[Congressional Record Volume 142, Number 35 (Thursday, March 14, 1996)]
[Senate]
[Pages S2105-S2123]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

                                 ______


              THE 1996 BALANCED BUDGET DOWNPAYMENT ACT, II

                                 ______


                 MURRAY (AND OTHERS) AMENDMENT NO. 3493

  Mrs. MURRAY (for herself, Mr. Leahy, Mr. Baucus, Mr. Bumpers, Mrs. 
Feinstein, Mr. Bradley, Ms. Moseley-Braun, and Mrs. Boxer) proposed an 
amendment to amend 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:

       At the appropriate place, insert the following:
                       TITLE ____--TIMBER SALVAGE

     SEC. ____01. SHORT TITLE.

       This title may be cited as the ``Public Participation in 
     Timber Salvage Act of 1996''.

     SEC. ____02. VOIDING OF CONFLICTING PROVISION.

       Section 325 of the Omnibus Rescissions and Appropriations 
     Act of 1996 is void.

     SEC. ____03. FINDINGS.

       Congress finds that--
       (1) when events such as forest fire, wind storms, or 
     epidemic disease or insect infestations occur, the Forest 
     Service and the Bureau of Land Management should have 
     available the tools necessary to harvest timber expeditiously 
     in order to get a high commodity value from dead or dying 
     trees;
       (2) improving the health of our forests is a national 
     priority that should be addressed through comprehensive 
     analysis and public involvement, and should focus not only on 
     the health of trees, but on the health of the entire forest, 
     including watersheds, soils, fisheries, and wildlife; and
       (3) timber sales, including salvage timber sales, should be 
     conducted in accordance with all applicable laws in order to 
     ensure the sustainability of the components and functions of 
     the forests.
      Subtitle A--Repeal of Emergency Salvage Timber Sale Program

     SEC. ____11. REPEAL OF EMERGENCY SALVAGE TIMBER SALE PROGRAM.

       Section 2001 of Public Law 104-19 (109 Stat. 240; 16 U.S.C. 
     1611 note) is repealed.

     SEC. ____12. EXISTING TIMBER SALE CONTRACTS.

       (a) Suspension.--Notwithstanding any outstanding judicial 
     order or administrative proceeding interpreting subsection 
     (k) of section 2001 of Public Law 104-19 (109 Stat. 240; 16 
     U.S.C. 1611 note) (as in existence prior to the date of 
     enactment of this Act), the Secretary of Agriculture and the 
     Secretary of the Interior shall suspend each timber sale that 
     the Secretary concerned determines that was being undertaken 
     under the authority provided in the subsection.
       (b) Replacement or Termination of Timber Sale Contracts.--
       (1) In general.--Notwithstanding any other provision of 
     contract law, the Secretary concerned shall negotiate with a 
     purchaser of timber offered, awarded, or released pursuant to 
     section 318 of Public Law 101-121 (103 Stat. 745) or section 
     2001(k) of Public Law 104-19 (109 Stat. 246; 16 U.S.C. 1611 
     note) (as in existence prior to the date of enactment of this 
     Act) to modify the sale to comply with environmental and 
     natural resources laws or to provide, within 1 year after the 
     date of enactment of this Act (unless otherwise agreed by the 
     Secretary and the purchaser), a volume, value, and kind of 
     alternative timber as a replacement for the remaining timber 
     offered, awarded, or released.
       (2) Environmental and natural resource laws.--Modified 
     sales or replacement timber provided under paragraph (1) 
     shall comply with--
       (A) any applicable environmental or natural resource law;
       (B) any resource management plan, land and resource 
     management plan, regional guide or forest plan, including the 
     Northwest Forest Plan and any plan developed under the 
     Interior Columbia Basin Ecosystem Management Project; and
       (C) any relevant standard or guideline, including PACFISH, 
     INFISH, and Eastside screens, and shall be subject to 
     administrative appeal and judicial review.
       (3) Termination.--If the Secretary and the purchaser do not 
     reach agreement under paragraph (1), the Secretary concerned 
     may--
       (A) exercise any provision of the original contract that 
     authorizes termination; or
       (B) if the Secretary concerned determines that termination 
     or modification of the contract is necessary to avoid adverse 
     effects on the environment or natural resources, terminate or 
     modify the contract.
       (c) Payment for Timber Sale Contracts Relinquished.--Any 
     claim, whether as a result of a judgment or an agreement, 
     against the Federal Government arising from a timber sale 
     contract offered, awarded, or released under section 318 of 
     Public Law 101-121 (103 Stat. 745), from section 2001(k) of 
     Public Law 104-19 (109 Stat. 246; 16 U.S.C. 1611 note) (as in 
     existence prior to the date of enactment of this Act), from 
     this Act, or from the exercise of the Secretary's right to 
     suspend, modify, or terminate the contract may be--
       (1) paid from funds made available under section 1304 of 
     title 31, United States Code, and shall not require 
     reimbursement under section 13(c) of the Contract Disputes 
     Act of 1978 (41 U.S.C. 612(c));
       (2) paid through a certificate of bidding rights credits to 
     be used by the purchaser (or a successor or assign of the 
     purchaser) as payment for past, current or future timber 
     sales; or
       (3) paid through funds appropriated for the purpose.
       (d) Repayment of Government Guaranteed Loans.--The 
     Secretary may repay any government-guaranteed loan related to 
     a timber processing facility.
       (e) Negotiations Between the Secretary Concerned and the 
     Purchaser.--The Secretary concerned and the timber sale 
     purchaser may use any combination of methods provided in 
     subsections (b) and (c) or other authorized means to dispose 
     of a timber sale contract under this section.
       (f) Disputes.--Any claim by a purchaser against the Federal 
     Government relating to a contract replaced, modified, 
     suspended, or terminated under this section shall be subject 
     to the Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.) 
     except that reimbursement under section 13(c) of that Act is 
     not required.
       (g) Funding.--The Secretary concerned shall pay purchasers 
     for agreements negotiated in this subsection from any funds 
     available to the Secretary.

     SEC. ____13. SALES INITIATED UNDER EXISTING LAW.

       (a) In General.--A sale initiated but not awarded to a 
     purchaser by the Forest Service or the Bureau of Land 
     Management under subsection (b) or (d) of section 2001 of 
     Public Law 104-19 (109 Stat. 240; 16 U.S.C. 1611 note) (as in 
     existence prior to the date of enactment of this Act) as of 
     March 5, 1996, shall be subject to all environmental and 
     natural resource laws. The Secretary concerned may elect to 
     proceed with sales initiated under subsection (b) of section 
     2001 of Public Law 104-19 either under the provisions of 
     subtitle C of this Act or other applicable law authorizing 
     the Secretary concerned to conduct salvage timber sales. 
     Provided however, that if, prior to enactment to this Act, an 
     environmental assessment or environmental impact statement 
     has been issued for public comment, the public comment period 
     shall not be repeated and the proposal shall proceed through 
     the applicable agency appeal process.
       (b) Sales Awarded to Purchasers.--
       (1) In general.--A timber sale contract that has been 
     awarded to a purchaser under subsection (b) or (d) of section 
     2001 of Public Law 104-19 (109 Stat. 240; 16 U.S.C. 1611 
     note) (as in existence prior to the date of enactment of this 
     Act) shall, notwithstanding the commencement of contract 
     performance, be subject to--
       (A) in the case of Forest Service sales, administrative 
     appeal in accordance with section 322 of the Department of 
     the Interior and Related Agencies Appropriations Act, 1993 
     (106 Stat. 1419; 16 U.S.C. 1612 note);
       (B) in the case of Bureau of Land Management sales, 
     protests filed in accordance with section 5003.3 of title 43, 
     Code of Federal Regulations (or any successor regulation); 
     and
       (C) judicial review.
       (3) Requirements.--Section 2001 of Public Law 104-19 (109 
     Stat. 240; 16 U.S.C. 1611 note) (as in existence prior to the 
     date of enactment of this Act) shall apply to any claim under 
     paragraph (1) related to compliance with any expedited 
     procedural requirement. Any other claim shall be subject to 
     applicable law.
       (4) Termination or modification.--If the result of the 
     protest or judicial review indicates a need to terminate or 
     modify the awarded contract, the Secretary concerned may--
       (A) exercise any provision of the original contract that 
     authorizes termination and payment of specified damages, 
     where applicable; or
       (B) if the Secretary concerned determines that termination 
     or modification of the contract is necessary to avoid adverse 
     affects on the environment or natural resources, terminate or 
     modify the contract.
                   Subtitle B--Northwest Forest Plan

     SEC. ____21. NORTHWEST FOREST PLAN.

       (a) Direction To Complete Timber Sales.--The Secretary of 
     the Interior, acting through the Director of the Bureau of 
     Land Management, and the Secretary of Agriculture, acting 
     through the Chief of the Forest Service, shall expeditiously 
     prepare, offer, and award timber sale contracts consistent 
     with the Northwest Forest Plan.
       (b) Availability of Funds.--
       (1) In general.--The Secretary of Agriculture and the 
     Secretary of the Interior shall, to the maximum extent 
     practicable, make funds available for qualified personnel, 
     such as biologists, hydrologists, and geologists, to complete 
     any watershed assessment or other analyses required for the 
     preparation, advertisement, and award of timber sale 
     contracts in order to meet the probable

[[Page S2106]]

     sale quantities and other goals of the Northwest Forest Plan.
       (2) Source.--If there are no other unobligated funds 
     appropriated to the Secretary of Agriculture or the Secretary 
     of the Interior that may be made available as required by 
     paragraph (1), the Secretary concerned shall make funds 
     available from amounts that are available for the purpose of 
     constructing forest roads in the regions to which the 
     Northwest Forest Plan applies.
       (c) Savings Provision.--Nothing in this subtitle affects 
     the legal duties of Federal agencies with respect to the 
     planning and offering of timber sales, including salvage 
     timber sales under this title.
         Subtitle C--Lawful Expediting of Salvage Timber Sales

     SEC. ____31. DEFINITIONS.

       In this subtitle:
       (1) Dislocated resource worker.--The term ``dislocated 
     resource worker'' means a resource worker who--
       (A) has been terminated or received notice of termination 
     from employment and is unlikely to return to employment in 
     the forest products industry, including employment in the 
     harvest or management of logs, transportation of logs or wood 
     products, processing of wood products (including pulp), or 
     the manufacturing and distribution of wood processing or 
     logging equipment because of diminishing demand for the 
     worker's skills;
       (B) has been terminated or received notice of termination 
     from employment as a result of salmon harvest reductions, 
     including a worker employed in the commercial or recreational 
     harvesting of salmon or the commercial buying and processing 
     of salmon; or
       (C) is self-employed and has been displaced from the 
     worker's business in the forest products or fishing industry 
     because of diminishing demand for the business's services or 
     goods.
       (2) Salvage timber sale.--The term ``salvage timber sale'' 
     means a timber sale--
       (A) in which each unit is designed to remove trees that are 
     dead from any cause (except arson found to have been 
     committed to produce timber sales), or that have been 
     determined by reliable scientific methods to have a high 
     probability of dying within 1 year as a result of disease, 
     blowdown, fire, or insect damage; and
       (B) that includes a small percentage of other trees to the 
     extent necessary to secure human safety or provide for 
     reasonable and environmentally sound access to and removal of 
     dead or dying trees described in subparagraph (A).
       (3) Streamlined consultation.--The term ``streamlined 
     consultation'' means the expedited procedures for conducting 
     interagency coordination and consultation under the 
     Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) as 
     set forth in items 4, 5, and 6 of enclosure 4 of the August 
     18, 1995, interagency letter on implementing the salvage sale 
     provisions of Public Law 104-19.

     SEC. ____32. SALVAGE TIMBER SALES SCOPE AND FACILITATION.

       The Secretary of Agriculture, acting under this subtitle 
     and through the Chief of the Forest Service, and the 
     Secretary of the Interior, acting under this subtitle and 
     through the Director of the Bureau of Land Management, 
     shall--
       (1) offer salvage timber sales under this Act only on 
     Forest Service and Bureau of Land Management land utilizing 
     existing and generally operable roads (except that spur roads 
     of less than .25 mile may be constructed or reconstructed to 
     permit access to individual timber sale units and existing 
     and generally operable roads may be reconstructed) located 
     outside--
       (A) any unit of the National Wilderness Preservation System 
     or any area recommended in a record of decision for a land 
     management plan for wilderness designation;
       (B) any roadless area in which forest and land management 
     resource plans limit timber sales or roads;
       (C) any area administratively identified as late 
     successional or riparian or withdrawn from timber harvest for 
     other conservation purposes, in which a salvage timber sale 
     would be inconsistent with agency standards and guidelines 
     for the area; and
       (D) any area withdrawn by Federal law for any conservation 
     purpose;
       (2) expeditiously prepare, offer, and award timber salvage 
     sales described in paragraph (1);
       (3) enter basic forest inventory, including data on 
     vegetation, soils, riparian systems, fisheries, wildlife 
     habitat, and other relevant information into the Geographical 
     Information System or other existing resource maps and make 
     the inventory data easily available to incorporate into 
     individual projects;
       (4) notwithstanding the Office of Federal Procurement 
     Policy Act (41 U.S.C. 401 et seq.) or other applicable law, 
     permit forest and district offices to procure computer 
     software using available funds to facilitate resource 
     inventory;
       (5) if helpful in expediting salvage sales, alter the 
     agency tree marking and designating requirements by writing 
     into timber sale contracts--
       (A) readily determinable characteristics to guide the 
     contractor in selecting trees to harvest; and
       (B) fines and penalties, including debarment, to enforce 
     subparagraph (A),

     except that this paragraph shall not alter agency marking or 
     designating requirements for trees to remain uncut for 
     wildlife, riparian, or other conservation measures;
       (6) perform timely revegetation and slash removal 
     operations consistent with applicable laws (including 
     regulations) and silvacultural practice; and
       (7) undertake watershed and other restoration activities 
     including road decommissioning in or near the salvage timber 
     sale by first offering the work to dislocated resource 
     workers or individuals certified by an appropriate resource 
     management apprenticeship program and ensure work is 
     performed according to requirements of the Service Contract 
     Act of 1965 (41 U.S.C. 351 et seq.).

     SEC. ____33. SALVAGE TIMBER SALE DOCUMENTATION AND APPEAL 
                   PROCEDURES.

       (a) Preparation of Documents.--In conducting a salvage 
     timber sale under this subtitle--
       (1) to speed compliance with the Endangered Species Act of 
     1973 (16 U.S.C. 1531 et seq.), agencies shall, to the maximum 
     extent practicable--
       (A) complete informal consultation within 30 days and 
     formal consultation within 60 days after submission of a 
     biological assessment using the streamlined consultation 
     process;
       (B) establish a key contact person in each regional office 
     of the Forest Service, the Bureau of Land Management, the 
     Fish and Wildlife Service, and the National Marine Fisheries 
     Service to facilitate issue resolution; and
       (C) establish regional and national interagency dispute 
     resolution teams; and
       (2) in the case of the Forest Service, prior to publishing 
     a notice of a proposed action under section 215.5 of title 
     36, Code of Federal Regulations (or any successor 
     regulation), and in the case of the Bureau of Land 
     Management, prior to publishing a notice of decision under 
     section 5003.2 of title 43, Code of Federal Regulations (or 
     any successor regulation), on a proposed timber salvage sale, 
     facilitate public participation in the sale planning and 
     preparation by providing appropriate notice in accordance 
     with section 1506.6(b)(3) of title 40, Code of Federal 
     Regulations (or any successor regulation), and allowing any 
     member of the public to attend not less than 1 
     interdisciplinary team meeting, not less than 1 of which will 
     be held during evening hours.
       (b) Advisory Committees.--
       (1) In general.--The Forest Service and Bureau of Land 
     Management may form 1 or more committees to advise agencies 
     on proposed salvage timber sales if each committee will 
     facilitate public involvement in decisionmaking.
       (2) Federal advisory committee act.--The Federal Advisory 
     Committee Act (5 U.S.C. App.) shall not apply to a committee 
     formed under paragraph (1).
       (3) Notice.--The Secretary concerned shall provide 
     appropriate notification to the public of any meeting of a 
     committee formed under paragraph (1) at least 10 days prior 
     to the meeting and the meeting shall be open to the public, 
     unless the Secretary concerned determines that all or a 
     portion of the meeting will be closed in accordance with 
     section 552b(c) of title 5, United States Code.
       (c) Expediting Administrative Appeals.--
       (1) In general.--Subject to paragraph (2), administrative 
     review of a decision of the Forest Service or the Bureau of 
     Land Management under this subtitle shall be conducted--
       (A) in the case of the Forest Service, in accordance with 
     section 322 of the Department of the Interior and Related 
     Agencies Appropriations Act, 1993 (106 Stat. 1419; 16 U.S.C. 
     1612 note); and
       (B) in the case of the Bureau of Land Management, after the 
     area manager makes a decision, as described in section 5003.3 
     of title 43, Code of Federal Regulations (or any successor 
     regulation), and in accordance with applicable protest and 
     appeal procedures.
       (2) Exceptions.--
       (A) Forest service appeal.--An appeal of a decision must be 
     filed not later than the later of--
       (i) 30 days after the publication of a decision document 
     for a salvage timber sale; or
       (ii) mailing of notice to interested parties, in keeping 
     with relevant agency regulations.
       (B) Final decision.--The agency concerned shall issue a 
     final decision not later than 30 days after the deadline for 
     an administrative appeal has passed and may not extend the 
     closing date for a final decision.
       (d) Expediting Judicial Review.--
       (1) In general.--Any person may challenge a salvage timber 
     sale under this subtitle by bringing a civil action in a 
     United States district court.
       (2) Time for challenge.--An action under paragraph (1) 
     shall be brought on or before the date that is 30 days after 
     the date on which an agency provides notice of a final 
     decision regarding a salvage timber sale, unless the 
     plaintiff shows good cause why the action should be permitted 
     to be brought after that date.
       (3) Time for appeal.--Any appeal of a district court 
     decision on a salvage timber sale under this Act shall be 
     brought not later than 30 days after the first date on which 
     the appeal may first be filed.
       (4) Expeditious consideration.--
       (A) In general.--The district and appellate courts shall, 
     to the extent practicable, expedite proceedings in a civil 
     action under this subsection.
       (B) Procedures.--To expedite proceedings under this 
     subsection, a court may shorten the time allowed for the 
     filing of papers or for other procedures that would otherwise 
     apply.

[[Page S2107]]

     SEC. ____34. FUNDING TO IMPLEMENT THIS SUBTITLE.

       To facilitate implementation of section ____32 (including 
     expediting salvage timber sales, entering basic forest 
     inventory, procuring computer software, and undertaking 
     watershed and other restoration activities), a Forest Service 
     regional office or a Bureau of Land Management district may 
     use the permanent timber salvage fund.

     SEC. ____35. EXPEDITED PROCEDURAL REGULATIONS.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary concerned, in 
     consultation with the Council on Environmental Quality, shall 
     develop regulations to expedite full compliance with the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) and any other appropriate environmental laws for a 
     decision regarding a proposed salvage timber sale authorized 
     under this title.
       (b) Time Limit.--The Secretary and the Council on 
     Environmental Quality shall, to the extent practicable--
       (1) limit the time necessary for public participation and 
     agency analysis for a proposed action regarding a salvage 
     timber sale authorized under this title to 120 days after 
     notice of proposed action; and
       (2) establish safeguards to provide flexibility on the 
     limitation referred to in paragraph (1) to provide for full 
     compliance with the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.) and any other appropriate 
     environmental law.

     SEC. ____36. OTHER SALVAGE TIMBER SALES.

       Nothing in this subtitle shall be construed to affect the 
     authority of the Secretary of Agriculture, acting through the 
     Chief of the Forest Service, or the Secretary of the 
     Interior, acting through the Director of the Bureau of Land 
     Management, to conduct salvage timber sales under other 
     applicable laws.

     SEC. ____37. PILOT PROGRAM TO SELL STEWARDSHIP CONTRACTS FOR 
                   FOREST SERVICES.

