[Congressional Record Volume 142, Number 34 (Wednesday, March 13, 1996)]
[Senate]
[Pages S1978-S1989]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

                                 ______


             THE 1996 BALANCED BUDGET DOWN PAYMENT ACT, II

                                 ______


               McCONNELL (AND OTHERS) AMENDMENT NO. 3480

  Mr. DOLE (for Mr. McConnell for himself, Mr. Dole, Mr. Bennett, Mrs. 
Hutchison, Mr. Faircloth, Mr. McCain, Mr. D'Amato, and Mr. Burns) 
proposed an amendment to amendment No. 3466 proposed by Mr. Hatfield to 
the bill (H.R. 3019) making appropriations for fiscal year 1996 to make 
a further downpayment toward a balanced budget, and for other purposes; 
as follows:

       No funds may be provided under this Act until the President 
     certifies to the Committee on Appropriations that:
       (1) The Federation of Bosnia and Herzegovina is in full 
     compliance with Article III, Annex 1A of the Dayton 
     Agreement; and
       (2) Intelligence cooperation between Iranian officials and 
     Bosnian officials has been terminated.
                                 ______


               McCONNELL (AND OTHERS) AMENDMENT NO. 3481

  Mr. DOLE (for Mr. McConnell for himself, Mr. Dole, Mrs. Hutchison, 
Mr. Faircloth, Mr. McCain, Mr. D'Amato, and Mr. Burns) proposed an 
amendment to amendment No. 3466 proposed by Mr. Hatfield to the bill 
H.R. 3019, supra; as follows:

       On page 751, section entitled ``Agency for International 
     Development, Assistance for Eastern Europe and the Baltics,'' 
     insert at the appropriate place, the following: ``Provided 
     further, That funds appropriated by this Act may only be made 
     available for projects, activities, or programs within the 
     sector assigned to American forces of the NATO military 
     Implementation Force (IFOR) and Sarajevo: Provided further, 
     That Priority consideration shall be given to projects and 
     activities designated in the IFOR ``Task Force Eagle civil 
     military project list'': Provided further, That No funds made 
     available under this Act, or any other Act, may be obligated 
     for the purposes of rebuilding or repairing housing in areas 
     where refugees or displaced persons are refused the right of 
     return due to ethnicity or political party affiliation: 
     Provided further, That No funds may be made available 
     under this heading in this Act, or any other Act, to any 
     banking or financial institution in Bosnia and Herzegovina 
     unless such institution agrees in advance, and in writing, 
     to allow the United States General Accounting Office 
     access for the purposes of audit of the use of U.S. 
     assistance: Provided further, That effective ninety days 
     after the date of enactment of this Act, none of the funds 
     appropriated under this heading may be made available for 
     the purposes of economic reconstruction in Bosnia and 
     herzegovina unless the President determines and certifies 
     in writing to the Committees on Appropriations that the 
     bilateral contributions pledged by non-U.S. donors are at 
     least equivalent to the U.S. bilateral contributions made 
     under this Act and in the FY 1995 and FY 1996 Foreign 
     Operations, Export Financing and Related Programs 
     Appropriations bills.
                                 ______


               LAUTENBERG (AND OTHERS) AMENDMENT NO. 3482

  Mr. LAUTENBERG (for himself, Ms. Mikulski, Mr. Daschle, Mr. 
Lieberman, Mr. Kennedy, Mr. Levin, Mr. Wellstone, Mrs. Boxer, and Mr. 
Leahy) proposed an amendment to amendment No. 3466 proposed by Mr. 
Hatfield to the bill H.R. 3019, supra; as follows:

       On page 781, between lines 4 and 5, insert the following:
                   TITLE V--ENVIRONMENTAL INITIATIVES

       CHAPTER 1--RESTORATIONS FOR PRIORITY ENVIRONMENT PROGRAMS

            DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES

                         National Park Service


                 operation of the national park system

       In addition to funds provided elsewhere in this Act, 
     $72,137,000, to remain available until December 31, 1996.

                       Department of Agriculture


                       state and private forestry

       An additional $14,500,000 for the stewardship incentive 
     program.

                          DEPARTMENT OF ENERGY


                          Energy Conservation

       In addition to funds provided elsewhere in this Act, 
     $75,000,000, to remain available until expended.

                       DEPARTMENT OF AGRICULTURE


                     agricultural research service

       An additional $5,000,000 for the Agricultural Research 
     Service for the purpose of carrying out additional research 
     related to a replacement for methyl bromide.

DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT, AND 
                          INDEPENDENT AGENCIES

                    ENVIRONMENTAL PROTECTION AGENCY


                         science and technology

       In addition to funds provided elsewhere in this Act, 
     $37,000,000, to remain available until September 30, 1997.


                 environmental programs and management

       In addition to funds provided elsewhere in this Act, 
     $148,000,000, to remain available until September 30, 1997.


                        buildings and facilities

       In addition to funds provided elsewhere in this Act, 
     $50,000,000, to remain available until expended: Provided, 
     That notwithstanding any other provision of law, EPA is 
     authorized to establish and construct a consolidated research 
     facility at Research Triangle Park, North Carolina, at a 
     maximum total construction cost of $232,000,000, and to 
     obligate such monies as are made available by this Act, and 
     hereafter, for this purpose.


                     hazardous substance superfund

       In addition to funds provided elsewhere in this Act, 
     $50,000,000, to remain available until expended, as 
     authorized by section 517(a) of the Superfund Amendments and 
     Reauthorization Act of 1986 (SARA), as amended by Public Law 
     101-508.


                   state and tribal assistance grants

       In addition to funds provided elsewhere in this Act, 
     $440,000,000, to remain available until expended, of which 
     $365,000,000 shall be for making capitalization grants for 
     State revolving funds to support water infrastructure 
     financing, and $75,000,000 shall be for

[[Page S1979]]

     making grants for the construction of wastewater treatment 
     facilities for municipalities discharging into Boston Harbor 
     in accordance with the terms and conditions specified for 
     Boston Harbor grants in the Conference Report accompanying 
     H.R. 2099: Provided, That of the additional $365,000,000 for 
     capitalization grants for State revolving funds, $175,000,000 
     shall be for drinking water State revolving funds, but if no 
     drinking water State revolving fund legislation is enacted by 
     June 1, 1996, these funds shall immediately be available for 
     making capitalization grants under Title VI of the Federal 
     Water Pollution Control Act, as amended.

                      CHAPTER 2--SPENDING OFFSETS

                     Subchapter A--Debt Collection

     SEC. 5101. SHORT TITLE.

       This subchapter may be cited as the ``Debt Collection 
     Improvement Act of 1996''.

     SEC. 5102. EFFECTIVE DATE.

       Except as otherwise provided in this subchapter, the 
     provisions of this subchapter and the amendments made by this 
     subchapter shall be effective on the date of enactment of 
     this Act.

              PART I--GENERAL DEBT COLLECTION INITIATIVES

                  Subpart A--General Offset Authority

     SEC. 5201. ENHANCEMENT OF ADMINISTRATIVE OFFSET AUTHORITY.

       (a) Section 3701(c) of title 31, United States Code, is 
     amended to read as follows:
       ``(c) In sections 3716 and 3717 of this title, the term 
     `person' does not include an agency of the United States 
     Government, or of a unit of general local government.''.
       (b) Section 3716 of title 31, United States Code, is 
     amended--
       (1) by amending subsection (b) to read as follows:
       ``(b) Before collecting a claim by administrative offset, 
     the head of an executive, legislative, or judicial agency 
     must either--
       ``(1) adopt regulations on collecting by administrative 
     offset promulgated by the Department of Justice, the General 
     Accounting Office and/or the Department of the Treasury 
     without change; or
       ``(2) prescribe independent regulations on collecting by 
     administrative offset consistent with the regulations 
     promulgated under paragraph (1).'';
       (2) by amending subsection (c)(2) to read as follows:
       ``(2) when a statute explicitly prohibits using 
     administrative `offset' or `setoff' to collect the claim or 
     type of claim involved.'';
       (3) by redesignating subsection (c) as subsection (d); and
       (4) by inserting after subsection (b) the following new 
     subsection:
       ``(c)(1)(A) Except as provided in subparagraph (B) or (C), 
     a disbursing official of the Department of the Treasury, the 
     Department of Defense, the United States Postal Service, or 
     any disbursing official of the United States designated by 
     the Secretary of the Treasury, is authorized to offset the 
     amount of a payment which a payment certifying agency has 
     certified to the disbursing official for disbursement by an 
     amount equal to the amount of a claim which a creditor agency 
     has certified to the Secretary of the Treasury pursuant to 
     this subsection.
       ``(B) An agency that designates disbursing officials 
     pursuant to section 3321(c) of this title is not required to 
     certify claims arising out of its operations to the Secretary 
     of the Treasury before such agency's disbursing officials 
     offset such claims.
       ``(C) Payments certified by the Department of Education 
     under a program administered by the Secretary of Education 
     under title IV of the Higher Education Act of 1965, as 
     amended, shall not be subject to offset under this 
     subsection.
       ``(2) Neither the disbursing official nor the payment 
     certifying agency shall be liable--
       ``(A) for the amount of the offset on the basis that the 
     underlying obligation, represented by the payment before the 
     offset was taken, was not satisfied; or
       ``(B) for failure to provide timely notice under paragraph 
     (8).
       ``(3)(A) Notwithstanding any other provision of law 
     (including sections 207 and 1631(d)(1) of the Act of August 
     14, 1935 (42 U.S.C. 407 and 1383(d)(1)), section 413(b) of 
     Public Law 91-173 (30 U.S.C. 923(b)), and section 14 of the 
     Act of August 29, 1935 (45 U.S.C. 231m)), all payments due 
     under the Social Security Act, Part B of the Black Lung 
     Benefits Act, or under any law administered by the Railroad 
     Retirement Board shall be subject to offset under this 
     section.
       ``(B) An amount of $10,000 which a debtor may receive under 
     Federal benefit programs cited under subparagraph (A) within 
     a 12-month period shall be exempt from offset under this 
     subsection. In applying the $10,000 exemption, the disbursing 
     official shall--
       ``(i) apply a prorated amount of the exemption to each 
     periodic benefit payment to be made to the debtor during the 
     applicable 12-month period; and
       ``(ii) consider all benefit payments made during the 
     applicable 12-month period which are exempt from offset under 
     this subsection as part of the $10,00 exemption.
     For purposes of the preceding sentence, the amount of a 
     periodic benefit payment shall be the amount after any 
     reduction or deduction required under the laws authorizing 
     the program under which such payment is authorized to be made 
     (including any reduction or deduction to recover any 
     overpayment under such program).
       ``(C) The Secretary of the Treasury shall exempt means-
     tested programs when notified by the head of the respective 
     agency. The Secretary may exempt other payments from offset 
     under this subsection upon the written request of the head of 
     a payment certifying agency. A written request for exemption 
     of other payments must provide justification for the 
     exemption under thestandards prescribed by the Secretary. 
     Such standards shall give due consideration to whether offset 
     would tend to interfere substantially with or defeat the 
     purposes of the payment certifying agency's program.
       ``(D) The provisions of sections 205(b)(1) and 1631(c)(1) 
     of the Social Security Act shall not apply to any offset 
     executed pursuant to this section against benefits authorized 
     by either title II or title XVI of the Social Security Act.
       ``(4) The Secretary of the Treasury is authorized to charge 
     a fee sufficient to cover the full cost of implementing this 
     subsection. The fee may be collected either by the retention 
     of a portion of amounts collected pursuant to this 
     subsection, or by billing the agency referring or 
     transferring the claim. Fees charged to the agencies shall be 
     based only on actual offsets completed. Fees charged under 
     this subsection concerning delinquent claims may be 
     considered as costs pursuant to section 3717(e) of this 
     title. Fees charged under this subsection shall be deposited 
     into the `Account' determined by the Secretary of the 
     Treasury in accordance with section 3711(g) of this title, 
     and shall be collected and accounted for in accordance with 
     the provisions of that section.
       ``(5) The Secretary of the Treasury may disclose to a 
     creditor agency the current address of any payee and any data 
     related to certifying and authorizing such payment in 
     accordance with section 552a of title 5, United States Code, 
     even when the payment has been exempt from offset. Where 
     payments are made electronically, the Secretary is authorized 
     to obtain the current address of the debtor/payee from the 
     institution receiving the payment. Upon request by the 
     Secretary, the institution receiving the payment shall report 
     the current address of the debtor/payee to the Secretary.
       ``(6) The Secretary of the Treasury is authorized to 
     prescribe such rules, regulations, and procedures as the 
     Secretary of the Treasury deems necessary to carry out the 
     purposes of this subsection. The Secretary shall consult with 
     the heads of affected agencies in the development of such 
     rules, regulations, and procedures.
       ``(7)(A) Any Federal agency that is owed by a named person 
     a past-due legally enforceable non-tax debt that is over 180 
     days delinquent (other than any past-due support), including 
     non-tax debt administered by a third party acting as an agent 
     for the Federal Government, shall notify the Secretary of the 
     Treasury of all such non-tax debts for purposes of offset 
     under this subsection.
       ``(B) An agency may delay notification under subparagraph 
     (A) with respect to a debt that is secured by bond or other 
     instruments in lieu of bond, or for which there is another 
     specific repayment source, in order to allow sufficient time 
     to either collect the debt through normal collection 
     processes (including collection by internal administrative 
     offset) or render a final decision on any protest filed 
     against the claim.
       ``(8) The disbursing official conducting the offset shall 
     notify the payee in writing of--
       ``(A) the occurrence of an offset to satisfy a past-due 
     legally enforceable debt, including a description of the type 
     and amount of the payment otherwise payable to the debtor 
     against which the offset was executed;
       ``(B) the identity of the creditor agency requesting the 
     offset; and
       ``(C) a contact point within the creditor agency that will 
     handle concerns regarding the offset.''.
     Where the payment to be offset is a periodic benefit payment, 
     the disbursing official shall take reasonable steps, as 
     determined by the Secretary of the Treasury, to provide the 
     notice to the payee not later than the date on which the 
     payee is otherwise scheduled to receive the payment, or as 
     soon as practical thereafter, but no later than the date of 
     the offset. Notwithstanding the preceding sentence, the 
     failure of the debtor to receive such notice shall not impair 
     the legality of such offset.
       ``(9) A levy pursuant to the Internal Revenue Code of 1986 
     shall take precedence over requests for offset received from 
     other agencies.''.
       (c) Section 3701(a) of title 31, United States Code, is 
     amended by adding at the end the following new paragraph:
       ``(8) `non-tax claim' means any claim from any agency of 
     the Federal Government other than a claim by the Internal 
     Revenue Service under the Internal Revenue Code of 1986.''.

