[Congressional Record Volume 142, Number 35 (Thursday, March 14, 1996)]
[Senate]
[Pages S2123-S2135]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




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                                 ______


                THURMOND (AND OTHERS) AMENDMENT NO. 3526

  Mr. WARNER (for Mr. Thurmond, for himself, Mr. Nunn, Mr. Warner, Mr. 
Cohen, Mr. Lott, Mr. Smith, Mr. Coats, Mr. Santorum, Mr. Inhofe, Mr. 
Exon, Mr. Robb, Mr. Bryan, and Mr. Kempthorne) proposed an amendment to 
amendment No. 3466 proposed by Mr. Hatfield to the bill H.R. 3019, 
supra; as follows:

       On page 754, line 4, strike out the period at the end and 
     insert in lieu thereof ``: Provided further, That the 
     authority under this section may not be used to enter into a 
     multiyear procurement contract until the day after the date 
     of the enactment of an Act (other than an appropriations Act) 
     containing a provision authorizing a multiyear procurement 
     contract for the C-17 aircraft.''.
                                 ______


                HATFIELD (AND OTHERS) AMENDMENT NO. 3527

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

       To the substitute on page 750, between lines 18 and 19, add 
     the following:

     UNANTICIPATED NEEDS

      Unanticipated needs for Defense of Israel Against Terrorism

       For emergency expenses necessary to meet unanticipated 
     needs for the acquisition and provision of goods, services, 
     and/or grants for Israel necessary to support the eradication 
     of terrorism in and around Israel, $50,000,000: Provided, 
     That none of the funds appropriated in this paragraph shall 
     be available for obligation except through the regular 
     notification procedures of the Committees on Appropriations: 
     Provided further, That the entire amount is designated by 
     Congress as an emergency requirement pursuant to section 
     251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended.
                                 ______


                        BURNS AMENDMENT NO. 3528

  Mr. BURNS 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:

     SEC.   . CONTINUED OPERATION OF AN EXISTING HYDROELECTRIC 
                   FACILITY IN MONTANA.

       (a) Notwithstanding section 10(e)(1) of the Federal Power 
     Act (16 U.S.C. 803(e)(1)) or any other law requiring payment 
     to the United States of an annual or other charge for the 
     use, occupancy, and enjoyment of land by the holder of a 
     license issued by the Federal Energy Regulatory Commission 
     under part I of the Federal Power Act (16 U.S.C. 792 et seq.) 
     for project numbered 1473, provided that the current licensee 
     receives no payment or consideration for the transfer of the 
     license a political subdivision of the State of Montana that 
     accepts the license--
       (1) shall not be required to pay such charges during the 5-
     year period following the date of acceptance; and
       (2) after that 5-year period, and for so long as the 
     political subdivision holds the license, shall not be 
     required to pay such charges that exceed 100 percentum of the 
     net revenues derived from the sale of electric power from the 
     project.
       (b) The provisions of subsection (a) shall be effective if:
       (1) a competing license application is filed within 90 days 
     of the date of enactment of this act, or
       (2) the Federal Energy Regulatory Commission issues an 
     order within 90 days of the date of enactment of this act 
     which makes a determination that in the absence of the 
     reduction in charges provided by subsection (a) the license 
     transfer will occur.
                                 ______


                 BURNS (AND OTHERS) AMENDMENT NO. 3529

  Mr. BURNS (for himself, Mr. Reid, Mr. Baucus, Mr. Campbell, Mr. 
Press-ler, and Mr. Daschle) proposed an amendment to amendment No. 3466 
proposed by Mr. Hatfield to the bill H.R. 3019, supra; as follows:

       On page 591, between lines 3 and 4, insert the following:
       Sec. 305. (a)(1) From any unobligated funds that are 
     available to the Secretary of Education to carry out section 
     5 or 14 of the Act of September 23, 1950 (Public Law 815, 
     81st Congress) (as such Act was in effect on September 30, 
     1994) not less than $11,500,000 shall be available to the 
     Secretary of Education to carry out subsection (b).
       (2) Any unobligated funds described in paragraph (1) that 
     remain unobligated after the Secretary of Education carries 
     out such paragraph shall be available to the Secretary of 
     Education to carry out section 8007 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7707).
       (b)(1) The Secretary of Education shall award the funds 
     described in subsection (a)(1) to local educational agencies, 
     under such terms and conditions as the Secretary of Education 
     determines appropriate, for the construction of public 
     elementary or secondary schools on Indian reservations or in 
     school districts that--
       (A) the Secretary of Education determines are in dire need 
     of construction funding;
       (B) contain a public elementary or secondary school that 
     serves a student population which is 90 percent Indian 
     students; and
       (C) serve students who are taught in inadequate or unsafe 
     structures, or in a public elementary or secondary school 
     that has been condemned.
       (2) A local educational agency that receives construction 
     funding under this subsection for fiscal year 1996 shall not 
     be eligible to receive any funds under section 8007 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7707) for school construction for fiscal years 1996 and 1997.
       (3) As used in this subsection, the term ``construction'' 
     has the meaning given that term in section 8013(3) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7713(3)).
       (4) No request for construction funding under this 
     subsection shall be approved unless the request is received 
     by the Secretary of Education not later than 30 days after 
     the date of enactment of this Act.
                                 ______


                        BURNS AMENDMENT NO. 3530

  Mr. BURNS 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:

  Subtitle B--Commission on Restructuring the Circuits of the United 
                        States Courts of Appeals

     SEC. 921. ESTABLISHMENT AND FUNCTIONS OF COMMISSION.

       (a) Establishment.--There is established a Commission on 
     restructuring for the circuits of the United States Courts of 
     Appeals which shall be known as the ``Heflin Commission'' 
     (hereinafter referred to as the ``Commission'').
       (b) Functions.--The function of the Commission shall be 
     to--
       (1) study the restructuring of the circuits of the United 
     States Courts of Appeals; and
       (2) report to the President and the Congress on its 
     findings.

     SEC. 922. MEMBERSHIP.

       (a) Composition.--The Commission shall be composed of 
     twelve members appointed as follows:
       (1) Three members appointed by the President of the United 
     States.
       (2) Three members appointed by the President pro tempore of 
     the Senate.
       (3) Three members appointed by the Speaker of the House of 
     Representatives.
       (4) Three members appointed by the Chief Justice of the 
     United States.
       (b) Chair.--The Commission shall elect a Chair and Vice 
     Chair from among its members.
       (c) Quorum.--Seven members of the Commission shall 
     constitute a quorum, but three may conduct hearings.
       (d) Period of Appointment; Vacancies.--Members shall be 
     appointed for the life of the Commission. Any vacancy in the 
     Commission shall not affect its powers, but shall be filled 
     in the same manner as the original appointment.
       (e) Initial Meeting.--No later than 30 days after the date 
     on which all members of the Commission have been appointed, 
     the Commission shall hold its first meeting.
       (f) Meetings.--The Commission shall meet at the call of the 
     Chairman.

     SEC. 923. POWERS OF THE COMMISSION.

       (a) Hearings.--The Commission may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission considers advisable 
     to carry out the purposes of this subtitle.
       (b) Information From Federal Agencies.--The Commission may 
     secure directly from any Federal department or agency such 
     information as the Commission considers necessary to carry 
     out the provisions of this subtitle. Upon request of the 
     Chairman of the Commission, the head of such department or 
     agency shall furnish such information to the Commission.
       (c) Postal Services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.
       (d) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property.

     SEC. 924. COMMISSION PERSONNEL MATTERS.

       (a) Compensation of Members.--Each member of the Commission 
     who is not an officer or employee of the Federal Government

[[Page S2124]]

     shall be compensated at a rate equal to the daily equivalent 
     of the annual rate of basic pay prescribed for level IV of 
     the Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which such member is engaged in the performance of the duties 
     of the Commission. All members of the Commission who are 
     officers or employees of the United States shall serve 
     without compensation in addition to that received for their 
     services as officers or employees of the United States.
       (b) Travel Expenses.--The members of the Commission shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission.
       (c) Staff.--
       (1) In general.--The Chairman of the Commission may, 
     without regard to the civil service laws and regulations, 
     appoint and terminate an executive director and such other 
     additional personnel as may be necessary to enable the 
     Commission to perform its duties. The employment of an 
     executive director shall be subject to confirmation by the 
     Commission.
       (2) Compensation.--The Chairman of the Commission may fix 
     the compensation of the executive director and other 
     personnel without regard to the provisions of chapter 51 and 
     subchapter III of chapter 53 of title 5, United States Code, 
     relating to classification of positions and General Schedule 
     pay rates, except that the rate of pay for the executive 
     director and other personnel may not exceed the rate payable 
     for level V of the Executive Schedule under section 5316 of 
     such title.
       (d) Detail of Government Employees.--Any Federal Government 
     employee may be detailed to the Commission without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.
       (e) Procurement of Temporary and Intermittent Services.--
     The Chairman of the Commission may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals which do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for level V of the Executive Schedule under 
     section 5316 of such title.

     SEC. 925. TERMINATION OF THE COMMISSION.