       (a) In General.--The Secretary of the Interior, acting 
     through the Bureau of Land Management, and the Secretary of 
     Agriculture, acting through the Forest Service, shall 
     implement a program to demonstrate the feasibility of harvest 
     contracts for salvage timber sales and associated forest 
     activities.
       (b) Use Authorized.--The forest resource managers and 
     district resource managers shall use stewardship contracts to 
     carry out resource activities in a comprehensive manner to 
     restore and preserve the ecological integrity and 
     productivity of forest ecosystems and to encourage or enhance 
     the economic sustainability and viability of nearby rural 
     communities. The resource activities should be consistent 
     with the land management plan for achieving the desired 
     future conditions of the area being treated.
       (c) Areas.--
       (1) Interior.--The Secretary of the Interior shall 
     establish up to 5 pilot projects per Bureau of Land 
     Management district to carry out this section.
       (2) Agriculture.--The Secretary of Agriculture shall 
     establish up to 5 pilot projects per Forest Service region to 
     carry out this section.
       (d) Development and Use of Contracts.--Each resource 
     manager of a unit in which a pilot program is initiated may 
     enter into stewardship contracts with qualified non-Federal 
     entities (as established in Federal Government procurement 
     regulations or as determined by the Secretary). The resource 
     manager shall select the type of stewardship contract most 
     suitable to local conditions. Contracts should clearly 
     describe the desired future condition for each resource 
     managed under the contract and the evaluation criteria to be 
     used to determine acceptable performance. The length of a 
     stewardship contract shall be consistent with section 14 of 
     the National Forest Management Act of 1976 (16 U.S.C. 472a).
       (e) Process.--To carry out this section, the Secretary 
     concerned shall establish a process to--
       (1) offer 1 or more contracts to a qualified non-Federal 
     entity to carry out forest rehabilitation and stewardship 
     activities, including salvage timber sales and to collect and 
     sort any wood harvested; and
       (2) have the agency concerned sell, or contract with a 
     qualified non-Federal entity different than the entity in 
     paragraph (1) to sell, the harvested wood.
       (f) Forest Service Study.--
       (1) In general.--The Chief of the Forest Service shall 
     conduct a study of alternative systems for administering 
     forest ecosystem health-related activities, including 
     modification of special account and trust fund management and 
     reporting, stewardship contracting, and government logging.
       (2) Similarities and differences.--The study shall compare 
     and contrast the various alternatives with systems in 
     existence on the date of the study, including--
       (A) ecological effects;
       (B) monitoring and research needs;
       (C) Federal, State, and local fiscal and other economic 
     consequences; and
       (D) opportunities for the public to be involved in 
     decisionmaking before activities are undertaken.
       (3) Requirements of study.--To ensure the validity of the 
     study, in measuring the effect of the use of contracting, the 
     study shall specify the costs that contractors would bear for 
     health care, retirement, and other benefits afforded public 
     employees performing the same tasks.
       (4) Transmittal.--The report shall be transmitted to 
     Congress prior to January 1, 1998.

     SEC. ____38. HEADING.

       This subtitle shall remain effective until September 30, 
     1999.
             Subtitle D--Timber Stand Health Prioritization

     SEC. ____41. REVIEW OF TIMBER STAND HEALTH.

       The Secretary of the Interior and the Secretary of 
     Agriculture, respectively, shall review the health of timber 
     stands on Bureau of Land Management and Forest Service lands 
     and shall each--
       (1) identify, not later than March 1 of each year, the 
     timber stands on Bureau of Land Management or Forest Service 
     lands, as applicable, that are not in a healthy condition; 
     and
       (2) prepare a document to prioritize areas that would 
     benefit from rehabilitation activities to restore timber 
     stands to a healthy condition.

     SEC. ____42. REHABILITATION PRIORITIZATION.

       To determine which areas of land should receive the first 
     attention, each resource area or ranger district shall 
     consider where intervention or treatment--
       (1) has the best opportunity to restore health to affected 
     timber stands;
       (2) has the greatest potential to reduce the risk of 
     wildfires, especially where human safety and private property 
     are threatened; and
       (3) is the least controversial, such as on lands located 
     outside of wilderness, unroaded areas, riparian areas, late 
     successional reserves, or other sensitive areas.

     SEC. ____43. FOREST TIMBER STAND HEALTH REPORT.

       (a) In General.--The Secretary of the Interior and the 
     Secretary of Agriculture shall prepare an annual report 
     (which shall be known as the Forest Timber Stand Health 
     Report) to evaluate the overall health of the forest timber 
     stands on Bureau of Land Management and Forest Service lands, 
     respectively.
       (b) Required Information.--The Forest Timber Stand Health 
     Report shall contain--
       (1) quantitative and qualitative data on the health of 
     timber stands concerned; and
       (2) a review of the actions taken to attempt to improve the 
     health of the timber stands.

     SEC. ____44. ECOLOGICAL EFFICACY OF ACTIVITIES.

       (a) In General.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     enter into a contract with the National Academy of Sciences 
     for the purpose of conducting a study of the ecological 
     consequences of various activities intended, at least in 
     part, to improve forest ecosystem health.
       (b) Activities Examined.--The activities examined under 
     subsection (a) shall include--
       (1) prescribed fire, site preparation for reforestation, 
     artificial reforestation, natural regeneration, stand 
     release, precommercial thinning, fertilization, other stand 
     improvement activities, salvage logging, and brush disposal;
       (2) historical as well as recent examples and a variety of 
     conditions in ecological regions; and
       (3) a comparison or various activities within a watershed, 
     including activities conducted by other Federal land 
     management agencies.
       (c) Transmittal.--The report shall be transmitted to the 
     Chief of the Forest Service and to Congress not later than 2 
     years after the date of enactment of this Act.

     SEC. ____45. AUTHORIZATION FOR FUNDING.

       There are authorized to be appropriated such funds as are 
     necessary to carry out this subtitle.
       Sec.  .Emergency Designation.--Congress hereby designates 
     all amounts in this entire subtitle 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 the Congress.
       Sec. 12. (e) Funds for Buyouts and Other Expenditures Under 
     this Subsection.--The Secretary concerned shall pay 
     purchasers for volumes returned to the government and any 
     additional costs to implement this section from any funds 
     available to the Secretary.
       Sec. 13. Lost Receipts.--Of the funds made available for 
     the Department of Agriculture Forest Service under the 
     heading ``National Forest System'' for General Administration 
     in fiscal year 1996 and any unobligated balances from funds 
     appropriated in prior years under such heading, $80,000,000 
     are rescinded; of the funds made available for the Department 
     of Agriculture Forest Service under the heading ``Forest 
     Research'' in fiscal year 1996 and any unobligated balances 
     from funds appropriated in prior years under such heading, 
     $30,000,000 are rescinded.
                                 ______


                        CRAIG AMENDMENT NO. 3494

  Mr. CRAIG proposed an amendment to amendment No. 3466 proposed by Mr. 
Hatfield to the bill H.R. 3019, supra; as follows:

       In the matter under the heading ``payment to the legal 
     services corporation'' under

[[Page S2108]]

     the heading ``Legal Services Corporation'' in title V of the 
     Departments of Commerce, Justice, and State, the Judiciary, 
     and Related Agencies Appropriations Act, 1996, strike 
     ``$291,000,000'' and all that follows through ``$1,500,000'' 
     and insert the following: ``$290,750,000 is for basic field 
     programs and required independent audits carried out in 
     accordance with section 509; $250,000 is for a payment to an 
     opposing party for attorney's fees and expenses relating to 
     civil actions named In the Matter of Baby Boy Doe, and Doe v. 
     Roe and Indian tribe, with docket numbers 19512 and 21723 
     (Idaho February 23, 1996); $1,500,000''.
                                 ______


                 HATCH (AND OTHERS) AMENDMENT NO. 3495

  Mr. HATCH (for himself, Mr. Grassley, and Mr. Shelby) proposed an 
amendment to amendment No. 3466 proposed by Mr. Hatfield to the bill 
H.R. 3019, supra; as follows:

       On page 755 between lines 20 and 21 insert the following:

            TREASURY, POSTAL SERVICE AND GENERAL GOVERNMENT

    EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO THE 
                               PRESIDENT

                 OFFICE OF NATIONAL DRUG CONTROL POLICY

                         Salaries and Expenses


                     (including transfer of funds)

       For an additional amount for ``Salaries and Expenses,'' 
     $3,900,000.

                         THE WHITE HOUSE OFFICE

                         Salaries and Expenses


                              (rescission)

       Of the funds made available under this heading in Public 
     Law 104-52, $650,000 are rescinded.

                      OFFICE OF POLICY DEVELOPMENT

                         Salaries and Expenses


                              (rescission)

       Of the funds made available under this heading in Public 
     Law 104-52, $650,000 are rescinded.

                    OFFICE OF MANAGEMENT AND BUDGET

                         Salaries and Expenses


                              (rescission)

       Of the funds made available under this heading in Public 
     Law 104-52, $500,000 are rescinded.

                          INDEPENDENT AGENCIES

                    GENERAL SERVICES ADMINISTRATION

                         Federal Buildings Fund

                 Limitations on Availability of Revenue


                              (rescission)

       Of the funds made available for installment acquisition 
     payments under this heading in Public Law 104-52, $1,900,000 
     are rescinded: Provided, That the aggregate amount made 
     available to the Fund shall be $5,064,249,000.

                        UNITED STATES TAX COURT

                         Salaries and Expenses


                              (rescission)

       Of the funds made available under this heading in Public 
     Law 104-52, $200,000 are rescinded.

                               CHAPTER 12

       On page 755, line 22 redesignate the section number, and
       On page 756, line 8 redesignate the section number.
       Page 29, line 18, insert the following:
       ``Provided further, That no less than $20,000,000 shall be 
     for the District of Columbia Metropolitan Police Department 
     to be used at the discretion of the Police Chief for law 
     enforcement purposes, conditioned upon appropriate 
     consultation with the chairman and ranking members of the 
     House and Senate Committees on the Judiciary and 
     Appropriations.''
                                 ______


                 GORTON (AND MURRAY) AMENDMENT NO. 3496

  Mr. GORTON (for himself and Mrs. Murray) proposed an amendment No. 
3466 proposed by Mr. Hatfield to the bill H.R. 3019, supra; as follows:

       At the appropriate place in the bill, insert the following:

     SECTION 1. DESIGNATION.

       The Walla Walla Veterans Medical Center located at 77 
     Wainwright Drive, Walla Walla, Washington, shall be known and 
     designated as the ``Jonathan M. Wainwright Memorial VA 
     Medical Center.''

     SEC. 2. REFERENCES.

       Any reference in a law, map, regulation, document, paper, 
     or other record of the United States to the Walla Walla 
     Veterans Medical Center referred to in section 1 shall be 
     deemed to be a reference to the ``Jonathan M. Wainwright 
     Memorial VA Medical Center.''
                                 ______


                      BINGAMAN AMENDMENT NO. 3497

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

       At the appropriate place, insert the following:

                     Competitiveness Policy Council


                         Salaries and Expenses

       For necessary expenses of the Competitiveness Policy 
     Council, $100,000.
                                 ______


                       HARKIN AMENDMENT NO. 3498

  Mr. HARKIN 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, add the following new title:
            TITLE V--HEALTH CARE FRAUD AND ABUSE PREVENTION

     SEC. 500. SHORT TITLE.

       This chapter may be cited as the ``Health Care Fraud, 
     Waste, and Abuse Reduction Act of 1996''.
              Subtitle A--Fraud and Abuse Control Program

               CHAPTER 1--FRAUD AND ABUSE CONTROL PROGRAM

     SEC. 501. FRAUD AND ABUSE CONTROL PROGRAM.

       (a) Establishment of Program.--Title XI of the Social 
     Security Act (42 U.S.C. 1301 et seq.) is amended by inserting 
     after section 1128B of such Act the following new section:


                   ``FRAUD AND ABUSE CONTROL PROGRAM

       ``Sec. 1128C. (a) Establishment of Program.--
       ``(1) In general.--Not later than July 1, 1996, the 
     Secretary, acting through the Office of the Inspector General 
     of the Department of Health and Human Services, and the 
     Attorney General shall establish a program--
       ``(A) to coordinate Federal, State, and local law 
     enforcement programs to control fraud and abuse with respect 
     to the delivery of and payment for health care in the United 
     States,
       ``(B) to conduct investigations, audits, evaluations, and 
     inspections relating to the delivery of and payment for 
     health care in the United States,
       ``(C) to facilitate the enforcement of the provisions of 
     sections 1128, 1128A, and 1128B and other statutes applicable 
     to health care fraud and abuse, and
       ``(D) to provide for the modification and establishment of 
     safe harbors and to issue interpretative rulings and special 
     fraud alerts pursuant to section 1128D.
       ``(2) Coordination with health plans.--In carrying out the 
     program established under paragraph (1), the Secretary and 
     the Attorney General shall consult with, and arrange for the 
     sharing of data with representatives of health plans.
       ``(3) Guidelines.--
       ``(A) In general.--The Secretary and the Attorney General 
     shall issue guidelines to carry out the program under 
     paragraph (1). The provisions of sections 553, 556, and 557 
     of title 5, United States Code, shall not apply in the 
     issuance of such guidelines.
       ``(B) Information guidelines.--
       ``(i) In general.--Such guidelines shall include guidelines 
     relating to the furnishing of information by health plans, 
     providers, and others to enable the Secretary and the 
     Attorney General to carry out the program (including 
     coordination with health plans under paragraph (2)).
       ``(ii) Confidentiality.--Such guidelines shall include 
     procedures to assure that such information is provided and 
     utilized in a manner that appropriately protects the 
     confidentiality of the information and the privacy of 
     individuals receiving health care services and items.
       ``(iii) Qualified immunity for providing information.--The 
     provisions of section 1157(a) (relating to limitation on 
     liability) shall apply to a person providing information to 
     the Secretary or the Attorney General in conjunction with 
     their performance of duties under this section.
       ``(4) Ensuring access to documentation.--The Inspector 
     General of the Department of Health and Human Services is 
     authorized to exercise such authority described in paragraphs 
     (3) through (9) of section 6 of the Inspector General Act of 
     1978 (5 U.S.C. App.) as necessary with respect to the 
     activities under the fraud and abuse control program 
     established under this subsection.
       ``(5) Authority of inspector general.--Nothing in this Act 
     shall be construed to diminish the authority of any Inspector 
     General, including such authority as provided in the 
     Inspector General Act of 1978 (5 U.S.C. App.).
       ``(b) Additional Use of Funds by Inspector General.--
       ``(1) Reimbursements for investigations.--The Inspector 
     General of the Department of Health and Human Services is 
     authorized to receive and retain for current use 
     reimbursement for the costs of conducting investigations and 
     audits and for monitoring compliance plans when such costs 
     are ordered by a court, voluntarily agreed to by the payer, 
     or otherwise.
       ``(2) Crediting.--Funds received by the Inspector General 
     under paragraph (1) as reimbursement for costs of conducting 
     investigations shall be deposited to the credit of the 
     appropriation from which initially paid, or to appropriations 
     for similar purposes currently available at the time of 
     deposit, and shall remain available for obligation for 1 year 
     from the date of the deposit of such funds.
       ``(c) Health Plan Defined.--For purposes of this section, 
     the term `health plan' means a plan or program that provides 
     health benefits, whether directly, through insurance, or 
     otherwise, and includes--

[[Page S2109]]

       ``(1) a policy of health insurance;
       ``(2) a contract of a service benefit organization; and
       ``(3) a membership agreement with a health maintenance 
     organization or other prepaid health plan.''.
       (b) Establishment of Health Care Fraud and Abuse Control 
     Account in Federal Hospital Insurance Trust Fund.--Section 
     1817 of the Social Security Act (42 U.S.C. 1395i) is amended 
     by adding at the end the following new subsection:
       ``(k) Health Care Fraud and Abuse Control Account.--
       ``(1) Establishment.--There is hereby established in the 
     Trust Fund an expenditure account to be known as the `Health 
     Care Fraud and Abuse Control Account' (in this subsection 
     referred to as the `Account').
       ``(2) Appropriated amounts to trust fund.--
       ``(A) In general.--There are hereby appropriated to the 
     Trust Fund--
       ``(i) such gifts and bequests as may be made as provided in 
     subparagraph (B);
       ``(ii) such amounts as may be deposited in the Trust Fund 
     as provided in section 542(c) of the Health Care Fraud, 
     Waste, and Abuse Reduction Act of 1996, and title XI; and
       ``(iii) such amounts as are transferred to the Trust Fund 
     under subparagraph (C).
       ``(B) Authorization to accept gifts.--The Trust Fund is 
     authorized to accept on behalf of the United States money 
     gifts and bequests made unconditionally to the Trust Fund, 
     for the benefit of the Account or any activity financed 
     through the Account.
       ``(C) Transfer of amounts.--The Managing Trustee shall 
     transfer to the Trust Fund, under rules similar to the rules 
     in section 9601 of the Internal Revenue Code of 1986, an 
     amount equal to the sum of the following:
       ``(i) Criminal fines recovered in cases involving a Federal 
     health care offense (as defined in section 982(a)(6)(B) of 
     title 18, United States Code).
       ``(ii) Civil monetary penalties and assessments imposed in 
     health care cases, including amounts recovered under titles 
     XI, XVIII, and XIX, and chapter 38 of title 31, United States 
     Code (except as otherwise provided by law).
       ``(iii) Amounts resulting from the forfeiture of property 
     by reason of a Federal health care offense.
       ``(iv) Penalties and damages obtained and otherwise 
     creditable to miscellaneous receipts of the general fund of 
     the Treasury obtained under sections 3729 through 3733 of 
     title 31, United States Code (known as the False Claims Act), 
     in cases involving claims related to the provision of health 
     care items and services (other than funds awarded to a 
     relator, for restitution or otherwise authorized by law).
       ``(3) Appropriated amounts to account.--
       ``(A) In general.--There are hereby appropriated to the 
     Account from the Trust Fund such sums as the Secretary and 
     the Attorney General certify are necessary to carry out the 
     purposes described in subparagraph (B), to be available 
     without further appropriation, in an amount--
       ``(i) with respect to activities of the Office of the 
     Inspector General of the Department of Health and Human 
     Services and the Federal Bureau of Investigations in carrying 
     out such purposes, not less than--

       ``(I) for fiscal year 1996, $110,000,000,
       ``(II) for fiscal year 1997, $140,000,000,
       ``(III) for fiscal year 1998, $160,000,000,
       ``(IV) for fiscal year 1999, $185,000,000,
       ``(V) for fiscal year 2000, $215,000,000,
       ``(VI) for fiscal year 2001, $240,000,000, and
       ``(VII) for fiscal year 2002, $270,000,000; and

       ``(ii) with respect to all activities (including the 
     activities described in clause (i)) in carrying out such 
     purposes, not more than--

       ``(I) for fiscal year 1996, $200,000,000, and
       ``(II) for each of the fiscal years 1997 through 2002, the 
     limit for the preceding fiscal year, increased by 15 percent; 
     and

       ``(iii) for each fiscal year after fiscal year 2002, within 
     the limits for fiscal year 2002 as determined under clauses 
     (i) and (ii).
       ``(B) Use of funds.--The purposes described in this 
     subparagraph are as follows:
       ``(i) General use.--To cover the costs (including 
     equipment, salaries and benefits, and travel and training) of 
     the administration and operation of the health care fraud and 
     abuse control program established under section 1128C(a), 
     including the costs of--

       ``(I) prosecuting health care matters (through criminal, 
     civil, and administrative proceedings);
       ``(II) investigations;
       ``(III) financial and performance audits of health care 
     programs and operations;
       ``(IV) inspections and other evaluations; and
       ``(V) provider and consumer education regarding compliance 
     with the provisions of title XI.

       ``(ii) Use by state medicaid fraud control units for 
     investigation reimbursements.--To reimburse the various State 
     medicaid fraud control units upon request to the Secretary 
     for the costs of the activities authorized under section 
     2134(b).
       ``(4) Annual report.--The Secretary and the Attorney 
     General shall submit jointly an annual report to Congress on 
     the amount of revenue which is generated and disbursed, and 
     the justification for such disbursements, by the Account in 
     each fiscal year.''.

     SEC. 502. APPLICATION OF CERTAIN HEALTH ANTI-FRAUD AND ABUSE 
                   SANCTIONS TO FRAUD AND ABUSE AGAINST FEDERAL 
                   HEALTH PROGRAMS.