     SEC. 5202. HOUSE OF REPRESENTATIVES AS LEGISLATIVE AGENCY.

       (a) Section 3701 of title 31, United States Code, is 
     amended by adding at the end the following new subsections:
       ``(e) For purposes of subchapters I and II of chapter 37 of 
     title 31, United States Code (relating to claims of or 
     against United States Government), the United States House of 
     Representatives shall be considered to be a legislative 
     agency (as defined in section 3701(a)(4) of such title), and 
     the Clerk of the House of Representatives shall be deemed to 
     be the head of such legislative agency.
       ``(f) Regulations prescribed by the Clerk of the House of 
     Representatives pursuant to section 3716 of title 31, United 
     States Code, shall not become effective until they are 
     approved by the Committee on Rules of the House of 
     Representatives.''.

[[Page S1980]]

     SEC. 5203. EXEMPTION FROM COMPUTER MATCHING REQUIREMENTS 
                   UNDER THE PRIVACY ACT OF 1974.

       Section 552a(a) of title 5, United States Code, is amended 
     in paragraph (8)(B)--
       (1) by striking ``or'' at the end of clause (vi);
       (2) by inserting ``or'' at the end of clause (vii); and
       (3) by adding after clause (vii) the following new clause:
       ``(viii) matches for administrative offset or claims 
     collection pursuant to subsection 3716(c) of title 31, 
     section 5514 of this title, or any other payment intercept or 
     offset program authorized by statute;''.

     SEC. 5204. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Title 31, United States Code, is amended--
       (1) in section 3322(a), by inserting ``section 3716 and 
     section 3720A of this title, section 6331 of title 26, and'' 
     after ``Except as provided in'';
       (2) in section 3325(a)(3), by inserting ``or pursuant to 
     payment intercepts or offsets pursuant to section 3716 or 
     3720A, or pursuant to levies executed under section 6331 of 
     the Internal Revenue Code of 1986 (26 U.S.C. 6331),'' after 
     ``voucher''; and
       (3) in sections 3711, 3716, 3717, and 3718, by striking 
     ``the head of an executive or legislative agency'' each place 
     it appears and inserting instead ``the head of an executive, 
     judicial, or legislative agency''.
       (b) Subsection 6103(l)(10) of title 26, United States Code, 
     is amended--
       (1) in subparagraph (A), by inserting ``and to officers and 
     employees of the Department of the Treasury in connection 
     with such reduction'' adding after ``6402''; and
       (2) in subparagraph (B), by adding ``and to officers and 
     employees of the Department of the Treasury in connection 
     with such reduction'' after ``agency''.

                   Subpart B--Salary Offset Authority

     SEC. 5221. ENHANCEMENT OF SALARY OFFSET AUTHORITY.

       Section 5514 of title 5, United States Code, is amended--
       (1) in subsection (a)--
       (A) by adding at the end of paragraph (1) the following: 
     ``All Federal agencies to which debts are owed and are 
     delinquent in repayment, shall participate in a computer 
     match at least annually of their delinquent debt records with 
     records of Federal employees to identify those employees who 
     are delinquent in repayment of those debts. Matched Federal 
     employee records shall include, but shall not be limited to, 
     active Civil Service employees government-wide, military 
     active duty personnel, military reservists, United States 
     Postal Service employees, and records of seasonal and 
     temporary employees. The Secretary of the Treasury shall 
     establish and maintain an interagency consortium to implement 
     centralized salary offset computer matching, and promulgate 
     regulations for this program. Agencies that perform 
     centralized salary offset computer matching services under 
     this subsection are authorized to charge a fee sufficient to 
     cover the full cost for such services.'';
       (B) by redesignating paragraphs (3) and (4) as paragraphs 
     (4) and (5), respectively;
       (C) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) The provisions of paragraph (2) shall not apply to 
     routine intra-agency adjustments of pay that are attributable 
     to clerical or administrative errors or delays in processing 
     pay documents that have occurred within the four pay periods 
     preceding the adjustment and to any adjustment that amounts 
     to $50 or less, provided that at the time of such adjustment, 
     or as soon thereafter as practical, the individual is 
     provided written notice of the nature and the amount of the 
     adjustment and a point of contact for contesting such 
     adjustment.''; and
       (D) by amending paragraph (5)(B) (as redesignated) to read 
     as follows:
       ``(B) For purposes of this section `agency' includes 
     executive departments and agencies, the United States Postal 
     Service, the Postal Rate Commission, the United States 
     Senate, the United States House of Representatives, and any 
     court, court administrative office, or instrumentality in the 
     judicial or legislative branches of government, and 
     government corporations.'';
       (2) by adding at the end of subsection (b) the following 
     new paragraphs:
       ``(3) For purposes of this section, the Clerk of the House 
     of Representatives shall be deemed to be the head of the 
     agency. Regulations prescribed by the Clerk of the House of 
     Representatives pursuant to subsection (b)(1) shall be 
     subject to the approval of the Committee on Rules of the 
     House of Representatives.
       ``(4) For purposes of this section, the Secretary of the 
     Senate shall be deemed to be the head of the agency. 
     Regulations prescribed by the Secretary of the Senate 
     pursuant to subsection (b)(1) shall be subject to the 
     approval of the Committee on Rules and Administration of the 
     Senate.''; and
       (3) by adding after subsection (c) the following new 
     subsection:
       ``(d) A levy pursuant to the Internal Revenue Code of 1986 
     shall take precedence over requests for offset received from 
     other agencies.''.

                Subpart C--Taxpayer Identifying Numbers

     SEC. 5231. ACCESS TO TAXPAYER IDENTIFYING NUMBERS; BARRING 
                   DELINQUENT DEBTORS FROM CREDIT ASSISTANCE.

       Section 4 of the Debt Collection Act of 1982 (Public Law 
     97-365, 96 Stat. 1749, 26 U.S.C. 6103 note) is amended--
       (1) in subsection (b), by striking ``For purposes of this 
     section'' and inserting instead ``For purposes of subsection 
     (a)''; and
       (2) by adding at the end thereof the following new 
     subsections:
       ``(c) Federal Agencies.--Each Federal agency shall require 
     each person doing business with that agency to furnish to 
     that agency such person's taxpayer identifying number.
       ``(1) For purposes of this subsection, a person is 
     considered to be `doing business' with a Federal agency if 
     the person is--
       ``(A) a lender or servicer in a Federal guaranteed or 
     insured loan program;
       ``(B) an applicant for, or recipient of--
       ``(i) a Federal guaranteed, insured, or direct loan; or
       ``(ii) a Federal license, permit, right-of-way, grant, 
     benefit payment or insurance;
       ``(C) a contractor of the agency;
       ``(D) assessed a fine, fee, royalty or penalty by that 
     agency;
       ``(E) in a relationship with a Federal agency that may give 
     rise to a receivable due to that agency, such as a partner of 
     a borrower in or a guarantor of a Federal direct or insured 
     loan; and
       ``(F) is a joint holder of any account to which Federal 
     benefit payments are transferred electronically.
       ``(2) Each agency shall disclose to the person required to 
     furnish a taxpayer identifying number under this subsection 
     its intent to use such number for purposes of collecting and 
     reporting on any delinquent amounts arising out of such 
     persons's relationship with the government.
       ``(3) For purposes of this subsection:
       ``(A) The term `taxpayer identifying number' has the 
     meaning given such term in section 6109 of title 26, United 
     States Code.
       ``(B) The term `person' means an individual, sole 
     proprietorship, partnership, corporation, nonprofit 
     organization, or any other form of business association, but 
     with the exception of debtors owing claims resulting from 
     petroleum pricing violations does not include debtors under 
     third party claims of the United States.
       ``(d) Access to Social Security Numbers.--Notwithstanding 
     section 552a of title 5, United States Code, creditor 
     agencies to which a delinquent claim is owed, and their 
     agents, may match their debtor records with the Social 
     Security Administration records to verify name, name control, 
     Social Security number, address, and date of birth.''.

     SEC. 5232. BARRING DELINQUENT FEDERAL DEBTORS FROM OBTAINING 
                   FEDERAL LOANS OR LOAN GUARANTEES.

       (a) Title 31, United States Code, is amended by adding 
     after section 3720A the following new section:

     ``Sec. 3720B. Barring delinquent Federal debtors from 
       obtaining Federal loans or loan guarantees

       ``(a) Unless waived by the head of the agency, no person 
     may obtain any Federal financial assistance in the form of a 
     loan or a loan guarantee if such person has an outstanding 
     Federal non-tax debt which is in a delinquent status, as 
     determined under the standards prescribed by the Secretary of 
     the Treasury, with a Federal agency. Any such person may 
     obtain additional Federal financial assistance only after 
     such delinquency is resolved, pursuant to these standards. 
     This section shall not apply to loans or loan guarantees 
     where a statute specifically permits extension of Federal 
     financial assistance to borrowers in delinquent status.
       ``(b) The head of the agency may delegate the waiver 
     authority described in subsection (a) to the Chief Financial 
     Officer of the agency. The waiver authority may be 
     redelegated only to the Deputy Chief Financial Officer of the 
     agency.
       ``(c) For purposes of this section, `person' means an 
     individual; or sole proprietorship, partnership, corporation, 
     non-profit organization, or any other form of business 
     association.''.
       (b) The table of sections for subchapter II of chapter 37 
     of title 31, United States Code, is amended by inserting 
     after the item relating to section 3720A the following new 
     item:

``3720B. Barring delinquent Federal debtors from obtaining Federal 
              loans or loan guarantees.''.

 Subpart D--Expanding Collection Authorities and Governmentwide Cross-
                               Servicing

     SEC. 5241. EXPANDING COLLECTION AUTHORITIES UNDER THE DEBT 
                   COLLECTION ACT OF 1982.

       (a) Subsection 8(e) of the Debt Collection Act of 1982 
     (Public Law 97-365, 31 U.S.C. 3701(d) and 5 U.S.C. 5514 note) 
     is repealed.
       (b) Section 5 of the Social Security Domestic Employment 
     Reform Act of 1994 (Public Law 103-387) is repealed.
       (c) Section 631 of the Tariff Act of 1930 (19 U.S.C. 1631), 
     is repealed.
       (d) Title 31, United States Code, is amended--
       (1) in section 3701--
       (A) by amending subsection (a)(4) to read as follows:
       ``(4) `executive, judicial or legislative agency' means a 
     department, military department, agency, court, court 
     administrative office, or instrumentality in the executive, 
     judicial or legislative branches of government, including 
     government corporations.''; and
       (B) by inserting after subsection (c) the following new 
     subsection:
       ``(d) Sections 3711(f) and 3716-3719 of this title do not 
     apply to a claim or debt under,

[[Page S1981]]

     or to an amount payable under, the Internal Revenue Code of 
     1986.'';
       (2) by amending section 3711(f) to read as follows:
       ``(f)(1) When trying to collect a claim of the Government, 
     the head of an executive or legislative agency may disclose 
     to a consumer reporting agency information from a system of 
     records that an individual is responsible for a claim if 
     notice required by section 552a(e)(4) of title 5, United 
     States Code, indicates that information in the system may be 
     disclosed to a consumer reporting agency.
       ``(2) The information disclosed to a consumer reporting 
     agency shall be limited to--
       ``(A) information necessary to establish the identity of 
     the individual, including name, address and taxpayer 
     identifying number;
       ``(B) the amount, status, and history of the claim; and
       ``(C) the agency or program under which the claim arose.''; 
     and
       (3) in section 3718--
       (A) in subsection (a), by striking the first sentence and 
     inserting instead the following: ``Under conditions the head 
     of an executive, legislative or judicial agency considers 
     appropriate, the head of an agency may make a contract with a 
     person for collection service to recover indebtedness owed, 
     or to locate or recover assets of, the United States 
     Government. No head of an agency may enter into a contract to 
     locate or recover assets of the United States held by a State 
     government or financial institution unless that agency has 
     established procedures approved by the Secretary of the 
     Treasury to identify and recover such assets.''; and
       (B) in subsection (d), by inserting ``, or to locate or 
     recover assets of,'' after ``owed''.

