[Congressional Record Volume 142, Number 131 (Friday, September 20, 1996)]
[House]
[Pages H10733-H10757]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  CONFERENCE REPORT ON H.R. 3666, DEPARTMENTS OF VETERANS AFFAIRS AND 
HOUSING AND URBAN DEVELOPMENT, AND INDEPENDENT AGENCIES APPROPRIATIONS 
                               ACT, 1997

  Mr. LEWIS of California (during the special order of the gentleman 
from Connecticut, Mr. Shays) submitted the following conference report 
and statement on the bill (H.R. 3666) making appropriations for the 
Departments of Veterans Affairs and Housing and Urban Development, and 
for sundry independent agencies, boards, commissions, corporations, and 
offices for the fiscal year ending September 30, 1997, and for other 
purposes:

                  Conference Report (H. Rept. 104-812)

       The Committee of Conference on the disagreeing votes of the 
     two Houses on the amendments of the Senate to the bill (H.R. 
     3666) ``making appropriations for the Departments of Veterans 
     Affairs and Housing and Urban Development, and for sundry 
     independent agencies, boards, commissions, corporations, and 
     offices for the fiscal year ending September 30, 1997, and 
     for other purposes,'' having met, after full and free 
     conference, have agreed to recommend and do recommend to 
     their respective Houses as follows:
       That the Senate recede from its amendments numbered 11, 60, 
     107, and 112.
       That the House recede from its disagreement to the 
     amendments of the Senate numbered 1, 2, 3, 5, 8, 12, 13, 15, 
     17, 19, 21, 22, 23, 24, 25, 26, 27, 28, 30, 31, 32, 36, 37, 
     38, 39, 42, 44, 45, 46, 48, 49, 50, 51, 52, 53, 54, 55, 56, 
     61, 62, 63, 64, 65, 66, 69, 71, 73, 74, 75, 76, 77, 78, 79, 
     82, 85, 86, 87, 88, 90, 92, 93, 94, 96, 97, 98, 99, 100, 101, 
     103, 104, 106, 108, 109, 110, 114, 115, 116, and agree to the 
     same.
       Amendment numbered 4:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 4, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $700,000,000; and the Senate agree to the same.
       Amendment numbered 6:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 6, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $61,207,000; and the Senate agree to the same.
       Amendment numbered 7:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 7, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $827,584,000; and the Senate agree to the same.
       Amendment numbered 9:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 9, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert: $250,858,000, of which $32,100,000 shall 
     be for the replacement hospital at Travis Air Force Base, 
     Fairfield, California, and shall not be released for 
     obligation prior to January 1, 1998, unless action is taken 
     by Congress specifically making such funds available, and all 
     funds appropriated under the above hearing are; and the 
     Senate agree to the same.
       Amendment numbered 10:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 10, and agree to the same 
     with an amendment, as follows:

[[Page H10734]]

       In lieu of the sum proposed by said amendment, insert: 
     $175,000,000; and the Senate agree to the same.
       Amendment numbered 14:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 14, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment, insert 
     the following:


           development and additional new subsidized housing

       For assistance for the purchase, construction, acquisition, 
     or development of additional public and subsidized housing 
     units for low income families under the United States Housing 
     Act of 1937, as amended (``the Act'' herein) (42 U.S.C. 
     1437), not otherwise provided for, $1,039,000,000, to remain 
     available until expended: Provided, That of the total amount 
     provided under this head, $645,000,000 shall be for capital 
     advances, including amendments to capital advance contracts, 
     for housing for the elderly, as authorized by section 202 of 
     the Housing Act of 1959, as amended, and for project rental 
     assistance, and amendments to contracts for project rental 
     assistance, for supportive housing for the elderly under 
     section 202(c)(2) of the Housing Act of 1959; and 
     $194,000,000 shall be for capital advances, including 
     amendments to capital advance contracts, for supportive 
     housing for persons with disabilities, as authorized by 
     section 811 of the Cranston-Gonzalez National Affordable 
     Housing Act, and for project rental assistance, and 
     amendments to contracts for project rental assistance, for 
     supportive housing for persons with disabilities as 
     authorized by section 811 of the Cranston-Gonzalez National 
     Affordable Housing Act: Provided further, That the Secretary 
     may designate up to 25 percent of the amounts earmarked under 
     this paragraph for section 811 of the Cranston-Gonzalez 
     National Affordable Housing Act for tenant-based assistance, 
     as authorized under that section, including such authority as 
     may be waived under the next proviso, which assistance is 
     five years in duration: Provided further, That the Secretary 
     may waive any provision of section 202 of the Housing Act of 
     1959 and section 811 of the National Affordable Housing Act 
     (including the provisions governing the terms and conditions 
     of project rental assistance and tenant-based assistance) 
     that the Secretary determines is not necessary to achieve the 
     objectives of these programs, or that otherwise impedes the 
     ability to develop, operate or administer projects assisted 
     under these programs, and may make provision for alternative 
     conditions or terms where appropriate: Provided further, That 
     of the total amount provided under this head $200,000,000 
     shall be for the development or acquisition cost of public 
     housing for Indian families, including amounts for housing 
     under the mutual help homeownership opportunity program under 
     section 202 of the Act (42 U.S.C. 1437bb).


                  prevention of resident displacement

       For activities and assistance to prevent the involuntary 
     displacement of low-income families, the elderly and the 
     disabled because of the loss of affordable housing stock, 
     expiration of subsidy contracts (other than contracts for 
     which amounts are provided under the head ``Preserving 
     Existing Housing Investment'') or expiration of use 
     restrictions, or other changes in housing assistance 
     arrangements, and for other purposes, $4,640,000,000, to 
     remain available until expended: Provided, That of the total 
     amount provided under this head, $3,600,000,000 shall be for 
     assistance under the United States Housing Act of 1937 (42 
     U.S.C. 1437) for use in connection with expiring or 
     terminating section 8 subsidy contracts: Provided further, 
     That the Secretary may determine not to apply section 8 
     (o)(6)(B) of the Act to housing vouchers during fiscal year 
     1997: Provided further, That of the total amount provided 
     under this head, $850,000,000 shall be for amendments to 
     section 8 contracts other than contracts for projects 
     developed under section 202 of the Housing Act of 1959, as 
     amended: Provided further, That of the total amount provided 
     under this head, $190,000,000 shall be for assistance under 
     the United States Housing Act of 1937 (42 U.S.C. 1437) to 
     relocate residents of properties (i) that are owned by the 
     Secretary and being disposed of; (ii) that are discontinuing 
     section 8 project-based assistance; or (iii) subject to 
     special workout assistance team intervention compliance 
     actions; for the conversion of section 23 projects to 
     assistance under section 8; for funds to carry out the family 
     unification program; and for the relocation of witnesses in 
     connection with efforts to combat crime in public and 
     assisted housing pursuant to a request from a law enforcement 
     or prosecution agency: Provided further, That of the total 
     amount made available under this head, $50,000,000 shall be 
     made available to nonelderly disabled families affected by 
     the designation of a public housing development under Section 
     7 of such Act or the establishment of preferences in 
     accordance with section 651 of the Housing and Community 
     Development Act of 1992 (42 U.S.C. 13611).


                 preserving existing housing investment

       For operating, maintaining, revitalizing, rehabilitating, 
     preserving, and protecting existing housing developments for 
     low income families, the elderly, and the disabled, 
     $5,750,000,000, to remain available until expended: Provided, 
     That of the total amount made available under this head, 
     $2,900,000,000 shall be available for payments to public 
     housing agencies and Indian housing authorities for operating 
     subsidies for low-income housing projects as authorized by 
     section 9 of the United States Housing Act of 1937, as 
     amended (42 U.S.C. 1437g): Provided further, That of the 
     total amount made available under this head, $2,500,000,000 
     shall be available for modernization of existing public 
     housing projects as authorized under section 14 of the United 
     States Housing Act of 1937, as amended (42 U.S.C. 14371), of 
     which $10,000,000 shall be for carrying out activities under 
     section 6(j) of the United States Housing Act of 1937 and 
     technical assistance for the inspection of public housing 
     units, contract expertise, and training and technical 
     assistance directly or indirectly, under grants, contracts, 
     or cooperative agreements, to assist in the oversight and 
     management of public and Indian housing (whether or not the 
     housing is being modernized with assistance under this 
     proviso) or tenant-based assistance, including, but not 
     limited to, an annual resident survey, data collection and 
     analysis, training and technical assistance by or to 
     officials and employees of the department, and of public 
     housing agencies and to residents in connection with the 
     public and Indian housing program: Provided further, That of 
     the total amount provided under this head, $350,000,000 shall 
     be available for use in conjunction with properties that are 
     eligible for assistance under the Low Income Housing 
     Preservation and Resident Homeownership Act of 1990 (LIHPRHA) 
     or the Emergency Low-Income Housing Preservation Act of 1987 
     (ELIHPA), of which $75,000,000 shall be available for 
     obligation until March 1, 1997 for projects (1) that are 
     subject to a repayment or settlement agreement that was 
     executed between the owner and the Secretary prior to 
     September 1, 1995; (2) whose submissions were delayed as a 
     result of their locations in areas that were designated as a 
     Federal disaster area in a Presidential Disaster Declaration; 
     or (3) whose processing was, in fact or in practical effect, 
     suspended, deferred, or interrupted for a period of twelve 
     months or more because of differing interpretations, by the 
     Secretary and an owner or by the Secretary and a State or 
     local rent regulatory agency, concerning the timing of filing 
     eligibility or the effect of a presumptively applicable State 
     or local rent control law or regulation on the determination 
     of preservation value under section 213 of LIHPRHA, as 
     amended, if the owner of such project filed notice of intent 
     to extend the low-income affordability restrictions of the 
     housing, or transfer to a qualified purchaser who would 
     extend such restrictions, on or before November 1, 1993; and 
     of which, up to $100,000,000 may be used for rental 
     assistance to prevent displacement of families residing in 
     projects whose owners prepay their mortgages; and the balance 
     of which shall be available from the effective date of this 
     Act for sales to preferred priority purchasers: Provided 
     further, That with the exception of projects described in 
     clauses (1), (2), or (3) of the preceding proviso, the 
     Secretary shall, notwithstanding any other provision of law, 
     suspend further processing of preservation applications which 
     have not heretofore received approval of a plan of action: 
     Provided further, That $150,000,000 of amounts recaptured 
     from interest reduction payment contracts for section 236 
     projects whose owners prepay their mortgages during fiscal 
     year 1997 shall be rescinded: Provided further, That an owner 
     of eligible low-income housing may prepay the mortgage or 
     request voluntary termination of a mortgage insurance 
     contract, so long as said owner agrees not to raise rents for 
     sixty days after such prepayment: Provided further, That such 
     developments have been determined to have preservation equity 
     at least equal to the lesser of $5,000 per unit or $500,000 
     per project or the equivalent of eight times the most 
     recently published monthly fair market rent for the area in 
     which the project is located as the appropriate unit size for 
     all of the units in the eligible project: Provided further, 
     That the Secretary may modify the regulatory agreement to 
     permit owners and priority purchasers to retain rental income 
     in excess of the basic rental charge in projects assisted 
     under section 236 of the National Housing Act, for the 
     purpose of preserving the low and moderate income character 
     of the housing: Provided further, That eligible low-income 
     housing shall include properties meeting the requirements of 
     this paragraph with mortgages that are held by the State 
     agency as a result of a sale by the Secretary without 
     insurance which immediately before the sale would have been 
     eligible low-income housing under LIHPRHA: Provided further, 
     That notwithstanding any other provision of law, subject to 
     the availability of appropriated funds, each low-income 
     family, and moderate-income family who is elderly or disabled 
     or is residing in a low-vacancy area, residing in the housing 
     on the date of prepayment or voluntary termination, and whose 
     rent, as a result of a rent increase occurring no later than 
     one year after the date of the prepayment, exceeds 30 percent 
     of adjusted income, shall be offered tenant-based assistance 
     in accordance with section 8 or any successor program, under 
     which the family shall pay no less for rent than it paid on 
     such date: Provided further, That any family receiving 
     tenant-based assistance under the preceding proviso may elect 
     (1) to remain in the unit of the housing and if the rent 
     exceeds the fair market rent or payment standard, as 
     applicable, the rent shall be deemed to be the applicable 
     standard, so long as the administering public housing agency 
     finds that the rent is reasonable in comparison with rents 
     charged for comparable unassisted housing units in the market 
     or (2) to move from the housing and the rent will be subject 
     to the fair market rent of the payment standard, as 
     applicable, under existing program rules and procedures: 
     Provided further, That the tenant-based assistance made 
     available under the preceding two provisos are in lieu of 
     benefits provided in subsections 223(b), (c), and (d) of the 
     low Income Housing Preservation and Resident Homeownership 
     Act of 1990: Provided further, That any sales shall be funded 
     using the capital grant available under section 220(d)(3)(A) 
     of LIHPRHA: Provided further, That any extensions shall be 
     funded using a non-interest-bearing capital (direct) loan by 
     the Secretary not in excess of the amount of the cost of 
     rehabilitation approved in the plan of action

[[Page H10735]]

     plus 65 percent of the property's preservation equity and 
     under such other terms and conditions as the Secretary may 
     prescribe: Provided further, That any capital grant shall be 
     limited to seven times, and any capital loan limited to six 
     times, the annual fair market rent for the project, as 
     determined using the fair market rent for fiscal year 1997 
     for the areas in which the project is located using the 
     appropriate apartment sizes and mix in the eligible project, 
     except where, upon the request of a priority purchaser, the 
     Secretary determines that a greater amount is necessary and 
     appropriate to preserve low-income housing: Provided further, 
     That section 241(f) of the National Housing Act is repealed 
     and insurance under such section shall not be offered as an 
     incentive under LIHPRHA and ELIHPA: Provided further, That up 
     to $10,000,000 of the amount of $350,000,000 made available 
     by a preceding proviso in this paragraph may be used at the 
     discretion of the Secretary to reimburse owners of eligible 
     properties for which plans of action were submitted prior to 
     the effective date of this Act, but were not executed for 
     lack of available funds, with such reimbursement available 
     only for documented costs directly applicable to the 
     preparation of the plan of action as determined by the 
     Secretary, and shall be made available on terms and 
     conditions to be established by the Secretary: Provided 
     further, That, notwithstanding any other provision of law, a 
     priority purchaser may utilize assistance under the HOME 
     Investment Partnerships Act or the Low Income Housing Tax 
     Credit; Provided further, That projects with approved plans 
     of action which exceed the limitations on eligibility for 
     funding imposed by its Act may submit revised plans of action 
     which conform to these limitations by March 1, 1997 and 
     retain the priority for funding otherwise applicable from the 
     original date of approval of their plan of action, subject to 
     securing any additional necessary funding commitments by 
     August 1, 1997.


          revitalization of severely distressed public housing

       For grants to public housing agencies for assisting in the 
     demolition of obsolete public housing projects or portions 
     thereof, the revitalization (where appropriate) of sites 
     (including remaining public housing units) on which such 
     projects are located, replacement housing which will avoid or 
     lessen concentrations of very low-income families, and 
     tenant-based assistance in accordance with section 8 of the 
     United States Housing Act of 1937; and for providing 
     replacement housing and assisting tenants to be displaced by 
     the demolition, $550,000,000, to remain available until 
     expended, of which the Secretary may use up to $2,500,000 for 
     technical assistance, to be provided directly or indirectly 
     by grants, contracts or cooperative agreements, including 
     training and cost of necessary travel for participants in 
     such training, by or to officials and employees of the 
     Department and of public housing agencies and to residents: 
     Provided, That no funds appropriated in this title shall be 
     used for any purpose that is not provided for herein, in the 
     Housing Act of 1937, in the Appropriations Acts for Veterans 
     Affairs, Housing and Urban Development, and Independent 
     Agencies, for the fiscal years 1993, 1994, and 1995, and the 
     Omnibus Consolidated Rescissions and Appropriations Act of 
     1996: Provided further, That none of such funds shall be used 
     directly or indirectly by granting competitive advantage in 
     awards to settle litigation or pay judgments, unless 
     expressly permitted herein: Provided further, That, 
     notwithstanding any other provision of law, the funds made 
     available to the Housing Authority of New Orleans under HOPE 
     VI for purposes of Desire Homes, shall not be obligated or 
     expended for on-site construction until an independent third 
     party has determined whether the site is appropriate.


 drug elimination grants for low-income housing (including transfer of 
                                 funds)

       For grants to public and Indian housing agencies for use in 
     eliminating crime in public housing projects authorized by 42 
     U.S.C. 11901-11908, for grants for federally assisted low-
     income housing authorized by 42 U.S.C. 11909, and for drug 
     information clearinghouse services authorized by 42 U.S.C. 
     11921-11925, $290,000,000, to remain available until 
     expended, $10,000,000 of which shall be for grants, technical 
     assistance, contracts and other assistance training, program 
     assessment, and execution for or on behalf of public housing 
     agencies and resident organizations (including the cost of 
     necessary travel for participants in such training), 
     $5,000,000 of which shall be used in connection with efforts 
     to combat violent crime in public and assisted housing under 
     the Operation Safe Home program administered by the Inspector 
     General of the Department of Housing and Urban Development, 
     and $5,000,000 of which shall be provided to the Office of 
     Inspector General for Operation Safe Home: Provided further, 
     That the term ``drug-related crime'', as defined in 42 U.S.C. 
     11905(2), shall also include other types of crime as 
     determined by the Secretary: Provided further, That 
     notwithstanding section 5130(c) of the Anti-Drug Abuse Act of 
     1988 (42 U.S.C. 11909(c)), the Secretary may determine not to 
     use any such funds to provide public housing youth sports 
     grants.
       And the Senate agree to the same.
       Amendment numbered 16:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 16, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $67,000,000; and the Senate agree to the same.
       Amendment numbered 18:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 18, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment, insert 
     the following:
       Of the Amount provided under this heading, the Secretary of 
     Housing and Urban Development may use up to $60,000,000 for 
     grants to public housing agencies (including Indian housing 
     authorities), nonprofit corporations, and other appropriate 
     entities for a supportive service program to assist residents 
     of public and assisted housing, former residents of such 
     housing receiving tenant-based assistance under section 8 of 
     such Act (42 U.S.C. 1437f), and other low-income families and 
     individuals to become self-sufficient: Provided, That the 
     program shall provide supportive services, principally for 
     the benefit of public housing residents, to the elderly and 
     the disabled, and to families with children where the head of 
     household would benefit for the receipt of supportive 
     services and in working, seeking work, or in preparing for 
     work by participating in job training or educational 
     programs: Provided further, That the supportive services may 
     include congregate services for the elderly and disabled, 
     service coordinators, and coordinated educational, training, 
     and other supportive services, including academic skills 
     training, job search assistance, assistance related to 
     retaining employment, vocational and entrepreneurship 
     development and support programs, transportation, and child 
     care: Provided further, That the Secretary shall require 
     applications to demonstrate firm commitments of funding or 
     services from other sources: Provided further, That the 
     Secretary shall select public and Indian housing agencies to 
     receive assistance under this head on a competitive basis, 
     taking into account the quality of the proposed program 
     (including any innovative approaches, the extent of the 
     proposed coordination of supportive services, the extent of 
     commitments of funding or services from other sources, the 
     extent to which the proposed program includes reasonably 
     achievable, quantifiable goals for measuring performance 
     under the program over a three-year period, the extent of 
     success an agency has had in carrying out other comparable 
     initiatives, and other appropriate criteria established by 
     the Secretary): Provided further, That from the foregoing 
     $60,000,000, up to $5,000,000 shall be available for the 
     Tenant Opportunity Program, and up to $5,000,000 shall be 
     available for the Moving to Work Demonstration for public 
     housing families.
       And the Senate agree to the same.
       Amendment numbered 20:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 20, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $30,000,000; and the Senate agree to the same.
       Amendment numbered 29:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 29, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert the following: $976,840,000, of which 
     $15,000,000 may be used for additional retraining, 
     relocation, permanent change of station, and other activities 
     related to downsizing only upon submission of a detailed and 
     specific, multi-year downsizing plan to the Committee on 
     Appropriations of the House of Representatives and the 
     Senate, and; and the Senate agree to the same.
       Amendment numbered 33:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 33, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $15,500,000; and the Senate agree to the same.
       Amendment numbered 34:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 34, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert the following:
       Sec. 201. Extenders.--(a) Public Housing Funding 
     Flexibility.--Section 201(a)(2) of the Departments of 
     Veterans Affairs and Housing and Urban Development, and 
     Independent Agencies Appropriations Act, 1996 is amended by 
     striking ``1996'' and inserting ``1997''.
       (b) One-for-One Replacement of Public and Indian Housing.--
     Section 1002(d) of Public Law 104-19 is amended by striking 
     ``before September 30, 1996'' and inserting ``on or before 
     September 30, 1997''.
       (c) Public and Assisted Housing Rents, Income Adjustments, 
     and Preferences.--(1)(A) Section 402(a) of The Balanced 
     Budget Downpayment Act, I is amended--
       (i) by striking ``effective for fiscal year 1996 and no 
     later than October 30, 1995'' and inserting ``and subsection 
     (f) of this section, effective for fiscal year 1997'';
       (ii) in paragraphs (1), (2), and (4), by striking ``not 
     less than $25, and may require a minimum monthly rent of''; 
     and
       (iii) in paragraph (3), by striking ``not less than $25 for 
     the unit, and may require a minimum monthly rent of''.
       (B) Section 230 of Public Law 104-134 is hereby repealed.
       (2) Section 402(f) of The Balanced Budget Downpayment Act, 
     I is amended by striking ``fiscal year 1996'' and inserting 
     ``fiscal years 1996 and 1997''.
       (d) Applicability to IHAS.--In accordance with section 
     201(b)(2) of the United States Housing Act of 1937, the 
     amendments made by subsections (a), (b), and (c) shall apply 
     to public housing developed or operated pursuant to a 
     contract between the Secretary of Housing and Urban 
     Development and an Indian housing authority.

[[Page H10736]]

       (e) Streamlining Section 8 Tenant-Based Assistance.--
     Section 203(d) of the Departments of Veterans Affairs and 
     Housing and Urban Development, and Independent Agencies 
     Appropriations Act, 1996 is amended by striking ``fiscal year 
     1996'' and inserting ``fiscal years 1996 and 1997''.
       (f) Section 8 Fair Market Rentals and Delay in 
     Reissuance.--(1) The first sentence of section 403(a) of the 
     Balanced Budget Downpayment Act, I, is amended by striking 
     ``1996'' and inserting ``1997''.
       (2) Section 403(c) of such Act is amended--
       (A) by striking ``fiscal year 1996'' and inserting ``fiscal 
     years 1996 and 1997''; and
       (B) by inserting before the semicolon the following: ``for 
     assistance made available during fiscal year 1996 and October 
     1, 1997 for assistance made available during fiscal year 
     1997''.
       (g) Section 8 Rent Adjustments.--Section 8(c)(2)(A) of the 
     United States Housing Act of 1937 is amended--
       (1) in the third sentence by inserting ``, fiscal year 1996 
     prior to April 26, 1996, and fiscal year 1997'' after 
     ``1995'';
       (2) in the fourth sentence, by striking ``For'' and 
     inserting ``Except for assistance under the certificate 
     program, for'';
       (3) after the fourth sentence, by inserting the following 
     new sentence: ``In the case of assistance under the 
     certificate program, 0.01 shall be subtracted from the amount 
     of the annual adjustment factor (except that the factor shall 
     not be reduced to less than 1.0), and the adjusted rent shall 
     not exceed the rent for a comparable unassisted unit of 
     similar quality, type, and age in the market area.''; and
       (4) in the last sentence, by--
       (A) striking ``sentence'' and inserting ``two sentences''; 
     and
       (B) inserting ``, fiscal year 1996 prior to April 26, 1996, 
     and fiscal year 1997'' after ``1995''.
       And the Senate agree to the same.
       Amendment numbered 35:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 35, and agree to the same 
     with an amendment, as follows:
       At the end of the matter proposed by said amendment, insert 
     the following: Any grant or assistance made under this 
     section shall be made in accordance with section 102 of the 
     Department of Housing and Urban Development Reform Act of 
     1989 on a competitive basis.
       And the Senate agree to the same.
       Amendment numbered 40:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 40, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment, insert 
     the following:
       Sec. 210. (a) Financing Adjustment Factors.--Fifty per 
     centum of the amounts of budget authority, or in lieu thereof 
     50 per centum of the cash amounts associated with such budget 
     authority, that are recaptured from projects described in 
     section 1012(a) of the Stewart B. McKinney Homeless 
     Assistance Amendments Act of 1988 (Public Law 100-628, 102 
     Stat. 3224, 3268) shall be rescinded, or in the case of cash, 
     shall be remitted to the Treasury, and such amounts of budget 
     authority or cash recaptured and not rescinded or remitted to 
     the Treasury shall be used by State housing finance agencies 
     or local governments or local housing agencies with projects 
     approved by the Secretary of Housing and Urban Development 
     for which settlement occurred after January 1, 1992, in 
     accordance with such section.
       (b) In addition to amounts otherwise provided by this Act, 
     $464,442 is appropriated to the Department of Housing and 
     Urban Development for payment to the Utah Housing Finance 
     Agency, in lieu of amounts lost to such agency in bond 
     refinancings during 1994, for its use in accordance with 
     subsection (a).
       And the Senate agree to the same.
       Amendment numbered 41:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 41, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment, insert 
     the following:

     SEC. 211. SECTION 8 CONTRACT RENEWAL AUTHORITY.