       (a) Crimes.--
       (1) Social security act.--Section 1128B of the Social 
     Security Act (42 U.S.C. 1320a-7b) is amended as follows:
       (A) In the heading, by striking ``medicare or state health 
     care programs'' and inserting ``federal health care 
     programs''.
       (B) In subsection (a)(1), by striking ``a program under 
     title XVIII or a State health care program (as defined in 
     section 1128(h))'' and inserting ``a Federal health care 
     program''.
       (C) In subsection (a)(5), by striking ``a program under 
     title XVIII or a State health care program'' and inserting 
     ``a Federal health care program''.
       (D) In the second sentence of subsection (a)--
       (i) by striking ``a State plan approved under title XIX'' 
     and inserting ``a Federal health care program''; and
       (ii) by striking ``the State may at its option 
     (notwithstanding any other provision of that title or of such 
     plan)'' and inserting ``the administrator of such program may 
     at its option (notwithstanding any other provision of such 
     program)''.
       (E) In subsection (b)--
       (i) by striking ``and willfully'' each place it appears;
       (ii) by striking ``$25,000'' each place it appears and 
     inserting ``$50,000'';
       (iii) by striking ``title XVIII or a State health care 
     program'' each place it appears and inserting ``Federal 
     health care program'';
       (iv) in paragraph (1) in the matter preceding subparagraph 
     (A), by striking ``kind--'' and inserting ``kind with intent 
     to be influenced--'';
       (v) in paragraph (1)(A), by striking ``in return for 
     referring'' and inserting ``to refer'';
       (vi) in paragraph (1)(B), by striking ``in return for 
     purchasing, leasing, ordering, or arranging for or 
     recommending'' and inserting ``to purchase, lease, order, or 
     arrange for or recommend'';
       (vii) in paragraph (2) in the matter proceeding 
     subparagraph (A), by striking ``to induce such person'' and 
     inserting ``with intent to influence such person'';
       (viii) by adding at the end of paragraphs (1) and (2) the 
     following sentence: ``A violation exists under this paragraph 
     if one or more purposes of the remuneration is unlawful under 
     this paragraph.'';
       (ix) by redesignating paragraph (3) as paragraph (4);
       (x) in paragraph (4) (as redesignated), by striking 
     ``Paragraphs (1) and (2)'' and inserting ``Paragraphs (1), 
     (2), and (3)''; and
       (xi) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3)(A) The Attorney General may bring an action in the 
     district courts to impose upon any person who carries out any 
     activity in violation of this subsection a civil penalty of 
     not less than $25,000 and not more than $50,000 for each such 
     violation, plus three times the total remuneration offered, 
     paid, solicited, or received.
       ``(B) A violation exists under this paragraph if one or 
     more purposes of the remuneration is unlawful, and the 
     damages shall be the full amount of such remuneration.
       ``(C) Section 3731 of title 31, United States Code, and the 
     Federal Rules of Civil Procedure shall apply to actions 
     brought under this paragraph.
       ``(D) The provisions of this paragraph do not affect the 
     availability of other criminal and civil remedies for such 
     violations.''.
       (F) In subsection (c), by inserting ``(as defined in 
     section 1128(h))'' after ``a State health care program''.
       (G) By adding at the end the following new subsections:
       ``(f) For purposes of this section, the term `Federal 
     health care program' means--
       ``(1) any plan or program that provides health benefits, 
     whether directly, through insurance, or otherwise, which is 
     funded, in whole or in part, by the United States Government; 
     or
       ``(2) any State health care program, as defined in section 
     1128(h).
       ``(g)(1) The Secretary and Administrator of the departments 
     and agencies with a Federal health care program may conduct 
     an investigation or audit relating to violations of this 
     section and claims within the jurisdiction of other Federal 
     departments or agencies if the following conditions are 
     satisfied:
       ``(A) The investigation or audit involves primarily claims 
     submitted to the Federal health care programs of the 
     department or agency conducting the investigation or audit.
       ``(B) The Secretary or Administrator of the department or 
     agency conducting the investigation or audit gives notice and 
     an opportunity to participate in the investigation or audit 
     to the Inspector General of the department or agency with 
     primary jurisdiction over the Federal health care programs to 
     which the claims were submitted.
       ``(2) If the conditions specified in paragraph (1) are 
     fulfilled, the Inspector General of the department or agency 
     conducting the investigation or audit may exercise all powers 
     granted under the Inspector General Act of 1978 with respect 
     to the claims submitted to the other departments or agencies 
     to the same manner and extent as provided in that Act with 
     respect to claims submitted to such departments or 
     agencies.''.
       (2) Identification of community service opportunities.--
     Section 1128B of the Social Security Act (42 U.S.C. 1320a-7b) 
     is further amended by adding at the end the following new 
     subsection:
       ``(h) The Secretary may--
       ``(1) in consultation with State and local health care 
     officials, identify opportunities

[[Page S2110]]

     for the satisfaction of community service obligations that a 
     court may impose upon the conviction of an offense under this 
     section, and
       ``(2) make information concerning such opportunities 
     available to Federal and State law enforcement officers and 
     State and local health care officials.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect upon enactment of this Act.

 CHAPTER 2--ENHANCING CONSUMER AND PROVIDER ROLES IN COMBATING HEALTH 
                      CARE FRAUD, WASTE, AND ABUSE

     SEC. 511. MEDICARE/MEDICAID BENEFICIARY PROTECTION PROGRAM.

       (a) Establishment of Program.--Not later than July 1, 1996, 
     the Secretary (through the Administrator of the Health Care 
     Financing Administration and the Inspector General of the 
     Department of Health and Human Services) shall establish the 
     Medicare/Medicaid Beneficiary Protection Program. Under such 
     program the Secretary shall--
       (1) educate medicare and medicaid beneficiaries regarding--
       (A) medicare and medicaid program coverage;
       (B) fraudulent and abusive practices;
       (C) medically unnecessary health care items and services; 
     and
       (D) substandard health care items and services;
       (2) identify and publicize fraudulent and abusive practices 
     with respect to the delivery of health care items and 
     services; and
       (3) establish a procedure for the reporting of fraudulent 
     and abusive health care providers, practitioners, claims, 
     items, and services to appropriate law enforcement and payer 
     agencies.
       (b) Dissemination of Information.--The Secretary shall 
     provide for the broad dissemination of information regarding 
     the Medicare/Medicaid Beneficiary Protection Program.

     SEC. 512. IMPROVING INFORMATION TO MEDICARE BENEFICIARIES.

       (a) Clarification of Requirement To Provide Explanation of 
     Medicare Benefits.--Section 1804 of the Social Security Act 
     (42 U.S.C. 1395b-2) is amended by adding at the end the 
     following new subsection:
       ``(c)(1) The Secretary shall provide a statement which 
     explains the benefits provided under this title with respect 
     to each item or service for which payment may be made under 
     this title which is furnished to an individual, without 
     regard to whether or not a deductible or coinsurance may be 
     imposed against the individual with respect to such item or 
     service.
       ``(2) Each explanation of benefits provided under paragraph 
     (1) shall include--
       ``(A) a statement that, because billing errors do occur and 
     because medicare fraud, waste, and abuse is a significant 
     problem, beneficiaries should carefully check any statement 
     of benefits received for accuracy and report any questionable 
     charges;
       ``(B) a clear and understandable summary of--
       ``(i) how payments for items and services are determined 
     under this title; and
       ``(ii) the beneficiary's right to request a itemized bill 
     (as provided in section 1128A(n)); and
       ``(C) a toll-free telephone number for reporting 
     questionable charges or other acts that would constitute 
     medicare fraud, waste, or abuse, which may be the same number 
     as described in subsection (b).''.
       (b) Request for Itemized Bill for Medicare Items and 
     Services.--
       (1) In general.--Section 1128A of the Social Security Act 
     (42 U.S.C. 1320a-7a), as amended by section 531, is amended 
     by adding at the end the following new subsection:
       ``(n) Written Request for Itemized Bill.--
       ``(1) In general.--A beneficiary may submit a written 
     request for an itemized bill for medical or other items or 
     services provided to such beneficiary by any person 
     (including an organization, agency, or other entity) that 
     receives payment under title XVIII for providing such items 
     or services to such beneficiary.
       ``(2) 30-day period to receive bill.--
       ``(A) In general.--Not later than 30 days after the date on 
     which a request under paragraph (1) has been received, a 
     person described in such paragraph shall furnish an itemized 
     bill describing each medical or other item or service 
     provided to the beneficiary requesting the itemized bill.
       ``(B) Penalty.--Whoever knowingly fails to furnish an 
     itemized bill in accordance with subparagraph (A) shall be 
     subject to a civil fine of not more than $100 for each such 
     failure.
       ``(3) Review of itemized bill.--
       ``(A) In general.--Not later than 90 days after the receipt 
     of an itemized bill furnished under paragraph (1), a 
     beneficiary may submit a written request for a review of the 
     itemized bill to the appropriate fiscal intermediary or 
     carrier with a contract under section 1816 or 1842.
       ``(B) Specific allegations.--A request for a review of the 
     itemized bill shall identify--
       ``(i) specific medical or other items or services that the 
     beneficiary believes were not provided as claimed, or
       ``(ii) any other billing irregularity (including duplicate 
     billing).
       ``(4) Findings of fiscal intermediary or carrier.--Each 
     fiscal intermediary or carrier with a contract under section 
     1816 or 1842 shall, with respect to each written request 
     submitted to the fiscal intermediary or carrier under 
     paragraph (3), determine whether the itemized bill identifies 
     specific medical or other items or services that were not 
     provided as claimed or any other billing irregularity 
     (including duplicate billing) that has resulted in 
     unnecessary payments under title XVIII.
       ``(5) Recovery of amounts.--The Secretary shall require 
     fiscal intermediaries and carriers to take all appropriate 
     measures to recover amounts unnecessarily paid under title 
     XVIII with respect to a bill described in paragraph (4).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to medical or other items or 
     services provided on or after July 1, 1996.

     SEC. 513. BENEFICIARY INCENTIVE PROGRAMS.

       (a) Program to Collect Information on Fraud and Abuse.--
       (1) Establishment of program.--Not later than 3 months 
     after the date of the enactment of this Act, the Secretary of 
     Health and Human Services (hereinafter in this section 
     referred to as the ``Secretary'') shall establish a program 
     under which the Secretary shall encourage individuals to 
     report to the Secretary information on individuals and 
     entities who are engaging or who have engaged in acts or 
     omissions which constitute grounds for the imposition of a 
     sanction under section 1128, section 1128A, or section 1128B 
     of the Social Security Act, or who have otherwise engaged in 
     fraud and abuse against the medicare program for which there 
     is a sanction provided under law. The program shall 
     discourage provision of, and not consider, information which 
     is frivolous or otherwise not relevant or material to the 
     imposition of such a sanction.
       (2) Payment of portion of amounts collected.--If an 
     individual reports information to the Secretary under the 
     program established under paragraph (1) which serves as the 
     basis for the collection by the Secretary or the Attorney 
     General of any amount of at least $100 (other than any amount 
     paid as a penalty under section 1128B of the Social Security 
     Act), the Secretary may pay a portion of the amount collected 
     to the individual (under procedures similar to those 
     applicable under section 7623 of the Internal Revenue Code of 
     1986 to payments to individuals providing information on 
     violations of such Code).
       (b) Program to Collect Information on Program Efficiency.--
       (1) Establishment of program.--Not later than 3 months 
     after the date of the enactment of this Act, the Secretary 
     shall establish a program under which the Secretary shall 
     encourage individuals to submit to the Secretary suggestions 
     on methods to improve the efficiency of the medicare program.
       (2) Payment of portion of program savings.--If an 
     individual submits a suggestion to the Secretary under the 
     program established under paragraph (1) which is adopted by 
     the Secretary and which results in savings to the program, 
     the Secretary may make a payment to the individual of such 
     amount as the Secretary considers appropriate.

     SEC. 514. HEALTH CARE FRAUD AND ABUSE PROVIDER GUIDANCE.

       (a) Solicitation and Publication of Modifications to 
     Existing Safe Harbors and New Safe Harbors.--
       (1) In general.--
       (A) Solicitation of proposals for safe harbors.--Not later 
     than July 1, 1996, and not less than annually thereafter, the 
     Secretary shall publish a notice in the Federal Register 
     soliciting proposals, which will be accepted during a 60-day 
     period, for--
       (i) modifications to existing safe harbors issued pursuant 
     to section 14(a) of the Medicare and Medicaid Patient and 
     Program Protection Act of 1987 (42 U.S.C. 1320a-7b note);
       (ii) additional safe harbors specifying payment practices 
     that shall not be treated as a criminal offense under section 
     1128B(b) of the Social Security Act (42 U.S.C. 1320a-7b(b)) 
     and shall not serve as the basis for an exclusion under 
     section 1128(b)(7) of such Act (42 U.S.C. 1320a-7(b)(7));
       (iii) interpretive rulings to be issued pursuant to 
     subsection (b); and
       (iv) special fraud alerts to be issued pursuant to 
     subsection (c).
       (B) Publication of proposed modifications and proposed 
     additional safe harbors.--After considering the proposals 
     described in clauses (i) and (ii) of subparagraph (A), the 
     Secretary, in consultation with the Attorney General, shall 
     publish in the Federal Register proposed modifications to 
     existing safe harbors and proposed additional safe harbors, 
     if appropriate, with a 60-day comment period. After 
     considering any public comments received during this period, 
     the Secretary shall issue final rules modifying the existing 
     safe harbors and establishing new safe harbors, as 
     appropriate.
       (C) Report.--The Inspector General of the Department of 
     Health and Human Services (in this section referred to as the 
     ``Inspector General'') shall, in an annual report to Congress 
     or as part of the year-end semiannual report required by 
     section 5 of the Inspector General Act of 1978 (5 U.S.C. 
     App.), describe the proposals received under clauses (i) and 
     (ii) of subparagraph (A) and explain which proposals were 
     included in the publication described in subparagraph (B), 
     which proposals were not included in that publication, and 
     the reasons for the rejection of the proposals that were not 
     included.

[[Page S2111]]

       (2) Criteria for modifying and establishing safe harbors.--
     In modifying and establishing safe harbors under paragraph 
     (1)(B), the Secretary may consider the extent to which 
     providing a safe harbor for the specified payment practice 
     may result in any of the following:
       (A) An increase or decrease in access to health care 
     services.
       (B) An increase or decrease in the quality of health care 
     services.
       (C) An increase or decrease in patient freedom of choice 
     among health care providers.
       (D) An increase or decrease in competition among health 
     care providers.
       (E) An increase or decrease in the ability of health care 
     facilities to provide services in medically underserved areas 
     or to medically underserved populations.
       (F) An increase or decrease in the cost to Federal health 
     care programs (as defined in section 1128B(f) of the Social 
     Security Act (42 U.S.C. 1320a-7b(f)).
       (G) An increase or decrease in the potential 
     overutilization of health care services.
       (H) The existence or nonexistence of any potential 
     financial benefit to a health care professional or provider 
     which may vary based on their decisions of--
       (i) whether to order a health care item or service; or
       (ii) whether to arrange for a referral of health care items 
     or services to a particular practitioner or provider.
       (I) Any other factors the Secretary deems appropriate in 
     the interest of preventing fraud and abuse in Federal health 
     care programs (as so defined).
       (b) Interpretive Rulings.--
       (1) In general.--
       (A) Request for interpretive ruling.--Any person may 
     present, at any time, a request to the Inspector General for 
     a statement of the Inspector General's current interpretation 
     of the meaning of a specific aspect of the application of 
     sections 1128A and 1128B of the Social Security Act (42 
     U.S.C. 1320a-7a and 1320a-7b) (in this section referred to as 
     an ``interpretive ruling'').
       (B) Issuance and effect of interpretive ruling.--
       (i) In general.--If appropriate, the Inspector General 
     shall in consultation with the Attorney General, issue an 
     interpretive ruling not later than 120 days after receiving a 
     request described in subparagraph (A). Interpretive rulings 
     shall not have the force of law and shall be treated as an 
     interpretive rule within the meaning of section 553(b) of 
     title 5, United States Code. All interpretive rulings issued 
     pursuant to this clause shall be published in the Federal 
     Register or otherwise made available for public inspection.
       (ii) Reasons for denial.--If the Inspector General does not 
     issue an interpretive ruling in response to a request 
     described in subparagraph (A), the Inspector General shall 
     notify the requesting party of such decision not later than 
     120 days after receiving such a request and shall identify 
     the reasons for such decision.
       (2) Criteria for interpretive rulings.--
       (A) In general.--In determining whether to issue an 
     interpretive ruling under paragraph (1)(B), the Inspector 
     General may consider--
       (i) whether and to what extent the request identifies an 
     ambiguity within the language of the statute, the existing 
     safe harbors, or previous interpretive rulings; and
       (ii) whether the subject of the requested interpretive 
     ruling can be adequately addressed by interpretation of the 
     language of the statute, the existing safe harbor rules, or 
     previous interpretive rulings, or whether the request would 
     require a substantive ruling (as defined in section 552 of 
     title 5, United States Code) not authorized under this 
     subsection.
       (B) No rulings on factual issues.--The Inspector General 
     shall not give an interpretive ruling on any factual issue, 
     including the intent of the parties or the fair market value 
     of particular leased space or equipment.
       (c) Special Fraud Alerts.--
       (1) In general.--
       (A) Request for special fraud alerts.--Any person may 
     present, at any time, a request to the Inspector General for 
     a notice which informs the public of practices which the 
     Inspector General considers to be suspect or of particular 
     concern under section 1128B(b) of the Social Security Act (42 
     U.S.C. 1320a-7b(b)) (in this subsection referred to as a 
     ``special fraud alert'').
       (B) Issuance and publication of special fraud alerts.--Upon 
     receipt of a request described in subparagraph (A), the 
     Inspector General shall investigate the subject matter of the 
     request to determine whether a special fraud alert should be 
     issued. If appropriate, the Inspector General shall issue a 
     special fraud alert in response to the request. All special 
     fraud alerts issued pursuant to this subparagraph shall be 
     published in the Federal Register.
       (2) Criteria for special fraud alerts.--In determining 
     whether to issue a special fraud alert upon a request 
     described in paragraph (1), the Inspector General may 
     consider--
       (A) whether and to what extent the practices that would be 
     identified in the special fraud alert may result in any of 
     the consequences described in subsection (a)(2); and
       (B) the volume and frequency of the conduct that would be 
     identified in the special fraud alert.

     SEC. 515. CORPORATE WHISTLEBLOWER PROGRAM.

       Title XI of the Social Security Act (42 U.S.C. 1301 et 
     seq.) is amended by inserting after section 1128B of such Act 
     the following new section:


                   ``CORPORATE WHISTLEBLOWER PROGRAM

       ``Sec. 1128C (a) Establishment of Program.--The Secretary, 
     through the Inspector General of the Department of Health and 
     Human Services, shall establish a procedure whereby 
     corporations, partnerships, and other legal entities 
     specified by the Secretary, may voluntarily disclose 
     instances of unlawful conduct and seek to resolve liability 
     for such conduct through means specified by the Secretary.
       ``(b) Limitation.--No person may bring an action under 
     section 3730(b) of title 31, United States Code, if, on the 
     date of filing--
       ``(1) the matter set forth in the complaint has been 
     voluntarily disclosed to the United States by the proposed 
     defendant and the defendant has been accepted into the 
     voluntary disclosure program established pursuant to 
     subsection (a); and
       ``(2) any new information provided in the complaint under 
     such section does not add substantial grounds for additional 
     recovery beyond those encompassed within the scope of the 
     voluntary disclosure.''.

     SEC. 516. ESTABLISHMENT OF THE HEALTH CARE FRAUD AND ABUSE 
                   DATA COLLECTION PROGRAM.

       (a) General Purpose.--Not later than July 1, 1996, the 
     Secretary shall establish a national health care fraud and 
     abuse data collection program for the reporting of final 
     adverse actions (not including settlements in which no 
     findings of liability have been made) against health care 
     providers, suppliers, or practitioners as required by 
     subsection (b), with access as set forth in subsection (c).
       (b) Reporting of Information.--
       (1) In general.--Each government agency and health plan 
     shall report any final adverse action (not including 
     settlements in which no findings of liability have been made) 
     taken against a health care provider, supplier, or 
     practitioner.
       (2) Information to be reported.--The information to be 
     reported under paragraph (1) includes:
       (A) The name and TIN (as defined in section 7701(a)(41) of 
     the Internal Revenue Code of 1986) of any health care 
     provider, supplier, or practitioner who is the subject of a 
     final adverse action.
       (B) The name (if known) of any health care entity with 
     which a health care provider, supplier, or practitioner is 
     affiliated or associated.
       (C) The nature of the final adverse action and whether such 
     action is on appeal.
       (D) A description of the acts or omissions and injuries 
     upon which the final adverse action was based, and such other 
     information as the Secretary determines by regulation is 
     required for appropriate interpretation of information 
     reported under this section.
       (3) Confidentiality.--In determining what information is 
     required, the Secretary shall include procedures to assure 
     that the privacy of individuals receiving health care 
     services is appropriately protected.
       (4) Timing and form of reporting.--The information required 
     to be reported under this subsection shall be reported 
     regularly (but not less often than monthly) and in such form 
     and manner as the Secretary prescribes. Such information 
     shall first be required to be reported on a date specified by 
     the Secretary.
       (5) To whom reported.--The information required to be 
     reported under this subsection shall be reported to the 
     Secretary.
       (c) Disclosure and Correction of Information.--
       (1) Disclosure.--With respect to the information about 
     final adverse actions (not including settlements in which no 
     findings of liability have been made) reported to the 
     Secretary under this section respecting a health care 
     provider, supplier, or practitioner, the Secretary shall, by 
     regulation, provide for--
       (A) disclosure of the information, upon request, to the 
     health care provider, supplier, or licensed practitioner, and
       (B) procedures in the case of disputed accuracy of the 
     information.
       (2) Corrections.--Each Government agency and health plan 
     shall report corrections of information already reported 
     about any final adverse action taken against a health care 
     provider, supplier, or practitioner, in such form and manner 
     that the Secretary prescribes by regulation.
       (d) Access to Reported Information.--
       (1) Availability.--The information in this database shall 
     be available to Federal and State government agencies, health 
     plans, and the public pursuant to procedures that the 
     Secretary shall provide by regulation.
       (2) Fees for disclosure.--The Secretary may establish or 
     approve reasonable fees for the disclosure of information in 
     this database (other than with respect to requests by Federal 
     agencies). The amount of such a fee may be sufficient to 
     recover the full costs of carrying out the provisions of this 
     section, including reporting, disclosure, and administration. 
     Such fees shall be available to the Secretary or, in the 
     Secretary's discretion to the agency designated under this 
     section to cover such costs.
       (e) Protection From Liability for Reporting.--No person or 
     entity shall be held liable in any civil action with respect 
     to any report made as required by this section, without 
     knowledge of the falsity of the information contained in the 
     report.