     SEC. 5242. GOVERNMENTWIDE CROSS-SERVICING.

       Section 3711 of title 31, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(g)(1) At the discretion of the head of an executive, 
     judicial or legislative agency, referral of a non-tax claim 
     may be made to any executive department or agency operating a 
     debt collection center for servicing and collection in 
     accordance with an agreement entered into under paragraph 
     (2). Referral or transfer of a claim may also be made to the 
     Secretary of the Treasury for servicing, collection, 
     compromise, and/or suspension or termination of collection 
     action. Non-tax claims referred or transferred under this 
     section shall be serviced, collected, compromised, and/or 
     collection action suspended or terminated in accordance with 
     existing statutory requirements and authorities.
       ``(2) Executive departments and agencies operating debt 
     collection centers are authorized to enter into agreements 
     with the heads of executive, judicial, or legislative 
     agencies to service and/or collect non-tax claims referred or 
     transferred under this subsection. The heads of other 
     executive departments and agencies are authorized to enter 
     into agreements with the Secretary of the Treasury for 
     servicing or collection of referred or transferred non-tax 
     claims or other Federal agencies operating debt collection 
     centers to obtain debt collection services from those 
     agencies.
       ``(3) Any agency to which non-tax claims are referred or 
     transferred under this subsection is authorized to charge a 
     fee sufficient to cover the full cost of implementing this 
     subsection. The agency transferring or referring the non-tax 
     claim shall be charged the fee, and the agency charging the 
     fee shall collect such fee by retaining the amount of the fee 
     from amounts collected pursuant to this subsection. Agencies 
     may agree to pay through a different method, or to fund the 
     activity from another account or from revenue received from 
     Section 701. Amounts charged under this subsection concerning 
     delinquent claims may be considered as costs pursuant to 
     section 3717(e) of this title.
       ``(4) Notwithstanding any other law concerning the 
     depositing and collection of Federal payments, including 
     section 3302(b) of this title, agencies collecting fees may 
     retain the fees from amounts collected. Any fee charged 
     pursuant to this subsection shall be deposited into an 
     account to be determined by the executive department or 
     agency operating the debt collection center charging the fee 
     (hereafter referred to in this section as the `Account'). 
     Amounts deposited in the Account shall be available until 
     expended to cover costs associated with the implementation 
     and operation of government-wide debt collection activities. 
     Costs properly chargeable to the Account include, but are not 
     limited to--
       ``(A) the costs of computer hardware and software, word 
     processing and telecommunications equipment, other equipment, 
     supplies, and furniture;
       ``(B) personnel training and travel costs;
       ``(C) other personnel and administrative costs;
       ``(D) the costs of any contract for identification, 
     billing, or collection services; and
       ``(E) reasonable costs incurred by the Secretary of the 
     Treasury, including but not limited to, services and 
     utilities provided by the Secretary, and administration of 
     the Account.
       ``(5) Not later than January 1 of each year, there shall be 
     deposited into the Treasury as miscellaneous receipts, an 
     amount equal to the amount of unobligated balances remaining 
     in the Account at the close of business on September 30 of 
     the preceding year minus any part of such balance that the 
     executive department or agency operating the debt collection 
     center determines is necessary to cover or defray the costs 
     under this subsection for the fiscal year in which the 
     deposit is made.
       ``(6)(A) The head of an executive, legislative, or judicial 
     agency shall transfer to the Secretary of the Treasury all 
     non-tax claims over 180 days delinquent for additional 
     collection action and/or closeout. A taxpayer identification 
     number shall be included with each claim provided if it is in 
     the agency's possession.
       ``(B) Subparagraph (A) shall not apply--
       ``(i) to claims that--
       ``(I) are in litigation or foreclosure;
       ``(II) will be disposed of under the loan sales program of 
     a Federal department or agency;
       ``(III) have been referred to a private collection 
     contractor for collection;
       ``(IV) are being collected under internal offset 
     procedures;
       ``(V) have been referred to the Department of the Treasury, 
     the Department of Defense, the United States Postal Service, 
     or a disbursing official of the United States designated by 
     the Secretary of the Treasury for administrative offset;
       ``(VI) have been retained by an executive agency in a debt 
     collection center; or
       ``(VII) have been referred to another agency for 
     collection;
       ``(ii) to claims which may be collected after the 180-day 
     period in accordance with specific statutory authority or 
     procedural guidelines, provided that the head of an 
     executive, legislative, or judicial agency provides notice of 
     such claims to the Secretary of the Treasury; and
       ``(iii) to other specific class of claims as determined by 
     the Secretary of the Treasury at the request of the head of 
     an agency or otherwise.
       ``(C) The head of an executive, legislative, or judicial 
     agency shall transfer to the Secretary of the Treasury all 
     non-tax claims on which the agency has ceased collection 
     activity. The Secretary may exempt specific classes of claims 
     from this requirement, at the request of the head of an 
     agency, or otherwise. The Secretary shall review transferred 
     claims to determine if additional collection action is 
     warranted. The Secretary may, in accordance with section 
     6050P of title 26, United States Code, report to the Internal 
     Revenue Service on behalf of the creditor agency any claims 
     that have been discharged within the meaning of such section.
       ``(7) At the end of each calendar year, the head of an 
     executive, legislative, or judicial agency which, regarding a 
     claim owed to the agency, is required to report a discharge 
     of indebtedness as income under the 6050P of title 26, United 
     States Code, shall either complete the appropriate form 1099 
     or submit to the Secretary of the Treasury such information 
     as is necessary for the Secretary of the Treasury to complete 
     the appropriate form 1099. The Secretary of the Treasury 
     shall incorporate this information into the appropriate form 
     and submit the information to the taxpayer and Internal 
     Revenue Service.
       ``(8) To carry out the purposes of this subsection, the 
     Secretary of the Treasury is authorized--
       ``(A) to prescribe such rules, regulations, and procedures 
     as the Secretary deems necessary; and
       ``(B) to designate debt collection centers operated by 
     other Federal agencies.''.

     SEC. 5243. COMPROMISE OF CLAIMS.

       (a) Section 3711(a)(2) of title 31, United States Code, is 
     amended by striking out ``$20,000 (excluding interest)'' and 
     inserting in lieu thereof ``$100,000 (excluding interest) or 
     such higher amount as the Attorney General may from time to 
     time prescribe.
       (b) This section shall be effective as of October 1, 1995.

              Subpart E--Federal Civil Monetary Penalties

     SEC. 5251. ADJUSTING FEDERAL CIVIL MONETARY PENALTIES FOR 
                   INFLATION.

       (a) The Federal Civil Penalties Inflation Adjustment Act of 
     1990 (Public Law 101-410, 104 Stat. 890; 28 U.S.C. 2461 note) 
     is amended--
       (1) by amending section 4 to read as follows:
       ``Sec. 4. The head of each agency shall, not later than 180 
     days after the date of enactment of the Debt Collection 
     Improvement Act of 1996, and at least once every 4 years 
     thereafter, by regulation adjust each civil monetary penalty 
     provided by law within the jurisdiction of the Federal 
     agency, except for any penalty under title 26, United States 
     Code, by the inflation adjustment described under section 5 
     of this Act and publish each such regulation in the Federal 
     Register.'';
       (2) in section 5(a), by striking ``The adjustment described 
     under paragraphs (4) and (5)(A) of section 4'' and inserting 
     ``The inflation adjustment''; and
       (3) by adding at the end the following new section:
       ``Sec. 7. Any increase to a civil monetary penalty 
     resulting from this Act shall apply only to violations which 
     occur after the date any such increase takes effect.''.
       (b) The initial adjustment of a civil monetary penalty made 
     pursuant to section 4 of Federal Civil Penalties Inflation 
     Adjustment Act of 1990 (as amended by subsection (a)) may not 
     exceed 10 percent of such penalty.

                        Subpart F--Gain Sharing

     SEC. 5261. DEBT COLLECTION IMPROVEMENT ACCOUNT.

       (a) Title 31, United States Code, is amended by inserting 
     after section 3720B the following new section:

[[Page S1982]]

     ``Sec. 3720C. Debt Collection Improvement Account

       ``(a)(1) There is hereby established in the Treasury a 
     special fund to be known as the `Debt Collection Improvement 
     Account' (hereinafter referred to as the `Account').
       ``(2) The Account shall be maintained and managed by the 
     Secretary of the Treasury, who shall ensure that programs are 
     credited with the amounts described in subsection (b) and 
     with allocations described in subsection (c).
       ``(b)(1) Not later than 30 days after the end of a fiscal 
     year, an agency other than the Department of Justice is 
     authorized to transfer to the Account a dividend not to 
     exceed five percent of the debt collection improvement amount 
     as described in paragraph (3).
       ``(2) Agency transfers to the Account may include 
     collections from--
       ``(A) salary, administrative and tax referral offsets;
       ``(B) automated levy authority;
       ``(C) the Department of Justice; and
       ``(D) private collection agencies.
       ``(3) For purposes of this section, the term `debt 
     collection improvement amount' means the amount by which the 
     collection of delinquent debt with respect to a particular 
     program during a fiscal year exceeds the delinquent debt 
     baseline for such program for such fiscal year. The Office of 
     Management and Budget shall determine the baseline from which 
     increased collections are measured over the prior fiscal 
     year, taking into account the recommendations made by the 
     Secretary of the Treasury in consultation with creditor 
     agencies.
       ``(c)(1) The Secretary of the Treasury is authorized to 
     make payments from the Account solely to reimburse agencies 
     for qualified expenses. For agencies with franchise funds, 
     payments may be credited to subaccounts designated for debt 
     collection.
       ``(2) For purposes of this paragraph, the term `qualified 
     expenses' means expenditures for the improvement of tax 
     administration and agency debt collection and debt recovery 
     activities including, but not limited to, account servicing 
     (including cross-servicing under section 502 of the Debt 
     Collection Improvement Act of 1996), automatic data 
     processing equipment acquisitions, delinquent debt 
     collection, measures to minimize delinquent debt, asset 
     disposition, and training of personnel involved in credit and 
     debt management.
       ``(3) Payments made to agencies pursuant to paragraph (1) 
     shall be in proportion to their contributions to the Account.
       ``(4)(A) Amounts in the Account shall be available to the 
     Secretary of the Treasury to the extent and in the amounts 
     provided in advance in appropriation Acts, for purposes of 
     this section. Such amounts are authorized to be appropriated 
     without fiscal year limitation.
       ``(B) As soon as practicable after the end of third fiscal 
     year after which appropriations are made pursuant to this 
     section, and every 3 years thereafter, any unappropriated 
     balance in the account as determined by the Secretary of the 
     Treasury in consultation with agencies, shall be transferred 
     to the Treasury general fund as miscellaneous receipts.
       ``(d) For direct loan and loan guarantee programs subject 
     to title V of the Congressional Budget Act of 1974, amounts 
     credited in accordance with subsection (c) shall be 
     considered administrative costs and shall not be included in 
     the estimated payments to the Government for the purpose of 
     calculating the cost of such programs.
       ``(e) The Secretary of the Treasury shall prescribe such 
     rules, regulations, and procedures as the Secretary deems 
     necessary or appropriate to carry out the purposes of this 
     section.''.
       (b) The table of sections for subchapter II of chapter 37 
     of title 31, United States Code, is amended by inserting 
     after the item relating to section 3720B the following new 
     item:

``3720C. Debt Collection Improvement Account.''.

                 Subpart G--Tax Refund Offset Authority

     SEC. 5271. OFFSET OF TAX REFUND PAYMENT BY DISBURSING 
                   OFFICIALS.

       Section 3720A(h) of title 31, United States Code, is 
     amended to read as follows:
       ``(h)(1) The term `Secretary of the Treasury' may include 
     the disbursing official of the Department of the Treasury.
       ``(2) The disbursing official of the Department of the 
     Treasury--
       ``(A) shall notify a taxpayer in writing of--
       ``(i) the occurrence of an offset to satisfy a past-due 
     legally enforceable non-tax debt;
       ``(ii) the identity of the creditor agency requesting the 
     offset; and
       ``(iii) a contact point within the creditor agency that 
     will handle concerns regarding the offset;
       ``(B) shall notify the Internal Revenue Service on a weekly 
     basis of--
       ``(i) the occurrence of an offset to satisfy a past-due 
     legally enforceable non-tax debt;
       ``(ii) the amount of such offset; and
       ``(iii) any other information required by regulations; and
       ``(C) shall match payment records with requests for offset 
     by using a name control, taxpayer identifying number (as 
     defined in 26 U.S.C. 6109), and any other necessary 
     identifiers.''.

     SEC. 5272. EXPANDING TAX REFUND OFFSET AUTHORITY.

       (a) Section 3720A of title 31, United States Code, is 
     amended by adding after subsection (h) the following new 
     subsection:
       ``(i) An agency subject to section 9 of the Act of May 18, 
     1933 (16 U.S.C. 831h) may implement this section at its 
     discretion.''.
       (b) Section 6402(f) of title 26, United States Code, is 
     amended to read as follows:
       ``(f) Federal Agency.--For purposes of this section, the 
     term `Federal agency' means a department, agency, or 
     instrumentality of the United States, and includes a 
     government corporation (as such term is defined in section 
     103 of title 5, United States Code).''.

     SEC. 5273. EXPANDING AUTHORITY TO COLLECT PAST-DUE SUPPORT.

