make an 
     election not to receive educational assistance under this 
     chapter. Any such election shall be made at the time the 
     individual initially enters on active duty as a member of the 
     Armed Forces. Any individual who makes such an election is 
     not entitled to educational assistance and supplemental 
     assistance under this chapter.

     ``Sec. 3312. Basic educational assistance entitlement: 
       service as a Reserve

       ``(a) Except as provided in subsection (b), each 
     individual--
       ``(1)(A) who--
       ``(i) first becomes a member of a reserve component after 
     April 1, 1996; or
       ``(ii) first enters on active duty as a member of the Armed 
     Forces after that date;
       ``(B) beginning within 1 year after first becoming such a 
     member or first entering on such duty, enters into an 
     agreement to serve at least 6 years of continuous duty in a 
     reserve component; and
       ``(C) serves at least 6 years of such duty during which the 
     individual participates satisfactorily in training as 
     determined by the Secretary concerned;
       ``(2) who, before completion of the duty described in 
     paragraph (1) pursuant to the agreement in that paragraph, 
     has completed the requirements of a secondary school diploma 
     (or an equivalency certificate);
       ``(3) who is not a graduate of a military academy or the 
     recipient of financial assistance from the Government for 
     participation in a Reserve Officers' Training Corps program; 
     and
       ``(4) who, after completion of the duty in a reserve 
     component described in paragraph (1) pursuant to the 
     agreement in that paragraph is discharged from service with 
     an honorable discharge, is placed on the retired list, or 
     continues on active duty or in a reserve component;

     is entitled to basic educational assistance under this 
     chapter.
       ``(b)(1) The requirement of 6 years of service under 
     paragraph (1) of subsection (a) pursuant to an agreement 
     referred to in such paragraph is not applicable to an 
     individual--
       ``(A) who, during the active duty service described in such 
     paragraph, was discharged or released from active duty in the 
     Armed Forces for a service-connected disability, for a 
     medical condition which preexisted such service on active 
     duty and which the Secretary determines is not service 
     connected, or for a physical or mental condition not 
     characterized as a disability, as described in section 
     3011(a)(1)(A)(ii)(I) of this title, if the individual was 
     obligated, at the beginning of such active duty service, to 
     serve such 6 years of service;
       ``(B) who, during the 6 years of service, is discharged or 
     released from service in a reserve component (i) for a 
     service-connected disability, (ii) for a medical condition 
     which preexisted the individual's becoming a member of the 
     reserve component and which the Secretary determines is not 
     service connected, (iii) for hardship, (iv) in the case of an 
     individual discharged or released after 30 months of such 
     service for the convenience of the Government, (v) 
     involuntarily for the convenience of the Government as a 
     result of a reduction in force (as determined by the 
     Secretary of the military department concerned in accordance 
     with regulations prescribed under section 
     3012(b)(1)(B)(ii)(V) of this title), or (VI) for a physical 
     or mental condition not characterized as a disability, as 
     described in section 3011(a)(1)(A)(ii)(I) of this title; or
       ``(C) who, before completing the 6 years of service 
     described in such paragraph, ceases to be a member of any 
     reserve component during the period beginning on October 1, 
     1991, and ending on September 30, 1999, by reason of the 
     inactivation of the person's unit of assignment.
       ``(2) In the case of an individual described in paragraph 
     (1) of subsection (a) who begins service in the Selected 
     Reserve within one year after completion of the service 
     described in such paragraph pursuant to an agreement referred 
     to in such paragraph, the continuity of service of such 
     individual as a member of the Selected Reserve shall not be 
     considered to be broken--
       ``(A) by any period of time (not to exceed a maximum period 
     prescribed by the Secretary concerned by regulation) during 
     which the member is not able to locate a unit of the Selected 
     Reserve of the member's Armed Force that the member is 
     eligible to join or that has a vacancy; or
       ``(B) by any other period of time (not to exceed a maximum 
     period prescribed by the Secretary concerned by regulation) 
     during which the member is not attached to a unit of the 
     Selected Reserve that the Secretary concerned, pursuant to 
     regulations, considers to be inappropriate to consider for 
     such purpose.
       ``(c) The basic pay of any individual described in 
     subsection (a) who does not make an election under subsection 
     (d) shall be reduced by $50 for each month of a period (as 
     designated by the individual) of the months in which the 
     individual is entitled to such pay. The period shall begin 
     upon the commencement of the person's initial period of 
     obligated duty in a reserve component as described in 
     subsection (a)(1). The period shall be a multiple of 12 
     months and shall be not less than 12 months or more than 48 
     months.
       ``(2) Any amount by which the basic pay of an individual is 
     reduced under this section shall revert to the Treasury and 
     shall not, for purposes of any Federal law, be considered to 
     have been received by or to be within the control of the 
     individual.
       ``(d) An individual described in subsection (a) may make an 
     election not to receive educational assistance under this 
     chapter. Any such election shall be made at the time the 
     individual initially enters on active duty as a member of the 
     Armed Forces. Any individual who makes such an election is 
     not entitled to educational assistance and supplemental 
     assistance under this chapter.

     ``Sec. 3313. Duration of basic educational assistance

       ``(a) Subject to section 3695 of this title, each 
     individual entitled to basic educational assistance under 
     section 3311 of this title is entitled to 1 month of 
     educational assistance benefits under this chapter for each 
     month of continuous active duty served by the individual for 
     which the basic pay of the individual is reduced by operation 
     of subsection (b) of such section 3311.
       ``(b) Subject to section 3695 of this title, each 
     individual entitled to basic educational assistance under 
     section 3312 of this title is entitled to 1 month of 
     educational assistance benefits under this chapter for each 
     month of duty in a reserve component served by the individual 
     for which the basic pay of the individual is reduced by 
     operation of subsection (b) of such section 3312.
       ``(c) No individual may receive basic educational 
     assistance benefits under this chapter for a period in excess 
     of 48 months.

     ``Sec. 3314. Payment of basic educational assistance

       ``(a) The Secretary shall pay to each individual entitled 
     to basic educational assistance under this chapter a basic 
     educational assistance allowance to be used by the individual 
     for the purposes described in subsection (b).
       ``(b) Subject to subsection (c), an individual shall use a 
     basic educational assistance allowance under this chapter for 
     the following purposes:
       ``(1) To pay the outstanding interest and principal on 
     educational loans of the individual.
       ``(2) To meet the costs (including subsistence, tuition, 
     fees, supplies, books, equipment, and other educational costs 
     approved by the Secretary) of a program of institutional 
     training, including a program of institutional training at an 
     institution of higher learning and a program of institutional 
     training that does not lead to a standard college degree.
       ``(3) To meet the costs of an approved on-the-job training 
     program or apprentice training program.
       ``(4) To meet the costs of a program of correspondence 
     courses.
       ``(5) To meet the costs of a cooperative training program.
       ``(6) To meet the costs of tutorial assistance.
       ``(7) To meet the costs of other educational programs, 
     training programs, or other programs that the Secretary 
     determines appropriate to achieve the purposes for which 
     educational assistance is provided under this chapter.

[[Page S 15239]]

       ``(c) An individual may not use a basic educational 
     assistance allowance under this section unless such use is 
     approved by the Secretary in accordance with such regulations 
     as the Secretary shall prescribe. To the maximum extent 
     practicable, the regulations shall conform to the provisions 
     on approval of courses and programs of education set forth in 
     chapter 36 of this title, and the regulations prescribed 
     thereunder.

     ``Sec. 3315. Amount of basic educational assistance

       ``(a)(1) Subject to subsection (b), a basic assistance 
     allowance under this chapter shall be paid as follows:
       ``(A) In the case of an individual entitled to the 
     allowance under section 3311 of this title--
       ``(i) at the monthly rate of $800 for a program (including 
     tutorial assistance) referred to in section 3315(b) of this 
     title pursued on a full-time basis;
       ``(ii) at the monthly rate of $600 for such a program 
     pursued on a three-quarters time basis; or
       ``(iii) at the monthly rate of $400 for such a program 
     pursued on less than a three-quarters time basis.
       ``(B) In the case of an individual entitled to the 
     allowance under section 3312 of this title--
       ``(i) at the monthly rate of $400 for a program (including 
     tutorial assistance) referred to in section 3315(b) of this 
     title pursued on a full-time basis;
       ``(ii) at the monthly rate of $300 for such a program 
     pursued on a three-quarters time basis; or
       ``(iii) at the monthly rate of $200 for such a program 
     pursued on less than a three-quarters time basis.
       ``(2) An individual receiving educational assistance 
     benefits under this chapter for purposes of paying 
     outstanding interest and principal on educational loans shall 
     be considered to be an individual pursuing a program on a 
     full-time basis.
       ``(b) With respect to any fiscal year beginning after 
     fiscal year 1997, the Secretary shall continue to pay, in 
     lieu of the rates payable under paragraph (1) or (2) of 
     subsection (a), the monthly rates payable under this 
     subsection for the previous fiscal year and shall provide, 
     for any such fiscal year, a percentage increase in such rates 
     equal to the percentage by which--
       ``(1) the Consumer Price Index (all items, United States 
     city average) for the 12-month period ending on the June 30 
     preceding the beginning of the fiscal year for which the 
     increase is made, exceeds
       ``(2) such Consumer Price Index for the 12-month period 
     preceding the 12-month period described in paragraph (1).