[[Page S2112]]

       (f) Definitions and Special Rules.--For purposes of this 
     section:
       (1)(A) The term ``final adverse action'' includes:
       (i) Civil judgments against a health care provider or 
     practitioner in Federal or State court related to the 
     delivery of a health care item or service.
       (ii) Federal or State criminal convictions related to the 
     delivery of a health care item or service.
       (iii) Actions by Federal or State agencies responsible for 
     the licensing and certification of health care providers, 
     suppliers, and licensed health care practitioners, 
     including--
       (I) formal or official actions, such as revocation or 
     suspension of a license (and the length of any such 
     suspension), reprimand, censure or probation,
       (II) any other loss of license, or the right to apply for 
     or renew a license of the provider, supplier, or 
     practitioner, whether by operation of law, voluntary 
     surrender, nonrenewability, or otherwise, or
       (III) any other negative action or finding by such Federal 
     or State agency that is publicly available information.
       (iv) Exclusion from participation in Federal or State 
     health care programs.
       (v) Any other adjudicated actions or decisions that the 
     Secretary shall establish by regulation.
       (B) The term does not include any action with respect to a 
     malpractice claim.
       (2) The terms ``licensed health care practitioner'', 
     ``licensed practitioner'', and ``practitioner'' mean, with 
     respect to a State, an individual who is licensed or 
     otherwise authorized by the State to provide health care 
     services (or any individual who, without authority holds 
     himself or herself out to be so licensed or authorized).
       (3) The term ``health care provider'' means a provider of 
     services as defined in section 1861(u) of the Social Security 
     Act (42 U.S.C. 1395x(u)), and any person or entity, including 
     a health maintenance organization, group medical practice, or 
     any other entity listed by the Secretary in regulation, that 
     provides health care services.
       (4) The term ``supplier'' means a supplier of health care 
     items and services described in section 1819(a) and (b), and 
     section 1861 of the Social Security Act (42 U.S.C. 1395i-3(a) 
     and (b), and 1395x).
       (5) The term ``Government agency'' shall include:
       (A) The Department of Justice.
       (B) The Department of Health and Human Services.
       (C) Any other Federal agency that either administers or 
     provides payment for the delivery of health care services, 
     including, but not limited to the Department of Defense and 
     the Veterans' Administration.
       (D) State law enforcement agencies.
       (E) State medicaid fraud and abuse units.
       (F) Federal or State agencies responsible for the licensing 
     and certification of health care providers and licensed 
     health care practitioners.
       (6) The term ``health plan'' means a plan or program that 
     provides health benefits, whether directly, through 
     insurance, or otherwise, and includes--
       (A) a policy of health insurance;
       (B) a contract of a service benefit organization;
       (C) a membership agreement with a health maintenance 
     organization or other prepaid health plan; and
       (D) an employee welfare benefit plan or a multiple employer 
     welfare plan (as such terms are defined in section 3 of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1002).
       (7) For purposes of paragraph (1), the existence of a 
     conviction shall be determined under section 1128(i) of the 
     Social Security Act.
       (g) Conforming Amendment.--Section 1921(d) of the Social 
     Security Act (42 U.S.C. 1396r-2(d)) is amended by inserting 
     ``and section 516 of the Health Care Fraud, Waste, and Abuse 
     Reduction Act of 1996'' after ``section 422 of the Health 
     Care Quality Improvement Act of 1986''.

     SEC. 517. INSPECTOR GENERAL ACCESS TO ADDITIONAL PRACTITIONER 
                   DATA BANK.

       Section 427 of the Health Care Quality Improvement Act of 
     1986 (42 U.S.C. 11137) is amended--
       (1) in subsection (a), by adding at the end the following 
     sentence: ``Information reported under this part shall also 
     be made available, upon request, to the Inspector General of 
     the Departments of Health and Human Services, Defense, and 
     Labor, the Office of Personnel Management, and the Railroad 
     Retirement Board.''; and
       (2) by amending subsection (b)(4) to read as follows:
       ``(4) Fees.--The Secretary may impose fees for the 
     disclosure of information under this part sufficient to 
     recover the full costs of carrying out the provisions of this 
     part, including reporting, disclosure, and administration, 
     except that a fee may not be imposed for requests made by the 
     Inspector General of the Department of Health and Human 
     Services. Such fees shall remain available to the Secretary 
     (or, in the Secretary's discretion, to the agency designated 
     in section 424(b)) until expended.''.

           CHAPTER 3--SANCTIONS FOR COMMITTING FRAUD OR ABUSE

     SEC. 521. MANDATORY EXCLUSION FROM PARTICIPATION IN MEDICARE 
                   AND STATE HEALTH CARE PROGRAMS.

       (a) Individual Convicted of Felony Relating to Health Care 
     Fraud.--
       (1) In general.--Section 1128(a) of the Social Security Act 
     (42 U.S.C. 1320a-7(a)) is amended by adding at the end the 
     following new paragraph:
       ``(3) Felony conviction relating to health care fraud.--Any 
     individual or entity that has been convicted after the date 
     of the enactment of the Health Care Fraud, Waste, and Abuse 
     Reduction Act of 1996, under Federal or State law, in 
     connection with the delivery of a health care item or service 
     or with respect to any act or omission in a health care 
     program (other than those specifically described in paragraph 
     (1)) operated by or financed in whole or in part by any 
     Federal, State, or local government agency, of a criminal 
     offense consisting of a felony relating to fraud, theft, 
     embezzlement, breach of fiduciary responsibility, or other 
     financial misconduct.''.
       (2) Conforming amendment.--Paragraph (1) of section 1128(b) 
     of the Social Security Act (42 U.S.C. 1320a-7(b)) is amended 
     to read as follows:
       ``(1) Conviction relating to fraud.--Any individual or 
     entity that has been convicted after the date of the 
     enactment of the Health Care Fraud, Waste, and Abuse 
     Reduction Act of 1996, under Federal or State law--
       ``(A) of a criminal offense consisting of a misdemeanor 
     relating to fraud, theft, embezzlement, breach of fiduciary 
     responsibility, or other financial misconduct--
       ``(i) in connection with the delivery of a health care item 
     or service, or
       ``(ii) with respect to any act or omission in a health care 
     program (other than those specifically described in 
     subsection (a)(1)) operated by or financed in whole or in 
     part by any Federal, State, or local government agency; or
       ``(B) of a criminal offense relating to fraud, theft, 
     embezzlement, breach of fiduciary responsibility, or other 
     financial misconduct with respect to any act or omission in a 
     program (other than a health care program) operated by or 
     financed in whole or in part by any Federal, State, or local 
     government agency.''.
       (b) Individual Convicted of Felony Relating to Controlled 
     Substance.--
       (1) In general.--Section 1128(a) of the Social Security Act 
     (42 U.S.C. 1320a-7(a)), as amended by subsection (a), is 
     amended by adding at the end the following new paragraph:
       ``(4) Felony conviction relating to controlled substance.--
     Any individual or entity that has been convicted after the 
     date of the enactment of the Health Care Fraud, Waste, and 
     Abuse Reduction Act of 1996, under Federal or State law, of a 
     criminal offense consisting of a felony relating to the 
     unlawful manufacture, distribution, prescription, or 
     dispensing of a controlled substance.''.
       (2) Conforming amendment.--Section 1128(b)(3) of the Social 
     Security Act (42 U.S.C. 1320a-7(b)(3)) is amended--
       (A) in the heading, by striking ``Conviction'' and 
     inserting ``Misdemeanor conviction''; and
       (B) by striking ``criminal offense'' and inserting 
     ``criminal offense consisting of a misdemeanor''.

     SEC. 522. ESTABLISHMENT OF MINIMUM PERIOD OF EXCLUSION FOR 
                   CERTAIN INDIVIDUALS AND ENTITIES SUBJECT TO 
                   PERMISSIVE EXCLUSION FROM MEDICARE AND STATE 
                   HEALTH CARE PROGRAMS.

       Section 1128(c)(3) of the Social Security Act (42 U.S.C. 
     1320a-7(c)(3)) is amended by adding at the end the following 
     new subparagraphs:
       ``(D) In the case of an exclusion of an individual or 
     entity under paragraph (1), (2), or (3) of subsection (b), 
     the period of the exclusion shall be 3 years, unless the 
     Secretary determines in accordance with published regulations 
     that a shorter period is appropriate because of mitigating 
     circumstances or that a longer period is appropriate because 
     of aggravating circumstances.
       ``(E) In the case of an exclusion of an individual or 
     entity under subsection (b)(4) or (b)(5), the period of the 
     exclusion shall not be less than the period during which the 
     individual's or entity's license to provide health care is 
     revoked, suspended, or surrendered, or the individual or the 
     entity is excluded or suspended from a Federal or State 
     health care program.
       ``(F) In the case of an exclusion of an individual or 
     entity under subsection (b)(6)(B), the period of the 
     exclusion shall be not less than 1 year.''.

     SEC. 523. PERMISSIVE EXCLUSION OF INDIVIDUALS WITH OWNERSHIP 
                   OR CONTROL INTEREST IN SANCTIONED ENTITIES.

       Section 1128(b) of the Social Security Act (42 U.S.C. 
     1320a-7(b)) is amended by adding at the end the following new 
     paragraph:
       ``(15) Individuals controlling a sanctioned entity.--Any 
     individual who has a direct or indirect ownership or control 
     interest of 5 percent or more, or an ownership or control 
     interest (as defined in section 1124(a)(3)) in, or who is an 
     officer or managing employee (as defined in section 1126(b)) 
     of, an entity--
       ``(A) that has been convicted of any offense described in 
     subsection (a) or in paragraph (1), (2), or (3) of this 
     subsection; or
       ``(B) that has been excluded from participation under a 
     program under title XVIII or under a State health care 
     program.''.

[[Page S2113]]

     SEC. 524. SANCTIONS AGAINST PRACTITIONERS AND PERSONS FOR 
                   FAILURE TO COMPLY WITH STATUTORY OBLIGATIONS.

       (a) Minimum Period of Exclusion for Practitioners and 
     Persons Failing To Meet Statutory Obligations.--
       (1) In general.--The second sentence of section 1156(b)(1) 
     of the Social Security Act (42 U.S.C. 1320c-5(b)(1)) is 
     amended by striking ``may prescribe)'' and inserting ``may 
     prescribe, except that such period may not be less than 1 
     year)''.
       (2) Conforming amendment.--Section 1156(b)(2) of such Act 
     (42 U.S.C. 1320c-5(b)(2)) is amended by striking ``shall 
     remain'' and inserting ``shall (subject to the minimum period 
     specified in the second sentence of paragraph (1)) remain''.
       (b) Repeal of ``Unwilling or Unable'' Condition for 
     Imposition of Sanction.--Section 1156(b)(1) of the Social 
     Security Act (42 U.S.C. 1320c-5(b)(1)) is amended--
       (1) in the second sentence, by striking ``and determines'' 
     and all that follows through ``such obligations,''; and
       (2) by striking the third sentence.

     SEC. 525. APPLICABILITY OF THE BANKRUPTCY CODE TO PROGRAM 
                   SANCTIONS.

       (a) Exclusion of Individuals and Entities From 
     Participation in Federal Health Care Programs.--Section 1128 
     of the Social Security Act (42 U.S.C. 1320a-7) is amended by 
     adding at the end the following new subsection:
       ``(j) Applicability of Bankruptcy Provisions.--An exclusion 
     imposed under this section is not subject to the automatic 
     stay imposed under section 362 of title 11, United States 
     Code.''.
       (b) Civil Monetary Penalties.--Section 1128A(a) of the 
     Social Security Act (42 U.S.C. 1320a-7a(a)) is amended by 
     adding at the end the following sentence: ``An exclusion 
     imposed under this subsection is not subject to the automatic 
     stay imposed under section 362 of title 11, United States 
     Code, and any penalties and assessments imposed under this 
     section shall be nondischargeable under the provisions of 
     such title.''.
       (c) Offset of Payments to Individuals.--Section 1892(a)(4) 
     of the Social Security Act (42 U.S.C. 1395ccc(a)(4)) is 
     amended by adding at the end the following sentence: ``An 
     exclusion imposed under paragraph (2)(C)(ii) or paragraph 
     (3)(B) is not subject to the automatic stay imposed under 
     section 362 of title 11, United States Code.''

     SEC. 526. INTERMEDIATE SANCTIONS FOR MEDICARE HEALTH 
                   MAINTENANCE ORGANIZATIONS.

       (a) Application of Intermediate Sanctions for Any Program 
     Violations.--
       (1) In general.--Section 1876(i)(1) of the Social Security 
     Act (42 U.S.C. 1395mm(i)(1)) is amended by striking ``the 
     Secretary may terminate'' and all that follows and inserting 
     ``in accordance with procedures established under paragraph 
     (9), the Secretary may at any time terminate any such 
     contract or may impose the intermediate sanctions described 
     in paragraph (6)(B) or (6)(C) (whichever is applicable) on 
     the eligible organization if the Secretary determines that 
     the organization--
       ``(A) has failed substantially to carry out the contract;
       ``(B) is carrying out the contract in a manner 
     substantially inconsistent with the efficient and effective 
     administration of this section; or
       ``(C) no longer substantially meets the applicable 
     conditions of subsections (b), (c), (e), and (f).''.
       (2) Other intermediate sanctions for miscellaneous program 
     violations.--Section 1876(i)(6) of the Social Security Act 
     (42 U.S.C. 1395mm(i)(6)) is amended by adding at the end the 
     following new subparagraph:
       ``(C) In the case of an eligible organization for which the 
     Secretary makes a determination under paragraph (1) the basis 
     of which is not described in subparagraph (A), the Secretary 
     may apply the following intermediate sanctions:
       ``(i) Civil money penalties of not more than $25,000 for 
     each determination under paragraph (1) if the deficiency that 
     is the basis of the determination has directly adversely 
     affected (or has the substantial likelihood of adversely 
     affecting) an individual covered under the organization's 
     contract.
       ``(ii) Civil money penalties of not more than $10,000 for 
     each week beginning after the initiation of procedures by the 
     Secretary under paragraph (9) during which the deficiency 
     that is the basis of a determination under paragraph (1) 
     exists.
       ``(iii) Suspension of enrollment of individuals under this 
     section after the date the Secretary notifies the 
     organization of a determination under paragraph (1) and until 
     the Secretary is satisfied that the deficiency that is the 
     basis for the determination has been corrected and is not 
     likely to recur.''.
       (3) Procedures for imposing sanctions.--Section 1876(i) of 
     the Social Security Act (42 U.S.C. 1395mm(i)) is amended by 
     adding at the end the following new paragraph:
       ``(9) The Secretary may terminate a contract with an 
     eligible organization under this section or may impose the 
     intermediate sanctions described in paragraph (6) on the 
     organization in accordance with formal investigation and 
     compliance procedures established by the Secretary under 
     which--
       ``(A) the Secretary first provides the organization with 
     the reasonable opportunity to develop and implement a 
     corrective action plan to correct the deficiencies that were 
     the basis of the Secretary's determination under paragraph 
     (1) and the organization fails to develop or implement such a 
     plan;
       ``(B) in deciding whether to impose sanctions, the 
     Secretary considers aggravating factors such as whether an 
     organization has a history of deficiencies or has not taken 
     action to correct deficiencies the Secretary has brought to 
     the organization's attention;
       ``(C) there are no unreasonable or unnecessary delays 
     between the finding of a deficiency and the imposition of 
     sanctions; and
       ``(D) the Secretary provides the organization with 
     reasonable notice and opportunity for hearing (including the 
     right to appeal an initial decision) before imposing any 
     sanction or terminating the contract.''.
       (4) Conforming amendments.--Section 1876(i)(6)(B) of the 
     Social Security Act (42 U.S.C. 1395mm(i)(6)(B)) is amended by 
     striking the second sentence.
       (b) Agreements With Peer Review Organizations.--Section 
     1876(i)(7)(A) of the Social Security Act (42 U.S.C. 
     1395mm(i)(7)(A)) is amended by striking ``an agreement'' and 
     inserting ``a written agreement''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to contract years beginning on or 
     after July 1, 1996.

     SEC. 527. REWARDS FOR INFORMATION LEADING TO HEALTH CARE 
                   FRAUD PROSECUTION AND CONVICTION.

       (a) In General.--In special circumstances, the Secretary of 
     Health and Human Services and the Attorney General of the 
     United States may jointly make a payment of up to $10,000 to 
     a person who furnishes information unknown to the Government 
     relating to a possible prosecution for health care fraud.
       (b) Ineligible Persons.--A person is not eligible for a 
     payment under subsection (a) if--
       (1) the person is a current or former officer or employee 
     of a Federal or State government agency or instrumentality 
     who furnishes information discovered or gathered in the 
     course of government employment;
       (2) the person knowingly participated in the offense;
       (3) the information furnished by the person consists of 
     allegations or transactions that have been disclosed to the 
     public--
       (A) in a criminal, civil, or administrative proceeding;
       (B) in a congressional, administrative, or General 
     Accounting Office report, hearing, audit, or investigation; 
     or
       (C) by the news media, unless the person is the original 
     source of the information; or
       (4) in the judgment of the Attorney General, it appears 
     that a person whose illegal activities are being prosecuted 
     or investigated could benefit from the award.
       (c) Definitions.--
       (1) Health care fraud.--For purposes of this section, the 
     term ``health care fraud'' means health care fraud within the 
     meaning of section 1347 of title 18, United States Code.
       (2) Original source.--For the purposes of subsection 
     (b)(3)(C), the term ``original source'' means a person who 
     has direct and independent knowledge of the information that 
     is furnished and has voluntarily provided the information to 
     the Government prior to disclosure by the news media.
       (d) No Judicial Review.--Neither the failure of the 
     Secretary of Health and Human Services and the Attorney 
     General to authorize a payment under subsection (a) nor the 
     amount authorized shall be subject to judicial review.

     SEC. 528. EFFECTIVE DATE.

       The amendments made by this chapter shall take effect July 
     1, 1996.

                  CHAPTER 4--CIVIL MONETARY PENALTIES

     SEC. 531. SOCIAL SECURITY ACT CIVIL MONETARY PENALTIES.