       (a) Section 3720A(a) of title 31, United States Code, is 
     amended to read as follows:
       ``(a) Any Federal agency that is owed by a named person a 
     past-due, legally enforceable debt (including past-due 
     support and debt administered by a third party acting as an 
     agent for the Federal Government) shall, in accordance with 
     regulations issued pursuant to subsections (b) and (d), 
     notify the Secretary of the Treasury at least once a year of 
     the amount of such debt.''.
       (b) Section 464(a) of the Social Security Act (42 U.S.C. 
     664(a)) is amended--
       (1) in paragraph (1), by adding at the end thereof the 
     following: ``This subsection may be implemented by the 
     Secretary of the Treasury in accordance with section 3720A of 
     title 31, United States Code.''; and
       (2) in paragraph (2)(A), by adding at the end thereof the 
     following: ``This subsection may be implemented by the 
     Secretary of the Treasury in accordance with section 3720A of 
     title 31, United States Code.''.

      Subpart H--Definitions, Due Process Rights, and Severability

     SEC. 5281. TECHNICAL AMENDMENTS TO DEFINITIONS.

       Section 3701 of title 31, United States Code, is amended--
       (1) by amending subsection (a)(1) to read as follows:
       ``(1) `administrative offset' means withholding money 
     payable by the United States (including money payable by the 
     United States on behalf of a State government) to, or held by 
     the United States for, a person to satisfy a claim.'';
       (2) by amending subsection (b) to read as follows:
       ``(b)(1) The term `claim' or `debt' means any amount of 
     money or property that has been determined by an appropriate 
     official of the Federal Government to be owed to the United 
     States by a person, organization, or entity other than 
     another Federal agency. A claim includes, without limitation, 
     money owed on account of loans insured or guaranteed by the 
     Government, non-appropriated funds, over-payments, any amount 
     the United States is authorized by statute to collect for the 
     benefit of any person, and other amounts of money or property 
     due the Government.
       ``(2) For purposes of section 3716 of this title, the term 
     `claim' also includes an amount of money or property owed by 
     a person to a State, the District of Columbia, American 
     Samoa, the United States Virgin Islands, the Commonwealth of 
     the Northern Mariana Islands, or the Commonwealth of Puerto 
     Rico where there is also a Federal monetary interest or in 
     cases of court ordered child support.''; and
       (3) by adding after subsection (f) (as added in section 
     5202(a)) the following new subsection:
       ``(g) In section 3716 of this title--
       ``(1) `creditor agency' means any entity owed a claim that 
     seeks to collect that claim through administrative offset; 
     and
       ``(2) `payment certifying agency' means any Federal 
     department, agency, or instrumentality and government 
     corporation, that has transmitted a voucher to a disbursing 
     official for disbursement.''.

     SEC. 5282. SEVERABILITY.

       If any provision of this title, or the amendments made by 
     this title, or the application of any provision to any 
     entity, person, or circumstance is for any reason adjudged by 
     a court of competent jurisdiction to be invalid, the 
     remainder of this title, and the amendments made by this 
     title, or its application shall not be affected.

                          Subpart I--Reporting

     SEC. 5291. MONITORING AND REPORTING.

       (a) The Secretary of the Treasury, in consultation with 
     concerned Federal agencies, is authorized to establish 
     guidelines, including information on outstanding debt, to 
     assist agencies in the performance and monitoring of debt 
     collection activities.
       (b) Not later than three years after the date of enactment 
     of this Act, the Secretary of the Treasury shall report to 
     the Congress on collection services provided by Federal 
     agencies or entities collecting debt on behalf of other 
     Federal agencies under the authorities contained in section 
     3711(g) of title 31, United States Code.
       (c) Section 3719 of title 31, United States Code, is 
     amended--
       (1) in subsection (a)--
       (A) by amending the first sentence to read as follows: ``In 
     consultation with the Comptroller General, the Secretary of 
     the Treasury shall prescribe regulations requiring the head 
     of each agency with outstanding non-tax claims to prepare and 
     submit to the Secretary at least once a year a report 
     summarizing the status of loans and accounts receivable 
     managed by the head of the agency.''; and
       (B) in paragraph (3), by striking ``Director'' and 
     inserting ``Secretary''; and
       (2) in subsection (b), by striking ``Director'' and 
     inserting ``Secretary''.

[[Page S1983]]

       (d) Notwithstanding any other provision of law, the 
     Secretary of the Treasury is authorized to consolidate all 
     reports concerning debt collection into one annual report.

                    PART II--JUSTICE DEBT MANAGEMENT

                      Subpart A--Private Attorneys

     SEC. 5301. EXPANDED USE OF PRIVATE ATTORNEYS.

       (a) Section 3718(b)(1)(A) of title 31, United States Code, 
     is amended by striking the fourth sentence.
       (b) Sections 3 and 5 of the Federal Debt Recovery Act 
     (Public Law 99-578, 100 Stat. 3305) are hereby repealed.

                   Subpart B--Nonjudicial Foreclosure

     SEC. 5311. NONJUDICIAL FORECLOSURE OF MORTGAGES.

       Chapter 176 of title 28 of the United States Code is 
     amended by adding at the end thereof the following:

                ``SUBCHAPTER E--NONJUDICIAL FORECLOSURE

``Sec.
``3401. Definitions.
``3402. Rules of construction.
``3403. Election of procedure.
``3404. Designation of foreclosure trustee.
``3405. Notice of foreclosure sale; statute of limitations.
``3406. Service of notice of foreclosure sale.
``3407. Cancellation of foreclosure sale.
``3408. Stay.
``3409. Conduct of sale; postponement.
``3410. Transfer of title and possession.
``3411. Record of foreclosure and sale.
``3412. Effect of sale.
``3413. Disposition of sale proceeds.
``3414. Deficiency judgment.

     ``Sec. 3401. Definitions

       ``As used in this subchapter--
       ``(1) `agency' means--
       ``(A) an executive department as defined in section 101 of 
     title 5, United States Code;
       ``(B) an independent establishment as defined in section 
     104 of title 5, United States Code (except that it shall not 
     include the General Accounting Office);
       ``(C) a military department as defined in section 102 of 
     title 5, United States Code; and
       ``(D) a wholly owned government corporation as defined in 
     section 9101(3) of title 31, United States Code;
       ``(2) `agency head' means the head and any assistant head 
     of an agency, and may upon the designation by the head of an 
     agency include the chief official of any principal division 
     of an agency or any other employee of an agency;
       ``(3) `bona fide purchaser' means a purchaser for value in 
     good faith and without notice of any adverse claim who 
     acquires the seller's interest free of any adverse claim;
       ``(4) `debt instrument' means a note, mortgage bond, 
     guaranty or other instrument creating a debt or other 
     obligation, including any instrument incorporated by 
     reference therein and any instrument or agreement amending or 
     modifying a debt instrument;
       ``(5) `file' or `filing' means docketing, indexing, 
     recording, or registering, or any other requirement for 
     perfecting a mortgage or a judgment;
       ``(6) `foreclosure trustee' means an individual, 
     partnership, association, or corporation, or any employee 
     thereof, including a successor, appointed by the agency head 
     to conduct a foreclosure sale pursuant to this subchapter;
       ``(7) `mortgage' means a deed of trust, deed to secure 
     debt, security agreement, or any other form of instrument 
     under which any interest in real property, including 
     leaseholds, life estates, reversionary interests, and any 
     other estates under applicable law is conveyed in trust, 
     mortgaged, encumbered, pledged or otherwise rendered subject 
     to a lien, for the purpose of securing the payment of money 
     or the performance of any other obligation;
       ``(8) `of record' means an interest recorded pursuant to 
     Federal or State statutes that provide for official recording 
     of deeds, mortgages and judgments, and that establish the 
     effect of such records as notice to creditors, purchasers, 
     and other interested persons;
       ``(9) `owner' means any person who has an ownership 
     interest in property and includes heirs, devisees, executors, 
     administrators, and other personal representatives, and 
     trustees of testamentary trusts if the owner of record is 
     deceased;
       ``(10) `sale' means a sale conducted pursuant to this 
     subchapter, unless the context requires otherwise; and
       ``(11) `security property' means real property, or any 
     interest in real property including leaseholds, life estates, 
     reversionary interests, and any other estates under 
     applicable State law that secure a mortgage.

     ``Sec. 3402. Rules of construction

       ``(a) In General.--If an agency head elects to proceed 
     under this subchapter, this subchapter shall apply and the 
     provisions of this subchapter shall govern in the event of a 
     conflict with any other provision of Federal law or State 
     law.
       ``(b) Limitation.--This subchapter shall not be construed 
     to supersede or modify the operation of--
       ``(1) the lease-back/buy-back provisions under section 1985 
     of title 7, United States Code, or regulations promulgated 
     thereunder; or
       ``(2) The Multifamily Mortgage Foreclosure Act of 1981 
     (chapter 38 of title 12, United States Code).
       ``(c) Effect on Other Laws.--This subchapter shall not be 
     construed to curtail or limit the rights of the United States 
     or any of its agencies--
       ``(1) to foreclose a mortgage under any other provision of 
     Federal law or State law; or
       ``(2) to enforce any right under Federal law or State law 
     in lieu of or in addition to foreclosure, including any right 
     to obtain a monetary judgment.
       ``(d) Application to Mortgages.--The provisions of this 
     subchapter may be used to foreclose any mortgage, whether 
     executed prior or subsequent to the effective date of this 
     subchapter.

     ``Sec. 3403. Election of procedure

       ``(a) Security Property Subject to Foreclosure.--An agency 
     head may foreclose a mortgage upon the breach of a covenant 
     or condition in a debt instrument or mortgage for which 
     acceleration or foreclosure is authorized. An agency head may 
     not institute foreclosure proceedings on the mortgage under 
     any other provision of law, or refer such mortgage for 
     litigation, during the pendency of foreclosure proceedings 
     pursuant to this subchapter.
       ``(b) Effect of Cancellation of Sale.--If a foreclosure 
     sale is canceled pursuant to section 3407, the agency head 
     may thereafter foreclose on the security property in any 
     manner authorized by law.

     ``Sec. 3404. Designation of foreclosure trustee

       ``(a) In General.--An agency head shall designate a 
     foreclosure trustee who shall supersede any trustee 
     designated in the mortgage. A foreclosure trustee designated 
     under this section shall have a nonjudicial power of sale 
     pursuant to this subchapter.
       ``(b) Designation of Foreclosure Trustee.--
       ``(1) An agency head may designate as foreclosure trustee--
       ``(A) an officer or employee of the agency;
       ``(B) an individual who is a resident of the State in which 
     the security property is located; or
       ``(C) a partnership, association, or corporation, provided 
     such entity is authorized to transact business under the laws 
     of the State in which the security property is located.
       ``(2) The agency head is authorized to enter into personal 
     services and other contracts not inconsistent with this 
     subchapter.
       ``(c) Method of Designation.--An agency head shall 
     designate the foreclosure trustee in writing. The foreclosure 
     trustee may be designated by name, title, or position. An 
     agency head may designate one or more foreclosure trustees 
     for the purpose of proceeding with multiple foreclosures or a 
     class of foreclosures.
       ``(d) Availability of Designation.--An agency head may 
     designate such foreclosure trustees as the agency head deems 
     necessary to carry out the purposes of this subchapter.
       ``(e) Multiple Foreclosure Trustees Authorized.--An agency 
     head may designate multiple foreclosure trustees for 
     different tracts of a secured property.
       ``(f) Removal of Foreclosure Trustees; Successor 
     Foreclosure Trustees.--An agency head may, with or without 
     cause or notice, remove a foreclosure trustee and designate a 
     successor trustee as provided in this section. The 
     foreclosure sale shall continue without prejudice 
     notwithstanding the removal of the foreclosure trustee and 
     designation of a successor foreclosure trustee. Nothing in 
     this section shall be construed to prohibit a successor 
     foreclosure trustee from postponing the foreclosure sale in 
     accordance with this subchapter.

     ``Sec. 3405. Notice of foreclosure sale; statute of 
       limitations

       ``(a) In General.--
       ``(1) Not earlier than 21 days nor later than ten years 
     after acceleration of a debt instrument or demand on a 
     guaranty, the foreclosure trustee shall serve a notice of 
     foreclosure sale in accordance with this subchapter.
       ``(2) For purposes of computing the time period under 
     paragraph (1), there shall be excluded all periods during 
     which there is in effect--
       ``(A) a judicially imposed stay of foreclosure; or
       ``(B) a stay imposed by section 362 of title 11, United 
     States Code.
       ``(3) In the event of partial payment or written 
     acknowledgement of the debt after acceleration of the debt 
     instrument, the right to foreclosure shall be deemed to 
     accrue again at the time of each such payment or 
     acknowledgement.
       ``(b) Notice of Foreclosure Sale.--The notice of 
     foreclosure sale shall include--
       ``(1) the name, title, and business address of the 
     foreclosure trustee as of the date of the notice;
       ``(2) the names of the original parties to the debt 
     instrument and the mortgage, and any assignees of the 
     mortgagor of record;
       ``(3) the street address or location of the security 
     property, and a generally accepted designation used to 
     describe the security property, or so much thereof as is to 
     be offered for sale, sufficient to identify the property to 
     be sold;
       ``(4) the date of the mortgage, the office in which the 
     mortgage is filed, and the location of the filing of the 
     mortgage;
       ``(5) the default or defaults upon which foreclosure is 
     based, and the date of the acceleration of the debt 
     instrument;
       ``(6) the date, time, and place of the foreclosure sale;
       ``(7) a statement that the foreclosure is being conducted 
     in accordance with this subchapter;

[[Page S1984]]

       ``(8) the types of costs, if any, to be paid by the 
     purchaser upon transfer of title; and
       ``(9) the terms and conditions of sale, including the 
     method and time of payment of the foreclosure purchase price.