       (a) Definitions.--For purposes of this section--
       (1) the term ``expiring contract'' means a contract for 
     project-based assistance under section 8 of the United States 
     Housing Act of 1937 that expires during fiscal year 1997;
       (2) the term ``family'' has the same meaning as in section 
     3(b) of the United States Housing Act of 1937;
       (3) the term ``multifamily housing project'' means a 
     property consisting of more than 4 dwelling units that is 
     covered in whole or in part by a contract for project-based 
     assistance under section 8 of the United States Housing Act 
     of 1937;
       (4) the term ``owner'' has the same meaning as in section 
     8(f) of the United States Housing Act of 1937;
       (5) the term ``project-based assistance'' means rental 
     assistance under section 8 of the United States Housing Act 
     of 1937 that is attached to a multifamily housing project;
       (6) the term ``public agency'' means a State housing 
     finance agency, a local housing agency, or other agency with 
     a public purpose and status;
       (7) the term ``Secretary'' means the Secretary of Housing 
     and Urban Development; and
       (8) the term ``tenant-based assistance'' has the same 
     meaning as in section 8(f) of the United States Housing Act 
     of 1937.
       (b) Section 8 Contract Renewal Authority.--
       (1) In general.--Notwithstanding section 405(a) of the 
     Balanced Budget Downpayment Act, I, upon the request of the 
     owner of a multifamily housing project that is covered by an 
     expiring contract, the Secretary shall use amounts made 
     available for the renewal of assistance under section 8 of 
     the United States Housing Act of 1937 to renew the expiring 
     contract as project-based assistance for a period of not more 
     than 1 year, at rent levels that are equal to those under the 
     expiring contract as of the date of which the contract 
     expires, provided that those rent levels do not exceed 120 
     percent of the fair market rent for the market area in which 
     the project is located. For a FHA-insured multifamily housing 
     project with an expiring contract at rent levels that exceed 
     120 percent of the fair market rent for the market area, the 
     Secretary shall provide, at the request of the owner, section 
     8 project-based assistance, for a period of not more than 1 
     year, at rent levels that do not exceed 120 percent of the 
     fair market rent.
       (2) Exemption for state and local housing agency 
     projects.--Notwithstanding paragraph (1), upon the expiration 
     of a contract with rent levels that exceed the percentage 
     described in that paragraph, if the Secretary determines that 
     the primary financing or mortgage insurance for the 
     multifamily housing project that is covered by that expiring 
     contract was provided by a public agency, the Secretary 
     shall, at the request of the owner and the public agency, 
     renew the expiring contract--
       (A) for a period of not more than 1 year; and
       (B) at rent levels that are equal to those under the 
     expiring contract as of the date on which the contract 
     expires.
       (3) Section 202, Section 811, and Section 515 Projects. 
     Notwithstanding paragraph (1), for section 202 projects, 
     section 811 projects and section 515 projects, upon the 
     expiration of a section 8 contract, the Secretary shall, at 
     the request of the owner, renew the expiring contract--
       (A) for a period of not more than 1 year; and
       (B) at rent levels that are equal to those under the 
     expiring contract as of the date on which the contract 
     expires.
       (4) Other contracts.--
       (A) Participation in demonstration.--For a contract 
     covering an FHA-insured multifamily housing project that 
     expires during fiscal year 1997 with rent levels that exceed 
     the percentage described in paragraph (1) and after notice to 
     the tenants, the Secretary shall, at the request of the owner 
     of the project and after notice to the tenants, include that 
     multifamily housing project in the demonstration program 
     under section 212 of this Act. The Secretary shall ensure 
     that a multifamily housing project with an expiring contract 
     in fiscal year 1997 shall be allowed to be included in the 
     demonstration.
       (B) Effect of material adverse actions or omissions.--
     Notwithstanding paragraph (1) or any other provision of law, 
     the Secretary shall not renew an expiring contract if the 
     Secretary determines that the owner of the multifamily 
     housing project has engaged in material adverse financial or 
     managerial actions or omissions with regard to the project 
     (or with regard to other similar projects if the Secretary 
     determines that such actions or omissions constitute a 
     pattern of mismanagement that would warrant suspension or 
     debarment by the Secretary).
       (C) Transfer of property.--For properties disqualified from 
     the demonstration program because of actions by an owner or 
     purchaser in accordance with subparagraph (B), the Secretary 
     shall establish procedures to facilitate the voluntary sale 
     or transfer of the property, with a preference for tenant 
     organizations and tenant-endorsed community-based nonprofit 
     and public agency purchasers meeting such reasonable 
     qualifications as may be established by the Secretary. The 
     Secretary may include the transfer of section 8 project-based 
     assistance.
       (5) Tenant protections.--Any family residing in an assisted 
     unit in a multifamily housing project that is covered by an 
     expiring contract that is not renewed, shall be offered 
     tenant-based assistance before the date on which the contract 
     expires or is not renewed.

     SEC. 212. FHA MULTIFAMILY DEMONSTRATION AUTHORITY.

       (a) In General.--
       (1) Repeal.--
       (A) In general.--Section 210 of the Departments of Veterans 
     Affairs and Housing and Urban Development and Independent 
     Agencies Appropriations Act, 1996 (110 Stat. 1321) is 
     repealed.
       (B) Exception.--Notwithstanding the repeal under 
     subparagraph (A), amounts made available under section 210(f) 
     the Departments of Veterans Affairs and Housing and Urban 
     Development and Independent Agencies Appropriations Act, 1996 
     shall remain available for the demonstration program under 
     this section through the end of fiscal year 1997.
       (2) Savings provisions.--Nothing in this section shall be 
     construed to affect any commitment entered into before the 
     date of enactment of this Act under the demonstration program 
     under section 210 of the Departments of Veterans Affairs and 
     Housing and Urban Development and Independent Agencies 
     Appropriations Act, 1996.
       (3) Definitions.--For purposes of this section--
       (A) the term ``demonstration program'' means the program 
     established under subsection (b);
       (B) the term ``expiring contract'' means a contract for 
     project-based assistance under section 8 of the United States 
     Housing Act of 1937 that expires during fiscal year 1997;
       (C) the term ``family'' has the same meaning as in section 
     3(b) of the United States Housing Act of 1937;
       (D) the term ``multifamily housing project'' means a 
     property consisting of more than 4 dwelling units that is 
     covered in whole or in part by a contract for project-based 
     assistance;
       (E) the term ``owner'' has the same meaning as in section 
     8(f) of the United States Housing Act of 1937;
       (F) the term ``project-based assistance'' means rental 
     assistance under section 8 of the United

[[Page H10737]]

     States Housing Act of 1937 that is attached to a multifamily 
     housing project;
       (G) the term ``Secretary'' means the Secretary of Housing 
     and Urban Development; and
       (H) the term ``tenant-based assistance'' has the same 
     meaning as in section 8(f) of the United States Housing Act 
     of 1937.
       (b) Demonstration Authority.--
       (1) In general.--Subject to the funding limitation in 
     subsection (l), the Secretary shall administer a 
     demonstration program with respect to multifamily projects--
       (A) whose owners agree to participate;
       (B) with rents on units assisted under section 8 of the 
     United States Housing Act of 1937 that are, in the aggregate, 
     in excess of 120 percent of the fair market rent of the 
     market area in which the project is located; and
       (C) the mortgages of which are insured under the National 
     Housing Act.
       (2) Purpose.--The demonstration program shall be designed 
     to obtain as much information as is feasible on the economic 
     viability and rehabilitation needs of the multifamily housing 
     projects in the demonstration, to test various approaches for 
     restructuring mortgages to reduce the financial risk to the 
     FHA Insurance Fund while reducing the cost of section 8 
     subsidies, and to test the feasibility and desirability of--
       (A) ensuring, to the maximum extent practicable, that the 
     debt service and operating expenses, including adequate 
     reserves, attributable to such multifamily projects can be 
     supported at the comparable market rent with or without 
     mortgage insurance under the National Housing Act and with or 
     without additional section 8 rental subsidies;
       (B) utilizing section 8 rental assistance, while taking 
     into account the capital needs of the projects and the need 
     for adequate rental assistance to support the low- and very 
     low-income families residing in such projects; and
       (C) preserving low-income rental housing affordability and 
     availability while reducing the long-term cost of section 8 
     rental assistance.
       (c) Goals.--
       (1) In general.--The Secretary shall carry out the 
     demonstration program in a manner that will protect the 
     financial interests of the Federal Government through debt 
     restructuring and subsidy reduction and, in the least costly 
     fashion, address the goals of--
       (A) maintaining existing affordable housing stock in a 
     decent, safe, and sanitary condition;
       (B) minimizing the involuntary displacement of tenants;
       (C) taking into account housing market conditions;
       (D) encouraging responsible ownership and management of 
     property;
       (E) minimizing any adverse income tax impact on property 
     owners; and
       (F) minimizing any adverse impacts on residential 
     neighborhoods and local communities.
       (2) Balance of competing goals.--In determining the manner 
     in which a mortgage is to be restructured or a subsidy 
     reduced under this subsection, the Secretary may balance 
     competing goals relating to individual projects in a manner 
     that will further the purposes of this section.
       (d) Participation Arrangements.--
       (1) In general.--In carrying out the demonstration program, 
     the Secretary may enter into participation arrangements with 
     designees, under which the Secretary may provide for the 
     assumption by designees (by delegation, by contract, or 
     otherwise) of some or all of the functions, obligations, 
     responsibilities and benefits of the Secretary.
       (2) Designees.--In entering into any arrangement under this 
     subsection, the Secretary shall select state housing finance 
     agencies, housing agencies or nonprofits (separately or in 
     conjunction with each other) to act as designees to the 
     extent such agencies are determined to be qualified by the 
     Secretary. In locations where there is no qualified state 
     housing finance agency, housing agency or nonprofit to act as 
     a designee, the Secretary may act as a designee. Each 
     participation arrangement entered into under this subsection 
     shall include a designee as the primary partner. Any 
     organization selected by the Secretary under this section 
     shall have a long-term record of service in providing low-
     income housing and meet standards of fiscal responsibility, 
     as determined by the Secretary.
       (3) Designee partnerships.--For purposes of any 
     participation arrangement under this subsection, designees 
     are encouraged to develop partnerships with each other, and 
     to contract or subcontract with other entities, including--
       (A) public housing agencies;
       (B) financial institutions;
       (C) mortgage servicers;
       (D) nonprofit and for-profit housing organizations;
       (E) the Federal National Mortgage Association;
       (F) the Federal Home Loan Mortgage Corporation;
       (G) Federal Home Loan Banks; and
       (H) other State or local mortgage insurance companies or 
     bank lending consortia.
       (e) Long-Term Affordability.--
       (1) In general.--After the renewal of a section 8 contract 
     pursuant to a restructuring under this section, the owner 
     shall accept each offer to renew the section 8 contract, for 
     a period of 20 years from the date of the renewal under the 
     demonstration, if the offer to renew is on terms and 
     conditions, as agreed to by Secretary or designee and the 
     owner under a restructuring.
       (2) Affordability requirements.--Except as otherwise 
     provided by the Secretary, in exchange for any mortgage 
     restructuring under this section, a project shall remain 
     affordable for a period of not less than 20 years. 
     Affordability requirements shall be determined in accordance 
     with guidelines established by the Secretary or designee. The 
     Secretary or designee may waive these requirements for good 
     cause.
       (f) Procedures.--
       (1) Notice of participation in demonstration.--Not later 
     than 45 days before the date of expiration of an expiring 
     contract (or such later date, as determined by the Secretary, 
     for good cause), the owner of the multifamily housing project 
     covered by that expiring contract shall notify the Secretary 
     or designee and the residents of the owner's intent to 
     participate in the demonstration program.
       (2) Demonstration contract.--Upon receipt of a notice under 
     paragraph (1), the owner and the Secretary or designee shall 
     enter into a demonstration contract, which shall provide for 
     initial section 8 project-based rents at the same rent levels 
     as those under the expiring contract or, if practical, the 
     budget-based rent to cover debt service, reasonable operating 
     expenses (including reasonable and appropriate services), and 
     a reasonable return to the owner, as determined solely by the 
     Secretary. The demonstration contract shall be for the 
     minimum term necessary for the rents and mortgages of the 
     multifamily housing project to be restructured under the 
     demonstration program, but shall not be for a period of time 
     to exceed 180 days, unless extended for good cause by the 
     Secretary.
       (g) Project-Based Section 8.--The Secretary shall renew all 
     expiring contracts under the demonstration as section 8 
     project-based contracts, for a period of time not to exceed 1 
     year, unless otherwise provided under subsection (h).
       (h) Demonstration Actions.--
       (1) Demonstration actions.--For purposes of carrying out 
     the demonstration program, and in order to ensure that 
     contract rights are not abrogated, subject to such third 
     party consents as are necessary (if any), including consent 
     by the Government National Mortgage Association if it owns a 
     mortgage insured by the Secretary, consent by an issuer under 
     the mortgage-backed securities program of the Association, 
     subject to the responsibilities of the issuer to its security 
     holders an the Association under such program, and consent by 
     parties to any contractual agreement which the Secretary 
     proposes to modify or discontinue, the Secretary or, except 
     with respect to subparagraph (B), designee, subject to the 
     funding limitation in subsection (l), shall take not less 
     than 1 of the actions specified in subparagraphs (G), (H), 
     and (I) and may take any of the following actions:
       (A) Removal of restrictions.--
       (i) In general.--Consistent with the purposes of this 
     section, subject to the agreement of the owner of the project 
     and after consultation with the tenants of the project, the 
     Secretary or designee may remove, relinquish, extinguish, 
     modify, or agree to the removal of any mortgage, regulatory 
     agreement, project-based assistance contract, use agreement, 
     or restriction that had been imposed or required by the 
     Secretary, including restrictions on distributions of income 
     which the Secretary or designee determines would interfere 
     with the ability of the project to operate without above-
     market rents.
       (ii) Accumulated residual receipts.--The Secretary or 
     designee may require an owner of a property assisted under 
     the section 8 new construction/substantial rehabilitation 
     program under the United States Housing Act of 1937 to apply 
     any accumulated residual receipts toward effecting the 
     purposes of this section.
       (B) Reinsurance.--With respect to not more than 5,000 units 
     within the demonstration during fiscal year 1997, the 
     Secretary may enter into contracts to purchase reinsurance, 
     or enter into participations or otherwise transfer economic 
     interest in contracts of insurance or in the premiums paid, 
     or due to be paid, on such insurance, on such terms and 
     conditions as the Secretary may determine. Any contract 
     entered into under this paragraph shall require that any 
     associated units be maintained as low-income units for the 
     life of the mortgages, unless waived by the Secretary for 
     good cause.
       (C) Participation by third parties.--The Secretary or 
     designee may enter into such agreement, provide such 
     concessions, incur such costs, make such grants (including 
     grants to cover all or a portion of the rehabilitation costs 
     for a project) and other payments, and provide other valuable 
     consideration as may reasonably be necessary for owners, 
     lenders, services, third parties, and other entities to 
     participate in the demonstration program. The Secretary may 
     establish performance incentives for designees.
       (D) Section 8 administrative fees.--Notwithstanding any 
     other provision of law, the Secretary may make fees available 
     from the section 8 contract renewal appropriation to a 
     designee for contract administration under section 8 of the 
     United States Housing Act of 1937 for purposes of any 
     contract restructured or renewed under the demonstration 
     program.
       (E) Full or partial payment of claim.--Notwithstanding any 
     other provision of law, the Secretary may make a full payment 
     of claim or partial payment of claim prior to default.
       (F) Credit enhancement.--
       (i) In general.--The Secretary or designee may provide FHA 
     multifamily mortgage insurance, reinsurance, or other credit 
     enhancement alternatives, including retaining the existing 
     FHA mortgage insurance on a restructured first mortgage at 
     market value or using the multifamily risk-sharing mortgage 
     programs, as provided under section 542 of the Housing and 
     Community Development Act of 1992. Any limitations on the 
     number of units available for mortgage insurance under 
     section 542 shall not apply to insurance issued for purposes 
     of the demonstration program.
       (ii) Maximum percentage.--During fiscal year 1997, not more 
     than 25 percent of the units in multifamily housing projects 
     with expiring contracts in the demonstration, in the 
     aggregate, may be restructured without FHA insurance, unless 
     otherwise agreed to by the owner of a project.
       (iii) Credit subsidy.--Any credit subsidy costs of 
     providing mortgage insurance shall be

[[Page H10738]]

     paid from amounts made available under subsection (l).
       (G) Mortgage restructuring.--
       (i) In general.--The Secretary or designee may restructure 
     mortgages to provide a restructured first mortgage to cover 
     debt service and operating expenses (including a reasonable 
     rate of return to the owner) at the market rent, and a second 
     mortgage equal to the difference between the restructured 
     first mortgage and the mortgage balance of the eligible 
     multifamily housing project at the time of restructuring.
       (ii) Credit subsidy.--Any credit subsidy costs of providing 
     a second mortgage shall be paid from amounts made available 
     under subsection (l).
       (H) Debt forgiveness.--The Secretary or designee, for good 
     cause and at the request of the owner of a multifamily 
     housing project, may forgive at the time of the restructuring 
     of a mortgage any portion of a debt on the project that 
     exceeds the market value of the project.
       (I) Budget-based rents.--The Secretary or designee may 
     renew an expiring contract, including a contract for a 
     project in which operating costs exceed comparable market 
     rents, for a period of not more than 1 year, at a budget-
     based rent that covers debt service, reasonable operating 
     expenses (including all reasonable and appropriate services), 
     and a reasonable rate of return to the owner, as determined 
     solely by the Secretary, provided that the contract does not 
     exceed the rent levels under the expiring contract. The 
     Secretary may establish a preference under the demonstration 
     program for budget-based rents for unique housing projects, 
     such as projects designated for occupancy by elderly families 
     and projects in rural areas.
       (J) Section 8 tenant-based assistance.--For not more than 
     10 percent of units in multifamily housing projects that have 
     had their mortgages restructured in any fiscal year under the 
     demonstration, the Secretary or designee may provide, with 
     the agreement of an owner and in consultation with the 
     tenants of the housing, section 8 tenant-based assistance for 
     some or all of the assisted units in a multifamily housing 
     project in lieu of section 8 project-based assistance. 
     Section 8 tenant-based assistance may only be provided where 
     the Secretary determines and certifies that there is adequate 
     available and affordable housing within the local area and 
     that tenants will be able to use the section 8 tenant-based 
     assistance successfully.
       (2) Offer and acceptance.--Notwithstanding any other 
     provision of law, an owner of a project in the demonstration 
     must accept any reasonable offer made by the Secretary or a 
     designee under this subsection. An owner may appeal the 
     reasonableness of any offer to the Secretary and the 
     Secretary shall respond within 30 days of the date of appeal 
     with a final offer. If the final offer is not acceptable, the 
     owner may opt out of the program.
       (i) Community and Tenant Input.--In carrying out this 
     section, the Secretary shall develop procedures to provide 
     appropriate and timely notice, including an opportunity for 
     comment and timely access to all relevant information, to 
     officials of the unit of general local government affected, 
     the community in which the project is situated, and the 
     tenants of the project.
       (j) Transfer of Property.--The Secretary shall establish 
     procedures to facilitate the voluntary sale or transfer of 
     multifamily housing projects under the demonstration to 
     tenant organizations and tenant-endorsed community-based 
     nonprofit and public agency purchasers meeting such 
     reasonable qualifications as may be established by the 
     Secretary.
       (k) Limitation on Demonstration Authority.--The Secretary 
     shall carry out the demonstration program with respect to 
     mortgages not to exceed 50,000 units.
       (l) Funding.--In addition to the $30,000,000 made available 
     under section 210 of the Departments of Veterans Affairs and 
     Housing and Urban Development and Independent Agencies 
     Appropriations Act, 1996 (110 Stat. 1321), for the costs 
     (including any credit subsidy costs associated with providing 
     direct loans or mortgage insurance) of modifying and 
     restructuring loans held or guaranteed by the Federal Housing 
     Administration, as authorized under this section, $10,000,000 
     is hereby appropriated, to remain available until September 
     30, 1998.
       (m) Report to Congress.--
       (1) In general.--
       (A) Quarterly reports.--Not less than every 3 months, the 
     Secretary shall submit to the Congress a report describing 
     and assessing the status of the projects in the demonstration 
     program.
       (B) Final report.--Not later than 6 months after the end of 
     the demonstration program, the Secretary shall submit to the 
     Congress a final report on the demonstration program.
       (2) Contents.--Each report submitted under paragraph (1)(A) 
     shall include a description of--
       (A) each restructuring proposal submitted by an owner of a 
     multifamily housing project, including a description of the 
     physical, financial, tenancy, and market characteristics of 
     the project;
       (B) the Secretary's evaluation and reasons for each 
     multifamily housing project selected or rejected for 
     participation in the demonstration program;
       (C) the costs to the FHA General Insurance and Special Risk 
     Insurance funds;
       (D) the subsidy costs provided before and after 
     restructuring;
       (E) the actions undertaken in the demonstration program, 
     including the third party arrangements made; and
       (F) the demonstration program's impact on the owners of the 
     projects, including any tax consequences.
       (3) Contents of final report.--The report submitted under 
     paragraph (1)(B) shall include--
       (A) the required contents under paragraph (2); and
       (B) any findings and recommendations for legislative 
     action.
       And the Senate agree to the same.
       Amendment numbered 43:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 43, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment, insert 
     the following:

     SEC. 214. USES OF CERTAIN ASSISTED HOUSING AMOUNTS.

       (a) Transfer Authority.--The Secretary may transfer 
     recaptured section 8 amounts from the Annual Contributions 
     for Assisted Housing account under Public Law 104-134 
     (approved April 26, 1996; 110 Stat. 1321, 1321-265) and prior 
     laws to the accounts and for the purposes set forth in 
     subsection (b). The amounts transferred under this section 
     shall be made available for use as prescribed under this 
     section notwithstanding section 8(bb) of the United States 
     Housing Act of 1937.
       (b) Receiving Accounts.--
       (1) Prevention of resident displacement.--The Secretary may 
     transfer to the Prevention of Resident Displacement account 
     an amount up to $50,000,000, in addition to amounts in such 
     account, that may be used to renew, under existing terms and 
     conditions, existing project-based section 8 contracts in 
     effect before a Plan of Action was approved, so that these 
     contracts expire 5 years from the date on which funds were 
     obligated for the Plan of Action approved under the Low 
     Income Housing Preservation and Resident Homeownership Act of 
     1990 or the Emergency Low-Income Housing Preservation Act of 
     1987. The Secretary shall transfer all amounts that the 
     Secretary determines to be necessary for fiscal year 1997 for 
     the purposes of this paragraph before transferring any 
     amounts under any other paragraph in this subsection.
       (2) HOPWA.--The Secretary may transfer to the Housing 
     Opportunities For Persons With AIDS account up to 
     $25,000,000, for use in addition to amounts appropriated in 
     such account.
       And the Senate agree to the same.
       Amendment numbered 47:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 47, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment, insert 
     the following:

     SEC. 218. ACCOUNT TRANSITION.

       The amounts of obligated balances in appropriations 
     accounts, as set forth in title II of the Departments of 
     Veterans Affairs and Housing and Urban Development, and 
     Independent Agencies Appropriations Act, 1996 and prior Acts 
     that are recaptured hereafter, to the extent not governed by 
     the specific language in an account or provision in this Act, 
     shall be held in reserve subject to reprogramming, 
     notwithstanding any other provision of law.

     SEC. 219. TREATMENT OF CERTAIN PROPERTIES.

       Notwithstanding any other provision of law, rehabilitation 
     activities undertaken in projects using the Low-Income 
     Housing Tax Credit allocated to developments in the City of 
     New Brunswick, New Jersey, in 1991, are deemed to have met 
     the requirements for rehabilitation in accordance with clause 
     (ii) of the third sentence of section 8(d)(2)(A) of the 
     United States Housing Act of 1937, as in effect before the 
     date of the enactment of this Act.

     SEC. 220. AMENDMENT RELATING TO COMMUNITY DEVELOPMENT 
                   ASSISTANCE.

       Section 105(a) of the Housing and Community Development Act 
     of 1974 (42 U.S.C. 5305(a)(8)) is amended by striking 
     ``through 1997'' and inserting ``through 1998''.

     SEC. 221. SECTION 236 PROGRAM AMENDMENTS.

       (a) Section 236(f)(1) of the National Housing Act (12 
     U.S.C. 1715z-1), as amended by section 405(d)(1) of the 
     Balanced Budget Downpayment Act, I, and by section 228(a) of 
     The Balanced Budget Downpayment Act, II, is amended--
       (1) in the second sentence, by striking ``the lower of 
     (i)'';
       (2) in the second sentence, by striking ``or (ii) the fair 
     market rental established under section 8(c) of the United 
     States Housing Act of 1937 for the market area in which the 
     housing is located, or (iii) the actual rent (as determined 
     by the Secretary) paid for a comparable unit in comparable 
     unassisted housing in the market area in which the housing 
     assisted under this section is located, ''; and
       (3) by inserting after the second sentence the following:
       ``However, in the case of a project which contains more 
     than 5,000 units, is subject to an interest reduction 
     payments contract, and is financed under a State or local 
     program, the Secretary may reduce the rental charge ceiling, 
     but in no case shall the rent be below basic rent. For plans 
     of action approved for Capital Grants under the Low-Income 
     Housing Preservation and Resident Homeownership Act of 1990 
     (LIHPRHA) or the Emergency Low Income Housing Preservation 
     Act of 1987 (ELIHPA), the rental charge for each dwelling 
     unit shall be at the basic rental charge or such greater 
     amount, not exceeding the lower of (i) the fair market rental 
     charge determined pursuant to this paragraph, or (ii) the 
     actual rent paid for a comparable unit in comparable 
     unassisted housing in the market area in which the housing 
     assisted under this section is located, as represents 30 
     percent of the tenant's adjusted income, but in no case shall 
     the rent be below basic rent.''.
       (b) Section 236(b) of the National Housing Act is amended 
     by adding the following new paragraph at the end:
       ``(7) The Secretary shall determine whether and under what 
     conditions the provisions of this subsection shall apply to 
     mortgages sold by the Secretary on a negotiated basis.''.

[[Page H10739]]

       (c) Section 236(g) of the National Housing Act is amended 
     to read as follows:
       ``(g) The project owner shall, as required by the 
     Secretary, accumulate, safeguard, and periodically pay the 
     Secretary or such other entity as determined by the Secretary 
     and upon such terms and conditions as the Secretary deems 
     appropriate, all rental charges collected on a unit-by-unit 
     basis in excess of the basic rental charges. Unless otherwise 
     directed by the Secretary, such excess charges shall be 
     credited to a reserve fund to be used by the Secretary to 
     make additional assistance payments as provided in paragraph 
     (3) of subsection (f). However, a project owner with a 
     mortgage insured under this section may retain some or all of 
     such excess charges for project use if authorized by the 
     Secretary and upon such terms and conditions as established 
     by the Secretary.''.
       And, the matter under the heading ``Fair housing and equal 
     opportunity, fair housing activities'', on page 35, line 22, 
     through page 36, line 5 of the House engrossed bill is 
     amended to read as follows: For contracts, grants, and other 
     assistance, not otherwise provided for, as authorized by 
     title VIII of the Civil Rights Act of 1968, as amended by the 
     Fair Housing Amendments Act of 1988, and section 561 of the 
     Housing and Community Development Act of 1987, as amended, 
     $30,000,000, to remain available until September 30, 1998, of 
     which $15,000,000 shall be to carry out activities pursuant 
     to section 561. No funds made available under this heading 
     shall be used to lobby the executive or legislative branches 
     of the Federal Government in connection with a specific 
     contract, grant or loan.
       And the Senate agree to the same.
       Amendment numbered 57:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 57, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert: $542,000,000; and the Senate agree to the 
     same.
       Amendment numbered 58:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 58, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert: $1,710,000,000; and the Senate agree to 
     the same.
       Amendment numbered 59:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 59, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $87,220,000; and the Senate agree to the same.
       Amendment numbered 67:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 67, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $2,875,207,000; and the Senate agree to the same.
       Amendment numbered 68:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 68, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $1,900,000,000; and the Senate agree to the same.
       Amendment numbered 70:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 70, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken by said amendment, amended to 
     read as follows: $136,000,000 for making grants for the 
     construction of wastewater and water treatment facilities and 
     the development of groundwater in accordance with the terms 
     and conditions specified for such grants in the conference 
     report and joint explanatory statement of the committee of 
     conference accompanying this Act (H.R. 3666); ; and the 
     Senate agree to the same.
       Amendment numbered 72:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 72, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $1,900,000,000; and the Senate agree to the same.
       Amendment numbered 80:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 80, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter proposed by said amendment, insert: : 
     Provided, That notwithstanding any other provision of this 
     paragraph, amounts appropriated herein shall be available for 
     obligation on October 1, 1996: Provided further, That the 
     Director of the Federal Emergency Management Agency (FEMA) 
     shall submit to the appropriate committees of Congress within 
     120 days of enactment of this Act a comprehensive report on 
     FEMA's plans to reduce disaster relief expenditures and 
     improve management controls on the Disaster Relief Fund; and 
     the Senate agree to the same.
       Amendment numbered 81:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 81, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $167,500,000; and the Senate agree to the same.
       Amendment numbered 83:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 83, and agree to the same 
     with an amendment, as follows:
       In Lieu of the sum proposed by said amendment, insert: 
     $206,701,000; and the Senate agree to the same.
       Amendment numbered 84:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 84, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter proposed by said amendment, insert: 
     The first sentence of section 1376(c) of the National Flood 
     Insurance Act of 1968, as amended (42 U.S.C. 4127(c)), is 
     amended by striking all after ``this subsection'' and 
     inserting ``such sums as may be necessary through September 
     30, 1997 for studies under this title.''.
       And the Senate agree to the same.
       Amendment numbered 89:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 89, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment, insert 
     the following: Upon the determination by the Administrator 
     that such action is necessary, the Administrator may, with 
     the approval of the Office of Management and Budget, transfer 
     not to exceed $177,000,000 of funds made available in this 
     Act to the National Aeronautics and Space Administration for 
     the International Space Station between ``Science, 
     aeronautics and technology'' and ``Human space flight'', to 
     be merged with and to be available for the same purposes, and 
     for the same time period, as the appropriation to which 
     transferred: Provided, That such authority to transfer may 
     not be used unless for higher priority items than those for 
     which originally appropriated: Provided further, That the 
     Administrator of the National Aeronautics and Space 
     Administration shall notify the Congress promptly of all 
     transfers made pursuant to this authority.
       And the Senate agree to the same.
       Amendment numbered 91:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 91, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $619,000,000; and the Senate agree to the same.
       Amendment numbered 95:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 95, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter proposed by said amendment, insert:
       Sec. 421. (a) The purpose of this section is to provide for 
     the special needs of certain children of Vietnam veterans who 
     were born with the birth defect spina bifida, possibly as the 
     result of the exposure of one or both parents to herbicides 
     during active service in the Republic of Vietnam during the 
     Vietnam era, through the provision of health care and 
     monetary benefits.
       (b)(1) Part II of title 38, United States Code, is amended 
     by inserting after chapter 17 the following new chapter:

 ``CHAPTER 18--BENEFITS FOR CHILDREN OF VIETNAM VETERANS WHO ARE BORN 
                           WITH SPINA BIFIDA

``Sec.
``1801. Definitions.
``1802. Spina bifida conditions covered.
``1803. Health care.
``1804. Vocational training and rehabilitation.
``1805. Monetary allowance.
``1806. Effective date of awards.