       (a) General Civil Monetary Penalties.--Section 1128A of the 
     Social Security Act (42 U.S.C. 1320a-7a) is amended as 
     follows:
       (1) In the third sentence of subsection (a), by striking 
     ``programs under title XVIII'' and inserting ``Federal health 
     care programs (as defined in section 1128B(b)(f))''.
       (2) In subsection (f)--
       (A) by redesignating paragraph (3) as paragraph (4); and
       (B) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) With respect to amounts recovered arising out of a 
     claim under a Federal health care program (as defined in 
     section 1128B(f)), the portion of such amounts as is 
     determined to have been paid by the program shall be repaid 
     to the program, and the portion of such amounts attributable 
     to the amounts recovered under this section by reason of the 
     amendments made by the Health Care Fraud, Waste, and Abuse 
     Reduction Act of 1996 (as estimated by the Secretary) shall 
     be deposited into the general fund of the Treasury.''.
       (3) In subsection (i)--
       (A) in paragraph (2), by striking ``title V, XVIII, XIX, or 
     XX of this Act'' and inserting ``a Federal health care 
     program (as defined in section 1128B(f))'';
       (B) in paragraph (4), by striking ``a health insurance or 
     medical services program under title XVIII or XIX of this 
     Act'' and inserting ``a Federal health care program (as so 
     defined)''; and
       (C) in paragraph (5), by striking ``title V, XVIII, XIX, or 
     XX'' and inserting ``a Federal health care program (as so 
     defined)''.
       (4) By adding at the end the following new subsection:
       ``(m)(1) For purposes of this section, with respect to a 
     Federal health care program not contained in this Act, 
     references to the Secretary in this section shall be deemed 
     to be references to the Secretary or Administrator of the 
     department or agency with jurisdiction over such program and 
     references to the

[[Page S2114]]

     Inspector General of the Department of Health and Human 
     Services in this section shall be deemed to be references to 
     the Inspector General of the applicable department or agency.
       ``(2)(A) The Secretary and Administrator of the departments 
     and agencies referred to in paragraph (1) may include in any 
     action pursuant to this section, claims within the 
     jurisdiction of other Federal departments or agencies as long 
     as the following conditions are satisfied:
       ``(i) The case involves primarily claims submitted to the 
     Federal health care programs of the department or agency 
     initiating the action.
       ``(ii) The Secretary or Administrator of the department or 
     agency initiating the action gives notice and an opportunity 
     to participate in the investigation to the Inspector General 
     of the department or agency with primary jurisdiction over 
     the Federal health care programs to which the claims were 
     submitted.
       ``(B) If the conditions specified in subparagraph (A) are 
     fulfilled, the Inspector General of the department or agency 
     initiating the action is authorized to exercise all powers 
     granted under the Inspector General Act of 1978 with respect 
     to the claims submitted to the other departments or agencies 
     to the same manner and extent as provided in that Act with 
     respect to claims submitted to such departments or 
     agencies.''.
       (b) Excluded Individual Retaining Ownership or Control 
     Interest in Participating Entity.--Section 1128A(a) of the 
     Social Security Act (42 U.S.C. 1320a-7a(a)) is amended--
       (1) by striking ``or'' at the end of paragraph (1)(D);
       (2) by striking ``, or'' at the end of paragraph (2) and 
     inserting a semicolon;
       (3) by striking the semicolon at the end of paragraph (3) 
     and inserting ``; or''; and
       (4) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) in the case of a person who is not an organization, 
     agency, or other entity, is excluded from participating in a 
     program under title XVIII or a State health care program in 
     accordance with this subsection or under section 1128 and 
     who, at the time of a violation of this subsection, retains a 
     direct or indirect ownership or control interest of 5 percent 
     or more, or an ownership or control interest (as defined in 
     section 1124(a)(3)) in, or who is an officer or managing 
     employee (as defined in section 1126(b)) of, an entity that 
     is participating in a program under title XVIII or a State 
     health care program;''.
       (c) Employer Billing for Services Furnished, Directed, or 
     Prescribed by an Excluded Employee.--Section 1128A(a)(1) of 
     the Social Security Act (42 U.S.C. 1320a-7a(a)(1)) is 
     amended--
       (1) by striking ``or'' at the end of subparagraph (C);
       (2) by striking ``; or'' at the end of subparagraph (D) and 
     inserting ``, or''; and
       (3) by adding at the end the following new subparagraph:
       ``(E) is for a medical or other item or service furnished, 
     directed, or prescribed by an individual who is an employee 
     or agent of the person during a period in which such employee 
     or agent was excluded from the program under which the claim 
     was made on any of the grounds for exclusion described in 
     subparagraph (D);''.
       (d) Civil Money Penalties for Items or Services Furnished, 
     Directed, or Prescribed by an Excluded Individual.--Section 
     1128A(a)(1)(D) of the Social Security Act (42 U.S.C. 1320a-
     7a(a)(1)(D)) is amended by inserting ``, directed, or 
     prescribed'' after ``furnished''.
       (e) Modifications of Amounts of Penalties and 
     Assessments.--Section 1128A(a) of the Social Security Act (42 
     U.S.C. 1320a-7a(a)), as amended by subsection (b), is amended 
     in the matter following paragraph (4)--
       (1) by striking ``$2,000'' and inserting ``$10,000'';
       (2) by inserting ``; in cases under paragraph (4), $10,000 
     for each day the prohibited relationship occurs'' after 
     ``false or misleading information was given''; and
       (3) by striking ``twice the amount'' and inserting ``3 
     times the amount''.
       (f) Claim for Item or Service Based on Incorrect Coding or 
     Medically Unnecessary Services.--Section 1128A(a)(1) of the 
     Social Security Act (42 U.S.C. 1320a-7a(a)(1)) is amended--
       (1) in subparagraph (A) by striking ``claimed,'' and 
     inserting ``claimed, including any person who engages in a 
     pattern or practice of presenting or causing to be presented 
     a claim for an item or service that is based on a code that 
     the person knows or has reason to know will result in a 
     greater payment to the person than the code the person knows 
     or has reason to know is applicable to the item or service 
     actually provided,'';
       (2) in subparagraph (C), by striking ``or'' at the end;
       (3) in subparagraph (D), by striking ``; or'' and inserting 
     ``, or''; and
       (4) by inserting after subparagraph (D) the following new 
     subparagraph:
       ``(E) is for a medical or other item or service that a 
     person knows or has reason to know is not medically 
     necessary; or''.
       (g) Permitting Secretary To Impose Civil Monetary 
     Penalty.--Section 1128A(b) of the Social Security Act (42 
     U.S.C. 1320a-7a(a)) is amended by adding the following new 
     paragraph:
       ``(3) Any person (including any organization, agency, or 
     other entity, but excluding a beneficiary as defined in 
     subsection (i)(5)) who the Secretary determines has violated 
     section 1128B(b) of this title shall be subject to a civil 
     monetary penalty of not more than $10,000 for each such 
     violation. In addition, such person shall be subject to an 
     assessment of not more than twice the total amount of the 
     remuneration offered, paid, solicited, or received in 
     violation of section 1128B(b). The total amount of 
     remuneration subject to an assessment shall be calculated 
     without regard to whether some portion thereof also may have 
     been intended to serve a purpose other than one proscribed by 
     section 1128B(b).''.
       (h) Sanctions Against Practitioners and Persons for Failure 
     To Comply With Statutory Obligations.--Section 1156(b)(3) of 
     the Social Security Act (42 U.S.C. 1320c-5(b)(3)) is amended 
     by striking ``the actual or estimated cost'' and inserting 
     ``up to $10,000 for each instance''.
       (i) Prohibition Against Offering Inducements to Individuals 
     Enrolled Under Programs or Plans.--
       (1) Offer of remuneration.--Section 1128A(a) of the Social 
     Security Act (42 U.S.C. 1320a-7a(a)) is amended--
       (A) by striking ``or'' at the end of paragraph (1)(D);
       (B) by striking ``, or'' at the end of paragraph (2) and 
     inserting a semicolon;
       (C) by striking the semicolon at the end of paragraph (3) 
     and inserting ``; or''; and
       (D) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) offers to or transfers remuneration to any individual 
     eligible for benefits under title XVIII of this Act, or under 
     a State health care program (as defined in section 1128(h)) 
     that such person knows or should know is likely to influence 
     such individual to order or receive from a particular 
     provider, practitioner, or supplier any item or service for 
     which payment may be made, in whole or in part, under title 
     XVIII, or a State health care program;''.
       (2) Remuneration defined.--Section 1128A(i) of the Social 
     Security Act (42 U.S.C. 1320a-7a(i)) is amended by adding the 
     following new paragraph:
       ``(6) The term `remuneration' includes the waiver of 
     coinsurance and deductible amounts (or any part thereof), and 
     transfers of items or services for free or for other than 
     fair market value. The term `remuneration' does not include--
       ``(A) the waiver of coinsurance and deductible amounts by a 
     person, if--
       ``(i) the waiver is not offered as part of any 
     advertisement or solicitation;
       ``(ii) the person does not routinely waive coinsurance or 
     deductible amounts; and
       ``(iii) the person--

       ``(I) waives the coinsurance and deductible amounts after 
     determining in good faith that the individual is in financial 
     need;
       ``(II) fails to collect coinsurance or deductible amounts 
     after making reasonable collection efforts; or
       ``(III) provides for any permissible waiver as specified in 
     section 1128B(b)(3) or in regulations issued by the 
     Secretary;

       ``(B) differentials in coinsurance and deductible amounts 
     as part of a benefit plan design as long as the differentials 
     have been disclosed in writing to all beneficiaries, third 
     party payors, and providers, to whom claims are presented and 
     as long as the differentials meet the standards as defined in 
     regulations promulgated by the Secretary not later than 180 
     days after the date of the enactment of the Health Care 
     Fraud, Waste, and Abuse Reduction Act of 1996; or
       ``(C) incentives given to individuals to promote the 
     delivery of preventive care as determined by the Secretary in 
     regulations so promulgated.''.
       (j) Effective Date.--The amendments made by this section 
     shall take effect July 1, 1996.

                 CHAPTER 5--AMENDMENTS TO CRIMINAL LAW

     SEC. 541. HEALTH CARE FRAUD.

       (a) In General.--
       (1) Fines and imprisonment for health care fraud 
     violations.--Chapter 63 of title 18, United States Code, is 
     amended by adding at the end the following new section:

     ``Sec. 1347. Health care fraud

       ``(a) Whoever knowingly and willfully executes, or attempts 
     to execute, a scheme or artifice--
       ``(1) to defraud any health plan or other person, in 
     connection with the delivery of or payment for health care 
     benefits, items, or services; or
       ``(2) to obtain, by means of false or fraudulent pretenses, 
     representations, or promises, any of the money or property 
     owned by, or under he custody or control of, any health plan, 
     or person in connection with the delivery of or payment for 
     health care benefits, items, or services;

     shall be fined under this title or imprisoned not more than 
     10 years, or both. If the violation results in serious bodily 
     injury (as defined in section 1365(g)(3) of this title), such 
     person may be imprisoned for any term of years.
       ``(b) For purposes of this section, the term `health plan' 
     has the same meaning given such term in section 516(f)(6) of 
     the Health Care Fraud, Waste, and Abuse Reduction Act of 
     1996.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 63 of title 18, United States Code, is 
     amended by adding at the end the following:

``1347. Health care fraud.''.


[[Page S2115]]


       (b)  Criminal Fines Deposited in Federal Hospital Insurance 
     Trust Fund.--The Secretary of the Treasury shall deposit into 
     the Federal Hospital Insurance Trust Fund pursuant to section 
     1817(k)(2)(C) of the Social Security Act, as added by section 
     561(b), an amount equal to the criminal fines imposed under 
     section 1347 of title 18, United States Code (relating to 
     health care fraud).

     SEC. 542. FORFEITURES FOR FEDERAL HEALTH CARE OFFENSES.

       (a) In General.--Section 982(a) of title 18, United States 
     Code, is amended by adding after paragraph (5) the following 
     new paragraph:
       ``(6)(A) The court, in imposing sentence on a person 
     convicted of a Federal health care offense, shall order the 
     person to forfeit property, real or personal, that 
     constitutes or is derived, directly or indirectly, from 
     proceeds traceable to the commission of the offense.
       ``(B) For purposes of this paragraph, the term `Federal 
     health care offense' means a violation of, or a criminal 
     conspiracy to violate--
       ``(i) section 1347 of this title;
       ``(ii) section 1128B of the Social Security Act; and
       ``(iii) sections 287, 371, 664, 666, 1001, 1027, 1341, 
     1343, 1920, or 1954 of this title if the violation or 
     conspiracy relates to health care fraud.''.
       (b) Conforming Amendment.--Section 982(b)(1)(A) of title 
     18, United States Code, is amended by inserting ``or (a)(6)'' 
     after ``(a)(1)''.
       (c) Property Forfeited Deposited in Federal Hospital 
     Insurance Trust Fund.--
       (1) In general.--After the payment of the costs of asset 
     forfeiture has been made, and notwithstanding any other 
     provision of law, the Secretary of the Treasury shall deposit 
     into the Federal Hospital Insurance Trust Fund pursuant to 
     section 1817(k)(2)(C) of the Social Security Act, as added by 
     section 561(b), an amount equal to the net amount realized 
     from the forfeiture of property by reason of a Federal health 
     care offense pursuant to section 982(a)(6) of title 18, 
     United States Code.
       (2) Costs of asset forfeiture.--For purposes of paragraph 
     (1), the term ``payment of the costs of asset forfeiture'' 
     means--
       (A) the payment, at the discretion of the Attorney General, 
     of any expenses necessary to seize, detain, inventory, 
     safeguard, maintain, advertise, sell, or dispose of property 
     under seizure, detention, or forfeited, or of any other 
     necessary expenses incident to the seizure, detention, 
     forfeiture, or disposal of such property, including payment 
     for--
       (i) contract services,
       (ii) the employment of outside contractors to operate and 
     manage properties or provide other specialized services 
     necessary to dispose of such properties in an effort to 
     maximize the return from such properties; and
       (iii) reimbursement of any Federal, State, or local agency 
     for any expenditures made to perform the functions described 
     in this subparagraph;
       (B) at the discretion of the Attorney General, the payment 
     of awards for information or assistance leading to a civil or 
     criminal forfeiture involving any Federal agency 
     participating in the Health Care Fraud and Abuse Control 
     Account;
       (C) the compromise and payment of valid liens and mortgages 
     against property that has been forfeited, subject to the 
     discretion of the Attorney General to determine the validity 
     of any such lien or mortgage and the amount of payment to be 
     made, and the employment of attorneys and other personnel 
     skilled in State real estate law as necessary;
       (D) payment authorized in connection with remission or 
     mitigation procedures relating to property forfeited; and
       (E) the payment of State and local property taxes on 
     forfeited real property that accrued between the date of the 
     violation giving rise to the forfeiture and the date of the 
     forfeiture order.

     SEC. 543. INJUNCTIVE RELIEF RELATING TO FEDERAL HEALTH CARE 
                   OFFENSES.

       (a) In General.--Section 1345(a)(1) of title 18, United 
     States Code, is amended--
       (1) by striking ``or'' at the end of subparagraph (A);
       (2) by inserting ``or'' at the end of subparagraph (B); and
       (3) by adding at the end the following new subparagraph:
       ``(C) committing or about to commit a Federal health care 
     offense (as defined in section 982(a)(6)(B) of this 
     title);''.
       (b) Freezing of Assets.--Section 1345(a)(2) of title 18, 
     United States Code, is amended by inserting ``or a Federal 
     health care offense (as defined in section 982(a)(6)(B))'' 
     after ``title)''.

     SEC. 544. GRAND JURY DISCLOSURE.

       Section 3322 of title 18, United States Code, is amended--
       (1) by redesignating subsections (c) and (d) as subsections 
     (d) and (e), respectively; and
       (2) by inserting after subsection (b) the following new 
     subsection:
       ``(c) A person who is privy to grand jury information 
     concerning a Federal health care offense (as defined in 
     section 982(a)(6)(B))--
       ``(1) received in the course of duty as an attorney for the 
     Government; or
       ``(2) disclosed under rule 6(e)(3)(A)(ii) of the Federal 
     Rules of Criminal Procedure;

     may disclose that information to an attorney for the 
     Government to use in any investigation or civil proceeding 
     relating to health care fraud.''.

     SEC. 545. FALSE STATEMENTS.

       (a) In General.--Chapter 47, of title 18, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1035. False statements relating to health care matters

       ``(a) Whoever, in any matter involving a health plan, 
     knowingly and willfully falsifies, conceals, or covers up by 
     any trick, scheme, or device a material fact, or makes any 
     false, fictitious, or fraudulent statements or 
     representations, or makes or uses any false writing or 
     document knowing the same to contain any false, fictitious, 
     or fraudulent statement or entry, shall be fined under this 
     title or imprisoned not more than 5 years, or both.
       ``(b) For purposes of this section, the term `health plan' 
     has the same meaning given such term in section 516(f)(6) of 
     the Health Care Fraud, Waste, and Abuse Reduction Act of 
     1996.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 47 of title 18, United States Code, in 
     amended by adding at the end the following:

``1035. False statements relating to health care matters.''.

     SEC. 546. OBSTRUCTION OF CRIMINAL INVESTIGATIONS, AUDITS, OR 
                   INSPECTIONS OF FEDERAL HEALTH CARE OFFENSES.

       (a) In General.--Chapter 73 of title 18, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1518. Obstruction of criminal investigations, audits, 
       or inspections of Federal health care offenses

       ``(a) In General.--Whoever willfully prevents, obstructs, 
     misleads, delays or attempts to prevent, obstruct, mislead, 
     or delay the communication of information or records relating 
     to a Federal health care offense to a Federal agent or 
     employee involved in an investigation, audit, inspection, or 
     other activity related to such an offense, shall be fined 
     under this title or imprisoned not more than 5 years, or 
     both.
       ``(b) Federal Health Care Offense.--As used in this section 
     the term `Federal health care offense' has the same meaning 
     given such term in section 982(a)(6)(B) of this title.
       ``(c) Criminal Investigator.--As used in this section the 
     term `criminal investigator' means any individual duly 
     authorized by a department, agency, or armed force of the 
     United States to conduct or engage in investigations for 
     prosecutions for violations of health care offenses.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 73 of title 18, United States Code, is 
     amended by adding at the end the following:

``1518. Obstruction of criminal investigations, audits, or inspections 
              of Federal health care offenses.''.

     SEC. 547. THEFT OR EMBEZZLEMENT.

       (a) In General.--Chapter 31 of title 18, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 669. Theft or embezzlement in connection with health 
       care

       ``(a) In General.--Whoever willfully embezzles, steals, or 
     otherwise without authority willfully and unlawfully converts 
     to the use of any person other than the rightful owner, or 
     intentionally misapplies any of the moneys, funds, 
     securities, premiums, credits, property, or other assets of a 
     health plan, shall be fined under this title or imprisoned 
     not more than 10 years, or both.
       ``(b) Health Plan.--As used in this section the term 
     `health plan' has the same meaning given such term in section 
     516(f)(6) of the Health Care Fraud, Waste, and Abuse 
     Reduction Act of 1996.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 31 of title 18, United States Code, is 
     amended by adding at the end the following:

``669. Theft or embezzlement in connection with health care.''.

     SEC. 548. LAUNDERING OF MONETARY INSTRUMENTS.

       Section 1956(c)(7) of title 18, United States Code, is 
     amended by adding at the end the following new subparagraph:
       ``(F) Any act or activity constituting an offense involving 
     a Federal health care offense as that term is defined in 
     section 982(a)(6)(B) of this title.''.

     SEC. 549. AUTHORIZED INVESTIGATIVE DEMAND PROCEDURES.

       (a) In General.--Chapter 233 of title 18, United States 
     Code, is amended by adding after section 3485 the following 
     new section:

     ``Sec. 3486. Authorized investigative demand procedures

       ``(a) Authorization.--
       ``(1) In any investigation relating to functions set forth 
     in paragraph (2), the Attorney General or designee may issue 
     in writing and cause to be served a subpoena compelling 
     production of any records (including any books, papers, 
     documents, electronic media, or other objects or tangible 
     things), which may be relevant to an authorized law 
     enforcement inquiry, that a person or legal entity may 
     possess or have care, custody, or control. A custodian of 
     records may be required to give testimony concerning the 
     production and authentication of such records. The production 
     of records may be required from any place in any State or in 
     any territory or other place subject to the jurisdiction of 
     the United States at any designated place; except that such 
     production shall not be required more than 500 miles distant 
     from the place where the subpoena is served. Witnesses 
     summoned under this section shall be paid the same fees and 
     mileage that are paid

[[Page S2116]]

     witnesses in the courts of the United States. A subpoena 
     requiring the production of records shall describe the 
     objects required to be produced and prescribe a return date 
     within a reasonable period of time within which the objects 
     can be assembled and made available.
       ``(2) Investigative demands utilizing an administrative 
     subpoena are authorized for any investigation with respect to 
     any act or activity constituting or involving health care 
     fraud, including a scheme or artifice--
       ``(A) to defraud any health plan or other person, in 
     connection with the delivery of or payment for health care 
     benefits, items, or services; or
       ``(B) to obtain, by means of false or fraudulent pretenses, 
     representations, or promises, any of the money or property 
     owned by, or under the custody or control or, any health 
     plan, or person in connection with the delivery of or payment 
     for health care benefits, items, or services.
       ``(b) Service.--A subpoena issued under this section may be 
     served by any person designated in the subpoena to serve it. 
     Service upon a natural person may be made by personal 
     delivery of the subpoena to such person. Service may be made 
     upon a domestic or foreign association which is subject to 
     suit under a common name, by delivering the subpoena to an 
     officer, to a managing or general agent, or to any other 
     agent authorized by appointment or by law to receive service 
     of process. The affidavit of the person serving the subpoena 
     entered on a true copy thereof by the person serving it shall 
     be proof of service.
       ``(c) Enforcement.--In the case of contumacy by or refusal 
     to obey a subpoena issued to any person, the Attorney General 
     may invoke the aid of any court of the United States within 
     the jurisdiction of which the investigation is carried on or 
     of which the subpoenaed person is an inhabitant, or in which 
     such person carries on business or may be found, to compel 
     compliance with the subpoena. The court may issue an order 
     requiring the subpoenaed person to appear before the Attorney 
     General to produce records, if go ordered, or to give 
     testimony touching the matter under investigation. Any 
     failure to obey the order of the court may be punished by the 
     court as a contempt thereof. All process in any such case may 
     be served in any judicial district in which such person may 
     be found.
       ``(d) Immunity From Civil Liability.--Notwithstanding any 
     Federal, State, or local law, any person, including officers, 
     agents, and employees, receiving a subpoena under this 
     section, who complies in good faith with the subpoena and 
     thus produces the materials sought, shall not be liable in 
     any court of any State or the United States to any customer 
     or other person for such production or for nondisclosure of 
     that production to the customer.
       ``(e) Use in Action Against Individuals.--
       ``(1) Health information about an individual that is 
     disclosed under this section may not be used in, or disclosed 
     to any person for use in, any administrative, civil, or 
     criminal action or investigation directed against the 
     individual who is the subject of the information unless the 
     action or investigation arises out of and is directly related 
     to receipt of health care or payment for health care or 
     action involving a fraudulent claim related to health; or if 
     authorized by an appropriate order of a court of competent 
     jurisdiction, granted after application showing good cause 
     therefore.
       ``(2) In assessing good cause, the court shall weigh the 
     public interest and the need for disclosure against the 
     injury to the patient, to the physician-patient relationship, 
     and to the treatment services.
       ``(3) Upon the granting of such order, the court, in 
     determining the extent to which any disclosure of all or any 
     part of any record is necessary, shall impose appropriate 
     safeguards against unauthorized disclosure.
       ``(f) Health Plan.--As used in this section the term 
     `health plan' has the same meaning given such term in section 
     516(f)(6) of the Health Care Fraud, Waste, and Abuse 
     Reduction Act of 1996.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     223 of title 18, United States Code, is amended by inserting 
     after the item relating to section 3485 the following new 
     item:

``3486. Authorized investigative demand procedures.''.