       The Commission shall terminate 90 days after the date on 
     which the Commission submits its final report.

     SEC. 926. REPORT.

       No later than 2 years after the date of the enactment of 
     this subtitle, The Commission shall submit a report to the 
     President and the Congress which shall contain a detailed 
     statement of the findings and conclusions of the Commission, 
     together with its recommendations for such legislation and 
     administrative actions as it considers appropriate.

     SEC. 927. AUTHORIZATION OF APPROPRIATIONS.

       On page 79, line 10 add the following: ``Of which not to 
     exceed $3,000,000 shall remain available until expended for 
     the Twelfth Circuit Court of Appeals.''
                                 ______


                DOLE (AND LIEBERMAN) AMENDMENT NO. 3531

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

       On page 404, between line 17 and 18, insert the following:
                  Subtitle N--Low-Income Scholarships

      SEC. 2921. DEFINITIONS.

       As used in this subtitle--
       (1) the term ``Board'' means the Board of Directors of the 
     Corporation established under section 2922(b)(1);
       (2) the term ``Corporation'' means the District of Columbia 
     Scholarship Corporation established under section 2922(a);
       (3) the term ``eligible institution''--
       (A) in the case of an eligible institution serving a 
     student who receives a tuition scholarship under section 
     2923(d)(1), means a private or independent elementary or 
     secondary school; and
       (B) in the case of an eligible institution serving a 
     student who receives an enhanced achievement scholarship 
     under section 2923(d)(2), means an elementary or secondary 
     school, or an entity that provides services to a student 
     enrolled in an elementary or secondary school to enhance such 
     student's achievement through activities described in section 
     2923(d)(2); and
       (4) the term ``poverty line'' means the income official 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2)) applicable to a family of the size involved.

      SEC. 2922. DISTRICT OF COLUMBIA SCHOLARSHIP CORPORATION.

       (a) General Requirements.--
       (1) In general.--There is authorized to be established a 
     private, nonprofit corporation, to be known as the ``District 
     of Columbia Scholarship Corporation'', which is neither an 
     agency nor establishment of the United States Government or 
     the District of Columbia Government.
       (2) Duties.--The Corporation shall have the responsibility 
     and authority to administer, publicize, and evaluate the 
     scholarship program in accordance with this subtitle, and to 
     determine student and school eligibility for participation in 
     such program.
       (3) Consultation.--The Corporation shall exercise its 
     authority--
       (A) in a manner consistent with maximizing educational 
     opportunities for the maximum number of interested families; 
     and
       (B) in consultation with the Board of Education, the 
     Superintendent, the Consensus Commission, and other school 
     scholarship programs in the District of Columbia.
       (4) Application of provisions.--The Corporation shall be 
     subject to the provisions of this subtitle, and, to the 
     extent consistent with this subtitle, to the District of 
     Columbia Nonprofit Corporation Act (D.C. Code, sec. 29-501 et 
     seq.).
       (5) Residence.--The Corporation shall have its place of 
     business in the District of Columbia and shall be considered, 
     for purposes of venue in civil actions, to be a resident of 
     the District of Columbia.
       (6) Fund.--There is hereby established in the District of 
     Columbia general fund a fund that shall be known as the 
     ``District of Columbia Scholarship Fund''.
       (7) Disbursement.--The Mayor shall disburse to the 
     Corporation, before October 15 of each fiscal year or not 
     later than 15 days after the date of enactment of an Act 
     making appropriations for the District of Columbia for such 
     year, whichever occurs later, such funds as have been 
     appropriated to the District of Columbia Scholarship Fund for 
     the fiscal year for which such disbursement is made.
       (8) Availability.--Funds authorized to be appropriated 
     under this subtitle shall remain available until expended.
       (9) Uses.--Funds authorized to be appropriated under this 
     subtitle shall be used by the Corporation in a prudent and 
     financially responsible manner, solely for scholarships, 
     contracts, and administrative costs.
       (10) Authorization.--
       (A) In general.--There are authorized to be appropriated to 
     the District of Columbia Scholarship Fund--
       (i) $5,000,000 for fiscal year 1996;
       (ii) $7,000,000 for fiscal year 1997; and
       (iii) $10,000,000 for each of fiscal years 1998 through 
     2000.
       (B) Limitation.--Not more than $250,000 of the amount 
     appropriated to carry out this subtitle for any fiscal year 
     may be used by the Corporation for any purpose other than 
     assistance to students.
       (b) Organization and Management; Board of Directors.--
       (1) Board of directors; membership.--
       (A) In general.--The Corporation shall have a Board of 
     Directors comprised of 7 members, with 6 members of the Board 
     appointed by the President not later than 30 days after 
     receipt of nominations from the Speaker of the House of 
     Representatives, the Minority Leader of the House of 
     Representatives, the Majority Leader of the Senate, and the 
     Minority Leader of the Senate.
       (B) House nominations.--The President shall appoint 2 
     members of the Board from a list of at least 6 individuals 
     nominated by the Speaker of the House of Representatives, and 
     1 member of the Board from a list of at least 3 individuals 
     nominated by the Minority Leader of the House of 
     Representatives.
       (C) Senate nominations.--The President shall appoint 2 
     members of the Board from a list of at least 6 individuals 
     nominated by the Majority Leader of the Senate, and 1 member 
     of the Board from a list of at least 3 individuals nominated 
     by the Minority Leader of the Senate.
       (D) Deadline.--The Speaker and Minority Leader of the House 
     of Representatives and Majority Leader and Minority Leader of 
     the Senate shall submit their nominations to the President 
     not later than 30 days after the date of the enactment of 
     this Act.
       (E) Appointee of mayor.--The Mayor shall appoint 1 member 
     of the Board not later than 60 days after the date of the 
     enactment of this Act.
       (F) Possible interim members.--If the President does not 
     appoint the 6 members of the Board in the 30-day period 
     described in subparagraph (A), then the Speaker of the House 
     of Representatives and the Majority Leader of the Senate 
     shall each appoint 2 members of the Board, and the Minority 
     Leader of the House of Representatives and the Minority 
     Leader of the Senate shall each appoint 1 of the Board, from 
     among the individuals nominated pursuant to subparagraphs (A) 
     and (B), as the case may be. The appointees under the 
     preceding sentence together with the appointee of the Mayor, 
     shall serve as an interim Board with all the powers and other 
     duties of the Board described in this subtitle, until the 
     President makes the appointments as described in this 
     subsection.
       (2) Powers.--All powers of the Corporation shall vest in 
     and be exercised under the authority of the Board.
       (3) Elections.--Members of the Board annually shall elect 1 
     of the members of the Board to be chairperson of the Board.
       (4) Residency.--All members appointed to the Board shall be 
     residents of the District of Columbia at the time of 
     appointment and while serving on the Board.
       (5) Nonemployee.--No member of the Board may be an employee 
     of the United States Government or the District of Columbia 
     Government when appointed to or during tenure on the Board, 
     unless the individual is on a leave of absence from such a 
     position while serving on the Board.
       (6) Incorporation.--The members of the initial Board shall 
     serve as incorporators and shall take whatever steps are 
     necessary to establish the Corporation under the District of 
     Columbia Nonprofit Corporation Act (D.C. Code, sec. 29-501 et 
     seq.).
       (7) General term.--The term of office of each member of the 
     Board shall be 5 years, except that any member appointed to 
     fill a vacancy occurring prior to the expiration of the term 
     for which the predecessor was appointed shall be appointed 
     for the remainder of such term.

[[Page S2125]]

       (8) Consecutive term.--No member of the Board shall be 
     eligible to serve in excess of 2 consecutive terms of 5 years 
     each. A partial term shall be considered as 1 full term. Any 
     vacancy on the Board shall not affect the Board's power, but 
     shall be filled in a manner consistent with this subtitle.
       (9) No benefit.--No part of the income or assets of the 
     Corporation shall inure to the benefit of any Director, 
     officer, or employee of the Corporation, except as salary or 
     reasonable compensation for services.
       (10) Political activity.--The Corporation may not 
     contribute to or otherwise support any political party or 
     candidate for elective public office.
       (11) No officers or employees.--The members of the Board 
     shall not, by reason of such membership, be considered to be 
     officers or employees of the United States Government or of 
     the District of Columbia Government.
       (12) Stipends.--The members of the Board, while attending 
     meetings of the Board or while engaged in duties related to 
     such meetings or other activities of the Board pursuant to 
     this subtitle, shall be provided a stipend. Such stipend 
     shall be at the rate of $150 per day for which the member of 
     the Board is officially recorded as having worked, except 
     that no member may be paid a total stipend amount in any 
     calendar year in excess of $5,000.
       (13) Congressional intent.--Subject to the results of the 
     program appraisal under section 2933, it is the intention of 
     the Congress to turn over to District of Columbia officials 
     the control of the Board at the end of the 5-year period 
     beginning on the date of enactment of this Act, under terms 
     and conditions to be determined at that time.
       (c) Officers and Staff.--
       (1) Executive director.--The Corporation shall have an 
     Executive Director, and such other staff, as may be appointed 
     by the Board for terms and at rates of compensation, not to 
     exceed level EG-16 of the Educational Service of the District 
     of Columbia, to be fixed by the Board .
       (2) Staff.--With the approval of the Board, the Executive 
     Director may appoint and fix the salary of such additional 
     personnel as the Executive Director considers appropriate.
       (3) Annual rate.--No staff of the Corporation may be 
     compensated by the Corporation at an annual rate of pay 
     greater than the annual rate of pay of the Executive 
     Director.
       (4) Service.--All officers and employees of the Corporation 
     shall serve at the pleasure of the Board.
       (5) Qualification.--No political test or qualification may 
     be used in selecting, appointing, promoting, or taking other 
     personnel actions with respect to officers, agents, or 
     employees of the Corporation.
       (d) Powers of the Corporation.--
       (1) Generally.--The Corporation is authorized to obtain 
     grants from, and make contracts with, individuals and with 
     private, State, and Federal agencies, organizations, and 
     institutions.
       (2) Hiring authority.--The Corporation may hire, or accept 
     the voluntary services of, consultants, experts, advisory 
     boards, and panels to aid the Corporation in carrying out 
     this subtitle.
       (e) Financial Management and Records.--
       (1) Audits.--The financial statements of the Corporation 
     shall be--
       (A) maintained in accordance with generally accepted 
     accounting principles for nonprofit corporations; and
       (B) audited annually by independent certified public 
     accountants.
       (2) Report.--The report for each such audit shall be 
     included in the annual report to Congress required by section 
     2933(c).