     ``Sec. 1801. Definitions

       ``For the purposes of this chapter--
       ``(1) The term `child', with respect to a Vietnam veteran, 
     means a natural child of the Vietnam veteran, regardless of 
     age or marital status, who was conceived after the date on 
     which the veteran first entered the Republic of Vietnam 
     during the Vietnam era.
       ``(2) The term `Vietnam veteran' means a veteran who 
     performed active military, naval, or air service in the 
     Republic of Vietnam during the Vietnam era.

     ``Sec. 1802. Spina bifida conditions covered

       ``This chapter applies with respect to all forms and 
     manifestations of spina bifida except spina bifida occulta.

     ``Sec. 1803. Health care

       ``(a) In accordance with regulations which the Secretary 
     shall prescribe, the Secretary shall provide a child of a 
     Vietnam veteran who is suffering from spina bifida with such 
     health care as the Secretary determines is needed by the 
     child for the spina bifida or any disability that is 
     associated with such condition.
       ``(b) The Secretary may provide health care under this 
     section directly or by contract or other arrangement with any 
     health care provider.
       ``(c) For the purposes of this section--
       ``(1) The term `health care'--
       ``(A) means home care, hospital care, nursing home care, 
     outpatient care, preventive care, habilitative care, case 
     management, and respite care; and
       ``(B) includes--
       ``(i) the training of appropriate members of a child's 
     family or household in the care of the child; and
       ``(ii) the provisions of such pharmaceuticals, supplies, 
     equipment, devices, appliances, assistive technology, direct 
     transportation costs to and from approved sources of health 
     care, and other materials as the Secretary determines 
     necessary.
       ``(2) The term `health care provider' includes specialized 
     spina bifida clinics, health care plans, insurers, 
     organizations, institutions, and any other entity or 
     individual who furnishes health care that the Secretary 
     determines authorized under this section.

[[Page H10740]]

       ``(3) The term `home care' means outpatient care, 
     habilitative and rehabilitative care, preventive health 
     services, and health-related services furnished to an 
     individual in the individual's home or other place of 
     residence.
       ``(4) The term `hospital care' means care and treatment for 
     a disability furnished to an individual who has been admitted 
     to a hospital as a patient.
       ``(5) The term `nursing home care' means care and treatment 
     for a disability furnished to an individual who has been 
     admitted to a nursing home as a resident.
       ``(6) The term `outpatient care' means care and treatment 
     of a disability, and preventive health services, furnished to 
     an individual other than hospital care or nursing home care.
       ``(7) The term `preventive care' means care and treatment 
     furnished to prevent disability or illness, including 
     periodic examinations, immunizations, patient health 
     education, and such other services as the Secretary 
     determines necessary to provide effective and economical 
     preventive health care.
       ``(8) The term `habilitative and rehabilitative care' means 
     such professional, counseling, and guidance services and 
     treatment programs (other than vocational training under 
     section 1804 of this title) as are necessary to develop, 
     maintain, or restore, to the maximum extent practicable, the 
     functioning of a disabled person.
       ``(9) The term `respite care' means care furnished on an 
     intermittent basis for a limited period to an individual who 
     resides primarily in a private residence when such care will 
     help the individual to continue residing in such private 
     residence.

     ``Sec. 1804. Vocational training and rehabilitation

       ``(a) Pursuant to such regulations as the Secretary may 
     prescribe, the Secretary may provide vocational training 
     under this section to a child of a Vietnam veteran who is 
     suffering from spina bifida if the Secretary determines that 
     the achievement of a vocational goal by such child is 
     reasonably feasible.
       ``(b) Any program of vocational training for a child under 
     this section shall be designed in consultation with the child 
     in order to meet the child's individual needs and shall be 
     set forth in an individualized written plan of vocational 
     rehabilitation.
       ``(c)(1) A vocational training program for a child under 
     this section--
       ``(A) shall consist of such vocationally oriented services 
     and assistance, including such placement and post-placement 
     services and personal and work adjustment training, as the 
     Secretary determines are necessary to enable the child to 
     prepare for and participate in vocational training or 
     employment; and
       ``(B) may include a program of education at an institution 
     of higher education if the Secretary determines that the 
     program of education is predominantly vocational in content.
       ``(2) A vocational training program under this subsection 
     may not include the provision of any loan or subsistence 
     allowance or any automobile adaptive equipment.
       ``(d)(1) Except as provided in paragraph (2) and subject to 
     subsection (e)(2), a vocational training program under this 
     section may not exceed 24 months.
       ``(2) The Secretary may grant an extension of a vocational 
     training program for a child under this section for up to 24 
     additional months if the Secretary determines that the 
     extension is necessary in order for the child to achieve a 
     vocational goal identified (before the end of the first 24 
     months of such program) in the written plan of vocational 
     rehabilitation formulated for the child pursuant to 
     subsection (b).
       ``(e)(1) A child who is pursuing a program of vocational 
     training under this section and is also eligible for 
     assistance under a program under chapter 35 of this title may 
     not receive assistance under both such programs concurrently. 
     The child shall elect (in such form and manner as the 
     Secretary may prescribe) the program under which the child is 
     to receive assistance.
       ``(2) The aggregate period for which a child may receive 
     assistance under this section and chapter 35 of this title 
     may not exceed 48 months (or the part-time equivalent 
     thereof).

     ``Sec. 1805. Monetary allowance

       ``(a) The Secretary shall pay a monthly allowance under 
     this chapter to any child of a Vietnam veteran for any 
     disability resulting from spina bifida suffered by such 
     child.
       ``(b)(1) The amount of the allowance paid to a child under 
     this section shall be based on the degree of disability 
     suffered by the child, as determined in accordance with such 
     schedule for rating disabilities resulting from spina bifida 
     as the Secretary may prescribe.
       ``(2) The Secretary shall, in prescribing the rating 
     schedule for the purposes of this section, establish three 
     levels of disability upon which the amount of the allowance 
     provided by this section shall be based.
       ``(3) The amounts of the allowance shall be $200 per month 
     for the lowest level of disability prescribed, $700 per month 
     for the intermediate level of disability prescribed, and 
     $1,200 per month for the highest level of disability 
     prescribed. Such amounts are subject to adjustment under 
     section 5312 of this title.
       ``(c) Notwithstanding any other provision of law, receipt 
     by a child of an allowance under this section shall not 
     impair, infringe, or otherwise affect the right of the child 
     to receive any other benefit to which the child may otherwise 
     be entitled under any law administered by the Secretary, nor 
     shall receipt of such an allowance impair, infringe, or 
     otherwise affect the right of any individual to receive any 
     benefit to which the individual is entitled under any law 
     administered by the Secretary that is based on the child's 
     relationship to the individual.
       ``(d) Notwithstanding any other provision of law, the 
     allowance paid to a child under this section shall not be 
     considered income or resources in determining eligibility for 
     or the amount of benefits under any Federal or federally 
     assisted program.

     ``Sec. 1806. Effective date of awards

       ``The effective date for an award of benefits under this 
     chapter shall be fixed in accordance with the facts found, 
     but shall not be earlier than the date of receipt of 
     application for the benefits.''.
       (2) The tables of chapters before part I and at the 
     beginning of part II of such title are each amended by 
     inserting after the item referring to chapter 17 the 
     following new item:

``18. Benefits for Children of Vietnam Veterans Who Are Born With 
  Spina Bifida..................................................1801''.

       (c) Section 5312 of title 38, United States Code, is 
     amended--
       (1) in subsection (a)--
       (A) by striking out ``and the rate of increased pension'' 
     and inserting in lieu thereof ``, the rate of increased 
     pension''; and
       (B) by inserting after ``on account of children,'' the 
     following: ``and each rate of monthly allowance paid under 
     section 1805 of this title,''; and
       (2) in subsection (c)(1), by striking out ``and 1542'' and 
     inserting in lieu thereof ``1542, and 1805''.
       (d) This section and the amendments made by this section 
     shall take effect on January 1, 1997.
       Sec. 422. (a) Section 1151 of title 38, United States Code, 
     is amended--
       (1) by striking out the first sentence and inserting in 
     lieu thereof the following:
       ``(a) Compensation under this chapter and dependency and 
     indemnity compensation under chapter 13 of this title shall 
     be awarded for a qualifying additional disability or a 
     qualifying death of a veteran in the same manner as if such 
     additional disability or death were service-connected. For 
     purposes of this section, a disability or death is a 
     qualifying additional disability or qualifying death if the 
     disability or death was not the result of the veteran's 
     willful misconduct and--
       ``(1) the disability or death was caused by hospital care, 
     medical or surgical treatment, or examination furnished the 
     veteran under any law administered by the Secretary, either 
     by a Department employee or in a Department facility as 
     defined in section 1701(3)(A) of this title, and the 
     proximate cause of the disability or death was--
       ``(A) carelessness, negligence, lack of proper skill, error 
     in judgment, or similar instance of fault on the part of the 
     Department in furnishing the hospital care, medical or 
     surgical treatment, or examination; or
       ``(B) an event not reasonably foreseeable; or
     ``(2) the disability or death was proximately caused by the 
     provision of training and rehabilitation services by the 
     Secretary (including by a service-provider used by the 
     Secretary for such purpose under section 3115 of this title) 
     as part of an approved rehabilitation program under chapter 
     31 of this title.''; and
       (2) in the second sentence--
       (A) by redesignating that sentence as subsection (b);
       (B) by striking out ``, aggravation,'' both places it 
     appears; and
       (C) by striking out ``sentence'' and substituting in lieu 
     thereof ``subsection''.
       (b)(1) The amendments made by subsection (a) shall take 
     effect on October 1, 1996.
       (2) Section 1151 of title 38, United States Code (as 
     amended by subsection (a)), shall govern all administrative 
     and judicial determinations of eligibility for benefits under 
     such section that are made with respect to claims filed on or 
     after the effective date set forth in paragraph (1), 
     including those based on original applications and 
     applications seeking to reopen, revise, reconsider, or 
     otherwise readjudicate on any basis claims for benefits under 
     such section 1151 or any provision of law that is a 
     predecessor of such section.
       (c) Notwithstanding subsection (b)(1), section 421(d), or 
     any other provision of this Act, section 421 and this section 
     shall not take effect until October 1, 1997, unless 
     legislation other than this Act is enacted to provide for a 
     earlier effective date.
       And the Senate agree to the same.
       Amendment numbered 102:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 102, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken by said amendment, amended to 
     read as follows:
       Sec. 427. The amount provided in title I for ``Veterans 
     Health Administration--Medical Care'' is hereby increased by 
     $5,000,000.
       And the Senate agree to the same.
       Amendment numbered 105:
       That the House recede from its disagreement to the 
     amendment of the Senate number 105, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert the following:
       Sec. 432. Calculation of Downpayment.--Section 203(b) of 
     the National Housing Act (12 U.S.C. 1709(b)) is amended by 
     adding at the end thereof the following new paragraph:
       ``(10) Alaska and Hawaii.--
       ``(A) In general.--Notwithstanding any other provision of 
     this subsection, with respect to a mortgage originated in the 
     State of Alaska or the State of Hawaii and endorsed for 
     insurance in fiscal year 1997, involve a principal obligation 
     not in excess of the sum of--
       ``(i) the amount of the mortgage insurance premium paid at 
     the time the mortgage is insured; and

[[Page H10741]]

       ``(ii)(I) in the case of a mortgage for a property with an 
     appraised value equal to or less than $50,000, 98.75 percent 
     of the appraised value of the property;
       ``(II) in the case of a mortgage for a property with an 
     appraised value in excess of $50,000 but not in excess of 
     $125,000, 97.65 percent of the appraised value of the 
     property.
       ``(III) in the case of a mortgage for a property with an 
     appraised value in excess of $125,000, 97.15 percent of the 
     appraised value of the property; or
       ``(IV) notwithstanding subclauses (II) and (III), in the 
     case of a mortgage for a property with an appraised value in 
     excess of $50,000 that is located in an area of the State for 
     which the average closing cost exceeds 2.10 percent of the 
     average, for the State, of the sale price of properties 
     located in the State for which mortgages have been executed, 
     97.75 percent of the appraised value of the property.
       ``(B) Average closing cost.--For purposes of this 
     paragraph, the term `average closing cost' means, with 
     respect to a State, the average, for mortgages executed for 
     properties that are located within the State, of the total 
     amounts (as determined by the Secretary) of initial service 
     charges, appraisal, inspection, and other fees (as the 
     Secretary shall approve) that are paid in connection with 
     such mortgages.''.
       Sec. 433. Delegation of Single Family Mortgage Insuring 
     Authority to Direct Endorsement Mortgagees.--Title II of the 
     National Housing Act (12 U.S.C. 1707 et seq.) is amended by 
     adding at the end the following new section:


  ``delegation of insuring authority to direct endorsement mortgagees

       ``Sec. 256. (a) Authority.--The Secretary may delegate, to 
     one or more mortgages approved by the Secretary under the 
     direct endorsement program, the authority of the Secretary 
     under this Act to insure mortgages involving property upon 
     which there is located a dwelling designed principally for 
     occupancy by 1 to 4 families.
       ``(b) Considerations.--In determining whether to delegate 
     authority to a mortgage under this section, the Secretary 
     shall consider the experience and performance of the mortgage 
     compared to the default rate of all insured mortgages in 
     comparable markets, and such other factors as the Secretary 
     determines appropriate to minimize risk of loss to the 
     insurance funds under this Act.
       ``(c) Enforcement of Insurance Requirements.--
       ``(1) In general.--If the Secretary determines that a 
     mortgage insured by a mortgagee pursuant to delegation of 
     authority under this section was not originated in accordance 
     with the requirements established by the Secretary, and the 
     Secretary pays an insurance claim with respect to the 
     mortgage within a reasonable period specified by the 
     Secretary, the Secretary may require the mortgagee approved 
     under this section to indemnify the Secretary for the loss.
       ``(2) Fraud or misrepresentation.--If fraud or 
     misrepresentation was involved in connection with the 
     origination, the Secretary may require the mortgagee approved 
     under this section to indemnify the Secretary for the loss 
     regardless of when an insurance claim is paid.
       ``(d) Termination of Mortgagee's Authority.--If a mortgagee 
     to which the Secretary has made a delegation under this 
     section violates the requirements and procedures established 
     by the Secretary or the Secretary determines that other good 
     cause exists, the Secretary may cancel a delegation of 
     authority under this section to the mortgagee by giving 
     notice to the mortgagee. Such a cancellation shall be 
     effective upon receipt of the notice by the mortgagee or at a 
     later date specified by the Secretary. A decision by the 
     Secretary to cancel a delegation shall be final and 
     conclusive and shall not be subject to judicial review.
       ``(e) Requirements and Procedures.--Before approving a 
     delegation under this section, the Secretary shall issue 
     regulations establishing appropriate requirements and 
     procedures, including requirements and procedures governing 
     the indemnification of the Secretary by the Mortgagee.''.
       And the Senate agree to the same.
       Amendment numbered 111:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 111, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment, insert 
     the following:
       Sec. 438. None of the funds appropriated or otherwise made 
     available to the National Aeronautics and Space 
     Administration by this Act, or any other Act enacted before 
     the date of enactment of this Act, may be used by the 
     Administrator of the National Aeronautics and Space 
     Administration to relocate aircraft of the National 
     Aeronautics and Space Administration based east of the 
     Mississippi River to the Dryden Flight Research Center in 
     California for the purpose of the consolidation of such 
     aircraft.
       And the Senate agree to the same.
       Amendment numbered 113:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 113, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment, insert 
     the following:
       Sec. 439. To promote and support management reorganization 
     of the National Aeronautics and Space Administration. 
     Subsection may be cited as the ``National Aeronautics and 
     Space Administration Federal Employment Reduction Assistance 
     Act of 1996.''


                       Subsection B. Definitions

       (1) For the purposes of this section--
       (a) the term ``Administrator'' means the Administrator of 
     the National Aeronautics and Space Administration; and
       (b) the term ``employee'' means an employee of the National 
     Aeronautics and Space Administration serving under an 
     appointment without time limitation, who has been currently 
     employed with NASA for a continuous period of at least 12 
     months, except that such term does not include--
       (1) a reemployed annuitant under subchapter III of chapter 
     83 or chapter 84 of title 5, United States Code, or another 
     retirement system for employees of the Government;
       (2) an employee who is in receipt of a specific notice of 
     involuntary separation for misconduct or unacceptable 
     performance;
       (3) an employee who, upon completing an additional period 
     of service as referred to in section 3(b)(2)(B)(ii) of the 
     Federal Workforce Restructuring Act of 1994 (Public Law 103-
     226; 108 Stat. 111), would qualify for a voluntary separation 
     incentive payment under section 3 of such Act; or
       (4) an employee who has previously received any voluntary 
     separation incentive payment by the Federal Government under 
     this Act or any other authority and has not repaid such 
     payment.


                Subsection C. Incentive Payment Program

       In order to avoid or minimize the need for involuntary 
     separations due to a reduction in force, installation 
     closure, reorganization, transfer of function, or other 
     similar action affecting the National Aeronautics and Space 
     Administration, the Administrator shall establish a program 
     under which separation pay, subject to the availability of 
     appropriated funds, may be offered to encourage eligible 
     employees to separate from service voluntarily (whether by 
     retirement or resignation).


                    Subsection D. Incentive Payments

       In order to receive a voluntary separation incentive 
     payment, an employee must separate voluntarily (whether by 
     retirement or resignation) during the period of time for 
     which the payment of incentives has been authorized for the 
     employee under the agency plan. Such separation payments--
       (1) shall be paid in a lump sum after the employee's 
     separation, and
       (2) shall be equal to the lesser of--
       (A) an amount equal to the amount the employee would be 
     entitled to receive under section 5595(c) of title 5, United 
     States Code, if the employee were entitled to payment under 
     such section; or
       (B) an amount that shall not exceed $25,000
       (3) shall not be a basis for payment, and shall not be 
     included in the computation, of any other type of Government 
     benefit;
       (4) shall not be taken into account for purposes of 
     determining the amount of any severance pay to which an 
     individual may be entitled under section 5595 of title 5, 
     United States Code, based on any other separation;
       (5) shall be considered payment for a voluntary separation; 
     and
       (6) shall be paid from the appropriations or funds 
     available for payment of the basic pay of the employee.


   Subsection E. Effect of Subsequent employment with the Government

       (1) An individual who has received a voluntary separation 
     incentive payment under this section and accepts any 
     employment with the Government of the United States within 
     five years after the date of the separation on which the 
     payment is based shall be required to repay, prior to the 
     individual's first day of employment, the entire amount of 
     the incentive payment to NASA.
       (2) If the employment under paragraph (1) above is with an 
     Executive agency (as defined by section 105 of title 5, 
     United States Code), the United States Postal Service, or the 
     Postal Rate Commission, the Director of the Office of 
     Personnel Management may, at the request of the head of the 
     agency, waive the repayment if the individual involved 
     possesses unique abilities and is the only qualified 
     applicant available for the position.
       (3) If the employment under paragraph (1) above is with an 
     entity in the legislative branch, the head of the entity or 
     the appointing official may waive the repayment if the 
     individual involved possesses unique abilities and is the 
     only qualified applicant available for the position.
       (4) If the employment under paragraph (1) above is with the 
     judicial branch, the Director of the Administrative Office of 
     the United States Courts may waive the repayment if the 
     individual involved possesses unique abilities and is the 
     only qualified applicant available for the position.
       (5) For the purpose of this section, the term 
     ``employment''--
       (a) includes employment of any length or under any type of 
     appointment, but does not include employment that is without 
     compensation; and
       (b) includes employment under a personal services contract.


        subsection f. effect of subsequent disability retirement

       An employee who has received an incentive payment is 
     ineligible to receive an annuity for reasons of disability 
     under applicable regulations, unless the incentive payment is 
     repaid.


  subsection g. additional agency contributions to the retirement fund

       (1) In addition to any other payments which it is required 
     to make under subchapter III of chapter 83 or chapter 84 of 
     title 5, United States Code, NASA shall remit to the Office 
     of Personnel Management for deposit in the Treasury of the 
     United States to the credit of the Civil Service Retirement 
     and Disability Fund an amount equal to 15 percent of the 
     final basic pay of each employee who is covered under 
     subchapter III of chapter 83 or chapter 84 of title 5 to whom 
     a voluntary separation incentive has been paid under this 
     Act.
       (2) For the purpose of this section, the term ``final basic 
     pay'', with respect to an employee,

[[Page H10742]]

     means the total amount of basic pay which would be payable 
     for a year of service by such employee, computed using the 
     employee's final rate of basic pay, and, if last serving on 
     other than a full time basis, with appropriate adjustment 
     therefor.


          subsection h. reduction of agency employment levels

       (1) Total full time equivalent employment in NASA shall be 
     reduced by one for each separation of an employee who 
     receives a voluntary separation incentive payment under this 
     Act. The reduction will be calculated by comparing the 
     agency's full time equivalent employment for the fiscal year 
     in which the voluntary separation payments are made with the 
     authorized full time equivalent employment for the prior 
     fiscal year.
       (2) The Office of Management and Budget shall monitor and 
     take appropriate action necessary to ensure that the 
     requirements of this section are met.
       (3) The President shall take appropriate action to ensure 
     that functions involving more than 10 full time equivalent 
     employees are not converted to contracts by reason of the 
     enactment of this section, except in cases in which a cost 
     comparison demonstrates such contracts would be to the 
     advantage of the Government.
       (4) The provisions of subsections (1) and (3) of this 
     section may be waived upon a determination by the President 
     that--
       (1) the existence of a state of war or other national 
     emergency so requires; or
       (2) the existence of an extraordinary emergency which 
     threatens life, health, safety, property, or the environment 
     so requires.


                         subsection i. reports

       No later than March 31 of each fiscal year, NASA shall 
     submit to the Office of Personnel Management, who will 
     subsequently report to the Committee on Governmental Affairs 
     of the Senate and the Committee on Government Reform and 
     Oversight of the House of Representatives a report which, 
     with respect to the preceding fiscal year, shall include--
       (1) the number of employees who received voluntary 
     separation incentives;
       (2) the average amount of such incentives; and,
       (3) the average grade or pay level of the employees who 
     received incentives.


                      subsection j. effective date

       (1) The provisions of this section shall take effect on the 
     date of enactment of this section.
       (2) No voluntary separation incentive under this section 
     may be paid based on the separation of an employee after 
     September 30, 2000.
       Sec. 440. (a) Subject to the concurrence of the 
     Administrator of the General Services Administration (GSA) 
     and notwithstanding section 707 of Public Law 103-433, the 
     Administrator of the National Aeronautics and Space 
     Administration may convey to the city of Downey, California, 
     all right, title, and interest of the United States in and to 
     a parcel of real property, including improvements thereon, 
     consisting of approximately 60 acres and known as Parcels 
     III, IV, V, and VI of the NASA Industrial Plant, Downey, 
     California.
       (b)(1) Delay in payment of consideration.--After the end of 
     the 20-year period beginning on the date on which the 
     conveyance under subsection (a) is completed, the City of 
     Downey shall pay to the United States an amount equal to fair 
     market value of the conveyed property as of the date of the 
     Federal conveyance.
       (2) Effect of reconveyance by the city.--If the City of 
     Downey reconveys all or any part of the conveyed property 
     during such 20-year period, the City shall pay to the United 
     States an amount equal to the fair market value of the 
     reconveyed property as of the time of the reconveyance, 
     excluding the value of any improvements made to the property 
     by the City.
       (3) Determination of fair market value.--The Administrator 
     of GSA shall determine fair market value in accordance with 
     Federal appraisal standards and procedures.
       (4) Treatment of leases.--The Administrator of GSA may 
     treat a lease of the property within such 20-year period as a 
     reconveyance if the Administrator determines that the lease 
     is being used to avoid application of paragraph (b)(2).
       (5) Deposit of proceeds.--The Administrator of GSA shall 
     deposit any proceeds received under this subsection in the 
     special account established pursuant to section 204(h)(2) of 
     the Federal Property and Administrative Services Act of 1949 
     (40 U.S.C. 485(h)(2)).
       (c) The exact acreage and legal description of the real 
     property to be conveyed under subsection (a) shall be 
     determined by a survey satisfactory to the Administrator of 
     GSA. The cost of the survey shall be borne by the City of 
     Downey, California.
       (d) The Administrator of GSA may require such additional 
     terms and conditions in connection with the conveyance under 
     subsection (a) as the Administrator of GSA considers 
     appropriate to protect the interests of the United States.
       (e) If the City at any time after the conveyance of the 
     property under subsection (a) notifies the Administrator of 
     GSA that the City no longer wishes to retain the property, it 
     may convey the property under the terms of subsection (b), 
     or, it may revert all right, title, and interest in and to 
     the property (including any facilities, equipment, or 
     fixtures conveyed, but excluding the value of any 
     improvements made to the property by the City) to the United 
     States, and the United States shall have the right of 
     immediate entry onto the property.
       And the Senate agree to the same.
       Amendment numbered 117:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 117, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter proposed by said amendment, insert:

     TITLE VI--NEWBORNS' AND MOTHERS' HEALTH PROTECTION ACT OF 1996

     SEC. 601. SHORT TITLE.

       This title may be cited as the ``Newborns' and Mothers' 
     Health Protection Act of 1996''.

     SEC. 602. FINDING.