       (c) Conforming Amendment.--Section 1510(b)(3)(B) of title 
     18, United States Code, is amended by inserting ``or a 
     Department of Justice subpoena (issued under section 3486),'' 
     after ``subpoena''.

            CHAPTER 6--STATE HEALTH CARE FRAUD CONTROL UNITS

     SEC. 551. STATE HEALTH CARE FRAUD CONTROL UNITS.

       (a) Extension of Concurrent Authority To Investigate and 
     Prosecute Fraud in Other Federal Programs.--Section 
     1903(q)(3) of the Social Security Act (42 U.S.C. 1396b(q)(3)) 
     is amended--
       (1) by inserting ``(A)'' after ``in connection with''; and
       (2) by striking ``title.'' and inserting ``title; and (B) 
     in cases where the entity's function is also described by 
     subparagraph (A), and upon the approval of the relevant 
     Federal agency, any aspect of the provision of health care 
     services and activities of providers of such services under 
     any Federal health care program (as defined in section 
     1128B(b)(1)).''.
       (b) Extension of Authority To Investigate and Prosecute 
     Patient Abuse in Non-Medicaid Board and Care Facilities.--
     Section 1903(q)(4) of the Social Security Act (42 U.S.C. 
     1396b(q)(4)) is amended to read as follows:
       ``(4)(A) The entity has--
       ``(i) procedures for reviewing complaints of abuse or 
     neglect of patients in health care facilities which receive 
     payments under the State plan under this title;
       ``(ii) at the option of the entity, procedures for 
     reviewing complaints of abuse or neglect of patients residing 
     in board and care facilities; and
       ``(iii) procedures for acting upon such complaints under 
     the criminal laws of the State or for referring such 
     complaints to other State agencies for action.
       ``(B) For purposes of this paragraph, the term `board and 
     care facility' means a residential setting which receives 
     payment from or on behalf of two or more unrelated adults who 
     reside in such facility, and for whom one or both of the 
     following is provided:
       ``(i) Nursing care services provided by, or under the 
     supervision of, a registered nurse, licensed practical nurse, 
     or licensed nursing assistant.
       ``(ii) Personal care services that assist residents with 
     the activities of daily living, including personal hygiene, 
     dressing, bathing, eating, toileting, ambulation, transfer, 
     positioning, self-medication, body care, travel to medical 
     services, essential shopping, meal preparation, laundry, and 
     housework.''.

         CHAPTER 7--MEDICARE/MEDICAID BILLING ABUSE PREVENTION

     SEC. 561. UNIFORM MEDICARE/MEDICAID APPLICATION PROCESS.

       Not later than 1 year after the date of the enactment of 
     this Act, the Secretary shall establish procedures and a 
     uniform application form for use by any individual or entity 
     that seeks to participate in the programs under titles XVIII 
     and XIX of the Social Security Act (42 U.S.C. 1395 et seq.; 
     42 U.S.C. 1396 et seq.). The procedures established shall 
     include the following:
       (1) Execution of a standard authorization form by all 
     individuals and entities prior to submission of claims for 
     payment which shall include the social security number of the 
     beneficiary and the TIN (as defined in section 7701(a)(41) of 
     the Internal Revenue Code of 1986) of any health care 
     provider, supplier, or practitioner providing items or 
     services under the claim.
       (2) Assumption of responsibility and liability for all 
     claims submitted.
       (3) A right of access by the Secretary to provider records 
     relating to items and services rendered to beneficiaries of 
     such programs.
       (4) Retention of source documentation.
       (5) Provision of complete and accurate documentation to 
     support all claims for payment.
       (6) A statement of the legal consequences for the 
     submission of false or fraudulent claims for payment.

     SEC. 562. STANDARDS FOR UNIFORM CLAIMS.

       (a) Establishment of Standards.--Not later than 1 year 
     after the date of the enactment of this Act, the Secretary 
     shall establish standards for the form and submission of 
     claims for payment under the medicare program under title 
     XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) and 
     the medicaid program under title XIX of such Act (42 U.S.C. 
     1396 et seq.).
       (b) Ensuring Provider Responsibility.--In establishing 
     standards under subsection (a), the Secretary, in 
     consultation with appropriate agencies including the 
     Department of Justice, shall include such methods of ensuring 
     provider responsibility and accountability for claims 
     submitted as necessary to control fraud and abuse.
       (c) Use of Electronic Media.--The Secretary shall develop 
     specific standards which govern the submission of claims 
     through electronic media in order to control fraud and abuse 
     in the submission of such claims.

     SEC. 563. UNIQUE PROVIDER IDENTIFICATION CODE.

       (a) Establishment of System.--Not later than 1 year after 
     the date of the enactment of this Act, the Secretary shall 
     establish a system which provides for the issuance of a 
     unique identifier code for each individual or entity 
     furnishing items or services for which payment may be made 
     under title XVIII or XIX of the Social Security (42 U.S.C. 
     1395 et seq.; 1396 et seq.), and the notation of such unique 
     identifier codes on all claims for payment.
       (b) Application Fee.--The Secretary shall require an 
     individual applying for a unique identifier code under 
     subsection (a) to submit a fee in an amount determined by the 
     Secretary to be sufficient to cover the cost of investigating 
     the information on the application and the individual's 
     suitability for receiving such a code.

     SEC. 564. USE OF NEW PROCEDURES.

       No payment may be made under either title XVIII or XIX of 
     the Social Security Act (42 U.S.C. 1395 et seq.; 42 U.S.C. 
     1396 et seq.) for any item or service furnished by an 
     individual or entity unless the requirements of sections 562 
     and 563 are satisfied.

     SEC. 565. REQUIRED BILLING, PAYMENT, AND COST LIMIT 
                   CALCULATION TO BE BASED ON SITE WHERE SERVICE 
                   IS FURNISHED.

       (a) Conditions of Participation.--Section 1891 of the 
     Social Security Act (42 U.S.C. 1395bbb) is amended by adding 
     at the end the following new subsection:
       ``(g) A home health agency shall submit claims for payment 
     of home health services

[[Page S2117]]

     under this title only on the basis of the geographic location 
     at which the service is furnished, as determined by the 
     secretary.''.
       (b) Wage Adjustment.--Section 1861(v)(1)(L)(iii) of the 
     Social Security Act (42 U.S.C. 1395x(v)(1)(L)(iii)) is 
     amended by striking ``agency is located'' and inserting 
     ``service is furnished''.

     SEC. 566. STANDARDS FOR PHYSICAL THERAPY SERVICES FURNISHED 
                   BY PHYSICIANS.

       (a) Application of Standards for Other Providers of 
     Physical Therapy Services to Services furnished by 
     physicians.--Section 1862(a) of the Social Security Act (42 
     U.S.C. 1395y(a)) is amended--
       (1) by striking ``or'' at the end of paragraph 14;
       (2) by striking the period at the end of paragraph (15) and 
     inserting ``; or''; and
       (2) by adding at the end the following new paragraph:
       ``(16) in the case of physicians' services under 1848(j)(3) 
     consisting of outpatient physical therapy services or 
     outpatient occupational therapy services, which are furnished 
     by a physician who does not meet the requirements applicable 
     under section 1861(p) to a clinic or rehabilitation agency 
     furnishing such services.''.
       (b) Conforming Amendment.--Section 1848(j)(3) of the Social 
     Security Act (42 U.S.C. 1395w-4(j)(3)) is amended by 
     inserting ``(subject to section 1862(a)(16))'' after 
     ``(2)(D)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to services furnished on or after July 1, 1996.

     SEC. 567. PENALTY FOR FALSE CERTIFICATION FOR HOME HEALTH 
                   SERVICES.

       (a) In General.--Section 1128A(b) of the Social Security 
     Act (42 U.S.C. 1320a-7a(b)), as amended by section 531(g), is 
     amended by adding at the end the following new paragraph:
       ``(4)(A) Any physician who executes a document described in 
     subparagraph (B) with respect to an individual knowing that 
     all of the requirements referred to in such subparagraph are 
     not met with respect to the individual shall be subject to a 
     civil monetary penalty of not more than the greater of--
       ``(i) $5,000, or
       ``(ii) three times the amount of the payments under title 
     XVIII for home health services which are made pursuant to 
     such certification.
       ``(B) A document described in this subparagraph is any 
     document that certifies, for purposes of title XVIII, that an 
     individual meets the requirements of section 1814(a)(2)(C) or 
     1835(a)(2)(A) in the case of home health services furnished 
     to the individual.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to certifications made on or after the date of 
     the enactment of this Act.

     SEC. 568. ITEMIZATION OF SURGICAL DRESSING BILLS SUBMITTED BY 
                   HOME HEALTH AGENCIES.

       Section 1834(i)(2) (42 U.S.C. 1395m(i)(2) is amended to 
     read as follows:
       ``(2) Exception.--Paragraph (1) shall not apply to surgical 
     dressings that are furnished as an incident to a physician's 
     professional service.''.
  Subtitle B--Additional Provisions to Combat Waste, Fraud, and Abuse

                  CHAPTER 1--WASTE AND ABUSE REDUCTION

     SEC. 571. PROHIBITING UNNECESSARY AND WASTEFUL MEDICARE 
                   PAYMENTS FOR CERTAIN ITEMS.

       Notwithstanding any other provision of law, including any 
     regulation or payment policy, the following categories of 
     charges shall not be reimbursable under title XVIII of the 
     Social Security Act:
       (1) Tickets to sporting or other entertainment events.
       (2) Gifts or donations.
       (3) Costs related to team sports.
       (4) Personal use of motor vehicles.
       (5) Costs for fines and penalties resulting from violations 
     of Federal, State, or local laws.
       (6) Tuition or other education fees for spouses or 
     dependents of providers of services, their employees, or 
     contractors.

     SEC. 572. APPLICATION OF COMPETITIVE ACQUISITION PROCESS FOR 
                   PART B ITEMS AND SERVICES.

       (a) General Rule.--Part B of title XVIII of the Social 
     Security Act is amended by inserting after section 1846 of 
     such Act the following new section:


            ``competition acquisition for items and services

       ``Sec. 1847. (a) Establishment of Bidding Areas.--
       ``(1) In general.--The Secretary shall establish 
     competitive acquisition areas for the purpose of awarding a 
     contract or contracts for the furnishing under this part of 
     the items and services described in subsection (c) on or 
     after January 1, 1997. The Secretary may establish different 
     competitive acquisition areas under this subsection for 
     different classes of items and services under this part.
       ``(2) Criteria for establishment.--The competitive 
     acquisition areas established under paragraph (1) shall--
       ``(A) initially be within, or be centered around 
     metropolitan statistical areas;
       ``(B) be chosen based on the availability and accessibility 
     of suppliers and the probable savings to be realized by the 
     use of competitive bidding in the furnishing of items and 
     services in the area; and
       ``(C) be chosen so as to not reduce access to such items 
     and services to individuals, including those residing in 
     rural and other underserved areas.
       ``(b) Awarding of Contracts in Areas.--
       ``(1) In general.--The Secretary shall conduct a 
     competition among individuals and entities supplying items 
     and services under this part for each competitive acquisition 
     area established under subsection (a) for each class of items 
     and services.
       ``(2) Conditions for awarding contract.--The Secretary may 
     not award a contract to any individual or entity under the 
     competition conducted pursuant to paragraph (1) to furnish an 
     item or service under this part unless the Secretary finds 
     that the individual or entity--
       ``(A) meets quality standards specified by the Secretary 
     for the furnishing of such item or service; and
       ``(B) offers to furnish a total quantity of such item or 
     service that is sufficient to meet the expected need within 
     the competitive acquisition area and to assure that access to 
     such items (including appropriate customized items) and 
     services to individuals, including those residing in rural 
     and other underserved areas, is not reduced.
       ``(3) Contents of contract.--A contract entered into with 
     an individual or entity under the competition conducted 
     pursuant to paragraph (1) shall specify (for all of the items 
     and services within a class)--
       ``(A) the quantity of items and services the entity shall 
     provide; and
       ``(B) such other terms and conditions as the Secretary may 
     require.
       ``(c) Services Described.--The items and services to which 
     the provisions of this section shall apply are as follows:
       ``(1) Durable medical equipment and medical supplies.
       ``(2) Oxygen and oxygen equipment.
       ``(3) Such other items and services with respect to which 
     the Secretary determines the use of competitive acquisition 
     under this section to be appropriate and cost-effective.''.
       (b) Items and Services To Be Furnished Only Through 
     Competitive Acquisition.--Section 1862(a) of the Social 
     Security Act (42 U.S.C. 1395y(a)), as amended by section 566, 
     is amended--
       (1) by striking ``or'' at the end of paragraph (15);
       (2) by striking the period at the end of paragraph (16) and 
     inserting ``; or''; and
       (3) by inserting at the end the following new paragraph:
       ``(17) where such expenses are for an item or service 
     furnished in a competitive acquisition area (as established 
     by the Secretary under section 1847(a)) by an individual or 
     entity other than the supplier with whom the Secretary has 
     entered into a contract under section 1847(b) for the 
     furnishing of such item or service in that area, unless the 
     Secretary finds that such expenses were incurred in a case of 
     urgent need.''.
       (c) Reduction in Payment Amounts if Competitive Acquisition 
     Fails To Achieve Minimum Reduction in Payments.--
     Notwithstanding any other provision of title XVIII of the 
     Social Security Act, if the establishment of competitive 
     acquisition areas under section 1847 of such Act (as added by 
     subsection (a)) and the limitation of coverage for items and 
     services under part B of such title to items and services 
     furnished by providers with competitive acquisition contracts 
     under such section does not result in a reduction, beginning 
     on January 1, 1997, of at least 20 percent (40 percent in the 
     case of oxygen and oxygen equipment) in the projected payment 
     amount that would have applied to an item or service under 
     part B if the item or service had not been furnished through 
     competitive acquisition under such section, the Secretary 
     shall reduce such payment amount by such percentage as the 
     Secretary determines necessary to result in such a reduction.

     SEC. 573. REDUCING EXCESSIVE BILLINGS AND UTILIZATION FOR 
                   CERTAIN ITEMS.

       Section 1834(a)(15) of the Social Security Act (42 U.S.C. 
     1395m(a)(15)) is amended by striking ``Secretary may'' both 
     places it appears and inserting ``Secretary shall''.

     SEC. 574. IMPROVED CARRIER AUTHORITY TO REDUCE EXCESSIVE 
                   MEDICARE PAYMENTS.

       (a) General Rule.--Section 1834(a)(10)(B) of the Social 
     Security Act (42 U.S.C. 1395m(a)(10)(B)) is amended by 
     striking ``paragraphs (8) and (9)'' and all that follows 
     through the end of the sentence and inserting ``section 
     1842(b)(8) to covered items and suppliers of such items and 
     payments under this subsection as such provisions (relating 
     to determinations of grossly excessive payment amounts) apply 
     to items and services and entities and a reasonable charge 
     under section 1842(b)''.
       (b) Repeal of Obsolete Provisions.--
       (1) Section 1842(b)(8) of the Social Security Act (42 
     U.S.C. 1395u(b)(8)) is amended--
       (A) by striking subparagraphs (B) and (C),
       (B) by striking ``(8)(A)'' and inserting ``(8)'', and
       (C) by redesignating clauses (i) and (ii) as subparagraphs 
     (A) and (B), respectively.
       (2) Section 1842(b)(9) of such Act (42 U.S.C. 1395u(b)(9)) 
     is repealed.
       (c) Payment for Surgical Dressings.--Section 1834(i) of the 
     Social Security Act (42 U.S.C. 1395m(i)) is amended by adding 
     at the end the following new paragraph:
       ``(3) Grossly excessive payment amounts.--Notwithstanding 
     paragraph (1), the Secretary may apply the provisions of 
     section 1842(b)(8) to payments under this subsection.''.

[[Page S2118]]

     SEC. 575. EFFECTIVE DATE.

       The amendments made by this chapter shall apply to items 
     and services furnished under title XVIII of the Social 
     Security Act on or after July 6, 1996.

              CHAPTER 2--MEDICARE BILLING ABUSE PREVENTION

     SEC. 581. IMPLEMENTATION OF GENERAL ACCOUNTING OFFICE 
                   RECOMMENDATIONS REGARDING MEDICARE CLAIMS 
                   PROCESSING.

       (a) In General.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary shall, by 
     regulation, contract, change order, or otherwise, require 
     medicare carriers to acquire commercial automatic data 
     processing equipment (in this subtitle referred to as 
     ``ADPE'') meeting the requirements of section 582 to process 
     medicare part B claims for the purpose of identifying billing 
     code abuse.
       (b) Supplementation.--Any ADPE acquired in accordance with 
     subsection (a) shall be used as a supplement to any other 
     ADPE used in claims processing by medicare carriers.
       (c) Standardization.--In order to ensure uniformity, the 
     Secretary may require that medicare carriers that use a 
     common claims processing system acquire common ADPE in 
     implementing subsection (a).
       (d) Implementation Date.--Any ADPE acquired in accordance 
     with subsection (a) shall be in use by medicare carriers not 
     later than 180 days after the date of the enactment of this 
     Act.

     SEC. 582. MINIMUM SOFTWARE REQUIREMENTS.

       (a) In General.--The requirements described in this section 
     are as follows:
       (1) The ADPE shall be a commercial item.
       (2) The ADPE shall surpass the capability of ADPE used in 
     the processing of medicare part B claims for identification 
     of code manipulation on the day before the date of the 
     enactment of this Act.
       (3) The ADPE shall be capable of being modified to--
       (A) satisfy pertinent statutory requirements of the 
     medicare program; and
       (B) conform to general policies of the Health Care 
     Financing Administration regarding claims processing.
       (b) Minimum Standards.--Nothing in this subtitle shall be 
     construed as preventing the use of ADPE which exceeds the 
     minimum requirements described in subsection (a).

     SEC. 583. DISCLOSURE.

       (a) In General.--Notwithstanding any other provision of 
     law, and except as provided in subsection (b), any ADPE or 
     data related thereto acquired by medicare carriers in 
     accordance with section 581(a) shall not be subject to public 
     disclosure.
       (b) Exception.--The Secretary may authorize the public 
     disclosure of any ADPE or data related thereto acquired by 
     medicare carriers in accordance with section 581(a) if the 
     Secretary determines that--
       (1) release of such information is in the public interest; 
     and
       (2) the information to be released is not protected from 
     disclosure under section 552(b) of title 5, United States 
     Code.

     SEC. 584. REVIEW AND MODIFICATION OF REGULATIONS.

       Not later than 30 days after the date of the enactment of 
     this Act, the Secretary shall order a review of existing 
     regulations, guidelines, and other guidance governing 
     medicare payment policies and billing code abuse to determine 
     if revision of or addition to those regulations, guidelines, 
     or guidance is necessary to maximize the benefits to the 
     Federal Government of the use of ADPE acquired pursuant to 
     section 581.

     SEC. 585. DEFINITIONS.