      SEC. 2923. SCHOLARSHIPS AUTHORIZED.

       (a) Eligible Students.--The Corporation is authorized to 
     award tuition scholarships under subsection (d)(1) and 
     enhanced achievement scholarships under subsection (d)(2) to 
     students in kindergarten through grade 12--
       (1) who are residents of the District of Columbia; and
       (2) whose family income does not exceed 185 percent of the 
     poverty line.
       (b) Scholarship Priority.--
       (1) First.--The Corporation shall first award scholarships 
     to students described in subsection (a) who--
       (A) are enrolled in a District of Columbia public school or 
     preparing to enter a District of Columbia kindergarten, 
     except that this subparagraph shall apply only for academic 
     years 1996, 1997, and 1998; or
       (B) have received a scholarship from the Corporation in the 
     year preceding the year for which the scholarship is awarded.
       (2) Second.--If funds remain for a fiscal year for awarding 
     scholarships after awarding scholarships under paragraph (1), 
     the Corporation shall award scholarships to students 
     described in subsection (a) who are not described in 
     paragraph (1).
       (c) Special Rule.--The Corporation shall attempt to ensure 
     an equitable distribution of scholarship funds to students at 
     diverse academic achievement levels.
       (d) Use of Scholarship.--
       (1) Tuition scholarships.--A tuition scholarship may be 
     used only for the payment of the cost of the tuition and 
     mandatory fees for, and transportation to attend, an eligible 
     institution located within the geographic boundaries of the 
     District of Columbia.
       (2) Enhanced achievement scholarship.--An enhanced 
     achievement scholarship may be used only for the payment of--
       (A) the costs of tuition and mandatory fees for, and 
     transportation to attend, a program of nonsectarian 
     instruction provided by an eligible institution which 
     enhances student achievement of the core curriculum and is 
     operated outside of regular school hours to supplement the 
     regular school program;
       (B) the costs of tuition and mandatory fees for, and 
     transportation to attend, after-school activities that do not 
     have an academic focus, such as athletics or music lessons; 
     or
       (C) the costs of tuition and mandatory fees for, and 
     transportation to attend, vocational, vocational-technical, 
     and technical training programs.
       (e) Not School Aid.--A scholarship under this subtitle 
     shall be considered assistance to the student and shall not 
     be considered assistance to an eligible institution.

      SEC. 2924. SCHOLARSHIP PAYMENTS AND AMOUNTS.

       (a) Awards.--From the funds made available under this 
     subtitle, the Corporation shall award a scholarship to a 
     student and make payments in accordance with section 2930 on 
     behalf of such student to a participating eligible 
     institution chosen by the parent of the student.
       (b) Notification.--Each eligible institution that desires 
     to receive payment under subsection (a) shall notify the 
     Corporation not later than 10 days after--
       (1) the date that a student receiving a scholarship under 
     this subtitle is enrolled, of the name, address, and grade 
     level of such student;
       (2) the date of the withdrawal or expulsion of any student 
     receiving a scholarship under this subtitle, of the 
     withdrawal or expulsion; and
       (3) the date that a student receiving a scholarship under 
     this subtitle is refused admission, of the reasons for such a 
     refusal.
       (c) Tuition Scholarship.--
       (1) Equal to or below poverty line.--For a student whose 
     family income is equal to or below the poverty line, a 
     tuition scholarship may not exceed the lesser of--
       (A) the cost of tuition and mandatory fees for, and 
     transportation to attend, an eligible institution; or
       (B) $3,000 for fiscal year 1996, with such amount adjusted 
     in proportion to changes in the Consumer Price Index for all 
     urban consumers published by the Department of Labor for each 
     of fiscal years 1997 through 2000.
       (2) Above poverty line.--For a student whose family income 
     is greater than the poverty line, but not more than 185 
     percent of the poverty line, a tuition scholarship may not 
     exceed the lesser of--
       (A) 50 percent of the cost of tuition and mandatory fees 
     for, and transportation to attend, an eligible institution; 
     or
       (B) $1,500 for fiscal year 1996, with such amount adjusted 
     in proportion to changes in the Consumer Price Index for all 
     urban consumers published by the Department of Labor for each 
     of fiscal years 1997 through 2000.
       (d) Enhanced Achievement Scholarship.--
       (1) Equal to or below poverty line.--For a student whose 
     family income is equal to or below the poverty line, an 
     enhanced achievement scholarship may not exceed the lesser 
     of--
       (A) the costs of tuition and mandatory fees for, and 
     transportation to attend, a program of nonsectarian 
     instruction at an eligible institution; or
       (B) $1,500 for 1996, with such amount adjusted in 
     proportion to changes in the Consumer Price Index for all 
     urban consumers published by the Department of Labor for each 
     of fiscal years 1997 through 2000.
       (2) Above poverty line.--For a student whose family income 
     is greater than the poverty line, but not more than 185 
     percent of the poverty line, an enhanced achievement 
     scholarship may not exceed the lesser of--
       (A) 50 percent of the costs of tuition and mandatory fees 
     for, and transportation to attend, a program of nonsectarian 
     instruction at an eligible institution; or
       (B) $750 for fiscal year 1996 with such amount adjusted in 
     proportion to changes in the Consumer Price Index for all 
     urban consumers published by the Department of Labor for each 
     of fiscal years 1997 through 2000.
       (e) Allocation of Funds.--
       (1) Federal funds.--
       (A) Plan.--The Corporation shall submit to the District of 
     Columbia Council a proposed allocation plan for the 
     allocation of Federal funds between the tuition scholarships 
     under section 2923(d)(1) and enhanced achievement 
     scholarships under section 2923(d)(2).
       (B) Consideration.--Not later than 30 days after receipt of 
     each such plan, the District of Columbia Council shall 
     consider such proposed allocation plan and notify the 
     Corporation in writing of its decision to approve or 
     disapprove such allocation plan.
       (C) Objections.--In the case of a vote of disapproval of 
     such allocation plan, the District of Columbia Council shall 
     provide in writing the District of Columbia Council's 
     objections to such allocation plan.
       (D) Resubmission.--The Corporation may submit a revised 
     allocation plan for consideration to the District of Columbia 
     Council.
       (E) Prohibition.--No Federal funds provided under this 
     subtitle may be used for any scholarship until the District 
     of Columbia Council has approved the allocation plan for the 
     Corporation.
       (2) Private funds.--The Corporation shall annually allocate 
     unrestricted private funds equitably, as determined by the 
     Board, for scholarships under paragraph (1) and (2) of 
     section 2923(d), after consultation with the public, the 
     Mayor, the District of Columbia Council, the Board of 
     Education, the Superintendent, and the Consensus Commission.

      SEC. 2925. CERTIFICATION OF ELIGIBLE INSTITUTIONS.