     ``SUBCHAPTER III--TIME LIMITATION FOR USE OF ELIGIBILITY AND 
           ENTITLEMENT; GENERAL AND ADMINISTRATIVE PROVISIONS

     ``Sec. 3321. Time limitation for use of eligibility and 
       entitlement

       ``(a) The period during which an individual entitled to 
     educational assistance under this chapter may use such 
     individual's entitlement expires at the end of the 10-year 
     period beginning on the date of such individual's initial 
     discharge or release from active duty or service in a reserve 
     component, as the case may be.
       ``(b) In the case of an individual eligible for educational 
     assistance under this chapter--
       ``(1) who was prevented from pursuing the individual's 
     chosen program of education before the expiration of the 10-
     year period for use of entitlement under this chapter 
     otherwise applicable under this section because of a physical 
     or mental disability which was not the result of the 
     individual's own willful misconduct, and
       ``(2) who applies for an extension of such 10-year period 
     within 1 year after (A) the last day of such period, or (B) 
     the last day on which the individual was so prevented from 
     pursuing the program, whichever is later,

     the 10-year period shall not run with respect to the 
     individual during the period of time that the individual was 
     so prevented from pursuing the program and the 10-year period 
     will again begin running on the first day following the 
     individual's recovery from the disability on which it is 
     reasonably feasible, as determined under regulations 
     prescribed by the Secretary, for the individual to initiate 
     or resume pursuit of a program of education or training with 
     educational assistance under this chapter.
       ``(c)(1) If an individual eligible for educational 
     assistance under this chapter is enrolled under this chapter 
     in an educational institution regularly operated on the 
     quarter or semester system and the period of such 
     individual's entitlement under this chapter would, under 
     section 3313, expire during a quarter or semester, such 
     period shall be extended to the end of such quarter or 
     semester.
       ``(2) If an individual eligible for educational assistance 
     under this chapter is enrolled under this chapter in an 
     educational institution not regularly operated on the quarter 
     or semester system and the period of such individual's 
     entitlement under this chapter would, under section 3313, 
     expire after a major portion of the course is completed, such 
     period shall be extended to the end of the course or for 12 
     weeks, whichever is the lesser period of extension.

     ``Sec. 3322. Bar to duplication of educational assistance 
       benefits

       ``An individual entitled to educational assistance under 
     this chapter who is eligible for educational assistance under 
     a program under chapter 31, 32, or 35 of this title, under 
     chapter 106 or 107 of title 10, or under the Hostage Relief 
     Act of 1980 (Public Law 96-449; 5 U.S.C. 5561 note) may not 
     receive assistance under two or more of such programs 
     concurrently but shall elect (in such form and manner as the 
     Secretary may prescribe) under which program to receive 
     educational assistance.

     ``Sec. 3323. Program administration

       ``(a) The Secretary shall prescribe regulations governing 
     the provision of educational assistance and supplemental 
     assistance under this chapter and otherwise governing the 
     administration of this chapter. To the maximum extent 
     practicable, and except as provided in subsection (b), such 
     regulations shall be consistent with relevant provisions on 
     the administration of educational assistance benefits under 
     chapters 30, 34, and 36 of this title.
       ``(b) Notwithstanding any limitation on the period of 
     operation of an educational institution under section 3689 of 
     this title, or under regulations prescribed thereunder, the 
     Secretary may approve the enrollment of an eligible 
     individual under this chapter in a course offered by a 
     proprietary profit educational institution at a subsidiary 
     branch or extension of such institution in operation for less 
     than two years if--
       ``(1) the main branch of such institution has been in 
     operation for more than two years at the time the course is 
     offered; and
       ``(2) another subsidiary branch or extension of such 
     institution has been in operation for more than two years at 
     such time''.
       (b) Clerical Amendments.--The table of chapters at the 
     beginning of title 38, United States Code, and at the 
     beginning of part III of such title, are each amended by 
     inserting after the item relating to chapter 31 the following 
     new item:

``33. SERVICEPERSONS EDUCATIONAL ASSISTANCE PROGRAM.........3301''.....

       (c) Conforming Amendment.--Paragraph (4) of section 3695(a) 
     of such title is amended to read as follows:
       ``(4) Chapters 30, 32, 33, 34, 35, and 36 of this title, 
     and the former chapter 33 of this title that was repealed 
     before the date of the enactment of the Servicepersons 
     Readjustment Act of 1995.''.

     SEC. 102. TAX TREATMENT OF EDUCATIONAL ASSISTANCE.

       (a) Tax Credit for Unused Educational Assistance.--
       (1) In general.--Subpart C of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     refundable credits) is amended by redesignating section 35 as 
     section 36 and by inserting after section 34 the following 
     new section:

     ``SEC. 35. UNUSED PORTION OF VETERANS EDUCATIONAL ASSISTANCE.

       ``(a) Allowance of Credit.--In the case of an individual--
       ``(1) who is entitled to educational assistance under 
     chapter 33 of title 38, United States Code, and
       ``(2) whose eligibility for such assistance expires under 
     section 3331 of such title during the taxable year,

     there shall be allowed as a credit against the tax imposed by 
     this subtitle for the taxable year an amount equal to the 
     unused portion of such educational assistance.
       ``(b) Unused Portion.--For purposes of subsection (a), the 
     term `unused portion' means, with respect to any individual, 
     an amount equal to the lesser of--
       ``(1) the total amount of reductions in the individual's 
     basic pay under chapter 33 of title 38, United States Code, 
     by reason of the individual having elected to receive 
     educational assistance under such chapter, or
       ``(2) the excess (if any) of--
       ``(A) the total amount of basic educational assistance 
     which the individual is entitled to under subchapter II of 
     chapter 33 of title 38, United States Code, over
       ``(B) the sum of--
       ``(i) the total amounts received by such individual under 
     subchapter II of chapter 33 of title 38, United States Code, 
     and
       ``(ii) the total amounts received by such individual under 
     any program described in section 3332 of such title which the 
     individual elects to receive in lieu of amounts described in 
     clause (i).''
       (2) Conforming amendment.--The table of sections for 
     subpart C of part IV of subchapter A of chapter 1 of such 
     Code is amended by striking the item relating to section 35 
     and inserting the following new items:

``Sec. 35. Unused portion of veterans educational assistance.
``Sec. 36. Overpayments of tax.''

       (b) Exclusion of Certain Amounts.--Section 134 of the 
     Internal Revenue Code of 1986 (relating to certain military 
     benefits) is amended by adding at the end the following new 
     subsection:
       ``(c) Certain Educational Benefits.--
       ``(1) In general.--For purposes of this section, any 
     educational assistance provided under chapter 33 of title 38, 
     United States Code, shall be treated as a qualified military 
     benefit.
       ``(2) No constructive receipt.--No amount shall be included 
     in the gross income of any individual solely because the 
     individual's basic pay is reduced under chapter 33 of title 
     38, United States Code, by reason of the individual having 
     elected to receive educational assistance under such 
     chapter.''

[[Page S 15240]]

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of 
     enactment of this Act.
                           TITLE II--FUNDING

     SEC. 201. VETERANS PROGRAMS.

       (a) Extension of Authority To Require Copayments in 
     Exchange for Receiving Health-Care Benefits.--
       (1) Hospital and medical care.--Section 8013(e) of the 
     Omnibus Budget Reconciliation Act of 1990 (38 U.S.C. 1710 
     note) is amended by striking out ``September 30, 1998'' and 
     inserting in lieu thereof ``September 30, 2000''.
       (2) Outpatient medications.--Section 1722A(c) of title 38, 
     United States Code, is amended by striking out ``September 
     30, 1998'' and inserting in lieu thereof ``September 30, 
     2000''.
       (b) Extension of Authority for Medical Care Cost 
     Recovery.--Section 1729(a)(2)(E) of such title is amended in 
     the matter preceding clause (i) by striking out ``October 1, 
     1998,'' and inserting in lieu thereof ``October 1, 2000,''.
       (c) Repeal of Prohibition on Offsets for Liabilities on 
     Loan Guarantees.--(1) Section 3726 of such title is repealed.
       (2) The table of sections at the beginning of chapter 37 of 
     such title is amended by striking out the item relating to 
     section 3726.
       (d) Extension of Authority To Collect Increased Loan 
     Fees.--
       (1) Home loan fees.--Section 3729(a)(4) of such title is 
     amended by striking out ``October 1, 1998,'' and inserting in 
     lieu thereof ``October 1, 2000,''.
       (2) Fee for multiple use of housing assistance.--Section 
     3729(a)(5)(C) of such title is amended by striking out 
     ``October 1, 1998'' and inserting in lieu thereof ``October 
     1, 2000''.
       (e) Authority To Collect Increased Loan Fees for 
     Manufactured Housing.--
       (1) Authority.--Section 3729(a)(4) of such title, as 
     amended by subsection (c)(1), is further amended by striking 
     out ``, (D)(ii),''.
       (2) Expiration.--The amendment made by paragraph (1) 
     expires on September 30, 2000.
       (f) Extension of Procedures Applicable to Liquidation Sales 
     on Defaulted Home Loans.--Section 3732(c)(11) of such title 
     is amended by striking out ``October 1, 1998'' and inserting 
     in lieu thereof ``October 1, 2000''.
       (g) Extension of Income Verification Authority.--Section 
     5317(g) of such title is amended by striking out ``September 
     30, 1998'' and inserting in lieu thereof ``September 30, 
     2000''.
       (h) Extension of Limitation on Pension for Certain 
     Recipients of Medicaid-Covered Nursing Home Care.--Section 
     5503(f)(7) of such title is amended by striking out 
     ``September 30, 1998'' and inserting in lieu thereof 
     ``September 30, 2000''.
       (i) Closure of VA Supply Depots.--Notwithstanding the 
     provisions of sections 510(b) and 8121 of title 38, United 
     States Code, the Secretary of Veterans Affairs shall phase 
     out and close the Department of Veterans Affairs Supply 
     Depots located at Somerville, New Jersey, Hines, Illinois, 
     and Bell, California, over 2 fiscal years, beginning in 
     fiscal year 1995 and ending in fiscal year 1996, and shall 
     transfer from the Department of Veterans Affairs Revolving 
     Supply Fund to the General Fund of the Treasury, $45,000,000 
     by September 30, 1995, and $44,000,000 by September 30, 1996.
       (j) Provision of Data Bank Information to Department of 
     Veterans Affairs.--
       (1) Additional purpose of data bank.--
       (A) The heading to section 1144 of the Social Security Act 
     (42 U.S.C. 1320b-14) is amended by striking ``MEDICARE AND 
     MEDICAID'' and inserting ``HEALTH CARE''.
       (B) Subsection (a) of that section is amended--
       (i) in the matter preceding paragraph (1), by striking 
     ``Medicare and Medicaid'' and inserting ``Health Care'';
       (ii) by striking ``and'' at the end of paragraph (1);
       (iii) by substituting ``, and'' for the period at the end 
     of paragraph (2); and
       (iv) by adding at the end the following:
       ``(3) assist in the identification of, and the collection 
     from, third parties responsible for payment for health care 
     items and services furnished to veterans under chapter 17 of 
     title 38, United States Code.''.
       (2) Disclosure of data bank information to secretary of 
     veterans affairs.--Subsection (b)(2)(B) of that section is 
     amended by inserting ``to the Secretary of Veterans Affairs 
     and'' after ``Data Bank''.