     ``Sec. 3406. Service of notice of foreclosure sale

       ``(a) Record Notice.--At least 21 days prior to the date of 
     the foreclosure sale, the notice of foreclosure sale required 
     by section 3405 shall be filed in the manner authorized for 
     filing a notice of an action concerning real property 
     according to the law of the State where the security property 
     is located or, if none, in the manner authorized by section 
     3201 of this chapter.
       ``(b) Notice by Mail.--
       ``(1) At least 21 days prior to the date of the foreclosure 
     sale, the notice set forth in section 3405 shall be sent by 
     registered or certified mail, return receipt requested--
       ``(A) to the current owner of record of the security 
     property as the record appears on the date that the notice of 
     foreclosure sale is recorded pursuant to subsection (a);
       ``(B) to all debtors, including the mortgagor, assignees of 
     the mortgagor and guarantors of the debt instrument;
       ``(C) to all persons having liens, interests or 
     encumbrances of record upon the security property, as the 
     record appears on the date that the notice of foreclosure 
     sale is recorded pursuant to subsection (a); and
       ``(D) to any occupants of the security property. If the 
     names of the occupants of the security property are not known 
     to the agency, or the security property has more than one 
     dwelling unit, the notice shall be posted at the security 
     property.
       ``(2) The notice shall be sent to the debtor at the 
     address, if any, set forth in the debt instrument or mortgage 
     as the place to which notice is to be sent, and if different, 
     to the debtor's last known address as shown in the mortgage 
     record of the agency. The notice shall be sent to any person 
     other than the debtor to that person's address of record or, 
     if there is no address of record, to any address at which the 
     agency in good faith believes the notice is likely to come to 
     that person's attention.
       ``(3) Notice by mail pursuant to this subsection shall be 
     effective upon mailing.
       ``(c) Notice by Publication.--The notice of the foreclosure 
     sale shall be published at least once a week for each of 
     three successive weeks prior to the sale in at least one 
     newspaper of general circulation in any county or counties in 
     which the security property is located. If there is no 
     newspaper published at least weekly that has a general 
     circulation in at least one county in which the security 
     property is located, copies of the notice of foreclosure sale 
     shall instead be posted at least 21 days prior to the sale at 
     the courthouse of any county or counties in which the 
     property is located and the place where the sale is to be 
     held.

     ``Sec. 3407. Cancellation of foreclosure sale

       ``(a) In General.--At any time prior to the foreclosure 
     sale, the foreclosure trustee shall cancel the sale--
       ``(1) if the debtor or the holder of any subordinate 
     interest in the security property tenders the performance due 
     under the debt instrument and mortgage, including any amounts 
     due because of the exercise of the right to accelerate, and 
     the expenses of proceeding to foreclosure incurred to the 
     time of tender;
       ``(2) if the security property is a dwelling of four units 
     or fewer, and the debtor--
       ``(A) pays or tenders all sums which would have been due at 
     the time of tender in the absence of any acceleration;
       ``(B) performs any other obligation which would have been 
     required in the absence of any acceleration; and
       ``(C) pays or tenders all costs of foreclosure incurred for 
     which payment from the proceeds of the sale would be allowed; 
     or
       ``(3) for any reason approved by the agency head.
       ``(b) Limitation.--The debtor may not, without the approval 
     of the agency head, cure the default under subsection (a)(2) 
     if, within the preceding 12 months, the debtor has cured a 
     default after being served with a notice of foreclosure sale 
     pursuant to this subchapter.
       ``(c) Notice of Cancellation.--The foreclosure trustee 
     shall file a notice of the cancellation in the same place and 
     manner provided for the filing of the notice of foreclosure 
     sale under section 3406(a).

     ``Sec. 3408. Stay

       ``If, prior to the time of sale, foreclosure proceedings 
     under this subchapter are stayed in any manner, including the 
     filing of bankruptcy, no person may thereafter cure the 
     default under the provisions of section 3407(a)(2). If the 
     default is not cured at the time a stay is terminated, the 
     foreclosure trustee shall proceed to sell the security 
     property as provided in this subchapter.

     ``Sec. 3409. Conduct of sale; postponement

       ``(a) Sale Procedures.--Foreclosure sale pursuant to this 
     subchapter shall be at public auction and shall be scheduled 
     to begin at a time between the hours of 9:00 a.m. and 4:00 
     p.m. local time. The foreclosure sale shall be held at the 
     location specified in the notice of foreclosure sale, which 
     shall be a location where real estate foreclosure auctions 
     are customarily held in the county or one of the counties in 
     which the property to be sold is located or at a courthouse 
     therein, or upon the property to be sold. Sale of security 
     property situated in two or more counties may be held in any 
     one of the counties in which any part of the security 
     property is situated. The foreclosure trustee may designate 
     the order in which multiple tracts of security property are 
     sold.
       ``(b) Bidding Requirements.--Written one-price sealed bids 
     shall be accepted by the foreclosure trustee, if submitted by 
     the agency head or other persons for entry by announcement by 
     the foreclosure trustee at the sale. The sealed bids shall be 
     submitted in accordance with the terms set forth in the 
     notice of foreclosure sale. The agency head or any other 
     person may bid at the foreclosure sale, even if the agency 
     head or other person previously submitted a written one-price 
     bid. The agency head may bid a credit against the debt due 
     without the tender or payment of cash. The foreclosure 
     trustee may serve as auctioneer, or may employ an auctioneer 
     who may be paid from the sale proceeds. If an auctioneer is 
     employed, the foreclosure trustee is not required to attend 
     the sale. The foreclosure trustee or an auctioneer may bid as 
     directed by the agency head.
       ``(c) Postponement of Sale.--The foreclosure trustee shall 
     have discretion, prior to or at the time of sale, to postpone 
     the foreclosure sale. The foreclosure trustee may postpone a 
     sale to a later hour the same day by announcing or posting 
     the new time and place of the foreclosure sale at the time 
     and place originally scheduled for the foreclosure sale. The 
     foreclosure trustee may instead postpone the foreclosure sale 
     for not fewer than 9 nor more than 31 days, by serving notice 
     that the foreclosure sale has been postponed to a specified 
     date, and the notice may include any revisions the 
     foreclosure trustee deems appropriate. The notice shall be 
     served by publication, mailing, and posting in accordance 
     with section 3406 (b) and (c), except that publication may be 
     made on any of three separate days prior to the new date of 
     the foreclosure sale, and mailing may be made at any time at 
     least 7 days prior to the new date of the foreclosure sale.
       ``(d) Liability of Successful Bidder Who Fails To Comply.--
     The foreclosure trustee may require a bidder to make a cash 
     deposit before the bid is accepted. The amount or percentage 
     of the cash deposit shall be stated by the foreclosure 
     trustee in the notice of foreclosure sale. A successful 
     bidder at the foreclosure sale who fails to comply with the 
     terms of the sale shall forfeit the cash deposit or, at the 
     election of the foreclosure trustee, shall be liable to the 
     agency on a subsequent sale of the property for all net 
     losses incurred by the agency as a result of such failure.
       ``(e) Effect of Sale.--Any foreclosure sale held in 
     accordance with this subchapter shall be conclusively 
     presumed to have been conducted in a legal, fair, and 
     commercially reasonable manner. The sale price shall be 
     conclusively presumed to constitute the reasonably equivalent 
     value of the security property.

     ``Sec. 3410. Transfer of title and possession

       ``(a) Deed.--After receipt of the purchase price in 
     accordance with the terms of the sale as provided in the 
     notice of foreclosure sale, the foreclosure trustee shall 
     execute and deliver to the purchaser a deed conveying the 
     security property to the purchaser that grants and conveys 
     title to the security property without warranty or covenants 
     to the purchaser. The execution of the foreclosure trustee's 
     deed shall have the effect of conveying all of the right, 
     title, and interest in the security property covered by the 
     mortgage. Notwithstanding any other law to the contrary, the 
     foreclosure trustee's deed shall be a conveyance of the 
     security property and not a quitclaim. No judicial proceeding 
     shall be required ancillary or supplementary to the 
     procedures provided in this subchapter to establish the 
     validity of the conveyance.
       ``(b) Death of Purchaser Prior to Consummation of Sale.--If 
     a purchaser dies before execution and delivery of the deed 
     conveying the security property to the purchaser, the 
     foreclosure trustee shall execute and deliver the deed to the 
     representative of the purchaser's estate upon payment of the 
     purchase price in accordance with the terms of sale. Such 
     delivery to the representative of the purchaser's estate 
     shall have the same effect as if accomplished during the 
     lifetime of the purchaser.
       ``(c) Purchaser Considered Bona Fide Purchaser Without 
     Notice.--The purchaser of property under this subchapter 
     shall be presumed to be a bona fide purchaser without notice 
     of defects, if any, in the title conveyed to the purchaser.
       ``(d) Possession by Purchaser; Continuing Interests.--A 
     purchaser at a foreclosure sale conducted pursuant to this 
     subchapter shall be entitled to possession upon passage of 
     title to the security property, subject to any interest or 
     interests senior to that of the mortgage. The right to 
     possession of any person without an interest senior to the 
     mortgage who is in possession of the property shall terminate 
     immediately upon the passage of title to the security 
     property, and the person shall vacate the security property 
     immediately. The purchaser shall be entitled to take any 
     steps available under Federal law or State law to obtain 
     possession.
       ``(e) Right of Redemption; Right of Possession.--This 
     subchapter shall preempt all Federal and State rights of 
     redemption, statutory, or common law. Upon conclusion of the 
     public auction of the security property, no person shall have 
     a right of redemption.
       ``(f) Prohibition of Imposition of Tax on Conveyance by the 
     United States or Agency Thereof.--No tax, or fee in the 
     nature of

[[Page S1985]]

     a tax, for the transfer of title to the security property by 
     the foreclosure trustee's deed shall be imposed upon or 
     collected from the foreclosure trustee or the purchaser by 
     any State or political subdivision thereof.

     ``Sec. 3411. Record of foreclosure and sale

       ``(a) Recital Requirements.--The foreclosure trustee shall 
     recite in the deed to the purchaser, or in an addendum to the 
     foreclosure trustee's deed, or shall prepare an affidavit 
     stating--
       ``(1) the date, time, and place of sale;
       ``(2) the date of the mortgage, the office in which the 
     mortgage is filed, and the location of the filing of the 
     mortgage;
       ``(3) the persons served with the notice of foreclosure 
     sale;
       ``(4) the date and place of filing of the notice of 
     foreclosure sale under section 3406(a);
       ``(5) that the foreclosure was conducted in accordance with 
     the provisions of this subchapter; and
       ``(6) the sale amount.
       ``(b) Effect of Recitals.--The recitals set forth in 
     subsection (a) shall be prima facie evidence of the truth of 
     such recitals. Compliance with the requirements of subsection 
     (a) shall create a conclusive presumption of the validity of 
     the sale in favor of bona fide purchasers and encumbrancers 
     for value without notice.
       ``(c) Deed To Be Accepted for Filing.--The register of 
     deeds or other appropriate official of the county or counties 
     where real estate deeds are regularly filed shall accept for 
     filing and shall file the foreclosure trustee's deed and 
     affidavit, if any, and any other instruments submitted for 
     filing in relation to the foreclosure of the security 
     property under this subchapter.

     ``Sec. 3412. Effect of sale

       ``A sale conducted under this subchapter to a bona fide 
     purchaser shall bar all claims upon the security property 
     by--
       ``(1) any person to whom the notice of foreclosure sale was 
     mailed as provided in this subchapter who claims an interest 
     in the property subordinate to that of the mortgage, and the 
     heir, devisee, executor, administrator, successor, or 
     assignee claiming under any such person;
       ``(2) any person claiming any interest in the property 
     subordinate to that of the mortgage, if such person had 
     actual knowledge of the sale;
       ``(3) any person so claiming, whose assignment, mortgage, 
     or other conveyance was not filed in the proper place for 
     filing, or whose judgment or decree was not filed in the 
     proper place for filing, prior to the date of filing of the 
     notice of foreclosure sale as required by section 3406(a), 
     and the heir, devisee, executor, administrator, successor, or 
     assignee of such a person; or
       ``(4) any other person claiming under a statutory lien or 
     encumbrance not required to be filed and attaching to the 
     title or interest of any person designated in any of the 
     foregoing subsections of this section.