       (a) Application.--An eligible institution that desires to 
     receive a payment on behalf of a student who receives a 
     scholarship under this subtitle shall file an application 
     with the Corporation for certification for participation in 
     the scholarship program under this subtitle. Each such 
     application shall--

[[Page S2126]]

       (1) demonstrate that the eligible institution has operated 
     with not less than 25 students during the 3 years preceding 
     the year for which the determination is made unless the 
     eligible institution is applying for certification as a new 
     eligible institution under subsection (c);
       (2) contain an assurance that the eligible institution will 
     comply with all applicable requirements of this subtitle;
       (3) provide the most recent audit of the financial 
     statements of the eligible institution by an independent 
     certified public accountant using generally accepted auditing 
     standards, completed not earlier than 3 years before the date 
     such application is filed;
       (4) describe the eligible institution's proposed program, 
     including personnel qualifications and fees;
       (5) contain an assurance that a student receiving a 
     scholarship under this subtitle shall not be required to 
     attend or participate in a religion class or religious 
     ceremony without the written consent of such student's 
     parent;
       (6) contain an assurance that funds received under this 
     subtitle will not be used to pay the costs related to a 
     religion class or a religious ceremony, except that such 
     funds may be used to pay the salary of a teacher who teaches 
     such class or participates in such ceremony if such teacher 
     also teaches an academic class at such eligible institution;
       (7) contain an assurance that the eligible institution will 
     abide by all regulations of the District of Columbia 
     Government applicable to such eligible institution; and
       (8) contain an assurance that the eligible institution will 
     implement due process requirements for expulsion and 
     suspension of students, including at a minimum, a process for 
     appealing the expulsion or suspension decision.
       (b) Certification.--
       (1) In general.--Except as provided in paragraph (3), not 
     later than 60 days after receipt of an application in 
     accordance with subsection (a), the Corporation shall certify 
     an eligible institution to participate in the scholarship 
     program under this subtitle.
       (2) Continuation.--An eligible institution's certification 
     to participate in the scholarship program shall continue 
     unless such eligible institution's certification is revoked 
     in accordance with subsection (d).
       (3) Exception for 1996.--For fiscal year 1996 only, and 
     after receipt of an application in accordance with subsection 
     (a), the Corporation shall certify the eligibility of an 
     eligible institution to participate in the scholarship 
     program under this subtitle at the earliest practicable date.
       (c) New Eligible Institution.--
       (1) In general.--An eligible institution that did not 
     operate with at least 25 students in the 3 years preceding 
     the year for which the determination is made may apply for a 
     1-year provisional certification to participate in the 
     scholarship program under this subtitle for a single year by 
     providing to the Corporation not later than July 1 of the 
     year preceding the year for which the determination is made--
       (A) a list of the eligible institution's board of 
     directors;
       (B) letters of support from not less than 10 members of the 
     community served by such eligible institution;
       (C) a business plan;
       (D) an intended course of study;
       (E) assurances that the eligible institution will begin 
     operations with not less than 25 students;
       (F) assurances that the eligible institution will comply 
     with all applicable requirements of this subtitle; and
       (G) a statement that satisfies the requirements of 
     paragraph (2), and paragraphs (4) through (8), of subsection 
     (a).
       (2) Certification.--Not later than 60 days after the date 
     of receipt of an application described in paragraph (1), the 
     Corporation shall certify in writing the eligible 
     institution's provisional certification to participate in the 
     scholarship program under this subtitle unless the 
     Corporation determines that good cause exists to deny 
     certification.
       (3) Renewal of provisional certification.--After receipt of 
     an application under paragraph (1) from an eligible 
     institution that includes an audit of the financial 
     statements of the eligible institution by an independent 
     certified public accountant using generally accepted auditing 
     standards completed not earlier than 12 months before the 
     date such application is filed, the Corporation shall renew 
     an eligible institution's provisional certification for the 
     second and third years of the school's participation in the 
     scholarship program under this subtitle unless the 
     Corporation finds--
       (A) good cause to deny the renewal, including a finding of 
     a pattern of violation of requirements described in section 
     2926(a); or
       (B) consistent failure of 25 percent or more of the 
     students receiving scholarships under this subtitle and 
     attending such school to make appropriate progress (as 
     determined by the Corporation) in academic achievement.
       (4) Denial of certification.--If provisional certification 
     or renewal of provisional certification under this subsection 
     is denied, then the Corporation shall provide a written 
     explanation to the eligible institution of the reasons for 
     such denial.
       (d) Revocation of Eligibility.--
       (1) In general.--The Corporation, after notice and hearing, 
     may revoke an eligible institution's certification to 
     participate in the scholarship program under this subtitle 
     for a year succeeding the year for which the determination is 
     made for--
       (A) good cause, including a finding of a pattern of 
     violation of program requirements described in section 
     2926(a); or
       (B) consistent failure of 25 percent or more of the 
     students receiving scholarships under this subtitle and 
     attending such school to make appropriate progress (as 
     determined by the Corporation) in academic achievement.
       (2) Explanation.--If the certification of an eligible 
     institution is revoked, the Corporation shall provide a 
     written explanation of its decision to such eligible 
     institution and require a pro rata refund of the payments 
     received under this subtitle.

      SEC. 2926. PARTICIPATION REQUIREMENTS FOR ELIGIBLE 
                   INSTITUTIONS.

       (a) Requirements.--Each eligible institution participating 
     in the scholarship program under this subtitle shall--
       (1) provide to the Corporation not later than June 30 of 
     each year the most recent audit of the financial statements 
     of the eligible institution by an independent certified 
     public accountant using generally accepted auditing standards 
     completed not earlier than 3 years before the date the 
     application is filed; and
       (2) charge a student that receives a scholarship under this 
     subtitle the same amounts for the cost of tuition and 
     mandatory fees for, and transportation to attend, such 
     eligible institution as other students who are residents of 
     the District of Columbia and enrolled in such eligible 
     institution.
       (b) Compliance.--The Corporation may require documentation 
     of compliance with the requirements of subsection (a), but 
     neither the Corporation nor any governmental entity may 
     impose additional requirements upon an eligible institution 
     as a condition of participation in the scholarship program 
     under this subtitle.

     SEC. 2927. CIVIL RIGHTS.

       (a) In General.--An eligible institution participating in 
     the scholarship program under this subtitle shall be deemed 
     to be a recipient of Federal financial assistance for the 
     purposes of the Age Discrimination Act of 1975 (42 U.S.C. 
     6101 et seq.), title VI of the Civil Rights Act of 1964 (42 
     U.S.C. 2000d et seq.), title IX of the Education Amendments 
     of 1972 (20 U.S.C. 1681 et seq.), and section 504 of the 
     Rehabilitation Act of 1973 (29 U.S.C. 794).
       (b) Revocation.--Notwithstanding section 2926(b), if the 
     Secretary of Education determines that an eligible 
     institution participating in the scholarship program under 
     this subtitle is in violation of any of the laws listed in 
     subsection (a), then the Corporation shall revoke such 
     eligible institution's certification to participate in the 
     program.

      SEC. 2928. CHILDREN WITH DISABILITIES.

       (a) In General.--Nothing in this subtitle shall affect the 
     rights of students or the obligations of the District of 
     Columbia public schools under the Individuals with 
     Disabilities Education Act (20 U.S.C. 1400 et seq.).
       (b) Private or Independent School Scholarships.--
       (1) Determination of Eligiblity for Services.--If requested 
     by either a parent of a child with a disability who attends a 
     private or independent school receiving funding under this 
     subtitle or by the private or independent school receiving 
     funding under this subtitle, the Board of Education shall 
     determine the eligibility of such child for services under 
     the Individuals with Disabilities Education Act (20 U.S.C. 
     1400 et seq.).
       (2) Requirements.--If a child is determined eligible for 
     services under the Individuals with Disabilities Education 
     Act (20 U.S.C. 1400 et seq.) pursuant to paragraph (1), the 
     Board of Education shall--
       (A) develop an individualized education program, as defined 
     in section 602 of the Individuals with Disabilities Education 
     Act (20 U.S.C. 1401), for such child; and
       (B) negotiate with the private or independent school to 
     deliver to such child the services described in the 
     individualized education program.
       (3) Appeal.--If the Board of Education determines that a 
     child is not eligible for services under the Individuals with 
     Disabilities Education Act (20 U.S.C. 1400 et seq.) pursuant 
     to paragraph (1), such child shall retain the right to appeal 
     such determination under such Act as if such child were 
     attending a District of Columbia public school.

      SEC. 2929. CONSTRUCTION PROHIBITION.

       No funds under this subtitle may be used for construction 
     of facilities.

      SEC. 2930. SCHOLARSHIP PAYMENTS.

       (a) In General.--
       (1) Proportional payment.--The Corporation shall make 
     scholarship payments to participating eligible institutions 
     on a schedule established by the Corporation.
       (2) Pro rata amounts for student withdrawal.--
       (A) Before payment.--If a student receiving a scholarship 
     withdraws or is expelled from an eligible institution before 
     a scholarship payment is made, the eligible institution shall 
     receive a pro rata payment based on the amount of the 
     scholarship and the number of days the student was enrolled 
     in the eligible institution.
       (B) After payment.--If a student receiving a scholarship 
     withdraws or is expelled after a scholarship payment is made, 
     the eligible institution shall refund to the Corporation on a 
     pro rata basis the proportion of any scholarship payment 
     received for the remaining days of the school year. Such 
     refund shall occur not later than 30 days after the date of 
     the withdrawal or expulsion of the student.
       (b) Fund Transfers.--The Corporation shall make scholarship 
     payments to participating eligible institutions by electronic 
     funds transfer. If such an arrangement is not available, then 
     the eligible institution shall submit an alternative payment 
     proposal to the Corporation for approval.

     SEC. 2931. APPLICATION SCHEDULE AND PROCEDURES.

       The Corporation shall implement a schedule and procedures 
     for processing applications for awarding student scholarships 
     under this subtitle that includes a list of certified 
     eligible institutions, distribution of information to parents

[[Page S2127]]

     and the general public (including through a newspaper of 
     general circulation), and deadlines for steps in the 
     scholarship application and award process.