       Congress finds that--
       (1) the length of post-delivery hospital stay should be 
     based on the unique characteristics of each mother and her 
     newborn child, taking into consideration the health of the 
     mother, the health and stability of the newborn, the ability 
     and confidence of the mother and the father to care for their 
     newborn, the adequacy of support systems at home, and the 
     access of the mother and her newborn to appropriate follow-up 
     health care; and
       (2) the timing of the discharge of a mother and her newborn 
     child from the hospital should be made by the attending 
     provider in consultation with the mother.

     SEC. 603. AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME 
                   SECURITY ACT OF 1974

       (a) In General.--Part 7 of subtitle B of title I of the 
     Employee Retirement Income Security Act of 1974 (added by 
     section 101(a) of the Health Insurance Port-ability and 
     Accountability Act of 1996) is amended--
       (1) by amending the heading of the part to read as follows:

              ``Part 7--Group Health Plan Requirements'';

       (2) by inserting after the part heading the following:

    ``Subpart A--Requirements Relating to Portability, Access, and 
                            Renewability'';

       (3) by redesignating sections 704 through 707 as sections 
     731 through 734, respectively;
       (4) by inserting before section 731 (as so redesignated) 
     the following new heading:

                   ``Subpart C--General Provisions'';

     and
       (5) by inserting after section 703 the following new 
     subpart:

                    ``Subpart B--Other Requirements

     ``SEC. 711. STANDARDS RELATING TO BENEFITS FOR MOTHERS AND 
                   NEWBORNS.

       ``(a) Requirements for Minimum Hospital Stay Following 
     Birth.--
       ``(1) In general.--A group health plan, and a health 
     insurance issuer offering group health insurance coverage, 
     may not--
       ``(A) except as provided in paragraph (2)--
       ``(i) restrict benefits for any hospital length of stay in 
     connection with childbirth for the mother or newborn child, 
     following a normal vaginal delivery, to less than 48 hours, 
     or
       ``(ii) restrict benefits for any hospital length of stay in 
     connection with childbirth for the mother or newborn child, 
     following a caesarean section, to less than 96 hours; or
       ``(B) require that a provider obtain authorization from the 
     plan or the issuer for prescribing any length of stay 
     required under subparagraph (A) (without regard to paragraph 
     (2)).
       ``(2) Exception.--Paragraph (1)(A) shall not apply in 
     connection with any group health plan or health insurance 
     issuer in any case in which the decision to discharge the 
     mother or her newborn child prior to the expiration of the 
     minimum length of stay otherwise required under paragraph 
     (1)(A) is made by an attending provider in consultation with 
     the mother.
       ``(b) Prohibitions.--A group health plan, and a health 
     insurance issuer offering group health insurance coverage in 
     connection with a group health plan, may not--
       ``(1) deny to the mother or her newborn child eligibility, 
     or continued eligibility, to enroll or to renew coverage 
     under the terms of the plan, solely for the purpose of 
     avoiding the requirements of this section;
       ``(2) provide monetary payments or rebates to mothers to 
     encourage such mothers to accept less than the minimum 
     protections available under this section;
       ``(3) penalize or otherwise reduce or limit the 
     reimbursement of an attending provider because such provider 
     provided care to an individual participant or beneficiary in 
     accordance with this section;
       ``(4) provide incentives (monetary or otherwise) to an 
     attending provider to induce such provider to provide care to 
     an individual participant or beneficiary in a manner 
     inconsistent with this section; or
       ``(5) subject to subsection (c)(3), restrict benefits for 
     any portion of a period within a hospital length of stay 
     required under subsection (a) in a manner which is less 
     favorable than the benefits provided for any preceding 
     portion of such stay.
       ``(c) Rules of Construction.--
       ``(1) Nothing in this section shall be construed to require 
     a mother who is a participant or beneficiary--
       ``(A) to give birth in a hospital; or
       ``(B) to stay in the hospital for a fixed period of time 
     following the birth of her child.
       ``(2) This section shall not apply with respect to any 
     group health plan, or any group health insurance coverage 
     offered by a health insurance issuer, which does not provide 
     benefits for hospital lengths of stay in connection with 
     childbirth for a mother or her newborn child.
       ``(3) Nothing in this section shall be construed as 
     preventing a group health plan or issuer from imposing 
     deductibles, coinsurance, or other cost-sharing in relation 
     to benefits for hospital lengths of stay in connection with 
     childbirth for a mother or newborn child under the plan (or 
     under health insurance coverage offered in connection with a 
     group health plan), except that such coinsurance or other 
     cost-sharing for any portion of a period within a hospital 
     length of stay required under subsection (a) may not be 
     greater than such coinsurance or cost-sharing for any 
     preceding portion of such stay.

[[Page H10743]]

       ``(d) Notice Under Group Health Plan.--The imposition of 
     the requirements of this section shall be treated as a 
     material modification in the terms of the plan described in 
     section 102(a)(1), for purposes of assuring notice of such 
     requirements under the plan; except that the summary 
     description required to be provided under the last sentence 
     of section 104(b)(1) with respect to such modification shall 
     be provided by not later than 60 days after the first day of 
     the first plan year in which such requirements apply.
       ``(e) Level and Type of Reimbursements.--Nothing in this 
     section shall be construed to prevent a group health plan or 
     a health insurance issuer offering group health insurance 
     coverage from negotiating the level and type of reimbursement 
     with a provider for care provided in accordance with this 
     section.
       ``(f) Preemption; Exception for Health Insurance Coverage 
     in Certain States.--
       ``(1) In general.--The requirements of this section shall 
     not apply with respect to health insurance coverage if there 
     is a State law (as defined in section 731(d)(1)) for a State 
     that regulates such coverage that is described in any of the 
     following subparagraphs:
       ``(A) Such State law requires such coverage to provide for 
     at least a 48-hour hospital length of stay following a normal 
     vaginal delivery and at least a 96-hour hospital length of 
     stay following a cesarean section.
       ``(B) Such State law requires such coverage to provide for 
     maternity and pediatric care in accordance with guidelines 
     established by the American College of Obstetricians and 
     Gynecologists, the American Academy of Pediatrics, or other 
     established professional medical associations.
       ``(C) Such State law requires, in connection with such 
     coverage for maternity care, that the hospital length of stay 
     for such care is left to the decision of (or required to be 
     made by) the attending provider in consultation with the 
     mother.
       ``(2) Construction.--Section 731(a)(1) shall not be 
     construed as superseding a State law described in paragraph 
     (1).''.
       (b) Conforming Amendments.--
       (1) Section 731(c) of such Act (as added by section 101 of 
     the Health Insurance Portability and Accountability Act of 
     1996 and redesignated by the preceding provisions of this 
     section) is amended by striking ``Nothing'' and inserting 
     ``Except as provided in section 711, nothing''.
       (2) Section 732(a) of such Act (as added by section 101 of 
     the Health Insurance Portability and Accountability Act of 
     1996 and redesignated by the preceding provisions of this 
     section) is amended by inserting ``(other than section 711)'' 
     after ``part''.
       (3) Title I of such Act (as amended by section 101 of the 
     Health Insurance Portability and Accountability Act of 1996 
     and the preceding provisions of this section) is further 
     amended--
       (A) in the last sentence of section 4(b), by striking 
     ``section 706(b)(2)'', ``section 706(b)(1)'', and ``section 
     706(a)(1)'' and inserting ``section 733(b)(2)'', ``section 
     733(b)(1)'', and ``section 733(a)(1)'', respectively;
       (B) in section 101(g), by striking ``section 706(a)(2)'' 
     and inserting ``section 733(a)(2)'';
       (C) in section 102(b), by striking ``section 706(a)(1)'' 
     each place it appears and inserting ``section 733(a)(1), and 
     by striking ``section 706(b)(2)'' and inserting ``section 
     733(b)(2)'';
       (D) in section 104(b)(1), by striking ``section 706(a)(1)'' 
     each place it appears and inserting ``section 733(a)(1);
       (E) in section 502(b)(3), by striking ``section 706(a)(1)'' 
     and inserting ``section 733(a)(1)'';
       (F) in section 506(c), by striking ``section 706(a)(2)'' 
     and inserting ``section 733(a)(2)'';
       (G) in section 514(b)(9), by striking ``section 704'' and 
     inserting ``section 731'';
       (H) in the last sentence of section 701(c)(1), by striking 
     ``section 706(c)'' and inserting ``section 733(c)'';
       (I) in section 732(b), by striking ``section 706(c)(1)'' 
     and inserting ``section 733(c)(1)'';
       (J) in section 732(c)(1), by striking ``section 706(c)(2)'' 
     and inserting ``section 733(c)(2)'';
       (K) in section 732(c)(2), by striking ``section 706(c)(3)'' 
     and inserting ``section 733(c)(3)''; and
       (L) in section 732(c)(3), by striking ``section 706(c)(4)'' 
     and inserting ``section 733(c)(4)''.
       (4) The table of contents in section 1 of such Act is 
     amended by striking the items relating to part 7 and 
     inserting the following:

                ``Part 7--Group Health Plan Requirements

    ``Subpart A--Requirements Relating to Portability, Access, and 
                              Renewability

``Sec. 701. Increased portability through limitation on preexisting 
              condition exclusions.
``Sec. 702. Prohibiting discrimination against individual participants 
              and beneficiaries based on health status.
``Sec. 703. Guaranteed renewability in multiemployer plans and multiple 
              employer welfare arrangements.

                    ``Subpart B--Other Requirements

``Sec. 711. Standards relating to benefits for mothers and newborns.

                    ``Subpart C--General Provisions

``Sec. 731. Preemption; State flexibility; construction.
``Sec.732. Special rules relating to group health plans.
``Sec. 733. Definitions.
``Sec. 734. Regulations.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to group health plans for plan years 
     beginning on or after January 1, 1998.

     SEC. 604. AMENDMENTS TO THE PUBLIC HEALTH SERVICE ACT 
                   RELATING TO THE GROUP MARKET.

       (a) In General.--Title XXVII of the Public Health Service 
     Act (as added by section 102 of the Health Insurance 
     Portability and Accountability Act of 1996) is amended--
       (1) by amending the title heading to read as follows:

  ``TITLE XXVII--REQUIREMENTS RELATING TO HEALTH INSURANCE COVERAGE'';

       (2) by redesignating subparts 2 and 3 of part A as subparts 
     3 and 4 of such part;
       (3) by inserting after subpart 1 of part A the following 
     new subpart:

                    ``Subpart 2--Other Requirements

     ``SEC. 2704. STANDARDS RELATING TO BENEFITS FOR MOTHERS AND 
                   NEWBORNS.

       ``(a) Requirements for Minimum Hospital Stay Following 
     Birth.--
       ``(1) In general.--A group health plan, and a health 
     insurance issuer offering group health insurance coverage, 
     may not--
       ``(A) except as provided in paragraph (2)--
       ``(i) restrict benefits for any hospital length of stay in 
     connection with childbirth for the mother or newborn child, 
     following a normal vaginal delivery, to less than 48 hours, 
     or
       ``(ii) restrict benefits for any hospital length of stay in 
     connection with childbirth for the mother or newborn child, 
     following a cesarean section, to less than 96 hours, or
       ``(B) require that a provider obtain authorization from the 
     plan or the issuer for prescribing any length of stay 
     required under subparagraph (A) (without regard to paragraph 
     (2)).
       ``(2) Exception.--Paragraph (1)(A) shall not apply in 
     connection with any group health plan or health insurance 
     issuer in any case in which the decision to discharge the 
     mother or her newborn child prior to the expiration of the 
     minimum length of stay otherwise required under paragraph 
     (1)(A) is made by an attending provider in consultation with 
     the mother.
       ``(b) Prohibitions.--A group health plan, and a health 
     insurance issuer offering group health insurance coverage in 
     connection with a group health plan, may not--
       ``(1) deny to the mother or her newborn child eligibility, 
     or continued eligibility, to enroll or to renew coverage 
     under the terms of the plan, solely for the purpose of 
     avoiding the requirements of this section;
       ``(2) provide monetary payments or rebates to mothers to 
     encourage such mothers to accept less than the minimum 
     protections available under this section;
       ``(3) penalize or otherwise reduce or limit the 
     reimbursement of an attending provider because such provider 
     provided care to an individual participant or beneficiary in 
     accordance with this section;
       ``(4) provide incentives (monetary or otherwise) to an 
     attending provider to induce such provider to provide care to 
     an individual participant or beneficiary in a manner 
     inconsistent with this section; or
       ``(5) subject to subsection (c)(3), restrict benefits for 
     any portion of a period within a hospital length of stay 
     required under subsection (a) in a manner which is less 
     favorable than the benefits provided for any preceding 
     portion of such stay.
       ``(c) Rules of Construction.--
       ``(1) Nothing in this section shall be construed to require 
     a mother who is a participant or beneficiary--
       ``(A) to give birth in a hospital; or
       ``(B) to stay in the hospital for a fixed period of time 
     following the birth of her child.
       ``(2) This section shall not apply with respect to any 
     group health plan, or any group health insurance coverage 
     offered by a health insurance issuer, which does not provide 
     benefits for hospital lengths of stay in connection with 
     childbirth for a mother or her newborn child.
       ``(3) Nothing in this section shall be construed as 
     preventing a group health plan or issuer from imposing 
     deductibles, coinsurance, or other cost-sharing in relation 
     to benefits for hospital lengths of stay in connection with 
     childbirth for a mother or newborn child under the plan (or 
     under health insurance coverage offered in connection with a 
     group health plan), except that such coinsurance or other 
     cost-sharing for any portion of a period within a hospital 
     length of stay required under subsection (a) may not be 
     greater than such coinsurance or cost-sharing for any 
     preceding portion of such stay.
       ``(d) Notice.--A group health plan under this part shall 
     comply with the notice requirement under section 711(d) of 
     the Employee Retirement Income Security Act of 1974 with 
     respect to the requirements of this section as if such 
     section applied to such plan.
       ``(e) Level and Type of Reimbursements.--Nothing in this 
     section shall be construed to prevent a group health plan or 
     a health insurance issuer offering group health insurance 
     coverage from negotiating the level and type of reimbursement 
     with a provider for care provided in accordance with this 
     section.
       ``(f) Preemption; Exception for Health Insurance Coverage 
     in Certain States.--
       ``(1) In general.--The requirements of this section shall 
     not apply with respect to health insurance coverage if there 
     is a State law (as defined in section 2723(d)(1)) for a State 
     that regulates such coverage that is described in any of the 
     following subparagraphs:
       ``(A) Such State law requires such coverage to provide for 
     at least a 48-hour hospital length of stay following a normal 
     vaginal delivery and at least a 96-hour hospital length of 
     stay following a cesarean section.
       ``(B) Such State law requires such coverage to provide for 
     maternity and pediatric care in accordance with guidelines 
     established by the American College of Obstetricians and 
     Gynecologists, the American Academy of Pediatrics, or other 
     established professional medical associations.
       ``(C) Such State law requires, in connection with such 
     coverage for maternity care, that the

[[Page H10744]]

     hospital length of stay for such care is left to the decision 
     of (or required to be made by) the attending provider in 
     consultation with the mother.
       ``(2) Construction.--Section 2723(a)(1) shall not be 
     construed as superseding a State law described in paragraph 
     (1).''.
       (b) Conforming Amendments.--
       (1) Section 2721 of such Act (as added by section 102 of 
     the Health Insurance Portability and Accountability Act of 
     1996) is amended--
       (A) in subsection (a), by striking ``subparts 1 and 2'' and 
     inserting ``subparts 1 and 3'', and
       (B) in subsections (b) through (d), by striking ``subparts 
     1 and 2'' each place it appears and inserting ``subparts 1 
     through 3''.
       (2) Section 2723(c) of such Act (as added by section 102 of 
     the Health Insurance Portability and Accountability Act of 
     1996) is amended by inserting ``(other than section 2704)'' 
     after ``part''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to group health plans for plan years 
     beginning on or after January 1, 1998.

     SEC. 605. AMENDMENTS TO THE PUBLIC HEALTH SERVICE ACT 
                   RELATING TO THE INDIVIDUAL MARKET.

       (a) In General.--Part B of title XXVII of the Public Health 
     Service Act (as added by section 111 of the Health Insurance 
     Portability and Accountability Act of 1996) is amended--
       (1) by inserting after the part heading the following:

   ``Subpart 1--Portability, Access, and Renewability Requirements'';

       (2) by redesignating sections 2745, 2746, and 2747 as 
     sections 2761, 2762, and 2763, respectively;
       (3) by inserting before section 2761 (as so redesignated) 
     the following:

                 ``Subpart 3--General Provisions''; and

       (4) by inserting after section 2744 the following:

                    ``Subpart 3--Other Requirements

     ``SEC. 2751. STANDARDS RELATING TO BENEFITS FOR MOTHERS AND 
                   NEWBORNS.

       ``(a) In General.--The provisions of section 2704 (other 
     than subsections (d) and (f)) shall apply to health insurance 
     coverage offered by a health insurance issuer in the 
     individual market in the same manner as it applies to health 
     insurance coverage offered by a health insurance issuer in 
     connection with a group health plan in the small or large 
     group market.
       ``(b) Notice Requirement.--A health insurance issuer under 
     this part shall comply with the notice requirement under 
     section 711(d) of the Employee Retirement Income Security Act 
     of 1974 with respect to the requirements referred to in 
     subsection (a) as if such section applied to such issuer and 
     such issuer were a group health plan.
       ``(c) Preemption; Exception for Health Insurance Coverage 
     in Certain States.--
       ``(1) In general.--The requirements of this section shall 
     not apply with respect to health insurance coverage if there 
     is a State law (as defined in section 2723(d)(1)) for a State 
     that regulates such coverage that is described in any of the 
     following subparagraphs:
       ``(A) Such State law requires such coverage to provide for 
     at least a 48-hour hospital length of stay following a normal 
     vaginal delivery and at least a 96-hour hospital length of 
     stay following a cesarean section.
       ``(B) Such State law requires such coverage to provide for 
     maternity and pediatric care in accordance with guidelines 
     established by the American College of Obstetricians and 
     Gynecologists, the American Academy of Pediatrics, or other 
     established professional medical associations.
       ``(C) Such State law requires, in connection with such 
     coverage for maternity care, that the hospital length of stay 
     for such care is left to the decision of (or required to be 
     made by) the attending provider in consultation with the 
     mother.
       ``(2) Construction.--Section 2762(a) shall not be construed 
     as superseding a State law described in paragraph (1).''.
       (b) Conforming Amendments.--Such part (as so added) is 
     further amended as follows:
       (1) In section 2744(a)(1), strike ``2746(b)'' and insert 
     ``2762(b)''.
       (2) In section 2745(a)(1) (before redesignation under 
     subsection (a)(1)), strike ``2746'' and insert ``2762''.
       (3) In section 2746(b) (before redesignation under 
     subsection (a)(1))--
       (A) by inserting ``(1)'' after the dash, and
       (B) by adding at the end the following:
       ``(2) Nothing in this part (other than section 2751) shall 
     be construed as requiring health insurance coverage offered 
     in the individual market to provide specific benefits under 
     the terms of such coverage.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to health insurance coverage 
     offered, sold, issued, renewed, in effect, or operated in the 
     individual market on or after January 1, 1998.

     SEC. 606. REPORTS TO CONGRESS CONCERNING CHILDBIRTH.

       (a) Findings.--Congress finds that--
       (1) childbirth is one part of a continuum of experience 
     that includes prepregnancy, pregnancy and prenatal care, 
     labor and delivery, the immediate postpartum period, and a 
     longer period of adjustment for the newborn, the mother, and 
     the family;
       (2) health care practices across this continuum are 
     changing in response to health care financing and delivery 
     system changes, science and clinical research, and patient 
     preferences; and
       (3) there is a need--
       (A) to examine the issues and consequences associated with 
     the length of hospital stays following childbirth;
       (B) to examine the follow-up practices for mothers and 
     newborns used in conjunction with shorter hospital stays;
       (C) to identify appropriate health care practices and 
     procedures with regard to the hospital discharge of newborns 
     and mothers;
       (D) to examine the extent to which such care is affected by 
     family and environmental factors; and
       (E) to examine the content of care during hospital stays 
     following childbirth.
       (b) Advisory Panel.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary of Health and Human 
     Services (in this section referred to as the ``Secretary'') 
     shall establish an advisory panel (referred to in this 
     section as the ``advisory panel'')--
       (A) to guide and review methods, procedures, and data 
     collection necessary to conduct the study described in 
     subsection (c) in a manner that is intended to enhance the 
     quality, safety, and effectiveness of health care services 
     provided to mothers and newborns;
       (B) to develop a consensus among the members of the 
     advisory panel regarding the appropriateness of the specific 
     requirements of this title; and
       (C) to prepare and submit to the Secretary, as part of the 
     report of the Secretary submitted under subsection (d), a 
     report summarizing the consensus (if any) developed under 
     subparagraph (B) or the reasons for not reaching such a 
     consensus.
       (2) Participation.--
       (A) Department representatives.--The Secretary shall ensure 
     that representatives from within the Department of Health and 
     Human Services that have expertise in the area of material 
     and child health or in outcomes research are appointed to the 
     advisory panel.
       (B) Representatives of public and private sector 
     entities.--
       (i) In general.--The Secretary shall ensure that members of 
     the advisory panel include representatives of public and 
     private sector entities having knowledge or experience in one 
     or more of the following areas:

       (I) Patient care.
       (II) Patient education.
       (III) Quality assurance.
       (IV) Outcomes research.
       (V) Consumer issues.

       (ii) Requirement.--The panel shall include representatives 
     of each of the following categories:

       (I) Health care practitioners.
       (II) Health plans.
       (III) Hospitals.
       (IV) Employers.
       (V) States.
       (VI) Consumers.

       (c) Studies.--
       (1) In general.--The Secretary shall conduct a study of--
       (A) the factors affecting the continuum of care with 
     respect to maternal and child health care, including outcomes 
     following childbirth;
       (B) the factors determining the length of hospital stay 
     following childbirth;
       (C) the diversity of negative or positive outcomes 
     affecting mothers, infants, and families;
       (D) the manner in which post natal care has changed over 
     time and the manner in which that care has adapted or related 
     to changes in the length of hospital stay, taking into 
     account--
       (i) the types of post natal care available and the extent 
     to which such care is accessed; and
       (ii) the challenges associated with providing post natal 
     care to all populations, including vulnerable populations, 
     and solutions for overcoming these challenges; and
       (E) the financial incentives that may--
       (i) impact the health of newborns and mothers; and
       (ii) influence the clinical decisionmaking of health care 
     providers.
       (2) Resources.--The Secretary shall provide to the advisory 
     panel the resources necessary to carry out the duties of the 
     advisory panel.
       (d) Reports.--
       (1) In general.--The Secretary shall prepare and submit to 
     the Committee on Labor and Human Resources of the Senate and 
     the Committee on Commerce of the House of Representatives a 
     report that contains--
       (A) a summary of the study conducted under subsection (c);
       (B) a summary of the best practices used in the public and 
     private sectors for the care of newborns and mothers;
       (C) recommendations for improvements in prenatal care, post 
     natal care, delivery and follow-up care, and whether the 
     implementation of such improvements should be accomplished by 
     the private health care sector, Federal or State governments, 
     or any combination thereof; and
       (D) limitations on the databases in existence on the date 
     of the enactment of this Act.
       (2) Deadlines.--The Secretary shall prepare and submit to 
     the Committees referred to in paragraph (1)--
       (A) an initial report concerning the study conducted under 
     subsection (c) and elements described in paragraph (1), not 
     later than 18 months after the date of the enactment of this 
     Act;
       (B) an interim report concerning such study and elements 
     not later than 3 years after the date of the enactment of 
     this Act; and
       (C) a final report concerning such study and elements not 
     later than 5 years after the date of the enactment of this 
     Act.
       (e) Termination of Panel.--The advisory panel shall 
     terminate on the date that occurs 60 days after the date on 
     which the last report is submitted under subsection (d).
       And the Senate agree to the same.
       Amendment numbered 118:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 118, and agree to the same 
     with an amendment, as follows:

[[Page H10745]]

       In lieu of the matter proposed by said amendment, insert:

TITLE VII--PARITY IN THE APPLICATION OF CERTAIN LIMITS TO MENTAL HEALTH 
                                BENEFITS

     SEC. 701. SHORT TITLE.

       This title may be cited as the ``Mental Health Parity Act 
     of 1996''.

     SEC. 702. AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME 
                   SECURITY ACT OF 1974.

       (a) In General.--Subpart B of part 7 of subtitle B of title 
     I of the Employee Retirement Income Security Act of 1974 (as 
     added by section 603(a)) is amended by adding at the end the 
     following new section:

     ``SEC. 712. PARITY IN THE APPLICATION OF CERTAIN LIMITS TO 
                   MENTAL HEALTH BENEFITS.