     ``Sec. 3413. Disposition of sale proceeds

       ``(a) Distribution of Sale Proceeds.--The foreclosure 
     trustee shall distribute the proceeds of the foreclosure sale 
     in the following order--
       ``(1)(A) to pay the commission of the foreclosure trustee, 
     other than an agency employee, the greater of--
       ``(i) the sum of--
       ``(I) 3 percent of the first $1,000 collected, plus
       ``(II) 1.5 percent on the excess of any sum collected over 
     $1,000; or
       ``(ii) $250; and
       ``(B) the amounts described in subparagraph (A)(i) shall be 
     computed on the gross proceeds of all security property sold 
     at a single sale;
       ``(2) to pay the expense of any auctioneer employed by the 
     foreclosure trustee, if any, except that the commission 
     payable to the foreclosure trustee pursuant to paragraph (1) 
     shall be reduced by the amount paid to an auctioneer, unless 
     the agency head determines that such reduction would 
     adversely affect the ability of the agency head to retain 
     qualified foreclosure trustees or auctioneers;
       ``(3) to pay for the costs of foreclosure, including--
       ``(A) reasonable and necessary advertising costs and 
     postage incurred in giving notice pursuant to section 3406;
       ``(B) mileage for posting notices and for the foreclosure 
     trustee's or auctioneer's attendance at the sale at the rate 
     provided in section 1921 of title 28, United States Code, for 
     mileage by the most reasonable road distance;
       ``(C) reasonable and necessary costs actually incurred in 
     connection with any search of title and lien records; and
       ``(D) necessary costs incurred by the foreclosure trustee 
     to file documents;
       ``(4) to pay valid real property tax liens or assessments, 
     if required by the notice of foreclosure sale;
       ``(5) to pay any liens senior to the mortgage, if required 
     by the notice of foreclosure sale;
       ``(6) to pay service charges and advancements for taxes, 
     assessments, and property insurance premiums; and
       ``(7) to pay late charges and other administrative costs 
     and the principal and interest balances secured by the 
     mortgage, including expenditures for the necessary 
     protection, preservation, and repair of the security property 
     as authorized under the debt instrument or mortgage and 
     interest thereon if provided for in the debt instrument or 
     mortgage, pursuant to the agency's procedure.
       ``(b) Insufficient Proceeds.--In the event there are no 
     proceeds of sale or the proceeds are insufficient to pay the 
     costs and expenses set forth in subsection (a), the agency 
     head shall pay such costs and expenses as authorized by 
     applicable law.
       ``(c) Surplus Monies.--
       ``(1) After making the payments required by subsection (a), 
     the foreclosure trustee shall--
       ``(A) distribute any surplus to pay liens in the order of 
     priority under Federal law or the law of the State where the 
     security property is located; and
       ``(B) pay to the person who was the owner of record on the 
     date the notice of foreclosure sale was filed the balance, if 
     any, after any payments made pursuant to paragraph (1).
       ``(2) If the person to whom such surplus is to be paid 
     cannot be located, or if the surplus available is 
     insufficient to pay all claimants and the claimants cannot 
     agree on the distribution of the surplus, that portion of the 
     sale proceeds may be deposited by the foreclosure trustee 
     with an appropriate official authorized under law to receive 
     funds under such circumstances. If such a procedure for the 
     deposit of disputed funds is not available, and the 
     foreclosure trustee files a bill of interpleader or is sued 
     as a stakeholder to determine entitlement to such funds, the 
     foreclosure trustee's necessary costs in taking or defending 
     such action shall be deducted first from the disputed funds.

     ``Sec. 3414. Deficiency judgment

       ``(a) In General.--If after deducting the disbursements 
     described in section 3413, the price at which the security 
     property is sold at a foreclosure sale is insufficient to pay 
     the unpaid balance of the debt secured by the security 
     property, counsel for the United States may commence an 
     action or actions against any or all debtors to recover the 
     deficiency, unless specifically prohibited by the mortgage. 
     The United States is also entitled to recover any amount 
     authorized by section 3011 and costs of the action.
       ``(b) Limitation.--Any action commenced to recover the 
     deficiency shall be brought within 6 years of the last sale 
     of security property.
       ``(c) Credits.--The amount payable by a private mortgage 
     guaranty insurer shall be credited to the account of the 
     debtor prior to the commencement of an action for any 
     deficiency owed by the debtor. Nothing in this subsection 
     shall curtail or limit the subrogation rights of a private 
     mortgage guaranty insurer.''.

            Subchapter B--Sale of Governors Island, New York

     SEC. 6021. SALE OF GOVERNORS ISLAND, NEW YORK.

       (a) In General.--Subject to the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.), the 
     Administrator of General Services shall dispose of by sale at 
     fair market value all rights, title, and interests of the 
     United States in and to the land of, and improvements to, 
     Governors Island, New York.
       (b) Right of First Refusal.--Before a sale is made under 
     subsection (a) to any other parties, the State of New York 
     and the city of New York shall be given the right of first 
     refusal to purchase all or part of Governors Island. Such 
     right may be exercised by either the State of New York or the 
     city of New York or by both parties acting jointly.
       (c) Proceeds from Sale.--Amounts received by the 
     Administrator from the sale shall be--
       (1) made available to pay for costs associated with moving 
     Coast Guard vessels, equipment, and facilities presently 
     sited at Governors Island to a different site, the cost of 
     renovation or construction of appropriate facilities at such 
     site, and the costs of environmental clean-up activities on 
     Governors Island undertaken by the Coast Guard; and
       (2) deposited as miscellaneous receipts in the general 
     account of the United States Treasury.

                    CHAPTER 3--SPENDING DESIGNATION

     SEC. 5501. EMERGENCY DESIGNATION.

       Congress hereby designates all amounts in this entire title 
     as emergency requirements for all purposes of the Balanced 
     Budget and Emergency Deficit Control Act of 1985: Provided, 
     That these amounts shall only be available to the extent an 
     official budget request for a specific dollar amount that 
     includes designation of the entire amount of the request as 
     an emergency requirement as defined in the Balanced Budget 
     and Emergency Deficit Control Act of 1985 is transmitted by 
     the President to Congress.
                                 ______


                 BIDEN (AND OTHERS) AMENDMENT NO. 3483

  Mr. BIDEN (for himself, Mr. Kerry, Mr. Wellstone, Mr. Daschle, Mr. 
Lautenberg, Mr. Levin, Ms. Mikulski, Mr. Harkin, and Mrs. Feinstein) 
proposed an amendment to amendment No. 3466 proposed by Mr. Hatfield to 
the bill H.R. 3019, supra; as follows:

       On page 3, line 8, add after ``basis.'':


                  community oriented policing services

       For public safety and community policing grants pursuant to 
     Title I of the Violent Crime Control and Law Enforcement Act 
     of 1994 (Public Law 103-322) and related administrative 
     costs, $1,788,000,000, to remain available until expended, 
     which shall be derived from the Violent Crime Reduction Trust 
     Fund.

[[Page S1986]]

       On page 29, line 2, strike all after ``(`the 1990 Act');'' 
     through ``That'' on page 29, line 18 and insert in lieu 
     thereof: ``$1,217,200,000, to remain available until 
     expended, which shall be derived from the Violent Crime 
     Reduction Trust Fund; of which''.
                                 ______


                   SANTORUM AMENDMENT NOS. 3484-3488

  (Ordered to lie on the table.)
  Mr. SANTORUM submitted five amendments intended to be proposed by him 
to the amendment No. 3466 proposed by Mr. Hatfield to the bill H.R. 
3019, supra; as follows:

                           Amendment No. 3484

     SEC.   . SENSE OF THE SENATE REGARDING THE BUDGET TREATMENT 
                   OF FEDERAL DISASTER ASSISTANCE.

       Sense of the Senate.--It is the Sense of the Senate that 
     the Conference on S. 1594, making Omnibus Consolidated 
     Rescissions & Appropriations for Fiscal Year ending September 
     30, 1996, and for other purposes, shall find sufficient 
     funding reductions to offset the costs of providing any 
     federal disaster assistance.
                                                                    ____


                           Amendment No. 3485

     SEC.   . SENSE OF THE SENATE REGARDING THE BUDGET TREATMENT 
                   OF FEDERAL DISASTER ASSISTANCE.

       Sense of the Senate.--It is the Sense of the Senate that 
     the Congress and the relevant committees of the Senate shall 
     examine the manner in which federal disaster assistance is 
     provided and develop a long-term funding plan for the 
     budgetary treatment of any federal assistance, providing for 
     such funds out of existing budget allocation rather than 
     taking the expenditures off budget and adding to the federal 
     deficit.
                                                                    ____


                           Amendment No. 3486

       Beginning on page 730, strike line 1 and all that follows 
     through page 750, line 14, and insert the following:

 TITLE II--EMERGENCY SUPPLEMENTAL EXPENDITURES AND APPROPRIATIONS FOR 
               THE FISCAL YEAR ENDING SEPTEMBER 30, 1996

                               CHAPTER 1

                       DEPARTMENT OF AGRICULTURE

                 Natural Resources Conservation Service


               WATERSHED AND FLOOD PREVENTION OPERATIONS

       For an additional amount for ``Watershed and Flood 
     Prevention Operations'' to repair damages to waterways and 
     watersheds resulting from flooding in the Pacific Northwest, 
     the Northeast blizzards and floods, and other natural 
     disasters, the Director of the Federal Emergency Management 
     Agency shall use $107,514,000, to the extent funds are 
     available to the Director as of the date of enactment of this 
     Act: Provided, That if the Secretary determines that the cost 
     of land and restoration of farm structures exceeds the fair 
     market value of certain affected cropland, the Secretary may 
     use sufficient amounts from funds provided under this heading 
     to accept bids from willing sellers to provide conservation 
     easements for the cropland inundated by floods as provided 
     for by the wetlands reserve program, authorized by subchapter 
     C of chapter 1 of subtitle D of title XII of the Food 
     Security Act of 1985 (16 U.S.C. 3837 et seq.).

                    Consolidated Farm Service Agency


                     EMERGENCY CONSERVATION PROGRAM

       For necessary expenses to carry into effect the program 
     authorized in sections 401, 402, and 404 of the Agricultural 
     Credit Act of 1978 (16 U.S.C. 2201 et seq.) for expenses 
     resulting from floods in the Pacific Northwest and other 
     natural disasters, the Director of the Federal Emergency 
     Management Agency shall use $30,000,000, to the extent funds 
     are available to the Director as of the date of enactment of 
     this Act, as authorized by section 404 of the Act (16 U.S.C. 
     2204).

            Rural Housing and Community Development Service


              RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT

       For an additional amount for the ``Rural Housing Insurance 
     Fund Program Account'' for the cost of direct loans to assist 
     in the recovery from floods in the Pacific Northwest and 
     other natural disasters, the Director of the Federal 
     Emergency Management Agency shall use $5,000,000, to the 
     extent funds are available to the Director as of the date of 
     enactment of this Act, for the cost of direct loans under 
     section 502 of the Housing Act of 1949 (42 U.S.C. 1472), and 
     $1,500,000 for the cost of housing repair loans under section 
     504 of the Housing Act of 1949 (42 U.S.C. 1474).


                 VERY LOW-INCOME HOUSING REPAIR GRANTS

       For an additional amount for ``Very Low-Income Housing 
     Repair Grants'' to make housing repairs needed as a result of 
     floods and other natural disasters, pursuant to section 504 
     of the Housing Act of 1949 (42 U.S.C. 1474), the Director of 
     the Federal Emergency Management Agency shall use $1,100,000, 
     to the extent funds are available to the Director as of the 
     date of enactment of this Act.

                        Rural Utilities Service


                   rural utilities assistance program

       For an additional amount for the ``Rural Utilities 
     Assistance Program'' for the cost of direct loans and grants 
     to assist in the recovery from floods in the Pacific 
     Northwest and other natural disasters, the Director of the 
     Federal Emergency Management Agency shall use $11,000,000, to 
     the extent funds are available to the Director as of the date 
     of enactment of this Act: Provided, That such funds may be 
     available for emergency community water assistance grants as 
     authorized by section 306B of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926b).

                        Administrative Provision

       With the prior approval of the House and Senate Committees 
     on Appropriations, funds made available to the Department of 
     Agriculture under this chapter may be transferred by the 
     Secretary of Agriculture between accounts of the Department 
     of Agriculture included in this Act to satisfy emergency 
     disaster funding requirements.

                               CHAPTER 2

DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE, THE JUDICIARY, AND RELATED 
                                AGENCIES

                         DEPARTMENT OF COMMERCE

                  Economic Development Administration


                economic development assistance programs

       For an additional amount for emergency expenses resulting 
     from flooding in the Pacific Northwest, the Director of the 
     Federal Emergency Management Agency shall use $15,000,000, to 
     the extent funds are available to the Director as of the date 
     of enactment of this Act, for grants and related expenses 
     pursuant to the Public Works and Economic Development Act of 
     1965 (42 U.S.C. 3121 et seq.); and, in addition, $1,500,000 
     for administrative expenses which may be transferred to and 
     merged with the appropriations for ``Salaries and Expenses''.

            National Oceanic and Atmospheric Administration


                              construction

       For an additional amount for ``Construction'' for emergency 
     expenses resulting from flooding in the Pacific Northwest and 
     other natural disasters, the Director of the Federal 
     Emergency Management Agency shall use $10,000,000, to the 
     extent funds are available to the Director as of the date of 
     enactment of this Act.

                             RELATED AGENCY

                     Small Business Administration


                     disaster loans program account

       For an additional amount for ``Disaster Loans Program 
     Account'', the Director of the Federal Emergency Management 
     Agency shall use $69,700,000 for the cost of direct loans, to 
     the extent funds are available to the Director as of the date 
     of enactment of this Act: Provided, That such costs, 
     including the cost of modifying such loans, shall be as 
     defined in section 502 of the Congressional Budget Act of 
     1974 (2 U.S.C. 661a); and for administrative expenses to 
     carry out the direct loan program, $30,300,000, to the extent 
     funds are available to the Director as of the date of 
     enactment of this Act.