     SEC. 2932. REPORTING REQUIREMENTS.

       (a) In General.--An eligible institution participating in 
     the scholarship program under this subtitle shall report not 
     later than July 30 of each year in a manner prescribed by the 
     Corporation, the following data:
       (1) Student achievement in the eligible institution's 
     programs.
       (2) Grade advancement for scholarship students.
       (3) Disciplinary actions taken with respect to scholarship 
     students.
       (4) Graduation, college admission test scores, and college 
     admission rates, if applicable for scholarship students.
       (5) Types and amounts of parental involvement required for 
     all families of scholarship students.
       (6) Student attendance for scholarship and nonscholarship 
     students.
       (7) General information on curriculum, programs, 
     facilities, credentials of personnel, and disciplinary rules 
     at the eligible institution.
       (8) Number of scholarship students enrolled.
       (9) Such other information as may be required by the 
     Corporation for program appraisal.
       (b) Confidentiality.--No personal identifiers may be used 
     in such report, except that the Corporation may request such 
     personal identifiers solely for the purpose of verification.

      SEC. 2933. PROGRAM APPRAISAL.

       (a) Study.--Not later than 4 years after the date of 
     enactment of this Act, the Department of Education shall 
     provide for an independent evaluation of the scholarship 
     program under this subtitle, including--
       (1) a comparison of test scores between scholarship 
     students and District of Columbia public school students of 
     similar backgrounds, taking into account the students' 
     academic achievement at the time of the award of their 
     scholarships and the students' family income level;
       (2) a comparison of graduation rates between scholarship 
     students and District of Columbia public school students of 
     similar backgrounds, taking into account the students' 
     academic achievement at the time of the award of their 
     scholarships and the students' family income level; and
       (3) the satisfaction of parents of scholarship students 
     with the scholarship program.
       (b) Public Review of Data.--All data gathered in the course 
     of the study described in subsection (a) shall be made 
     available to the public upon request except that no personal 
     identifiers shall be made public.
       (c) Report to Congress.--Not later than September 1 of each 
     year, the Corporation shall submit a progress report on the 
     scholarship program to the appropriate congressional 
     committees. Such report shall include a review of how 
     scholarship funds were expended, including the initial 
     academic achievement levels of students who have participated 
     in the scholarship program.
       (d) Authorization.--There are authorized to be appropriated 
     for the study described in subsection (a), $250,000, which 
     shall remain available until expended.

      SEC. 2934. JUDICIAL REVIEW.

       The United States District Court for the District of 
     Columbia shall have jurisdiction over any constitutional 
     challenges to the scholarship program under this subtitle and 
     shall provide expedited review.

     SEC. 2936. OFFSET.

       In addition to the reduction in appropriations and 
     expenditures for personal services required under the heading 
     ``Pay Renegotiation or Reduction in Compensation'' in the 
     District of Columbia Appropriations Act, 1996, the Mayor of 
     the District of Columbia shall reduce such appropriations and 
     expenditures in accordance with the provisions of such 
     heading by an additional $5,000,000.

     SEC. 2937. OFFSETS.

       Notwithstanding any other provision in this Act or in the 
     District of Columbia Appropriations Act, 1996, the payment to 
     the District of Columbia for the fiscal year ending September 
     30, 1996, shall be $655,000,000, as authorized by section 
     502(a) of the District of Columbia Self-Government and 
     Governmental Reorganization Act, Public Law 93-198, as 
     amended (D.C. Code, sec. 47-3406.1).

     SEC 2938. FEDERAL APPROPRIATIONS.

       Notwithstanding any other provision in this Act or in the 
     District of Columbia Appropriations Act, 1996, the Federal 
     contribution to Education Reform shall be $19,930,000, of 
     which $5,000,000 shall be available for scholarships for low 
     income students in dangerous or failed public schools as 
     provided for in Subtitle N and shall not be disbursed by the 
     Authority until the Authority receives a certification from 
     the District of Columbia Emergency Scholarship Corporation 
     that the proposed allocation between the tuition scholarships 
     and enhanced achievement scholarships has been approved by 
     the Council of the District of Columbia consistent with the 
     Scholarship Corporation's most recent proposal concerning the 
     implementation of the emergency scholarship program. These 
     funds shall lapse and be returned by the Authority to the 
     U.S. Treasury on September 30, 1996, if the required 
     certification from the Scholarship Corporation is not 
     received by July 1, 1996.

     SEC 2939. EDUCATION REFORM.

       In addition to the amounts appropriated for the District of 
     Columbia under the heading ``Education Reform'', $5,000,000 
     shall be paid to the District of Columbia Emergency 
     Scholarship Corporation authorized in Subtitle N.''
                                 ______


               COVERDELL (AND OTHERS) AMENDMENT NO. 3532

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

       In the pending amendment, on page 540, line 11 after 
     ``Act'' insert: ``and $5,000,000 shall be available for 
     obligation for the period July 1, 1995 through 30, 1996 for 
     employment-related activities of the 1996 Paralympic Games''.
       In the pending amendment, on page 597, line 21 after 
     ``expended'' insert: ``, of which $1,500,000 shall be for a 
     demonstration program to foster economic independence among 
     people with disabilities through disability sport, in 
     connection with the Tenth Paralympic Games''.
                                 ______


                  BOND (AND OTHERS) AMENDMENT NO. 3533

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

       In lieu of the matter proposed to be inserted by Amendment 
     No. 3482 to the Committee Substitute amendment, insert:

                   TITLE V--ENVIRONMENTAL INITIATIVES

   CHAPTER 1--DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN 
                 DEVELOPMENT, AND INDEPENDENT AGENCIES

                           Independent Agency


                    environmental protection agency

                 Environmental Programs and Management

       In addition to funds provided elsewhere in this Act, 
     $75,000,000, to remain available until September 30, 1997.

                        Buildings and Facilities

       In addition to funds provided elsewhere in this Act, 
     $50,000,000, to remain available until expended, for the 
     construction of a consolidated research facility at Research 
     Triangle Park, North Carolina: Provided, That pursuant to the 
     provisions of section 7(a) of the Public Buildings Act of 
     1959 (40 U.S.C. 606(a)), that no funds shall be made 
     available for construction of such project prior to April 19, 
     1996, unless such project is approved by resolutions of the 
     Senate Committee on Environment and Public Works and the 
     House Committee on Transportation and Infrastructure, 
     respectively: Provided further, That in no case shall funds 
     be made available for construction of such project if prior 
     to April 19, 1996, the project has been disapproved by either 
     the Senate Committee on Environment and Public Works or the 
     House Committee on Transportation and Infrastructure: 
     Provided further, That notwithstanding any other provision of 
     this Act, the paragraph under this heading in chapter 4 of 
     title IV of this Act shall not become effective.

                   State and Tribal Assistance Grants

       In addition to funds provided elsewhere in this Act, 
     $200,000,000, to remain available until expended, for 
     capitalization grants for state revolving funds to support 
     water infrastructure financing: Provided, That of the funds 
     made available by this paragraph, $125,000,000 shall be for 
     drinking water state revolving funds, but if no drinking 
     water state revolving fund legislation is enacted by June 1, 
     1996, these funds shall immediately be available for making 
     capitalization grants under title VI of the Federal Water 
     Pollution Control Act, as amended.

                     Hazardous Substance Superfund

       In addition to funds provided elsewhere in this Act, 
     $50,000,000, to remain available until expended.

                           General Provisions

       Sec. 5001. Notwithstanding any other provision of this Act, 
     amounts provided in title IV of this Act for the 
     Environmental Protection Agency, with the exception of 
     amounts appropriated under the heading ``buildings and 
     facilities'', shall become available immediately upon 
     enactment of this Act.


             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

[[Page S2128]]

     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: Provided 
     further, That prior to September 30, 1996, the General 
     Accounting Office shall report to the Congress the results 
     of a study of state commission programs which evaluates 
     the cost per participant, the commissions' ability to 
     oversee the programs, and other relevant considerations: 
     provided further, That the matter under this heading in 
     title I of this Act shall not be effective.

                           Sense of Congress

       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.

                           Funding Adjustment

       The total amount appropriated under the heading 
     ``Department of Housing and Urban Development, Housing 
     Programs, Annual contribution for assisted housing'', in 
     title I of this Act is reduced by $17,000,000, and the amount 
     otherwise made available under said heading for section 8 
     assistance and rehabilitation grants for property disposition 
     is reduced to $192,000,000.

                      CHAPTER 2--SPENDING OFFSETS

                     Subchapter A--Debt Collection

     SEC. 5101. SHORT TITLE.

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

     SEC. 5102. EFFECTIVE DATE.

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

              PART I--GENERAL DEBT COLLECTION INITIATIVES

                  Subpart A--General Offset Authority

     SEC. 5201. ENHANCEMENT OF ADMINISTRATIVE OFFSET AUTHORITY.