       For purposes of this chapter--
       (1) The term ``automatic data processing equipment'' (ADPE) 
     has the same meaning as in section 111(a)(2) of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     759(a)(2)).
       (2) The term ``billing code abuse'' means the submission to 
     medicare carriers of claims for services that include 
     procedure codes that do not appropriately describe the total 
     services provided or otherwise violate medicare payment 
     policies.
       (3) The term ``commercial item'' has the same meaning as in 
     section 4(12) of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 403(12)).
       (4) The term ``medicare part B'' means the supplementary 
     medical insurance program authorized under part B of title 
     XVIII of the Social Security Act (42 U.S.C. 1395j-1395w-4).
       (5) The term ``medicare carrier'' means an entity that has 
     a contract with the Health Care Financing Administration to 
     determine and make medicare payments for medicare part B 
     benefits payable on a charge basis and to perform other 
     related functions.
       (6) The term ``payment policies'' means regulations and 
     other rules that govern billing code abuses such as 
     unbundling, global service violations, double billing, and 
     unnecessary use of assistants at surgery.
       (7) The term ``Secretary'' means the Secretary of Health 
     and Human Services.
                                 ______


                        HATCH AMENDMENT NO. 3499

  Mr. HATCH proposed an amendment to amendment No. 3466 proposed by Mr. 
Hatfield to the bill H.R. 3019, supra; as follows:

       Page 29, line 18, insert the following:
       ``Provided further, That no less than $20,000,000 shall be 
     for the District of Columbia Metropolitan Police Department 
     to be used at the discretion of the police chief for law 
     enforcement purposes, conditioned upon prior written 
     consultation and notification being given to the chairman and 
     ranking members of the House and Senate Committees on the 
     Judiciary and Appropriations.''
                                 ______


                McCONNELL (AND DOLE) AMENDMENT NO. 3500

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

       On page 756, title III--Miscellaneous Provisions, strike 
     Sec. 3001, beginning on line 14 ``The President,'' through 
     line 25, ending ``such restrictions.''
                                 ______


                 COHEN (AND BUMPERS) AMENDMENT NO. 3501

  Mr. COHEN (for himself and Mr. Bumpers) proposed an amendment to 
amendment No. 3466 to the bill H.R. 3019, supra; as follows:

       In section 504 under the heading ``Administrative 
     Provisions-Legal Services Corporation--
       (1) redesignate subsection (e) as subsection (f); and
       (2) insert after subsection (d), the following new 
     subsection:
       ``(e) Nothing in this section shall be construed to 
     prohibit a recipient from using funds derived from a source 
     other than the Legal Services Corporation to comment on 
     public rulemaking or to respond to a written request for 
     information or testimony from a Federal, State or local 
     agency, legislative body or committee, or a member of such an 
     agency, body, or committee, so long as the response is made 
     only to the parties that make the request and the recipient 
     does not arrange for the request to be made.''
                                 ______


                      FAIRCLOTH AMENDMENT NO. 3502

  Mr. FAIRCLOTH proposed an amendment to amendment No. 3466 to the bill 
H.R. 3019, supra; as follows:

       On page 751, line 7, insert after ``1974:'' the following: 
     ``Provided further, That contracts to carry out programs 
     using such funds shall, to the maximum extent practicable, be 
     entered into with companies organized under the laws of a 
     State of the United States and organizations (including 
     community chests, funds, foundations, non-incorporated 
     businesses, and other institutions) organized in the United 
     States.''.
                                 ______


                       GORTON AMENDMENT NO. 3503

  Mr. GORTON proposed an amendment to amendment No. 3466 to the bill 
H.R. 3019, supra; as follows:

       On page 405, line 17, strike ``$567,152,000'' and insert in 
     lieu thereof ``$567,753,000''.
       On page 412, line 23, strike ``$497,670,000'' and insert in 
     lieu thereof ``$497,850,000''.
       On page 419, line 22, strike ``$1,086,014,000'' and insert 
     in lieu thereof ``$1,084,755,000''.
       On page 424, line 21, strike ``$729,995,000'' and insert in 
     lieu thereof ``$730,330,000''.
       On page 428, line 6, strike ``$182,339,000'' and insert in 
     lieu thereof ``$182,771,000''.
       On page 447, line 7, strike ``$56,456,000'' and insert in 
     lieu thereof ``$57,340,000''.
       On page 447, line 13, strike ``$34,337,000'' and insert in 
     lieu thereof ``$34,516,000''.
       On page 474, line 21, strike ``$416,943,000'' and insert in 
     lieu thereof ``$417,092,000''.
       On page 475, line 21, strike ``$553,137,000'' and insert in 
     lieu thereof ``$553,240,000''.
       On page 440, line 19, strike ``March 31, 1996'' and insert 
     in lieu thereof ``September 30, 1996''.
                                 ______


                       STEVENS AMENDMENT NO. 3504

  Mr. GORTON (for Mr. Stevens) proposed an amendment to amendment No. 
3466 to the bill H.R. 3019, supra; as follows:

       To the amendment numbered 3466: On page 740, line 6 of the 
     bill, strike ``$34,800,000'' and insert ``37,300,000'' in 
     lieu thereof.
                                 ______


                     KEMPTHORNE AMENDMENT NO. 3505

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

       To the amendment numbered 3466:
       On page 740 of the bill, insert the following after line 3:


                         ``resource management

       ``For an additional amount for Resource Management, 
     $1,600,000, to remain available until expended, to provide 
     technical assistance to the Natural Resource Conservation 
     Service, the Federal Emergency Management Agency, the U.S. 
     Army Corps of Engineers and other agencies on fish and 
     wildlife habitat issues relating to damage caused by floods, 
     storms and other acts of nature: Provided, That the entire 
     amount shall be available only to the extent that 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, as amended, is 
     transmitted by the President to Congress: Provided further, 
     That the entire

[[Page S2119]]

     amount is designated by Congress as an emergency requirement 
     pursuant to section 251(b)(D)(i) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended.''.
                                 ______


                       DASCHLE AMENDMENT NO. 3506

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

       On page 480, line 14 after ``Provided,'' insert ``That of 
     the funds provided, $800,000 shall be used for inhalant abuse 
     treatment programs to treat inhalant abuse and to provide for 
     referrals to specialized treatment facilities in the United 
     States: Provided further,''.
                                 ______


                       GORTON AMENDMENT NO. 3507

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

       On page 744, beginning on line 1, strike ``emergency'' 
     through ``Mine'' on line 2, and insert in lieu thereof the 
     following: ``response and rehabilitation, including access 
     repairs, at the Amalgamated Mill''.
                                 ______


                 BOXER (AND MURRAY) AMENDMENT NO. 3508

  Mrs. BOXER (for herself and Mrs. Murray) proposed an amendment to 
amendment No. 3466 proposed by Mr. Hatfield to the bill H.R. 3019, 
supra; as follows:

       On page 222, line 4, insert ``Federal'' before ``funds''.
                                 ______


                      MIKULSKI AMENDMENT NO. 3509

  Ms. MIKULSKI proposed an amendment to amendment No. 3466 proposed by 
Mr. Hatfield to the bill H.R. 3019, supra; as follows:

       Strike p. 692, line 21 through p. 696, line 2 and insert:

             CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

                National and Community Service Programs


                           operating expenses

                     (including transfer of funds)

       For necessary expenses for the Corporation for National and 
     Community Service (referred to in the matter under this 
     heading as the ``Corporation'') in carrying out programs, 
     activities, and initiatives under the National and Community 
     Service Act of 1990 (referred to in the matter under this 
     heading as the ``Act'') (42 U.S.C. 12501 et seq.), 
     $400,500,000, of which $265,000,000 shall be available for 
     obligation from September 1, 1996, through September 30, 
     1997: Provided, That not more than $25,000,000 shall be 
     available for administrative expenses authorized under 
     section 501(a)(4) of the Act (42 U.S.C. 12671(a)(4)): 
     Provided further, That not more than $2,500 shall be for 
     official reception and representation expenses: Provided 
     further, That not more than $59,000,000, to remain available 
     without fiscal year limitation, shall be transferred to the 
     National Service Trust account for educational awards 
     authorized under subtitle D of title I of the Act (42 U.S.C. 
     12601 et seq.): Provided further, That not more than 
     $215,000,000 of the amount provided under this heading shall 
     be available for grants under the National Service Trust 
     program authorized under subtitle C of title I of the Act (42 
     U.S.C. 12571 et seq.) (relating to activities including the 
     Americorps program), of which not more than $40,000,000 may 
     be used to administer, reimburse or support any national 
     service program authorized under section 121(d)(2) of such 
     Act (42 U.S.C. 12581(d)(2): Provided further, That not more 
     than $5,500,000 of the funds made available under this 
     heading shall be made available for the Points of Light 
     Foundation for activities authorized under title III of the 
     Act (42 U.S.C. 12661 et seq.): Provided further, That no 
     funds shall be available for national service programs run by 
     Federal agencies authorized under section 121(b) of such Act 
     (42 U.S.C. 12581(b)): Provided further, That, to the maximum 
     extent feasible, funds appropriated in the preceding proviso 
     shall be provided in a manner that is consistent with the 
     recommendations of peer review panels in order to ensure that 
     priority is given to programs that demonstrate quality, 
     innovation, replicability, and sustainability: Provided 
     further, That not more than $18,000,000 of the funds made 
     available under this heading shall be available for the 
     Civilian Community Corps authorized under subtitle E of title 
     I of the Act (42 U.S.C. 12611 et seq.): Provided further, 
     That not more than $43,000,000 shall be available for 
     school-based and community-based service-learning programs 
     authorized under subtitle B of title I of the Act (41 
     U.S.C. 12521 et seq.): Provided further, that not more 
     than $30,000,000 shall be available for quality and 
     innovation activities authorized under subtitle H of title 
     I of the Act (42 U.S.C. 12853 et seq.): Provided further, 
     That not more than $5,000,000 shall be available for 
     audits and other evaluations authorized under section 179 
     of the Act (42 U.S.C. 12639), of which up to $500,000 
     shall be available for a study by the National Academy of 
     Public Administration on the structure, organization, and 
     management of the Corporation and activities supported by 
     the Corporation, including an assessment of the quality, 
     innovation, replicability, and sustainability without 
     Federal funds of such activities, and the Federal and non-
     federal cost of supporting participants in community 
     service activities: Provided further, That no funds from 
     any other appropriation, or from funds otherwise made 
     available to the Corporation, shall be used to pay for 
     personnel compensation and benefits, travel, or any other 
     administrative expense for the Board of Directors, the 
     Office of the Chief Executive Officer, the Office of the 
     Managing Director, the Office of the Chief Financial 
     Officer, the Office of National and Community Service 
     Programs, the Civilian Community Corps, or any field 
     office or staff of the Corporation working on the National 
     and Community Service or Civilian Community Corps 
     programs: Provided further, That to the maximum extent 
     practicable, the Corporation shall increase significantly 
     the level of matching funds and in-kind contributions 
     provided by the private sector, shall expand significantly 
     the number of educational awards provided under subtitle D 
     of title I, and shall reduce the total Federal cost per 
     participant in all programs.


                            sense of senate

       It is the Sense of the Congress that accounting for 
     taxpayers' funds must be a top priority for all federal 
     agencies and government corporations. The Congress is deeply 
     concerned about the findings of the recent audit of the 
     Corporation for National and Community Service required under 
     the Government Corporation Control Act of 1945. The Congress 
     urges the President to expeditiously nominate a qualified 
     Chief Financial Officer for the Corporation. Further, to the 
     maximum extent practicable and as quickly as possible, the 
     Corporation should implement the recommendations of the 
     independent auditors contracted for by the Corporation's 
     Inspector General, as well as the Chief Financial Officer, to 
     improve the financial management of taxpayers' funds. Should 
     the Chief Financial Officer determine that additional 
     resources are needed to implement these recommendations, the 
     Corporation should submit a reprogramming proposal for up to 
     $3,000,000 to carry out reforms of the financial management 
     system.

                            HOUSING PROGRAMS

               Annual Contributions for Assisted Housing

       On page 624 of the bill, line 10, strike 
     ``$10,103,795,000'' and insert ``$10,086,795,000'', and on 
     page 626, line 23, strike ``$209,000,000'' and insert 
     ``$192,000,000''.
                                 ______


                     SIMON AMENDMENT NOS. 3510-3511

  Mr. SIMON proposed two amendments to amendment No. 3466 proposed by 
Mr. Hatfield to the bill H.R. 3019, supra; as follows:

                           Amendment No. 3510

       On page 771, below line 17, add the following:
       Sec. 3006. (a) Subsection (b) of section 802 of the David 
     L. Boren National Security Education Act of 1991 (50 U.S.C. 
     1902) is amended by adding after paragraph (3), flush to the 
     subsection margin, the following: ``Notwithstanding any other 
     provision of law, including the matter under the heading 
     `National Security Education Trust Fund' in title VII of 
     Public Law 104-61, the work of an individual accepting a 
     scholarship or fellowship under the program shall be the work 
     specified in paragraph (2), or such other work as the 
     individual and the Secretary agree upon under an agreement 
     having modified service requirements pursuant to subsection 
     (f).''.
       (b) Such section is further amended by adding at the end 
     the following:
       ``(f) Authority To Modify Service Agreement Requirements.--
     The Secretary shall have sole authority to modify, amend, or 
     revise the requirements under subsection (b) that apply to 
     service agreements.''.
       (c) Subsection (a) of such section is amended by adding at 
     the end the following:
       ``(5) Employment opportunity outreach.--The Secretary shall 
     take appropriate actions to make available to recipients of 
     scholarships or fellowships under the program information on 
     employment opportunities in the departments and agencies of 
     the Federal Government having responsibility for national 
     security matters.''.
                                                                    ____


                           Amendment No. 3511

       On page 582, line 14, strike ``$1,257,134,000'' and insert 
     ``$1,257,888,000''.
       On page 582, line 16, before the semicolon insert the 
     following: ``, and of which $5,100,000 shall be available to 
     carry out title VI of the National Literacy Act of 1991''.
       On page 582, line 16, strike ``$1,254,215,000'' and insert 
     ``$1,254,969,000''.
       On page 587, line 15, strike ``and III'' and insert ``III, 
     and VI''.
       On page 587, line 17, strike ``$131,505,000'' and insert 
     $139,531,000''.
       On page 587, line 20, before the semicolon insert the 
     following: ``, and of which $8,026,000 shall be available to 
     carry out title VI of the Library Services and Construction 
     Act and shall remain available until expended''.
       On page 591, between lines 3 and 4, insert the following:
       Sec. 305. (a) Section 428(n) of the Higher Education Act of 
     1965 (20 U.S.C. 1078(n)) is amended by adding at the end the 
     following new paragraph:

[[Page S2120]]

       ``(5) Applicability to part d loans.--The provisions of 
     this subsection shall apply to institutions of higher 
     education participating in direct lending under part D with 
     respect to loans made under such part, and for the purposes 
     of this paragraph, paragraph (4) shall be applied by 
     inserting `or part D' after `this part'.''.
       (b) The amendment made by subsection (a) shall take effect 
     on July 1, 1996.
       On page 592, line 7, strike ``$196,270,000'' and insert 
     ``$201,294,000''.
       On page 592, line 7, before the period insert the 
     following: ``, of which $5,024,000 shall be available to 
     carry out section 109 of the Domestic Volunteer Service Act 
     of 1973''.
                                 ______


                 THOMAS (AND OTHERS) AMENDMENT NO. 3512

  Mr. THOMAS (for himself, Mr. Helms, Mr. Dole, Mr. Murkowski, Mr. 
Pell, Mr. Simon, Mr. Mack, Mr. Grams, Mr. Pressler, Mr. Brown, Mr. 
Lugar, Mr. D'Amato, Mr. Warner, Mr. Ford, and Mr. Roth) submitted an 
amendment intended to be proposed by them to amendment No. 3466 
proposed by Mr. Hatfield to the bill H.R. 3019 supra; as follows:

       At the appropriate place, insert the following:

     SEC.   . SENSE OF CONGRESS REGARDING MISSILE TESTS BY THE 
                   PEOPLE'S REPUBLIC OF CHINA.

       (a) Findings.--Congress makes the following findings:
       (1) The People's Republic of China, in a clear attempt to 
     intimidate the people and Government of Taiwan, has over the 
     past 8 months conducted a series of military exercises, 
     including missile tests, within alarmingly close proximity to 
     Taiwan.
       (2) On March 5, 1996, the Xinhua News Agency announced that 
     the People's Republic of China would conduct missile tests 
     from March 8 through March 15, 1996, within 25 to 35 miles of 
     the 2 principal northern and southern ports of Taiwan, 
     Kaohsiung and Keelung.
       (3) The proximity of these tests to the ports and the 
     accompanying warnings for ships and aircraft to avoid the 
     test areas is resulting in the effective disruption of the 
     ports, and of international shipping and air traffic, for the 
     duration of the tests.
       (4) These tests are a clear escalation of the attempts by 
     the People's Republic of China to intimidate Taiwan and 
     influence the outcome of the upcoming democratic presidential 
     election in Taiwan.
       (5) Relations between the United States and the Peoples' 
     Republic of China rest upon the expectation that the future 
     of Taiwan will be settled solely by peaceful means.
       (6) The strong interest of the United States in the 
     peaceful settlement of the Taiwan question is one of the 
     central premises of the three United States-China Joint 
     Communiques and was codified in the Taiwan Relations Act.
       (7) The Taiwan Act states that peace and stability in the 
     western Pacific ``are in the political, security, and 
     economic interests of the United States, and are matters of 
     international concern''.
       (8) The Taiwan Relations Act states that the United States 
     considers ``any effort to determine the future of Taiwan by 
     other than peaceful means, including by boycotts, or 
     embargoes, a threat to the peace and security of the western 
     Pacific area and of grave concern to the United States''.
       (9) The Taiwan Relations Act directs the President to 
     ``inform Congress promptly of any threat to the security or 
     the social or economic system of the people on Taiwan and any 
     danger to the interests of the United States arising 
     therefrom''.
       (10) The Taiwan Relations Act further directs that ``the 
     President and the Congress shall determine, in accordance 
     with constitutional process, appropriate action by the United 
     States in response to any such danger''.
       (11) The United States, the People's Republic of China, and 
     the Government of Taiwan have each previously expressed their 
     commitment to the resolution of the Taiwan question through 
     peaceful means.
       (12) These missile tests and accompanying statements made 
     by the Government of the People's Republic of China call into 
     serious question the commitment of China to the peaceful 
     resolution of the Taiwan question.
       (b) Sense of Congress.--It is the sense of the Congress 
     that--
       (1) the United States deplores the missile tests that the 
     People's Republic of China is conducting from March 8 through 
     March 15, 1996, and views them as a potentially serious 
     threat to the peace, security, and stability of Taiwan and 
     not in the spirit of the three United States-China Joint 
     Communiques;
       (2) the Government of the People's Republic of China should 
     cease its bellicose actions directed at Taiwan and instead 
     enter into meaningful dialogue with the Government of Taiwan 
     at the highest levels, such as through the Straits Exchange 
     Foundation in Taiwan and the Association for Relations Across 
     the Taiwan Straits in Beijing, with an eye towards decreasing 
     tensions and resolving the issue of the future of Taiwan;
       (3) the President, consistent with section 3(c) of the 
     Taiwan Relations Act (22 U.S.C. 3302(c)), should immediately 
     consult with Congress on an appropriate United States 
     response to the tests should the tests pose an actual threat 
     to the peace, security, and stability of Taiwan; and
       (4) the President should, consistent with the Taiwan 
     Relations Act (22 U.S.C. 3301 et seq.), reexamine the nature 
     and quantity of defense articles and services that may be 
     necessary to enable Taiwan to maintain a sufficient self-
     defense capability in light of the heightened threat.
                                 ______


                  COATS (AND GRAMS) AMENDMENT NO. 3513

  Mr. COATS (for himself and Mr. Grams) proposed an amendment to 
amendment No. 3466 proposed by Mr. Hatifield to the bill H.R. 3019, 
supra; as follows:

       At the appropriate place insert the following:

     SEC.  . ESTABLISHMENT OF PROHIBITION AGAINST ABORTION-RELATED 
                   DISCRIMINATION IN TRAINING AND LICENSING OF 
                   PHYSICIANS.