       ``(a) In General.--
       ``(1) Aggregate lifetime limits.--In the case of a group 
     health plan (or health insurance coverage offered in 
     connection with such a plan) that provides both medical and 
     surgical benefits and mental health benefits--
       ``(A) No lifetime limit.--If the plan or coverage does not 
     include an aggregate lifetime limit on substantially all 
     medical and surgical benefits, the plan or coverage may not 
     impose any aggregate lifetime limit on mental health 
     benefits.
       ``(B) Lifetime limit.--If the plan or coverage includes an 
     aggregate lifetime limit on substantially all medical and 
     surgical benefits (in this paragraph referred to as the 
     `applicable lifetime limit'), the plan or coverage shall 
     either--
       ``(i) apply the applicable lifetime limit both to the 
     medical and surgical benefits to which it otherwise would 
     apply and to mental health benefits and not distinguish in 
     the application of such limit between such medical and 
     surgical benefits and mental health benefits; or
       ``(ii) not include any aggregate lifetime limit on mental 
     health benefits that is less than the applicable lifetime 
     limit.
       ``(C) Rule in case of different limits.--In the case of a 
     plan or coverage that is not described in subparagraph (A) or 
     (B) and that includes no or different aggregate lifetime 
     limits on different categories of medical and surgical 
     benefits, the Secretary shall establish rules under which 
     subparagraph (B) is applied to such plan or coverage with 
     respect to mental health benefits by substituting for the 
     applicable lifetime limit an average aggregate lifetime limit 
     that is computed taking into account the weighted average of 
     the aggregate lifetime limits applicable to such categories.
       ``(2) Annual limits.--In the case of a group health plan 
     (or health insurance coverage offered in connection with such 
     a plan) that provides both medical and surgical benefits and 
     mental health benefits--
       ``(A) No annual limit.--If the plan or coverage does not 
     include an annual limit on substantially all medical and 
     surgical benefits, the plan or coverage may not impose any 
     annual limit on mental health benefits.
       ``(B) Annual limit.--If the plan or coverage includes an 
     annual limit on substantially all medical and surgical 
     benefits (in this paragraph referred to as the `applicable 
     annual limit'), the plan or coverage shall either--
       ``(i) apply the applicable annual limit both to medical and 
     surgical benefits to which it otherwise would apply and to 
     mental health benefits and not distinguish in the application 
     of such limit between such medical and surgical benefits and 
     mental health benefits; or
       ``(ii) not include any annual limit on mental health 
     benefits that is less than the applicable annual limit.
       ``(C) Rule in case of different limits.--In the case of a 
     plan or coverage that is not described in subparagraph (A) or 
     (B) and that includes no or different annual limits on 
     different categories of medical and surgical benefits, the 
     Secretary shall establish rules under which subparagraph (B) 
     is applied to such plan or coverage with respect to mental 
     health benefits by substituting for the applicable annual 
     limit an average annual limit that is computed taking into 
     account the weighted average of the annual limits applicable 
     to such categories.
       ``(b) Construction.--Nothing in this section shall be 
     construed--
       ``(1) as requiring a group health plan (or health insurance 
     coverage offered in connection with such a plan) to provide 
     any mental health benefits; or
       ``(2) in the case of a group health plan (or health 
     insurance coverage offered in connection with such a plan) 
     that provides mental health benefits, as affecting the terms 
     and conditions (including cost sharing, limits on numbers of 
     visits or days of coverage, and requirements relating to 
     medical necessity) relating to the amount, duration, or scope 
     of mental health benefits under the plan or coverage, except 
     as specifically provided in subsection (a) (in regard to 
     parity in the imposition of aggregate lifetime limits and 
     annual limits for mental health benefits).
       ``(c) Exemptions.--
       ``(1) Small employer exemption.--
       ``(A) In general.--This section shall not apply to any 
     group health plan (and group health insurance coverage 
     offered in connection with a group health plan) for any plan 
     year of a small employer.
       ``(B) Small employer.--For purposes of subparagraph (A), 
     the term `small employer' means, in connection with a group 
     health plan with respect to a calendar year and a plan year, 
     an employer who employed an average of at least 2 but not 
     more than 50 employees on business days during the preceding 
     calendar year and who employs at least 2 employees on the 
     first day of the plan year.
       ``(C) Application of certain rules in determination of 
     employer size.--For purposes of this paragraph--
       ``(i) Application of aggregation rule for employers.--Rules 
     similar to the rules under subsections (b), (c), (m), and (o) 
     of section 414 of the Internal Revenue Code of 1986 shall 
     apply for purposes of treating persons as a single employer.
       ``(ii) Employers not in existence in preceding year.--In 
     the case of an employer which was not in existence throughout 
     the preceding calendar year, the determination of whether 
     such employer is a small employer shall be based on the 
     average number of employees that it is reasonably expected 
     such employer will employ on business days in the current 
     calendar year.
       ``(iii) Predecessors.--Any reference in this paragraph to 
     an employer shall include a reference to any predecessor of 
     such employer.
       ``(2) Increased cost exemption.--This section shall not 
     apply with respect to a group health plan (or health 
     insurance coverage offered in connection with a group health 
     plan) if the application of this section to such plan (or to 
     such coverage) results in an increase in the cost under the 
     plan (or for such coverage) of at least 1 percent.
       ``(d) Separate Application to Each Option Offered.--In the 
     case of a group health plan that offers a participant or 
     beneficiary two or more benefit package options under the 
     plan, the requirements of this section shall be applied 
     separately with respect to each such option.
       ``(e) Definitions.--For purposes of this section:
       ``(1) Aggregate lifetime limit.--The term `aggregate 
     lifetime limit' means, with respect to benefits under a group 
     health plan or health insurance coverage, a dollar limitation 
     on the total amount that may be paid with respect to such 
     benefits under the plan or health insurance coverage with 
     respect to an individual or other coverage unit.
       ``(2) Annual limit.--The term `annual limit' means, with 
     respect to benefits under a group health plan or health 
     insurance coverage, a dollar limitation on the total amount 
     of benefits that may be paid with respect to such benefits in 
     a 12-month period under the plan or health insurance coverage 
     with respect to an individual or other coverage unit.
       ``(3) Medical or surgical benefits.--The term `medical or 
     surgical benefits' means benefits with respect to medical or 
     surgical services, as defined under the terms of the plan or 
     coverage (as the case may be), but does not include mental 
     health benefits.
       ``(4) mental health benefits.--The term `mental health 
     benefits' means benefits with respect to mental health 
     services, as defined under the terms of the plan or coverage 
     (as the case may be), but does not include benefits with 
     respect to treatment of substance abuse or chemical 
     dependency.
       ``(f) Sunset.--This section shall not apply to benefits for 
     services furnished on or after September 30, 2001.''.
       ``(b) Clerical Amendment.--The table of contents in section 
     1 of such Act, as amended by section 602 of this Act, is 
     amended by inserting after the item relating to section 711 
     the following new item:

``Sec. 712. Parity in the application of certain limits to mental 
              health benefits.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to group health plans for plan years 
     beginning on or after January 1, 1998.

     SEC. 703. AMENDMENTS TO THE PUBLIC HEALTH SERVICE ACT 
                   RELATING TO THE GROUP MARKET.

       (a) In General.--Subpart 2 of part A of title XXVII of the 
     Public Health Service Act (as added by section 604(a)) is 
     amended by adding at the end the following new section:

     ``SEC. 2705. PARITY IN THE APPLICATION OF CERTAIN LIMITS TO 
                   MENTAL HEALTH BENEFITS.

       (a) In General.--
       ``(1) Aggregate lifetime limits.--In the case of a group 
     health plan (or health insurance coverage offered in 
     connection with such a plan) that provides both medical and 
     surgical benefits and mental health benefits--
       ``(A) No lifetime limit.--If the plan or coverage does not 
     include an aggregate lifetime limit on substantially all 
     medical and surgical benefits, the plan or coverage may not 
     impose any aggregate lifetime limit on mental health 
     benefits.
       (B) Lifetime limit.--If the plan or coverage includes an 
     aggregate lifetime limit on substantially all medical and 
     surgical benefits (in this paragraph referred to as the 
     `applicable lifetime limit''), the plan or coverage shall 
     either--
       ``(i) apply the applicable lifetime limit both to the 
     medical and surgical benefits to which it otherwise would 
     apply and to mental health benefits and not distinguish in 
     the application of such limit between such medical and 
     surgical benefits and mental health benefits; or
       ``(ii) not include any aggregate lifetime limit on mental 
     health benefits that is less than the applicable lifetime 
     limit.
       ``(C) Rule in case of different limits.--In the case of a 
     plan or coverage that is not described in subparagraph (A) or 
     (B) and that includes no or different aggregate lifetime 
     limits on different categories of medical and surgical 
     benefits, the Secretary shall establish rules under which 
     subparagraph (B) is applied to such plan or coverage with 
     respect to mental health benefits by substituting for the 
     applicable lifetime limit an average aggregate lifetime limit 
     that is computed taking into account the weighted average of 
     the aggregate lifetime limits applicable to such categories.
       ``(2) Annual limits.--In the case of a group health plan 
     (or health insurance coverage offered in connection with such 
     a plan) that provides both medical and surgical benefits and 
     mental health benefits--

[[Page H10746]]

       ``(A) No annual limit.--If the plan or coverage does not 
     include an annual limit on substantially all medical and 
     surgical benefits, the plan or coverage may not impose any 
     annual limit on mental health benefits.
       ``(B) Annual limit.--If the plan or coverage includes an 
     annual limit on substantially all medical and surgical 
     benefits (in this paragraph referred to as the `applicable 
     annual limit'), the plan or coverage shall either--
       ``(i) apply the applicable annual limit both to medical and 
     surgical benefits to which it otherwise would apply and to 
     mental health benefits and not distinguish in the application 
     of such limit between such medical and surgical benefits and 
     mental health benefits; or
       ``(ii) not include any annual limit on mental health 
     benefits that is less than the applicable annual limit.
       ``(C) Rule in case of different limits.--In the case of a 
     plan or coverage that is not described in subparagraph (A) or 
     (B) and that includes no or different annual limits on 
     different categories of medical and surgical benefits, the 
     Secretary shall establish rules under which subparagraph (B) 
     is applied to such plan or coverage with respect to mental 
     health benefits by substituting for the applicable annual 
     limit on average annual limit that is computed taking into 
     account the weighted average of the annual limits applicable 
     to such categories.
       ``(b) Construction.--Nothing in this section shall be 
     construed--
       ``(1) as requiring a group health plan (or health insurance 
     coverage offered in connection with such a plan) to provide 
     any mental health benefits; or
       ``(2) in the case of a group health plan (or health 
     insurance coverage offered in connection with such a plan) 
     that provides mental health benefits, as affecting the terms 
     and conditions (including cost sharing, limits on numbers of 
     visits or days of coverage, and requirements relating to 
     medical necessity) relating to the amount, duration, or scope 
     of mental health benefits under the plan or coverage, except 
     as specifically provided in subsection (a) (in regard to 
     parity in the imposition of aggregate lifetime limits and 
     annual limits for mental health benefits).
       ``(c) Exemptions.--
       ``(1) Small employer exemption.--This section shall not 
     apply to any group health plan (and group health insurance 
     coverage offered in connection with a group health plan) for 
     any plan year of a small employer.
       ``(2) Increased cost exemption.--This section shall not 
     apply with respect to a group health plan (or health 
     insurance coverage offered in connection with a group health 
     plan) if the application of this section to such plan (or to 
     such coverage) results in an increase in the cost under the 
     plan (or for such coverage) of at least 1 percent.
       ``(d) Separate Application to Each Option Offered.--In the 
     case of a group health plan that offers a participant or 
     beneficiary two or more benefit package options under the 
     plan, the requirements of this section shall be applied 
     separately with respect to each such option.
       ``(e) Definitions.--For purposes of this section;
       ``(1) Aggregate lifetime limit.--The term `aggregate 
     lifetime limit' means, with respect to benefits under a group 
     health plan or health insurance coverage, a dollar limitation 
     on the total amount that may be paid with respect to such 
     benefits under the plan or health insurance coverage with 
     respect to an individual or other coverage unit.
       ``(2) Annual limit.--The term `annual limit' means, with 
     respect to benefits under a group health plan or health 
     insurance coverage, a dollar limitation on the total amount 
     of benefits that may be paid with respect to such benefits in 
     a 12-month period under the plan or health insurance coverage 
     with respect to an individual or other coverage unit.
       ``(3) Medical or surgical benefits.--The term `medical or 
     surgical benefits' means benefits with respect to medical or 
     surgical services, as defined under the terms of the plan or 
     coverage (as the case may be), but does not include mental 
     health benefits.
       ``(4) Mental health benefits.--The term `mental health 
     benefits' means benefits with respect to mental health 
     services, as defined under the terms of the plan or coverage 
     (as the case may be), but does not include benefits with 
     respect to treatment of substance abuse or chemical 
     dependency.
       ``(f) Sunset.--This section shall not apply to benefits for 
     services furnished on or after September 30, 2001.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to group health plans for plan years 
     beginning on or after January 1, 1998.
       And the Senate agree to the same.

     Jerry Lewis,
     Barbara F. Vucanovich,
     James T. Walsh,
     David L. Hobson,
     Joe Knollenberg,
     Rodney P. Frelinghuysen,
     Bob Livingston,
     Louis Stokes,
     Alan B. Mollohan,
     Jim Chapman,
     Marcy Kaptur,
     David R. Obey,
                                Managers on the Part of the House.

     Christopher S. Bond,
     Conrad Burns,
     Ted Stevens,
     Richard C. Shelby,
     Robert F. Bennett,
     Ben Nighthorse Campbell,
     Mark O. Hatfield,
     Barbara A. Mikulski,
     Patrick J. Leahy,
     J. Bennett Johnston,
     Frank R. Lautenberg,
     J. Robert Kerrey,
     Robert C. Byrd,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendments of the Senate to the bill (H.R. 3666) making 
     appropriations for the Departments of Veterans Affairs and 
     Housing and Urban Development, and for sundry independent 
     agencies, boards, commissions, corporations, and offices for 
     the fiscal year ending September 30, 1997, and for other 
     purposes, submit the following joint statement to the House 
     and the Senate in explanation of the effect of the action 
     agreed upon by the managers and recommended in the 
     accompanying report.
       The language and allocations set forth in House Report 104-
     628 and Senate Report 104-318 should be complied with unless 
     specifically addressed to the contrary in the conference 
     report and statement of the managers. Report language 
     included by the House which is not changed by the report of 
     the Senate or the conference, and Senate report language 
     which is not changed by the conference is approved by the 
     committee of conference. The statement of the managers, while 
     repeating some report language for emphasis, does not intend 
     to negate the language referred to above unless expressly 
     provided herein. In cases in which the House or Senate have 
     directed the submission of a report, such report is to be 
     submitted to both House and Senate Committees on 
     Appropriations.

                TITLE I--DEPARTMENT OF VETERANS AFFAIRS


                    Veterans Benefits Administration

       Amendment No. 1: Appropriates $18,671,259,000 for 
     compensation and pensions as proposed by the Senate, instead 
     of $18,497,854,000 as proposed by the House.
       Amendment No. 2: Appropriates $1,377,000,000 for 
     readjustment benefits as proposed by the Senate, instead of 
     $1,227,000,000 as proposed by the House.
       Amendment No. 3: Limits the principal amount of direct 
     loans in the vocational rehabilitation loans program account 
     to not to exceed $2,822,000 as proposed by the Senate, 
     instead of not to exceed $1,964,000 as proposed by the House.


                     Veterans Health Administration

       Amendment No. 4: Delays the availability of $700,000,000 of 
     the medical care appropriation in the equipment and land and 
     structures object classifications until August 1, 1997, 
     instead of delaying the availability of $570,000,000 as 
     proposed by the House and $596,000,000 as proposed by the 
     Senate.
       The conference agreement includes medical care funding of 
     $210,000 to expand services at the existing community-based 
     outpatient clinic in Texarkana, Texas; and $400,000 for the 
     homeless veterans domiciliary program in Alaska, including 
     the purchase of transitional housing units (300,000) and the 
     expansion of the domiciliary's video-conferencing 
     capabilities ($100,000).
       Amendment No. 5: Appropriates $262,000,000 for medical and 
     prosthetic research as proposed by the Senate, instead of 
     $257,000,000 proposed by the House. The house, in section 427 
     of the general provisions, increased this appropriation by 
     $20,000,000--to a total of $277,000,000. The conference 
     agreement deletes that general provision.
       The committee of conference supports additional research 
     activity on osteoporosis and related bone diseases, disorders 
     which affect both women and men. In 1993, VA medical centers 
     cared for hip fractures in 2,650 veterans over 65 years of 
     age. The average length of acute hospital stay was 
     approximately 25 days which resulted in a total of 65,720 
     hospital days of care. The conferees urge the VA to prepare a 
     long-term strategy for research in this area, including the 
     coordination of such efforts with the Department of Defense 
     and the National Institutes of Health.
       Amendment No. 6: Appropriates $61,207,000 for medical 
     administration and miscellaneous operating expenses, instead 
     of $59,207,000 as proposed by the House and $62,207,000 as 
     proposed by the Senate.


                       Department Administration

       Amendment No. 7: Appropriates $827,584,000 for general 
     operating expenses, instead of $823,584,000 as proposed by 
     the House and $813,730,000 as proposed by the Senate. The 
     House, in section 426 of the general provisions, increased 
     this appropriation by $17,000,000--to a total of 
     $840,584,000. The conference agreement deletes that general 
     provision.
       The conferees agree that the decrease of $16,146,000 below 
     the budget estimate be applied against funds requested for 
     the Veterans Benefits Administration. The reduction to VBA 
     reflects the conferees' continuing frustration with the 
     lethargic approach to improving service to veterans, and is 
     not intended to worsen the backlog of pending claims. The 
     staffing requested for compensation and pension claims 
     processing is fully funded. While the Secretary has 
     discretion in applying the reduction, suggested areas include 
     deferred relocation expenses, travel restructuring plans 
     which will not be implemented, and cash awards and bonuses.

[[Page H10747]]

       The conferees also agree not to earmark any specific level 
     of funding to improve access for contact by telephone, but 
     support this Veterans Benefits Administration's restructuring 
     initiative to improve service to veterans.
       Amendment No. 8: Makes technical language change as 
     proposed by the Senate.
       Amendment No. 9: Appropriates $250,858,000 for 
     construction, major projects, instead of $245,358,000 as 
     proposed by the House and $178,250,000 as proposed by the 
     Senate.
       The conference agreement include the following changes from 
     the budget estimate:
       -$42,600,000 for the new medical center and nursing home 
     project in Brevard County, Florida.
       -$15,100,000 for the renovation of psychiatric wards at the 
     Perry Point, Maryland VA Medical Center.
       +$5,000,000 for an ambulatory care addition project at the 
     Leavenworth, Kansas VA Medical Center.
       -$15,500,000 for the renovation of facilities and 
     relocation of medical school functions project at the 
     Mountain Home, Tennessee VA Medical Center.
       +$20,000,000 for the first phase of the spinal cord injury 
     unit and energy center project at the Tampa, Florida VA 
     Medical Center.
       -$12,400,000 for the $17,400,000 requested for the 
     environmental improvements project at the Pittsburgh (UD), 
     Pennsylvania VA Medical Center.
       -$18,200,000 for the environmental enhancements project at 
     the Salisbury, North Carolina VA Medical Center.
       +$16,000,000 for the research addition project at the 
     Portland, Oregon VA Medical Center.
       +$1,000,000 for the planning of an ambulatory care addition 
     at the Lyons, New Jersey VA Medical Center.
       +$2,300,000 for the planning and design of a renovation/
     reconstruction of psychiatric care facilities project and the 
     Murfreesboro, Tennessee VA Medical Center.
       -5,000,000 of the $8,845,000 requested for the advance 
     planning fund.
       -$5,000,000 of the $15,000,000 requested for asbestos 
     abatement.
       +$13,000,000 for the phase I development of a new national 
     cemetery in the Albany, New York area.
       +$1,258,000 to complete the design of a new national 
     cemetery in Guilford Township, Ohio.
       -$5,000,000 requested for the judgment fund.
       The conference agreement includes the budget request of 
     $32,100,000 for the next funding increment of the replacement 
     hospital at Travis Air Force Base, with bill language 
     delaying the release of said funds until January 1, 1998, 
     unless action is taken by the Congress specifically making 
     the funds available sooner. The House provided $32,100,000 
     for the Travis project and the Senate deleted such funds.
       The conference committee recognizes that currently there 
     exist several scenarios for providing medical care to 
     veterans in this area, including an outpatient clinic; a 
     replacement hospital, which includes an outpatient clinic; 
     dedication of additional beds for VA use at the Travis 
     hospital; and utilization of the Mather Air Force hospital 
     for veterans. The conference committee also recognizes a 
     recent General Accounting Office report which concludes that 
     the Travis construction project is not justified and that 
     lower-cost alternatives should be more fully explored. 
     However, the VA Secretary does not concur with the GAO report 
     and its recommendation, and continues to fully support the 
     project. Further, the VA is currently developing plans for 
     restructuring the way health care services are provided in 
     its Sierra Pacific network.
       The Congress has provided for two approaches to this matter 
     in the past few years. There is an authorization and a 
     $25,000,000 appropriation for an outpatient clinic at Travis. 
     Also, since 1991, a total of $22,600,000 has been 
     appropriated for a hospital to replace the one at Martinez. 
     Because the hospital project began before the current 
     authorization process was enacted, it is ``grandfathered'' 
     and no authorization for it is required.
       The language included in the bill delaying the release of 
     the funds prior to January 1, 1998, unless specific action is 
     taken, will permit the Congress and the VA time to reassess 
     the available options and fully consider the GAO 
     recommendations. To assist in this effort, the VA is to make 
     a report to the Congress with recommendations as how to best 
     provide medical services to veterans in the area. The 
     authorizing committees should review this situation and take 
     whatever action regarding the construction authorization they 
     deem appropriate.
       Amendment No. 10: Appropriates $175,000,000 for 
     construction, minor projects, instead of $160,000,000 as 
     proposed by the House and $190,000,000 as proposed by the 
     Senate. The conferees urge the VA to give priority to 
     projects which will convert excess inpatient hospital space 
     to outpatient care space needed to accommodate the increases 
     in those activities.
       Amendment No. 11: Appropriates $12,300,000 for the parking 
     revolving fund as proposed by the House, instead of zero as 
     proposed by the Senate. The conferees agree that these funds 
     are for the parking structure component of the ambulatory 
     care addition project at the Cleveland VA Medical Center.


                        administrative provision

       Amendment No. 12: Inserts language proposed by the Senate 
     providing for the conveyance of a portion of the grounds at 
     the Tuscaloosa VA Medical Center to the City of Tuscaloosa, 
     Alabama.

         TITLE II--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT


                            HOUSING PROGRAMS

       Amendment No. 13: Deletes HUD's account structure as 
     proposed by the House and stricken by Senate. Amendment 
     number 14 replaces it with a new structure that is more 
     descriptive of the activities actually carried out under the 
     particular accounts. Many of the activities carried out in 
     the following accounts have been either merged into three 
     more flexible categorical accounts and two specialized 
     accounts or moved to the administrative provisions of this 
     Title: annual contributions for assisted housing; housing for 
     special populations: elderly and disabled housing; the 
     flexible subsidy fund; rental housing assistance; the public 
     and Indian housing certificate fund; public housing operating 
     fund; public housing capital fund; revitalization of severely 
     distressed public housing (HOPE VII); and drug elimination 
     grants for low income housing.
       Amendment No. 14: Inserts language providing a new account 
     structure as proposed by the Senate with modifications as 
     described below.
       Appropriates $1,039,000,000 for a new ``Development of 
     additional new subsidized housing'' account instead of 
     $969,464,442 as proposed by the Senate. Incorporated into 
     this account are the new construction housing programs, 
     including housing for the elderly under section 202, housing 
     for the disabled under section 811, and public housing for 
     Indian families. Within the account, $645,000,000 is provided 
     for developing or acquiring housing under the section 202 
     program, $194,000,000 for developing or acquiring housing 
     under the section 811 program, and $200,000,000 for 
     developing or acquiring public housing for Indian families.
       Appropriates $4,640,000,000 for the second new account, 
     called ``Prevention of resident displacement,'' to assure 
     against the disruptive and painful effects of displacement 
     that families may confront from losing their subsidized 
     housing. The largest component of this--$3,600,000,000--is 
     appropriated to extend expiring rent subsidy contracts for 
     one year. Appropriations for the remaining components are: 
     $850,000,000 for section 8 contract amendments, of which 
     $50,000,000 is for rental assistance contracts under the Low-
     Income Housing, Preservation and Resident Homeownership Act 
     of 1990 (LIHPRHA) and the Emergency Low-Income Housing 
     Preservation Act of 1987 (ELIHPA); and $190,000,000 for 
     section 8 tenant-based certificates and vouchers necessary to 
     avoid resident displacement, for witness relocation and 
     family unification activities, and for other purposes.
       HUD requested $290,000,000 for certificate and voucher and 
     rental assistance. Of this amount, almost $100,000,000 was 
     for purposes other than providing rental assistance, 
     including such items as settlement of litigation, counseling 
     services and a new, previously unauthorized ``Welfare-to-
     Work'' initiative. There is a trend at HUD to initiate 
     programs without Congressional approval and fund them with 
     money appropriated for authorized programs. The conferees 
     plan to carefully monitor HUD's propensity to act without 
     Congressional mandate. In the meantime, the Department is 
     directed to present a budget request on a timely basis that 
     outlines and justifies their priorities and, if funds are 
     available and the program is authorized, the Appropriations 
     Committees may provide funding after due consideration.
       Appropriates $5,750,000,000 for the third new account, 
     ``Preserving existing housing investment,'' which 
     incorporates public and Indian housing operating subsidies, 
     modernization, and housing preservation activities under the 
     LIHPRHA. A total of $2,900,000,000 is earmarked for public 
     and Indian housing operating subsidies, as proposed by the 
     Senate; $2,500,000,000 is earmarked for modernization, as 
     proposed by the Senate and $350,000,000 is earmarked for 
     LIHPRHA, instead of $500,000,000 as proposed by the Senate.
       The conferees agree with the House report language 
     directing HUD to create performance targets for the use of 
     funds made available for technical assistance in the 
     modernization earmark and to report on whether these targets 
     are achieved.
       The preservation program has been redesigned to reduce 
     excessive program costs in the form of equity take-outs, 
     renovations and transactions costs. To protect residents from 
     possible displacement in the event an owner prepays the 
     unpaid principal balance remaining on the mortgage, 
     $100,000,000 is earmarked for tenant-based assistance. In 
     addition, $75,000,000 is provided to fund projects not being 
     sold to priority purchasers that have approved plans of 
     action. Finally, $10,000,000 is provided to reimburse owners 
     of eligible properties where plans of action were submitted 
     prior to the effective date of this Act, but were not 
     executed because of insufficient funds.
       To assist the Congress in making a determination of whether 
     this program is the most cost-effective way to provide 
     affordable housing opportunities to low-income families, the 
     conferees request the General Accounting Office (GAO) to 
     evaluate and review the program. As part of this evaluation, 
     GAO should review the level of compensation to the owner 
     relative to the actual value of the property, the level of 
     rehabilitation grants relative to the rehabilitation needs of 
     the

[[Page H10748]]

     property and the problems of administering the program. 
     Finally, because some of the issues are similar, GAO should 
     evaluate whether there are lessons to be learned from the 
     experience with the preservation program that can be applied 
     to portfolio reengineering.
       Two accounts have been retained separately because of their 
     unique characteristics: the revitalization of severely 
     distressed public housing account and the drug elimination 
     grants for low income housing account, as proposed by the 
     House. In these accounts, $550,000,000 is appropriated to the 
     severely distressed program, and $290,000,000 is appropriated 
     to the drug elimination grants program to assist public 
     housing authorities to fight drug problems in their 
     communities.
       Language is inserted to ensure that HOPE VI funds are used 
     for the purpose of revitalizing severely distressed public 
     housing facilities. HUD attempted to provide funds to 
     predetermined housing authorities to settle litigation 
     unconnected with the HOPE VI program. Furthermore, 
     preferential scoring was given to housing projects that 
     included proposals for an unauthorized program. HUD is 
     directed to end such practices immediately. Finally, in 
     assessing public housing demolition/disposition applications, 
     the conferees urge HUD to review closely the local housing 
     needs of a community, including shortages of affordable 
     housing for low-income families, the size of the waiting list 
     for the public housing, as well as the size of the local 
     homeless population.

                   COMMUNITY PLANNING AND DEVELOPMENT


                community development block grants fund

       Amendment No. 15: Deletes the language proposed by the 
     House and stricken by the Senate to delay the availability of 
     $300,000,000 of this appropriation until the last day of the 
     fiscal year.
       Consistent with Congressional efforts to devolve greater 
     authority to lower levels of government and to empower 
     citizens to develop self-help solutions within their 
     respective communities and neighborhoods, the conferees 
     recommend that HUD encourage States and entitlement 
     communities to support neighborhood revitalization activities 
     sponsored or administered by small nonprofit community-based 
     entities. The John Heinz Neighborhood Development Program is 
     a model that states could follow.
       Amendment No. 16: Earmarks $67,000,000 for grants to Indian 
     tribes instead of $61,400,000 as proposed by the House, and 
     $68,500,000 as proposed by the Senate.
       Amendment No. 17: Earmarks $1,500,000 for a grant to the 
     National American Indian Housing Council (NAIHC) as proposed 
     by the Senate, instead of $1,000,000 as proposed by the 
     House.
       Amendment No. 18: Earmarks $60,000,000 for grants promoting 
     self-sufficiency for residents of public housing, which is 
     $10,000,000 above the level proposed by the Senate. Earmarks 
     up to $5,000,000 for the Tenant Opportunity Program and up to 
     $5,000,000 for the Moving-to-Work demonstration created in 
     the fiscal year 1996 appropriations measure.
       Funds for the Tenant Opportunity Program shall not be 
     available for any purpose until the Secretary certifies that 
     the program is working effectively. The conferees are 
     concerned about reports of wasteful spending practices and 
     allegedly fraudulent activities within the program, practices 
     which put the program at risk of elimination altogether.
       Amendment No. 19: Earmarks $20,000,000 for public housing 
     authorities and other federally-assisted low income housing 
     programs to reimburse law enforcement entities and to augment 
     security services, as proposed by the Senate.
       Amendment No. 20: Earmarks $30,000,000 for the Youthbuild 
     program, instead of $20,000,000 as proposed by the House and 
     $40,000,000 as proposed by the Senate.
       Amendment No. 21: Inserts a technical correction to the 
     language as proposed by the Senate.