                               CHAPTER 3

                      ENERGY AND WATER DEVELOPMENT

                      DEPARTMENT OF DEFENSE--CIVIL

                         DEPARTMENT OF THE ARMY

                       Corps of Engineers--Civil


                   operation and maintenance, general

       For an additional amount for ``Operation and Maintenance, 
     General'', the Director of the Federal Emergency Management 
     Agency shall use $30,000,000, to the extent funds are 
     available to the Director as of the date of enactment of this 
     Act.


                 flood control and coastal emergencies

       For an additional amount for ``Flood Control and Coastal 
     Emergencies'', the Director of the Federal Emergency 
     Management Agency shall use $135,000,000, to the extent funds 
     are available to the Director as of the date of enactment of 
     this Act.

                       DEPARTMENT OF THE INTERIOR

                         Bureau of Reclamation


                          CONSTRUCTION PROGRAM

       For an additional amount for the ``Construction Program'', 
     the Director of the Federal Emergency Management Agency shall 
     use $18,000,000, to the extent funds are available to the 
     Director as of the date of enactment of this Act.

                               CHAPTER 4

            DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES

                       DEPARTMENT OF THE INTERIOR

                       Bureau of Land Management


                        Construction and Access

       For an additional amount for ``Construction and Access'', 
     the Director of the Federal Emergency Management Agency shall 
     use $5,000,000, to the extent funds are available to the 
     Director as of the date of enactment of this Act, to repair 
     roads, culverts, bridges, facilities, fish and wildlife 
     protective structures, and recreation sites, damaged because 
     of the Pacific Northwest flooding.


                   Oregon and California Grant Lands

       For an additional amount for ``Oregon and California Grant 
     Lands'', the Director of the Federal Emergency Management 
     Agency shall use $35,000,000, to the extent funds are 
     available to the Director as of the date of enactment of this 
     Act, to repair roads, culverts, bridges, facilities, fish and 
     wildlife protective structures, and recreation sites, damaged 
     because of the Pacific Northwest flooding.

[[Page S1987]]

                United States Fish and Wildlife Service


                              Construction

       For an additional amount for ``Construction'', the Director 
     of the Federal Emergency Management Agency shall use 
     $32,000,000, to the extent funds are available to the 
     Director as of the date of enactment of this Act, to repair 
     damage caused by hurricanes, floods, and other acts of 
     nature.

                         National Park Service


                              Construction

       For an additional amount for ``Construction'', the Director 
     of the Federal Emergency Management Agency shall use 
     $47,000,000, to the extent funds are available to the 
     Director as of the date of enactment of this Act, to repair 
     damage caused by hurricanes, floods, and other acts of 
     nature.

                    United States Geological Survey


                 Surveys, Investigations, and Research

       For an additional amount for ``Surveys, Investigations, and 
     Research'', the Director of the Federal Emergency Management 
     Agency shall use $2,000,000, to the extent funds are 
     available to the Director as of the date of enactment of this 
     Act, for costs related to hurricanes, floods, and other acts 
     of nature.

                        Bureau of Indian Affairs


                      Operation of Indian Programs

       For an additional amount for ``Operation of Indian 
     Programs'', the Director of the Federal Emergency Management 
     Agency shall use $500,000, to the extent funds are available 
     to the Director as of the date of enactment of this Act, for 
     emergency operations and repairs related to winter floods.


                              Construction

       For an additional amount for ``Construction'', the Director 
     of the Federal Emergency Management Agency shall use 
     $16,500,000, to the extent funds are available to the 
     Director as of the date of enactment of this Act, for 
     emergency repairs related to winter floods.

                 Territorial and International Affairs


                       Assistance to Territories

       For an additional amount for ``Assistance to Territories'', 
     the Director of the Federal Emergency Management Agency shall 
     use $13,000,000, to the extent funds are available to the 
     Director as of the date of enactment of this Act, for 
     recovery efforts from Hurricane Marilyn.

                       DEPARTMENT OF AGRICULTURE


                         National Forest System

       For an additional amount for ``National Forest System'', 
     the Director of the Federal Emergency Management Agency shall 
     use $26,600,000, to the extent funds are available to the 
     Director as of the date of enactment of this Act, to repair 
     damage caused by hurricanes, floods, and other acts of 
     nature, including $300,000 for the costs associated with 
     emergency removal and remediation, including access repairs, 
     at the Amalgamated Mine site in the Willamette National 
     Forest, containing sulphur-rich and other mining tailings, in 
     order to prevent contamination of Battle Ax Creek, and the 
     Little North Fork of the Santiam River, from which the city 
     of Salem, Oregon, obtains its municipal water supply.


                              Construction

       For an additional amount for ``Construction'', the Director 
     of the Federal Emergency Management Agency shall use 
     $60,800,000, to the extent funds are available to the 
     Director as of the date of enactment of this Act.

                               CHAPTER 5

                      DEPARTMENT OF TRANSPORTATION

                        Office of the Secretary


                        PAYMENTS TO AIR CARRIERS

       The first proviso under the heading ``Payments to Air 
     Carriers'' in title I of the Department of Transportation and 
     Related Agencies Appropriations Act, 1996 (Public Law 104-50; 
     109 Stat. 437), is amended to read as follows: ``Provided, 
     That none of the funds in this Act shall be available for the 
     implementation or execution of programs in excess of 
     $22,600,000 from the Airport and Airway Trust Fund for the 
     Payments to Air Carriers program in fiscal year 1996:''.

                     Federal Highway Administration


                          FEDERAL-AID HIGHWAYS

       For the emergency fund authorized by section 125 of title 
     23, United States Code, to cover expenses arising from the 
     January 1996 flooding in the Mid-Atlantic, Northeast, and 
     Northwest States and other disasters, the Director of the 
     Federal Emergency Management Agency shall use $300,000,000, 
     to the extent funds are available to the Director as of the 
     date of enactment of this Act: Provided, That section 
     125(b)(1) of title 23, United States Code, shall not apply to 
     projects relating to the January 1996 flooding in the Mid-
     Atlantic, Northeast, and Northwest States.

                    Federal Railroad Administration


                     LOCAL RAIL FREIGHT ASSISTANCE

       For expenses pursuant to chapter 221 of title 49, United 
     States Code, to repair and rebuild rail lines of other than 
     class I railroads (as defined by the Surface Transportation 
     Board) or railroads owned or controlled by a class I 
     railroad, having carried 5,000,000 gross ton miles or less 
     per mile during the prior year, and damaged as a result of 
     the floods of 1996, the Director of the Federal Emergency 
     Management Agency shall use $10,000,000, to the extent funds 
     are available to the Director as of the date of enactment of 
     this Act: Provided, That for the purposes of administering 
     this emergency relief, the Secretary of Transportation shall 
     have authority to make funds available notwithstanding 
     subsections (a)(1), (a)(3), and (d) of section 22101, 
     sections 22102 through 22104, section 22105(a), and 
     subsections (a) and (b) of section 22108, of title 49, United 
     States Code, as the Secretary considers appropriate and shall 
     consider the extent to which the State has available 
     unexpended local rail freight assistance funds or available 
     repaid loan funds: Provided further, That, notwithstanding 
     chapter 221 of title 49, United States Code, the Secretary 
     may prescribe the form and time for applications for 
     assistance made available under this heading.

                     Federal Transit Administration


                       MASS TRANSIT CAPITAL FUND

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

       For an additional amount for payment of obligations 
     incurred in carrying out section 5338(b) of title 49, United 
     States Code, administered by the Federal Transit 
     Administration, the Director of the Federal Emergency 
     Management Agency shall use $375,000,000, to the extent funds 
     are available to the Director as of the date of enactment of 
     this Act.

                               CHAPTER 6

 DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT AND 
                          INDEPENDENT AGENCIES

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                   Community Planning and Development


                      Community Development Grants

       For an additional amount for ``Community Development 
     Grants'', the Director of the Federal Emergency Management 
     Agency shall use $100,000,000, to the extent funds are 
     available to the Director as of the date of enactment of this 
     Act, for emergency expenses and repairs related to recent 
     presidentially declared disaster areas, including up to 
     $10,000,000 which may be made available for rental subsidy 
     contracts under the housing certificate program and the 
     housing voucher program under section 8 of the United States 
     Housing Act of 1937 (42 U.S.C. 1437f), except that such 
     amount shall be available only for temporary housing 
     assistance, not in excess of 1 year in duration, and shall 
     not be subject to renewal.

                  Federal Emergency Management Agency


                            disaster relief

                     (including transfer of funds)

       For an additional amount for ``Disaster Relief'', the 
     Director of the Federal Emergency Management Agency shall use 
     $150,000,000, to the extent funds are available to the 
     Director as of the date of enactment of this Act, which, in 
     whole or in part, may be transferred to the Disaster 
     Assistance Direct Loan Program Account for the cost of direct 
     loans as authorized under section 417 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5184): Provided, That such transfer of funds may be 
     made to subsidize gross obligations for the principal amount 
     of direct loans not to exceed $170,000,000 under that 
     section: Provided further, That any such transfer of funds 
     shall be made only on certification by the Director of the 
     Federal Emergency Management Agency that all requirements of 
     that section will be complied with.
       On page 756, strike lines 8 through 10 and insert the 
     following:
       Sec. 1102. It is the sense of Congress that Congress should 
     appropriate, during the period consisting of fiscal years 
     1997 through 2001, a total of not less than $1,250,000,000 to 
     the Federal Emergency Management Agency to reimburse the 
     Agency for the expenditures required under chapters 1 through 
     6.
                                                                    ____


                           Amendment No. 3487

       At the end of title II of the committee substitute, add the 
     following:
       Sec.  .(a) Notwithstanding any other provision of this 
     title, none of the amounts provided in this title is 
     designated by Congress as an emergency requirement pursuant 
     to section 251(b)(2)(D)(I) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985.
       (b) Each amount provided in a nonexempt discretionary 
     spending nondefense account covered by title I is reduced by 
     the uniform percentage necessary to offset nondefense 
     discretionary amounts provided in this title. The reductions 
     required by this subsection shall be implemented generally in 
     accordance with section 251 of the Balanced Budget and 
     Emergency Deficit Control Act of 1985.
                                                                    ____


                           Amendment No. 3488

       At the end of title II of the committee substitute, add the 
     following:
       Sec.  .(a) Notwithstanding any other provision of this 
     title, none of the amounts provided in this title is 
     designated by Congress as an emergency requirement pursuant 
     to section 251(b)(2)(D)(I) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985.
       (b) Each amount provided for `Salaries and Expenses' and 
     `Administrative Expenses' within Title I are reduced by the 
     uniform percentage necessary to offset nondefense 
     discretionary amounts provided in this title, except for--
       (A) Amounts Provided Under the Heading:
       (1) ``Federal Emergency Management Agency;''
       (i) ``Salaries and Expenses.''


[[Page S1988]]


     The reductions required by this subsection shall be 
     implemented generally in accordance with section 251 of the 
     Balanced Budget and Emergency Deficit Control Act of 1985.
                                 ______


                       GORTON AMENDMENT NO. 3489

  Mr. GREGG (for Mr. Gorton) proposed an amendment to amendment No. 
3466 proposed by Mr. Hatfield to the bill H.R. 3019, supra; as follows:

     Amend page 113, line 11 by striking the period at the end of 
     the sentence and adding ``: Provided further, That the FCC 
     shall pay the travel-related expenses of the Federal-State 
     Joint Board on Universal Service for those activities 
     described in the Telecommunications Act of 1996 (47 U.S.C. 
     254(a)(1)).''
                                 ______


                 GRAMM (AND OTHERS) AMENDMENT NO. 3490

  Mr. GRAMM (for himself, Mr. Santorum, Mr. McCain, and Mr. Nickles) 
proposed an amendment to amendment No. 3466 proposed by Mr. Hatfield to 
the bill H.R. 3019, supra; as follows:

       At the end of title II of the committee substitute, add the 
     following:
       Sec.   . (a) Notwithstanding any other provision of this 
     title, none of the amounts provided in this title is 
     designated by Congress as an emergency requirement pursuant 
     to section 25(b)(2)(D)(i) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985.
       (b) Each amount provided in a nonexempt discretionary 
     spending nondefense account for fiscal year 1996 is reduced 
     by the uniform percentage necessary to offset non-defense 
     discretionary amounts provided in this title. The reductions 
     required by this subsection shall be implemented generally in 
     accordance with section 251 of the Balanced Budget and 
     Emergency Deficit Control Act of 1985.
                                 ______


                        BIDEN AMENDMENT NO. 3491

  Mr. GREGG (for Mr. Biden) proposed an amendment to amendment No. 2466 
proposed by Mr. Hatfield to the bill H.R. 3019, supra; as follows:

       On page 29, line 20, after ``Provided further,'' insert 
     ``That not less than $20,000,000 of this amount shall be for 
     Boys & Girls Clubs of America for the establishment of Boys & 
     Girls Clubs in public housing facilities and other areas in 
     cooperation with state and local law enforcement: Provided 
     further,''
                                 ______


                 GRAMS (AND OTHERS) AMENDMENT NO. 3492

  Mr. GRAMS (for himself, Mr. McCain, Mr. Faircloth, Mr. Inhofe, Mrs. 
Hutchison, and Mr. Helms) proposed an amendment to amendment No. 3466 
proposed by Mr. Hatfield to the bill H.R. 3019, supra; as follows:

         At the end of the amendment (before the short title), add 
     the following new title:

                  TITLE V--DEFICIT REDUCTION LOCK-BOX

     SEC. 501. SHORT TITLE.