       Part B of title II of the Public Health Service Act (42 
     U.S.C. 238 et seq.) is amended by adding at the end the 
     following section:


``abortion-related discrimination in governmental activities regarding 
                  training and licensing of physicians

       ``Sec. 245. (a) In General.--The Federal Government, and 
     any State that receives Federal financial assistance, may not 
     subject any health care entity to discrimination on the basis 
     that--
       ``(1) the entity refuses to undergo training in the 
     performance of induced abortions, to provide such training, 
     to preform such abortions, or to provide referrals for such 
     training or such abortions;
       ``(2) the entity refuses to make arrangements for any of 
     the activities specified in paragraph (1); or
       ``(3) the entity attends (or attended) a postgraduate 
     physician training program, or any other program of training 
     in the health professions, that does not (or did not) 
     require, provide or arrange for training in the performance 
     of induced abortions, or make arrangements for the provision 
     of such training.
       ``(b) Accreditation of Postgraduate Physician Training 
     Programs.--
       ``(1) In general.--With respect to the State government 
     involved, or the Federal Government, restrictions under 
     subsection (a) include the restriction that, in granting a 
     legal status to a health care entity (including a license or 
     certificate) or in providing to the entity financial 
     assistance, a service, or another benefit, the government may 
     not require that the entity fulfill accreditation standards 
     for a postgraduate physician training program, or that the 
     entity have completed or be attending a program that fulfills 
     such standards, if the applicable standards for accreditation 
     of the program include the standard that the program must 
     require, provide or arrange for training in the performance 
     of induced abortions, or make arrangements for the provision 
     of such training.
       ``(2) Rules of construction.--
       ``(A) In general.--With respect to subclauses (I) and (II) 
     of section 705(a)(2)(B)(i) (relating to a program of insured 
     loans for training in the health professions), the 
     requirements in such subclauses regarding accredited 
     internship or residency programs are subject to paragraph (1) 
     of this subsection.
       ``(B) Voluntary activities.--Nothing in this section shall 
     be construed to--
       ``(i) prevent any health care entity from voluntarily 
     electing to be trained, to train, or to arrange for training 
     in the performance of, to perform, or to make referrals for 
     induced abortions;
       ``(ii) prevent an accrediting agency or a Federal, State or 
     local government from establishing standards of medical 
     competency applicable only to those individuals or entities 
     who have voluntarily elected to perform abortions; and
       ``(iii) affect Federal, State or local governmental 
     reliance on standards for accreditation other than those 
     related to the performance of induced abortions.
       ``(c) Definitions.--For purposes of this section:
       ``(1) The term `financial assistance', with respect to a 
     government program, includes governmental payments provided 
     as reimbursement for carrying out health-related activities.
       ``(2) The term `health care entity' includes an individual 
     physician, a postgraduate physician training program, and a 
     participant in a program of training in the health 
     professions.
       ``(3) The term `postgraduate physician training program' 
     includes a residency training program.''.
                                 ______


                      PRESSLER AMENDMENT NO. 3514

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

       At the appropriate place insert the following:
       Within its Mission to Planet Earth program, NASA is urged 
     to fund Phase A studies for a radar satellite initiative.
                                 ______


                     BOND AMENDMENTS NOS. 3515-3517

  Mr. BOND proposed three amendments to amendment No. 3466 proposed

[[Page S2121]]

by Mr. Hatfield to the bill H.R. 3019, supra; as follows:

                           Amendment No. 3515

       On page 689, after line 26 of the Committee substitute, 
     insert the following new section:
       Sec. 17. (a) The second sentence of section 236(f)(1) of 
     the National Housing Act, as amended by section 405(d)(1) of 
     The Balanced Budget Downpayment Act, I, is amended--
       (1) by striking ``or (ii)'' and inserting ``(ii)''; and
       (2) by striking ``located,'' and inserting: ``located, or 
     (iii) the actual rent (as determined by the Secretary) paid 
     for a comparable unit in comparable unassisted housing in the 
     market area in which the housing assisted under this section 
     is located,''.
       (b) The first sentence of section 236(g) of the National 
     Housing Act is amended by inserting the phrase ``on a unit-
     by-unit basis'' after ``collected''.
       On page 631, after the colon on line 24 of the Committee 
     substitute, insert the following: ``Provided further, That 
     rents and rent increases for tenants of projects for which 
     plans of action are funded under section 220(d)(3)(B) of 
     LIHPRHA shall be governed in accordance with the requirements 
     of the program under which the first mortgage is insured or 
     made (sections 236 or 221(d)(3) BMIR, as appropriate): 
     Provided further, That the immediately foregoing proviso 
     shall apply hereafter to projects for which plans of action 
     are to be funded under such section 220(d)(3)(B), and shall 
     apply to any project that has been funded under such section 
     starting one year after the date that such project was 
     funded:''.
                                                                    ____


                           Amendment No. 3516

       On page 637, line 20 of the Committee substitute, insert 
     the following new proviso before the period: ``: Provided 
     further, That an additional $30,000,000, to be derived by 
     transfer from unobligated balances from the Homeownership and 
     Opportunity for People Everywhere Grants (HOPE Grants) 
     account, shall be available for use for grants for federally-
     assisted low-income housing, in addition to any other amount 
     made available for this purpose under this heading, without 
     regard to any percentage limitation otherwise applicable''.
                                                                    ____


                           Amendment No. 3517

       On page 779, after line 10, of the Committee Substitute, 
     insert the following:

                     Management and Administration


                     Departmenal Restructuring Fund

       In addition to funds provided elsewhere in this Act, 
     $20,000,000, to remain available until September 30, 1997, to 
     facilitate the down-sizing, streamlining, and restructuring 
     of the Department of Housing and Urban Development, and to 
     reduce overall departmental staffing to 7,500 full-time 
     equivalents in fiscal year 2000: Provided, That such sum 
     shall be available only for personnel training (including 
     travel associated with such training), costs associated with 
     the transfer of personnel from headquarters and regional 
     offices to the field, and for necessary costs to acquire and 
     upgrade information system infrastructure in support of 
     Departmental field staff: Provided further, That not less 
     than 60 days following enactment of this Act, the Secretary 
     shall transmit to the Appropriations Committees of the 
     Congress a report which specifies a plan and schedule for the 
     utilization of these funds for personnel reductions and 
     transfers in order to reduce headquarters on-board staffing 
     levels to 3,100 by December 31, 1996, and 2,900 by October 1, 
     1997: Provided further, That by February 1, 1997 the 
     Secretary shall certify to the Congress that headquarters on-
     board staffing levels did not exceed 3,100 on December 31, 
     1996 and submit a report which details obligations and 
     expenditures of funds made available hereunder: Provided 
     further, That if the certification of headquarters personnel 
     reductions required by this act is not made by February 1, 
     1997, all remaining unobligated funds available under this 
     paragraph shall be rescinded.


               clarification of block grants in new york

       (a) All funds allocated for the State of New York for 
     fiscal years 1995, 1996, and all subsequent fiscal years, 
     under the HOME investment partnerships program, as authorized 
     under title II of Cranston-Gonzalez National Affordable 
     Housing Act (Public Law 101-625) shall be made available to 
     the Chief Executive Officer of the State, or an entity 
     designated by the Chief Executive Officer, to be used for 
     activities in accordance with the requirements of the HOME 
     investment partnerships program, notwithstanding the 
     Memorandum from the General Counsel of the Department of 
     Housing and Urban Development dated March 5, 1996.
       (b) The Secretary of Housing and Urban Development shall 
     award funds made available for fiscal year 1996 for grants 
     allocated for the State of New York for a community 
     development grants program as authorized by title I of the 
     Housing and Community Development Act of 1974, as amended (42 
     U.S.C. 5301), in accordance with the requirements established 
     under the Notice of Funding Availability for fiscal year 1995 
     for the New York State Small Cities Community Development 
     Block grant program.
                                 ______


                     LAUTENBERG AMENDMENT NO. 3518

  Mr. LAUTENBERG 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 III, insert:
       Sec.   . Section 347(b)(3) of the Department of 
     Transportation and Related Agencies Appropriations Act, 1996 
     (P.L. 104-50), is amended to read as follows:
       ``(3) chapter 71, relating to labor-management 
     relations.''.
                                 ______


                        GRAMM AMENDMENT NO. 3519

  Mr. GRAMM 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 committee substitute, insert the 
     following:
       ``Notwithstanding any other provision of this Act, no part 
     of any appropriation contained in this Act which is subject 
     to the provisions of section 4002 shall be made available for 
     obligation or expenditure.''.
                                 ______


               WELLSTONE (AND OTHERS) AMENDMENT NO. 3520

  Mr. WELLSTONE (for himself, Mr. Jeffords, Mr. Kohl, Mr. Kerry, Mr. 
Leahy, Ms. Snowe, Mr. Santorum, Mr. Kennedy, Mr. Glenn, and Mr. Pell) 
proposed an amendment to amendment No. 3466 proposed by Mr. Hatfield to 
the bill H.R. 3019, supra; as follows:

       At the appropriate place, insert the following:
       The Senate finds that:
       Record low temperatures across the country this winter, 
     coupled with record snowfalls in many areas, have generated 
     substantial and sustained demand among eligible low-income 
     Americans for home heating assistance, and put many who face 
     heating-related crises at risk;
       Home heating assistance for working and low-income families 
     with children, the elderly on fixed incomes, the disabled, 
     and others who need such help is a critical part of the 
     social safety net in cold-weather areas;
       The President has released approximately $900 million in 
     regular Low Income Energy Assistance Program (LIHEAP) funding 
     for this year, compared to a funding level of $1.319 billion 
     last year, and a large LIHEAP funding shortfall remains which 
     has adversely affected eligible recipients in many cold-
     weather states;
       LIHEAP is a highly targeted, cost-effective way to help 
     approximately 6 million low-income Americans to pay their 
     energy bills. More than two-thirds of LIHEAP-eligible 
     households have annual incomes of less than $8,000; more than 
     one-half have annual incomes below $6,000.
       LIHEAP program funding has been substantially reduced in 
     recent years, and cannot sustain any further spending cuts if 
     the program is to remain a viable means of meeting the home 
     heating and other energy-related needs of low-income people 
     in cold-weather states;
       Traditionally, LIHEAP has received advance appropriations 
     for the next fiscal year. This allows states to properly plan 
     for the upcoming winter and best serve the energy needs of 
     low income families.
       Congress was not able to pass an appropriations bill for 
     the Departments of Labor, Health and Human Services, and 
     Education by the beginning of this fiscal year and it was 
     only because LIHEAP received advance appropriations last 
     fiscal year that the President was able to release the $578 
     million he did in December--the bulk of the funds made 
     available to the states this winter.
       There is currently available to the President up to $300 
     million in emergency LIHEAP funding, which could be made 
     available immediately, on a targeted basis, to meet the 
     urgent home heating needs of eligible persons who otherwise 
     could be faced with heating-related emergencies, including 
     shut-offs, in the coming weeks;
       Therefore, it is the sense of the Senate that:
       (a) the President should release immediately a substantial 
     portion of available emergency funding for the Low Income 
     Home Energy Assistance Program for FY 1996, to help meet 
     continuing urgent needs for home heating assistance during 
     this unusually cold winter; and
       (b) not less than the $1 billion in regular advance-
     appropriated LIHEAP funding for next winter provided for in 
     this bill should be retained in a House-Senate conference on 
     this measure.
                                 ______


                    McCAIN AMENDMENTS NOS. 3521-3522

  Mr. BOND (for Mr. McCain) proposed two amendments to amendment No. 
3466 to the bill H.R. 3019, supra; as follows:

                           Amendment No. 3521

       On page 756, between lines 10 and 11, insert the following:

     SEC. 1103. ALLOCATION OF FUNDS.

       Notwithstanding chapters 2, 4, and 6 of this title--
       (1) funds made available under this title for economic 
     development assistance programs of the Economic Development 
     Administration shall be made available to the general fund of 
     the Administration to be allocated in accordance with the 
     established competitive prioritization process of the 
     Administration;

[[Page S2122]]

       (2) funds made available under this title for construction 
     by the United States Fish and Wildlife Service shall be 
     allocated in accordance with the established prioritization 
     process of the Service; and
       (3) funds made available under this title for community 
     development grants by the Department of Housing and Urban 
     Development shall be allocated in accordance with the 
     established prioritization process of the Department.
                                                                    ____


                           Amendment No. 3522

     SEC.  . PLAN FOR ALLOCATION OF HEALTH CARE RESOURCES BY 
                   DEPARTMENT OF VETERANS AFFAIRS.

       (a) Plan.--(1) The Secretary of Veterans Affairs shall 
     develop a plan for the allocation of health care resources 
     (including personnel and funds) of the Department of Veterans 
     Affairs among the health care facilities of the Department so 
     as to ensure that veterans having similar economic status, 
     eligibility priority and, or, similar medical conditions who 
     are eligible for medical care in such facilities have similar 
     access to such care in such facilities regardless of the 
     region of the United States in which such veterans reside.
       (2) The Plan shall reflect, to the maximum extent possible, 
     the Veterans Integrated Service Network, as well as the 
     Resource Planning and Management System developed by the 
     Department of Veterans Affairs to account for forecasts in 
     expected workload and to ensure fairness to facilities that 
     provide cost-efficient health care, and shall include 
     procedures to identify reasons for variations in operating 
     costs among similar facilities and ways to improve the 
     allocation of resources so as to promote efficient use of 
     resources and provision of quality health care.
       (3) The Secretary shall prepare the plan in consultation 
     with the Under Secretary of Health of the Department of 
     Veterans Affairs.
       (b) Plan Elements.--The plan under subsection (a) shall set 
     forth--
       (1) milestones for achieving the goal referred to in that 
     subsection; and
       (2) a means of evaluating the success of the Secretary in 
     meeting the goals through the plan.
       (c) Submittal to Congress.--The Secretary shall submit to 
     Congress the plan developed under subsection (a) not later 
     than 180 days after the date of the enactment of this Act.
       (d) Plan Implementation.--The Secretary shall implement the 
     plan developed under subsection (a) within 60 days of 
     submitting such plan to Congress under subsection (b), unless 
     within such period the Secretary notifies the appropriate 
     Committees of Congress that such plan will not be implemented 
     along with an explanation of why such plan will not be 
     implemented.
                                 ______


                       WARNER AMENDMENT NO. 3523

  Mr. WARNER 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 I of section 101(b), add the following:
       Sec. 156. None of the funds provided in this Act may be 
     used directly or indirectly to implement or enforce any rule 
     of ordinance of the District of Columbia Taxicab Commission 
     that would terminate taxicab service reciprocity agreements 
     with the States of Virginia and Maryland.
                                 ______


               MURKOWSKI (AND STEVENS) AMENDMENT NO. 3524

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

       On page   . beginning with line   , insert the following:

     SEC.   . SEAFOOD SAFETY.

       (a) Notwithstanding any other provision of law, any 
     domestic fish or fish product produced in compliance with the 
     ``Procedures for the Safe and Sanitary Processing and 
     Importing of Fish and Fish Products'' (published by the Food 
     and Drug Administration as a final regulation in the Federal 
     Register of December 18, 1995) or produced in compliance with 
     food safety standards or procedures accepted by the Food and 
     Drug Administration as satisfying the requirements of such 
     regulations, shall be deemed to have met any inspection 
     requirements of the Department of Agriculture or other 
     Federal agency for any Federal commodity purchase program, 
     including the program authorized under section 32 of the Act 
     of August 24, 1935 (7 U.S.C. 612c).
                                 ______


                      MURKOWSKI AMENDMENT NO. 3525

  Mr. MURKOWSKI proposed an amendment to amendment No. 3466 proposed by 
Mr. Hatfield to the bill H.R. 3019, supra; as follows:

     SECTION 1.

       (a) Short Title.--This section may be cited as the ``Greens 
     Creek Land Exchange Act of 1996''.
       (b) Findings.--The Congress makes the following findings:
       (1) The Alaska National Interest Lands Conservation Act 
     established the Admiralty Island National Monument and 
     sections 503 and 504 of that Act provided special provisions 
     under which the Greens Creek Claims would be developed. The 
     provisions supplemented the general mining laws under which 
     these claims were staked.
       (2) The Kennecott Greens Creek Mining Company, Inc., 
     currently holds title to the Greens Creek Claims, and the 
     area surrounding these claims has further mineral potential 
     which is yet unexplored.
       (3) Negotiations between the United States Forest Service 
     and the Kennecott Greens Creek Mining Company, Inc., have 
     resulted in an agreement by which the area surrounding the 
     Greens Creek Claims could be explored and developed under 
     terms and conditions consistent with the protection of the 
     values of the Admiralty Island National Monument.
       (4) The full effectuation of the Agreement, by its terms, 
     requires the approval and ratification by Congress.
       (c) Definitions.--As used in this section--
       (1) the term ``Agreement'' means the document entitled the 
     ``Greens Creek Land Exchange Agreement'' executed on December 
     14, 1994, by the Under Secretary of Agriculture for Natural 
     Resources and Environment on behalf of the United States and 
     the Kennecott Greens Creek Mining Company and Kennecott 
     Corporation;
       (2) the term ``ANILCA'' means the Alaska National Interest 
     Lands Conservation Act, Public Law 96-487 (94 Stat. 2371);
       (3) the term ``conservation system unit'' has the same 
     meaning as defined in section 102(4) of ANILCA;
       (4) the term ``Greens Creek Claims'' means those patented 
     mining claims of Kennecott Greens Creek Mining Company within 
     the Monument recognized pursuant to section 504 of ANILCA;
       (5) the term ``KGCMC'' means the Kennecott Greens Creek 
     Mining Company, Inc., a Delaware corporation;
       (6) the term ``Monument'' means the Admiralty Island 
     National Monument in the State of Alaska established by 
     section 503 of ANILCA;
       (7) the term ``Royalty'' means Net Island Receipts Royalty 
     as that latter term is defined in Exhibit C to the Agreement; 
     and
       (8) the term ``Secretary'' means the Secretary of 
     Agriculture.
       (d) Ratification of the Agreement.--The Agreement is hereby 
     ratified and confirmed as to the duties and obligations of 
     the United States and its agencies, and KGCMC and Kennecott 
     Corporation, as a matter of Federal law. The agreement may be 
     modified or amended, without further action by the Congress, 
     upon written agreement of all parties thereto and with 
     notification in writing being made to the appropriate 
     committees of the Congress.
       (e) Implementation of the Agreement.--
       (1) Land acquisition.--Without diminishment of any other 
     land acquisition authority of the Secretary in Alaska and in 
     furtherance of the purposes of the Agreement, the Secretary 
     is authorized to acquire lands and interests in land within 
     conservation system units in the Tongass National Forest, and 
     any land or interest in land so acquired shall be 
     administered by the Secretary as part of the National 
     Forest System and any conservation system unit in which it 
     is located. Priority shall be given to acquisition of non-
     Federal lands within the Monument.
       (2) Acquisition Funding.--There is hereby established in 
     the Treasury of the United States an account entitled the 
     `Greens Creek Land Exchange Account' into which shall be 
     deposited the first $5,000,000 in royalties received by the 
     United States under part 6 of the Agreement after the 
     distribution of the amounts pursuant to paragraph (3) of this 
     subsection. Such moneys in the special account in the 
     Treasury may, to the extent provided in appropriations Acts, 
     be used for land acquisition pursuant to paragraph (1) of 
     this subsection.
       (3) Twenty-five percent fund.--All royalties paid to the 
     United States under the Agreement shall be subject to the 25 
     percent distribution provisions of the Act of May 23, 1908, 
     as amended (16 U.S.C. 500) relating to payments for roads and 
     schools.
       (4) Mineral development.--Notwithstanding any provision of 
     ANILCA to the contrary, the lands and interests in lands 
     being conveyed to KGCMC pursuant to the Agreement shall be 
     available for mining and related activities subject to and in 
     accordance with the terms of the Agreement and conveyances 
     made thereunder.
       (5) Admnistration.--The Secretary of Agriculture is 
     authorized to implement and administer the rights and 
     obligations of the Federal Government under the Agreement, 
     including monitoring the Government's interests relating to 
     extralateral rights, collecting royalties, and conducting 
     audits. The Secretary may enter into cooperative arrangements 
     with other Federal agencies for the performance of any 
     Federal rights or obligations under the Agreement or this 
     Act.
       (6) Reversions.--Before reversion to the United States of 
     KGCMC properties located on Admiralty Island, KGCMC shall 
     reclaim the surface disturbed in accordance with an approved 
     plan of operations and applicable laws and regulations. Upon 
     reversion to the United States of KGCMC properties located on 
     Admiralty, those properties located within the Monument shall 
     become part of the Monument and those properties lying 
     outside the Monument shall be managed as part of the Tongass 
     National Forest.
       (7) Savings provisions.--Implementation of the Agreement in 
     accordance with this section shall not be deemed a major 
     Federal action significantly affecting the quality of the 
     human environment, nor shall implementation require further 
     consideration pursuant to the National Historic Preservation 
     Act, title VIII of ANILCA, or any other law.

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       (f) Recision Rights.--Within 60 days of the enactment of 
     this section, KGCMC and Kennecott Corporation shall have a 
     right to rescind all rights under the Agreement and this 
     section. Recision shall be effected by a duly authorized 
     resolution of the Board of Directors of either KGCMC or 
     Kennecott Corporation and delivered to the Chief of the 
     Forest Service at the Chief's principal office in Washington. 
     District of Columbia. In the event of a recision, the status 
     quo ante provisions of the Agreement shall apply

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