     SEC. 202. ANNUAL PAY ADJUSTMENTS FOR MEMBERS OF CONGRESS.

       Effective as of December 31, 1995, paragraph (2) of section 
     601(a) of the Legislative Reorganization Act of 1946 is 
     amended--
       (1) by striking ``(2) Effective'' and inserting ``(2)(A) 
     Subject to subparagraph (B), effective''; and
       (2) by adding at the end the following:
       ``(B) In no event shall the percentage adjustment taking 
     effect under subparagraph (A) in any calendar year exceed the 
     percentage adjustment taking effect in such calendar year 
     under section 5303 of title 5, United States Code, in the 
     rates of pay under the General Schedule.''.

     SEC. 203. DETERRENCE OF FRAUD AND ABUSE IN FECA PROGRAM.

       (a) Section 8102 of title 5, United States Code, is amended 
     to redesignate subsection (b) as subsection (c), and to add 
     the following new subsection (b):
       ``(b) An individual convicted of a violation of 18 U.S.C. 
     1920, as amended, or of any other fraud related to the 
     application for or receipt of benefits under subchapter I or 
     III of chapter 81 of title 5, shall forfeit, as of the date 
     of the conviction, all entitlement to any prospective 
     benefits provided by subchapter I or III for any injury 
     occurring on or before the date of the conviction. Such a 
     forfeiture of benefits shall be in addition to any action the 
     Secretary may take under section 8106 or 8129 of title 5, 
     United States Code.''.
       (b) Section 8116 of title 5, United States Code, is amended 
     by adding the following new subsection (e):
       ``(e) Notwithstanding any other provision of this title, no 
     benefits under sections 8105 or 8106 of this subchapter shall 
     be paid or provided to any individual during any period 
     during which such individual is confined in a jail, prison, 
     or other penal institution or correctional facility, pursuant 
     to that individual's conviction of an offense that 
     constituted a felony under applicable law, except where such 
     individual has one or more dependents within the meaning of 
     section 8110 of this subchapter, in which case the Secretary 
     may, during the period of incarceration, pay to such 
     dependents a percentage of the benefits that would have been 
     payable to such individual computed according to the 
     percentages set forth in section 8133(a) (1)-(5) of this 
     subchapter.''.
       (c) Section 8116 of title 5, United States Code, is further 
     amended by adding the following new subsection (f):
       ``(f) Notwithstanding the provisions of section 552a of 
     this title, or any other provision of Federal or State law, 
     any agency of the United States Government or of any State 
     (or political subdivision thereof) shall make available to 
     the Secretary, upon written request, the names and Social 
     Security account numbers of individuals who are confined in a 
     jail, prison or other penal institution or correctional 
     facility under the jurisdiction of such agency, pursuant to 
     such individuals' conviction of an offense that constituted a 
     felony under applicable law, which the Secretary may require 
     to carry out the provisions of this subsection.''.
       (d) Section 1920 of title 18, United States Code, is 
     amended to read as follows: ``Whoever knowingly and willfully 
     falsifies, conceals, or covers up a material fact, or makes a 
     false, fictitious, or fraudulent statement or representation, 
     or makes or uses a false statement or report knowing the same 
     to contain any false, fictitious or fraudulent statement or 
     entry in connection with the application for or receipt of 
     compensation or other benefit or payment under subchapter I 
     or III of chapter 81 of title 5, United States Code, shall be 
     punished by a fine of not more than $250,000, or by 
     imprisonment for not more than five years, or both.''.
       (e) Except as otherwise provided in this section, the 
     amendments made by this section shall be effective on the 
     date of enactment and shall apply to actions taken on or 
     after the date of enactment both with respect to claims filed 
     before the day of enactment and with respect to claims filed 
     after such date.
       (f) The amendments made by subsections (a), (b), and (c) of 
     this section shall be effective on the date of enactment and 
     shall apply to any person convicted or imprisoned on or after 
     the date of enactment.
       (g) The amendment made by subsection (d) of this section 
     shall be effective on the date of enactment and shall apply 
     to any claim, statement, representation, report, or other 
     written document made or submitted in connection with a claim 
     filed under subchapter I or III of chapter 81 of title 5, 
     United States Code.

     SEC. 204. ENHANCEMENT OF REEMPLOYMENT PROGRAMS FOR FEDERAL 
                   EMPLOYEES DISABLED IN THE PERFORMANCE OF DUTY.

       (a) In General.--Section 8104 of title 5, United States 
     Code, is amended--
       (1) by striking the comma after ``employment'' and by 
     striking ``other than employment undertaken pursuant to such 
     rehabilitation'' from subsection (b); and
       (2) by adding the following new subsection (c):
       ``(c) The Secretary of Labor, as part of the vocational 
     rehabilitation effort, may assist permanently disabled 
     individuals in seeking and/or obtaining employment. The 
     Secretary may reimburse an employer (including a Federal 
     employer), who was not the employer at the time of injury and 
     who agrees to employ a disabled beneficiary, for portions of 
     the salary paid by such employer to the reemployed, disabled 
     beneficiary. Any such sums shall be paid from the Employees' 
     Compensation Fund.''.
       (b) Expansion of Federal Employees' Compensation Act 
     Periodic Roll Management Project.--The Secretary of Labor may 
     expand the Federal Employees' Compensation Act Periodic Roll 
     Management Project to all offices of the Office of Workers' 
     Compensation Program of the Department of Labor.

     SEC. 205. SALE OF ALASKA POWER ADMINISTRATION.

       (a) Snettisham.--
       (1) Authority to sell.--The Secretary of Energy may sell 
     the Snettisham Hydroelectric Project (referred to in this 
     section as ``Snettisham'') to the State of Alaska (referred 
     to in this section as the ``Authority''), in accordance with 
     the terms of this section and the February 10, 1989, 
     Snettisham Purchase Agreement between the Alaska Power 
     Administration of the United States Department of Energy and 
     the Alaska Power Authority.

[[Page S 15241]]