       (a) Section 3701(c) of title 31, United States Code, is 
     amended to read as follows:
       ``(c) In sections 3716 and 3717 of this title, the term 
     `person' does not include an agency of the United States 
     Government, or of a unit of general local government.''.
       (b) Section 3716 of title 31, United States Code, is 
     amended--
       (1) by amending subsection (b) to read as follows:
       ``(b) Before collecting a claim by administrative offset, 
     the head of an executive, legislative, or judicial agency 
     must either--
       ``(1) adopt regulations on collecting by administrative 
     offset promulgated by the Department of Justice, the General 
     Accounting Office and/or the Department of the Treasury 
     without change; or
       ``(2) prescribe independent regulations on collecting by 
     administrative offset consistent with the regulations 
     promulgated under paragraph (1).'';
       (2) by amending subsection (c)(2) to read as follows:
       ``(2) when a statute explicitly prohibits using 
     administrative `offset' or `setoff' to collect the claim or 
     type of claim involved.'';
       (3) by redesignating subsection (c) as subsection (d); and
       (4) by inserting after subsection (b) the following new 
     subsection:
       ``(c)(1)(A) Except as provided in subparagraph (B) or (C), 
     a disbursing official of the Department of the Treasury, the 
     Department of Defense, the United States Postal Service, or 
     any disbursing official of the United States designated by 
     the Secretary of the Treasury, is authorized to offset the 
     amount of a payment which a payment certifying agency has 
     certified to the disbursing official for disbursement by an 
     amount equal to the amount of a claim which a creditor agency 
     has certified to the Secretary of the Treasury pursuant to 
     this subsection.
       ``(B) An agency that designates disbursing officials 
     pursuant to section 3321(c) of this title is not required to 
     certify claims arising out of its operations to the Secretary 
     of the Treasury before such agency's disbursing officials 
     offset such claims.
       ``(C) Payments certified by the Department of Education 
     under a program administered by the Secretary of Education 
     under title IV of the Higher Education Act of 1965, as 
     amended, shall not be subject to offset under this 
     subsection.
       ``(2) Neither the disbursing official nor the payment 
     certifying agency shall be liable--
       ``(A) for the amount of the offset on the basis that the 
     underlying obligation, represented by the payment before the 
     offset was taken, was not satisfied; or
       ``(B) for failure to provide timely notice under paragraph 
     (8).
       ``(3)(A) Notwithstanding any other provision of law 
     (including sections 207 and 1631(d)(1) of the Act of August 
     14, 1935 (42 U.S.C. 407 and 1383(d)(1)), section 413(b) of 
     Public Law 91-173 (30 U.S.C. 923(b)), and section 14 of the 
     Act of August 29, 1935 (45 U.S.C. 231m)), all payments due 
     under the Social Security Act, Part B of the Black Lung 
     Benefits Act, or under any law administered by the Railroad 
     Retirement Board shall be subject to offset under this 
     section.
       ``(B) An amount of $10,000 which a debtor may receive under 
     Federal benefit programs cited under subparagraph (A) within 
     a 12-month period shall be exempt from offset under this 
     subsection. In applying the $10,000 exemption, the disbursing 
     official shall--
       ``(i) apply a prorated amount of the exemption to each 
     periodic benefit payment to be made to the debtor during the 
     applicable 12-month period; and
       ``(ii) consider all benefit payments made during the 
     applicable 12-month period which are exempt from offset under 
     this subsection as part of the $10,000 exemption.

     For purposes of the preceding sentence, the amount of a 
     periodic benefit payment shall be the amount after any 
     reduction or deduction required under the laws authorizing 
     the program under which such payment is authorized to be made 
     (including any reduction or deduction to recover any 
     overpayment under such program).
       ``(C) The Secretary of the Treasury shall exempt means-
     tested programs when notified by the head of the respective 
     agency. The Secretary may exempt other payments from offset 
     under this subsection upon the written request of the head of 
     a payment certifying agency. A written request for exemption 
     of other payments must provide justification for the 
     exemption under the standards prescribed by the Secretary. 
     Such standards shall give due consideration to whether offset 
     would tend to interfere substantially with or defeat the 
     purposes of the payment certifying agency's program.
       ``(D) The provisions of sections 205(b)(1) and 1631(c)(1) 
     of the Social Security Act shall not apply to any offset 
     executed pursuant to this section against benefits authorized 
     by either title II or title XVI of the Social Security Act.

[[Page S2129]]

       ``(4) The Secretary of the Treasury is authorized to charge 
     a fee sufficient to cover the full cost of implementing this 
     subsection. The fee may be collected either by the retention 
     of a portion of amounts collected pursuant to this 
     subsection, or by billing the agency referring or 
     transferring the claim. Fees charged to the agencies shall be 
     based only on actual offsets completed. Fees charged under 
     this subsection concerning delinquent claims may be 
     considered as costs pursuant to section 3717(e) of this 
     title. Fees charged under this subsection shall be deposited 
     into the `Account' determined by the Secretary of the 
     Treasury in accordance with section 3711(g) of this title, 
     and shall be collected and accounted for in accordance with 
     the provisions of that section.
       ``(5) The Secretary of the Treasury may disclose to a 
     creditor agency the current address of any payee and any data 
     related to certifying and authorizing such payment in 
     accordance with section 552a of title 5, United States Code, 
     even when the payment has been exempt from offset. Where 
     payments are made electronically, the Secretary is authorized 
     to obtain the current address of the debtor/payee from the 
     institution receiving the payment. Upon request by the 
     Secretary, the institution receiving the payment shall report 
     the current address of the debtor/payee to the Secretary.
       ``(6) The Secretary of the Treasury is authorized to 
     prescribe such rules, regulations, and procedures as the 
     Secretary of the Treasury deems necessary to carry out the 
     purposes of this subsection. The Secretary shall consult with 
     the heads of affected agencies in the development of such 
     rules, regulations, and procedures.
       ``(7)(A) Any Federal agency that is owed by a named person 
     a past-due legally enforceable non-tax debt that is over 180 
     days delinquent (other than any past-due support), including 
     non-tax debt administered by a third party acting as an agent 
     for the Federal Government, shall notify the Secretary of the 
     Treasury of all such non-tax debts for purposes of offset 
     under this subsection.
       ``(B) An agency may delay notification under subparagraph 
     (A) with respect to a debt that is secured by bond or other 
     instruments in lieu of bond, or for which there is another 
     specific repayment source, in order to allow sufficient time 
     to either collect the debt through normal collection 
     processes (including collection by internal administrative 
     offset) or render a final decision on any protest filed 
     against the claim.
       ``(8) The disbursing official conducting the offset shall 
     notify the payee in writing of--
       ``(A) the occurrence of an offset to satisfy a past-due 
     legally enforceable debt, including a description of the type 
     and amount of the payment otherwise payable to the debtor 
     against which the offset was executed;
       ``(B) the identity of the creditor agency requesting the 
     offset; and
       ``(C) a contact point within the creditor agency that will 
     handle concerns regarding the offset.''.

     Where the payment to be offset is a periodic benefit payment, 
     the disbursing official shall take reasonable steps, as 
     determined by the Secretary of the Treasury, to provide the 
     notice to the payee not later than the date on which the 
     payee is otherwise scheduled to receive the payment, or as 
     soon as practical thereafter, but no later than the date of 
     the offset. Notwithstanding the preceding sentence, the 
     failure of the debtor to receive such notice shall not impair 
     the legality of such offset.
       ``(9) A levy pursuant to the Internal Revenue Code of 1986 
     shall take precedence over requests for offset received from 
     other agencies.''.
       (c) Section 3701(a) of title 31, United States Code, is 
     amended by adding at the end the following new paragraph:
       ``(8) `non-tax claim' means any claim from any agency of 
     the Federal Government other than a claim by the Internal 
     Revenue Service under the Internal Revenue Code of 1986.''.

     SEC. 5202. HOUSE OF REPRESENTATIVES AS LEGISLATIVE AGENCY.

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

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

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

     SEC. 5204. TECHNICAL AND CONFORMING AMENDMENTS.

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

                   Subpart B--Salary Offset Authority

     SEC. 5221. ENHANCEMENT OF SALARY OFFSET AUTHORITY.