                     FEDERAL HOUSING ADMINISTRATION


             fha-mutual mortgage insurance program account

       Amendment No. 22: Transfers $350,595,000 from FHA-mutual 
     mortgage insurance guaranteed loan receipts for 
     administrative expenses as proposed by the Senate, instead of 
     $341,595,000 as proposed by the House.
       Amendment No. 23: Limits use of transferred funds to 
     $343,483,000 for departmental salaries and expenses as 
     proposed by the Senate, instead of $334,483,000 as proposed 
     by the House.


              fha-general and special risk program account

       Amendment No. 24: Transfers $207,470,000 from the FHA-
     General and Special Risk Program account for administrative 
     expenses to carry out the guaranteed and direct loan program 
     as proposed by the Senate, instead of $202,470,000, as 
     proposed by the House. Of this transfer, $203,299,000 is for 
     departmental salaries and expenses as proposed by the Senate 
     instead of $198,299,000, as proposed by the House.
       Amendment No. 25: Inserts a technical correction to the 
     language as proposed by the Senate.

                GOVERNMENT NATIONAL MORTGAGE ASSOCIATION


             guarantees of mortgage-backed securities loan

                       guarantee program account

       Amendment No. 26: Transfers $9,383,000 from receipts 
     generated by the GNMA-guarantees of mortgage-backed 
     securities for administrative expenses necessary to carry out 
     the guaranteed mortgage-backed securities program as proposed 
     by the Senate, instead of $9,101,000 as proposed by the 
     House.
       Amendment No. 27: Limits use of transfer of $9,303,000 for 
     salaries and expenses, as proposed by the Senate, instead of 
     $9,101,000 as proposed by the House.
       Amendment No. 28: Inserts a technical correction to the 
     language as proposed by the Senate.

                     MANAGEMENT AND ADMINISTRATION


                         salaries and expenses

       Amendment No. 29: Appropriates $976,840,000 for 
     departmental salaries and expenses, as proposed by the 
     Senate, instead of $919,147,000 as proposed by the House. The 
     agreement also provides that $15,000,000 is contingent on HUD 
     providing to the House and Senate Appropriations Committees a 
     strategic plan that results in reducing the full-time 
     equivalent (FTE) employment level to 7,500 in fiscal year 
     2000. Once the plan is reviewed, the additional funds will be 
     made available to provide retraining programs for employees, 
     to pay for related costs of personnel making permanent 
     changes in station, and other costs related to downsizing the 
     Department. During this process, it will be extremely 
     important for senior management staff to engage in open 
     discussions with the unions and career HUD employees.
       Amendment No. 30: Transfers $546,782,000 from various funds 
     of the Federal Housing Administration for salaries and 
     expenses as proposed by the Senate, instead of $532,782,000 
     as proposed by the House.
       Amendment No. 31: Transfers $9,383,000 from funds of GNMA 
     for salaries and expenses as proposed by the Senate, instead 
     of $9,101,000 as proposed by the House.


                      office of inspector general

       Amendment No. 32: Inserts a technical correction to the 
     language as proposed by the Senate.


             office of federal housing enterprise oversight

       Amendment No. 33: Appropriates $15,500,000 for the Office 
     of Federal Housing Enterprise Oversight (OFHEO) instead of 
     $14,895,000 as proposed by the House, and $15,751,000 as 
     proposed by the Senate.
       The conferees are concerned that this office is a growing 
     bureaucracy which has not met its responsibilities to develop 
     and implement financial safety and soundness requirements for 
     the two housing government sponsored enterprises (GSEs): the 
     Federal Home Loan Mortgage Corporation (FHLMC) and the 
     Federal National Mortgage Association (FNMA).
       Additonally, the conference agreement requires the General 
     Accounting Office (GAO) to audit the operations of OFHEO 
     relating to staff organization, expertise, capacity and 
     contracting to ensure that resources are adequate and are 
     being used appropriately for developing and implementing 
     financial safety and soundness requirements for FNMA and 
     FHLMC, as required under the Housing and Community 
     Development Act of 1992.
       The matter is addressed in Amendment No. 110.


                       administrative provisions

       Amendment No. 34: Deletes language proposed by the House 
     and stricken by the Senate regarding minimum rents, and 
     inserts language proposed by the Senate to extend 
     administrative provisions from the fiscal year 1996 VA/HUD 
     Appropriations Act, amended to include modified House 
     language regarding minimum rents. The conference agreement 
     inserts language to allow minimum rents of up to $50 for 
     public housing and section 8 housing. The remaining 
     extensions of authority, as proposed by the Senate, are 
     included in the provision including: suspension of the one-
     for-one replacement requirement, reforms to the public 
     housing modernization program, rent reforms, the repeal of 
     federal preferences, suspension of section 8(t) of the United 
     States Housing Act of 1937, the ``take one, take all'' 
     requirement, suspension of certain notice requirements for 
     owners who participate in the certificate and voucher 
     programs, suspension of section 8(d)(1)(B), the ``endless 
     lease'' requirement and retaining fair market rents at the 
     40th percentile of modest cost existing housing instead of 
     the 45th percentile calculation.
       Additionally, the conference agreement modifies the manner 
     in which administrative fees for tenant-based assistance are 
     calculated, delays the reissuance of section 8 vouchers and 
     certificates by three months, reduces annual adjustment 
     factors by 1% for units where tenants do not move and limits 
     high cost units. Finally, the conference agreement extends 
     for one year those reforms made to the single family mortgage 
     assignment program and reforms made to the disposition 
     process of multifamily properties and mortgages owned or held 
     by the Secretary.
       Amendment No. 35: Amends language proposed by the Senate to 
     provide up to $20,000,000 of unobligated balances from the 
     Nehemiah Housing Opportunity Grant program for activities to 
     promote and implement homeownership opportunities.
       Amendment No. 36: Inserts language proposed by the Senate 
     to cancel the indebtedness of the Greene County Rural Health 
     Center.
       Amendment No. 37: Inserts language proposed by the Senate 
     to transfer all uncommitted balances of excess rental charges 
     to the flexible subsidy fund.

[[Page H10749]]

       Amendment No. 38: Inserts language proposed by the Senate 
     which reduces by $2,000,000 all uncommitted balances of 
     authorizations under section 236 of the National Housing Act.
       Amendment No. 39: Inserts language proposed by the Senate 
     which allows funds withheld by HUD from the District of 
     Columbia's Department of Public and Assisted Housing (DPAH) 
     to be used by DPAH's successor agency, the District of 
     Columbia Housing Authority (DCHA), unless that agency is 
     deemed troubled at the end of fiscal year 1998.
       Amendment No. 40: Inserts language proposed by the Senate 
     regarding financial adjustment factors, amended to 
     appropriate $464,442 for the Utah Housing Finance Agency to 
     pay for amounts lost to the agency in bond refinancings.
       Amendment No. 41: Amends language proposed by the Senate 
     regarding section 8 contract renewal authority repealing the 
     section 8 Multifamily Housing Portfolio Restructuring 
     Demonstration created in the fiscal year 1996 VA/HUD 
     Appropriations Act, Public Law 104-134. The revised 
     demonstration does not nullify any agreements or proposals 
     that have been considered under the 1996 demonstration. 
     Furthermore, to the extent those participants have requested 
     tenant-based contracts, those units should not be counted 
     under the cap included in this revised demonstration.
       The revised demonstration is structured so that several 
     distinct processes can be set up and their results evaluated. 
     Stringent reporting requirements have been added so Congress 
     will know how the demonstration is proceeding.
       Given the uncertainty about how portfolio reengineering 
     will work, the conferees believe it is critical to be able to 
     evaluate the framework immediately. Furthermore, the 
     information gathered through the demonstration will be 
     valuable to the authorizing committees as they craft 
     legislation to: (1) decrease the escalating costs of section 
     8 rental assistance; (2) prevent mortgage defaults; (3) 
     protect against resident dislocation; and (4) resolve 
     associated tax issues.
       Under the legislation, HUD is required to renew for up to 
     one year all FHA-insured mortgages with section 8 contracts 
     with rents at or below 120 percent of the fair market rent 
     for an area. This safe-harbor provides HUD with the 
     administrative ability to focus on those FHA-insured 
     multifamily housing projects with significantly 
     oversubsidized rents. Projects with contract rents above 120 
     percent of fair market rent may have their section 8 
     contracts renewed at 120 percent of the fair market rent, 
     enter into a mortgage workout, or participate in the 
     demonstration.
       HUD is provided with flexible tools, including reinsurance 
     authority, the use of project-based and tenant-based 
     assistance, authority to forgive debt, budget-based rents, 
     the use of bifurcated mortgages, partial and full payment of 
     claim authority, credit enhancements, the ability to enter 
     into risk-sharing arrangements and the sale of benefits and 
     burdens of FHA multifamily mortgage insurance.
       HUD is authorized to enter into contracts with qualified 
     state housing finance agencies, local housing agencies, and 
     nonprofits as a partner or as a designee to administer the 
     program for HUD. HUD may contract and subcontract with 
     private-sector entities who have the expertise and capacity 
     necessary to ensure that mortgage restructurings are handled 
     to the best advantage of the Federal government, the 
     development, the community and the residents.
       The importance of carrying out this demonstration 
     effectively cannot be overstated in light of the families the 
     projects serve. Many of the properties are home to elderly 
     and disabled families, and may be located in high-cost rental 
     markets with little available, affordable housing or are in 
     rural areas with scarce housing resources. In most cases, the 
     projects are oversubsidized and are in danger of defaulting 
     on their mortgage if the section 8 payments are reduced to 
     market levels, raising concerns of owner disinvestment, 
     resident displacement, and government ownership, management 
     and disposition of the housing inventory. To achieve deficit 
     reduction and a balance budget, continuing the existing 
     subsidy arrangements is simply not an option.
       Amendment No. 42: Inserts language proposed by the Senate 
     to waive section 282 of the Cranston-Gonzalez National 
     Affordable Housing Act as it applies to Hawaiian Home Lands.
       Amendment No. 43: Deletes language proposed by the Senate 
     allowing HUD to establish a buyout plan to downsize the 
     Department and inserts language authorizing the Secretary to 
     transfer from section 8 recaptures, up to $50,000,000 to be 
     used to fund amendments for LIHPRHA contracts, and up to 
     $25,000,000 for housing opportunities for persons with AIDs 
     (HOPWA). The conferees intend that the recaptured funds shall 
     be used first for LIHPRHA and remaining funds for HOPWA.
       Amendment No. 44: Inserts language proposed by the Senate 
     to require HUD to maintain public notice and comment 
     rulemaking.
       Amendment No. 45: Inserts language proposed by the Senate 
     to change the definition of ``urban county'' to include those 
     counties that have a population of at least 210,000 persons, 
     that have experienced a population decrease and have had a 
     100-year old federal naval installation closed by the Base 
     Closure and Realignment Commission.
       Amendment No. 46: Inserts language proposed by the Senate 
     to promote fair housing and free speech.
       Amendment No. 47: Deletes language proposed by the Senate 
     to limit HUD from insuring any section 220 projects under the 
     National Housing Act for more than $250,000,000 without 
     sending a justification to the Congress and inserts technical 
     provisions to: 1) transition to the new account structure; 2) 
     coordinate tax credits and section 8 assistance allocated to 
     projects in New Brunswick, New Jersey; 3) extend the 
     authority of the City of Los Angeles to use up to 25% of its 
     CDBG allocation for public services; 4) determine rent level 
     in the section 236 program; and 5) revise the Fair Housing 
     Initiatives Program (FHIP) to clarify that funds shall not be 
     used to lobby the Congress or executive branches of 
     government.

TITLE III--INDEPENDENT AGENCIES--CORPORATION FOR NATIONAL AND COMMUNITY 
                                SERVICE


       National and Community Service Programs Operating Expenses

       Amendment No. 48: Appropriates $400,500,000 for national 
     and community service programs operating expenses as proposed 
     by the Senate, instead of $365,000,000 as proposed by the 
     House. The House, in section 427 of the general provisions, 
     reduced this appropriation and the appropriation for the 
     Office of Inspector General to zero. The conference agreement 
     deletes the part of that provision which eliminates funding 
     for the national service programs.
       Amendment No. 49: Limits funds for educational awards to 
     not more than $59,000,000 as proposed by the Senate, instead 
     of to not more than $40,000,000 as proposed by the House.
       Amendment No. 50: Limits funds for grants under the 
     National Service Trust, including the AmeriCorps program, to 
     not more than $214,000,000 as proposed by the Senate, instead 
     of $201,000,000 as proposed by the House.
       Amendment No. 51: Inserts language proposed by the Senate 
     limiting funds for national direct programs to not more than 
     $40,000,000.
       Amendment No. 52: Limits funds for the Points of Light 
     Foundation to not more than $5,500,000 as proposed by the 
     Senate, instead of $5,000,000 as proposed by the House.
       Amendment No. 53: Limits funds for the Civilian Community 
     Corps to not more than $18,000,000 as proposed by the Senate, 
     instead of $17,500,000 as proposed by the House.
       Amendment No. 54: Limits funds for the school-based and 
     community-based service-learning programs to not more than 
     $43,000,000 as proposed by the Senate, instead of $41,500,000 
     as proposed by the House.


                       Court of Veterans Appeals

       Amendment No. 55: Deletes language proposed by the House 
     and stricken by the Senate increasing the salaries and 
     expenses appropriation by $1,411,000.
       Amendment No. 56: Earmarks $700,000 of the salaries and 
     expenses appropraiton for the pro bono representation program 
     as proposed by the Senate, instead of $634,000 as proposed by 
     the House.

                    Environmental Protection Agency


                         science and technology

       Amendment No. 57: Appropriates $542,000,000 for science and 
     technology activities instead of $538,500,000 as proposed by 
     the House and $545,000,000 as proposed by the Senate.
       The conferees are in agreement with the following changes 
     to the budget request:
       +$2,150,000 for the Mickey Leland National Urban Air Toxics 
     Research Center.
       +$2,500,000 for the American Water Works Association 
     Research Foundation.
       +$700,000 for continued study of livestock and agricultural 
     pollution abatement.
       +$750,000 for oil spill remediation research at the 
     Louisiana Environmental Research Center at McNeese State 
     University.
       +$1,100,000 to continue the PM-10 study in the San Joaquin 
     Valley, California.
       +$750,000 for continuation of the Resource and Agriculture 
     Policy Systems Program at Iowa State University.
       +$1,500,000 for EPSCoR.
       +$1,000,000 for a study of the salinity of the Salton Sea 
     by the University of Redlands.
       +$1,200,000 for the lower Mississippi River interagency 
     cancer study (LMRICS).
       +$750,000 for research on environmental lung disease 
     through the National Jewish Center for Immunology and 
     Respiratory Medicine.
       +$1,000,000 for the Center for Air Toxics Metals.
       +$300,000 for the clean air status and trends network 
     (CASTNet) monitoring stations in New England.
       +$1,500,000 for the Water Environmental Research 
     Foundation.
       +$1,000,000 for research on the health effects of arsenic.
       +$5,000,000 for the Mine Waste Technology Program.
       +$250,000 for research and development needs in onsite and 
     alternative water and wastewater systems through the National 
     Decentralized Water Resources Capacity Development Project.
       -$17,600,000 from the Environmental Technology Initiative, 
     leaving $10,000,000 for technology verification activities.
       -$10,000,000 from the increase proposed for the climate 
     change action plan.
       -$2,200,000 from the EMAP program.
       -$7,000,000 from academic graduate fellowships.

[[Page H10750]]

       -$20,398,000 as a general reduction. In determing the level 
     of general reduction under this account, the conferees note 
     that directed reductions were not taken for enforcement and 
     for hiring additional employees. Rather, the conferees agree 
     that this general reduction be taken on an equitable basis 
     from all intramural (salaries and expenses) and extramural 
     (contracts and grants) activities at the Agency, including 
     management and support, research, enforcement, regulatory 
     activities and technical assistance.
       The conferees encourage EPA to work with institutions of 
     higher learning to establish and operate small public water 
     system technology assistance centers, the need for which was 
     recognized in the recently enacted Safe Drinking Water Act 
     Amendments.
       The conferees support the continuation of the Superfund 
     Innovative Technology Evaluation (SITE) program, which has 
     been moved to the science and technology account, at the 
     budget request level. The program is expected to focus on the 
     validation and verification of the performance of innovative 
     technologies developed by the private sector that will serve 
     to reduce remediation times and costs.
       Within 90 days of enactment of this Act, the conferees 
     direct EPA to enter into an agreement with the National 
     Academy of Sciences (NAS) to conduct a comprehensive two-year 
     study of the human health effects of synthetic and naturally 
     occurring substances that may have an effect in humans that 
     is similar to an effect produced by the hormone estrogen, and 
     such other hormone related effects as EPA may designate. The 
     conferees expect this study will examine the occurrence, 
     toxicological data, mechanisms of action, and relative risk 
     of synthetic and naturally occurring hormone related 
     toxicants in the causation of human health problems. Because 
     of the recent enactment of provisions mandating the 
     development of screening programs for these substances, the 
     study should also address issues central to the development 
     of a cost-effective screening program, including how to 
     select and prioritize chemicals for testing, which test or 
     tests to include in a screening program, and the most 
     appropriate way to use the resulting information in 
     developing risk estimates. If the EPA has already entered 
     into an agreement or agreements with the NAS with regard to 
     hormone related toxicants, the EPA is expected to merge all 
     such studies into one report. The conferees expect such study 
     to be completed within two years and ask the NAS to transmit 
     the subsequent report to the Committees on Appropriations as 
     well as to the EPA. Prior to release of the study and before 
     proposing any regulations or testing programs that address 
     estrogen or hormone related characteristics, the Agency is 
     directed to thoroughly consult with the NAS and to consider 
     the findings and recommendations of this study. The conferees 
     expect that any written comments submitted by the NAS on a 
     proposed regulation, as well as any EPA response to such 
     comments, will be published as part of any final EPA 
     rulemaking on this matter.
       Finally, the conferees agree that of the $35,000,000 
     transferred to science and technology from hazardous 
     substance superfund, $2,500,000 is for the Gulf Coast 
     Hazardous Substance Research Center.


                 ENVIRONMENTAL PROGRAMS AND MANAGEMENT

       Amendment No. 58: Appropriates $1,710,000,000 for 
     environmental programs and management instead of 
     $1,704,500,000 as proposed by the House and $1,731,000,000 as 
     proposed by the Senate.
       The conferees are in agreement with the following changes 
     to the budget request:
       +$2,500,000 for environmental justice activities.
       +$4,550,000 for rural water technical assistance activities 
     in addition to the levels provided in the budget request, 
     including $2,100,000 for activities of the National Rural 
     Water Association; $900,000 for RCAPs; $150,000 for the GWPC; 
     $350,000 for the Small Flows Clearinghouse; $1,000,000 for 
     the National Environmental Training Center; and $50,000 to 
     establish a regional waste water training center at Vermont 
     Technical College.
       +$1,000,000 to continue the onsite wastewater treatment 
     demonstration program through the Small Flows Clearinghouse.
       +$2,500,000 for the Southwest Center for Environmental 
     Research and Policy.
       +$700,000 to enable the Long Island Sound Office to 
     continue the implementation of the Sound's long-term 
     conservation and management plan.
       +$250,000 for a study of EPA's Mobile Source Emissions 
     Factor Model to be conducted by the National Academy of 
     Sciences.
       +$500,000 for ongoing programs of the Canaan Valley 
     Institute.
       +$900,000 for continuing work on the water quality 
     management plan for Skaneateles, Owasco, and Otisco Lake 
     watersheds.
       +$300,000 for continuing work on the Cortland County, New 
     York aquifer protection plan.
       +$1,500,000 for the National Institute for Environmental 
     Renewal for development of an integrated environmental 
     monitoring and data management system.
       +$3,000,000 for a sludge-to-oil-reactor (STORS) and 
     nitrogen removal system demonstration project in the San 
     Bernardino Valley Municipal Water District.
       +$1,250,000 for the South Shore Tahoe Transportation 
     demonstration.
       +$3,500,000 for the Lake Hollingsworth lake dredging 
     technology demonstration, Lakeland, Florida.
       +$5,000,000 for the West Palm Beach, Florida potable water 
     reuse demonstration project.
       +$290,000 for an analysis of the perennial yield of good 
     quality groundwater in the Wadsworth Sub-basin for the town 
     of Fernley, Nevada.
       +$2,000,000 for continuing work on the New York/New Jersey 
     Dredge Decontamination pilot study authorized by section 405 
     of the Water Resources Development Act of 1992.
       +$900,000 for continuation of the Sacramento River Toxic 
     Pollutant Control program, to be cost shared.
       +$500,000 for the small water system cooperative initiative 
     at Montana State University.
       +$320,000 for the regional environmental finance centers.
       +$300,000 for recycling and reuse technology development at 
     the Iowa Waste Reduction Center.
       +$1,000,000 for the non-profit For the Sake of the Salmon 
     to fund watershed coordinators for salmon protection in the 
     Pacific Northwest.
       +$2,000,000 to continue the leaking above ground storage 
     tank demonstration in the State of Alaska.
       +$250,000 for the final year of EPA's demonstration program 
     on the Potomac River's north branch of an acid mine drainage 
     remediation project.
       +$300,000 to continue the evaluation of ground water 
     quality in Missouri.
       +$1,000,000 for a Missouri watershed initiative cooperative 
     demonstration project with the Food and Agricultural Policy 
     Research Institute to link economic and environmental data 
     with ambient water quality.
       +$750,000 for the Lake Champlain management plan.
       +$2,000,000 to demonstrate the latest technology in 
     utilizing reclaimed water from a wastewater treatment 
     facility in Silverton, Oregon.
       +$500,000 to continue the model coordinated tribal water 
     quality program in Washington State.
       +$400,000 to continue the Maui algal bloom project.
       +$400,000 to continue support of the Ala Wai Canal water 
     improvement demonstration project.
       +$700,000 for the solar aquatic waste water treatment 
     demonstration project in Vermont.
       +$850,000 for the Nebraska municipal governments mandates 
     initiative.
       +$525,000 for an early childhood initiative in 
     environmental education.
       +$1,000,000 for a Federal contribution to the New York City 
     watershed protection program.
       +$250,000 for the Nature Conservancy of Alaska for 
     protection of the Kenai River watershed.
       +$1,500,000 for wastewater training grants under section 
     104(g) of the Clean Water Act.
       +$200,000 to continue the cleanup of Five Island Lake.
       +$500,000 for the Alabama Department of Environmental 
     Management to conduct a study on innovations in sewer system 
     development and operation.
       +$100,000 for a demonstration project on the use of oysters 
     to improve water quality in Chesapeake Bay tributaries.
       +$1,000,000 for a small business compliance demonstration 
     project pursuant to section 215 of the Small Business 
     Regulatory Enforcement Fairness Act of 1996.
       +$1,000,000 for a grant program to assist established 
     conservancies to develop or complete stream restoration or 
     watershed management plans as approved by CALFED consistent 
     with the Bay-Delta Category III Program. The conferees expect 
     that the Agency's fiscal year 1998 budget estimates will 
     identify in detail the funds and programs dedicated to 
     implementation of the Bay-Delta Accord, and, in addition, 
     expect that the Agency's 1997 Operating Plan will identify 
     the funding amounts provided all programs and projects which 
     will serve to advance or are consistent with the 
     implementation of the Accord.
       +$1,000,000 for the Michigan Biotechnology Institute's 
     pilot program for commercializing environmental technologies 
     of national strategic benefit.
       +$200,000 for the Alabama Water and Wastewater Institute to 
     train and upgrade waste treatment works operators and 
     maintenance personnel as required by the Clean Water Act.
       -$5,000,000 from the new sustainable development challenge 
     grant program.
       -$43,500,000 from the ETI program. The conferees agree that 
     the design for the environment (DfE) initiative should not be 
     treated as part of the ETI program and is thus not included 
     in this reduction.
       -$48,000,000 from climate change action plan programs. The 
     conferees note that these programs will remain funded at 
     nearly $68,000,000, which is similar to that provided in 
     fiscal year 1996.
       -$500,000 from the Gulf of Mexico program.
       -$2,000,000 from EPA's air programs.
       -$1,000,000 from low priority programs specifically related 
     to NAFTA.
       -$2,500,000 from non-specific regulatory programs as 
     outlined in the budget request.
       -$2,000,000 from the National Service Initiative.
       -$7,000,000 from the Montreal Protocol facilitation fund, 
     thus level-funding this program at the 1996 level.
       -$1,000,000 from the GLOBE program.