       (2) Authority to sell to municipality of anchorage.--The 
     Secretary of Energy may sell the Eklutna Hydroelectric 
     Project (referred to in this section as ``Eklutna'') to the 
     municipality of Anchorage doing business as Municipal Light 
     and Power, the Chugach Electric Association, Inc., and the 
     Matanuska Electric Association, Inc. (referred to in this 
     section as ``Eklutna Purchasers'') in accordance with the 
     August 2, 1989, Eklutna Purchase Agreement between the United 
     States Department of Energy and the Eklutna Purchasers.
       (3) Assistance.--The heads of other affected Federal 
     departments and agencies, including the Secretary of the 
     Interior, shall assist the Secretary of Energy in 
     implementing the sales authorized by this subsection.
       (4) Disposition of proceeds.--The Secretary of Energy shall 
     deposit sale proceeds in the Treasury of the United States to 
     the credit of miscellaneous receipts.
       (5) Authority to make expenditures.--There are authorized 
     to be expended such sums as are necessary to prepare or 
     acquire Eklutna and Snettisham assets for sale and 
     conveyance, such preparations to provide sufficient section 
     to ensure the beneficial use, enjoyment, and occupancy to the 
     purchasers of the assets to be sold.
       (b) Exemption From Federal Power Act Requirements.--
       (1) Exemptions.--After the sales authorized by this section 
     take place, Eklutna and Snettisham, including future 
     modifications, shall continue to be exempt from the 
     requirements of the Federal Power Act (16 U.S.C. 791a), 
     including its requirements with respect to applications, 
     permits, licenses, and fees, unless a future modification of 
     Eklutna or Snettisham affects Federal lands not used for the 
     two projects when this section takes effect. The foregoing 
     exemptions are subject to the Memorandum of Agreement entered 
     into between the State of Alaska, the Eklutna Purchasers, the 
     Authority, and Federal fish and wildlife agencies regarding 
     the protection, mitigation of, damages to, and enhancement of 
     fish and wildlife, dated August 7, 1991, remaining in full 
     force and effect. Nothing in this section or the Federal 
     Power Act preempts the State of Alaska from carrying out the 
     responsibilities and authorities of the Memorandum of 
     Agreement.
       (2) Jurisdiction.--The District Court of the United States 
     for the District of Alaska has jurisdiction to review 
     decisions made under the Memorandum of Agreement and enforce 
     the provisions of the Memorandum of Agreement, including the 
     remedy of specific performance. An action seeking review of a 
     fish and wildlife program of the Governor of Alaska under the 
     Memorandum of Agreement or challenging actions of any of the 
     parties to the Memorandum of Agreement prior to the adoption 
     of the program shall be brought within 90 days of the time 
     the program is adopted by the Governor of Alaska, or be 
     barred. An action seeking review of implementation of the 
     program shall be brought within 90 days of the challenged act 
     implementing the program, or be barred.
       (3) Rights-of-way.--With respect to Eklutna lands described 
     in Exhibit A of the Eklutna Purchase Agreement:
       (A) The Secretary of the Interior shall issue rights-of-way 
     to the Alaska Power Administration for subsequent 
     reassignment to the Eklutna Purchasers--
       (i) at no cost to the Eklutna Purchasers;
       (ii) to remain effective for a period equal to the life of 
     Eklutna as extended by improvements, repairs, renewals, or 
     replacements; and
       (iii) sufficient for operation, maintenance, repair, and 
     replacement of, and access to, Eklutna facilities located on 
     military lands and lands managed by the Bureau of Land 
     Management, including land selected by the State of Alaska.
       (B) If the Eklutna Purchasers subsequently sell or transfer 
     Eklutna to private ownership, the Bureau of Land Management 
     may assess reasonable and customary fees for continued use of 
     the rights-of-way on lands managed by the Bureau of Land 
     Management and military lands in accordance with current law.
       (C) Fee section to lands at Anchorage Substation shall be 
     transferred to Eklutna Purchasers at no additional cost if 
     the Secretary of the Interior determines that pending claims 
     to and selections of those lands are invalid or relinquished.
       (D) With respect only to approximately 853 acres of Eklutna 
     lands identified in paragraphs 1.a., b., and c. of Exhibit A 
     of the Eklutna Purchase Agreement, the State of Alaska may 
     select and the Secretary of the Interior shall convey to the 
     State improved lands under the selection entitlements in 
     section 6(a) of the Act of July 7, 1958 (Public Law 85-508) 
     and the North Anchorage Land Agreement of January 31, 1983. 
     This conveyance is subject to the rights-of-way provided to 
     the Eklutna Purchasers under subparagraph (A).
       (4) Authority to select lands.--With respect to the 
     approximately 2,671 acres of Snettisham lands identified in 
     paragraphs 1.a., and b. of Exhibit A of the Snettisham 
     Purchase Agreement, the State of Alaska may select and the 
     Secretary of the Interior shall convey to the State improved 
     lands under the selection entitlements in section 6(a) of the 
     Act of July 7, 1958 (Public Law 85-508).
       (5) Prohibitions.--Federal lands conveyed to the State of 
     Alaska as part of, or in support of, the Snettisham transfer 
     are specifically prohibited from being included in the Alaska 
     Mental Health Enabling Act (70 Stat. 709) or any 
     reconstitution thereof, under the Alaska Mental Health Trust 
     Lands Settlement Act (Secs. 54-58, Ch. 66, Alaska Session 
     Laws 1991), or any other law.
       (6) Internal revenue code of 1986.--For purposes of section 
     147(d) of the Internal Revenue Code of 1986, ``1st use'' of 
     Snettisham shall be considered to occur pursuant to 
     acquisition of the property by or on behalf of the State of 
     Alaska.
       (7) Closing of alaska power administration.--No later than 
     1 year after both of the sales authorized in subsection (a) 
     have occurred, as measured by the transaction dates, 
     stipulated in the purchase agreements, the Secretary of 
     Energy shall--
       (A) complete the business of, and close out, the Alaska 
     Power Administration;
       (B) prepare and submit to Congress a report documenting the 
     sales; and
       (C) return unused balances of funds appropriated for the 
     Alaska Power Administration to the Treasury of the United 
     States.
       (8) Repeal of act of july 31, 1950.--The Act of July 31, 
     1950 (64 Stat. 382) is repealed effective on the date, as 
     determined by the Secretary of Energy, when all Eklutna 
     assets have been conveyed to the Eklutna Purchasers.
       (9) Repeal of section 204 of the flood control act of 
     1962.--Section 204 of the Flood Control Act of 1962 (76 Stat. 
     1193) is repealed effective on the date, as determined by the 
     Secretary of Energy, when all Snettisham assets have been 
     conveyed to the Authority.
       (10) Effective date of amendments.--As of the later of the 
     two dates determined in paragraphs (8) and (9), section 
     302(a) of the Department of Energy Organization Act (42 
     U.S.C. 7152(a)) is amended--
       (A) in paragraph (1), by striking subparagraph (C) and 
     redesignating subparagraphs (D), (E), and (F) as 
     subparagraphs (C), (D), and (E), respectively; and
       (B) in paragraph (2), by striking ``and the Alaska Power 
     Administration'' and inserting ``and'' after ``Southwestern 
     Power Administration,''.
       (11) Repeal of act of august 9, 1955.--The Act of August 9, 
     1955, concerning water resources investigations in Alaska (69 
     Stat. 618), is repealed.
       (12) Disclaimer.--The sales of Eklutna and Snettisham under 
     this section are not considered disposal of Federal surplus 
     property under the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 484) or the Act of October 3, 
     1944, popularly referred to as the ``Surplus Property Act of 
     1944'' (50 U.S.C. App. 1622).

     SEC. 206. TERMINATION OF TRADE ADJUSTMENT ASSISTANCE.

       (a) In General.--Section 285 of the Trade Act of 1974 (19 
     U.S.C. 2271 preceding note) is amended by striking subsection 
     (c) and inserting the following:
       ``(c) This chapter, other than sections 282 and 283, shall 
     terminate on September 30, 1995.
       ``(d)(1) Except as provided in paragraph (2), chapters 2 
     and 3 shall terminate on September 30, 1995.
       ``(2) If, on or before September 30, 1995, a worker--
       ``(A) is eligible to apply for assistance under subchapter 
     D of chapter 2; and
       ``(B) is otherwise eligible to receive assistance in 
     accordance with section 250,

     such worker shall continue to be eligible to receive such 
     assistance for any week after such date for which the worker 
     meets the eligibility requirements of such section.''.
       (b) Conforming Amendments.--
       (1) Section 236(a)(2)(A) of the Trade Act of 1974 (19 
     U.S.C. 2296(a)(2)(A)) is amended by striking ``, except that 
     for fiscal year 1997, the total amount of payments made under 
     paragraph (1) shall not exceed $70,000,000''.
       (2) Section 245 of such Act (19 U.S.C. 2317) is amended--
       (A) in subsection (a), by striking ``1995, 1996, 1997, and 
     1998'' and inserting ``and 1995''; and
       (B) in subsection (b), by striking ``1996, 1997, and 1998'' 
     and inserting ``1996, and 1997''.

     SEC. 207. CONSOLIDATION OF SOCIAL SERVICE PROGRAMS.

       (a) At-Risk Child Care Program Merged into Program of Block 
     Grants to States for Social Services.--
       (1) Consolidation of services.--Section 2002(a)(2)(A) of 
     the Social Security Act (42 U.S.C. 1397a(a)(2)(A)) is amended 
     by inserting ``(including services that could have been 
     provided under section 402(i), as in effect immediately 
     before the date of enactment of the Servicepersons 
     Readjustment Act of 1995'' after ``child care services''.
       (2) Consolidation of funding.--Section 2003(c) of such Act 
     (42 U.S.C. 1397b(c)) is amended--
       (A) in paragraph (4), by striking ``and'';
       (B) in paragraph (5), by striking ``each fiscal year after 
     fiscal year 1989.'' and inserting ``the fiscal years 1990, 
     1991, 1992, 1993, and 1994; and''; and
       (C) by adding at the end the following:
       ``(6) $2,976,000,000 for each of the fiscal years 1995, 
     1996, 1997, 1998, and 1999.''.
       (b) Certain Discretionary Social Services Programs Merged 
     into Program of Block Grants to States for Social Services 
     But Left Discretionary.--
       (1) Consolidation of services.--Section 2002 of such Act 
     (42 U.S.C. 1397a) is amended--
       (A) in subsection (a), by adding at the end the following:

[[Page S 15242]]

       ``(3) In addition to payments pursuant to paragraph (1), 
     the Secretary may make payments to a State under this title 
     for a fiscal year in an amount equal to its additional 
     allotment for such fiscal year, to be used by such State for 
     services directed at the goals set forth in section 2001, 
     subject to the requirements of this title.
       ``(4) For purposes of paragraph (3)--
       ``(A) services which are directed at the goals set forth in 
     section 2001 include services that could have been provided 
     under--
       ``(i) the Community Services Block Grant Act;
       ``(ii) the Child Care and Development Block Grant Act of 
     1990;
       ``(iii) title III or VII of the Older Americans Act of 
     1965; or
       ``(iv) the State Dependent Care Development Grants Act,

     as in effect immediately before the date of enactment of the 
     Servicepersons Readjustment Act of 1995; and
       ``(B) expenditures for such services may include 
     expenditures described in paragraph (2)(B).''; and
       (B) in each of subsections (b), (c), and (d), by inserting 
     ``or additional allotment'' after ``allotment'' each place 
     such term appears.
       (2) Consolidation of funding.--Section 2003 of such Act (42 
     U.S.C. 1397b) is amended by adding at the end the following:
       ``(d) The additional allotment for any fiscal year to each 
     State shall be determined in the same manner in which the 
     allotment for the fiscal year is determined for the State 
     under the preceding subsections of this section, except that, 
     in making such determination the following amounts shall be 
     used in lieu of the amount specified in subsection (c):
       ``(1) $2,298,000,000 for the fiscal year 1995.
       ``(2) $2,360,000,000 for the fiscal year 1996.
       ``(3) $2,424,000,000 for the fiscal year 1997.
       ``(4) $2,490,000,000 for the fiscal year 1998.
       ``(5) $2,557,000,000 for the fiscal year 1999.''.
       (c) Conforming Amendments and Repeals.--
       (1) Community services block grant act.--The Community 
     Services Block Grant Act (42 U.S.C. 9901 et seq.) is hereby 
     repealed.
       (2) Child care and development block grant act of 1990.--
     The Child Care and Development Block Grant Act of 1990 (42 
     U.S.C. 9858 et seq.) is hereby repealed.
       (3) Older americans act of 1965.--The Older Americans Act 
     of 1965 (42 U.S.C. 3001 et seq.) is amended by striking 
     titles III and VII.
       (4) State dependent care development grants act.--The State 
     Dependent Care Development Grants Act (42 U.S.C. 9871 et 
     seq.) is hereby repealed.
       (5) At-risk child care program.--
       (A) Program authority.--Section 402 of the Social Security 
     Act (42 U.S.C. 602) is amended--
       (i) in subsection (g)(7), by striking ``and subsection 
     (i)''; and
       (ii) by striking subsection (i).
       (B) Funding provisions.--Section 403 of the Social Security 
     Act (42 U.S.C. 603) is amended by striking subsection (n).
       (d) Effective Date.--The amendments and repeals made by 
     this section shall take effect on October 1, 1995.