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

                Subpart C--Taxpayer Identifying Numbers

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

       Section 4 of the Debt Collection Act of 1982 (Public Law 
     97-365, 96 Stat. 1749, 26 U.S.C. 6103 note) is amended--
       (1) in subsection (b), by striking ``For purposes of this 
     section'' and inserting instead ``For purposes of subsection 
     (a)''; and
       (2) by adding at the end thereof the following new 
     subsections:
       ``(c) Federal Agencies.--Each Federal agency shall require 
     each person doing business with that agency to furnish to 
     that agency such person's taxpayer identifying number.
       ``(1) For purposes of this subsection, a person is 
     considered to be `doing business' with a Federal agency if 
     the person is--

[[Page S2130]]

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

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

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

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

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

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

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

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

       (a) Subsection 8(e) of the Debt Collection Act of 1982 
     (Public Law 97-365, 31 U.S.C. 3701(d) and 5 U.S.C. 5514 note) 
     is repealed.
       (b) Section 5 of the Social Security Domestic Employment 
     Reform Act of 1994 (Public Law 103-387) is repealed.
       (c) Section 631 of the Tariff Act of 1930 (19 U.S.C. 1631), 
     is repealed.
       (d) Title 31, United States Code, is amended--
       (1) in section 3701--
       (A) by amending subsection (a)(4) to read as follows:
       ``(4) `executive, judicial or legislative agency' means a 
     department, military department, agency, court, court 
     administrative office, or instrumentality in the executive, 
     judicial or legislative branches of government, including 
     government corporations.''; and
       (B) by inserting after subsection (c) the following new 
     subsection:
       ``(d) Sections 3711(f) and 3716-3719 of this title do not 
     apply to a claim or debt under, or to an amount payable 
     under, the Internal Revenue Code of 1986.'';
       (2) by amending section 3711(f) to read as follows:
       ``(f)(1) When trying to collect a claim of the Government, 
     the head of an executive or legislative agency may disclose 
     to a consumer reporting agency information from a system of 
     records that an individual is responsible for a claim if 
     notice required by section 552a(e)(4) of title 5, United 
     States Code, indicates that information in the system may be 
     disclosed to a consumer reporting agency.
       ``(2) The information disclosed to a consumer reporting 
     agency shall be limited to--
       ``(A) information necessary to establish the identity of 
     the individual, including name, address and taxpayer 
     identifying number;
       ``(B) the amount, status, and history of the claim; and
       ``(C) the agency or program under which the claim arose.''; 
     and
       (3) in section 3718--
       (A) in subsection (a), by striking the first sentence and 
     inserting instead the following: ``Under conditions the head 
     of an executive, legislative or judicial agency considers 
     appropriate, the head of an agency may make a contract with a 
     person for collection service to recover indebtedness owed, 
     or to locate or recover assets of, the United States 
     Government. No head of an agency may enter into a contract to 
     locate or recover assets of the United States held by a State 
     government or financial institution unless that agency has 
     established procedures approved by the Secretary of the 
     Treasury to identify and recover such assets.''; and
       (B) in subsection (d), by inserting ``, or to locate or 
     recover assets of,'' after ``owed''.

     SEC. 5242. GOVERNMENTWIDE CROSS-SERVICING.

       Section 3711 of title 31, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(g)(1) At the discretion of the head of an executive, 
     judicial or legislative agency, referral of a non-tax claim 
     may be made to any executive department or agency operating a 
     debt collection center for servicing and collection in 
     accordance with an agreement entered into under paragraph 
     (2). Referral or transfer of a claim may also be made to the 
     Secretary of the Treasury for servicing, collection, 
     compromise, and/or suspension or termination of collection 
     action. Non-tax claims referred or transferred under this 
     section shall be serviced, collected, compromised, and/or 
     collection action suspended or terminated in accordance with 
     existing statutory requirements and authorities.
       ``(2) Executive departments and agencies operating debt 
     collection centers are authorized to enter into agreements 
     with the heads of executive, judicial, or legislative 
     agencies to service and/or collect non-tax claims referred or 
     transferred under this subsection. The heads of other 
     executive departments and agencies are authorized to enter 
     into agreements with the Secretary of the Treasury for 
     servicing or collection of referred or transferred non-tax 
     claims or other Federal agencies operating debt collection 
     centers to obtain debt collection services from those 
     agencies.
       ``(3) Any agency to which non-tax claims are referred or 
     transferred under this subsection is authorized to charge a 
     fee sufficient to cover the full cost of implementing this 
     subsection. The agency transferring or referring the non-tax 
     claim shall be charged the fee, and the agency charging the 
     fee shall collect such fee by retaining the amount of the fee 
     from amounts collected pursuant to this subsection. Agencies 
     may agree to pay through a different method, or to fund the 
     activity from another account or from revenue received from 
     Section 701. Amounts charged under this subsection concerning 
     delinquent claims may be considered as costs pursuant to 
     section 3717(e) of this title.
       ``(4) Notwithstanding any other law concerning the 
     depositing and collection of Federal payments, including 
     section 3302(b) of this title, agencies collecting fees may 
     retain the fees from amounts collected. Any fee charged 
     pursuant to this subsection shall be deposited into an 
     account to be determined by the executive department or 
     agency operating the debt collection center charging the fee 
     (hereafter referred to in this section as the `Account'). 
     Amounts deposited in the Account shall be available until 
     expended to cover costs associated with the implementation 
     and operation of government-wide debt collection activities. 
     Costs properly chargeable to the Account include, but are not 
     limited to--
       ``(A) the costs of computer hardware and software, word 
     processing and telecommunications equipment, other equipment, 
     supplies, and furniture;
       ``(B) personnel training and travel costs;
       ``(C) other personnel and administrative costs;
       ``(D) the costs of any contract for identification, 
     billing, or collection services; and
       ``(E) reasonable costs incurred by the Secretary of the 
     Treasury, including but not limited to, services and 
     utilities provided by the Secretary, and administration of 
     the Account.
       ``(5) Not later than January 1 of each year, there shall be 
     deposited into the Treasury as miscellaneous receipts, an 
     amount equal to the amount of unobligated balances remaining 
     in the Account at the close of business on September 30 of 
     the preceding year minus any part of such balance that the 
     executive department or agency operating the debt collection 
     center determines is necessary to cover or defray the costs 
     under this subsection for the fiscal year in which the 
     deposit is made.
       ``(6)(A) The head of an executive, legislative, or judicial 
     agency shall transfer to the Secretary of the Treasury all 
     non-tax claims over 180 days delinquent for additional 
     collection action and/or closeout. A taxpayer identification 
     number shall be included with each claim provided if it is in 
     the agency's possession.
       ``(B) Subparagraph (A) shall not apply--
       ``(i) to claims that--

[[Page S2131]]

       ``(I) are in litigation or foreclosure;
       ``(II) will be disposed of under the loan sales program of 
     a Federal department or agency;
       ``(III) have been referred to a private collection 
     contractor for collection;
       ``(IV) are being collected under internal offset 
     procedures;
       ``(V) have been referred to the Department of the Treasury, 
     the Department of Defense, the United States Postal Service, 
     or a disbursing official of the United States designated by 
     the Secretary of the Treasury for administrative offset;
       ``(VI) have been retained by an executive agency in a debt 
     collection center; or
       ``(VII) have been referred to another agency for 
     collection;
       ``(ii) to claims which may be collected after the 180-day 
     period in accordance with specific statutory authority or 
     procedural guidelines, provided that the head of an 
     executive, legislative, or judicial agency provides notice of 
     such claims to the Secretary of the Treasury; and
       ``(iii) to other specific class of claims as determined by 
     the Secretary of the Treasury at the request of the head of 
     an agency or otherwise.
       ``(C) The head of an executive, legislative, or judicial 
     agency shall transfer to the Secretary of the Treasury all 
     non-tax claims on which the agency has ceased collection 
     activity. The Secretary may exempt specific classes of claims 
     from this requirement, at the request of the head of an 
     agency, or otherwise. The Secretary shall review transferred 
     claims to determine if additional collection action is 
     warranted. The Secretary may, in accordance with section 
     6050P of title 26, United States Code, report to the Internal 
     Revenue Service on behalf of the creditor agency any claims 
     that have been discharged within the meaning of such section.
       ``(7) At the end of each calendar year, the head of an 
     executive, legislative, or judicial agency which, regarding a 
     claim owed to the agency, is required to report a discharge 
     of indebtedness as income under the 6050P of title 26, United 
     States Code, shall either complete the appropriate form 1099 
     or submit to the Secretary of the Treasury such information 
     as is necessary for the Secretary of the Treasury to complete 
     the appropriate form 1099. The Secretary of the Treasury 
     shall incorporate this information into the appropriate form 
     and submit the information to the taxpayer and Internal 
     Revenue Service.
       ``(8) To carry out the purposes of this subsection, the 
     Secretary of the Treasury is authorized--
       ``(A) to prescribe such rules, regulations, and procedures 
     as the Secretary deems necessary; and
       ``(B) to designate debt collection centers operated by 
     other Federal agencies.''.

     SEC. 5243. COMPROMISE OF CLAIMS.

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

              Subpart E--Federal Civil Monetary Penalties

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

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

                        Subpart F--Gain Sharing

     SEC. 5261. DEBT COLLECTION IMPROVEMENT ACCOUNT.

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

     ``Sec. 3720C. Debt Collection Improvement Account

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

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

                 Subpart G--Tax Refund Offset Authority

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

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

     SEC. 5272. EXPANDING TAX REFUND OFFSET AUTHORITY.

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

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

       (a) Section 3720A(a) of title 31, United States Code, is 
     amended to read as follows:

[[Page S2132]]

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

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

     SEC. 5281. TECHNICAL AMENDMENTS TO DEFINITIONS.

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

     SEC. 5282. SEVERABILITY.

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

                          Subpart I--Reporting

     SEC. 5291. MONITORING AND REPORTING.

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

                    PART II--JUSTICE DEBT MANAGEMENT

                      Subpart A--Private Attorneys

     SEC. 5301. EXPANDED USE OF PRIVATE ATTORNEYS.