[[Page H10751]]

       -$121,014,000 as a general reduction. In determining the 
     level of general reduction under this account, the conferees 
     note that directed reductions were not taken for enforcement, 
     management and support, or for new hires. Rather, the 
     conferees agree that this general reduction be taken on an 
     equitable basis from all intramural (salaries and expenses) 
     and extramural (contracts and grants) activities of the 
     Agency, including management and support, enforcement, 
     regulatory activities and technical assistance.
       Of the amounts contained herein, the conferees have 
     provided up to $500,000 to continue efforts to ensure smooth 
     implementation of notification of lead-based paint hazards 
     during real estate transactions, direct that no less than 
     $300,000 be allocated to the Northeast States for Coordinated 
     Air Use Management to provide technical assistance and policy 
     guidance to its member States, and expect that the National 
     Environmental Education and Training Foundation will be 
     funded at the same ratio as it was during fiscal year 1996. 
     Within the amount provided for the Office of Small and 
     Disadvantaged Business Utilization, the Agency is encouraged 
     to make training grants to small, minority and women-owned 
     businesses for hazardous waste cleanup; for lead-based paint 
     abatement; for radon activities; and for underground storage 
     tank cleanup.
       The conferees note that the implementation of new 
     legislation on drinking water and food safety likely will 
     require some redirection of EPA resources. Given that these 
     bills were only recently enacted, the Committees on 
     Appropriations were unable to consider associated funding 
     requirements. The conferees therefore expect EPA to address 
     any funding requirements for implementation of these 
     important statutes, such as drinking water health effects 
     research, in the Agency's operating plan.
       The conferees recognize that leaking above ground tanks 
     storing petroleum or petroleum products pose complex 
     challenges for communities, and can threaten groundwater, the 
     most critical source of drinking water. The conferees are 
     concerned that EPA has yet to take substantive action on many 
     recommendations made by the General Accounting Office in two 
     reports. The conferees strongly urge EPA to address gaps in 
     the program identified in the GAO reports, including 
     secondary containment, overfill prevention, testing, 
     inspection, compatibility, installation, corrosion 
     protection, and structural integrity of petroleum tanks in 
     excess of 42,000 gallons. EPA is further urged to consider 
     ways of streamlining the administration of the above ground 
     storage tank program.
       The conferees direct the Agency to report to the Committees 
     on Appropriations on the number of chemical waste landfills 
     that have received waivers of the siting requirements under 
     the Toxic Substances Control Act (TSCA), pursuant to 40 CFR 
     761.75(c)(4), and describe in detail the process by which 
     requests for such waivers are considered and approved. 
     Further, the conferees encourage the Agency to respond 
     thoroughly to all comments filed by local governments and 
     knowledgeable parties on the TSCA permit application for PCB-
     waste disposal in Wayne County, Michigan, prior to any final 
     action on that application.
       The conferees express their support for EPA's continued 
     funding to allow the Sokaogon Chippewa Community to assess 
     the environmental impacts of a proposed sulfide mine project. 
     The conferees expect the EPA to work within existing funds to 
     assist the Sokaogon Chippewa Community in their efforts to 
     contribute adequate and up-to-date information to federal 
     agencies reviewing the mine proposal.
       The conferees are aware that the EPA is under court order 
     to make a decision on whether to change the current National 
     Ambient Air Quality Standard for Particulates. The court has 
     ordered the EPA to issue a proposed decision by November 29, 
     1996, and a final decision by June 28, 1997. The conferees 
     note that at present, there appears to be insufficient data 
     available for the Agency to decide what changes, if any, 
     should be made to the current standard. In particular, some 
     scientists have concluded that current data do not adequately 
     demonstrate causality or provide sufficient information to 
     establish a specific new control strategy. Moreover, the 
     EPA's Clean Air Scientific Advisory Committee is meeting soon 
     to begin to design its recommended particulate research 
     program for the Agency. The conferees further note that, at 
     EPA's request, $18,800,000 has been included in the 
     conference agreement for research on particulate matter. 
     Given that monitoring and research into causality have only 
     just begun, the conferees believe it may be premature for the 
     Agency to promulgate new particulate standards at this time. 
     The conferees encourage EPA to consider a ``no change'' 
     option as part of its proposed decision due by November 29, 
     1996, and for its final decision due in June, 1997. The 
     conferees expect to continue to support the EPA's research 
     and monitoring programs to develop the necessary data as 
     quickly as possible.
       The conferees are concerned regarding the practical utility 
     of requiring the submittal of more information from the 
     regulated community associated with EPA's planned expansion 
     of the Toxics Release Inventory (TRI). The conferees 
     understand that the paperwork burden on businesses and state 
     and local government associated with EPA requirements has 
     increased over the past year, despite an initiative to reduce 
     paperwork. Further, EPA has neither an integrated program to 
     manage information nor an inventory of current reporting 
     requirements on the regulated community. Despite new 
     information-gathering initiatives, EPA has proposed no 
     improvement in the collection, analysis, and communication of 
     information to the public on its own priorities, performance, 
     or the effectiveness of such initiatives in improving the 
     public's ``right-to-know.'' Moreover, EPA has not 
     sufficiently considered options to maximize the use of 
     information already reported by facilities and available to 
     citizens locally under the federal Emergency Planning and 
     Community Right-to-Know Act (EPCRA) in its efforts to expand 
     TRI to include more data on chemical uses.
       The conferees thus direct a study by the General Accounting 
     Office to:
       (1) Identify options for improving the right-to-know 
     program to more effectively address community concerns 
     regarding risks associated with chemicals and to communicate 
     risks to the public;
       (2) Evaluate EPA information management practices, their 
     utility in implementing the Government Performance and 
     Results Act (GPRA), and their overall effectiveness in 
     reducing paperwork requirements.
       (3) Recommend ways to increase accountability among federal 
     agencies in complying with existing TRI reporting 
     requirements.
       (4) Address the effectiveness of current mechanisms 
     required under EPCRA at the local level in providing existing 
     information on chemicals to the public; and
       (5) Assess whether existing and new information 
     requirements are designed to support the Agency's planning, 
     budgeting, and accountability system that will implement 
     GPRA.


                        buildings and facilities

       Amendment No. 59: Appropriates $87,220,000 for buildings 
     and facilities instead of $107,220,000 as proposed by the 
     House and $27,220,000 as proposed by the Senate.
       Amendment No. 60: Inserts language proposed by the House 
     and stricken by the Senate which authorizes construction of a 
     consolidated research facility at Research Triangle Park, 
     North Carolina. Such authorization provides for construction 
     of this new facility through incrementally funded multi-year 
     contracts at a total maximum cost of $232,000,000, permits 
     obligation of funds provided in this Act, and prohibits EPA 
     from obligating monies in excess of those amounts made 
     available in Appropriations Acts.
       The conferees note that of the $87,220,000, $27,220,000 is 
     available for necessary repair and maintenance costs at all 
     EPA facilities, as well as renovation and construction costs 
     for EPA's new headquarters facilities. The remaining 
     $60,000,000, added to the $50,000,000 appropriated in fiscal 
     year 1996, provides nearly one-half of the total construction 
     costs of this important and necessary new research facility.


                     hazardous substance superfund

       Amendment No. 61: Appropriates $1,394,245,000 for hazardous 
     substance superfund as proposed by the Senate instead of 
     $2,201,200,000 as proposed by the House, and inserts language 
     proposed by the Senate which provides that $100,000,000 of 
     the appropriated amount shall not become available until 
     September 1, 1997.
       Included in the appropriated level are the following 
     amounts:
       $906,238,000 for response action/cleanup activities, 
     including $36,754,000, the budget request, for brownfields 
     activities.
       $171,194,000, the budget request, for enforcement 
     activities.
       $124,874,000 for management and support, including 
     $11,000,000 to be transferred to the Office of Inspector 
     General.
       $64,000,000 for the Agency for Toxic Substances and Disease 
     Registry (ATSDR). Within this amount, the conferees direct 
     that up to $4,000,000 be used for minority health 
     professions, no less than the fiscal year 1996 level be made 
     available for continuation of the health effects study on the 
     consumption of Great Lakes fish, and $900,000 be made 
     available for continuation of the cancer cluster study in the 
     Toms River area of New Jersey. The conferees note in this 
     regard that some $300,000 has previously been expended by 
     ATSDR for this study, thus the $900,000 made available in 
     this action will bring to $1,200,000 the amount so far 
     available for this important activity.
       $53,527,000 for the National Institute for Environmental 
     Health Sciences (NIEHS), including $32,527,000 for research 
     activities and $21,000,000 for worker training.
       $30,000,000, the fiscal year 1996 level, for transfer to 
     the Department of Justice.
       $9,412,000, the budget request, for reimbursable activities 
     of other Federal agencies, including the U.S. Coast Guard, 
     NOAA, FEMA, OSHA and the Department of the Interior.
       $35,000,000 to be transferred to the science and technology 
     account for necessary and appropriate research activities. Of 
     this amount, the conferees note that $2,500,000 is available 
     for the Gulf Coast Hazardous Substance Research Center and 
     direct that other such research centers be funded at an 
     appropriate level at least equal to the funding level 
     provided in fiscal year 1996.
       The conferees expect the Agency to quickly act on the 
     direction contained in the House report regarding an ATSDR 
     study in Caldwell County, North Carolina. The conferees also 
     direct that all fiscal year 1996 carryover funds be applied 
     to response action/cleanup activities.
       The conferees note that on June 4, 1996, EPA announced an 
     administrative reform to

[[Page H10752]]

     allow interest to accrue on site-specific special accounts in 
     which Superfund settlement funds dedicated to specific site 
     cleanups are held. Under this new policy, accrued interest 
     would directly benefit the Superfund site and the community 
     where the site is located, and prevent the funds which 
     parties pay in settlement from losing value over time. The 
     conferees applaud the Agency's decision to move forward with 
     this administrative reform which can control remedy costs, 
     promote cost-effectiveness, decrease litigation, increase 
     fairness in the enforcement process, and reduce transaction 
     costs in the Superfund program. The conferees urge the EPA, 
     as well as the Department of Justice, Office of Management 
     and Budget, and the Department of the Treasury, to move 
     forward to implement this administrative improvement as soon 
     as possible.
       Finally, the conferees are concerned about the lack of 
     progress at Pepe Field Superfund Site, Boonton, New Jersey. 
     EPA is directed to finalize the remedial design immediately 
     and to proceed with the construction remedy.
       Amendment No. 62: Provides $1,144,245,000 of the 
     appropriated amount from the superfund trust fund as proposed 
     by the Senate instead of $1,951,200,000 as proposed by the 
     House.
       Amendment No. 63: Provides $64,000,000 of the appropriated 
     amount for the Agency for Toxic Substances and Disease 
     Registry (ATSDR) as proposed by the Senate instead of 
     $59,000,000 for ATSDR as proposed by the House.
       Amendment No. 64: Deletes language proposed by the House 
     and stricken by the Senate which provided that $861,000,000 
     of the appropriated level be available for obligation only 
     upon enactment of future appropriations legislation that 
     specifically makes these funds available for obligation.
       Amendment No. 65: Deletes language proposed by the House 
     and stricken by the Senate which provided that $1,200,000 of 
     the appropriated amount be made available for the ATSDR to 
     conduct a cancer cluster study in the Toms River area of the 
     State of New Jersey. The conferees have provided an 
     additional $900,000 for this study included in the 
     appropriated amount for the ATSDR.
       Amendment No. 66: Appropriates $60,000,000 for the leaking 
     underground storage tank trust fund as proposed by the Senate 
     instead of $66,500,000 as proposed by the House.


                   state and tribal assistance grants

       Amendment No. 67: Appropriates $2,875,207,000 for state and 
     tribal assistance grants instead of $2,768,207,000 as 
     proposed by the House and $2,815,207,000 as proposed by the 
     Senate.
       From within the appropriated level, the conferees agree to 
     the following amounts:
       $625,000,000 for clean water State revolving fund 
     capitalization grants.
       $1,275,000,000 for drinking water State revolving fund 
     capitalization grants.
       $100,000,000 for architectural, engineering, planning, 
     design, construction and related activities in connection 
     with the construction of high priority water and wastewater 
     facilities in the area of the United States-Mexico border.
       $50,000,000 for cost-shared grants to the State of Texas to 
     improve wastewater treatment for colonias.
       $15,000,000 for cost-shared grants to the State of Alaska 
     to address water supply and wastewater infrastructure needs 
     of rural and Alaska Native Villages.
       $136,000,000 for special needs wastewater treatment and 
     groundwater protection infrastructure grants.
       $674,207,000 for state and tribal program/categorical 
     grants. Of this amount, the conferees note that $28,000,000 
     is for multi-media tribal general assistance grants or 
     performance partnership grants, at a Tribe's request. The 
     conferees recognize that this level, which is the budget 
     request, exceeds the authorized ceiling of $15,000,000 
     included in the Indian Environmental General Assistance 
     Programs Act. The conferees also agree that, within the 
     amount provided for wetlands implementation grants, EPA may 
     make funds available to states to assist them with the 
     routine expenses of conducting section 404 regulatory 
     programs that have been assumed by the States.
       Amendment No. 68: Provides $1,900,000,000 of the 
     appropriated amount for capitalization grants for State 
     revolving funds to support water infrastructure financing 
     instead of $1,800,000,000 as proposed by the House and 
     $1,976,000,000 as proposed by the Senate.
       Amendment No. 69: Inserts language proposed by the Senate 
     which permits a specific cost-shared grant to the State of 
     Alaska to be used for water supply infrastructure needs of 
     rural and Alaska Native Villages.
       Amendment No. 70: Provides $136,000,000 of the appropriated 
     amount for making specific wastewater, water and groundwater 
     protection infrastructure grants instead of $129,000,000 as 
     proposed by the House and no funding as proposed by the 
     Senate, and inserts language proposed by the House and 
     stricken by the Senate which makes such funds available in 
     accordance with the terms and conditions set forth in the 
     Conference Report and statement of managers accompanying this 
     Act.
       The conferees direct that such grants be used for the 
     following projects in the following amounts:
       $2,550,000 for continued wastewater needs in Bristol 
     County, Mass.;
       $40,000,000 for continued wastewater needs in Boston, 
     Mass.;
       $8,500,000 for continued wastewater needs in New Orleans, 
     La.;
       $11,000,000 for continued water development needs of the 
     Mojave Water Agency, Calif.;
       $8,500,000 for continued development of the Des Plaines 
     River system TARP activity in Chicago, Ill.;
       $16,000,000 for continuation of the Rouge River National 
     Wet Weather Project;
       $13,600,000 for continuing clean water improvements at 
     Onondaga Lake;
       $5,400,000 for wastewater improvements in the East Cooper 
     Area of Berkeley County, S.C.;
       $2,000,000 for sewer infrastructure improvements in Kodiak, 
     Ak.;
       $8,000,000 for water quality improvements to Tanner Creek 
     in Portland, Ore.;
       $2,850,000 for water treatment facility replacement and 
     improvements for the Agua Sana Water Users Association, N.M.;
       $5,000,000 for wastewater treatment improvements in 
     Middlebury, Vt.;
       $1,750,000 for wastewater treatment improvements in O'Neil, 
     Neb.;
       $5,000,000 for the Taney County, Mo. Common Sewer District 
     for its wastewater improvements project;
       $2,000,000 for the Northeast Ohio Regional Sewer District 
     wet weather pollution abatement program;
       $1,700,000 for nine wastewater improvement projects in 
     Essex County, Mass., including $1,000,000 for the South Essex 
     Sewage District;
       $1,000,000 for water delivery system improvements in the 
     Virgin Valley Water District, Nev.; and
       $1,150,000 for waste water improvement needs in Franklin, 
     Huntington, and Clearfield Counties, Pennsylvania.
       The conferees are in agreement that the Agency should work 
     with the grant recipients on appropriate cost-share 
     agreements and to that end the conferees direct the Agency to 
     develop a standard cost-share consistent with fiscal year 
     1995.
       Amendment No. 71: Inserts language as proposed by the 
     Senate which permits the Administrator of EPA to make grants 
     to States, from funds available for obligation in the State 
     under title II of the Federal Water Pollution Control Act, as 
     amended, for administering the completion and closeout of a 
     State's construction grants program. The conferees agree that 
     this provision is needed in many States due to the 
     appropriation of over $1,800,000,000 since 1991 for 
     wastewater grant projects and in view of the expiration of 
     the section 205(g) reserve for such management activities.
       Amendment No. 72: Provides $1,900,000,000 of the 
     appropriated amount for capitalization grants for State 
     revolving funds to support water infrastructure financing 
     instead of $1,800,000,000 as proposed by the House and 
     $1,976,000,000 as proposed by the Senate.
       Amendment No. 73: Provides $1,275,000,000 for drinking 
     water State revolving funds as proposed by the Senate instead 
     of $450,000,000 as proposed by the House. Public Law 104-134 
     stipulated that drinking after SRF funds totaling 
     $725,000,000--$225,000,000 of which was appropriated in 
     fiscal year 1995 and $500,000,000 of which was appropriated 
     in fiscal year 1996--would revert to the clean water SRF on 
     August 1, 1996 unless authorization for the drinking water 
     SRF was enacted prior to that date. This authorization was 
     unfortunately not completely until shortly after that date, 
     but too late to prevent the movement of funds to the clean 
     water SRF. Noting that the clean water SRF thus received an 
     infusion of $725,000,000 just prior to the beginning of 
     fiscal year 1997, the conferees have agreed to reduce the 
     1997 clean water SRF appropriation by this amount and use the 
     funds to increase the drinking water SRF over the 
     $550,000,000 they have otherwise agreed upon as the 
     appropriate fiscal year 1997 level.
       The conferees note further, however, that because the 
     authorization for the drinking water State revolving fund did 
     not actually occur until just prior to the Senate completing 
     action on the 1997 appropriation legislation, neither 
     Appropriations Committee was able to review fully and make 
     accommodation for all new provisions of this legislation. 
     While the conferees expect that the funds provided for clean 
     water State revolving fund capitalization grants will be 
     distributed by the Agency in a manner similar to such 
     distribution in prior years, the funds provided for drinking 
     water State revolving fund capitalization grants should be 
     distributed to all eligible governmental agencies and should 
     be used solely for such capitalization grants and grants for 
     public water system expenditures.
       Amendment No. 74: Deletes language proposed by the House 
     and stricken by the Senate which stipulated that if 
     legislation authorizing a drinking water State revolving fund 
     is not enacted prior to June 1, 1997, the funds appropriated 
     for a drinking water State revolving fund shall immediately 
     become available for making capitalization grants under title 
     VI of the Federal Water Pollution Control Act, as amended. 
     This provision became moot when such legislation was enacted 
     on August 6, 1996.
       Amendment No. 75: Inserts language proposed by the Senate 
     which provides that the funds made available in Public Law 
     103-327 for a grant to the City of Bangor, Maine shall be 
     available to that city as a grant for meeting combined sewer 
     overflow requirements.
       Amendment No. 76: Inserts language proposed by the Senate 
     which provides that States which have not received funds 
     allotted from the $725,000,000 (that, pursuant to

[[Page H10753]]

     law, became available on August 1, 1996) during fiscal year 
     1996, may still be eligible for reallotment of 1996 funds as 
     long as they receive their allotment of the August 1, 1996 
     funds during fiscal year 1997.


                        administrative provision

       Amendment No. 77: Deletes language proposed by the House 
     and stricken by the Senate which would have permitted the 
     transfer of funds made available to any Environmental 
     Protection Agency account to be transferred to the Science 
     and Technology account for necessary research activities, 
     subject to applicable reprogramming requirements.
       The conferees note that this provision was intended to give 
     the Agency flexibility in providing for new research found 
     necessary and appropriate for a particular EPA program which 
     was not known or specifically provided for when the budget 
     was developed and the appropriations process completed. 
     Because of the time lapse between the beginning and end of 
     each fiscal year's overall process, specific research which 
     was not planned for or given a low priority at the beginning 
     of the budget process may become necessary or of much greater 
     importance near the end of the fiscal year. This provision 
     would have permitted limited transfers among EPA accounts to 
     accommodate the changing research needs of the Agency in this 
     circumstance.
       In lieu of adopting this provision at this time, the 
     conferees direct that the Agency review their potential need 
     for such a provision and advise the Committees on 
     Appropriations on the results of this review prior to 
     Congressional hearings on the fiscal year 1998 budget 
     request.

                   Executive Office of the President


  council on environmental quality and office of environmental quality

       Amendment No. 78: Appropriates $2,436,000 for the Council 
     on Environmental Quality and Office of Environmental Quality 
     as proposed by the Senate instead of $2,250,000 as proposed 
     by the House.

                  Federal Emergency Management Agency

       Amendment No. 79: Appropriates $1,320,000,000 for disaster 
     relief as proposed by the Senate instead of $1,120,000,000 as 
     proposed by the House.
       Amendment No. 80: Deletes language proposed by the Senate 
     and inserts in lieu thereof language which requires the 
     Director of the Federal Emergency Management Agency to submit 
     a comprehensive report regarding disaster relief expenditures 
     and management controls within 120 days of enactment of this 
     Act. Language is also inserted which makes all disaster 
     relief funds appropriated in this Act available for immediate 
     obligation.
       The conferees have provided $1,320,000,000 in disaster 
     relief funds for fiscal year 1997, and have included language 
     making all such funds immediately available for obligation. 
     When the 1997 appropriation is added to the $3,700,000,000 
     appropriated in prior years and still available for 
     obligation, FEMA will have in excess of $5,000,000,000 to 
     respond to both past and anticipated 1996 disaster 
     situations, including the recent Hurricane Fran. The 
     conferees have been assured that this level of available 
     disaster relief funds makes a disaster supplemental 
     appropriation unnecessary at this time.
       The conferees have agreed to a statutory provision 
     requiring FEMA to submit a comprehensive report within 120 
     days of enactment of this Act on its plans to reduce disaster 
     relief expenditures and improve management controls on the 
     disaster relief fund. The Senate amendment prohibiting the 
     expenditure of disaster relief funds for the repair of yacht 
     harbors or golf courses, tree or shrub replacement except in 
     public parks, and recreational facilities, has been deleted 
     without prejudice, in order to give the Agency an opportunity 
     to address the issue of controlling disaster relief 
     expenditures in a comprehensive manner. The conferees are 
     troubled by the findings of a recent Inspector General 
     report, upon which the Senate amendment was based, which 
     found substantial sums have been awarded from the disaster 
     relief fund to restore golf courses, equestrian trails, and 
     the like. While the Stafford Act may not disallow such 
     expenditures, the conferees believe such disbursements may 
     not be appropriate and can no longer be accommodated. There 
     are many other examples of opportunities for reducing 
     disaster relief expenditures and improving management 
     controls on the fund, some of which can be implemented 
     administratively, and some of which require statutory 
     changes.
       The conferees note that the FEMA Director testified before 
     the Senate committee earlier this year that he would submit 
     by October 1, 1996, a proposal for controlling disaster 
     relief expenditures. Because it appears likely that this 
     commitment will not be met, the conferees have included a 
     statutory provision requiring such a submission within 120 
     days of enactment of this Act.
       Last year, FEMA established a disaster resources board to 
     oversee the process of developing and reviewing disaster 
     relief funding requests for activities not associated with a 
     specific disaster. The conferees are concerned that the board 
     has a significant amount of autonomy in deciding whether or 
     not to charge a particular non-disaster specific activity to 
     the fund, and wish to be kept apprised of all activities of 
     the board through reports detailing any decisions made to 
     charge additional non-disaster specific activities to the 
     fund. The first such report should be submitted along with 
     the fiscal year 1998 budget request.
       The conferees are aware of efforts in the State of 
     California to develop a disaster response system to integrate 
     local, regional, state, and federal emergency management 
     organizations through the sharing of interrelated data 
     applications which will aid and accelerate efficient 
     planning, coordination, and response to disaster. FEMA is 
     directed to work with the State in the development of this 
     system and determine the type of assistance, both technical 
     and financial, which would be of greatest help to the State 
     in this effort.
       Finally, the conferees note that urban search and rescue 
     (USAR) is a critical element of effective response to 
     earthquakes and other disasters, and are very supportive of 
     this program. However, the conferees are concerned that not 
     all of the FEMA USAR teams are considered fully operational 
     at this time, and note that the geographical distribution of 
     the teams appears to be inadequate, particularly in the 
     Midwest. In addition, the conferees are aware of concerns 
     that current funding for each of the teams may be 
     insufficient. The conferees therefore direct FEMA to report 
     within 60 days of enactment of this Act on, (1) the 
     appropriate number and geographical distribution of USAR 
     teams, (2) the process for discontinuing support to teams 
     which are not fully operational, and the Agency's plans to 
     discontinue such teams, and (3) funding requirements for a 
     viable program. As a replacement for inadequately funded or 
     not fully operational USAR teams, FEMA is further directed to 
     establish at least one new USAR team, taking into account 
     adequate financial support, operational abilities, and 
     geographical distribution, as quickly as possible but no 
     later than 180 days of enactment of this Act.
       Amendment No. 81: Appropriates $167,500,000 for salaries 
     and expenses instead of $168,000,000 as proposed by the House 
     and $166,733,000 as proposed by the Senate.
       Amendment No. 82: Appropriates $4,673,000 for the Office of 
     Inspector General as proposed by the Senate instead of 
     $4,533,000 as proposed by the House.
       Amendment No. 83: Appropriates $206,701,000 for emergency 
     management planning and assistance instead of $209,101,000 as 
     proposed by the House and $199,101,000 as proposed by the 
     Senate.
       The conferees are in agreement with the following changes 
     to the budget request:
       +$500,000 for a comprehensive analysis and plan of all 
     evacuation alternatives for the New Orleans metropolitan 
     area.
       +$3,400,000 for costs associated with the replacement and 
     upgrade of emergency response vehicles and equipment. The 
     conferees agree that much of FEMA's equipment is obsolete and 
     in need of repair or replacement, and understand that there 
     will be a significant long-term cost associated with the 
     upgrade of such equipment. This additional $3,400,000 
     appropriation, for example, will only provide adequate 
     resources to replace UHF/VHF radios and ancillary equipment. 
     In light of the great needs to upgrade equipment and thus 
     provide better response support to disaster events, the 
     Agency is directed to provide a comprehensive list on a 
     priority basis of all needs in this regard, including the 
     purchase of necessary vehicles and equipment of MERS and 
     MATTS, as well as new systems such as the MIDAS system. The 
     first such list should be submitted along with the fiscal 
     year 1998 budget request and should then be updated 
     throughout each year on an as-needed basis.
       +$1,700,000 to complete the Earthquake Hazard Mitigation 
     Program with the City of Portland, Oregon and the Oregon 
     Department of Geology and Mineral Industries (DOGAMI).
       The conferees agree to up to $2,000,000 for FEMA's 
     participation in appropriate pre-disaster mitigation efforts. 
     The conferees agree with FEMA's Director that mitigation 
     activities can ultimately save significant sums from past-
     disaster clean-up and response actions and that the Agency 
     should be taking an increasingly active role in developing 
     and participating in pre-disaster mitigation programs. Such 
     programs range in scope from the development and/or funding 
     of mitigation plans for communities to participation with 
     industries, insurers, building code officials, government 
     agencies, engineers, researchers and others in developing 
     systems and facilities to test structures in disaster-like 
     circumstances. The conferees understand that these activities 
     will require an infusion of considerable up-front financial 
     support as well as the possible movement over time of 
     disaster relief funds to pre-disaster programs, and the 
     Agency is expected to use up to the $2,000,000 provided 
     herein in an appropriate manner to begin the process of 
     movement toward a meaningful pre-disaster mitigation program. 
     Expenditure of these funds may not, however, be made until 
     submission to the Committees on Appropriations of an 
     appropriate pre-disaster mitigation spending plan.
       The conferees note the Administration's September 12, 1996 
     submission of a budget amendment for counter-terrorism 
     activities for several agencies, including FEMA, totaling 
     $1,097,000,000. The conferees strongly support counter-
     terrorism activities, such as grants to state and local 
     emergency responders for specialized training and equipment, 
     consequence management planning and coordination, and field 
     training and exercises. The conferees direct FEMA to propose 
     appropriate funding levels for necessary counter-terrorism 
     activities in its operating plan.
       Amendment No. 84: Inserts language proposed by the Senate, 
     with a technical

[[Page H10754]]

     change, which permits FEMA to spend such sums as are 
     necessary during fiscal year 1997 to conduct natural disaster 
     studies consistent with law. The technical change refers to 
     the citation of law, 42 U.S.C. 4127(c), in lieu of the 
     citation referred to in the Senate amendment.
       Amendment No. 85: Inserts language proposed by the Senate 
     which extends the authorization for the National Flood 
     Insurance Fund program for one year until September 30, 1997.

                    General Services Administration


                    consumer information center fund

       Amendments Nos. 86 and 87: Deletes House language providing 
     for a limitation of $2,602,000 on administrative expenses and 
     inserts Senate language modifying the House provision 
     establishing a gift fund for the purpose of defraying costs 
     of operations of the Consumer Information Center.
       The conferees agree that the Consumer Information Center is 
     to take over responsibility for production and distribution 
     of the Consumer Resource Handbook in addition to other duties 
     it currently performs. The conferees further agree to include 
     bill language which authorizes the Consumer Information 
     Center to accept private sector donations to defray the costs 
     of printing, publishing, and distributing consumer 
     information and educational material, and undertaking 
     consumer information activities.

