[Congressional Record Volume 141, Number 160 (Tuesday, October 17, 1995)]
[Senate]
[Pages S15237-S15246]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      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.

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