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

                   Subpart B--Nonjudicial Foreclosure

     SEC. 5311. NONJUDICIAL FORECLOSURE OF MORTGAGES.

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

                ``SUBCHAPTER E--NONJUDICIAL FORECLOSURE

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

     ``Sec. 3401. Definitions

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

     ``Sec. 3402. Rules of construction

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

[[Page S2133]]

     ``Sec. 3403. Election of procedure

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

     ``Sec. 3404. Designation of foreclosure trustee

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

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

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

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

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

     ``Sec. 3407. Cancellation of foreclosure sale

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

     ``Sec. 3408. Stay

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

     ``Sec. 3409. Conduct of sale; postponement

       ``(a) Sale Procedures.--Foreclosure sale pursuant to this 
     subchapter shall be at public auction and shall be scheduled 
     to begin at a time between the hours of 9:00 a.m. and 4:00 
     p.m. local time. The foreclosure sale shall be held at the 
     location specified in the notice of foreclosure sale, which 
     shall be a location where real estate foreclosure auctions 
     are customarily held in the county or one of the counties in 
     which the property to be sold is located or at a courthouse 
     therein, or upon the property to be sold. Sale of security 
     property situated in two or more counties may be held in any 
     one of the counties in which any part of the security 
     property is situated. The foreclosure trustee may designate 
     the order in which multiple tracts of security property are 
     sold.
       ``(b) Bidding Requirements.--Written one-price sealed bids 
     shall be accepted by the foreclosure trustee, if submitted by 
     the agency head or other persons for entry by announcement by 
     the foreclosure trustee at the sale. The sealed bids shall be 
     submitted in accordance with the terms set forth in the 
     notice of foreclosure sale. The agency head or any other 
     person may bid at the foreclosure sale, even if the agency 
     head or other person previously submitted a written one-

[[Page S2134]]

     price bid. The agency head may bid a credit against the debt 
     due without the tender or payment of cash. The foreclosure 
     trustee may serve as auctioneer, or may employ an auctioneer 
     who may be paid from the sale proceeds. If an auctioneer is 
     employed, the foreclosure trustee is not required to attend 
     the sale. The foreclosure trustee or an auctioneer may bid as 
     directed by the agency head.
       ``(c) Postponement of Sale.--The foreclosure trustee shall 
     have discretion, prior to or at the time of sale, to postpone 
     the foreclosure sale. The foreclosure trustee may postpone a 
     sale to a later hour the same day by announcing or posting 
     the new time and place of the foreclosure sale at the time 
     and place originally scheduled for the foreclosure sale. The 
     foreclosure trustee may instead postpone the foreclosure sale 
     for not fewer than 9 nor more than 31 days, by serving notice 
     that the foreclosure sale has been postponed to a specified 
     date, and the notice may include any revisions the 
     foreclosure trustee deems appropriate. The notice shall be 
     served by publication, mailing, and posting in accordance 
     with section 3406 (b) and (c), except that publication may be 
     made on any of three separate days prior to the new date of 
     the foreclosure sale, and mailing may be made at any time at 
     least 7 days prior to the new date of the foreclosure sale.
       ``(d) Liability of Successful Bidder Who Fails To Comply.--
     The foreclosure trustee may require a bidder to make a cash 
     deposit before the bid is accepted. The amount or percentage 
     of the cash deposit shall be stated by the foreclosure 
     trustee in the notice of foreclosure sale. A successful 
     bidder at the foreclosure sale who fails to comply with the 
     terms of the sale shall forfeit the cash deposit or, at the 
     election of the foreclosure trustee, shall be liable to the 
     agency on a subsequent sale of the property for all net 
     losses incurred by the agency as a result of such failure.
       ``(e) Effect of Sale.--Any foreclosure sale held in 
     accordance with this subchapter shall be conclusively 
     presumed to have been conducted in a legal, fair, and 
     commercially reasonable manner. The sale price shall be 
     conclusively presumed to constitute the reasonably equivalent 
     value of the security property.

     ``Sec. 3410. Transfer of title and possession

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

     ``Sec. 3411. Record of foreclosure and sale

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

     ``Sec. 3412. Effect of sale

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

     ``Sec. 3413. Disposition of sale proceeds

       ``(a) Distribution of Sale Proceeds.--The foreclosure 
     trustee shall distribute the proceeds of the foreclosure sale 
     in the following order--
       ``(1)(A) to pay the commission of the foreclosure trustee, 
     other than an agency employee, the greater of--
       ``(i) the sum of--
       ``(I) 3 percent of the first $1,000 collected, plus
       ``(II) 1.5 percent on the excess of any sum collected over 
     $1,000; or
       ``(ii) $250; and
       ``(B) the amounts described in subparagraph (A)(i) shall be 
     computed on the gross proceeds of all security property sold 
     at a single sale;
       ``(2) to pay the expense of any auctioneer employed by the 
     foreclosure trustee, if any, except that the commission 
     payable to the foreclosure trustee pursuant to paragraph (1) 
     shall be reduced by the amount paid to an auctioneer, unless 
     the agency head determines that such reduction would 
     adversely affect the ability of the agency head to retain 
     qualified foreclosure trustees or auctioneers;
       ``(3) to pay for the costs of foreclosure, including--
       ``(A) reasonable and necessary advertising costs and 
     postage incurred in giving notice pursuant to section 3406;
       ``(B) mileage for posting notices and for the foreclosure 
     trustee's or auctioneer's attendance at the sale at the rate 
     provided in section 1921 of title 28, United States Code, for 
     mileage by the most reasonable road distance;
       ``(C) reasonable and necessary costs actually incurred in 
     connection with any search of title and lien records; and
       ``(D) necessary costs incurred by the foreclosure trustee 
     to file documents;
       ``(4) to pay valid real property tax liens or assessments, 
     if required by the notice of foreclosure sale;
       ``(5) to pay any liens senior to the mortgage, if required 
     by the notice of foreclosure sale;
       ``(6) to pay service charges and advancements for taxes, 
     assessments, and property insurance premiums; and
       ``(7) to pay late charges and other administrative costs 
     and the principal and interest balances secured by the 
     mortgage, including expenditures for the necessary 
     protection, preservation, and repair of the security property 
     as authorized under the debt instrument or mortgage and 
     interest thereon if provided for in the debt instrument or 
     mortgage, pursuant to the agency's procedure.
       ``(b) Insufficient Proceeds.--In the event there are no 
     proceeds of sale or the proceeds are insufficient to pay the 
     costs and expenses set forth in subsection (a), the agency 
     head shall pay such costs and expenses as authorized by 
     applicable law.
       ``(c) Surplus Monies.--
       ``(1) After making the payments required by subsection (a), 
     the foreclosure trustee shall--
       ``(A) distribute any surplus to pay liens in the order of 
     priority under Federal law or the law of the State where the 
     security property is located; and

[[Page S2135]]

       ``(B) pay to the person who was the owner of record on the 
     date the notice of foreclosure sale was filed the balance, if 
     any, after any payments made pursuant to paragraph (1).
       ``(2) If the person to whom such surplus is to be paid 
     cannot be located, or if the surplus available is 
     insufficient to pay all claimants and the claimants cannot 
     agree on the distribution of the surplus, that portion of the 
     sale proceeds may be deposited by the foreclosure trustee 
     with an appropriate official authorized under law to receive 
     funds under such circumstances. If such a procedure for the 
     deposit of disputed funds is not available, and the 
     foreclosure trustee files a bill of interpleader or is sued 
     as a stakeholder to determine entitlement to such funds, the 
     foreclosure trustee's necessary costs in taking or defending 
     such action shall be deducted first from the disputed funds.

     ``Sec. 3414. Deficiency judgment

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

              Subchapter B--FAA Grants-in-Aid for Airports


       federal aviation administration grants-in-aid for airports

                    (Airport and Airway Trust Fund)

                   (Rescission of Contract Authority)

       Of the available contract authority balances under this 
     account, $48,000,000 are hereby rescinded, in addition to any 
     such sums otherwise rescinded by this Act.
       On page 637, line 20 of the Committee substitute, following 
     new proviso is deemed to be in inserted 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''.
       ``Sec. 223B. Section 415 of the Department of Housing and 
     Urban Development--Independent Agencies Appropriations Act, 
     1988 (Public Law 100-202; 101 Stat. 1329-213) is repealed 
     effective the date of enactment of Public Law 104-19. The 
     Secretary is authorized to demolish the structures identified 
     in such section. The Secretary is also authorized to 
     compensate those local governments which, due to this 
     provision, expended local revenues demolishing the 
     developments identified in such provision.''.
       On page 779, line 10, of the Committee substitute, the 
     following deemed to be inserted:


     management and administration departmental 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 the 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.
       On page 771 line 17 the following new section is deemed to 
     be inserted:
       Sec.  . Within its Mission to Planet Earth program, NASA is 
     urged to fund Phase A studies for a radar satellite 
     initiative.
       On page 689, after line 26 of the Committee substitute, the 
     following new section is deemed to be inserted:
       Sec.  . (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 
     (ii) 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 hereinafter to 
     projects for which plans of action are to be funded under 
     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:''.

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