             National Aeronautics and Space Administration


                           human space flight

       The conferees fully support deployment of the space station 
     but recognize the funds appropriated by this Act for the 
     development of the space station may not be adequate to cover 
     all potential contractual commitments should the program be 
     terminated for the convenience of the Government. 
     Accordingly, if the space station is terminated for the 
     convenience of the Government, additional appropriated funds 
     may be necessary to cover such contractual commitments. In 
     the event of such termination, it would be the intent of the 
     conferees to provide such additional appropriations as may be 
     necessary to provide fully for termination payments in a 
     manner which avoids impacting the conduct of other ongoing 
     NASA programs.


                  science, aeronautics and technology

       Amendment No. 88: Appropriates $5,762,100,000 for Science, 
     Aeronautics and Technology, as proposed by the Senate, 
     instead of $5,662,100,000 as proposed by the House.
       The conference agreement reflects the following changes 
     from the budget request:
       a general reduction of $95,000,000;
       GLOBE is reduced by $5,000,000;
       an increase of $4,000,000 for cardiac imaging;
       an increase of $4,000,000 for the space radiation program;
       an increase of $2,000,000 for high speed civil transport 
     research;
       an increase of $5,000,000 for the WindSat program;
       an increase of $12,000,000 for radar satellite;
       an increase of $10,000,000 for museum programs;
       an increase of $12,000,000 for advanced space 
     transportation;
       an increase of $10,000,000 for the TIMED program; and
       an increase of $10,000,000 for education programs.
       The conferees have agreed to provide $12,000,000 for a new 
     start for the Light SAR program. The conferees understand 
     that this amount of funding is in conformance with NASA's 
     expected execution of this program for fiscal year 1997 and 
     that additional funding will be included in the fiscal year 
     1998 budget submission.
       With the exception of the $5,000,000 reduction to GLOBE, 
     the conferees are directing no specific reduction to Mission 
     to Planet Earth programs.
       The conferees agree to provide an additional $10,000,000 
     for education programs. Included in the increase is $300,000 
     for upgrades to the Mobile Aeronautics Education Laboratory, 
     $250,000 is provided for a feasibility study to create a 
     national residential high school at Lewis Research Center, 
     $250,000 is provided to begin replication of the Science, 
     Engineering, Mathematics, and Aeronautics Academy program, 
     and $300,000 is for the Classroom of the Future's Astronomy 
     Village Program to increase the learning effectiveness of the 
     Classroom by assessing and improving student scientific 
     inquiry abilities.
       The conferees designated $10,000,000 for museum programs. 
     It is the intent of the conferees that $8,000,000 is to be 
     used for the purposes outlined on page 82 of House Report 
     104-628. An additional $2,000,000 is provided for initial 
     development of a national prototype space education 
     curriculum. This curriculum shall be designated to heighten 
     student interest and involvement in science, technology and 
     space programs by utilizing the education and technology base 
     of NASA and the nation's science museum and planetarium 
     network. The conferees expect NASA to provide approximately 
     $1,000,000 of these funds to the Bishop Museum, Honolulu, 
     Hawaii for development of the curriculum, with the remainder 
     to be spent on replication and distribution of the curriculum 
     to educational institutions nationwide.


                            MISSION SUPPORT

       The conferees direct the NASA Administrator to submit a 
     multi-year workforce restructuring plan on how NASA will 
     achieve its stated fiscal year 2000 full-time equivalent 
     (FTE) goal with the agency's fiscal year 1998 budget and 
     updated annually with budget submissions through fiscal year 
     2000. This plan shall: 1) outline a timetable for 
     restructuring the workforce at NASA Headquarters and field 
     Centers; 2) incorporate annual FTE targets by broad 
     occupational categories and address how these targets reflect 
     the respective missions of Headquarters and the field 
     Centers; 3) describe personnel initiatives, such as 
     relocation assistance, early retirement incentives, and 
     career transition assistance which NASA will use to achieve 
     personnel reductions. The plan shall minimize social and 
     economic impacts, using ``reductions in force'' to the 
     minimum extent practicable. Consistent with applicable law 
     and regulation, NASA shall provide advance notice of 
     separations to employees and local entities and appropriate 
     assistance to affected employees.
       The conferees are concerned about NASA's plans to delay the 
     Consolidated Space Operations Contract. In particular, the 
     conferees note the potential increased costs associated with 
     this delay. Given these potential costs, the conferees ask 
     NASA to provide, within 90 days, the rationale behind the 
     decision to delay and to outline its plans for the 
     Consolidated Space Operations Contract.
       The conferees direct NASA to implement a Wallops 2000 plan 
     for NASA activities at Wallops Island which maintains 
     sufficient agency investment to ensure stabilization, as well 
     as full utilization, of the Wallops workforce.


                       ADMINISTRATIVE PROVISIONS

       Amendment No. 89: Replaces Senate administrative provision 
     providing for payments of up to $25,000 to employees who 
     volunteer for separation from NASA with a new provision which 
     gives the NASA Administrator authority to transfer up to 
     $177,000,000 among accounts.
       The conferees have deleted the administrative provision 
     which will allow for payments of up to $25,000 to employees 
     who volunteer for separation from NASA. Instead the conferees 
     have included a general provision (Section 439) which will 
     allow for payments of up to $25,000 to employees who 
     volunteer for separation, provides for repayment to the 
     government of the separation incentive if the employee 
     accepts reemployment with the Government or receives an 
     annuity for disability, requires an additional agency 
     contribution to the Civil Service Retirement and Disability 
     Fund, reduces full-time equivalent employment levels, and 
     requires NASA to report to the Office of Personnel Management 
     by March 31 of each fiscal year on the execution of this 
     provision.
       In place of the separation incentive administrative 
     provision, the conferees have also included an administrative 
     provision providing transfer authority to NASA. It is the 
     intent of the conferees that this authority will be used to 
     transfer funds between the Science, Aeronautics and 
     Technology account and the Human Space Flight account to the 
     extent required for development/construction to maintain the 
     schedule of the space station program. To ensure that there 
     is no adverse effect on any NASA program, the conferees 
     provide general transfer authority of up toe $177,000,000 to 
     be used at the discretion of the Administrator and subject to 
     the case-by-case approval by the House and Senate 
     Appropriations Committees. The conferees note that this 
     authority is required because the current split between 
     development/construction funding and science funding is not 
     properly phased.

                      National Science Foundation


                    research and related activities

       Amendment No. 90: Appropriates $2,432,000,000 for Research 
     and Related Activities, as proposed by the Senate instead of 
     $2,431,110,000 as proposed by the House.
       The conferees agree that the reduction from the budget 
     request, $40,000,000, is to be allocated by the National 
     Science Foundation in accordance with its internal procedures 
     for resource allocation, subject to approval by the House and 
     Senate Committees on Appropriations.
       Of the increase provided for Research and Related 
     Activities above the fiscal year 1996 level, the conferees 
     direct the National Science Foundation to make available up 
     to $1,400,000 to pay any tariff duties assessed on the Gemini 
     project, consistent with Senate language under the Major 
     Research Equipment account. In providing these funds, the 
     conferees direct the Foundation to place them in reserve 
     prior to all directorate allocations made in conjunction with 
     their fiscal year 1997 operating plan.
       The conferees note that government policy in the area of 
     duties and/or tariffs on scientific instruments is under 
     review with regard to this program and encourage the U.S. 
     Customs Service to act in a responsive manner by recognizing 
     that any assessed duties on this program will be paid by an 
     arm of the U.S. government, in this case the National Science 
     Foundation, and will do nothing to increase the net financial 
     position of the United States Government.
       The conferees are in receipt of a report by the National 
     Science Foundation, requested by the House and Senate 
     Committees on Appropriations, which addresses the possible 
     addition of a new Navy-owned, university-operated Class 1 
     Oceanographic Research Vessel to the academic fleet. The 
     report concludes that there is not current need to replace 
     any of the four large general purpose

[[Page H10755]]

     oceanographic ships currently in the academic fleet because 
     all of these ships have 10 to 30 years of service life 
     remaining. While the conferees on the Department of Defense 
     Appropriations Bill for fiscal year 1997 have agreed to 
     provide funding for construction of a new large vessel, such 
     a vessel is not needed at this time and the cost of operating 
     the ship will most likely exacerbate an already constrained 
     budget. Therefore, the conferees direct the Office of Naval 
     Research to work with the University-National Oceanographic 
     Laboratory System through its normal review process to ensure 
     that the vessel will fit the needs of the oceanographic 
     community and takes into consideration the overall balance 
     between research funding and ship operations funding.


                        major research equipment

       The conferees do not agree with the Senate direction to use 
     $1,400,000 of funding in the Major Research Equipment account 
     to pay U.S. Customs duties assessed on the Gemini Telescope 
     project. The conferees have addressed this issue elsewhere in 
     the report.


                     education and human resources

       Amendment No. 91: Appropriates $619,000,000 for Education 
     and Human Resources, instead of $612,000,000 as proposed by 
     the House and $624,000,000 as proposed by the Senate.
       The conference agreement includes the following reductions:
       (1) $2,000,000 from grants for graduate fellowships;
       (2) $5,000,000 from grants for undergraduate curriculum 
     development;
       (3) $2,500,000 from K-12 curriculum and assessment 
     development; and
       (4) $3,000,000 from research, evaluation and communication.

     The conferees agree that these reductions are provided as 
     guidance to the National Science Foundation; these funding 
     levels are subject to established reprogramming procedures, 
     subject to the approval of both the House and Senate 
     Appropriations Committees.
       Funding for Informal Science is increased by $10,000,000 
     which will result in a total of $36,000,000 for this vitally 
     important program. The conferees expect that these additional 
     funds will be used to support and strengthen systemic reform 
     efforts funded elsewhere in this account. In addition, the 
     conferees request that the National Science Foundation report 
     back to the Committees on Appropriations of the House and 
     Senate on its plans for implementing this direction. Funding 
     for EPSCoR is increased by $2,500,000 for a total of 
     $38,410,000. The increase for EPSCoR is to be used for 
     advanced computing, networking and joint projects.


                         salaries and expenses

       Amendment No. 92: Appropriates $134,310,000 for salaries 
     and expenses as proposed by the Senate instead of 
     $125,200,000 as proposed by the House.

                 Neighborhood Reinvestment Corporation


          payment to the neighborhood reinvestment corporation

       Amendment No. 93: Appropriates $49,900,000 for payment to 
     the neighborhood reinvestment corporation as proposed by the 
     Senate instead of $50,000,000 as proposed by the House.

                      TITLE IV--GENERAL PROVISIONS

       Amendment No. 94: Inserts language proposed by the Senate 
     modifying the travel expense limitation in section 401 to 
     accommodate the change to budget estimates, including object 
     classifications, which have been rounded to the nearest 
     million dollars.
       Amendment No. 95: Inserts language proposed by the Senate 
     authorizing benefits for offspring of Vietnam veterans with 
     spina bifida, and to offset the cost of such benefits by 
     requiring that there be an element of fault as a precondition 
     for entitlement to compensation for a disability or death 
     resulting from health care or certain other services 
     furnished by VA, amended to delay the effective date until 
     October 1, 1997, unless legislation is enacted to provide for 
     an earlier effective date. This delay will provide the 
     committees of jurisdiction an opportunity to address this 
     matter.
       Amendment No. 96: Deletes language proposed by the House 
     and stricken by the Senate prohibiting the payment of 
     salaries of personnel who approve acquisition of 
     supercomputing equipment when the Department of Commerce has 
     determined that the equipment is being offered at other than 
     fair value.
       The National Center for Atmospheric Research (NCAR), which 
     is operated largely with support from the National Science 
     Foundation, has been conducting a competition for the 
     acquisition of a new supercomputer. NCAR, in its bid process, 
     selected a computer offered by a Japanese company. On August 
     20, 1996, the Department of Commerce announced that it was 
     initiating an investigation to determine whether Japanese 
     vector supercomputers were being dumped in the United States. 
     Included in this investigation was a bid submitted in the 
     NCAR procurement. On that same date, the National Science 
     Foundation requested that the NCAR procurement be held in 
     abeyance.
       On September 11, 1996, the U.S. International Trade 
     Commission determined in a preliminary investigation that 
     there is a reasonable indication that a U.S. industry is 
     threatened with material injury by reason of imports of 
     vector supercomputers that are allegedly sold at less than 
     fair value. As a result of this determination, the Department 
     of Commerce will continue to conduct its antidumping 
     investigation on imports of such equipment, with a 
     preliminary determination expected by January 6, 1997, and a 
     final determination by March 1997.
       Amendment No. 97: Deletes language proposed by the House 
     and stricken by the Senate prohibiting NASA from providing 
     funds for the National Center for Science Literacy, Education 
     and Technology at the American Museum of Natural History.
       Amendment Nos. 98-100: Deletes language proposed by the 
     House and stricken by the Senate prohibiting the use of funds 
     made available by this Act for any institution of higher 
     education which excludes Reserve Officer Training Corps or 
     military recruiting from its campus or any entity that fails 
     to comply with reporting requirements of law concerning the 
     employment of certain veterans.
       Amendment No. 101: Deletes language proposed by the House 
     and stricken by the Senate increasing VA's medical care 
     appropriation by $40,000,000 and general operating expenses 
     appropriation by $17,000,000, offset by an across-the-board 
     reduction of 0.4 percent. The conferees note that 
     scorekeeping credit was not given for the offset.
       Amendment No. 102: Deletes language proposed by the House 
     and stricken by the Senate increasing VA's medical care 
     appropriation by $20,000,000 and medical and prosthetic 
     research appropriation by $20,000,000, offset by eliminating 
     all funds for the Corporation for National and Community 
     Service; and inserts language increasing the medical care 
     appropriation carried in title I by $5,000,000. This amount, 
     together with the funds carried in title I under the medical 
     care heading, will provide $17,013,447,000 for medical care, 
     an increase of $5,000,000 above the Administration's budget 
     request.
       Amendment No. 103: Deletes language proposed by the House 
     and stricken by the Senate prohibiting the Environmental 
     Protection Agency from using its funds to allow the 
     importation of PCB waste to be incinerated in the United 
     States.
       Amendment No. 104: Deletes language proposed by the House 
     and stricken by the Senate prohibiting the Environmental 
     Protection Agency from using hazardous substance superfund 
     funding to implement any retroactive liability discount 
     reimbursement.
       Amendment No. 105: Deletes language proposed by the House 
     and stricken by the Senate simplifying downpayment methods on 
     FHA-insured loans, and inserts language proposed by the 
     Senate regarding the calculation of a downpayment on an FHA 
     mortgage originated in Alaska or Hawaii and delegating single 
     family mortgage insuring authority to direct endorsement 
     mortgagees, amended to limit the applicability of the 
     downpayment provisions to fiscal year 1997.
       Amendment No. 106: Deletes language proposed by the House 
     and stricken by the Senate prohibiting the National 
     Aeronautics and Space Administration from continued 
     participation in a joint Russia-France-United States 
     cooperative life sciences experiment program known as Bion 11 
     and Bion 12.
       Amendment No. 107: Deletes language proposed by Senate 
     regarding compliance by the Environmental Protection Agency 
     with international obligations under the World Trade 
     organization. The House bill contained no similar provision.
       The conferees have deleted, without prejudice, language 
     expressing the sense of the Senate that EPA should provide a 
     full and open administrative process in the formulation of 
     any final rule regarding the importation of reformulated and 
     conventional gasoline. The conferees note that, in response 
     to a dispute settlement finding against the United States by 
     the World Trade organization, the United States informed the 
     WTO on June 19, 1996 that the U.S. intends to meet its 
     international obligations with respect to the EPA 
     requirements on imported reformulated and conventional 
     gasoline. The conferees recognize that EPA has initiated an 
     open process to examine any and all options for compliance 
     with international obligations of the United States in which 
     a key criterion will be fully protecting public health and 
     the environment, and fully support such an open process and 
     the involvement of interested environmental and industrial 
     organizations.
       However, the conferees expect that this process will not 
     result in the reinstatement of the rule title ``Regulations 
     of Fuels and Fuel Additives: Individual Foreign Refinery 
     Baseline Requirements for Reformulated Gasoline'' proposed on 
     May 3, 1994 (59 Fed. Reg. 84), or one similar to it. Further, 
     the conferees direct the Administrator of the Environmental 
     Protection Agency, in evaluating any option for compliance 
     with international obligations, to: (1) take fully into 
     account the protection of public health and the environment 
     and the international obligations of the United States as a 
     member of the World Trade Organization; (2) ensure that the 
     compliance review process does not result in the degradation 
     of gasoline quality required by the Clean Air Act with 
     respect to conventional and reformulated gasoline; (3) not 
     recognize individual foreign refiner baselines unless the 
     Administrator determines that the issues of auditing, 
     inspection of foreign facilities, and enforcement have been 
     adequately addressed; and (4) provide a full and open 
     administrative process in the formulation of any final rule.
       Amendment No. 108: Inserts language proposed by the Senate 
     permitting fiscal year 1997 and prior year funds provided 
     under section 320(g) of the Federal Water Pollution Control 
     Act, as amended, to be used for implementation (rather than 
     just development)

[[Page H10756]]

     of conservation and management plans made pursuant to this 
     section.
       Amendment No. 109: Inserts language proposed by the Senate 
     requiring a plan for the allocation of VA health care 
     resources so veterans have similar access to such care 
     regardless of where they live.
       The conferees recognize that precipitous changes in 
     allocations amongst VA's facilities could be very difficult 
     for individual facilities to manage. While the conferees 
     support VA's efforts to amend its resource allocation 
     methodology based on a capitation model--which is intended to 
     bring about a more equitable distribution of resources--they 
     expect the Department to ensure that fiscal year 1997 serve 
     as a ``bridge'' in moving to the new system so as to provide 
     an adjustment period for facilities to adapt to the new 
     model. The conferees further expect that no veteran currently 
     receiving care by the VA will be denied VA health care 
     services as a result of the new allocation methodology. The 
     VA is to prepare a report by January 31, 1997, on its 
     progress in adjusting to and impacts of the new methodology, 
     and be prepared to discuss this matter during the fiscal year 
     1998 budget hearings.
       Amendment No. 110: Inserts language proposed by the Senate 
     requiring a General Accounting Office audit on staffing and 
     contracting of the Office of Federal Housing Enterprise 
     Oversight.
       Amendment No. 111: Amends language proposed by the Senate 
     prohibiting the consolidation of NASA aircraft based east of 
     the Mississippi River to the Dryden Flight Research Center.
       Amendment No. 112: Deletes language proposed by the Senate 
     revising the name of the Japan-United States Friendship 
     Commission.
       Amendment No. 113: Inserts new language on separation 
     incentive payments for NASA personnel which had been included 
     in the Senate bill as an administrative provision and 
     modifies the language to restrict its applicability. Modifies 
     language proposed by the Senate authorizing the conveyance of 
     certain real property under the jurisdiction of NASA to the 
     City of Downey, California, amended to assign certain 
     responsibilities to the Administrator of the General Services 
     Administration.
       The conferees intend that the concurrence of the 
     Administrator of the General Services Administration in the 
     conveyance by NASA of Parcels III through VI of the NASA 
     Industrial Plant, Downey, California to the City of Downey 
     shall be based upon completion of a disposal screening for 
     possible utilization of the subject parcels by other Federal 
     agencies initiated by GSA on September 10, 1996. Furthermore, 
     it is the intent of the conferees that nothing in this 
     amendment shall prevent the City of Downey from entering into 
     ground leases for periods in excess of 20 years in order to 
     secure construction financing without triggering the 
     reconveyance provision.

                         TITLE V--SUPPLEMENTALS

       Amendment No. 114: Inserts new heading as proposed by the 
     Senate.

                     Department of Veterans Affairs


                    veterans benefits administration

       Amendment No. 115: Inserts language appropriating a 
     supplemental amount of $100,000,000 for compensation and 
     pensions as proposed by the Senate.

              Department of Housing and Urban Development


                government national mortgage association

       Amendment No. 116: Inserts language providing additional 
     1996 commitment authority of $20,000,000,000 in the 
     guarantees of mortgage-backed securities loan guarantee 
     program account as proposed by the Senate.

     TITLE VI--NEWBORNS' AND MOTHERS' HEALTH PROTECTION ACT OF 1996

       Amendment No. 117: The conference agreement includes the 
     Senate amendment with modifications, including the deletion 
     of offsets. It incorporates the requirements of the provision 
     and the authority to enforce the requirements into the new 
     part 7 of subtitle B of ERISA and the new title XXVII of the 
     Public Health Service Act as established by P.L. 104-191. It 
     does not include the exception to the requirement for the 48-
     hour or 96-hour minimum stay in the case that the plan 
     provides for post-delivery follow-up care. It adds a 
     prohibition that a health plan cannot restrict benefits for 
     any portion of the required minimum 48-hour or 96-hour stay 
     in a manner which is less favorable than the benefits 
     providing for any preceding portion of such stay. In 
     addition, the conference agreement provides that nothing in 
     this provision is intended to be construed as preventing a 
     group health plan or issuer from imposing coinsurance, 
     deductibles, or other cost-sharing in relation to benefits 
     for hospital lengths of stay in connection with childbirth 
     for a mother or newborn child under the plan (or under health 
     insurance coverage offered in connection with a group health 
     plan), except that such coinsurance or other cost-sharing for 
     any portion of a period within a hospital length of stay 
     required under subsection (a) may not be greater than such 
     coinsurance or cost-sharing for any preceding portion of such 
     stay. It is the intent of the conferees that cost-sharing not 
     be used in a manner that circumvents the objectives of this 
     title. It provides for a modification to the notice 
     requirements by conforming them to the summary of material 
     modifications under ERISA. In general, it conforms the 
     provision relating to preemption to State laws to the Health 
     Insurance Portability and Accountability Act of 1996. 
     Notwithstanding section 731(a)(1) of ERISA and sections 
     2723(a)(1) and 2762 of the Public Health Service Act, the new 
     provisions shall not preempt a State law that requires health 
     insurance coverage to include coverage for maternity and 
     pediatric care in accordance with guidelines established by 
     the American College of Obstetricians and Gynecologists, the 
     American Academy of Pediatrics, or other established 
     professional medical associations. In addition, those 
     sections shall not be construed as superseding a State law 
     that leaves decisions regarding the appropriate hospital 
     length of stay in connection with childbirth entirely to the 
     attending provider in consultation with the mother. In 
     addition, it is the intent of the conferees that, consistent 
     with section 704 (redesignated as section 731) of ERISA and 
     section 2723 of the Public Health Service Act, the 
     application of the preemption provision should permit the 
     operation of any State law or provision which requires more 
     favorable treatment of maternity coverage under health 
     insurance coverage than that required under this title.
       It is the intent of the conferees that health plans have 
     sufficient flexibility to encourage or specify that attending 
     providers follow nationally recognized guidelines for 
     maternal and perinatal care in determining when early 
     discharge is medically appropriate.
       Throughout the title, the conferees have used the term 
     ``hospital length of stay'' to indicate that a requirement 
     for coverage of a 48-hour stay following vaginal delivery and 
     a 96-hour length of stay following a cesarean section 
     delivery is triggered by any delivery in connection with 
     hospital care, regardless of whether the delivery is in a 
     hospital inpatient or outpatient setting.
       It is the intent of the conferees that a detailed series of 
     conforming changes shall be made as soon as possible to the 
     Internal Revenue Code, specifically subtitle K of the 
     Internal Revenue Code of 1986 (as added by section 401(a) of 
     the Health Insurance Portability Accountability Act of 1996), 
     in order to fully implement these provisions as part of 
     chapter 100 of the Code.

   TITLE VII--PARITY IN THE APPLICATION OF CERTAIN LIMITS TO HEALTH 
                                BENEFITS

       Amendment No. 118. The conference agreement includes the 
     Senate amendment with modifications. It incorporates the 
     requirement into the new part 7 of subtitle B of title I of 
     ERISA and the new title XXVII of the Public Health Service 
     Act as established by Public Law 104-191. The construction 
     clause has been modified to state that nothing in this 
     section shall be construed as--
       (1) requiring a group health plan (or health insurance 
     coverage offered in connection with such a plan) to provide 
     any mental health benefits; or
       (2) in the case of such a plan or coverage that provides 
     such mental health benefits, as affecting the terms and 
     conditions (including cost sharing, the limits on numbers of 
     visits or days of coverage, and requirements relating to 
     medical necessity) relating to the amount, duration, or scope 
     of mental health benefits under the plan or coverage, except 
     as specifically provided in regard to parity in the 
     imposition of aggregate lifetime limits and annual limits for 
     mental health benefits.

     This language affirms the intent of conferees that group 
     health plans and issuers retain the flexibility, consistent 
     with the requirements of the Act, to define the scope of 
     benefits, establish cost-sharing requirements, and to impose 
     limits on hospital days and out-patient visits. Parity of 
     mental health services with medical and surgical services 
     defined under a group health plan is limited solely to any 
     aggregate dollar life-time limit and any annual dollar limit 
     under such a plan. The conference agreement clarifies that 
     the requirements apply to each group health plan, and, in the 
     case of a group health plan that offers two or more benefit 
     packages, the parity requirements shall be applied separately 
     with respect to each such option. In addition, the conference 
     agreement applies an exemption to small employers as defined 
     in the Health Insurance Portability and Accountability Act; 
     adds certain definitions; and applies the requirements of the 
     provision to group health plan years beginning on or after 
     January 1, 1998. The agreement does not include the Senate 
     language relating to effective dates for the Federal Employee 
     Health Benefit Plan.
       It is the intent of the conferees that a detailed series of 
     conforming changes shall be made as soon as possible to the 
     Internal Revenue Code, specifically subtitle K of the 
     Internal Revenue Code of 1986 (as added by section 401(a) of 
     the Health Insurance Portability and Accountability Act of 
     1996), in order to fully implement these provisions as part 
     of chapter 100 of the Code.
       The conferees intend that a limit be considered to apply to 
     ``substantially all medical and surgical benefits'' if it 
     applies to at least two-thirds of all the medical and 
     surgical benefits covered under the group health plan's 
     benefit package.
       It is the intent of the conferees that, consistent with 
     section 704 (redesignated as section 731) of ERISA and 
     section 2723 of the Public Health Service Act, the 
     application of the preemption provision should permit the 
     operation of any State law or provision which requires more 
     favorable treatment of mental health benefits under health 
     insurance coverage than that required under this section.

[[Page H10757]]

                   Conference Total--With Comparisons

       The total new budget (obligational) authority for the 
     fiscal year 1997 recommended by the Committee of Conference, 
     with comparisons to the fiscal year 1996 amount, the 1997 
     budget estimates, and the House and Senate bills for 1997 
     follow:

New budget (obligational) authority, fiscal year 1996...$82,442,966,000
Budget estimates of new (obligational) authority, fiscal 87,820,371,000
House bill, fiscal year 1997.............................83,995,260,000
Senate bill, fiscal year 1997............................84,810,153,000
Conference agreement, fiscal year 1997...................84,800,283,000
Conference agreement compared with:
  New budget (obligational) authority, fiscal year 1996..+2,357,317,000
  Budget estimates of new (obligational) authority, fisca-3,020,088,000
  House bill, fiscal year 1997.............................+805,023,000
  Senate bill, fiscal year 1997..............................-9,870,000

     Jerry Lewis,
     Barbara F. Vucanovich,
     James T. Walsh,
     David L. Hobson,
     Joe Knollenberg,
     Rodney P. Frelinghuysen,
     Bob Livingston,
     Louis Stokes,
     Alan B. Mollohan,
     Jim Chapman,
     Marcy Kaptur,
     David R. Obey,
                                Managers on the Part of the House.

     Christopher S. Bond,
     Conrad Burns,
     Ted Stevens,
     Richard C. Shelby,
     Robert F. Bennett,
     Ben Nighthorse Campbell,
     Mark O. Hatfield,
     Barbara A. Mikulski,
     Patrick J. Leahy,
     J. Bennett Johnston,
     Frank R. Lautenberg,
     J. Robert Kerrey,
     Robert C. Byrd,
     Managers on the Part of the Senate.

                          ____________________