     SEC. 208. FEDERAL CLEARINGHOUSE ON DEATH INFORMATION.

       (a) Clearinghouse Designation.--The heading for section 
     205(r) of the Social Security Act is amended to read as 
     follows: ``Clearinghouse on Death Information''.
       (b) Acquisition of Disclosable Death Information From 
     States.--
       (1) Section 205(r)(1)(A) of the Social Security Act is 
     amended by striking ``to furnish the Secretary periodically 
     with'' and inserting ``to furnish periodically to the 
     Secretary, for use in carrying out subparagraph (B) and 
     paragraphs (3) and (4),''.
       (2)(A) Notwithstanding clause (ii) of section 6103(d)(4)(B) 
     of the Internal Revenue Code of 1986 (as added by section 
     13444(a) of the Omnibus Budget Reconciliation Act of 1993 
     (Public Law 103-66)), in order for a contract requiring a 
     State to furnish the Secretary of Health and Human Services 
     information concerning individuals with respect to whom death 
     certificates (or equivalent documents maintained by the State 
     or any subdivision thereof) have been officially filed with 
     it to meet the requirements of such section 6103(d)(4)(B), 
     such contract shall authorize the Secretary to use such 
     information and to redisclose such information to any Federal 
     agency or any agency of a State or political subdivision in 
     accordance with section 205(r) of the Social Security Act.
       (B) The provisions of subparagraph (A) of this paragraph 
     and, notwithstanding subparagraph (C) of section 6103(d)(4) 
     of the Internal Revenue Code of 1986 (as added by section 
     13444(a) of the Omnibus Budget Reconciliation Act of 1993 
     (Public Law 103-66)), the provisions of subparagraphs (A) and 
     (B) of such section 6103(d)(4) shall apply to all States, 
     regardless of whether they were, on July 1, 1993, pursuant to 
     a contract, furnishing the Secretary of Health and Human 
     Services information concerning individuals with respect to 
     whom death certificates (or equivalent documents maintained 
     by the State or any subdivision thereof) have been officially 
     filed with it.
       (C) Subparagraphs (A) and (B) of this paragraph shall take 
     effect at the same time as the amendment made by section 
     13444(a) of the Omnibus Budget Reconciliation Act of 1993 
     takes effect.
       (D) For the purpose of applying the special rule contained 
     in section 13444(b)(2) of the Omnibus Budget Reconciliation 
     Act of 1993, the reference in such section to section 
     6103(d)(4)(B) of the Internal Revenue Code of 1986 shall be 
     deemed to include a reference to subparagraph (A) of this 
     paragraph.
       (c) Payment to States for Death Information.--Section 
     205(r)(2) of the Social Security Act is amended--
       (1) by striking ``the reasonable costs'' and inserting ``a 
     reasonable amount''; and
       (2) by striking ``transcribing and transmitting'' and 
     inserting ``furnishing''.
       (d) Fee for Clearinghouse Information.--
       (1) Section 205(r)(3) of the Social Security Act is amended 
     by striking out ``if'' and all that follows, and inserting 
     ``, provided that such agency agrees to pay the fees set by 
     the Secretary pursuant to paragraph (8).''.
       (2) Section 205(r)(4) of the Social Security Act is 
     amended--
       (A) by inserting ``and political subdivisions'' after 
     ``States'' the first place such term appears;
       (B) by striking ``the States'' and inserting ``any State, 
     political subdivision, or combination thereof''; and
       (C) by striking ``if'' and all that follows and inserting 
     ``provided such States and political subdivisions agree to 
     pay the fees set by the Secretary pursuant to paragraph 
     (8).''.
       (3) Section 205(r) of the Social Security Act is amended by 
     adding at the end a new paragraph as follows: ``(8) The 
     Secretary shall establish fees for the disclosure of 
     information pursuant to this subsection. Such fees shall be 
     in amounts sufficient to cover all costs (including indirect 
     costs) associated with the Secretary's responsibilities under 
     this subsection. Fees collected pursuant to this paragraph 
     shall remain available, without fiscal year limitation, to 
     the Secretary to cover the administrative costs of carrying 
     out this subsection.''.
       (e) Technical Assistance.--Section 205(r) of the Social 
     Security Act is amended by adding at the end (after the 
     paragraph added by subsection (d)(3)) the following new 
     paragraph:
       ``(9) The Secretary may provide to any Federal or State 
     agency that provides Federally funded benefits, upon the 
     request of such agency, technical assistance on the effective 
     collection, dissemination, and use of death information 
     available under this subsection for the purpose of ensuring 
     that such benefits are not erroneously paid to deceased 
     individuals.''.
       (f) Technical Amendment.--Section 205(r) of the Social 
     Security Act is amended by adding at the end (after the 
     paragraph added by subsection (e)) the following new 
     paragraph:
       ``(10) For purposes of this subsection, the term `Federally 
     funded benefit' means any payment funded in whole or in part 
     by the Federal Government.''.
       (g) Effective Date.--Except as otherwise provided, the 
     amendments made by this section shall take effect upon their 
     enactment.

     SEC. 209. SECTION 235 MORTGAGE REFINANCING.

       Section 235(r) of the National Housing Act is amended--
       (1) in paragraph (2)(C), by inserting after ``refinanced'' 
     the following: ``, plus the costs incurred in connection with 
     the refinancing as described in paragraph (4)(B) to the 
     extent that the amount for those costs is not otherwise 
     included in the interest rate as permitted by subparagraph 
     (E) or paid by the Secretary as authorized by paragraph 
     (4)(B)'';
       (2) in paragraph (4)--
       (A) in the matter preceding subparagraph (A), by inserting 
     after ``otherwise)'' the following: ``and the mortgagee (with 
     respect to the amount described in subparagraph (A))''; and
       (B) in subparagraph (A), by inserting after ``mortgagor'' 
     the following: ``and the mortgagee''; and
       (3) by amending paragraph (5) to read as follows:
       ``(5) The Secretary shall use amounts of budget authority 
     recaptured from assistance payments contracts relating to 
     mortgages that are being refinanced for assistance payments 
     contracts with respect to mortgages insured under this 
     subsection. The Secretary may also make such recaptured 
     amounts available for incentives under paragraph (4)(A) and 
     the costs incurred in connection with the refinancing under 
     paragraph (4)(B). For purposes of subsection (c)(3)(A), the 
     amount of recaptured budget authority that the Secretary 
     commits for assistance payments contracts relating to 
     mortgages insured under this subsection and for amounts paid 
     under paragraph (4) shall not be construed as unused.''.

     SEC. 210. HUD MULTIFAMILY HOUSING DISPOSITION PROCESS.

       (a) Findings.--The Congress finds that--
       (1) the portfolio of multifamily housing project mortgages 
     insured by the FHA is severely troubled and at risk of 
     default, requiring the Secretary to increase loss reserves 
     from $5,500,000,000 in 1991 to $11,900,000,000 in 1992 to 
     cover estimated future losses;
       (2) the inventory of multifamily housing projects owned by 
     the Secretary of Housing and Urban Development has more than 
     tripled since 1989, and, by the end of 1993, may exceed 
     75,000 units;
       (3) the cost to the Federal Government of owning and 
     maintaining multifamily housing projects escalated to 
     approximately $250,000,000 in fiscal year 1992;
       (4) the inventory of multifamily housing projects subject 
     to mortgages held by the Secretary has increased 
     dramatically, to 

[[Page S 15243]]
     more than 2,400 mortgages, and approximately half of these mortgages, 
     with over 230,000 units, are delinquent;
       (5) the inventory of insured and formerly insured 
     multifamily housing projects is rapidly deteriorating, 
     endangering tenants and neighborhoods;
       (6) over 5 million families today have a critical need for 
     housing that is affordable and habitable; and
       (7) the current statutory framework governing the 
     disposition of multifamily housing projects effectively 
     impedes the Government's ability to dispose of properties, 
     protect tenants, and ensure that projects are maintained over 
     time.
       (b) Management and Disposition of Multifamily Housing 
     Projects.--Section 203 of the Housing and Community 
     Development Amendments of 1978 (12 U.S.C. 1701z-11) is 
     amended to read as follows:

     ``SEC. 203. MANAGEMENT AND DISPOSITION OF MULTIFAMILY HOUSING 
                   PROJECTS.

       ``(a) Goals.--The Secretary of Housing and Urban 
     Development (in this section referred to as the `Secretary') 
     shall manage or dispose of multifamily housing projects that 
     are owned by the Secretary or that are subject to a mortgage 
     held by the Secretary in a manner that--
       ``(1) is consistent with the National Housing Act and this 
     section;
       ``(2) will protect the financial interests of the Federal 
     Government; and
       ``(3) will, in the least costly fashion among reasonable 
     available alternatives, further the goals of--
       ``(A) preserving housing so that it can remain available to 
     and affordable by low-income persons;
       ``(B) preserving and revitalizing residential 
     neighborhoods;
       ``(C) maintaining existing housing stock in a decent, safe, 
     and sanitary condition;
       ``(D) minimizing the involuntary displacement of tenants;
       ``(E) maintaining housing for the purpose of providing 
     rental housing, cooperative housing, and homeownership 
     opportunities for low-income persons; and
       ``(F) minimizing the need to demolish multifamily housing 
     projects.