       This title may be cited as the ``Deficit Reduction Lock-box 
     Act of 1996''.

     SEC. 502. DEFICIT REDUCTION LOCK-BOX LEDGER.

       (a) Establishment of Ledger.--Title III of the 
     Congressional Budget Act of 1974 is amended by adding at the 
     end the following new section:


                  ``deficit reduction lock-box ledger

       ``Sec. 314. (a) Establishment of Ledger.--The Director of 
     the Congressional Budget Office (hereafter in this section 
     referred to as the ``Director'') shall maintain a ledger to 
     be known as the ``Deficit Reduction Lock-box Ledger''. The 
     Ledger shall be divided into entries corresponding to the 
     subcommittees of the Committees on Appropriations. Each entry 
     shall consist of three parts: the `House Lock-box Balance'; 
     the `Senate Lock-box Balance'; and the `Joint House-Senate 
     Lock-box Balance'.
       ``(b) Components of Ledger.--Each component in an entry 
     shall consist only of amounts credited to it under subsection 
     (c). No entry of a negative amount shall be made.
       ``(c) Credit of Amounts to Ledger.--(1) The Director shall, 
     upon the engrossment of any appropriation bill by the House 
     of Representatives and upon the engrossment of that bill by 
     the Senate, credit to the applicable entry balance of that 
     House amounts of new budget authority and outlays equal to 
     the net amounts of reductions in new budget authority and in 
     outlays resulting from amendments agreed to by that House to 
     that bill.
       ``(2) The Director shall, upon the engrossment of Senate 
     amendments to any appropriation bill, credit to the 
     applicable Joint House-Senate Lock-box Balance the amounts of 
     new budget authority and outlays equal to--
       ``(A) an amount equal to one-half of the sum of (i) the 
     amount of new budget authority in the House Lock-box Balance, 
     plus (ii) the amount of new budget authority in the Senate 
     Lock-box Balance for that bill; and
       ``(B) an amount equal to one-half of the sum of (i) the 
     amount of outlays in the House Lock-box Balance, plus (ii) 
     the amount of outlays in the Senate Lock-box Balance for that 
     bill.
       ``(3) For purposes of calculating under this section the 
     net amounts of reductions in new budget authority and in 
     outlays resulting from amendments agreed to by the Senate on 
     an appropriation bill, the amendments reported to the Senate 
     by its Committee on Appropriations shall be considered to be 
     part of the original text of the bill.
       ``(d) Definition.--As used in this section, the term 
     `appropriation bill' means any general or special 
     appropriation bill, and any bill or joint resolution making 
     supplemental, deficiency, or continuing appropriations 
     through the end of a fiscal year.''.
       (b) Conforming Amendment.--The table of contents set forth 
     in section 1(b) of the Congressional Budget and Impoundment 
     Control Act of 1974 is amended by inserting after the item 
     relating to section 313 the following new item:

``Sec. 314. Deficit reduction lock-box ledger.''.

     SEC. 503. TALLY DURING HOUSE CONSIDERATION.

       There shall be available to Members in the House of 
     Representatives during consideration of any appropriations 
     bill by the House a running tally of the amendments adopted 
     reflecting increases and decreases of budget authority in the 
     bill as reported.

     SEC. 504. DOWNWARD ADJUSTMENT OF 602(a) ALLOCATIONS AND 
                   SECTION 602(b) SUBALLOCATIONS.

       (a) Allocations.--Section 602(a) of the Congressional 
     Budget Act of 1974 is amended by adding at the end the 
     following new paragraph:
       ``(5) Upon the engrossment of Senate amendments to any 
     appropriation bill (as defined in section 314(d)) for a 
     fiscal year, the amounts allocated under paragraph (1) or (2) 
     to the Committee on Appropriations of each House upon the 
     adoption of the most recent concurrent resolution on the 
     budget for that fiscal year shall be adjusted downward by the 
     amounts credited to the applicable Joint House-Senate Lock-
     box Balance under section 314(c)(2). The revised levels of 
     budget authority and outlays shall be submitted to each House 
     by the chairman of the Committee on the Budget of that House 
     and shall be printed in the Congressional Record.''.
       (b) Suballocations.--Section 602(b)(1) of the Congressional 
     Budget Act of 1974 is amended by adding at the end the 
     following new sentence: ``Whenever an adjustment is made 
     under subsection (a)(5) to an allocation under that 
     subsection, the chairman of the Committee on Appropriations 
     of each House shall make downward adjustments in the most 
     recent suballocations of new budget authority and outlays 
     under subparagraph (A) to the appropriate subcommittees of 
     that committee in the total amounts of those adjustments 
     under section 314(c)(2). The revised suballocations shall be 
     submitted to each House by the chairman of the Committee on 
     Appropriations of that House and shall be printed in the 
     Congressional Record.''.

     SEC. 505. PERIODIC REPORTING OF LEDGER STATEMENTS.

       Section 308(b)(1) of the Congressional Budget Act of 1974 
     is amended by adding at the end the following new sentence: 
     ``Such reports shall also include an up-to-date tabulation of 
     the amounts contained in the ledger and each entry 
     established by section 314(a).''.

     SEC. 506. DOWNWARD ADJUSTMENT OF DISCRETIONARY SPENDING 
                   LIMITS.

       The discretionary spending limits for new budget authority 
     and outlays for any fiscal year set forth in section 
     601(a)(2) of the Congressional Budget Act of 1974, as 
     adjusted in strict conformance with section 251 of the 
     Balanced Budget and Emergency Deficit Control Act of 1985, 
     shall be reduced by the amounts set forth in the final 
     regular appropriation bill for that fiscal year or joint 
     resolution making continuing appropriations through the end 
     of that fiscal year. Those amounts shall be the sums of the 
     Joint House-Senate Lock-box Balances for that fiscal year, as 
     calculated under section 602(a)(5) of the Congressional 
     Budget Act of 1974. That bill or joint resolution shall 
     contain the following statement of law: ``As required by 
     section 6 of the Deficit Reduction Lock-box Act of 1995, for 
     fiscal year [insert appropriate fiscal year] and each 
     outyear, the adjusted discretionary spending limit for new 
     budget authority shall be reduced by $ [insert appropriate 
     amount of reduction] and the adjusted discretionary limit for 
     outlays shall be reduced by $ [insert appropriate amount of 
     reduction] for the budget year and each outyear.'' 
     Notwithstanding section 904(c) of the Congressional Budget 
     Act of 1974, section 306 of that Act as it applies to this 
     statement shall be waived. This adjustment shall be reflected 
     in reports under sections 254(g) and 254(h) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985.

     SEC. 507. ADJUSTMENT FOR STIMULATIVE EFFECT OF REVENUE 
                   REDUCTIONS.

       (a) Amount of Adjustment.--
       (1) OMB.--Effective in 1997 and not later than October 15 
     of each year, the Director of OMB shall estimate the amount 
     of the stimulative economic effect of any provisions enacted 
     beginning with calendar year 1997 reducing revenues with 
     respect to increasing revenues in the fiscal year ending in 
     the year of the estimate. The Director of OMB shall calculate 
     stimulative effect by determining the amount by which actual 
     revenues exceed the projected level of revenues and then 
     estimating the amount of the excess (fiscal dividend excess) 
     attributable to enacted revenue reduction provisions.
       (2) CBO certification.--Not later than October 20, the 
     Director of the CBO shall certify the estimates and 
     projections of the Director of OMB made under this 
     subsection. If

[[Page S1989]]

     the Director of CBO cannot certify the estimates and 
     projections, the Director shall notify Congress and the 
     President of the disagreement and submit revised estimates.
       (b) Reduction of Deficit.--If the Director of OMB 
     determines that a fiscal dividend excess exists under 
     subsection (a) and on November 1, the President may--
       (1) direct the Secretary of the Treasury to pay an amount 
     not to exceed the level of excess to retire debt obligations 
     of the United States; or
       (2) submit a legislative proposal to Congress for reducing 
     taxes by the amount of excess not dedicated to deficit 
     reduction to be considered by Congress as provided in 
     subsection (c).
       (c) Expedited Procedure.--
       (1) Introduction.--Not later than 3 days after the 
     President submits a legislative proposal under subsection 
     (b)(2), the Majority Leaders of the Senate and the House of 
     Representatives shall introduce the proposal in their 
     respective Houses as a bill. If the bill described in the 
     preceding sentence is not introduced as provided in the 
     preceding sentence, then, on the 4th day after the submission 
     of the legislative proposal by the President, any Member of 
     that House may introduce the bill.
       (2) Referral to committee.--A bill described in paragraph 
     (1) introduced in the House of Representatives shall be 
     referred to the Committee on Ways and Means of the House of 
     Representatives. A bill described in paragraph (1) introduced 
     in the Senate shall be referred to the Committee on Finance 
     of the Senate. If more than 1 bill is introduced as provided 
     in paragraph (1), the committee shall consider and report the 
     first bill introduced. Amendments to the bill in committee 
     may not reduce revenues in the bill below the amount proposed 
     by the President. Such a bill may not be reported before the 
     8th day after its introduction.
       (3) Discharge of committee.--If the committee to which is 
     referred a bill described in paragraph (1) has not reported 
     such bill at the end of 15 calendar days after its 
     introduction, such committee shall be deemed to be discharged 
     from further consideration of such bill and such bill shall 
     be placed on the appropriate calendar of the House involved.
       (4) Floor consideration.--
       (A) In general.--When the committee to which a bill is 
     referred has reported, or has been deemed to be discharged 
     (under paragraph (3)) from further consideration of, a bill 
     described in paragraph (1), it is at any time thereafter in 
     order (even though a previous motion to the same effect has 
     been disagreed to) for any Member of the respective House to 
     move to proceed to the consideration of the bill, and all 
     points of order against the bill (and against consideration 
     of the bill) are waived. The motion is highly privileged in 
     the House of Representatives and is privileged in the Senate 
     and is not debatable. The motion is not subject to amendment, 
     or to a motion to postpone, or to a motion to proceed to the 
     consideration of other business. A motion to reconsider the 
     vote by which the motion is agreed to or disagreed to shall 
     not be in order. If a motion to proceed to the consideration 
     of the bill is agreed to, the bill shall remain the 
     unfinished business of the respective House until disposed 
     of.
       (B) Debate.--Consideration of the bill, and on all 
     debatable motions and appeals in connection therewith, shall 
     be limited to not more than 20 hours, which shall be divided 
     equally between those favoring and those opposing the bill. A 
     motion further to limit debate is in order and not debatable. 
     A motion to postpone, or a motion to proceed to the 
     consideration of other business, or a motion to recommit the 
     bill is not in order. A motion to reconsider the vote by 
     which the bill is agreed to or disagreed to is not in order. 
     Debate on amendments to the bill shall be limited to 30 
     minutes equally divided. Amendments to the bill may not 
     reduce revenues in the bill below the amount proposed by the 
     President.
       (C) Vote on final passage.--Immediately following the 
     conclusion of the debate on a bill described in paragraph 
     (1), and a single quorum call at the conclusion of the debate 
     if requested in accordance with the rules of the appropriate 
     House, the vote on final passage of the bill shall occur.
       (D) Rulings of the chair on procedure.--Appeals from the 
     decisions of the Chair relating to the application of the 
     rules of the Senate or the House of Representatives, as the 
     case may be, to the procedure relating to a bill described in 
     paragraph (1) shall be decided without debate.
       (5) Coordination with action by other house.--If, before 
     the passage by one House of a bill of that House described in 
     paragraph (1), that House receives from the other House a 
     bill described in paragraph (1), then the following 
     procedures shall apply:
       (A) The bill of the other House shall not be referred to a 
     committee.
       (B) With respect to a bill described in paragraph (1) of 
     the House receiving the bill--
       (i) the procedure in that House shall be the same as if no 
     bill had been received from the other House; but
       (ii) the vote on final passage shall be on the bill of the 
     other House.
       (6) Rules of house of representatives and senate.--This 
     subsection is enacted by Congress--
       (A) as an exercise of the rulemaking power of the Senate 
     and House of Representatives, respectively, and as such it is 
     deemed a part of the rules of each House, respectively, but 
     applicable only with respect to the procedure to be followed 
     in that House in the case of a bill described in paragraph 
     (1), and it supersedes other rules only to the extent that it 
     is inconsistent with such rules; and
       (B) with full recognition of the constitutional right of 
     either House to change the rules (so far as relating to the 
     procedure of that House) at any time, in the same manner and 
     to the same extent as in the case of any other rule of that 
     House.
       (d) Deficit Reduction if Tax Reductions Not Enacted.--If 
     tax reductions are not enacted by December 31 of the year of 
     the submission of a legislative proposal under subsection 
     (b)(2), the President shall pay an amount equal to the amount 
     by which revenues are not reduced to deficit reduction as 
     provided in subsection (b)(1).
       (e) Definition.--For purposes of this section, the term 
     ``stimulative economic effect of any laws reducing revenues'' 
     refers to laws that have the effect of stimulating savings, 
     investment, job creation, and economic growth.

                          ____________________