     The Secretary, in determining the manner in which a project 
     is to be managed or disposed of, may balance competing goals 
     relating to individual projects in a manner that will further 
     the purposes of this section.
       ``(b) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Multifamily housing project.--The term `multifamily 
     housing project' means any multifamily rental housing project 
     which is, or prior to acquisition by the Secretary was, 
     assisted or insured under the National Housing Act, or was 
     subject to a loan under section 202 of the Housing Act of 
     1959.
       ``(2) Subsidized project.--The term `subsidized project' 
     means a multifamily housing project receiving any of the 
     following types of assistance immediately prior to the 
     assignment of the mortgage on such project to, or the 
     acquisition of such mortgage by, the Secretary:
       ``(A) Below market interest rate mortgage insurance under 
     the proviso of section 221(d)(5) of the National Housing Act.
       ``(B) Interest reduction payments made in connection with 
     mortgages insured under section 236 of the National Housing 
     Act.
       ``(C) Direct loans made under section 202 of the Housing 
     Act of 1959.
       ``(D) Assistance in the form of--
       ``(i) rent supplement payments under section 101 of the 
     Housing and Urban Development Act of 1965;
       ``(ii) housing assistance payments made under section 23 of 
     the United States Housing Act of 1937 (as in effect before 
     January 1, 1975); or
       ``(iii) housing assistance payments made under section 8 of 
     the United States Housing Act of 1937 (excluding payments 
     made for tenant-based assistance under section 8),

     if (except for purposes of section 183(c) of the Housing and 
     Community Development Act of 1987) such assistance payments 
     are made to more than 50 percent of the units in the project.
       ``(3) Formerly subsidized project.--The term `formerly 
     subsidized project' means a multifamily housing project owned 
     by the Secretary that was a subsidized project immediately 
     prior to its acquisition by the Secretary.
       ``(4) Unsubsidized project.--The term `unsubsidized 
     project' means a multifamily housing project owned by the 
     Secretary that is not a subsidized project or a formerly 
     subsidized project.
       ``(c) Management or Disposition of Property.--
       ``(1) Disposition to purchasers.--The Secretary is 
     authorized, in carrying out this section, to dispose of a 
     multifamily housing project owned by the Secretary on a 
     negotiated, competitive bid, or other basis, on such terms as 
     the Secretary deems appropriate considering the low-income 
     character of the project and the requirements of subsection 
     (a), to a purchaser determined by the Secretary to be capable 
     of--
       ``(A) satisfying the conditions of the disposition;
       ``(B) implementing a sound financial and physical 
     management program that is designed to enable the project to 
     meet anticipated operating and repair expenses to ensure that 
     the project will remain in decent, safe, and sanitary 
     condition;
       ``(C) responding to the needs of the tenants and working 
     cooperatively with tenant organizations;
       ``(D) providing adequate organizational staff and financial 
     resources to the project; and
       ``(E) meeting such other requirements as the Secretary may 
     determine.
       ``(2) Contracting for management services.--The Secretary 
     is authorized, in carrying out this section--
       ``(A) to contract for management services for a multifamily 
     housing project that is owned by the Secretary (or for which 
     the Secretary is mortgagee in possession), on a negotiated, 
     competitive bid, or other basis at a price determined by the 
     Secretary to be reasonable, with a manager the Secretary has 
     determined is capable of--
       ``(i) implementing a sound financial and physical 
     management program that is designed to enable the project to 
     meet anticipated operating and maintenance expenses to ensure 
     that the project will remain in decent, safe, and sanitary 
     condition;
       ``(ii) responding to the needs of the tenants and working 
     cooperatively with tenant organizations;
       ``(iii) providing adequate organizational, staff, and other 
     resources to implement a management program determined by the 
     Secretary; and
       ``(iv) meeting such other requirements as the Secretary may 
     determine; and
       ``(B) to require the owner of a multifamily housing project 
     that is subject to a mortgage held by the Secretary to 
     contract for management services for the project in the 
     manner described in subparagraph (A).
       ``(d) Maintenance of Housing Projects.--
       ``(1) Housing projects owned by the secretary.--In the case 
     of multifamily housing projects that are owned by the 
     Secretary (or for which the Secretary is mortgagee in 
     possession), the Secretary shall--
       ``(A) to the greatest extent possible, maintain all such 
     occupied projects in a decent, safe, and sanitary condition;
       ``(B) to the greatest extent possible, maintain full 
     occupancy in all such projects; and
       ``(C) maintain all such projects for purposes of providing 
     rental or cooperative housing.
       ``(2) Housing projects subject to a mortgage held by the 
     secretary.--In the case of any multifamily housing project 
     that is subject to a mortgage held by the Secretary, the 
     Secretary shall require the owner of the project to carry out 
     the requirements of paragraph (1).
       ``(e) Required Assistance.--In carrying out the goal 
     specified in subsection (a)(3)(A), the Secretary shall take 
     not less than one of the following actions:
       ``(1) Contract with owner.--Enter into contracts under 
     section 8 of the United States Housing Act of 1937, to the 
     extent budget authority is available, with owners of 
     multifamily housing projects that are acquired by a purchaser 
     other than the Secretary at foreclosure or after sale by the 
     Secretary.
       ``(A) Subsidized or formerly subsidized projects receiving 
     certain assistance.--In the case of a subsidized or formerly 
     subsidized project referred to in subparagraphs (A) through 
     (C) of subsection (b)(2)--
       ``(i) the contract shall be sufficient to assist at least 
     all units covered by an assistance contract under any of the 
     authorities referred to in subsection (b)(2)(D) before 
     acquisition, unless the Secretary acts pursuant to the 
     provisions of subparagraph (C);
       ``(ii) in the case of units requiring project-based rental 
     assistance pursuant to this paragraph that are occupied by 
     families who are not eligible for assistance under section 8, 
     a contract under this subparagraph shall also provide that 
     when a vacancy occurs, the owner shall lease the available 
     unit to a family eligible for assistance under section 8; and
       ``(iii) the Secretary shall take actions to ensure the 
     availability and affordability, as defined in paragraph 
     (3)(B), for the remaining useful life of the project, as 
     defined by the Secretary, of any unit located in any project 
     referred to in subparagraphs (A) through (C) of subsection 
     (b)(2) that does not otherwise receive project-based 
     assistance under this subparagraph. To carry out this clause, 
     the Secretary may require purchasers to establish use or rent 
     restrictions maintaining affordability, as defined in 
     paragraph (3)(B).
       ``(B) Subsidized or formerly subsidized projects receiving 
     other assistance.--In the case of a subsidized or formerly 
     subsidized project referred to in subsection (b)(2)(D)--
       ``(i) the contract shall be sufficient to assist at least 
     all units in the project that are covered, or were covered 
     immediately before foreclosure on or acquisition of the 
     project by the Secretary, by an assistance contract under any 
     of the authorities referred to in such subsection, unless the 
     Secretary acts pursuant to provisions of subparagraph (C); 
     and
       ``(ii) in the case of units requiring project-based rental 
     assistance pursuant to this paragraph that are occupied by 
     families who are not eligible for assistance under section 8, 
     a contract under this paragraph shall also provide that when 
     a vacancy occurs, the owner shall lease the available unit to 
     a family eligible for assistance under section 8.
       ``(C) Exceptions to subparagraphs (a) and (b).--In lieu of 
     providing project-based assistance under subparagraph (A) or 
     (B), the Secretary may require certain units in 

[[Page S 15244]]
     unsubsidized projects to contain use restrictions providing that such 
     units will be available to and affordable by very low-income 
     families for the remaining useful life of the project, as 
     defined by the Secretary, if--
       ``(i) the Secretary matches any reduction in units 
     otherwise required to be assisted with project-based 
     assistance under subparagraph (A) or (B) with at least an 
     equivalent increase in units made affordable to very low-
     income persons within unsubsidized projects;
       ``(ii) low-income tenants residing in units otherwise 
     requiring project-based assistance under subparagraph (A) or 
     (B) upon disposition receive section 8 tenant-based 
     assistance; and
       ``(iii) the units described in clause (i) are located 
     within the same market area.
       ``(D) Contract requirements for unsubsidized projects.--
     Notwithstanding actions taken pursuant to subparagraph (C), 
     in unsubsidized projects, the contract shall at least be 
     sufficient to provide--
       ``(i) project-based rental assistance for all units that 
     are covered or were covered immediately before foreclosure or 
     acquisition by an assistance contract under--

       ``(I) section 8(b)(2) of the United States Housing Act of 
     1937 (as such section existed before October 1, 1983) (new 
     construction and substantial rehabilitation); section 8(b) of 
     such Act (property disposition); section 8(d)(2) of such Act 
     (project-based certificates); section 8(e)(2) of such Act 
     (moderate rehabilitation); section 23 of such Act (as in 
     effect before January 1, 1975); or section 101 of the Housing 
     and Urban Development Act of 1965 (rent supplements); or
       ``(II) section 8 of the United States Housing Act of 1937, 
     following conversion from section 101 of the Housing and 
     Urban Development Act of 1965; and

       ``(ii) tenant-based assistance under section 8 of the 
     United States Housing Act of 1937 for tenants currently 
     residing in units that were covered by an assistance contract 
     under the Loan Management Set-Aside program under section 
     8(b) of the United States Housing Act of 1937 immediately 
     before foreclosure or acquisition of the project by the 
     Secretary.
       ``(2) Annual contribution contracts.--In the case of 
     multifamily housing projects that are acquired by a purchaser 
     other than the Secretary at foreclosure or after sale by the 
     Secretary, enter into annual contribution contracts with 
     public housing agencies to provide tenant-based assistance 
     under section 8 of the United States Housing Act of 1937 to 
     all low-income families who are eligible for such assistance 
     on the date that the project is acquired by the purchaser. 
     The Secretary shall take action under this paragraph only 
     after making a determination that there is available in the 
     area an adequate supply of habitable affordable housing for 
     low-income families. Actions taken pursuant to this paragraph 
     may be taken in connection with not more than 10 percent of 
     the aggregate number of units in subsidized or formerly 
     subsidized projects disposed of by the Secretary annually.
       ``(3) Other assistance.--
       ``(A) In general.--In accordance with the authority 
     provided under the National Housing Act, reduce the selling 
     price, apply use or rent restrictions on certain units, or 
     provide other financial assistance to the owners of 
     multifamily housing projects that are acquired by a purchaser 
     other than the Secretary at foreclosure, or after sale by the 
     Secretary, on terms which will ensure that--
       ``(i) at least those units otherwise required to receive 
     project-based section 8 assistance pursuant to subparagraphs 
     (A), (B), or (D) of paragraph (1) are available to and 
     affordable by low-income persons; and
       ``(ii) for the remaining useful life of the project, as 
     defined by the Secretary, there shall be in force such use or 
     rent restrictions as the Secretary may prescribe.
       ``(B) Definition.--A unit shall be considered affordable 
     under this paragraph if--
       ``(i) for very low-income tenants, the rent for such unit 
     does not exceed 30 percent of 50 percent of the area median 
     income, as determined by the Secretary, with adjustments for 
     family size; and
       ``(ii) for low-income tenants other than very low-income 
     tenants, the rent for such unit does not exceed 30 percent of 
     80 percent of the area median income, as determined by the 
     Secretary, with adjustments for family size.
       ``(C) Very low-income tenants.--The Secretary shall provide 
     assistance under section 8 of the United States Housing Act 
     of 1937 to any very low-income tenant currently residing in a 
     unit otherwise required to receive project-based assistance 
     under section 8, pursuant to subparagraph (A), (B), or (D) of 
     paragraph (1), if the rents charged such tenants as a result 
     of actions taken pursuant to this paragraph exceed the amount 
     payable as rent under section 3(a) of the United States 
     Housing Act of 1937.
       ``(4) Transfer for use under other programs of the 
     secretary.--
       ``(A) In general.--Enter into an agreement providing for 
     the transfer of a multifamily housing project--
       ``(i) to a public housing agency for use of the project as 
     public housing; or
       ``(ii) to an owner or another appropriate entity for use of 
     the project under section 202 of the Housing Act of 1959 or 
     under section 811 of the Cranston-Gonzalez National 
     Affordable Housing Act.
       ``(B) Requirements for agreement.--The agreement described 
     in subparagraph (A) shall--
       ``(i) contain such terms, conditions, and limitations as 
     the Secretary determines appropriate, including requirements 
     to assure use of the project under the public housing, 
     section 202, and section 811 programs; and
       ``(ii) ensure that no current tenant will be displaced as a 
     result of actions taken under this paragraph.
       ``(f) Other Assistance.--In addition to the actions 
     authorized by subsection (e), the Secretary may take any of 
     the following actions:
       ``(1) Short-term loans.--Provide short-term loans to 
     facilitate the sale of multifamily housing projects to 
     nonprofit organizations or to public agencies if--
       ``(A) authority for such loans is provided in advance in an 
     appropriations Act;
       ``(B) such loans are for a term of not more than 5 years;
       ``(C) the Secretary is presented with satisfactory 
     documentation, evidencing a commitment of permanent financing 
     to replace such short-term loan, from a lender who meets 
     standards set forth by the Secretary; and
       ``(D) the terms of such loans are consistent with 
     prevailing practices in the marketplace or the provision of 
     such loans results in no cost to the Government, as defined 
     in section 502 of the Congressional Budget Act.
       ``(2) Tenant-based assistance.--In connection with projects 
     referred to in subsection (e), make available tenant-based 
     assistance under section 8 of the United States Housing Act 
     of 1937 to very low-income families (as defined in section 
     3(b)(2) of the United States Housing Act of 1937) that do not 
     otherwise qualify for project-based assistance.
       ``(3) Alternative uses.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, and subject to notice to and comment from existing 
     tenants, allow not more than--
       ``(i) 5 percent of the total number of units in multifamily 
     housing projects that are disposed of by the Secretary during 
     any 1-year period to be made available for uses other than 
     rental or cooperative uses, including low-income 
     homeownership opportunities, or in any particular project, 
     community space, office space for tenant or housing-related 
     service providers or security programs, or small business 
     uses, if such uses benefit the tenants of the project; and
       ``(ii) 5 percent of the total number of units in 
     multifamily housing projects that are disposed of by the 
     Secretary during any 1-year period to be used in any manner, 
     if the Secretary and the unit of general local government or 
     area-wide governing body determine that such use will further 
     fair housing, community development, or neighborhood 
     revitalization goals.
       ``(B) Displacement protection.--The Secretary shall make 
     available tenant-based rental assistance under section 8 of 
     the United States Housing Act of 1937 to any tenant displaced 
     as a result of actions taken by the Secretary pursuant to 
     subparagraph (A), and the Secretary shall take such actions 
     as the Secretary determines necessary to ensure the 
     successful use of any tenant-based assistance.
       ``(g) Authorization of Use or Rent Restrictions in 
     Unsubsidized Projects.--In carrying out the goals specified 
     in subsection (a), the Secretary may require certain units in 
     unsubsidized projects to contain use or rent restrictions 
     providing that such units will be available to and affordable 
     by very low-income persons for the remaining useful life of 
     the property, as defined by the Secretary.
       ``(h) Contract Requirements.--
       ``(1) Contract term.--
       ``(A) In general.--Contracts for project-based rental 
     assistance under section 8 of the United States Housing Act 
     of 1937 provided pursuant to this section shall be for a term 
     of not more than 15 years; and
       ``(B) Contract term of less than 15 years.--Notwithstanding 
     subparagraph (A), to the extent that units receive project-
     based assistance for a contract term of less than 15 years, 
     the Secretary shall require that rents charged to tenants for 
     such units not exceed the amount payable for rent under 
     section 3(a) of the United States Housing Act of 1937 for a 
     period of at least 15 years.
       ``(2) Contract rent.--
       ``(A) In general.--The Secretary shall set contract rents 
     for section 8 project-based rental contracts issued under 
     this section at levels that, in conjunction with other 
     resources available to the purchaser, provide for the 
     necessary costs of rehabilitation of such project and do not 
     exceed the percentage of the existing housing fair market 
     rents for the area (as determined by the Secretary under 
     section 8(c) of the United States Housing Act of 1937) as the 
     Secretary may prescribe.
       ``(B) Up-front grants and loans.--If such an approach is 
     determined to be more cost-effective, the Secretary may 
     utilize the budget authority provided for project-based 
     section 8 contracts issued under this section to--
       ``(i) provide project-based section 8 rental assistance; 
     and
       ``(ii)(I) provide up-front grants for the necessary cost of 
     rehabilitation; or
       ``(II) pay for any cost to the Government, as defined in 
     section 502 of the Congressional Budget Act, for loans made 
     pursuant to subsection (f)(1).
       ``(i) Disposition Plan.--
       ``(1) In general.--Prior to the sale of a multifamily 
     housing project that is owned by the Secretary, the Secretary 
     shall develop 

[[Page S 15245]]
     a disposition plan for the project that specifies the minimum terms and 
     conditions of the Secretary for disposition of the project, 
     the initial sales price that is acceptable to the Secretary, 
     and the assistance that the Secretary plans to make available 
     to a prospective purchaser in accordance with this section. 
     The initial sales price shall reflect the intended use of the 
     property after sale.
       ``(2) Community and tenant input into disposition plans and 
     sales.--
       ``(A) In general.--In carrying out this section, the 
     Secretary shall develop procedures to obtain appropriate and 
     timely input into disposition plans from officials of the 
     unit of general local government affected, the community in 
     which the project is situated, and the tenants of the 
     project.
       ``(B) Tenant organizations.--The Secretary shall develop 
     procedures to facilitate, where feasible and appropriate, the 
     sale of multifamily housing projects to existing tenant 
     organizations with demonstrated capacity or to public or 
     nonprofit entities which represent or are affiliated with 
     existing tenant organizations.
       ``(C) Technical assistance.--
       ``(i) Use of funds.--To carry out the procedures developed 
     under subparagraphs (A) and (B), the Secretary is authorized 
     to provide technical assistance, directly or indirectly, and 
     to use amounts appropriated for technical assistance under 
     the Emergency Low Income Housing Preservation Act of 1987, 
     the Low-Income Housing Preservation and Resident 
     Homeownership Act of 1990, subtitle B of title IV of the 
     Cranston-Gonzalez National Affordable Housing Act, or under 
     this section for the provision of technical assistance under 
     this section.
       ``(ii) Source of funds.--Recipients of technical assistance 
     funding under the Emergency Low Income Housing Preservation 
     Act of 1987, the Low-Income Housing Preservation and Resident 
     Homeownership Act of 1990, subtitle B of title IV of the 
     Cranston-Gonzalez National Affordable Housing Act, or under 
     this section shall be permitted to provide technical 
     assistance to the extent of such funding under any of such 
     programs or under this section, notwithstanding the source of 
     funding.
       ``(j) Right of First Refusal.--
       ``(1) Procedure.--
       ``(A) Notification by secretary of the acquisition of 
     title.--Not later than 30 days after acquiring title to a 
     project, the Secretary shall notify the unit of general local 
     government and the State agency or agencies designated by the 
     Governor of the acquisition of such title.
       ``(B) Expression of interest.--Not later than 45 days after 
     receiving notification from the Secretary under subparagraph 
     (A), the unit of general local government or designated State 
     agency may submit to the Secretary a preliminary expression 
     of interest in the project. The Secretary may take such 
     actions as may be necessary to require the unit of general 
     local government or designated State agency to substantiate 
     such interest.
       ``(C) Timely expression of interest.--If the unit of 
     general local government or designated State agency has 
     expressed interest in the project before the expiration of 
     the 45-day period referred to in subparagraph (B), and has 
     substantiated such interest if requested, the Secretary, upon 
     approval of a disposition plan for a project, shall notify 
     the unit of general local government and designated State 
     agency of the terms and conditions of the disposition plan 
     and give the unit of general local government or designated 
     State agency not more than 90 days after the date of such 
     notification to make an offer to purchase the project.
       ``(D) No timely expression of interest.--If the unit of 
     general local government or designated State agency does not 
     express interest before the expiration of the 45-day period 
     referred to in subparagraph (B), or does not substantiate an 
     expressed interest if requested, the Secretary, upon approval 
     of a disposition plan, may offer the project for sale to any 
     interested person or entity.
       ``(2) Acceptance of offers.--Where the Secretary has given 
     the unit of general local government or designated State 
     agency 90 days to make an offer to purchase the project, the 
     Secretary shall accept an offer that complies with the terms 
     and conditions of the disposition plan. The Secretary may 
     accept an offer that does not comply with the terms and 
     conditions of the disposition plan if the Secretary 
     determines that the offer will further the goals specified in 
     subsection (a) by actions that include extension of the 
     duration of low-income affordability restrictions or 
     otherwise restructuring the transaction in a manner that 
     enhances the long-term affordability for low-income persons. 
     The Secretary shall, in particular, have discretion to reduce 
     the initial sales price in exchange for the extension of low-
     income affordability restrictions beyond the period of 
     assistance contemplated by the attachment of assistance 
     pursuant to subsection (e). If the Secretary and the unit of 
     general local government or designated State agency cannot 
     reach agreement within 90 days, the Secretary may offer the 
     project for sale to the general public.
       ``(3) Purchase by unit of general local government or 
     designated state agency.--Notwithstanding any other provision 
     of law, a unit of general local government (including a 
     public housing agency) or designated State agency may 
     purchase a subsidized or formerly subsidized project in 
     accordance with this subsection.
       ``(4) Applicability.--This subsection shall apply to 
     projects that are acquired on or after the effective date of 
     this subsection. With respect to projects acquired before 
     such effective date, the Secretary may apply--
       ``(A) the requirements of paragraphs (2) and (3) of section 
     203(e) as such paragraphs existed immediately before the 
     effective date of this subsection; or
       ``(B) the requirements of paragraphs (1) and (2) of this 
     subsection, if the Secretary gives the unit of general local 
     government or designated State agency--
       ``(i) 45 days to express interest in the project; and
       ``(ii) if the unit of general local government or 
     designated State agency expresses interest in the project 
     before the expiration of the 45-day period, and substantiates 
     such interest if requested, 90 days from the date of 
     notification of the terms and conditions of the disposition 
     plan to make an offer to purchase the project.
       ``(k) Displacement of Tenants and Relocation Assistance.--
       ``(1) In general.--Whenever tenants will be displaced as a 
     result of the disposition of, or repairs to, a multifamily 
     housing project that is owned by the Secretary (or for which 
     the Secretary is mortgagee in possession), the Secretary 
     shall identify tenants who will be displaced, and shall 
     notify all such tenants of their pending displacement and of 
     any relocation assistance which may be available. In the case 
     of a multifamily housing project that is not owned by the 
     Secretary (and for which the Secretary is not mortgagee in 
     possession), the Secretary shall require the owner of the 
     project to carry out the requirements of this paragraph.
       ``(2) Rights of displaced tenants.--The Secretary shall 
     assure for any such tenant (who continues to meet applicable 
     qualification standards) the right--
       ``(A) to return, whenever possible, to a repaired unit;
       ``(B) to occupy a unit in another multifamily housing 
     project owned by the Secretary;
       ``(C) to obtain housing assistance under the United States 
     Housing Act of 1937; or
       ``(D) to receive any other available relocation assistance 
     as the Secretary determines to be appropriate.
       ``(l) Mortgage and Project Sales.--
       ``(1) In general.--The Secretary may not approve the sale 
     of any loan or mortgage held by the Secretary (including any 
     loan or mortgage owned by the Government National Mortgage 
     Association) on any subsidized project or formerly subsidized 
     project, unless such sale is made as part of a transaction 
     that will ensure that such project will continue to operate 
     at least until the maturity date of such loan or mortgage, in 
     a manner that will provide rental housing on terms at least 
     as advantageous to existing and future tenants as the terms 
     required by the program under which the loan or mortgage was 
     made or insured prior to the assignment of the loan or 
     mortgage on such project to the Secretary.
       ``(2) Sale of certain projects.--The Secretary may not 
     approve the sale of any subsidized project--
       ``(A) that is subject to a mortgage held by the Secretary; 
     or
       ``(B) if the sale transaction involves the provision of any 
     additional subsidy funds by the Secretary or a recasting of 
     the mortgage, unless such sale is made as part of a 
     transaction that will ensure that such project will continue 
     to operate at least until the maturity date of the loan or 
     mortgage, in a manner that will provide rental housing on 
     terms at least as advantageous to existing and future tenants 
     as the terms required by the program under which the loan or 
     mortgage was made or insured prior to the proposed sale of 
     the project.
       ``(3) Mortgage sales to state and local governments.--
     Notwithstanding any provision of law that may require 
     competitive sales or bidding, the Secretary may carry out 
     negotiated sales of subsidized or formerly subsidized 
     mortgages held by the Secretary, without the competitive 
     selection of purchasers or intermediaries, to units of 
     general local government or State agencies, or groups of 
     investors that include at least one such unit of general 
     local government or State agency, if the negotiations are 
     conducted with such agencies, except that--
       ``(A) the terms of any such sale shall include the 
     agreement of the purchasing agency or unit of local 
     government or State agency to act as mortgagee or owner of a 
     beneficial interest in such mortgages, in a manner consistent 
     with maintaining the projects that are subject to such 
     mortgages for occupancy by the general tenant group intended 
     to be served by the applicable mortgage insurance program, 
     including, to the extent the Secretary determines 
     appropriate, authorizing such unit of local government or 
     State agency to enforce the provisions of any regulatory 
     agreement or other program requirements applicable to the 
     related projects; and
       ``(B) the sales prices for such mortgages shall be, in the 
     determination of the Secretary, the best prices that may be 
     obtained for such mortgages from a unit of general local 
     government or State agency, consistent with the expectation 
     and intention that the projects financed will be retained for 
     use under the applicable mortgage insurance program for the 
     life of the initial mortgage insurance contract.
       ``(4) Sale of mortgages covering unsubsidized projects.--
     Notwithstanding any other provision of law, the Secretary may 
     sell mortgages held on unsubsidized 

[[Page S 15246]]
     projects on such terms and conditions as the Secretary may prescribe.
       ``(m) Report to Congress.--Not later than June 1 of each 
     year, the Secretary shall submit to the Committee on Banking, 
     Housing, and Urban Affairs of the Senate and the Committee on 
     Banking, Finance and Urban Affairs of the House of 
     Representatives, a report describing the status of 
     multifamily housing projects owned by or subject to mortgages 
     held by the Secretary, which report shall include--
       ``(1) the name, address, and size of each project;
       ``(2) the nature and date of assignment;
       ``(3) the status of the mortgage;
       ``(4) the physical condition of the project;
       ``(5) an occupancy profile of the project, including the 
     income, family size, and race of current residents as well as 
     the rents paid by such residents;
       ``(6) the proportion of units in a project that are vacant;
       ``(7) the date on which the Secretary became mortgagee in 
     possession;
       ``(8) the date and conditions of any foreclosure sale;
       ``(9) the date of acquisition by the Secretary;
       ``(10) the date and conditions of any property disposition 
     sale;
       ``(11) a description of actions undertaken pursuant to this 
     section, including--
       ``(A) a comparison of results between actions taken after 
     enactment of the Housing and Community Development Act of 
     1993 and actions taken in years prior to such enactment;
       ``(B) a description of any impediments to the disposition 
     or management of multifamily housing projects, together with 
     a recommendation of proposed legislative or regulatory 
     changes designed to ameliorate such impediments;
       ``(C) a description of actions taken to restructure or 
     commence foreclosure on delinquent multifamily mortgages held 
     by the Department; and
       ``(D) a description of actions taken to monitor and prevent 
     the default of multifamily housing mortgages held by the 
     Federal Housing Administration;
       ``(12) a description of any of the functions performed in 
     connection with this section that are contracted out to 
     public or private entities or to States, including--
       ``(A) the costs associated with such delegation;
       ``(B) the implications of contracting out or delegating 
     such functions for current Department field or regional 
     personnel, including anticipated personnel or work load 
     reductions;
       ``(C) necessary oversight required by Department personnel, 
     including anticipated personnel hours devoted to such 
     oversight;
       ``(D) a description of any authority granted to such public 
     or private entities or States in conjunction with the 
     functions that have been delegated or contracted out or that 
     are not otherwise available for use by Department personnel; 
     and
       ``(E) the extent to which such public or private entities 
     or States include tenants of multifamily housing projects in 
     the disposition planning for such projects;
       ``(13) a description of the activities carried out under 
     subsection (j) during the preceding year; and
       ``(14) a description and assessment of the rules, 
     guidelines, and practices governing the Department's 
     management of multifamily housing projects that are owned by 
     the Secretary (or for which the Secretary is mortgagee in 
     possession) as well as the steps that the Secretary has taken 
     or plans to take to improve the management performance of the 
     Department.''.
       (c) Effective Date.--The Secretary of Housing and Urban 
     Development shall, by notice published in the Federal 
     Register, which shall take effect upon publication, establish 
     such requirements as may be necessary to implement the 
     amendments made by this section. The notice shall invite 
     public comments, and the Secretary shall issue final 
     regulations based on the initial notice, taking into account 
     any public comments received.

                          ____________________